Marking Scheme

Secondary

October - November, 2000

Subject - Business Studies

(215)

Part -A

Maximum Marks 20

Answers Q.No. Answer Q.No.

Set A B C Set A B C

XXI/IS/0/1

C 1 11 30

BorD 2 12 29

D 3 13 28

B 4 14 27

B 5 15 26

C 6 16 25

B 7 17 24

C 8 18 23

A 9 19 22

A 10 20 21

C 11 21 20

D 12 22 19

C 13 23 18

D 14 24 17

B 15 25 16

B 16 26 15

B 17 27 14

A 18 28 13

D 19 29 12

B 20 30 11

B 21 31 10

A 22 32 9

B 23 33 8

C 24 34 7

C 25 35 6

B 26 36 5

D 27 37 4

A 28 38 3

B 29 39 2

A 30 40 1

B 31

B 32

A 33

C 34

C 35

D 36

C 37

D 38

B 39

D 40

(½ marks for each correct answer)

New Questions for Part A of Set B and Set C

Q.No. Answers Q.No. Answer

Set-B For Set -B Set C For Set C

1 D 31 C

2 C 32 A

3 A 33 A

4 C 34 C

5 B 35 D

6 B 36 C

7 A 37 B

8 B 38 C

9 B 39 B

10 C 40 B

pART - b

Maximum Marks : 80

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

1 - - `Social interest' is a desire on the part of people to
establish social relations and to make use of goods and
services for better social interaction. 2 2

2. 4 3 Feedback can be obtained from productspecialist. If
we find that the demand of our product is not increasing
as per our expectations, we can invite experts in the
f ield of production, product-design and development.
We then place the problem before them. The discuss the
pros and cons and finally suggest their expeert advice.
On the basis of their advice wecan improve our
product. 2 2

3 3 2 Objective of preparing Balance Sheet :

(Any two)

(i) To assess the financial position of a business on a
particular date;

(ii) to show the net capital of the proprietor of the
business on a particular date; and

(iii) to indicate the capacity of a business to continue its
business activties in future. 1×2 2

Or any other correct objective

4 2 1 Sale through automatic vendding machines is a new
technique of selling goods. These machines are used to
sell milk, cold drink and coffee as also passenger
tickets. Goods can be purchased through these
machines either by inserting coins in a slot or by use 2 2
of token. In Delhi , the Mother Dairy sells milk though
vending machines. These machines have become
popular due to the convenience of handling products
and collection pf payments.

5 10 10 (a) Merits of Small Scale business units : (Any three)

(i) Easy to start

(ii) Small amount of capital required

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

(iii) Close contact with customers

(iv) Direct supervision of employees 3×

(v) Opportunites for self-employment

(vi) Flexibility

(vii) Governemnt assistance

(b) Demerits of Samll Scale business units (Any three)

(i) Limitation of capital

(ii) Lack of technical staff

(iii) Limited ability to cope with technological
advancement

(iv) Problems of marketing. 3× 3

6 9 9 (i) Specific Law :

Sole propeietorship - No specific law

Partnership - Indian Partnership Act, 1932

(ii) Agreement :

Sole Propeietorship - No agreement

Partnership - A partnership can only exist on the
basis of an agreement.

(iii) Survival :

Sole Properietorship - Low survival chances

partnership - Greater survival chance 1×3 3

7 8 8 Any two of the following may be exaplained :

(i) Avoiding the risk

(ii) Reducing the risk

(iii) Assuming the risk

(iv) Transferring the risk 2×1 3

8 5 7 (i) Foresight :

In modern business, products, processes and market

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

conditions change quickly and success depends on
being prepred to meet future changes. An entrepreneur
should be able to forecast changes. Indeed, and
entrepreneur is always expected to see the needs for
and make changes before others in the business. He
should be prepared to adjust to changes and avail of
any new opportunities likely to arise before others do. 1

(ii) Aptitude for searching out new opportunities and
creative thinking :

An entrepreneur is a creative thinker - a man of new
and original ideas. A person who is satisfied with things
as they are, can never be a successful entreprenur.
An entreprenur has to think of new products, better
production methods, and effective marketing techniques.
Thus he is able to provide better products to the
customers at the cheaper rates. 1 3

9 7 6 Any three of the following may be descrbed :

(i) Encourages to save

(ii) Provides gudance

(iii) Provides information about saving scheme

(iv) Personal services 1×3 3

10 6 5 Right to Safety :

Cosumers have a right to be protectd agains marketing
of goods which are hazardous to health and life. The
consumer is conscious of his righ to safety. There are
many goods which are potentially hazardous such as
kerosene stove, medicines, insecticides etc. These
goods if used without taking certain precautions, may
harm the user, resulting in injury or death of the
consumer or amgaer to property. 3 3

11 15 15 Any four of the following may be explained :

(i) Nature of activity

(ii) Demand for product

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

(iii) Capital requirement

(iv) Abilities to promote

(v) Govt. support and assistance

(vi) Ability of skilled and technical manpower. 4×1 4

12 14 14 Definition of cheque :

Cheque is an instrument in writing drawn on a bank
containing an unconditional order signed by the maker,
directing the bank to pay on demand a certain sum of
money only to, or to the order of a certain person or
to the bearer of the instrument. 1

Main features of cheques : (Any six)

- it is in writing

- it contains an order to pay-it is signed by the drawer

- the order is unconditional - the amount is certain

- it contains an order to pay money and money only ×6=3 4
- it is always drawn on a specified bank

- it is always payable on demand.

13 11 13 Importance of business letter :

(i) To maintain relationship

(ii) Inexpensive and convenient mode

(iii) To create and maintain goodwill

(iv) To act as evidence

(v) For expansion of business 1×4 4

14 13 12 No. 1

Reasons : it is necessary to consider other factors also
like :

- Location of business

- Availabilty of labour

- Choice of form of orgainsation 3 4

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

15 12 11 Any four of the following laws may be stated :

(i) Industries (Deveopment & Regualtion) Act, 1951

(ii) Essential commodities Act, 1955,

(iii) The standards of Weights and Measure Act, 1956

(iv) Prevention of Food Adulteration Act, 1954,

(v) Monopolies and Restrictive Trade Practice Act, 1969,

(vi) The Consumer Protection Act, 1986 1×4 4

16 17 17 Business is a career in itself in the sense that one may
employ himself either in producing and selling goods or
rendering servics for a price. A person in search of a
career can choose from a wide range of activities
which may be undertaken as a business venture. 2

Examples :

(i) He can think of a career as a trader which involves the
purchase and sale of goods. 1

(ii) He may also engage in producing services for a price 1 5
eg. doctor treating patients in his clinic.

17 16 16 Monetary incentives :

Incentives which directly or indirectly involve payment
of reward in terms of money are called `monetary
incentives' 2

Examples : Wages and salaries, dearness allowance,

bonus, medical reimbursement, housing facility,
pension etc.

Non-monetary incentives :

Incentives which are not measurable in terms of money
are called no-moneatry incentives.

Examples : Recognition of work done, grant of higher
status, promotion , participation in management
decisions, assignment of challenging jobs etc. 2 5

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

18 19 19 Radio Advertising :

It is the medium in which messages are sent from
transmitting stations and are picked up by receiving 2
sets owned by people.

Advantage : (Any two)

(i) Wider and effective appeal 2

(ii) Slectivity

(iii) Flexibility

Limitations (Any two)

(i) No visual impact 2

(ii) Costlier

(iii) Short life and duration. 6

19 - - (i) The device is called Telex and consists of two
machines with standard typewriter keyboard to be
placed for trnsnsmission and reception of messages
at the sender's end and the receiver's end. Any
message typed on one machine is simultaneously
typed on the machine at the receiving end by
automatic process. It may be hired from the post
office on rent. 3

(ii) The device is called `Fax'. This can be used only
through the telephone line. The fax service is provided
by Telecommunication Department or MTNL. There
are various models of fax machines. It can be attached
to the telephone line after obtaining licence from the
telephone authorities on payment of the prescribed
licence fee. The replica of the matter will be instantly
reproduced by the fax machine at the receiving end. 3 6

20 - - (i) Gross profit Ratio

Gross profit = Net Sales - cost of goods sold

= 30,000 = 20,000

= 10,000

Q. No Expected Value Points For dISTRIBUTION Total

A B C EAch Step OF MARKS

3

Net Profit ×100

(ii) Net profit Ratio= ———————

Net Sales

= 3,000 × 1000

30,000 3

= 10%

Current Assets

(iii) Current Ratio= ———————

Current Liabilities

= 3 : 1 3

Liquid Assets

(iv) Liquid Ratio= ———————

Current Liabilities

Liquid Assets = Current Assets - Closing Stock

= 6,000 - 1,000

= 2.5:1 3 12

New Questions for Set B

XXI/IS/0/1 B

Q. No Expected Value Points For dISTRIBUTION Total

B EAch Step OF MARKS

Part B

1. The national image refers to the impression that people
abroad have about the nation and activites. 2 2

18 Television Advertisement is that medium of advertising
the products in which the massages are sent with audio 2
and video impact with the help of Doordarshan Kendra
and other T.V centres.

Adventages :

(i) Greater impact

(ii) Appropriate medium for illiterates

(iii) Wide coverage

(iv) Quick and better results

(Any Two) 2

Limitations :

(i) Costly medium

(ii) Limited reach 2 6

20 (i) Gross Profit Ratio =

Gross profit = Net Sales- Cost of goods sold

=60,000-40,000

=20,000

Gross profit ratio 3

(ii) Net Profit Ratio =

=10% 3

(iii) Current Ratio

Q. No Expected Value Points For dISTRIBUTION Total

Set B EAch Step OF MARKS

3

= 3:1

(iv) Liquid Ratio

Liquid Assets = Current Assets -Closing Stock

=12,000-2,000

=10,000

= 5: 2 or 2.5 :1 3 12

New Questions for Set C

XXI/IS/0/1 C

Q. No Expected Value Points For dISTRIBUTION Total

Set C EAch Step OF MARKS

4 The word 'career' generally speaking means the nature
of future employment or a way of making a livelihood
that an individual is already engaged in or can look
forward to in the future. 2 2

18 Advertising through periodicals is one of the very
important media of advertisement. Periodicals may be in
the form of magazines or journals or monthly. Journals
are generally published monthly, quaterly, bi-monthly.
Magazines cater to the reading habits of general people
whereas journals are widely used/read by professionals. 2

Advantages :

Adventages : (any two)

(i) Read carefully at leisure

(ii) Longer life

(iii) Greater appeal

(iv) High degree of selectivity

Limitations : (Any two)

(i) Lacks flexibility

(ii) Costlier

(iii) Not useful for retail advertising 2 6

20. (i) Gross Ratio =331/3% 3

(ii) Net Profit Ratio = 10% 3

(iii) Current Ratio = 3 : 1 3

(iv) Liquid Ratio 2 : 5 : 1 3 12