ISC Class 12th Business Studies Exam 2024 : Most Important Question with Solution

ISC Class 12th exams are going on and your Business Studies paper is on 28th February 2024. Now you have only a few hours left for your Business Studies exam.

So we've introduced you to the best last-minute revision tool – the most important questions! These specially crafted questions are designed to give you a quick and effective revision session just before your exam. For you, these marking-wise questions are your reliable companions.

In this, every important question is sorted and collected, which is very important for your paper, so that the student can score good marks in less time. Answers to all the questions have been given together.

ISC 12th Business Studies Exam 2024 Most Important Question

Question 1

(i) Two-thirds of employees at Saturn Hotel are employed full-time. The remaining one third of employees are working on a regular basis but for lesser hours than the full-time staff.

Name the emerging trend in human resources used by Saturn Hotel.

Ans: Flexible working hours or part-time work.

(ii) Which characteristic of Human Resource Management states that it is inherent in all organisations and at all levels?

Ans: Universality

(iii) Morale is the attitude of staff towards work, co-employees and the organisation. In this context, what does 'friction among employees' indicate?

Ans: Conflict or disagreement between employees.

(iv) Expand CRISIL

Ans: Credit Rating Information Services of India Limited.

(v) ___________ incentives of motivation are tangible and measurable.

Ans: Tangible

(vi) The maximum number of members that a Private Limited Company can have is _________.

Ans: 200

(vii) On the basis of ___________, communication may be classified as formal and informal.

Ans: Formality

(viii) appraisal evaluates the latent capacity of an employee.

Ans: Performance appraisal

(ix) Identify the terminal benefit paid to an employee who leaves the employment either after working for the specified number of years or on superannuation.

(a) Provident Fund
(b) Public Provident Fund
(c) Voluntary Retirement Scheme
(d) Gratuity

Ans: (d) Gratuity

(x) There was a major fire at the warehouse of Anil Auto Ltd. The management of the warehouse asked the Supervisor to investigate this incident and submit a report of the same. Which one of the following types of report does the Supervisor need to write?

(a) A Routine report
(b) A Public Report
(c) An Informative Report
(d) An Interpretative Report

Ans: (c) An Informative Report

(xi) Falguni wants to buy some wood for the furniture manufacturing unit of her company. She decides to write letters to various timber merchants to know the prices and availability of different kinds of wood.

Identify the type of letter that Falguni needs to write to the timber merchants.

(a) An enquiry letter
(b) A complaint letter
(c) A quotation letter
(d) An order letter

Ans: (a) An enquiry letter

(xii) Assertion: Maintenance factors are required to support the mental health of employees.

Reason: Dissatisfiers operate to dissatisfy the employees when they are absent but their presence does not motivate them.

(a) Both Assertion and Reason are true, and Reason is the correct explanation for Assertion.
(b) Both Assertion and Reason are true, but Reason is not the correct explanation for Assertion.
(c) Assertion is true and Reason is false.
(d) Both Assertion and Reason are false.

Ans: (b) Both Assertion and Reason are true, but Reason is not the correct explanation for Assertion.

(xiii) State whether the following are True or False:

(a) Retrenchment means the temporary removal of an employee from services due to economic reasons in a going concern.
(b) Recruitment is a negative process whereas Selection is a positive process.
(c) Business intermediaries are authorities appointed by the government to regulate organisations.
(d) Job enlargement implies increasing the scope of the job by adding more tasks to it.

Ans: (a) False
(b) True
(c) False
(d) True

Question 2

(i) Name and explain any two sources of Internal Recruitment.

Ans: 1. Promotions: Vacancies at higher levels may be filled up by promoting persons working at lower levels. For example, when the present sales manager of a company retires, one of the branch managers may be promoted as the new sales manager. Promotion involves shifting an employee to a higher post carrying a higher status and more salary.

2. Transfers: Transfer means shifting an employee from one factory, branch or office to fill vacancy in another factory, branch or office of the company. For example, shortage of sales persons in one branch may be met by transferring sales persons -from another branch. Transfer involves shifting an employee to a similar job without change in status and salary.

OR

(ii) State any four merits of Written Communication.

Ans: The merits of written communication:

(1) Accurate and precise: Written communication is always drafted with great care. As written communication can be verified and its authenticity can be easily challenged. Written communication has to be more accurate and factual. Therefore, in written communication, there is more emphasis on accuracy and precision.

(2) Re-read many times: The receiver or reader of the written communication can read the message any time again in the future. He can read the message number of times till he Properly and accurately understands it. This is not possible in verbal (oral) communication.

(3) Permanent record: The documents of written communication act as a permanent record. Whenever required, important information can be easily collected from the preserved documents. It can be used for future reference.

(4) Documentary evidence: Written Communication creates records of evidence. Written communication is accepted by the court of law as a legal document and as legal evidence also.

Question 3

With reference to staff benefits, explain the following:

(i) Encashment of leave
(ii) National Pension System

Ans: (i) Encashment of Leave:
Encashment of leave refers to the practice where an employee is paid in cash for their unused leave days. This is typically done at the end of a specified period, such as the end of the year or upon the employee's resignation or retirement. The amount paid is calculated based on the number of days of leave accrued and the employee's salary.

Employers often have policies in place regarding the encashment of leave, including rules on minimum and maximum leave balances that can be encashed, eligibility criteria, and the rate at which leave is converted to cash. Encashment of leave can be a valuable benefit for employees, providing them with additional income or financial security.

(ii) National Pension System (NPS): The National Pension System (NPS) is a voluntary, long-term retirement savings scheme established by the Government of India. It is designed to provide regular income to individuals after retirement. NPS is open to employees from the public, private, and unorganized sectors.

Under the NPS, individuals can contribute to their pension account during their working years. These contributions are invested in various instruments, such as government bonds, corporate bonds, and equities, with the aim of generating returns over time. Upon retirement, individuals can use the accumulated corpus to purchase an annuity, which provides them with a regular income stream.

Question 4

With the world going digital, e-Recruitment is on the rise.

With reference to the above statement, give any two benefits and any two limitations each of e-Recruitment.

Ans: Benefits of e-Recruitment:

1. Cost-Effectiveness: e-Recruitment can significantly reduce costs associated with traditional recruitment methods, such as advertising in newspapers or conducting physical interviews.

2. Wider Reach: It allows companies to reach a larger pool of candidates beyond their immediate geographical area, increasing the chances of finding the right talent.

Limitations of e-Recruitment:

1. Impersonal Process: The lack of face-to-face interaction can make the recruitment process less personal, potentially leading to misunderstandings or miscommunications.

2. Technical Challenges: Some candidates, especially those in remote or underprivileged areas, may not have access to the internet or the necessary technology to apply for jobs online, limiting the candidate pool.

Question 5

(i) Give any four differences between Recruitment and Selection.

Ans: 1. Goal:

• Recruitment: Aims to attract a large pool of qualified candidates for a position.
• Selection: Aims to identify the single best candidate from the pool for the position.

2. Process:

• Recruitment: Involves activities like writing job descriptions, advertising vacancies, and reviewing applications.
• Selection: Involves activities like conducting interviews, assessments, and reference checks.

3. Outcome:

• Recruitment: Results in a pool of candidates expressing interest in the position.
• Selection: Results in the selection of a single candidate to be offered the position.

4. Approach:

• Recruitment: Generally considered a positive process, encouraging applications.
• Selection: Can be seen as a negative process, involving the elimination of less suitable candidates.

OR

(ii) State any four differences between Time-Rate System and Piece-Rate System of staff remuneration.

Ans: 1. Basis of Payment:

• Time-Rate System: Employees are paid based on the amount of time they work, such as hourly, daily, or monthly rates.
• Piece-Rate System: Employees are paid based on the number of units they produce or tasks they complete.

2. Incentive for Productivity:

• Time-Rate System: There is less direct incentive for employees to increase productivity since they are paid regardless of their output.
• Piece-Rate System: There is a strong incentive for employees to increase productivity as their pay is directly tied to their output.

3. Risk and Reward:

• Time-Rate System: Employees bear less risk as their pay is fixed, but they may also miss out on potential rewards for higher productivity.
• Piece-Rate System: Employees bear more risk as their pay is tied to their output, but they have the opportunity for higher earnings based on their productivity.

4. Suitability for Different Jobs:

• Time-Rate System: Typically used for jobs where the quality of work is more important than the quantity produced, or where output is difficult to measure.
• Piece-Rate System: Typically used for jobs where the quantity of output is easier to measure and where productivity can be directly influenced by the employee.

Question 6

(i) State any two features of Staff Motivation.

Ans: Two features of staff motivation are:

1. Intrinsic Motivation: This involves motivating employees from within, driven by personal satisfaction and a sense of purpose. It can be nurtured through a supportive work environment, opportunities for growth and development, and recognition of achievements.

2. Extrinsic Motivation: This refers to external factors that drive employees, such as financial rewards, promotions, or recognition. While these can be effective, they may not always lead to long-term motivation if intrinsic factors are not also considered.

(ii) With reference to Financing, briefly explain factoring.

Ans: Factoring is a financial transaction where a business sells its accounts receivable (invoices) to a third party, known as a factor, at a discount. The factor then collects the full amount owed on the invoices from the business's customers. Factoring helps businesses improve cash flow by providing immediate funds for their outstanding invoices, rather than waiting for customers to pay. It also transfers the credit risk of non-payment from the business to the factor.

Question 7

With reference to job planning, explain the meaning and relevance of job description

Ans: 1. Recruitment and Selection: Job descriptions help attract suitable candidates by providing a clear understanding of the job role. They enable recruiters to match candidate skills and qualifications with job requirements.

2. Performance Management: Job descriptions serve as a benchmark for evaluating employee performance. They provide a basis for setting performance goals and expectations.

3. Training and Development: A well-defined job description helps identify the skills and competencies required for the job. This information is valuable in designing training programs to enhance employee skills and performance.

4. Career Progression: Job descriptions can include information about potential career paths within the organization. This helps employees understand how their current role fits into the bigger picture and what opportunities for advancement exist.

5. Legal Compliance: Job descriptions can be used to ensure that job roles comply with relevant laws and regulations. They can also provide documentation in case of legal disputes related to job duties and responsibilities.

Question 8

State any two opportunities and any two threats of globalisation.

Ans: Opportunities of Globalization:

1. Increased Economic Growth and Development: Globalization opens doors to larger markets for businesses, allowing them to reach new customers and expand their reach. This can lead to increased economic growth, job creation, and access to a wider variety of goods and services for consumers at potentially lower costs.

2. Knowledge and Technology Sharing: Global interconnectedness fosters the sharing of knowledge and technology across borders. This can lead to faster innovation, improved efficiency, and advancements in various fields such as medicine, education, and communication.

Threats of Globalization:

1. Job displacement and income inequality: Increased competition from countries with lower labor costs can lead to job losses in certain sectors and regions. This can contribute to income inequality and economic hardship within certain communities.

2. Environmental Degradation: The increased movement of goods and people around the world can contribute to environmental degradation through increased pollution, resource depletion, and the spread of invasive species. This can have both local and global consequences.

Question 9
According to Maslow’s theory of Hierarchy of Needs, name and explain the human needs which arise after the physiological needs are met.

Ans: -----------------

Question 10
(i) Briefly explain the following sources of Finance.
(a) Crowd funding.
(b) Public Deposits
(c) Discounting of bills of exchange
(d) Retained profits

Ans: (a) Crowdfunding: Crowdfunding is a method of raising capital through the collective effort of friends, family, customers, and individual investors. This approach taps into the collective efforts of a large pool of individuals, primarily online via social media and crowdfunding platforms, to finance a business or project.

(b) Public Deposits: Public deposits refer to the funds deposited by the public in financial institutions like banks, non-banking financial companies (NBFCs), and housing finance companies (HFCs). These deposits are repayable after a certain period, along with interest. They are an important source of short-term finance for these institutions.

(c) Discounting of Bills of Exchange: This is a process where a business can receive funds by selling its bill of exchange (a written order by one party to another to pay a specified sum of money to a specified person) to a bank or financial institution before it is due. The bank or financial institution pays the business the face value of the bill, minus a discount (interest).

(d) Retained Profits: Retained profits are the portion of net income that a business retains after paying out dividends to shareholders. This money is reinvested back into the company for growth, such as expanding operations, developing new products, or reducing debt. It is an internal source of finance.

OR

(ii) (a) What is meant by diagonal communication?

Ans: Diagonal communication refers to the exchange of information between different levels of the organizational hierarchy, where individuals from different departments or levels interact. Unlike vertical communication, which flows up and down the hierarchy, diagonal communication cuts across different levels and departments, facilitating a more holistic understanding of organizational issues.

(b) Explain any three barriers to Communication.

Ans: Barriers to Communication:

1. Physical Barriers: These include physical distance between employees, noise, poor lighting, and even the design of an office space. These factors can make it difficult for messages to be accurately received and understood.

2. Psychological Barriers: These barriers are related to the mindset of individuals, such as stereotypes, biases, emotions, and attitudes. For example, a person may not listen effectively if they believe the speaker is untrustworthy or irrelevant.

3. Language Barriers: Differences in language and vocabulary can lead to misunderstandings. This barrier is not only about different languages but also about jargon, technical terms, and even different interpretations of the same language.

Question 11
A reputed English medium school requires fresh/experienced trained, graduate Science teachers for the Secondary Section of their school.
Send your application with a full resume within seven days of this advertisement to P.O Box No. 007.
With reference to the above advertisement given in XYZ newspaper, draft a suitable application letter.

Ans: Application for Science Teacher Position

[Your Name] [Your Address]

[City, State, Zip Code]

[Email Address]

[Phone Number]

[Date]

The Principal

[School Name]

[School Address]

[City, State, Zip Code]

Subject: Application for the Position of Science Teacher

Dear Sir/Madam,

I am writing to express my interest in the position of Science Teacher at [School Name], as advertised in the XYZ newspaper. With a Bachelor's degree in Science Education and [X years/months] of teaching experience, I am confident in my ability to contribute effectively to the Secondary Section of your esteemed institution.

During my tenure at [Previous School/Institution Name], I developed a strong foundation in teaching Science subjects to secondary level students. My approach emphasizes practical learning methods, ensuring that students not only understand the concepts but also develop a passion for scientific inquiry. I have also actively participated in extracurricular activities, such as science fairs and clubs, to further engage students outside the classroom.

I am particularly drawn to [School Name] due to its reputation for academic excellence and commitment to holistic education. I am eager to be a part of a dynamic team of educators who are dedicated to nurturing young minds and shaping future leaders.

Enclosed is my resume, which provides additional details about my qualifications and professional achievements. I would welcome the opportunity to discuss how my background, skills, and passion for teaching align with the goals of [School Name].

Thank you for considering my application. I look forward to the possibility of contributing to the academic success of your students at [School Name].

Yours sincerely,

[Your Name]

Question 12
Read the passage given below and answer the questions that follow.
Kapoor Garments is a well-known brand which manufactures clothes and sells them through their own showrooms. Recently, there was a major reshuffle in staff placements in Kapoor Garments.
Given below are some of the changes in staff placements at Kapoor Garments.
• Anamika, a Sales manager working in the X showroom was shifted to Y showroom as there was a huge footfall of customers in Y showroom.
• Abdul had been working at the Y showroom for the past 25 years. Lately, he began to experience joint pain due to advanced age and found it difficult to stand for the entire day. Hence, he was shifted to the Accounts Department.
• Charu was a short-tempered employee and could not handle customers. Therefore, she was shifted to the Purchase Department.
• Diana, who was due for promotion was shifted from one department to another after every two weeks.
• Ramesh, a housekeeping staff, was not shifted to any department but given an increase in salary.

(i) Identify the type of transfer that takes place in cases of Anamika, Abdul, Charu and Diana.

Ans: The type of transfer that takes place in cases of Anamika, Abdul, Charu, and Diana is a lateral transfer, where employees are moved to a different position or department at the same level of responsibility and salary.

(ii) Identify and briefly explain the concept with regard to the increase in Ramesh’s salary.

Ans: 

(iii) Distinguish between Transfer and Promotion.

Ans: Difference between transfer and promotions.

--

ISC Class 12 Study Material