Series AB1CD/2 SET~3

Q.P. Code 66/2/3

Roll No.
narjmWu àíZ-nÌ H$moS> >H$mo CÎma-nwpñVH$m Ho$
_wI-n¥ð >na Adí` {bIo§ &
Candidates must write the Q.P. Code on
the title page of the answer-book.

ZmoQ> / NOTE :
(i) H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _o§ _w{ÐV n¥ð>
7 h¢ &
Please check that this question paper contains 7 printed pages.
(ii) àíZ-nÌ _| Xm{hZo hmW H$s Amoa {XE JE àíZ-nÌ H$moS H$mo narjmWu CÎma-nwpñVH$m Ho$ _wI-n¥ð> na
{bI| &
Q.P. Code given on the right hand side of the question paper should be written
on the title page of the answer-book by the candidate.
(iii) H¥$n`m Om±M H$a b| {H$ Bg àíZ-nÌ _| >12 àíZ h¢ &
Please check that this question paper contains 12 questions.
(iv) H¥$n`m àíZ H$m CÎma {bIZm ewê$ H$aZo go nhbo, CÎma-nwpñVH$m _| àíZ H$m H«$_m§H$ Adí`
{bI| &
Please write down the serial number of the question in the
answer-book before attempting it.
(v) Bg àíZ-nÌ 15 {_ZQ >H$m g_` {X`m J`m h¡ & àíZ-
10.15 ~Oo {H$`m OmEJm & 10.15 ~Oo go 10.30 ~Oo VH$ N>mÌ Ho$db àíZ-
Ad{Y Ho$ Xm¡amZ do CÎma-nwpñVH$m na H$moB© CÎma Zht {bI|Jo &
15 minute time has been allotted to read this question paper. The question
paper will be distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the
students will read the question paper only and will not write any answer on the
answer-book during this period.

ì`mdgm{`H$ AÜ``Z
BUSINESS STUDIES
:2 : 40
Time allowed : 2 hours Maximum Marks : 40

66/2/3 Page 1 P.T.O.

 :
:
(i) 12
(ii) 1 4, 2
30 50
(iii) 5 8, 3
50 80
(iv) 9 12, 5
80 120
(v) 3 1 5
2
(vi) /

1. H¡$go à~§Y H$m`© {Z`§ÌU H$_©Mm[a`m| H$mo A{^ào[aV H$aVm h¡ VWm CÝh| ~ohVa {ZînmXZ XoZo _|
ghm`Vm H$aVm h¡ ? CëboI H$s{OE & 2

2. {ZarjU H$aZo Ho$ {bE gyMZm _m±JZm, nyN>VmN> H$aZm VWm eo`a ~mµOma Ed§ _Ü`ñWm| H$m
boImnarjU (Am°{S>Q>) H$aZm ^maVr` à{V^y{V Ed§ {d{Z_` ~moS>© Ûmam {Zînm{XV EH$ H$m`©
h¡ &
Bg dJ© Ho$ {H$Ýht Xmo AÝ` H$m`m] H$m CëboI H$s{OE & 2

3. nXmoÞ{V g§JR>Z _| Zd aº$ Ho$ gpå_lU H$mo amoH$Vm h¡ & naÝVw, BgH$m Cn`moJ A^r ^r
AmÝV[aH$ ê$n go [a{º$`m| H$mo ^aZo Ho$ EH$ AÀN>o òmoV Ho$ ê$n _o| {H$`m OmVm h¡ & BgHo$ {bE
{H$Ýht Xmo H$maUm| H$m CëboI H$s{OE & 2

4. {Z`w{º$H$aU _mZd g§gmYZm| Ho$ gdm}Îm_ Cn`moJ H$mo gw{ZpíMV H$aVm h¡ & {H$Ýht Xmo {~ÝXþAm|
Ho$ Ûmam Bg H$WZ H$m Am¡{MË` ñnîQ> H$s{OE & 2

5. àmW{_H$ ~mµOma _| AñWm`r ny±Or (âbmoQ>oeZ) Ho$ ZE {ZJ©_Z H$s {d{Y`m| Ho$ ê$n _| {ZOr
{Z`moOZ `m {d{Z`moOZ VWm H$mo g_PmBE & 3

66/2/3 Page 2
General Instructions :
Read the following instructions very carefully and strictly follow them :
(i) This question paper contains 12 questions.
(ii) Questions Number 1 4 are of 2 marks. These are Short Answer Type
Questions and are to be answered in 30 50 words.
(iii) Questions Number 5 8 are of 3 marks. These are Short Answer Type
Questions and are to be answered in 50 80 words.

(iv) Questions Number 9 12 are of 5 marks. These are Long Answer Type
Questions and are to be answered in 80 120 words.
(v) There is no overall choice in the question paper. However, internal choice
has been given in 1 question of 3 marks and 2 questions of 5 marks.
(vi) This question paper contains Case/Source Based questions.

1.
and help them in giving better performance ? State. 2

2. Calling for information by undertaking inspection, conducting enquiries

and audits of stock exchanges and intermediaries
by Securities and Exchange Board of India.

State any two other functions of the same category. 2

3.
still being used as a good source of filling the vacancies internally. State
any two reasons for the same. 2

4. .
statement by giving any two points. 2

5. -
issues in the primary market. 3

66/2/3 Page 3 P.T.O.

6. Cg à{H«$`m H$m Zm_ VWm AW© Xr{OE Omo AmOr{dH$m-CÝ_wIr h¡ VWm {OgH$mo H$_©Mm[a`m| Ho$
m H$aZo VWm CZH$s g§^m{dV j_VmAm|
dmñV{dH$Vm Ho$ {bE {S>µOmBZ {H$`m OmVm h¡ & 3

7. VZwlr EH$ ~hþamîQ´>r` H$ånZr _| H$m`©aV h¡ & H$ånZr _| g^r CgHo$ {ZînmXZ H$s gamhZm
H$aVo h¢ & EH$ àmoËgmhZ Ho$ ê$n _|, H$ånZr Zo Cgo H$ånZr Ho$ A§em| H$mo ~mµOma _yë` go H$_
_yë` na IarXZo H$m àñVmd {X`m & 3
(H$) VZwlr H$mo àñVm{dV àmoËgmhZ H$m Zm_ VWm AW© Xr{OE &
(I) Bg àH$ma Ho$ {H$Ýht Xmo AÝ` àmoËgmhZm| H$m CëboI H$s{OE &

8. (H$) ZoV¥Ëd ? {H$Ýht Xmo ZoV¥Ëd e¡{b`m| H$m CëboI H$s{OE & 3
AWdm
(I) à~§Y Ho$ {Z`§ÌU H$m`© H$s à{H«$`m Ho$ ApÝV_ Xmo MaUm| H$m CëboI H$s{OE & 3

9. (H$) Cn^moº$m g§ajU A{Y{Z`_, 2019 Ho$ àmdYmZm| Ho$ AÝVJ©V CnbãY EH$ Cn^moº$m
Ho$ {ZåZ{b{IV A{YH$mam| H$mo g_PmBE : 5
(i) gyMZm H$m A{YH$ma
(ii) {eH$m`V H$m A{YH$ma
AWdm
(I) (i) Cn^moº$m g§ajU A{Y{Z`_, Ho$ AZwgma Cn^moº$m H$m AW© Xr{OE &
2019
(ii) amÁ`
H$_reZ VWm amï´>r` H$_reZ _| Om gH$Vm h¡ & 5

10. {dÎmr` ~mµOma H$m ? {dÎmr` ~mµOma Ho$ {H$Ýht Mma H$m`m] H$m CëboI H$s{OE &
1+4=5

11. amhþb Zo hmb hr _| AnZr ~r.Q>oH$. nyU© H$s h¡ VWm BÝdQ>©am| H$m CËnmXZ H$aZo dmbr EH$
AJ«Ur H$ånZr _| nX J«hU {H$`m h¡ & ~mµOma Ho$ 70% ^mJ na H$ãOm H$aZo Ho$ {bE H$ånZr
gmoba BÝdQ>©am| Ho$ CËnmXZ _| àdoe H$aZo H$s `moOZm ~Zm ahr h¡ & Bg bú` H$s àm{ßV hoVw
Bgo à{e{jV H$m`©~b H$s Amdí`H$Vm h¡ & _mZd g§gmYZ à~§YH$ Zo amhþb go g§JR>Z H$mo
à{e{jV H$m`©~b go hmoZo dmbo {H$Ýht nm±M bm^m| H$s H$maU g{hV gyMZm XoZo Ho$ {bE
H$hm & g§JR>Z H$mo à{e{jV H$m`©~b Ho$ bm^ Ho$ {H$Ýht nm±M {~ÝXþAm| H$m CëboI H$s{OE
Omo amhþb Zo AnZo CÎma _| _mZd g§gmYZ à~§YH$ H$mo ^oOo hm|Jo & 5

66/2/3 Page 4
6. Name and give the meaning of the process which is career-oriented and
designed to help the employees in the progress towards maturity and
actualisation of their potential capabilities. 3

7. Tanushree is working in a multinational company. Her performance is

appreciated by everyone in the company. As an incentive, the company
offered her to buy the shares of the company at a price that is less than
the market price. 3
(a) Name and give the meaning of the incentive offered to Tanushree.
(b) State any two more incentives of the same type.

8. (a) 3
OR

(b) State t
management. 3
9. (a) Explain the following rights of a consumer provided under The
Consumer Protection Act, 2019 : 5
(i) Right to be Informed
(ii) Right to be Heard
OR
(b) (i) Give the meaning of a consumer as per the Consumer
Protection Act, 2019.
(ii)

party. 5

10. State any four functions of

1+4=5

11. Rahul has just completed his B.Tech. and joined a leading company
manufacturing inverters. To capture 70% of the market share, the
company is planning to enter into the manufacturing of solar inverters.
To achieve this target it requires trained workforce. The Human
Resource Manager asked Rahul to give any five benefits to the
organisation, with reasons, for training the workforce. State the five
points of benefits of trained workforce to the organisation that might
have been sent by Rahul in his reply to the Human Resource Manager. 5

66/2/3 Page 5 P.T.O.

12. (H$) gm{hb {ZQ>{d`a {b{_Q>oS> H$m {dÎm à~§YH$ h¡ & H$ånZr D$Zr dñÌm| Ho$ CËnmXZ _|
g§b½Z h¡ & H$ånZr Ho$ CËnmXm| H$s _m±J _m¡g_r h¡, O~{H$ CËnmXZ nyao df© Mmby ahVm
h¡ & BgHo$ CËnmXm| H$s JwUdÎmm Ho$ H$maU H$ånZr Ho$ ì`dgm` H$m \¡$bmd gånyU© Xoe

CÎmar, X{jUr, nydu VWm npíM_r ^maV _| h¢ & BgHo$ àË`oH$ g§^mJ H$m {ZînmXZ
a{hV CnbãYVm Ho$ {bE H$ånZr

VWm J«mhH$m| Ho$ A{V-Amdí`H$ AmXoem| H$mo nyam H$aZo Ho$ {bE H$ånZr H$mo V¡`ma
CËnmXm| Ho$ n`m©ßV ñQ>m°H$ H$s ^r Amdí`H$Vm h¡ &

Cn`w©º$ MMm© H$mo Ü`mZ _| aIVo hþE {ZQ>{d`a {b{_Q>oS> H$s H$m`©erb nyO± r
Amdí`H$Vm H$mo à^m{dV H$aZo dmbo nm±M H$maH$m| H$m CëboI H$s{OE & 5
AWdm
(I) A{^foH$ B§Or{Z`[a¨J
{b{_Q>oS> Q´>H$ {d{Z_m©U Ho$ ì`dgm` _| àdoe H$aZm MmhVr h¡ & BgHo$ {bE, {dÎm
à~§YH$ H$mo O~ ^r Amdí`H$Vm hmo, YZ H$s CnbãYVm VWm BgHo$ g§^m{dV òmoVm|
H$mo gw{ZpíMV H$aZm hmoVm h¡ & Cgo XoIZm hmoVm h¡ {H$ H$ånZr AZmdí`H$ ê$n go
H$mof EH${ÌV Zht H$ao & Bg àH$ma Cgo H$mof Amdí`H$Vm VWm CgH$s CnbãYVm H$m
{_bmZ H$aZm hmoVm h¡ &
(i) Cn`w©º$ AZwÀN>oX _| M{M©V Cg AdYmaUm H$s nhMmZ H$s{OE VWm BgH$m
AW© Xr{OE Omo {dÎm à~§YH$ H$mo CgHo$ bú`m| H$mo nyam H$aZo _| ghm`Vm
H$aoJr &
(ii) Cn`w©º$ (i) _| nhMmZ H$s JB© AdYmaUm Ho$ _hÎd Ho$ {H$Ýht VrZ {~ÝXþAm|
H$m CëboI ^r H$s{OE & 5

66/2/3 Page 6
12. (a) Sahil is the Finance M . The company is
engaged in the manufacturing of woolen clothes. The demand of
the
continues throughout the year. Due to the quality of its products,

company is operating at a large scale having its regional offices in

Northern, Southern, Eastern and Western India. The performance
of its each division is of very high level. For uninterrupted
availability of raw materials, the company requires high stock
levels. Not only this, to face the competition and to meet the urgent
orders of the customers, the company also needs enough stock of
finished goods.

Considering the above discussion, state five factors affecting

working 5
OR

(b) Abhishek Engineering Ltd. , a leading manufacturer of steel rods

wants to enter into the business of manufacturing trucks. For this,
the Finance Manager has to ensure the availability of funds
whenever required and its possible sources. He has to see that the
company does not raise funds unnecessarily. In this way he has to
match the funds requirement and their availability.

(i) Identify and give the meaning of the concept discussed in

the above para which will help the Finance Manager to
achieve his objectives.

(ii) Also, state any three points of importance of the concept

identified in (i) above. 5

66/2/3 Page 7 P.T.O.

 Strictly Confidential: (For Internal and Restricted use only)
Senior Secondary School Term II Examination, 2022
Marking Scheme – BUSINESS STUDIES (SUBJECT CODE – 054)
(PAPER CODE – 66/2/3)

General Instructions: -

1. You are aware that evaluation is the most important process in the actual and
correct assessment of the candidates. A small mistake in evaluation may lead
to serious problems which may affect the future of the candidates, education
system and teaching profession. To avoid mistakes, it is requested that before
starting evaluation, you must read and understand the spot evaluation
guidelines carefully.

2. “Evaluation policy is a confidential policy as it is related to the

confidentiality of the examinations conducted, Evaluation done and
several other aspects. Its leakage to public in any manner could lead to
derailment of the examination system and affect the life and future of
millions of candidates. Sharing this policy/document to anyone,
publishing in any magazine and printing in News Paper/Website etc may
invite action under IPC.”

3. Evaluation is to be done as per instructions provided in the Marking Scheme.

It should not be done according to one’s own interpretation or any other
consideration. Marking Scheme should be strictly adhered to and religiously
followed. However, while evaluating, answers which are based on latest
information or knowledge and/or are innovative, they may be assessed
for their correctness otherwise and marks be awarded to them.

4. The Head-Examiner must go through the first five answer books evaluated by
each evaluator on the first day, to ensure that evaluation has been carried out
as per the instructions given in the Marking Scheme. The remaining answer
books meant for evaluation shall be given only after ensuring that there is no
significant variation in the marking of individual evaluators.

5. Evaluators will mark( √ ) wherever answer is correct. For wrong answer ‘X”
be marked. Evaluators will not put right kind of mark while evaluating which
gives an impression that answer is correct and no marks are awarded. This is
most common mistake which evaluators are committing.

1
6. If a question has parts, please award marks on the right-hand side for each
part. Marks awarded for different parts of the question should then be totaled
up and written in the left-hand margin and encircled. This may be followed
strictly.

7. If a question does not have any parts, marks must be awarded in the left-hand
margin and encircled. This may also be followed strictly.

8. If a student has attempted an extra question, answer of the question deserving

more marks should be retained and the other answer scored out.

9. No marks to be deducted for the cumulative effect of an error. It should be

penalized only once.

10. A full scale of 0-40 marks as given in Question Paper) has to be used. Please
do not hesitate to award full marks if the answer deserves it.

11. Every examiner has to necessarily do evaluation work for full working hours
i.e. 8 hours every day and evaluate 30 answer books per day in main subjects
and 35 answer books per day in other subjects (Details are given in Spot
Guidelines).This is in view of the reduced syllabus and number of questions
in question paper.

12. Ensure that you do not make the following common types of errors committed
by the Examiner in the past:-
• Leaving answer or part thereof unassessed in an answer book.
• Giving more marks for an answer than assigned to it.
• Wrong totaling of marks awarded on a reply.
• Wrong transfer of marks from the inside pages of the answer book to the
title page.
• Wrong question wise totaling on the title page.
• Wrong totaling of marks of the two columns on the title page.
• Wrong grand total.
• Marks in words and figures not tallying.
• Wrong transfer of marks from the answer book to online award list.

2
 • Answers marked as correct, but marks not awarded. (Ensure that the right
tick mark is correctly and clearly indicated. It should merely be a line.
Same is with the X for incorrect answer.)
• Half or a part of answer marked correct and the rest as wrong, but no marks
awarded.

13. While evaluating the answer books if the answer is found to be totally
incorrect, it should be marked as cross (X) and awarded zero (0)Marks.

14. Any unassessed portion, non-carrying over of marks to the title page, or
totaling error detected by the candidate shall damage the prestige of all the
personnel engaged in the evaluation work as also of the Board. Hence, in order
to uphold the prestige of all concerned, it is again reiterated that the
instructions be followed meticulously and judiciously.

15. The Examiners should acquaint themselves with the guidelines given in the
Guidelines for spot Evaluation before starting the actual evaluation.

16. Every Examiner shall also ensure that all the answers are evaluated, marks
carried over to the title page, correctly totaled and written in figures and
words.

17. The Board permits candidates to obtain photocopy of the Answer Book on
request in an RTI application and also separately as a part of the re-evaluation
process on payment of the processing charges.

3
 MARKING SCHEME
Senior Secondary School Examination TERM–II, 2022
BUSINESS STUDIES (Subject Code–054)
[ Paper Code: 66/2/3]
Maximum Marks: 40
Q. Marks
EXPECTED ANSWER / VALUE POINTS
No.
1. Q. How does ‘Controlling’ function of management
motivate the employees and help them in giving better
performance? State.

Ans. Controlling helps in improving employees’ motivation as:

• the employees know well in advance what they are

expected to do and
2 marks
• the basis on which they will be appraised.

This helps them to give better performance.

2. Q. Calling for information by undertaking inspection,

conducting enquiries and audits of stock exchanges and
intermediaries’ is a function performed by Securities and
Exchange Board of India. State any two other functions of
the same category.

Ans.
Two other Regulatory functions of Securities and Exchange
Board of India are (Any two):

(i) It registers brokers and sub brokers and other players in the
market.

(ii) It registers collective investment schemes and mutual

funds.
(iii) It regulates stock brokers, portfolio exchanges,
underwriters and merchant bankers.

4
 (iv) It regulates takeover bids by companies. 1x2

(v) It levies fee or other charges for carrying out the purposes =
of the Act.
2 marks
(vi) It performs and exercises such powers under Securities
Contract (Regulation) Act 1956 as may be delegated by the
government of India.

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

3. Q. ‘Promotion stops infusion of new blood in the

organisation.’ However it is still being used as a good
source of filling the vacancies internally. State any two
reasons for the same.

Ans. Reasons for filling vacancies through internal sources/

promotion: (Any two)

(i) Motivate employees as promotion at a higher level may lead

to a chain of promotions at lower levels in the organisation.

(ii) Simplify the process of selection as the candidates are 1x2

already known to the organisation.

(iii) No need for induction training as the employees are =

already familiar with the organisation.
2 marks
(iv) Help in adjustment of surplus staff in those departments
where there is shortage of staff.

(v) Economical source of recruitment.

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

5
4. Q. Staffing ensures optimum utilisation of human resources
Justify the statement by giving any two points.

Ans. Staffing ensures optimum utilisation of human resources

by:
1x2
(i) Avoiding overmanning, it prevents under-utilisation of =
personnel and high labour costs
2 marks
(ii) Avoids disruption of work by indicating in advance the
shortages of personnel.

5. Q. Explain ‘Private Placement’ and ‘e-IPOs’ as methods of

floatation of new issues in the primary market.

Ans.

Private Placement

• It refers to the allotment of securities by a company to

institutional investors and some selected individuals. 1½ marks

• It helps to raise capital more quickly and economically

than a public issue.
+
E-IPO

• It refers to issuing securities through the online system of

stock exchange in which the company enters into an
agreement with the stock exchange. 1½ marks

=
• SEBI registered brokers, registrar to the issue are
appointed and the lead manager co-ordinates the
activities amongst the intermediaries connected with the
issue. 3 marks

6. Q. Name and give the meaning of the process which is

career-oriented and designed to help the employees in the

6
 progress towards maturity and actualisation of their
potential capabilities.

Ans.

The process which is career-oriented and designed to help the 1 mark for
employees in the progress towards maturity and actualisation of naming
their potential capabilities is Development.
+
• It is the process by which the employees acquire skills
and competencies for handling higher jobs in future. 2 marks for
meaning

• It covers not only those activities which improve job =

performance but also those which bring about growth of 1+2
the personality. =
3 marks

7. Q. Tanushree is working in a multinational company. Her

performance is appreciated by everyone in the company. As
an incentive, the company offered her to buy the shares of
the company at a price that is less than the market price.

(a) Name and give the meaning of the incentive offered to

Tanushree.

(b) State any two more incentives of the same type.

1 mark for
Ans. The incentive offered to Tanushree by the company was naming the
Co-partnership/ Stock option. incentive
+
It is an incentive under which the employees are 1 mark for
offered company shares at a set price which is lower meaning
than market price.

Two more incentives of the same type are: (Any two) +

(i) Pay and allowances which includes basic pay, dearness

allowance and other allowances

7
 (ii) Productivity linked wage incentive involves linking (½ mark for
payment of wages of employees to the increase in their stating each
incentive
productivity at individual or group level. =
1/2 x 2 = 1
(iii) Bonus involves offering an amount of funds over and mark)
above the wages/ salary to the employees. =
1+1+1
=
(iv) Profit Sharing involves providing a share in the 3 marks
profits of the organization to employees.

(v) Retirement Benefits include benefits such as

provident fund, pension and gratuity that provide
financial security to employees after their retirement.

(vi) Perquisites include incentives such as car

allowance, housing, medical aid and education to the
children etc., which are offered over and above the
salary.

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

8. (a) What is meant by ‘leadership’? State any two leadership

styles.

1 mark for
Ans. Leadership is the process of influencing people so that meaning
they strive willingly and enthusiastically towards the
achievement of group goals.
+
(Or any other correct meaning)

The various leadership styles are: (Any two)

1 mark for
(i) Autocratic or Authoritarian leadership style in which an stating each
leadership
autocratic leader gives orders and insists that they are obeyed.
style

8
He does not give the subordinates any freedom to influence his =
decision. 1x2
=
2 marks
(ii) Democratic or Participative leadership style in which the =
democratic leader favours decision making by the group and 1+2
allows them (subordinates) to become part of the team and =
helps leaders (seniors) to make better decisions.
3 marks
(iii) Laissez Faire or Free –rein leadership style in which the
leader gives complete freedom to the subordinates and depends
largely upon the group to establish its own goals and work out
its own problems.

(Or any other explanation which clarifies the meaning of OR

leadership styles)

OR

(b) State the last two steps in the process of ‘Controlling’

function of management.

Ans. The last two steps in the process of ‘Controlling’ function

of management are:

(i) Analysing deviations

Deviations are analysed for their causes through Critical Point

Control and Management by Exception.

• Critical Point Control focuses on control of Key Result

Areas which are critical to the success of the
organisation. 2 marks

• Management by exception is 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 the management.

9
 (ii) Taking corrective action

• Corrective action is taken if deviations go beyond the

acceptable limits. 1 mark

• In case the deviation cannot be corrected through

managerial action, the standards may have to be revised. =

3 marks

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

9. Q. Explain the following rights of a consumer provided

under The Consumer Protection Act, 2019:
(i) Right to be Informed
(ii) Right to be Heard

Ans.

(i) Right to be informed:

• The consumer has a right to have complete information

about the product he intends to buy such as, ingredients, date 2½
of manufacture, price, quantity etc. marks

• It is because of this reason that the legal framework in India

requires the manufacturers to provide such information on +
the package and label of the product.

(ii) Right to be heard:

2½
• The consumer has right to file a complaint and to be heard in marks
case of dissatisfaction with a product or a service. =
5 marks
• It is because of this reason many firms have set up their own
consumer service and grievance cells. OR

OR

10
 (b) (i) Give the meaning of a consumer as per the Consumer
Protection Act, 2019.
(ii) State when can a grievance be directly redressed in
‘State Commission’ and ‘National Commission’ by the
aggrieved party.

(i) Under the Consumer Protection Act 2019:

• A consumer is a person who buys any goods or avails

services for a consideration, which has been paid or
promised, or partly paid and partly promised, or under any
scheme of deferred payment. 3 marks
• It includes any user of such goods or beneficiary of
services if such use is made with the approval of the buyer.
• It applies to both offline and online transactions through +
electronic means or by teleshopping or direct selling or
multilevel marketing.

(ii) A grievance be directly redressed in ‘State Commission’

where value of goods and services paid as consideration 1 mark
exceeds one crore but does not exceed ten crore rupees

+
A grievance be directly redressed in ‘National Commission’
where the value of goods or services paid as consideration
1 mark
exceeds ₹ 10 crores.
=
3+1+1
=
5 marks

10. Q. What is meant by ‘Financial Market’? State any four

functions of ‘Financial Market’.

11
 Ans. Financial Market is the market for the creation and
exchange of financial assets.
1 mark
for the
meaning
Functions of financial market:
+
(i) It mobilises savings and channelises them into most
productive use by facilitating transfer of savings from savers to
investors.

(ii) It facilitates price discovery for financial assets by

interaction of forces of demand and supply.
1x4
(iii) It provides liquidity to financial assets as the securities can =
be easily converted into cash. 4 marks
=
(iv) Reduces cost of transactions as it helps to save time, effort 1+4
and money that both buyers and sellers of a financial asset =
would have to otherwise spend to try and find each other. 5 marks
(If an examinee has only listed the points, ½ mark for each
point should be awarded)

11. Q. Rahul has just completed his B.Tech. and joined a

leading company manufacturing inverters. To capture 70%
of the market share, the company is planning to enter into
the manufacturing of solar inverters.
To achieve this target it requires trained workforce. The
Human Resource Manager asked Rahul to give any five
benefits to the organisation, with reasons, for training the
workforce. State the five points of benefits of trained
workforce to the organisation that might have been sent by
Rahul in his reply to the Human Resource Manager.

12
 Ans. Benefits of training to the organisation that might have
been sent by Rahul in his reply to the Human Resource
Manager:
1x5
(i) It avoids wastage of efforts and money as training is =
systematic learning, better than hit and trial methods. 5 marks

(ii) It enhances employee productivity both in terms of quantity

and quality leading to higher profits.

(iii) It equips the future manager to take over in an emergency.

(iv) It reduces employees’ turnover as it increases employee

morale and reduces absenteeism.

(v) It helps in obtaining effective response in a fast changing

environment

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

12. (a) Sahil is the Finance Manager of ‘Knitwear Ltd’ . The

company is engaged in the manufacturing of woolen
clothes. The demand of the company’s products is seasonal
whereas the production continues throughout the year. Due
to the quality of its products, the company’s business is
spreading across the country. The company is operating at
a large scale having its regional offices in Northern,
Southern, Eastern and Western India. The performance of
its each division is of very high level. For uninterrupted
availability of raw materials, the company requires high
stock levels. Not only this, to face the competition and to
meet the urgent orders of the customers, the company also
needs enough stock of finished goods.

Considering the above discussion, state five factors

affecting working capital requirements of ‘Knitwear Ltd.’.

13
Ans. Factors affecting working capital requirements of
‘Knitwear Ltd.’:

(i) Nature of business affects working capital requirement as

trading organisation requires smaller amounts of working
capital than manufacturing organisations as there is no
processing. Service industries require less working capital as
they do not have to maintain inventory.

1x5
(ii) Scale of operations affects working capital requirement as
=
firms operating on a higher scale require more working capital 5 marks
as their quantum of inventory and debtors is generally high.

(iii) Seasonal factors affects working capital requirement as

peak season requires higher working capital than lean season
due to higher level of activity.

(iv) Free and continuous availability of raw materials enables

the firms to keep lesser stock and hence work with smaller
working capital.

(v) Level of competition affects working capital requirement as

higher competition requires larger stocks to meet urgent orders
from customers and thus higher working capital

(If an examinee has only listed the points, ½ mark for each
point should be awarded)

OR
OR

(b) Abhishek Engineering Ltd. , a leading manufacturer of

steel rods wants to enter into the business of manufacturing
trucks. For this, the Finance Manager has to ensure the
availability of funds whenever required and its possible
sources. He has to see that the company does not raise
funds unnecessarily. In this way he has to match the funds
requirement and their availability.

14
(i) Identify and give the meaning of the concept discussed in
the above para which will help the Finance Manager to
achieve his objectives.

(ii) Also, state any three points of importance of the concept

identified in (i) above.

Ans. The concept discussed in the above para is Financial

Planning.

1 mark
for
The process of estimating the fund requirements of a business identifying
and specifying the sources of funds is called financial planning.
+
Or

Financial planning is the preparation of a financial blueprint of

1 mark
an organisation’s future operations. for
meaning
Importance of Financial planning: (Any three)

(i) It helps the company to prepare for the future.

(ii) It helps in avoiding business shocks and surprises.

(iii) It helps in co-ordinating various business functions. +

1 mark for
(iv) It helps in reducing waste, duplication of efforts, gaps in each
planning and confusion. statement
=
1x 3
(v) It links the present with the future. =
3 marks
(vi) It provides a link between investment and financing =
decisions. 1+1+3
=
5 marks
(vii) It makes evaluation of actual performance easier by
spelling out detailed objectives for various business segments.

15
(If an examinee has only listed the points, ½ mark for each
point should be awarded)

16