BANGALORE SAHODAYA SCHOOLS COMPLEX ASSOCIATION

PRE-BOARD EXAMINATION 1 (2024-2025)

Grade XII

Class: - XII SUBJECT: BUSINESS STUDIES Date: - 16.12.2024

Time: - 3hours Code – (054): SET 1 Marks: - 80
MARKING SCHEME

1. b) Social objectives 1
2. b) False 1
3. a) ROI is more than Cost of debt 1
4. b) Development function 1
5. a) Labour contractor 1
6. d) Relativity 1
7. d) Right to consumer education 1
8. d) Controlling 1
9. c) Workload analysis 1
10. a) attention to significant deviation 1
11. d) Assertion (A) is false and Reason is true. 1
12. a) True 1
13. a) Both Assertion(A) and Reason are true and Reason is the correct explanation of 1
Assertion(A).
14. b) Creating a market offering 1
15. c) Directing 1
16. c) A legal heir or a representative of a deceased consumer 1
17. a) Trading on equity 1
18. b) Depository 1
19. b) Sales promotion 1
20. d) Capital budgeting decision 1
21 a) Economic element (1/2) 3
economic environment refers to all those forces that have economic impact on thebusiness.
(1/2)
b) Social elements (1/2)
Social environment represents the customs and traditions, values, cultures, socialtrends,
beliefs, norms and ethics of the society in which business enterprises
operate. (1/2)
c) Legal element (1/2)
legal environment includes various legislations passed by the administrative ordersissued by
government authorities, court judgement as well as the decisions
rendered by various commissions and agencies at every level of the government.(1/2)
OR
a) Political element includes political conditions such as general stability and peacein the
country and specific attitudes that elected government representatives holdtowards business.
The significance of political conditions in business success lies inthe predictability of business
activities under stable political conditions. There maybe uncertainty of business activities due
to political unrest and threats to law and order.
b) Legal environment includes various legislations passed by the administrative orders issued
by government authorities, court judgement as well as the decisionsrendered by various
commissions and agencies at every level of the government.
c) Technological environment includes forces relating to scientific improvements and
innovations which provide new ways of producing goods and services and newmethods and
techniques of operating a business.

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22. No, satisfying basic physiological needs and safety or security needs does not cease 3
the motivational phenomenon. According to Maslow’s, there exists a hierarchy of
human needs, starting from basic needs to other higher-level needs. A person movesto the
next higher level of the hierarchy when the lower need is satisfied.
So, after safety or security needs, a person will aim for social or affiliation needs,
esteem needs and finally for self-actualization needs that are yet to be fulfilled.
OR
a) Basic physiological needs
b) Financial and non- financial incentives
c) Customer satisfaction and Kindness

23. FACTORS AFFECTING CHOICE OF CAPITAL STRUCTURE 3

1. Cash flow position
2. interest coverage Ratio
3. Debt service coverage ratio
4. Return on investment
5. Cost of Debt
6. Tax rate
7. Cost of equity
8. Flotation costs
9. Risk consideration
10. Flexibility
11. Control
12. Regulatory framework
13. Stock market conditions
14. Capital structure of other companies(Any
three with explanation)
24. Yes, I do agree that the study of business environment helps the firm in many ways.The 3
importance of business environment will help to understand the same.
1. It enables the firm to identify opportunities and getting the first mover
advantage.
2. Helps the firm to identify threats and early warning signals.
3. Helps in tapping useful resources
4. Helps in coping up with rapid changes
5. Helps in assisting in planning and policy formulation
6. Helps in improving performance (Any
three points with explanation)
25. The concept discussed in the case is Coordination.FEATURES OF 4
COORDINATION
1. Coordination integrates group efforts
2. Coordination ensures unity of action
3. Coordination is a continuous process
4. Coordination is an all pervasive function
5. Coordination is the responsibility of all managers
6. Coordination is a deliberate function(Any
four features with explanations)
26. IMPORTANCE OF TRAINING TO THE EMPLOYEES 4
1. Career growth
2. Increased earnings
3. Safety of employees
4. High morale

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 OR
METHODS OF TRAINING
1. Induction training
2. Vestibule training
3. Apprenticeship training
4. Internship training
(1/2 marks for sub-heading and ½ marks for explanation
27. Leadership is the process of influencing the behaviour of people towardsachievement of 4
organisational goals. (1 mark)
Leadership styles
1. Autocratic or authoritative leadership
An autocratic leader gives order and expects his subordinates to obey those orders.The
leader centralizes all decision- making power and exercises complete control over his
subordinates. Communication is only one way where subordinates have to act according to
the command given by the manager. (1)
2. Democratic or participative leadership
A democratic leader develops action plan and makes decisions in consultation withhis
subordinates. It encourages them to participate in decision-making and to give
suggestions in setting goals. This style of leadership is most common now-a-days asleaders
also recognize that people perform best if they have set their own objectives. (1)
3) Laissez Faire or free rein leadership
Free rein leader does not believe in the use of power unless it is absolutely
essential. The followers are given high level of independence and freedom to formulate
their own objectives and ways to achieve them. The group memberswork on their own
tasks and resolve the issues themselves. (1)

28. No, I do not agree to the statement. Controlling is equally important as planningand other 4
functions are. This can be proven with the importance of controlling.

IMPORTANCE OF CONTROLLING
1. Accomplishing organisational goals
2. Judging accuracy of standards
3. Making efficient use of resources
4. improving employee motivation
5. Ensuring order and discipline
6. Facilitating coordination in action(Any
four with explanation)
OR
PROCESS OF CONTROLLING
1. Setting performance standard
2. Measurement of actual performance
3. Comparison of actual performance with standards
4. Analyzing deviations
5. Taking corrective actions
29. Basis Single use plan Standing plan 4
Meaning Single use plans refer to plans Standing plan refer to plans,
formulated to meet the which are used for activities
requirement of a particular that occur regularly over a
period of time.

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 situation and to accomplish
specific objectives
Objectives They are developed for activities They are developed for
which are not likely to be activities which are of
repeated in future. recurring nature.
Period For a short period For a long period
Stability Less stable as they are discarded Relatively stable as they are
after use. used over and over again.
Scope Narrow scope as they are Wide scope as they involve
formulated to fit the specific more than one department of
situation business functions
Example Cash budget Procedure for processing an
order
(Any four)
30. MARKETING MANAGEMENT PHILOSOPHIES 4
1. Production concept- large scale production to reduce the cost
2. Product concept- Quality, performance and features of the product
3. Selling concept- Selling existing product through aggressive selling and
promotional efforts.
4. Marketing concept- Satisfaction of customers’ needs
5. Societal marketing concept- Satisfaction of customers’ needs and society’s well-
being.
(Any four with explanation)
31. FUNCTIONS OF STOCK EXCHANGE 6
1. Providing liquidity and marketability to existing securities
2. Pricing of securities
3. Safety of transaction
4. Contribution to economic growth
5. Spreading of equity cult
6. Providing scope for speculation.
(Sub-heading ½ marks and explanation ½ marks)

32. IMPORTANCE OF DECENTRALISATION 6

1. Develop initiative among subordinates
2. Develop managerial talent for the future
3.Quick decision making
4. Relief to top management
5. Facilitates growth
6. Better Control
OR
IMPORTANCE OF DELEGATION
1. Effective management
2. Employee development
3. Motivation of employee
4. Facilitation of growth
5. Basis of management hierarchy
6. Better coordination
(1/2 mark for subheading and ½ marks for explanation)
33. PRINCIPLES OF MANAGEMENT 6

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 1. Equity
2. Order
3.Division of work 4.Unity
of command
5. Centralisation and Decentralisation
6. Remuneration of employees
(1/2 marks for identification and ½ marks for explanation)
34. FACTORS AFFECTING PRICE DETERMINATION 6
1. Product cost
2. Utility and demand of the product
3. Extent of competition in the market
4. Government and legal regulations
5. Pricing objectives
(1/2 marks for heading and ½ marks for explanation)

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