KENDRIYA VIDYALAYA SANGATHAN, CHENNAI REGION
FIRST PRE-BOARD EXAMINATION, 2024-25
BUSINESS STUDIES (054)
CLASS XII (2024-25)
ANSWER KEY
1 A. Organisational Objectives 1
2 B. Political Environment 1
3 A. Setting performance standards 1
4 A. Technological 1
5 B. Management as an Art 1
6 A. Both Assertion (A) and Reason (R) are true and Reason (R) is the 1
correct explanation of Assertion (A)
7 D. Tax evasion control measure 1
8 B. Trading on equity 1
9 C. Centralisation to delegation 1
10 [Link] the Statements I and II are correct 1
11 D. 1-I, 2-iii, 3-ii 1
12 [Link] 1 is false and statement 2 is true, 1
13 [Link] Selling. 1
14 D. Organising 1
15 [Link] Market 1
16 C. Packaging, 1
17 [Link] Number 1
18 [Link] Concept 1
19 D.(ii);(iii);(iv);(i) 1
20 [Link] is higher than the cost of debt, 1
21 (a) (i) Motivating employees (ii) Creating Cooperation. 3
(b) Middle Level Management
22 In this case, company needs to recruit unskilled workers to meet the 3
seasonal/temporary increase in demand of the company’s products. Here,
‘Labour Contractors’ will be the most suitable method of recruitment
because of following reasons:
(i) Labour contractors maintain close contacts with labourers; and
(ii) They can provide the required number of unskilled workers at
short notice.
(OR)
Next two steps of staffing process:
(i) Placement and Orientation: Placement means to join the post for
which he/she has been selected. Under orientation, the employee
is given a brief presentation about the company and is introduced
to his superiors, subordinates and colleagues.
(ii) Training and development: At this step of process of staffing,
training and development are imparted to the employees to his
superiors, subordinates and colleagues.
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23 Importance of ‘Controlling’ function of management are:- 3
(a) Accomplishing Organisational Goals:
Controlling measures the performance to ensure that each
activity of the organisation is directed towards achievement of
predetermined goals.
(b) Judging Accuracy of Standards.
Controlling helps to REVIEW and Revise the standards in the
light of the changes taking place in the organisation and in the
environment and thus, judge their accuracy.
(c ) making Efficient use of Resources;
Controlling by reducing wastage and spoilage of resources
makes their efficient and effective use possible.
(OR)
(a) Critical Point Control
It suggest that control should focus on key result areas (KRAs)
which are critical to the success of an organisation as it is neither
economical nor easy to keep a check on each and every activity
in an organisation.
If anything goes wrong at the critical points, the entire
organisation suffers.
(b) Management by Exception:
It is an important principle of management control based on the
belief that an attempt to control everything results in controlling
nothing.
Thus, only significant deviations which go beyond the
permissible limit should be brought to the notice of management.
24 Objectives of SEBI 3
a. To regulate stock exchanges and the securities industry to
promote their orderly functioning
b. To protect the rights and interests of investors
c. To prevent trading malpractices
d. To regulate the activities of intermediates like brokers,
merchant bankers etc.,
(Any three)
(OR)
Functions of stock exchange
a. Providing liquidity and marketability to existing securities
b. Pricing of securities
c. Safety of transactions
d. contributes to economic growth
e. Spreading of equity cult.
f. Providing scope for speculation (Any three)
25 Training – training is the act of increasing the knowledge and technical skills 1+3
of an employee for doing a particular job efficiently.
Benefits of training to Organisation_
(i) Systematic learning (ii) Enhances employee’s productivity
(ii) Prepares future managers (iv) Growth and development of
organisation
(v) Effective response in changing environment (vi) Reduces
supervision
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26 (a) Motivation (b) Supervision (c) Communications (d) Leadership 1x4
27 a) Informal communication
b) Fills gaps in formal communication ; free flow of communication ;
building rapport
OR
a) Psychological barrier
b) Lack of attention ; distrust ; loss of transmission and poor retention 1+3
(explain)
28 Working capital refers to investment in current assets. The business meets
working capital to carry on its day to day operations. It is also known as
circulating capital.
Factors affecting (explain the points) :
a) Nature of business
b) Scale of operation 1+3
c) Business cycle
d) Seasonal factors
29 a) Option A is better; because in this option, RoI (10-12 per cent ) is
higher than the Rate of interest (9 per cent) ;
b) The concept being used in taking this decision in Trading on Equity.
Trading on Equity refers to the use of fixed cost sources of finance
such as preference shares, debentures and long term loans in the
capital structure so as to increase the return on equity shares. 2+2
30 a) Right to be heard
b) District commission
c) No, he cannot appeal to Supreme Court if he is not satisfied with the
order of the District Commission but he can appeal before the State
Commission within 45 days.
OR
a) Give the meaning of 1+1+2
1) Right to seek redressal
2) Consumer
3) Responsibilities of the consumer (any 2) each and explain.
31 (i) Order; (ii) Esprit de corps; (iii) Equity (explain) 2x3=6
32 Decentralisation = 1 Mark 1+5=6
Importance of decentralisation – Explain three points
(OR)
(a) Divisional organisational structure has been adopted by ‘Sri Krishna
Sweets’
(b) Advantages of divisional organisational structure.
(i) Product specialisation
(ii) Flexibility
(iii) Expansion (Explain)
Disadvantages of divisional organisational structure-
(i) Inter-division conflicts
Ignorance of overall organisational interest (Explain)
33 (i) Objective -; …. Bring the National Cup after winning. 1½
(ii) Strategy – “For this, he prepares …………. Beat the Each
competitors.” =6
(iii) Method – “He coaches the ………….., offensive.
(iv) Procedure – “At the outset of ………….. to another step by step”
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34 Factors affecting price determination are- 1x6
1. Product Cost
2. The utility and demand of the product (Explain each point)
3. Degree pf competition in the market
4. Government and legal regulations
5. Pricing objectives
6. Discriminatory pricing
(OR)
(a) Marketing planning means after conducting marketing research i.e
after gathering and analysing information, the marketer has to
develop an appropriate plan so that the targets may be achieved.
(b) Product designing and development: A marketer should never forget
that survival is very difficult in the competitive market. A marketer
has to keep in mind, especially two issues – (i) the product, its
quality, design, colour, etc., (ii) the marketing strategy.
(c) Standardisation and Grading – Standardisation refers to the act of
producing goods of predetermined specifications, which helps to
achieve uniformity and consistency in the products. Grading into the
process of classification of products into different groups, on the
basis of some of it important characteristics such as quality, size etc.
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