KENDRIYA VIDYALAYA SANGATHAN,KOLKATA REGION

PRE-BOARD EXAMINATION(2024-25)
CLASS: XII
BUSINESS STUDIES
SET - A
[Link]: 80 MARKING SCHEME TIME: 3 Hrs.

1 c 1
2 b 1
3 a 1
4 a 1
5 b 1
6 c 1
7 c 1
8 b 1
9 c 1
10 b 1
11 a 1
12 c 1
13 b 1
14 a 1
15 b 1
16 b 1
17 a 1
18 d 1
19 d 1
20 C 1
21 i) Management Function: Controlling (1 marks) 3
(ii) Steps in Controlling 1. Setting standards of performance 2. Measurement of actual
performance 3. Comparison of actual performance with the standards 4. Analyzing
deviations 5. Taking Action, if necessary (2 marks)
22 a. External Source (1 marks) 3
b. 1. Qualified Personnel : By using external source of recruitment the management can
attract qualified and trained people to apply for the vacant job in the org.
2. Wider Choice : The management has a winder choice selecting the people for employment.
(2 marks)
23 1. Registration of brokers and sub-brokers and other players in the market. 2. Registration of 3
collective investment schemes and Mutual Funds. 3. Regulation of stock brokers,
underwriters and merchant bankers 4. Regulation of takeover bids by companies. 5. Calling
for information by undertaking inspection, conducting enquiries and audits of stock
exchanges and intermediaries
Or
1. Prohibition of fraudulent and unfair trade practices like making misleading statements,
manipulations, price rigging etc. 2. Controlling insider trading and imposing penalties for such
practices. 3. Undertaking steps for investor protection. 4. Promotion of fair practices and
code of
 conduct in securities market.
(1x3=3)
24 Top Level of Management 1 marks 3
Funtions (1x2= 2 marks)
Or
Middle Level of Management 1 marks
Funtions (1x2= 2 marks)
25 1. Basic Physiological Needs: These are the most basic need such as food, shelter, sleep etc. 4
In the organizational context, basic salary helps to satisfy these needs.
2. Safety/ Security Need: Provide security from physical and emotional harm E.g. Job security,
stability Etc.
3. Affiliation/Belonging Need: These needs refer to affection, sense of belongingness,
acceptance and friendship for mental satisfaction.
4. Esteem Needs: These include factors such as self-respect, prestige, autonomy status,
recognition and attention.
5. Self-Actualization Needs: It is the highest level of need in the hierarchy. It refers to the
drive to become what one is capable of becoming. (1x4=4)
Or
1. Status: It is the level of authority, responsibility and recognition an employee commands in
the organization.
2. Organizational climate: Characteristics influencing an individual's behaviour such as
individual autonomy, reward orientation, consideration to employees, etc.
3. Career advancement opportunity: Opportunities of growth and development in the
organization to the higher level.
4. Job enrichment: It refers to a variety of work offered to challenge the knowledge and skills
of highly motivated employees. (1x4=4)
26 Internship and its explanation 4
Apprenticeship and induction its explanation
(2+2)
27 Factors Affecting Requirement of Fixed Capital 4
1. Nature of Business: Manufacturing concerns require huge investment in fixed assets & thus
huge fixed capital is required for them but trading concerns need less fixed capital as they are
not required to purchase plant and machinery etc.
2. Scale of Operations: An organization operating on large scale requires more fixed capital as
compared to an organization operating on small scale. For Example – A large scale steel
enterprise like TISCO requires large investment as compared to a mini steel plant.
3. Choice of Technique: An organization using capital intensive techniques requires more
investment in plant & machinery as compared to an organization using labour intensive
techniques.
4. Technology upgradation: Organizations using assets which become obsolete faster require
more fixed capital as compared to other organizations.
5. Growth Prospects: Companies having more growth plans require more fixed capital. In
order to expand production capacity more plant & machinery are required.
6. Diversification: In case a company goes for diversification then it will require more fixed
capital to invest in fixed assets like plant and machinery. 1X4=4
28 Deeksha is able to overcome the semantic barriers by ensuring that all the call 4
centre representatives are well versed with the local languages.
 The benefits of training to an organization (1+1x3=4)

29 No, as she did not lodge her complain whitin 45 days. 4

(i)Be aware about various goods and services available in the market so that an intelligent
and wise choice can be made. (ii) Buy only standardised goods as they provide quality
assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark
on jewelry, etc. (iii) Learn about the risks associated with products and services, follow
manufacturer’s instructions and use the products safely. (1+1x3=4)
30 Factors affecting Dividend Decision 4
1. Earnings : Companies having high and stable earning could declare high rate of dividends
as dividends are paid out of current and past earnings.
2. Stability of Dividends : Companies generally follow the policy of stable dividend. The
dividend per share is not altered/changed in case earnings change by small proportion or
increase in earnings is temporary in nature.
3. Growth Prospects : In case there are growth prospects for the company in the near future
them it will retain its earning and thus, no or less dividend will be declared.
4. Cash Flow Positions: Dividends involve an outflow of cash and thus, availability of adequate
cash is for most requirement for declaration of dividends.
5. Preference of Shareholders : While deciding about dividend the preference of shareholders
is also taken into account. In case shareholders desire for dividend then company may go for
declaring the same.
6. Taxation Policy : A company is required to pay tax on dividend declared by it. If tax on
dividend is higher, company will prefer to pay less by way of dividends whereas if tax rates
are lower then more dividends can be declared by the company.
7. Issue of bonus shares : Companies with large reserves may alsodistribute bonus shares to
increase their capital base as it signifies growth of the company and enhances its reputation
also.
8. Legal constraints : Under provisions of Companies Act, all earnings can’t be distributed and
the company has to provide for various reserves. This limits the capacity of company to
declare dividend. (1x4=4)
Or
Financial planning is the type of financial service that Su bhash has offered to
Bhuvan.
The four points highlighting the importance of financial planning are as follows:
It ensures smooth running of a business enterprise by ensuring availability of funds
at the right time.
It helps in anticipating future requirements of a funds and evading business shocks
and surprises.
It facilitates co-ordination among various departments of an enterprise like
marketing and production function, through well -defined policies and procedures.
It increases the efficiency of operation s by curbing wastage of funds, duplication of
efforts, and gaps in planning. (1+1x3=4)

31 a. Functional foremanship (1x6=6) 6

b. Method study
 c. Mental revolution.
d. Differential piece wage system
e. Standardisation of work
f. Time study
32 a. Divisional Structure. 6
b. Many products.
c. Advantages :- 1. Quick decision making :- Divisional manager can take any decision
regarding his division independently which makes decisions quick and effective.
2. Divisional results can be Assessed :- Divisional results (profit/loss) can be assessed
easily. On this basis unprofitable division can be closed.
3. Growth and Expansion :- It facilitates growth and expansion as new divisions can be added
without disturbing existing departments.
4. Easy to take Accountability (1+1+4=6)
Or
Decentralization
Importance of Decentralization
1. Relief to top management:
2. Develops initiative amongst subordinates:
3. Develops managerial talent for the future:
4. Effective administration
5. Better Control
(1+1x5=6)
33 a. Planning 6
b. Steps involved are:
i. Setting objectives : The company plans to increase the sale of its cars by
20% in the next quarter
ii. Developing premises: In order to achieve the desired target, the
marketing team of the company considers the impact of policy of the
government towards diesel vehicles and the level of competition in this
segment of cars
iii. Identifying alternatives course of action: They explore the various available
option like offering more discount to dealers and customers, providing
more customer friendly finance options, lucky draws on test drives,
increasing advertising, offering more of free accessories on the
purchase of the car, etc.
iv. Evaluating alternative and selecting an alternative: A thorough analysis of
the various available options is done keeping in view the relative
viability of each option.
 v. Selection of plans: The company decides to pursue the option of offering
more discount to dealers and customers in order to boost the sale of
cars
vi. Implementing the plans: In order to implement the plan, they determine
the various discount packages and communicate the same to their
product dealers
vii. follow-up: The market analysts of the company keep a close watch on
the revenue from the sedan cars to study the effect of new initiatives
by the company to promote its sales (1+5x1=6)
34 Marketing Management philosophies: - 6
1. Production Concept:
Main Focus: Large-scale production to decrease the cost.
2. Product concept: -
Main Focus: Good quality, added features in product.
3. Selling Concept: -
Main Focus: To sell whatever is produced by using intensive promotional technique.
4. Marketing Concept: -
Main Focus: Customer satisfaction.
5. Societal concept: -
Main Focus: Customer satisfaction with in ethical and ecological boundaries of our
society.
(1.5x4=6)
Or
Following are the functions of marketing management: -
 Gathering and analyzing market information is done to know the taste and preference of
the target market.
 Marketing planning is needed to meet the marketing objectives of the firm effectively and
efficiently.

 Product designing and development is carried out to make the product innovative and
attractive.
 Packaging and labelling are needed for product protection, product identification and
product differentiation.
 Branding helps to create unique identity of the products.
 Customer support services help to create a good image of the marketer in the eyes of
consumers.
(1x6=6)