
	Trending ▼ ICSE CBSE 10th ISC CBSE 12th CTET GATE UGC NET Vestibulares ResFinder

CBSE Class 12 Sample / Model Paper 2021 : Business Studies (with Marking Scheme / Solutions)

21 pages, 148 questions, 0 questions with responses, 0 total responses,

	cbse12	+Fave Message
	Profile Timeline Uploads Q & A

Home > cbse12 > SAMPLE / MOCK Question Papers : CBSE Board Class 12 > F Also featured on: cbse12

Instantly get Model Answers to questions on this ResPaper. Try now!
NEW ResPaper Exclusive!

Formatting page ...

CLASS XII BUSINESS STUDIES SAMPLE QUESTION PAPER 2020-21 MM 80 TIME: 3 HOURS General instructions: 1 This question paper contains 34 questions. 2. Marks are indicated against each question. 3. Answer should be brief and to the point. 4. Answers to the questions carrying 3 marks may be from 50 to 75 worlds. 5. Answers to the questions carrying 4 marks may be about 150 worlds. 6. Answers to the questions carrying 6 marks may be about 200 worlds. 7. Attempt all parts of the questions together. 1. 2. ------------------------- is the process of dividing work into manageable activities and then 1 grouping the activities which are similar in nature. A. Coordination B. Departmentalisation C. Organisation Structure D. Delegation of authority Even Though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the Business environment is being highlighted in the above statement? A. Specific and general forces B. Dynamic nature C. Relativity D. All the above. 1 1 3. Any one can be called a manager irrespective of the educational qualification possessed. 1 Identify the characteristic of the profession that Management does not fulfil in the statement being discussed above. 4. A. Ethical code of Conduct B. Professional Association C. Restricted Entry D. Service Motive Even after opening up of the Indian economy in 1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business. 1 Identify the dimension of the business environment which led to creation of the negative impact on business. A. Social Environment C. Political Environment 5. 6. B. Technological D. Legal Environment Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment. A. Management B. Planning C. Organising D. Controlling. The increase in the demand for many Ayurvedic medicines, Health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona virus. Identify the feature of business environment being described above. A. Specific and general forces C. Relativity 1 1 B. Interrelatedness D. None of the above 2 7. Which of the following is not an element of social environment? (a) A. Birth and Death rate (c) C. Population Shifts 8. 1 B. Constitution of the country D. Life expectancy Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner. Identify the characteristic of coordination discussed above. 1 A. Coordination ensures unity of action B. Coordination is a deliberate function C. Coordination is a continuous process D. Coordination is an all-pervasive function 9. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period. A. Planning C. Directing B. Organising D. Controlling 10. Identify an important principle of management control in which only significant deviations which go beyond the permissible limit should be brought to the notice of management. A. Management by control C. Critical point control 1 1 B. Control by exception D. (a)&(b) 3 11. ___________________________is the process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork. A. Planning 1 B. Organising C. Staffing OR D. Controlling ---------------------------------- ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it. A. Span of management B. Divisional Structure C. Functional structure D. Hierarchy of Authority. 12. Match the concept of marketing in Column I with their respective definition in Column II COLUMN II COLUMN I A) Product Concept i. relates to maintaining high quality of the product B) Selling Concept ii relates to satisfying customer needs C) Marketing Concept iii. relates to aggressively persuading buyer to purchase the product A. i,ii,iii B. ii,i,iii iii,ii,i D. i,iii,ii B. 1 OR In order to get feedback about its recently launched immunity boosting ayurvedic medicine, Atulya limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya 4 Limited: A. Standardisation B. Product Designing C. Customer support service D. Gathering and analyzing market information Read the following text and answer question No.13-16 on the basis of the same: ISQAA SOLAR limited is searching options to raise 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI PVT. LTD. for suggesting options for the same. DHAN LAXMI PVT. LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of 1500 crores the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. 4500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of 6000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise 8,000 crores through the on-line system of the stock exchange by entering into an agreement with the exchange. 13. Identify the method of floatation of new issues in the primary market, not taken up by ISQAA SOLAR LTD. A. Offer for sale C. E-IPO 14. 1 1 B. Rights issue D. Offer through prospectus 4500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. Identify the method of floatation of new issues in the primary market being discussed above, which the company has decided to use. A. Offer for sale B. Private placement C. Right Issue D. Offer through Prospectus 15. Identify the reason which has made the firm raise funds from the institutional investors. A. It helps to raise funds quickly B. It is not expensive C. Both a & b D. None of the above. 1 1 5 16. How much money was raised by the company through E-IPO s A. 8000 crores B. 4500 crores C. 20,000 crores D. 6000 crores 1 Read the following text and answer question No.17-20 on the basis of the same: Yamuna Prasad, a small shopkeeper in Bikaner, Rajasthan used to sell the famous Bhujia-Sev . It was a quick selling product for locals and foreign tourists. His second generation expanded the business and got Yamuna Ki Bhujia registered with concerned authorities. Gradually the brand offered a wide range of products to its customers like namkeen, sweets, bakery items etc. However, Bhujia-Sev remained the most popular product of the brand creating maximum revenue. Yamuna Ki Bhujia offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name. Now it has virtually become a synonym for bhujia-sev in the market, so much so, that people ask for Yamuna Ki Bhujia instead of bhujia-sev. Yamuna Ki Bhujia has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling. Promotion of the brand had always been low profile, till the increase in competition pushed it to hire the services of a professional advertising agency, VIGYAPAN PVT.LTD for promoting the product. On the advice of VIGYAPAN PVT.LTD, Yamuna Ki Bhujia has also worked upon managing public opinion by developing relations with the masses through sponsoring cultural and sporting events, maintenance of public parks etc. 17. His second generation expanded the business and got Yamuna Ki Bhujia registered with concerned authorities. 1 With reference to the given text Yamuna ki Bhujia is a _______________giving it a legal protection against its use by anyone else. A. Brand value B. Trademark C. Trait mark D. Brand mark 18. Yamuna Ki Bhujia offered its products at competitive prices even while offering customer services like gift packaging and free home delivery to become a household name. 1 Identify the factor affecting the element of marketing mix being discussed above. A. Marketing methods used B. Objectives 6 C. Extent of competition in the market D. product cost 19. Yamuna Ki Bhujia has developed a strong distribution network in India and abroad by setting up retail outlets and reaching out to the customer through internet selling. Identify the decision related to the element of marketing mix being discussed above. 1 A. Storing and assorting products in order to create time utility B. Regarding the channels or using intermediaries C. Both a & b D. One regarding branding, packaging and labelling 20. On the advice of VIGYAPAN PVT.LTD, Yamuna Ki Bhujia has also worked upon managing public opinion by developing relation with the masses through sponsoring cultural and sporting events, maintenance of public parks etc. Name the department in the organisation which is generally responsible for performing the above important task of managing public opinion. 1 A. Marketing Department B. A separate department created in the firm for the purpose C. An outside agency D. Any of the above. 21. Identify the level of management whose basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation. State any two functions of the level of management identified. 3 22. Explain Internship training and vestibule training and classify them as on-the-job and off-the-job methods of training. 3 7 23. Controlling is an indispensable function of management. Without controlling the best of plans can go awry . Do you agree? Explain any two reasons in support of your answer. 3 OR It is generally believed that measurement of performence should be done after the task is completed. Identify and explain the step in the process of the function of management being discussed above and the step followed by the same in the process. 24. State the development functions of the Securities Exchange Board of India. 3 OR State any three money market instruments. 25. In an interview with a leading news channel, Mr. Rakesh Kwatra, CEO of Get My Job has suggested that the Companies which want more and more people to apply for jobs in their organisation should make the process for applying for jobs easier and candidate friendly. 4 Name and explain the next two steps which follow the step, in the process of the function of management being discussed above. 26. Pramod is a supervisor at Shyam Breads and Biscuits Factory . The factory produces 20,000 packets of bread and biscuits every day. As a supervisor Promod ensures that work goes on smoothly and there is no interruption in production. He is a good leader who gives orders only after consulting his subordinates, working out the policies with the acceptance of the group. Identify and explain the leadership style being adopted by Pramod 4 27 Briefly explain the positive and negative aspects of the type of communication which arises out of the need of employees to exchange their views. 4 OR Identity and explain the elements of directing mentioned below A. Astha, a manager, has the ability to influence others to bring about a change in their behaviour. B. Neeraj, a managing director, declares share in the profits to the manager for their contribution to increase profits of the company. 8 28. Explain any four factors that can affect the working capital requirement of a company. 4 OR Explain any four factors that affect the choice of capital structure of a company. 29. Dheeraj wants to start a business of selling N-95 masks after the outbreak of the global pandemic of COVID-19. Due to the uncertain market conditions he wants to make a low investment in fixed capital. Suggest how the decisions related to the choice of technique and financing alternatives can help Dheeraj in ensuring a low investment in fixed capital 4 requirements. 30. Explain the following rights of consumers provided by Consumer Protection Act, 1986:- 4 (a) Right to Safety (b) Right to Consumer Education 31. Explain 'Science, not rule of thumb', 'Harmony, not discord', and 'Development of each and every person to his or her greatest efficiency and prosperity' as principles of Scientific Management given by F.W.Taylor. 6 32. 6 Planning is worth the huge costs involved? Do you agree? Explain any four reasons in support of your answer. OR If the project is important then more alternatives should be generated and thoroughly discussed amongst the members of the organisation. Identify and explain the step in the process of planning being discussed above. Also explain the remaining steps which will have to be carried out to complete the process. 33. An important difference between S&M Ltd and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need for autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent. Identify the philosophy that is being followed by S&M Ltd. through which it is dividing the decision- 6 9 making responsibilities among the hierarchical levels. State any five points of importance of the philosophy identified. 34. Advertising and Personal selling both are communication tools used by the marketers to promote their products. Yet they differ in their approach. Differentiate between the two by giving any six points. 6 OR The elements of marketing mix are popularly known as 4 P s of marketing. Briefly explain these elements. 10 MARKING SCHEME BUSINESS STUDIES 2020-21 Marks 1 B. Departmentalisation 1 2 D. All the above 1 3 C. Restricted Entry 1 4 C. Political environment 1 5 A. Management 1 6 B. Interrelatedness 1 7 B. Constitution of the country 1 8 B. Coordination is a deliberate function 1 9 D. Controlling 1 10 B. Control by exception 1 11 B. Organising OR B. Divisional structure 1 12 D. i,iii,ii OR D. Gathering and analyzing market information 1 13 D. Offer through prospectus 1 14 B. Private placement 1 15 C. Both a and b 1 16 A. 8000 crores 1 17 B. Trademark 1 18 A. Marketing methods used 1 19 B. Regarding the channels or using intermediaries 1 20 D. Any of the above 1 1 21 22 Top level management Functions of top-level management:(any two) 1. The top-level managers are responsible for the welfare and survival of the organisation. 2. They analyse the business environment and its implications for the survival of the firm. 3. They formulate overall organisational goals and strategies for their achievement. 4. They are responsible for all the activities of the business and for its impact on society. Internship training- is a joint programme of training in which educational institutions and business firms cooperate. Selected candidates carry on regular studies for the prescribed period. Vestibule training-Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a class room and employees use the same material, files and equipment. Internship training can be classified as On-the-job method of training Vestibule training can be classified as off-the-job method of training 23 Yes. Importance of controlling: (Any two) 1. Accomplishing organisational goals- The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. 2. Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate and objective. 3. Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. Each activity is performed in accordance with predetermined standards and norms. 4. Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they are appraised. 5. Ensuring order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. 6. Facilitating coordination in action: Controlling provides direction to all activities and efforts for achieving organisational goals. OR Measurement of Actual performance Performance should be measured in an objective and reliable manner. There are several techniques for measurement of performance. Wherever possible measurement of work should be done during the performance. 1 (1X2) (1 mark for each statement) 1 1 1 (1 x 2) ( mark for the heading+1 mark for the explanation) (1 x 2) ( mark for the heading+1 mark for the Comparing actual performance with standards: This step involves comparison of actual performance with the standard. Such explanation) comparison will reveal the deviation between actual and desired results. Standards become easier when standards are set in quantitative terms. 2 24 Development Functions of Securities and Exchange Board of India: 1. Training of intermediaries of the securities market. 2. Conducting research and publishing information useful to all market participants. 3. Undertaking measures to develop the capital markets by adapting a flexible approach. (1x3) (1 mark for each statement) OR Money market instruments are: (Any three) 1. Treasury Bill is basically an instrument of short-term borrowing by the Government of India maturing in less than one year. 2. Commercial paper is a short-term unsecured promissory note, negotiable and transferable by e and delivery with a fixed maturity period. 3. Call money is short term finance repayable on demand, with a maturity period of one day to fifteen days used for inter bank transactions. 4. Certificate of deposit are unsecured, negotiable, short term instruments in bearer form, issued by commercial banks and development financial institutions. 5. Commercial bill is a bill of exchange used to finance the working capital requirements of business firms. 25 Selection: Selection is the process of choosing from among the pool of the prospective job candidates developed at the stage of recruitment. Even in case of highly specialised jobs where the choice space is very narrow, the rigour of the selection process serves two important purposes: (i) it ensures that the organisation gets the best among the available and (ii) it enhances the self-esteem and prestige of those selected and conveys to them the seriousness with which the things are done in the organisation. Placement and orientation: Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation. Placement refers to the employee occupying the position or post for which the person has been selected. 26 Democratic or participative leader: A democratic leader will develop action plans and make decisions in consultation with his subordinates. He will encourage them to participate in decision making. This kind of leadership style is more common now-a-days, since leaders also recognise that people perform best if they have set their own objectives. They also need to respect the others opinion and support subordinates to perform their duties and accomplish organisational objectives. They exercise more control by using forces within the group. 27 Positive aspects of informal communication: 1. Sometimes, grapevine channels may be helpful as they carry information rapidly and therefore, may be useful to the manager at times. 2. Informal channels are used by the managers to transmit information so as to know the reactions of his/her subordinates. Negative aspects of informal communication: 1. The grapevine/informal communication sometimes gets distorted. It (1x3) (1 Mark for each statement) (2x2) (1/2 mark for naming and 11/2 marks for the explanation) (1+3) (1x4) 3 OR also leads to generating rumours and informal discussions and sometimes may hamper the work environment. 2. It is very difficult to detect the source of such communication. (a). Leadership- Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals. Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute for achieving organisational objectives. (b). Motivation- Motivation means incitement or inducement to act or move. In the context of an organisation. It means the process of making subordinates to act in a desired manner to achieve certain organisational goals. (2x2) 4 28 Following are the factors affecting working capital requirement of a (1x4) company: (Any four) 1. Nature of Business: The basic nature of a business influences the amount of working capital required. A trading organisation usually needs a smaller (1/2 mark for the amount of working capital compared to a manufacturing organisation. heading and 2. Scale of Operations: For organisations which operate on a higher scale of 1/2 marks for operation, the quantum of inventory and debtors required is generally high. the Such organisations, therefore, require large amounts of working capital as explanation) compared to the organisations which operate on a lower scale. 3. Business Cycle: Different phases of business cycles affect the requirement of working capital by a firm. In case of a boom, the sales as well as production are likely to be larger and, therefore, a larger amount of working capital is required. 4. Seasonal Factors: Most businesses have some seasonality in their operations. In peak season, because of higher levels of activity, larger amounts of working capital is required. 5. Production Cycle: Production cycle is the time span between the receipt the receipt of raw material and their conversion into finished goods. 6. Credit Allowed: Different firms allow different credit terms to their customers. These depend upon the level of competition that a firm faces as well as the credit worthiness of their clientele. 7. Operating Efficiency: Firms manage their operations with varied degree of efficiency. 8. Availability of Raw material: Higher the quantity of material to be stored, higher the amount of working capital required. 9. Growth Prospects: If the growth potential of a concern is perceived to be higher, it will require a higher amount of working capital. 10. Level of competition: Higher level of competitiveness may necessitate higher stocks of finished goods to meet urgent orders from customers. Or Ans: Following are the factors affecting capital structure of the company: (Any four) 1. Cash Flow Position: Size of projected cash flows must be considered before borrowing. Cash flows must not only cover fixed cash payment obligations but there must be sufficient buffers also. 5 2. Interest Coverage Ratio (ICR): The interest coverage ratio refers to the number of times earnings before interest and taxes of a company covers the (1X4) interest obligation 3. Debt Service Coverage Ratio (DSCR): Debt Service Coverage Ratio takes care of the deficiencies referred to in the Interest Coverage Ratio (ICR). The cash profits generated by the operations are compared with the total cash required for the service of the debt and the preference share capital. 4. Cost of debt: A firm s ability to borrow at a lower rate increases its capacity to employ higher debt. Thus, more debt can be used if debt can be raised at a lower rate. (1/2 mark for the heading and 1/2 marks for the explanation) 5. Tax Rate: A higher tax rate makes debt relatively cheaper vis-a-vis equity. 6. Floatation cost: Process of raising funds involves some costs, these considerations may affect the choice between debt and equity, hence the capital structure. 7. Risk Consideration: Business risk depends upon fixed operating cost. Fixed operating costs result in higher business risk and vice-versa. Total risk depends upon business risk and financial risk. 8. Flexibility: To maintain flexibility it must maintain some borrowing powers to take care of unforeseen circumstances. 9. Capital Structure of other companies: It has been observed that the capital structure of competing companies also affect the capital structure of the company in question. 10. Stock Market Conditions: Stock market conditions often affect the choice between equity and debt. 6 29 Choice of Technique: As he wishes to stick to a low investment model, we may suggest him to go with the labour-intensive approach to manufacture N- 2 95 masks. Since better technology would cost him much and his risk appetite is not conducive for capital intensive techniques of production. Financial Alternatives: As he wishes to stick to a low investment model, we may suggest him to go with the lease option for fixed assets like building, heavy machinery etc. as this may reduce his investments requirement in the business. 30 a) Right to safety: The consumer has a right to be protected against goods and services which are hazardous to life and health. For instance, electrical appliances which are manufactured with substandard products or do not conform to the safety norms might cause serious injury. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications. 2 2 (b)Right to Consumer Education: The consumer has a right to acquire knowledge and to be a well-informed consumer throughout life. He should 2 be aware about his rights and the reliefs available to him in case of a product or service falling short of his expectations. 31 (3 x 2) Science not rule of thumb: Taylor pioneered the introduction of the method of scientific inquiry into the domain of scientific inquiry into the domain of management practice. We have already referred to the limitations of the rule of thumb approach of management. As different managers would follow their indigenous rules of thumb. It is but a statement of the obvious that all would not be equally effective. Taylor believed that there was only one best method to maximise efficiency. This method can be developed through study and analysis. The method so developed through study and analysis. The method so developed should substitute Rule of Thumb throughout the organisation. Scientific method involved investigation of traditional methods through work-study, unifying the best practices and developing a standard method. Harmony, not discord: Factory system of production implied that managers served as a link between the owners and the workers. Since as managers they had the mandate to get work done from the workers. Taylor recognised that this conflict helped none, the workers, the managers or the factory owners. He emphasised that there should be complete harmony between the management and workers. Both should realise that each one is important. To achieve this state, Taylor called for a complete Mental Revolution on part of both management and workers. It means that management and workers should transform their thinking. Management should share the gains of the company with the workers. At the same time workers should work hard and be willing to embrace change for the good of the company. Development of each and every person to his or her greatest efficiency and prosperity: As such, scientific management also stood for worker development. Worker 7 training was essential also to learn the best method developed as a consequence of the scientific approach. Taylor was of the view that the concern for efficiency could be built in right from the process of employee selection. Each person should be scientifically selected. Then work assigned should suit her/his physical, mental and intellectual capabilities. To increase efficiency, they should be given required training. Efficient employees would produce more and earn more. This will ensure their greatest efficiency and prosperity for both company and workers. 32 Yes. Importance of Planning (Any four) 1. Planning provides direction: Planning ensures that the goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals. 2. Planning reduces the risks of uncertainty: Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance, the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed. 3. Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Since planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and redundant activities are minimised or eliminated. 4. Planning promotes innovative ideas: Since planning is the first function of management, new ideas can take the shape of concrete plans. It is the most challenging activity for the management as it guides all future actions leading to growth and prosperity of the business. 5. Planning facilitates decision making: Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. The manager has to evaluate each alternative and select the most viable proposition. Planning involves setting targets and predicting future conditions thus helping in taking rational decisions. 6. Planning establishes standards for controlling: Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected. Therefore, we can say that planning is a prerequisite for controlling. (1 x4) ( mark for the heading and 1 mark for the explanation) 8 OR 2 Identifying alternative courses of action: Once objectives are set assumptions are made. Then the next step would be to act upon them. There may be many ways to act and achieve objectives. All the alternative courses of action should be identified. The course of action which may be taken could be either routine or innovative. An innovative course may be adopted by involving more people and sharing their ideas. Remaining steps to carried out to complete the process are as follows: 1. Evaluating alternative courses: The next step is to weigh pros and cons of each alternative. Each course will have many variables which have to be weighed against each other. The positive and negative aspects of each proposal need to be evaluated in the light of the objective to be achieved. 2. Selecting an alternative: This is the real point of decision making. The best plan has to be adopted and implemented. The ideal plan, of course, would be the most feasible, profitable and with least negative consequences. Most plans may not always be subjected to a mathematical analysis. 3. Implementing the plan: This is the step where other managerial functions also come into the picture. The step is concerned with putting the plan into action. 4. Follow up action: To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved. 33 DecentralisationImportance of Decentralisation (Any five) 1. Develops initiative among subordinates-Decentralisation helps to promote self-reliance and confidence amongst the subordinates. 2. Develops managerial talent for the future- Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation but equally important is the experience gained by handling assignments independently. 3. Quick decision making- The management hierarchy can be looked upon as a chain of communication. In a decentralised organisation however, since decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels the process is much faster. 4. Relief to top management- Decentralisation diminishes the amount of direct supervision exercised by a superior over the activities of a subordinate because they are given the freedom to act and decide albeit within the limits set by the superior. 5. Facilitates growth: Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their department and fosters a sense of competition amongst the 1x4 ( mark for the heading and 1/2 mark for the explanation) 1 1x5 (1 mark for each statement) 9 departments. 6. Better control: Decentralisation makes it possible to evaluate performance at each level and the departments can be individually held accountable for their results. 34 Following are the points of differences between advertising and personal selling (Any Six) Advertising Personal Selling 1. Advertising is an impersonal form of communication. Personal selling is a personal form of communication. 2. Advertising involves transmission of standardised messages, i.e., the same message is sent to all the customers in a market segment. In personal selling, the sales talk is adjusted keeping view of customer's background and needs. 3. Advertising is inflexible as the message can t be adjusted to the needs of the buyer. Personal selling is highly flexible. as the message can be adjusted. 4. It reaches masses, i.e., a large number of people can be approached. (1x6) Only a limited number of people can be contacted because of time and cost considerations. 5. In advertising the cost per person reached is very low. The cost per person is quite high in the case of personal selling. 6. Advertising can cover the market in a short time. Personal selling efforts take a lot of time to cover the entire market. 7. Advertising makes use of mass media such television, radio, newspaper, and magazines. Personal selling makes use of sales staff, which has limited reach. 8. Advertising lacks direct feedback. Marketing research efforts are needed to judge customers reactions to advertising. Personal selling provides direct and immediate feedback. Sales persons come to know about the customers reactions immediately. 9. Advertising is more useful in Personal selling plays an important role creating and building interest of the at the awareness stage of decision making. consumers in the firm's products. 10. Advertising is more useful in marketing to the ultimate consumers who are large in Personal selling is more helpful in selling products to the industrial buyers or to intermediaries such as dealers and 10 numbers retailers who are relatively few in numbers. OR The marketing mix consists of various variables, which have broadly been classified into four categories, popularly known as four Ps of marketing. These are: (i) Product, (ii) Price, (iii) Place, and (iv) Promotion, and are discussed as follows: 1. Product: Product means goods or services or anything of value , which is offered to the market for exchange. The concept of product relates to not only the physical product as mentioned in the above examples but also the benefits offered by it from the customer's view point (for example toothpaste is bought for whitening teeth, strengthening gums, etc.). The concept of product also includes the extended product or what is offered to the customers by way of after sales services, handling complaints, availability of spare parts etc. These aspects are very important, particularly in the marketing of consumer durable products (like Automobiles, Refrigerators, etc.). The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products. 2. Price: Price is the amount of money customers have to pay to obtain the product. In the case of most of the products, the level of price affects the level of their demand. The marketers have not only to decide about the objectives of price setting but to analyse the factors determining the price and fix a price for the firm s products. 3. Place: Place or Physical Distribution include activities that make firm s products available to the target customers. Important decision areas in this respect include selection of dealers or intermediaries to reach the customers, providing support to the intermediaries (by way of discounts, promotional campaigns, etc.). 4. Promotion: Promotion of products and services include activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. Most marketing organisations undertake various promotional activities and spend a substantial amount of money on the promotion of their goods through using a number of tools such as advertising, personal selling and sales promotion techniques (like price discounts, free samples, etc.). (1 x4) ( mark for the heading and 1 mark for the explanation) 11

Formatting page ...

Tags : cbse, cbse papers, cbse sample papers, cbse books, portal for cbse india, cbse question bank, central board of secondary education, cbse question papers with answers, prelims preliminary exams, pre board exam papers, cbse model test papers, solved board question papers of cbse last year, previous years solved question papers, free online cbse solved question paper, cbse syllabus, india cbse board sample questions papers, last 10 years cbse papers, cbse question papers 2017, cbse guess sample questions papers, cbse important questions, specimen / mock papers 2018.

cbse12 chat

Horizontal lines at:
Guest Horizontal lines at:
AutoRM Data:
Box geometries: