Solved Paper - 2024 35

ANSWERS
Delhi Set-1
66/5/
1.Option (C) is correct. 9. Option (C) is correct.
Explanation: Varun, an employee in the Explanatlon: The rate of saving and investment is
production department, was encouraged to more related to the economic environment rather
develop and implement a plan for improvement than the social environment, which typically includes
in the organisation, which resulted in asignificant aspects like family composition,, consumption habits,
reduction in production costs. Additionally, he was and educational system.
rewarded for his suggestion, which further reflects 10. Option (A) is correct.
the company's support for employee initiatives and
innovative ideas. Explanation: Leasing facilities can reduce the
funds required for fixed assets because instead
2. Option (D) is correct. of purchasing the asset outright, a firm can use
Exvlanation: The incentive that attracted employees leasing arrangements to pay lease rentals, which
of Child-0' to other orgarnisations is Employee can be more manageable than the initial investment
Empowerment, which involves giving employees needed for ownership.
more autonomy and authority over their work,
making them feel their jobs are important. 11. Option (C) is correct.
Explanation: Trademark refers to a brand or a part
3. Option (B) is correct. of the brand that is given legal protection. Brand
Explanation: The feature of the business environment name involves that part of the brand which can be
highlighted in the statement is Complexity, which spoken. Brand means a name, term, sign, symbol,
refers to the difficult and interconnected nature of
design or some combination of them used to
various factors, making it challenging to understand identify the products and differentiate them from
the environment in its entirety at once.
the competitors. Brand mark includes that part of
4. Option (B) is correct. the brand which can be recognised but which is not
Explanation: The communication used by Naman utterable.
to communicate the order to Vineet was Informal
12. Option (D) is correct.
Communication, indicated by the casual and Explanation: Kanand Ltd. invested in the capacity
spontaneous nature of their interaction over the to fulfil expected demand quickly, showing
intercom during non-official times.
a prospective for growth. Future company
5. Option (C) is correct. development forecasts affect fixed asset investment
Explanation: In Statement-I highlights the basic choices to enable increasing production capacity
function of a stock exchange as creating a continu and fulfil future demand.
ous market for buying and selling securities, while 13. Option (B) is correct.
Statement-II emphasizes how stock exchanges pro Explanation: Casual callers are unsolicited
vide liquidity and marketability to existing securi candidates seeking job possibilities at a company's
ties. office. Casual callers may be used as a source of
6. Option (B) is correct. personnel by maintaining a database and screening
Explanation: The dimension of the business envi them for employment openings.
ronment being discussed in this context is the legal 14. Option (D) is correct.
environment, which includes laws, regulations, and Explanation: Labels on refrigerators provide
policies that impact businesses and their operations. information that helps consumers make informed
7. Option (C) is correct. decisions, use the appliance safely, and comply with
Explanation: Motivation may come from rewards, regulations.
recognition, and opportunities for growth, as well 15. Option (D) is correct.
as negative factors like fear of failure, consequences, Explanation: A stronger cash flow position makes
or punishment. Motivation can be complex since debt financing more viable than funding through
people have varied expectations, perceptions, and equity.
responses to the same factors. Different people are If a business has high fixed operating costs, for
motivated by different things. example: rent, insurance premium, et., it should
8. Option (A) is correct. opt for less fixed financing cost (interest) by using
Explanation: Consumer protection for the less debt financing. Similarly, if fixed operating cost
Supermarket, helping them increase the customer is less, more debt financing can be done.
base, is the long-term interest of the business. This Issue of more equity may lead to dilution of
is achieved by satisfying customers, ensuring repeat management control over the business. Companies
sales, and receiving positive feedback that attracts which may be afraid of a takeover bid may prefer
new customers. debt to equity.
 Class.yu
& Topicwise, Business Studies,
Oswaal CBSE Question Bank Chapterwise
36
It is generally used where the employees are re.
16. Option (A)is correct. quired to handle sophisticated machinery.
Explanation: A depository is an institution that, at thi:
the investors' request and viaa registered depository (b) Two advantages the drivers will get after
participant, maintains securities in electronic format. training are:
on learning
17. Option (A) is correct. 1. Employees can concentrate solelyaffecting the
resource without worrying about errors
Explanation: Efficiency emphasises manufacturing process.
utilization and job completion at a low cost. It's
different from effectiveness, which seeks objectives 2. Employees can Overcome nervousnes
at any cost, and management, which plans and working in the real environment by
about
organises resources. familiarizing themselves with the simulated
18. Option (D) is corect. work environment during training.
Explanation: Top management makes strategic protection and securities
24. SEBI is vital to investor
decisions and directs the company. Top management marketintegrity.SEBI has three protective functions
must assess the business climate and its effects on
1 Investor Protection: SEBI protects investors
the firm's survival and performance. interests. It governs brokers, stock exchanges,
19. Option (B) is correct. and listed firms to promote securities market
facilitates
Explanation: Management activities are common and openness, fairness, and integrity. SEBIinform in
applicable to all types of organizations, regardless of investor education and awareness to
their economic, political,or socialnature. Any company, vestorsof their rights, dangers, and duties.
regardless of kind or goal, needs management concepts 2 Market surveillance: SEBI monitors trade to
and practices to perform wel. identify market manipulation, insider trading,
20. Option (D) is correct. and other misconduct. SEBIdetects fraudulent
Explanation: Short-term debt instruments and transactions and takes immediate regulatory ac
securities like Treasury bills, Trade bills, Commercial tion to protect investors and market efficiency.
paper, Certificates of deposit, etc. dominate the 3. Regulation Enforcement: SEBI enforces indus
money market. Money market transactions are try ethics and securities law compliance. It pun
usually short-term lending and borrowing using ishes regulatory violators with fines and disci
short-term instruments. plinary actions to deter misconduct and ensure
21. (a) The concept of management discussed in the securities market accountability.
paragraph is "coordination." Coordination in
volves organizing and synchronizing the activi 25. (a) Right to Consumer Education: The consumer
ties of different individuals or groups within an has a right to acquire knowledge and to be a
well informed consumer throughout life. He
organization to achieve a common goal effec should be aware about his rights and the reliefs
tively and effidently. available to him in case of a product or service
(b) One point of importance of the concept of co falling short of his expectations. Many consumer
ordination is: Coordination improves manage organisations and some enlightened businesses
ment productivity and efficiency. When team are taking an active part in educating consumers
members are assigned jobs and perform in uni in this respect.
ty, it lowers duplication, disagreements, and re
source waste. Smoother operations, higher pro (b) The consumer right violated by Bholaram' in the
ductivity, and better organization performance above case is the right to safety. This right pro
result. tects consumers against damaging goods and
22. The following three points emphasise its importance: services. In 'Karamati Sweets, "Bholaram' used
contaminated khoya and paneer, which made
1. Talent Acquisition: Staffing entails finding, customers ill. This right-to-safety breach shows
recruíting and employing qualified candidates the significance of product quality and safety to
for company positions. This boosts the safeguard customers' health and well-being.
company's success and competitiveness. 26. The case of 'Chromosome' highlights two significant
2. Skill Development: Staffing comprises staff communication barriers in their business process
training and development. This boosts produc outsourcing (BPO) centre:
tivity, creativity, and company agility. 1. Faulty Translations: One of the communica
3. Employee Engagement and Retention: Good tion barriers is related to the employees profi
staffing methods prioritize create a happy work ciency in different languages. The organisation
atmosphere, create development opportunities, requires its staff to speak at least one foreign and
and recognize employee efforts to retain top tal one Indian language, however, some may not
ent, decrease turnover, and establish a strong, be fluent. Lack of expertise might make it dif
cohesive team. ficult to decode audio messages in multiple lan
23. (a) Vestibule Training: Vestibule Training is a guages, leading to interpretation errors.
method of training which is conducted on the 2 Technical Jargons: The second barrier is the em
equipments and machines employees will be us ployees' understanding of technical vocabulary
ing, away from the actual place of work. used in the voice reports. Technical language in
Sohed Paper 2024
37

medical reports requires expertise to compre

hend. Lack of training or Main Focus Production Customner
nical vocabulary may causefamiliarity with tech
staff to misinterpret efficiency and satisfaction and
words or phrases, resulting in report transcrip cOst reduction. creating customer
tion mistakes. value.
27. (a) Here are four planning limitations: Means Efficient Market research,
1. Change and production Customer
Uncertainty: Current facts and processes, and segmentation,
future assumptions influence plans. However, economies of and product
market dynamics, technology
legislative changes make the advances,
future
and
unpre
Scale. differentiation.
dictable. It might be hard to develop proper Ends Seling what Meeting customer
preparations with this uncertainty. is produced demands
2 Time and Cost: (product (customer centric).
Planning takes time,
es, and effort to acquire, evaluate, andresourc
devel
centric).
op plans. This may be time-consuming and
expensive for intricate or long-term strategies. 29. (a) The type of organisation that emerged as "En
Unexpected delays or financial restrictions tertainmernt Through Reading" can be identified
as an informal organisation. An informal organi
might also affect planning and execution. sation spontaneously forms inside a formal or
3. Change Resistance: Organisational stake ganisation via social contacts, similar interests,
holders may reject planned changes owing to and personal ties.Here, 'Space Rover' members
fear of the unknown, job security concerns, or from various groups met informaly because
disagreement with recommended tactics. This they liked reading and playing
resistance might hamper plan execution and (b) Three advantages of the informal organisation
take more work to overCome. identified in (a)above are:
4. Planning is overemphasized: Plan-focused 1. Improved Morale and Engagement nfor
businesses might suffer from analysis pa mal gatherings like Entertainment Through
ralysis or bureaucracy. Too much preparation Reading' may enhance morale and engage
without execution and adaptability may lead ment. Social connections, shared activities,
to lost opportunities, inefficiencies, and inabi and mutual support help members feel more
connected to each other.
ity to change rapidly.
OR
2 Creativity and Innovation: Informal group
ings encourages creativity and innovation. n
(b) () Strategy: Strategies are high-level plans the instance of 'Entertainment Through Read
to accomplish an organisation's long-term ing individuals from varied backgrounds
aims. This entails studying the competitive and experience discussed, shared ideas, and
environment, finding opportunities and developed unique solutions or proposals that
challenges, and creating a strategy to helped the organisation's goals.
acquire an edge. Top management develops 3. Flexibility and Adaptability: Informal groups
strategies for directing the organisation's adapt to changing conditions. They can quick
direction and resource allocation. They are ly form, evolve, or dissolve based on members
forward-ooking and focus on positioning interests and needs. This flexability promotes
the organisation for success in the future. spontaneous cooperation, problem-solving,
and information exchange.
(iü) Procedure: A procedure is a detailed
step-by-step sequence of activities or 30. (a) (0) Product Designing and Development
actions that individuals or teams must Marketing creates and mproves goods
and services to fulfil client demands.
follow to accomplish a specific task or
Using market research and customer input,
achieve a particular goal. Procedures are
often documented in manuals, guides, or product designers develop concepts and
standard operating procedures to ensure features. It comprises aesthetics, uility,
usefulness, and innovation to set the product
consistency, efficiency, and compliance apart and attract customers. However,
with organisational standards and policies. development involves prototyping testing
28. and improving the planned product.
(i) Standardization and Grading: This
Basis Production Marketing marketing strategy ensures product and
Concept Concept service quality and specifications across
markets and manufacturing batches.
Focuses onmass Emphasises
Meaning production and identifying
Standardizing goods, processes, and
and satisfying services ensures uniformity in performance,
efficiency in appearance, safety, and other aspects.
Customer needs
manufacturing, This boosts brand recognition, lowers
and wants.
manufacturing costs, and simplifies market
38 Oswaal CBSE Question Bank Chapterwise &Topicwise, Business Studies, Class-,
OR
entry. However, grading clasifies things by
quality, size, colour, or performance. Pricing (b) (i) Method Study: Method Study is
differences and informed client choice are systematic approach used to analyse an
possible with it. improve work methods and process
within an organisation. It includes dividir.
OR jobs into smaller parts and examinin
their sequencing time, and resource
(b) The marketing mix consists of four important By identifying process inefficiencie:
elements, also known as the 4Ps:
redundancies, and bottlenecks, metho
1. Product: This element refers to the goods or study standardizes, simplifies, and optimize
services offered by acompany to meet cus
tomer needs and wants. It covers product
work processes to boost productivit,
decrease waste, and improve organisationa
characteristics, quality, design, branding, performance.
packaging, and after-sales assistance. (ii) Differential Piece Wage System: The
2. Price: The price customers pay for the product Differential Piece Wage System pay:
or service. Pricing tactics,discounts, payment workers differently per unit of output base:
conditions, and competitive and perceived on performance. Productivity increases
value pricing structures are involved.
earnings, whereas lesser productivit,
3. Place: Place, also known as distribution, in decreases them. The approach encourage
volves the channels and methods used to workers to work harder, increasing
make the product or service available to cus production and lowering expenses.
tomers. Distribution,, logistics, warehousing (ii) Fatigue Study: The Fatigue Study focuses
transportation, and retail choices are includ on understanding and mitigating the
ed. physical and mentalfatigue experienced by
4. Promotion: Promotion involves communi workers during their tasks. Organisations
cating and promoting the product or service may enhance worker well-being safety
to the target market. It includes advertising, and performance by understanding and
sales promotions, PR, direct marketing, social managing tiredness.
media marketing, and personal selling. 32. (a) (i) Operating Efficiency: Operating efficienc
31. (a) (i) General Guidelines: Principles of refers to how effectively a compan;
management provide general guidelines or manages its resources and processes to
fundamerntal rules that guide managerial generate revenue and control costs. It affects
decision-making and actions within an inventories, receivables, and payables
management, which affects working capital.
organisation. Observations, experiences, A
firm with great operational efficiency may
and research on managing behaviours
across sectors and situations influence these manage inventory levels, reduce stockouts
and inventory expenses, increase sales cash
concepts. They help managers use planning, flow, and negotiate advantageous supplier
organising, leading, and regulating ideas. Credit terms.
(ü) Flexible: The principle of management (i) Credit Availed: The credit availed by a
is flexible. The situation, objectives, and business, including short-term loans, lines
operational environment may affect these of credit, and trade credit from suppliers
concepts. This allowS managers to creatively affects its working capital requirements
adapt principles to business culture, significantly. Credit can fund everyday
industry developments, technology, and operations, cash flow volatility, and
market dynamics. When managers adapt corporate development. However, excessive
while following management principles, credit use increases interest and debt service
the company may be creative, agile, and costs, increasing working capital demands.
responsive. Effective credit management, prompt
(iti) Cause and Efect Relationship: Principles repayment, and smart credit use may
maximise working capital use and alleviate
of management often describe cause-and the financial burden on the organisation.
effect relationships between managerial
actions and organisational outcomes. They (iii) Level of Competition: The level of
assist managers in understanding how competition in the industry or market where
actions and behaviours affect employee a business operates influences its working
motivation, productivity, job satisfaction, capital requirements. Competitive pricing
lengthier receivables collection times, and
and performance. Management improves aggressive marketing and promotional costs
with rigorous and analytical problem might occur. These characteristics may boost
solving and decision-making under this working capital for sales growth, inventory
cause-and-effect relationship. management, and customer satisfaction.
Soved Paper 2024 39

OR
1. Comparing Actual Performance with Stand
(b) (i) Stability of dividends: This refers to the ards: Line: The hotel had to be given posses
consistency and predictability of sion by next year but the construction of the
payments over time. Companiesdividend often
hotel was running six months behind sched
aim for a stable dividend policy to signal ule.'
financial strength and attract investors who This step involves comparison of actual
prefer regular income. Income performance with the standard. Such
flow predictability, and futurestability, cash
investment comparison willreveal the deviation between
possibilities affect the company's dividend actual and desired results.
payout ratio. 2. Analysing Deviations:Line: Nitininvestigated
(ii) Contractual constraints: Companies may and reported to the Chief Executive Officer
have contractual obligations, such as loan that inspite of huge absenteeism of workers,
covenants or agreements with preferred additional workers were not called. Nitin also
shareholders, that dictate dividend reported to the Chief Executive Officer that
payments. The company's payout amount three of the ten machines being used by the
and frequency may be limited by these workers were defective.'
factors. Legal or financial consequences After identifying the deviations that demand
might result from dividend non-payment. managerial attention, these deviations need
(iii) Stock market reaction: The stock market's to be analysed for their causes. Deviations
reaction to dividend announcements or may have multiple
changes can influence a company's dividend 3. Taking Corrective Action: Line: Nitin
decisions. Investor confidence and support ordered for repair of the machines and
for the company's dividend policy may be asked the Project Head to appoint additional
shown by a stock price gain following larger workers with. attractive wages to ensure that
distributions. Conversely, negative market the deadline is met.'
reactions may prompt a re-evaluation of This is the last step of. Controlling process.
dividend policies to align with investor
expectations and market sentiment.
By comparing actual performance with
established standards, deviations are
33. (a) The function of management discussed in the revealed. The remedial or corrective action
paragraph is "Organising." Organising involves is to be taken to remove deficiencies. Here,
arranging resources, tasks, and people in a struc it involves change in working methods,
tured m¡nner to achieve organisational goals ef material, machines, policies and procedures.
ficiently. (b) Importance of controlling:
(b) The importance of organising in the context of (i) Accomplishing organisational goals: The con
the G20 Summit preparations includes: trolling function measures progress towards the
1. Efciency: Organising ensures that resources organisational goals and brings to light the de
are allocated effectively, tasks are streamlined, viations, if any, and indicates corrective action.
and responsibilities are clearly defined. This (i) Judging accuracy of standards: A good control
boosts summit infrastructure, beautification, system enables management to verify whether
hospitality, and security efficiency. the standards set are accurate and objective.
2. Coordinating: Organising clarifies relation (iüi) Making efficient use of resources: By exercising
ships and hierarchies, making summit prepa control, a manager seeks to reduce wastage and
rations easier for departments, teams, and spoilage of resources. Each activity is performed
individuals. The coordination promotes easy in accordance with predetermined standards
communication, cooperation, and integration and norms.
of activities toward shared goals.
(iv) Improving employee motivation: A good con
3. Resource Optimisation: Sorting activities and trol system ensures that employees know well in
responsibilities helps management maximise advance what they are expected to do and what
people, materials, and cash. This avoids dupli are the standards of performance on the basis of
cation, and waste, and optimizes production
from limited resources, making it cost-effec which they are appraised. (Any two)
tive.
1.On-Time Completion: Efective control as
sures project completion. Identifying and
4.Goal Alignment: Organising helps match fixing absenteeism and malfunctioning ma
tasks and responsibilities to G20 Summit chinery helps the hotel fulfill its possession
goals. This helps team menmbers understand deadline.
their roles in the bigger picture, gives them
purpose and direction, and boosts motivation 2. Maintaining Quality Standards: Controlling
and commitment. is essential to quality. Despite project prob
lems, Memo Builders can maintain its excel
4. (a) The function of management identified in the lent building reputation by repairing broken
scenario is controlling. Controlling is monitoring machinery and guaranteeing adequate staff.
performance, comparing it to goals, and
correcting as needed to meet goals efficiently.