OCM Board Paper 2022 Solution | Maharashtra Board Paper With Solutions
OCM Board Paper 2022 Solution
Q.2. Explain the following terms/concepts (Any FOUR) :  (2 marks for each sub-question. At least 2 points are expected each.)
- Meaning: Organising is the process of identifying and bringing the required resources together such as men, money, material, machines and properly arranging them to achieve the goals of an organisation.
- It is a management function after planning.
- It decides the ways and means to achieve what has been planned.
- It helps to execute the plan.
- Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against the loss on account of an unforeseen future event.
- Insurance is a means of protection from financial loss due to the occurrence of an unexpected event.
- Insured pays a premium (a certain fixed sum of money on a timely basis) to the insurer for giving financial protection.
(3) E- Business:
- E-business is an abbreviated form of electronic business which implies the application and use of information and communication technologies (ICT) to conduct and complete all business activities.
- Business conducted with the help internet is known as e-business.
- It is derived from e-mail and e-commerce.
- It provides platform to buyer and seller buy and sell as well as production, marketing, Communication, etc.
- It has some merits such as: Increased speed, convenience, facilitates global access, etc.
- Google pay, swiggy, ola, eBay, etc. are examples of e-business.
(4) Place Concept of Market:
- The term market is commonly understood as the place where the transaction of buying and selling of goods and services takes place in exchange for money or money’s worth.
- It is the place where buyers, sellers and other intermediaries come together and exchange goods or services.
- In the olden days, place played an important role in defining the market.
- In Modern age of information technology, the term ‘market’ has a wider meaning than just a place.
(5) Lok Adalat :
- Lok Adalat is an effective and economical system for quick redressal of public grievances.
- It can also be referred to as ‘People’s Court’.
- It is established by the government to settle disputes by mutual compromise.
- Resolution of disputes by Lok Adalat gets statutory recognition. e.g. MSEDCL, MSRTC,
- Railway authority, Insurance Companies, Banks, etc. organize regular Lok Adalat.
- Outsourcing is a process of allocation of specific business processes or functions to a specialist external service provider or agency for certain monetary consideration.
- Outsourcing reduces the cost and also saves time and efforts on training cost.
- Outsourcing helps companies to focus on their core areas which lead to better profits and increase the quality of their products.
- Outsourcing increases efficiency and productivity in the non-core areas of an organization as they are outsourced to specialised agencies.
- There can be a threat to security and confidentiality as confidential information of the organization may be leaked to the third party.
- Many organisations, companies, corporate houses, establishments, hospitals, shops, malls, housing societies, offices, etc. outsource their non-core (less important) areas of business such as canteen, sanitation, security services, etc. to outside agencies.
Q.4. Distinguish between (Any THREE) :  (4 marks for each sub-question. At least 4 points are expected)
1) Planning and Controlling :
|1. Meaning: Planning is deciding in advance what to do how to do it, when to do it and who is to do it.||Controlling is the process of taking steps to bring actual results and desired results closer together.|
|2. Objective: To set goals and choose the means to achieve these goals.||To ensure that the objectives are achieved according to the plan.|
|3. Area of function: It includes setting objectives by identifying the ways of attaining the goal and selecting the best plan.||It includes setting up standards, measurements, and comparisons with actual performance and taking corrective steps whenever necessary.|
|4. Factors: Internal and external factors are considered in the planning process.||Internal and external factors are taken into account for taking corrective action.|
|5. Order: It is the basic first function of the management process.||It is an end function of the management process.|
|6. Resources: Planning is done as per the requirement and availability of resources.||It is related to all organizational resources which help to achieve the goal of the organization.|
|7. Nature: It is continuous in nature. It exists in the whole life of the organisation.||It is the process that starts once the actual plan is executed.|
|8. Level of Management: Top management is concerned with planning the activities.||Top and middle-level management are responsible for controlling the activities.|
2) Life Insurance and Fire Insurance:
|Life Insurance||Fire Insurance|
|1. Meaning: A contract whereby the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium).||A contract in which the insurer promises to pay compensation to the insured if the subject matter is damaged due to fire or related events.|
|2. Policy taken by: It can be taken by an individual for his own life or his family members.||It can be taken by individuals for their properties or by the businessman for their goods and properties.|
|3. Subject matter: In life insurance, the life of the insured is a subject matter.||In Fire insurance, the goods and assets or property of the insured is the subject matter.|
|4. Tenure: The policy can be issued for any number of years, even until the death of the assured.||It is generally for a short period say one year.|
|5. Compensation: It is paid either on death or maturity whichever is earlier.||It is paid only if there is a loss due to fire during the term of the policy.|
|6. Principle of Indemnity: It is not applicable as human life cannot be valued in terms of money for calculating the actual loss.||It is applicable as the insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.|
|7. A number of policies: Insured can take any number of policies in the same life. Compensation is paid on all the policies.||Generally, only one policy can be taken but double insurance is possible. However, compensation does not exceed the actual loss.|
|8. Beneficiary: The beneficiary can be insured (if he survives the selected term) or else the nominee or the legal heir on the death of the assured.||The beneficiary is the insured who has insured the property or goods.|
|9. Surrender of policy: The policy can be surrendered before the expiry of the term subject to certain conditions.||It cannot be surrendered.|
3) District Commission and National Commission:
|District Commission||National Commission|
|1. Meaning: A consumer disputes redressal forum established at the district level by the State Government is known as District Commission.||A consumer disputes redressal forum established at the National level by the Central Government by notification is known as National Commission.|
|2.President: A person who is retired or qualified as a District Judge is appointed as president of the State Commission.||A person who is or retired as a judge of the Supreme Court is appointed as president of the National Commission.|
|3.Members: Not less than two and not more than such number of members as may be prescribed in consultation with the Central government not||Not less than four and not more than such number of members as may be prescribed.|
|4.Membership Tenure: The membership term is of five years or up to the age of sixty-five years, whichever is earlier.||The members can have a membership term of five years or up to the age prescribed, whichever is earlier.|
|5.Area covered: It covers particular district.||It covers the entire country.|
|6.Monetary Jurisdiction: To entertain complaints where the value of the goods or services paid as consideration does not exceed ₹. one crore.||To entertain complaints where the value of the goods or services paid as consideration exceeds ₹. ten crores.|
|7.Appeal: Any person who is not satisfied, can appeal against the order of the District Commission to the State Commission.||Any person who is not satisfied can appeal against the National Commission to the Supreme Court.|
4) Staffing and Directing :
|1. Meaning: The staffing function pertains to the recruitment, selection, development, training, and compensation of subordinate managers.||Directing is the guidance inspiration, the leadership of those men and woconstitutestute the real case responsibilities of management.|
|2. Objective: To appoint the right type of people to the right positions and at the right time.||To direct the subordinates to get things done in the right manner.|
|3. Area of function: It includes recruitment, selection, training, development, and compensation of human resources .||It includes instructing, guiding, inspiring, communicating, and Motivating the human resources.|
|4. Factors: Staffing is mostly Concerned with internal factors.||Directing is concerned directly with internal factors i.e. human resources.|
|5. Order: It follows the organizing function.||It follows organising and staffing for the execution of planning.|
|6. Resources: It is the process relating to the organization of human resources.||It gives direction to the employees regarding the use of other resources.|
|7. Nature: It is a continuous process as it deals with employees i.e. human resources.||This continuous process is necessary for the process of achievement of the goals.|
|8. Middle-level management is related to recruitment, training and selection Top level is concerned with promotion and compensation||Middle-level management is involved in directing the employees.|
Q.5. Answer in brief (Any TWO)  (4 marks for each sub-question. At least 4 points are expected in each sub-question.)
(1) 4 P’s of product marketing mix :
- Meaning: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market.
- The four Ps are the key factors that are involved in the marketing of goods or services. They are the product, price, place, and promotion.
- Product refers to the goods or services that are offered to the customers to satisfy their needs of customers.
- The product can be tangible or intangible, as it can be in the form of goods or services.
- The business needs to decide on the right type of product through extensive market research.
- The success of the business depends on the impact of the product in the minds of the customers.
- The price of the product is the amount that a customer pays for the product.
- Price plays an important role in creating demand for the product.
- The business needs to take utmost care while determining the price of the product.
- The cost of the product and willingness of the customer to pay for the product play an important role in pricing the product.
- Too high price may affect the demand for the product and pricing too low may affect the profitability of the business.
- While deciding the prices, the value and utility of the product to its customers are to be considered.
- The place is also known as a distribution channel.
- Placement or distribution is a very important part of marketing.
- Making the right product is not enough. A businessman needs to make the product available to potential customers in the right place too.
- Business needs to distribute the product in a place that is accessible to potential buyers. It covers location, distribution, and ways of delivering the product to the customers.
- Better is the chain of distribution, and the higher is the coverage of the product in the market.
- Promotion is an important element of marketing as it creates brand recognition and sales.
- Promotion is a tool of marketing communication that helps to publicise the product to the customer. It helps to convey product features to the potential buyers and induce them to buy them.
- The promotion mix includes tools such as advertising, direct marketing, sales promotion, personal selling, etc.
- The combination of promotional strategies depends on budget, the message business wants to communicate, and the target market.
- The above four P’s of marketing are associated with the product marketing mix. In addition to the 4Ps, when there is consumer-oriented or service marketing, there are 3 more P’s that are taken into consideration namely – People, Process, and Physical Evidence.
(2) Responsibilities towards employees: (Any 4 points are expected)
- The survival and growth of a commercial organisation depend upon the employees’ participation and their involvement in the organisation. They must be treated with dignity and respect.
- The management and employees should develop mutual understanding and trust. The organisation must fulfill certain responsibilities towards its employees. They are as follows:
1. Job security:
- The Company should provide job security to its employees.
- They should be made permanent employees of the company.
- Job Security provides mental peace and encourages them to work with dedication and concentration.
- A permanent employee is more loyal to the organisation.
2. Fair Remuneration:
- Remuneration paid to workers should be fair, reasonable, and satisfactory.
- There should be a revision in wages and salaries from time to time.
- Incentives like bonuses, O.T. allowance, medical allowance, leave-traveling allowance, etc. should be given to employees.
3. Health and Safety Measures:
- Businesses should take necessary steps for protecting the health of employees.
• Safety equipment like hand gloves, industrial shoes, helmets, goggles, masks, etc. should be provided.
• Proper maintenance of machines and premises must be done to prevent accidents and to control pollution.
• Canteen facilities and medical facilities must be provided to them.
4. Good Working Condition:
- The worker should be provided with good working conditions.
- There should be adequate lighting & ventilation, drinking water & so on.
- Moreover, necessary steps should be taken to avoid air, water, and sound pollution.
- There should be proper working hours with lunch breaks and rest pauses.
5. Recognition of Trade Unions:
- The management should recognise that union which is represented by the majority of workers, to maintain industrial peace.
- Management should not follow a divide & rule policy.
- Management should sort out various problems of workers by holding talks or negotiations with such unions.
6. Education and Training:
- Businesses should make every possible attempt to educate and provide training to their employees.
- Training makes employees more skillful and confident which increases their efficiency.
- Training can be on the job training or off the job training.
7. Workers’ Participation in Management:
- Workers should be encouraged to take part in management.
- There are different ways of workers’ participation in management such as quality circles, works committees, suggestion schemes, profit sharing, co-partnership & so on. It will raise their morale and give them a sense of belonging.
8. Promotion and Career Opportunities:
- Businesses should offer adequate opportunities for promotion to their talented and dedicated employees.
- They should give proper information about qualifications, skills, and experience required to obtain promotion.
- This will increase awareness among employees and they will also be motivated to take efforts.
- Business should take every possible effort for the all-round development of employees.
9. Proper Grievance Procedure:
- There should be a proper grievance procedure to handle a complaint of employees.
- Every complaint of an employee must be attended to and solved immediately and sincerely.
- Proper Investigations and necessary actions should be taken to settle their grievances.
- To give fair treatment to all employees.
- To recognize, appreciate and encourage the special skills of employees.
- To introduce a code of conduct.
- To provide an opportunity for meaningful work and to recognize goals.
- To protect the religious, social, and political rights of employees.
- To allow to form of informal groups.
OCM Board paper 2021
OCM Board paper 2022
OCM Objectives Questions
(3) Rights of Consumers: (Any 4 are points are expected)
- The word ‘Consumer’ is derived from the Latin word ‘Consumere’ which means, ‘to eat or to drink’.
- The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market.
- The business aim should be to meet the needs of the consumers and to provide satisfaction. Every consumer should be aware of his rights and use them in his daily life for protection. Consumers must fight for their rights and put pressure on businesses, manufacturers, and traders for safeguarding their rights. Consumers have the following rights:
1. Right to Safety:
- This right protects consumers against products, production processes, and services that are hazardous (harmful) to health or life.
- It includes concern for consumer’s long-term interests as well as their immediate requirements.
- According to this right, the consumer must get full safety and protection for his life and health.
- This safety should be about medicines, electrical appliances, food, etc.
- The Government of India has given safety standards in the form of AGMARK, lSI, BIS, Hallmark, etc.
2. Right to Information:
- According to this right, the consumer should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual, and safety instruction, etc.
- This right also enables the consumer to select the right product or service.
- It applies to food products, medicines, spare parts, or any other consumer products or services.
3. Right to Choose:
- The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast-moving consumer goods (FMCG), etc.
- According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity.
- The right to choose is related to the concept of a free-market economy.
- As per this right, the seller cannot compel the consumer to buy a particular product and hence monopoly is prevented.
4. Right to be heard:
- Every business organization should listen to and solve the complaints of consumers.
- According to this right, consumers can voice their complaints on the consumer forum.
- Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc.
- Nowadays, consumers can file online complaints through a portal or mobile applications.
5. Right to Consumer Education:
- Every consumer has the right to know about consumer rights and solutions to their problems.
- This right creates consumer awareness.
- An aware consumer can make a rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern.
- It is necessary to give education and training regarding prevailing acts and legal processes. The government, media, and NGOs play vital roles in this regard.
6. Right to Represent:
- The act provides an opportunity for individuals and consumer groups to represent consumer’s interests before the consumer forum.
- The act allows the consumer to be represented by a person who is not a professional advocate.
- This provision is in recognition of the consumer’s right to represent.
7. Right to Redress:
- Along with the right to represent, the right of redressal is also given.
- Only filing a complaint is not enough to give justice to consumers, so this right implies a fair settlement of claims.
- This right enables the consumer to demand repair or replacement or compensation for defective products and poor services.
- According to the consumer protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims such as the District Commission at the District level, State Commission at the state level, and National Commission at the national level. • Consumers are protected from business malpractices.
8. Right to Healthy Environment:
- All consumers have a right to a healthy and clean environment.
- According to this right, the consumer can demand action against the pollution causing business organisations.
- All consumers have the right to a healthy and clean environment in the present and future.
9. Right to Protect from unfair business practices:
- As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.
10. Right against spurious goods:
- This right is against the marketing of goods that are hazardous to health, spurious, and pose a danger to life itself.
Q.6 Justify the following statements (Any TWO) :  (4 marks for each sub-question. At least 4 points are expected.)
(1) Principles of management are flexible in nature :
- The principles of management are how managers can get things done through others.
- Management principles provide guidelines to managers to solve problems by making decisions and taking action.
- It evolved through observation, analysis, and experiments
- Managers can be flexible while implementing principles to suit the requirement.
- Business situations keep on changing continuously due to the dynamic world.
- They can be changed, adjusted, or modified per need, situation and requirements.
- Conclusion: Principles of management are flexible and can be applied as per need, requirement, and situation in this modern dynamic world.
(2) There are many ways and means to consumer protection.
Ans.: Following are the ways and means of consumer protection.
- Lok Adalat: Lok Adalat is an effective and economical system for quick redressal of public grievances. It can also be referred to as ‘People’s Court’. It is established by the government to settle disputes by mutual compromise.
- Public Interest Litigation (Janhit Yachika): Public Interest Litigation means a legal action initiated in a court of law regarding a matter of general public interest.
- Redressal Forums: Under the Consumer Protection Act, 2019, a system has been set up to deal with consumer grievances and disputes at the district, state, and national levels.
- Awareness Programme: State and Central governments regularly publish journals, brochures, booklets, and various posters depicting the rights and responsibilities of consumers, redressal of machinery, etc.
- Consumer Organizations: Consumer Organizations have been active in India to promote and protect consumer interests. The consumer movement is well settled in India and helps individuals to seek quick and adequate redressal of their grievances.
- Consumer Welfare Fund (CWF): Department of Consumer Affairs has created a consumer Welfare Fund for providing financial assistance to strengthen the voluntary consumer movement, particularly in a rural area. This fund is used for training and
research in consumer education, complaint handling, counseling and guidance mechanisms, product testing labs, and so on.
- Legislative Measures: Several laws have been enacted in India to safeguard the interest of consumers and protect them from unethical practices of businessmen. Such as the Sale of Goods Act, 1930, Essential Commodities Act, 1955, Standard of Weights and
Measures Act, 1956, etc.
(3) Principle of subrogation applies to all contracts of indemnity.
- The principle of subrogation applies to all contracts of indemnity.
- According to the principle of subrogation, after the insured is fully compensated for the total loss of the property or goods insured by him, all the rights in such property or goods pass on to the Insurer.
- An insured person cannot claim any right in the property saved from the damage or loss, once he is fully compensated by the insurer.
- This principle applies only to the damaged property that has any value after the happening of the event.
- Like the principle of indemnity, the principle of subrogation applies to all insurance policies except life insurance policies. In life insurance contracts, the question of indemnity and subrogation does not arise.
(4) Marketing is significant to the consumers.
Ans. The significance of Marketing to the consumers is explained as follows:
- Promotes product awareness: Companies undertake different marketing activities to promote their products and services. It also creates awareness among the consumers about different brands and features of the product available in the market. On this basis,
Consumers purchase products.
- Provides quality products: On account of increasing competition in the market, consumers easily get information about the product and services available in the market. Marketing creates moral pressure on the business enterprises to sell good quality products to the consumers.
- Provides a variety of products: Marketing provides Information to the consumers about the variety of products available in the market. This helps consumers to buy products as per their choice.
- Helps in selection: In the competitive market, a variety of products of different brands are available. Marketing enables the consumers to select the most suitable products options available.
- Consumer Satisfaction: The main aim of marketing is to give assurance of good quality products to the consumers. They get satisfied when their needs are fulfilled and consumers are satisfied. In this way, marketing satisfies the consumers.
- Regular supply of goods: Through an efficient distribution channel of marketing, goods can be supplied regularly. It helps to maintain the balance between demand and supply. Which results in the stabilisation of prices.
- Conclusion: On account of the above reasons, Marketing is significant to the consumers.
Q.7. Attempt the following (Any TWO) : 
(5 marks for each sub-question. At least 5 points are expected in each sub-question.)
(1) Henry Fayol’s principles of management
- Fayol proposed 14 principles of management in his famous book ‘General and Industrial Administration. These principles serve as a guideline for decision-making and management actions.
- 14 principles are explained as follows:
1. Principle of Division of Work :
- As per this principle, the work in an organisation should be divided among different departments as per their type such as technical, financial, commercial, security operations, accounting, and managerial.
- Departmental work should be assigned to employees as per their ability & capacity.
- Division of work leads to Specialisation. It promotes the efficiency of the workforce & also increases their productivity.
2. Principle of Authority and Responsibility :
- Authority is the right to make decisions. Responsibility means an obligation to complete the assigned job on time.
- Managers should have the proper authority to get things done appropriately from their subordinates.
- Authority always comes with responsibility. If the manager is given the authority to complete a task within a given time, then he should be held responsible if he does not complete the work within the given time. This will help to meet responsibilities on time.
- Moreover, there should be a balance between authority and responsibility so that authority cannot be misused.
- If authority is more than responsibility, then a manager may misuse it and, if the responsibility is more than authority, then he may feel frustrated.
3. Principle of Discipline :
- According to Fayol, there should be discipline in the organisation. • Discipline refers to the observance of rules and regulations of the organisation.
- Moreover, the subordinate should respect their superiors and obey their order. This helps for systematic working in the organisation by all.
- Discipline needs to flow from top to lower level in the organisation. This will help to obey the rules and regulations of the organisation. Disciplined work improves efficiency.
- Thus, Discipline helps to achieve organisational goals.
4. Principle of Unity of Command :
- An employee should receive orders from only one superior/manager and he is answerable to the same manager.
- Dual subordination should be avoided. It means that if an employee receives orders from more than one superior/manager, then he will be confused as to whom he should listen to/follow and he may not be able to work properly. Even ego clashes between managers can be avoided.
- Each employee should know his immediate superior and should receive orders from him only.
- The application of this principle brings effectiveness to the decisions taken by the manager.
5. Principle of Unity of Direction:
- There should be the same directions to all employees doing similar activities.
- In other words, a group of employees doing a similar activity should be given the same guidance and direction by the manager. This helps to unify the efforts of employees in one direction. As a result, organisational goals can be easily achieved within
a given time.
- On the other hand, in the absence of unity of direction, there would be confusion among the employees. This may affect their productivity adversely.
6. Principle of Subordination of Individual Interest to Organisational Interest :
- The interest of an organisation should be more primary than that of an employee’s interest.
- In other words, the interest of the organisation should come first and then the individual or group interest.
- Every employee or a group should work in the interest of the organisation and not for their self-interest.
- For example, in every game, the players are always thinking about winning the match as a team rather than their records.
7. Principle of Centralization :
- Centralization refers to the concentration of powers and decision-making authority in a few hands at the top level.
- Decentralization means sharing power and decision-making authority at every level of management.
- The degree of centralization will depend upon the circumstances in which the company is working.
- Generally, large organisations have more decentralization than small organisations.
- There must be a proper balance between centralization and decentralization in the organisation so that suitable decisions can be taken.
8. Principle of Remuneration :
- Remuneration of employees should be fair, reasonable & satisfactory.
- It should be paid on time.
- Moreover, there should be a revision in wages from time to time.
- Non-financial benefits such as good working conditions, canteen facilities, recreation facilities, etc. should also be provided.
9. Principle of Scalar Chain :
- Scalar chain means the hierarchy (formal line) of authority from the highest to lowest rank. This helps to ensure the orderly flow of information and communication.
- For example, a General Manager informs the decision to the respective Functional Manager, then the Functional Manager will pass it to the supervisor, the supervisor will inform it to Foreman, and so on according to the level of authority.
10. Principle of Order :
- According to Fayol, “People and materials must be in suitable places at an appropriate time for maximum efficiency.”
- The principle of the order states that there is a place for everything (everyone) and everything (everyone) in its (her/his) place.
- The principle focuses on the proper utilization of physical and human resources. This will lead to increased productivity and efficiency.
11. Principle of Equity :
- Management should give fair treatment to all employees.
- Management should be friendly with their subordinates.
- There should not be any partiality in transfers, promotions, etc.
- While dividing the work, delegating the authorities, deciding the monetary terms, etc. There should not be any discrimination between the employees.
- Equal opportunities should be available to everyone. It brings loyalty to the organisation.
12. Principle of Stability of Tenure :
- At the time of recruitment of employees, the management should assure them about the stability of tenure or job security.
- They should be made permanent as early as possible. This creates a sense of belonging among employees. They will be more sincere and dedicated. This will improve their efficiency.
- On the other hand, Insecurity in the job always affects the efficiency of employees adversely whereas job security minimizes the employee turnover ratio.
13. Principle of Initiative :
- The initiative refers to voluntarily coming forward to do the work innovatively.
- Managers should encourage their subordinates to take initiative and come up with their suggestions and ideas.
- A good company should have an employee suggestion system wherein suggestions of employees which result in cost/time reduction should be rewarded.
- This will boost the morale of the subordinates as well as add to the profits of the organisation.
14. Principle of Esprit de corps: (Teamwork) :
- Henry Fayol has emphasized teamwork.
- Esprit de corps means the union is strength.
- The manager should develop ‘team spirit’ among the employees.
- With unity and togetherness, organisational goals can be achieved easily.
(2) Social Responsibilities towards government: (Any 5 points)
The government provides infrastructure facilities to set up the business. Sometimes, Government gives a subsidy to the business to grow their business. So, business organisations have certain responsibilities towards the government, which are as follows:
1. Timely Payment of Taxes:
- Commercial organisations should pay taxes and duties regularly to the government.
- This makes funds available to the government so that it can undertake various developmental projects.
2. Observing rules and regulations:
- The companies are required to observe the rules and regulations laid down by the Government.
- The business should follow the laws regarding obtaining a license, the operation of the business, price determination and production, etc.
- They should conduct Lawful business only. Illegal activity should be avoided.
3. Earning Foreign Exchange:
- The Business organisation should earn valuable foreign exchange by exporting goods all over the world.
- The government requires this foreign exchange for making payments for essential goods imported.
4. Economic Development:
- The government sets targets for the balanced and rapid economic development of the country.
- The business organisation should provide necessary co-operation to attain the targets set by the government.
5. Implementing Socio-Economic Policies:
- The business organisation should provide co-operation and necessary help to the government in implementing socio-economic programs and policies in the country.
6. Suggestions to the Government:
- The business organisation should give suggestions to the government before framing important policies such as Industrial policies, Import-Export policies, Licensing policies, etc.
- Such suggestions help frame business-friendly policies.
7. No favours:
- The commercial organisation should not give bribes or influence government officials to get any work done from them.
8. Contributing to Government Treasury:
- The Commercial organization must contribute the funds to government during the emergencies and natural calamities like floods, earthquakes, etc.
- They should provide financial as well as technical help to the government to overcome certain problems.
(3) Types of Warehouses : (Any 5 points)
Ans.: A warehouse is a place where goods are stored and preserved before actual sale.
The following are types of warehouses.
1. Private Warehouses :
- Private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs.
- Big business firms need large storage capacity regularly and can afford, construct and maintain their private warehouses.
2. Public Warehouses:
- It may be owned and operated by an individual or a cooperative society.
- It works under a license from the government by the prescribed rules and regulations.
- Public warehouses provide storage facilities to small manufacturers and traders at low cost.
- Public warehouses are generally located near the junctions of railways, highways, and waterways.
3. Bonded Warehouses:
- Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of customs duty.
- These warehouses work under the control of customs authorities.
- The warehouse keeper is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the customs authorities.
- The goods are held in bond and cannot be withdrawn without paying the customs duty.
- If an importer is unable or unwilling to pay customs duty immediately after the arrival of goods, he can store the goods in a bonded warehouse.
4. Duty paid Warehouses:
- If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse.
- All duty paid warehouses are public warehouses that are available to all importers.
- Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.
- These are located near the port & dock area.
5. Government Warehouses:
- These warehouses are owned, managed, and controlled by central and state governments or public authorities.
- It is difficult for small farmers, businessmen, and traders to own a warehouse, so these government warehouses assist them in storing their goods at a nominal charge.
- Central Warehousing Corporation of India (CWC), State Warehousing Corporation (SWC), and Food Corporation of India (FCI) are having warehouses across different states and countries.
6. Co-operative Warehouses:
- These warehouses are owned, managed, and controlled by cooperative societies.
- They mainly provide warehousing facilities at the most economical rates.
- These types of warehouses are very useful for farmers and traders and the general public.
7. Cold storage Warehouses:
- Cold storage warehouses provide facilities for perishable commodities like fruits, flowers, vegetables, dairy products, etc.
- In cold storage warehouses, goods are stored and refrigerated at very low temperatures to preserve them and use them in the future.
- International trade has become possible due to these warehouses.
Q. 8. Answer the following: (Anyone) 
1) Define bank. Explain different types of banks.
Note: (1) Definition of Bank: 2 marks; Types of Bank: 6 marks (At least 6 points expected.)
- The bank is a financial institution, that deals with collecting deposits, giving advances, and other related services.
- It receives money from those who want to save in the form of deposits and it lends (gives) to those who need it.
Definition: As per The Indian Banking Regulation Act, 1949 banking company means “any company which transacts the business of banking in India” and the word banking has been defined as “accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, and order or otherwise. “
Types of Banks
There are several types of banks as follows:
1. Central Bank :
- The central bank is the apex bank (Top most bank) in the banking industry in the country.
- Every country has its central bank.
- In India, The Reserve Bank of India (RBI) is the central bank.
- The RBI was established in 1935 under the Reserve Bank of India Act, 1934.
- Functions of RBI:
- It controls and regulates the banking system in the country
- It frames monetary policy.
- It issues currency notes from time to time.
- It acts as a banker to the Government.
- It acts as a banker’s bank to commercial and other banks in India.
- It maintains economic stability.
2. Commercial Banks :
- Commercial banks play an important role in the economic and social development of a country.
- Commercial banks perform Primary Functions i.e. accepting deposits and lending of money and Secondary Functions i.e. Agency functions and Utility functions.
- In India, commercial banks are divided into three groups:
- Public Sector Banks: In these banks, a major part of capital is held by the Government of India or the Reserve Bank of India (RBI). Examples: State Bank of India, Punjab National Bank, etc.
- Private Sector Banks: In these banks, capital is contributed by private individuals or organisations. Examples: AXIS Bank, HDFC Bank, etc.
- Foreign Banks: These banks are established outside India and having branches in India. E.g. Standard Chartered Bank, American Express Bank, Citi bank, etc.
3. Co-operative Bank:
- a. In India, co-operative banks are registered under Indian Co-operatives Societies Act and regulated under the Banking Regulation Act.
- Co-operative banks are popular in semi-urban and rural areas.
- The main aim of a cooperative bank is to provide credit to economically backward people, farmers, and small-scale units.
- Generally, the co-operative bank works at three different levels:
- Primary Credit Societies: Primary Credit Co-operative society works at the village level.
- District Central Co-operative Bank: These banks operate at the district level.
- State Co-operative Bank: This bank operates at the state level.
4. Industrial Development Banks :
- These are financial institutions that provide medium and long-term funds to business firms.
- Examples of development banks are the Industrial Finance Corporation of India (IFCI), State Finance Corporation (SFC), Maharashtra State Finance Corporation (MSFC), etc.
- Functions of a development bank: Provision of medium and long-term funds to business units for expansion and modernisation, Underwriting of shares issued by public limited companies, Purchase of debentures and bonds.
5. Exchange Banks :
- The exchange banks as well as large commercial banks facilitate foreign exchange transactions.
- Examples of exchange banks are American Express Bank, Barclays Bank, Bank of Tokyo, etc.
- Functions of an exchange bank are Financing foreign trade transactions, Issuing letter of credit (LC), Discounting bills of exchange, Remittances of dividends, interests, and profits, etc.
6. Regional Rural Bank :
- These banks are sponsored by large public sector banks. The capital of RRB is contributed by Central Government 50%, State Government 15%, and Sponsored Banks 35%.
- Functions: RRBs mobilise deposits primarily from rural and semi-urban areas and provide loans and advances mostly to small and marginal farmers, agricultural laborers, and rural artisans.
- E.g. Maharashtra Gramin Bank, Vidarbha Konkan Gramin Bank, etc.
7. Savings Bank:
- The main objective of the savings bank is to encourage the savings of the people, especially in rural areas.
- Examples of such banks include postal saving banks, commercial banks, and co-operatives banks.
8. Investment Bank:
- Investment banks provide financial and advisory assistance to their customers.
- Generally, business firms and government organisations are their clients.
- Investment banks facilitate mergers and acquisitions by undertaking research and providing advice on investment decisions.
- Normally, investment banks do not directly deal with the general public.
9. Specialised Banks:
- These banks cater to the requirements and provide overall support for setting up business in specific areas.
- Export and Import Bank (EXIM): This bank provides financial assistance to exporters and importers. It acts as the principal financial institution for coordinating the working of institutions engaged in financing the export and import of goods and services to promote the country’s international trade.
- Small Industries Development Bank of India (SIDBI): Small Industries Development Bank of India (SIDBI) was set up on 2nd April 1990 under an Act of the Indian Parliament. It acts as the principal financial institution for the promotion, financing, and development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for the coordination of functions of institutions engaged in similar activities.
- National Bank for Agriculture and Rural Development (NABARD): It is an apex institution for financing the agricultural and rural sectors. It provides both short-term and long-term credit through regional rural banks. It is concerned with policy planning and operations relating to agricultural credit and credit for other activities in rural India.
(2) Explain the functions of marketing in detail. (Any 8 points expected.)
- Effective marketing is essential for the success of the business. Marketing deals with the exchange of goods and services to satisfy the needs of consumers.
- Marketing functions help to study the needs of the consumers and facilitate to satisfy them. Following are some of the important functions of marketing:
1. Marketing Research:
- Effective marketing is possible when a business takes initiative to identify the needs and wants of the consumers in the market.
- Marketing Research helps to make various decisions regarding the successful marketing of products.
- To identify the needs of the consumers, there is a need to collect information from the consumers and analyze the same known as Market Research.
2. Buying and Assembling:
- It involves collecting raw material from different sources at one place for production.
- This function is important as the quality and price of raw materials determine the cost and quality of the final product.
3. Market Planning:
- Market planning is the process of organizing and defining the business’s marketing objectives and creating strategies to achieve them.
- It is the comprehensive blueprint that will help to draw an outline business’s overall marketing efforts.
4. Product Development:
- Product development and design play an important role in selling the product.
- Product design includes decisions related to quality, standards, shape, design, packing, colour, etc. of the product.
- Good design of the product gives a competitive advantage to the business.
- Product development is a continuous process as the requirements of the customer change from time to time.
5. Standardisation and Grading:
- Standardisation means to determine standards related to the process, size, quality, design, weight, colour, etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers’ loyalty towards the product.
- Grading is the process of the physical classification of products according to similar characteristics and/or quality. Grading is done based on features like size, shape, quality, etc. Generally, grading is done in the case of agricultural products like wheat, rice, potatoes, etc.
6. Packaging and Labelling:
- Packaging means designing the package for the product. It helps to avoid breakage, damage, and destruction of the product. Packing material includes bottles, containers, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam, etc.
- The slip-on in which all this information is provided is called a label and its process is called labeling.
- Packaging and labeling not only protect the product but also act as an effective tool for marketing.
7. Branding :
- Every businessman wants to have a special identity in the market for his product. Branding is the process of giving a special identity to a product through a unique brand name to differentiate it from a competitor’s products.
- In simple words, giving a distinct name to one’s product is called branding. Registered brands are known as Trademarks.
- Trademarks cannot be copied. Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market.
8. Customer Support Service:
- The customer is the king of the market hence business needs to take necessary steps for the satisfaction of the customer.
- Business needs to take every possible effort to provide support services to the customer.
- The business can provide the support services like Pre-sales service, consumer helpline, after-sales service, technical assistance, product demo, etc. to the customers. These services help in getting, retaining, and growing the customers.
9. Pricing of Product:
- Pricing plays an important role in the market where there is cut-throat competition.
- While determining the price of the product businessman needs to consider factors like cost, desired profit, price of the competitor’s product, demand for the product, market condition, etc.
- Business needs to change prices as per the need of the market.
- If prices are too high, it might lose customers, but it might suffer losses if prices are too low. So, deciding the right price needs extensive market research.
10. Promotional Channels:
- Promotion is the process of informing the consumers about the products, their features, uses, prices, etc., and encouraging them to buy these products.
- Advertising, Personal selling, Publicity, and Sales Promotion are some of the important tools of promotion.
- Business uses a combination of all or some of these four methods for promotion as per the need of the business.
- Promotional activities help to increase brand awareness in the market.
- Distribution is the set of activities that are concerned with the efficient movement of finished goods from the place of production to the consumer.
- It includes transportation, warehousing, material handling, inventory control, order processing, market forecasting, packaging, plant and warehouse location, and customer service.
- Transportation means the physical movement of goods from the place of production to the place of consumption.
- Place utility is created by transportation activity.
- Road, air, water, railways, and pipelines are some of the important modes of transportation used by the business.
- There is a time lag between the purchase or production of goods and their sale. It is important to store the goods in a safe place during this time lag.
- Warehouse helps to maintain a smooth flow of goods. It also helps in stabilizing prices in the market.
- The function of warehousing is performed by retailers, wholesalers, and manufacturers.
- Warehousing creates time utility
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Sir if I do this much and all objective and all distinguish then will I be able to score 60+