ANSWER TO SAMPLE PAPER

This document is created with a motive to help students by Answering the Sample papers given in end of
each Chapter of Poonam Gandhi Business Studies 2024-25 Book of Class XII

Ch 1 – Nature and Significance of Management

SAMPLE PAPER – 1
Marking
1. (b) 2. (c) 3. (d) 4. (c) 5. (b) Scheme
Answer – 6
(a) Coordination
(b) Importance of Coordination are as follows – Ans – 6 (3M)

(a) = 1M
i. Growth in size: The need of coordination increases with the increase in size of
an organization. In a large organization with big no. of employees is required (b) 2 M if both
point with
to have coordination in working towards a common goal.
explanation
ii. Functional differentiation: In an organization there are many departments
1 M if points
and sections which deals with different roles and duties, like departments of
head only
finance, HR, Marketing, etc. To link the work of all these organization
coordination is necessary.
(Any two features can be answered)

Answer – 7 Ans – 7 (3M)

(a) Management is a goal oriented process (a) = 1M

(b) Management helps in achieving group goal (b) = 1M

(c) Coordination among different department (c) = 1M

Answer – 8
Ans – 8 (4M)
(a) Management is a group activity.
(a) = 1M
(b) Two other features of Management are as follows –
(b) 2 M if both
i. Management is a continues process: points with
Management is a continues and never ending process. It starts with planning, explanation
then organizing, staffing, directing and controlling, then it restarts with planning 1 M if points
and goes on. It is performed by all manager at all the time. head only
ii. Management is an intangible force:
Management is intangible which has no physical existence but it can be felt by
the employees and managers by seeing the orderliness and systematic working
in the organization.
(Any two features can be answered)
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Answer -9
No, I don’t agree that management is considered as a full-fledged profession,
Ans – 9 (4M)
because of the following reasons –
1 M for
i. No restricted entry: Just like other profession managers don’t have writing ‘No’
compulsion to have a professional degree like MBA. Whereas, profession like 3 M for Points
doctors need MBBS. with
ii. No Compulsory registration: Legally it is not compulsory that manager have explanation

to register in any professional association. Whereas profession like CA have

to be registered in ICAI.
iii. Ethical code of conduct: For every profession there is a set of ethical code
fixed by professional organization, but in case of management there is no
legally compulsion to follow the ethical codes, some manager can’t even
follow these ethics.

In conclusion, we can say management is not fully profession but is on the way to
become as profession in future.
Ans 10 (6M)
Answer – 10
Total 5 points
Importance of Management can be identified through the following quoted lines – in ans.

i. Management Improves efficiency – “As a result of her excellence managerial 6 M if all

skill, the company is able to reduce cost and increase productivity.” points with
quoted lines
ii. It creates a dynamic organization – “make her team aware and guide them to
these changes.” 5 M if all
points but 1
iii. It helps in achieving personal goals – “leads her team in such a manner that
Mistake
individual members are able to achieve their personal goals.”
3 M if all
iv. It helps in achieving organizational goals – “while achieving personal goals”
points
v. It helps in social development –“providing good quality products, adapting without
new technology, creating more employment opportunities.” quoted lines

SAMPLE PAPER - 2

1. (c) 2. (c) 3. (c) 4. (b) 5.(c)

Answer – 6 Ans – 6 (3M)

Yes, it follows the characteristic of “Management is Pervasive” 1 M for

‘Pervasive’
Management activities are performed in all types of organization whether business, 2 M for
non-business, small or big, manufacturing or service organization, government or explanation
private organization. Management is common and present everywhere.
Answer – 7
Ans – 7 (3M)
(a) Directing
(b) Primary activities in the process of directing involves – (a) = 1 M

i. Giving directions or instruction to employees (b) 2 M if any

2 points are
ii. Motivating and supervise the activities performed by employees written
iii. Communicating with them to understand their problems
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Answer – 8
Ans – 8 (4M)
(a) Coordination
(b) Features of coordination identified in above para are as follows – (a) = 1M

i. Coordination integrates group activity (b) 3 M if all 3

points with
Team work requires integration of efforts of all individuals and departments
explanation
ii. It Ensures unity of effort
2 M if points
Individuals and departments depend on each other for the information and without explain
resources to perform their respective activities
iii. It is responsibility of all managers
Coordination is necessary to be followed by all managers at all levels and
departments of the organization

Answer – 9
Ans – 9 (4M)
Target was producing 500 bracelets at a cost of ₹100.
2 M for writing
Here Ashita is effective, but not efficient because she was able to produce required no. underline text
of bracelets within the given time (effective) but she has produced bracelets at higher
2 M for
cost of ₹ 110 (₹ 55,000 /500) so she is not efficient. explanation
Lakshita is efficient, but not effective because she was able to produce at a lower cost
of ₹ 90 (efficient) whereas she is not effective as she was only able to produce 450
units which is less than the target of 500 units

(For definition of Effective and Efficient refer to page no. 4 in the book)

Answer – 10
Ans – 10 (6M)
Objective identified in the para (with quoted lines)
Total 5 quoted
Social Objectives lines in this ans.
 “set up a factory for manufacturing solar lanterns in a remote village as there 6 M if all line
was no reliable supply of electricity in rural areas.” quoted without
 “employ people from the nearby villages as very few job opportunities were mistake
available in that area” 5 M if all line
quoted but 1
Organizational objective mistake
 Profit – “revenue earned by company was sufficient day by day”
(1 M for each
 Growth – “company decided to increase production to generate higher sales” quoted line)
Personal/Human objective
 “decide to provide training to their employees for updating their knowledge
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SAMPLE PAPER - 3

1. (c) 2. (b) 3. (d) 4. (b) 5. (d)

Ans – 6 (3M)
Answer – 6
1 M for writing
Yes, it is right to say that management is life giving element in every business because ‘Yes’ with
In absence of management no organization can run successfully. The major explanation
importance of management are – 2M for writing
points of
i. It helps in achieving group goal importance
ii. Management increases efficiency of an organization
iii. Management creates a dynamic nature
iv. Management helps in achieving personal objectives.

Answer – 7 Ans – 7 (3M)

(a) Coordination (a) = 1 M
(b) Importance of Coordination are as follows –
(b) 3M for points
i. Growth in size: The need of coordination increases with the increase in size head with explain
of an organization. In a large organization with big no. of employees is
2M for points
required to have coordination in working towards a common goal. without
ii. Functional differentiation: In an organization there are many departments explanation
and sections which deals with different roles and duties, like departments
of finance, HR, Marketing, etc. To link the work of all these organization
coordination is necessary.

Answer – 8
Ans – 8 (4M)
He was working at ‘Top level of management’.
1 M for writing
Functions performed by top level of management are as follows – ‘Top level’
i. Responsible for all activities of the business and its impact on society 3 M for writing 4
ii. To integrate diverse elements and coordinate the activities of different points
departments
iii. Analyze the business environment and its implications for survival of the firm
iv. Determining the overall objectives for the organization

Answer – 9
Ans – 9 (4M)
(a) Company is fulfilling ‘Social Objectives’
(a) = 1 M
(b) Quoted lines indicating the Social Objectives are as follows –
(b) 3 M for 3
i. “installed the recycling plant to recycle the waste instead of dumping” quoted lines
ii. “providing employment opportunities to local residents” 1 M for each
iii. “Company started a school nearby for the children of their employee quoted line
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Answer – 10
(a) Aspects of nature of management are as follows – Ans – 10 (6M)

i. Management as an Art: Art can be defined as skillful and personal application (a)= 2M, (b) = 4M
in a creative way to achieve the desires goals.
ii. Management as a Science: Science can be defined as a systematic and
Marks breakdown
organized body of knowledge based on logically observed facts and events.
1 M = ‘as an art’
(b) Features of Science are as follows (any 2 can be answered) – with explanation

i. It is a Systematic body of knowledge 1 M = ‘as a

ii. Principles are based on Experiments and Observations Science’ with
explanation
iii. Universal validity
(explanation on page. 15 of book) 2 M = 2 features
as a Science with
Features of Management as an Art (any 2 can be answered) – explanation

i. Existence of Theoretical knowledge 2 M = 2 features

ii. Personalized application as an Art with
explanation
iii. Based on practice and creativity
(explanation on page. 16 of book)
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Ch 2 – Principles of Management Scheme

SAMPLE PAPER - 1

1. (b) 2. (c) 3. (a) 4. (b) 5. (c)

Answer – 6
Three scientific principals are as follows –
Ans – 6 (3M)
i. Science, not rule of thumb: any 1 line of each
There should be use of science for each and every element of management. principle should
match with the
There is only one best way method to maximize efficiency and this method value points
could be developed by study and analysis, not by rule of thumb. Manager
3 M if all principle
should not take decisions based on his intuitions, will or experience.
with correct
ii. Harmony, not discord: explanation
Management should share gain of the company with workers also. Workers value points on
should work hard and willing to accept changes for the good of company. Pg. 77-78 of book
Mental Revolution in management and workers should transform their
thinking. Integration between managers and workers.
iii. Development of each and every person to his or her greatest efficiency and
prosperity:
Worker’s training is essential, Each person should be scientific selected for a
job, Work assigned to workers should suit their capabilities.
Ans – 7 (3M)
(Any three principles can be answered here)
1 M = explaining
Answer – 7 ‘unity of
command’
The principle of unity of command suggests that there should be one boss to whom
the employee is answerable to. Whereas, in functional foremanship there are at least 1 M = explaining
‘functional
eight bosses under sub department, which are assigned to a single employee.
foremanship’
This technique clearly violates the principle of unity of command as it is a contrast 1 M = writing
with what the principle says. Hence, an organization cannot have both principle and comparison of
the technique as it contradicts each other. both

Answer – 8
(a) Principle of ‘Division of work’ Ans – 8 (4M)

(a) = 1M
(b) Two other principles of management are as follows –
(b) 1½ M for each
i. Authority and Responsibility: principle explain
Authority means power to take decision, Responsibility means obligation to
Refer to Pg. 94 of
complete the job assigned on time. According to this principle there must be the book
balance or parity between the authority and responsibility. Allocation of
authority as per work assigned to an individual.
ii. Principle of Order:
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Fixed and right place should be assigned to each and every man and material,
No wastage of time in search of a person or material. Systematic and orderly
arrangement of physical and human resources.
(Any two principles can be explained here)

Answer – 9 Ans – 9 (4M)

(a) Unity of Command (b) Authority and Responsibility 1 M for each (a),
(b) , (c) , (d)
(c) Principle of Order (d) Principle of Equity
Answer – 10
Taylor and Fayol’s Principles are complementary to each other because both have Ans – 10 (6M)
relevance in the business due to following reasons:
Total 5 points in
i. The main aim of Taylor’s as well as Fayol’s principles is maximizing the this answer
efficiency. Give marks as per
ii. Both insist on cooperation between employees and employers. your wish
iii. Both give more importance to organizational interest over the individual Refer to Pg. 96 of
interest. the book
iv. Both suggest division of work for specialization.
v. The principles of both are used as basis for research in the field of
management studies.

SAMPLE PAPER - 2

1. (c) 2. (d) 3. (c) 4. (c) 5. (b)

Answer – 6
Features of Management are as follows –
Ans – 6 (3M)
i. Universal Applicable (Pervasive):
1 M for each
The principles of management are universal that means they can be applied to
feature with
all types of organization irrespective of their size and nature. explanation
ii. Flexible:
Refer to Pg. 63 of
Management principles are not rigid set of statements. These can be modified the book
by the managers who are using them as per the requirement of the company.
iii. Contingent:
These principles are contingent which depend upon the situation prevailing in
the organization. Application of management principles varies from situation
to situation.
Ans – 7 (3M)
(Any three features can be answered here)
1 M for writing
Answer – 7 Subrogation of
Individual interest
Principle followed by Vaibhav – “Subrogation of Individual interest to General interest”
2 M for
According to this principle, Organization’s interest is more important than personal Explanation
interest of employees. While taking decisions manager must give priority to benefits Value points on
of organization and not to personal benefit. Manager should not take unfair decisions Pg. 94 of book
by giving benefits to their relatives. Employees must sacrifice their leaves or attending
family functions, if organization needs the presence of employee.

Answer – 8
School is following ‘Principle of Scalar Chain’
Scalar means a line of authority or chain of supervisors from highest to lowest rank.

Let us consider a situation where A is head of two

departments, one department consist of B, C and another
department consist of D, E. According to Scalar chain
principle if C want to contact E, then information has to move
through C – B – A – D – and then E. If this chain is broken
then there will be communication gap in the organization.

But in case of emergency C can contact E through a short cut

which is called ‘Gang Plank’. Gang plank permits direct
communication between two employees without following
scalar chain.

Answer – 9
Simplification and Standardization of Work

According to this technique of scientific management given by F.W. Taylor. There

should be a standard of output, which is maintained by right selection of tools,
equipment and use if machinery. It refers to setting up standards for size, type,
weights, measures and quality of product.
The Objective of standardization are as follows –
i. To reduce a given line of products to fixed type, size and characteristics
ii. To allow interchangeability of manufactured parts and output among different
departments and branches.
iii. To maintain quality standard
iv. To setup performance standards for men and machine

Answer – 10
i. Division of Work
According to this principle given by Henri Fayol, there should be division of
work in smaller units by creating departments. Allocation of work should be
done as per the skills and capabilities of an employee.
ii. Principle of Order
According to this principle, there must be a fixed place to keep every material
and thing used in the organization and fixed place or seat for every employee,
so that there is no wastage of time in search of any tool, material or a person.
iii. Esprit de Corps
According to this principle, Management must encourage team spirit, unity
and harmony. A manager should replace “I” with “We”. This will give rise to
mutual trust and belongingness among team members.
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SAMPLE PAPER – 3

1. (c) 2. (d) 3. (c) 4. (b) 5. (a) Ans – 6 (3M)

Answer – 6 1 M for writing

‘cooperation not
Scientific Principle discussed here is ‘Cooperation not Individualism’ individualism’

This principle is extension of harmony not discord. According to this principle there 2 M for
explanation
should be welcome of suggestion given by employees and open communication
between managers and workers. Equal division of work and responsibility between (At least 1 line
them. Management should work side by side with workers by sharing of work. should match)

Answer – 7
Ans – 7 (3M)
Technique of scientific management – ‘Functional foremanship’
Foreman is lowest ranking manager ang highest level of worker, who have direct ½ M ‘functional
foremanship’
contact with workers. Forman is the linking between management and workers.
1½ M = flowchart
Factory Manager
1 M for technique
explanation
Planning Incharge Production Incharge

Route Instruction Time and Repair

Disciplinarian Gang boss Speed boss Inspector
Clerk Card Clerk Cost Clerk boss

Workers

According to this technique, each department work should be subdivided into

planning and execution, and each sub department should have 4 foremen with
specialized work, in total 8 foremen. Workers should be free from burden of planning
by separation of planning and execution. Ans – 8 (4M)

Answer – 8 (a) 1½ M for

explanation
(a) Unity of Command
½ M for diagram
According to this principle, a subordinate
(b) 2 M for
should get commands from only one explanation
superior, and accountable to that superior
only. This reduce confusion among Refer to Page. 94
– 95 for value
employees because if they will get points
command from more than one boss, they
will be confused to whom to listen.

(b) Principle of Order

According to this principle, there should be fixed place for each man and material. All
tools and equipment should be kept in order. Each manager and employee should
also have a fixed cabin or seat, so that there is no wastage of time in search of any tool Marking
or any person. Scheme

Answer – 9
Principle – ‘Subrogation of Individual interest to general interest’ Ans – 9 (4M)

According to this principle given by Henri Fayol, Organizations’ interest is more 1 M for writing
principle name
important than personal interest, while taking decisions managers must give priority
to benefit of organization and not for personal benefit. Mangers should not take unfair 1½ M for
decisions by giving benefit to their family members or relatives. explanation

1½ M for writing
Positive effect of following this principle (any 2) –
positive effect
i. Achievement of organizational goal
ii. Coordination between individual and organizational goal
iii. No unfair practices in organization
iv. No misuse of authority or power
Ans – 10 (6M)
Answer – 10
1 M for each
Principles of Henri Fayol violated in above case (with quoted lines) –
principle with
i. Division of Work –“company directed its existing workforce to work overtime” quoted lines

This line indicate that work was not divided properly as per specialization (5 principles are
ok to reward 6M)
ii. Unity of Command –“workers work under more than one superior”
OR
iii. Unity of Direction –“resulted in lot of overlapping and wastage”
3 M for
iv. Principle of Discipline –“workers were becoming indiscipline” identifying 3
principles
v. Esprit De Corps –“the spirit of team was also reducing”
3 M for writing
vi. Subrogation of Individual Interest to general interest –“workers were feeling
explanation
cheated” this quoted line indicate that management has not taken care of
organizational objective. So, workers are feeling cheated

OR
This answer can be written in 2 format also, Example –
nd

Any 3 Principles are identified (from given above) and explanation of each is given
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Ch 3 – Business Environment
Scheme

SAMPLE PAPER – 1

1. (d) 2. (a) 3. (b) 4. (c) 5. (d)

Answer – 6
The dimensions of business environment discussed above are - Ans – 6 (3M)

i. Social Environment 1½ M for writing

about social
Social Environment includes all those social factors which is influenced by people and environment
society. It consist of many factors like – change in demand, festivals and traditions,
1½ M for writing
values, social trends, population, literacy of people, habits of people, etc. about
Technological
ii. Technological Environment
Technological environment includes forces related to scientific improvements and
innovations which provide new ways of producing goods and services. I also include
new ways and methods of operating business.

Answer – 7 Ans – 7 (3M)

The dimensions of business environment discussed above are - 1 M for writing
i. Legal Environment underline text

Legal environment includes various laws and legislative act, Administrative 1½ M for both
order issued by government authorities, Court judgement and the decisions explanation

regarded by various commission and agencies of government. ½ M for examples

Example – Companies Act 2013, Trade Union Act, etc. of both
ii. Political Environment (cut ½ M if
It includes political conditions such as stability and peace in the country, the example not
given)
Attitude of the government representatives holds towards business and
government schemes and policies, etc.
Example – Swachh Bharat Abhiyaan started by BJP government
Answer – 8
(a) Demonetization
Ans – 8 (4M)
(b) Features of Demonetization are as follows –
(a) = 1M
i. It is tax administrative measure:
(b) 3 M for 3
Due to demonetization, people had to declare their cash holding to get it points with
exchanged from the bank. So, those have black money had to declare their explanation
unaccounted wealth and pay taxes with penalty.
ii. No tolerance of tax evasion: Demonetization also indicated that government
will no longer accept tax evasion.
iii. Creating cashless/digital economy:
Due to non-availability of cash at the time of demonetization, people started
shifting to digital payment options.
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Answer – 9
Two points of importance of understanding business environment can be identified Ans – 9 (4M)
through following quoted lines –
1 M for writing
underline text
i. Grab the Opportunity and first mover advantage – “first to exploit the opportunity,
arising due to increasing trend of digitalization” 1M explanation of
Opportunity refers to positive external trends or changes that may improve the both
performance of a firm. By identifying opportunity at first, a firm can capture a big 1M quoted line of
share in the market. both written

ii. Assist in plan and policy formation – “they laid down a plan to hire more people”
Scanning business environment helps a business organization to make policies and
strategies to be implemented so that there can be maximum output from plan.

Answer – 10
Ans – 10 (6M)
The particular feature of the business environment highlighted in the given paragraph
1 M = ‘Dynamic’
is “Dynamic nature”
3 M for feature
Dynamic refers to the constant and continuous change or fluctuation in the business explanation
environment. It implies that various factors in the business environment are not stable 2 M for (para 2)
or static but undergo frequent changes. These changes can occur in the economic, comparing the
technological, social, political, legal or competitive aspects of the business situation

environment. Refer to Page. 134

of book
The paragraph emphasizes that Mr. Raj Sinha, the General manager realizes the
dynamic nature of the business environment. He acknowledges that plans made
through understanding of the business environment factors may provide temporary
relief, but due to the persistent and unpredictable changes in environment, long term
care and adaptability are necessary for sustainable business growth.

SAMPLE PAPER – 2

1. (b) 2. (a) 3. (a) 4. (b) 5. (a)

Answer – 6 Ans – 6 (3M)

Feature of business environment discussed here – ‘Relativity’ 1 M = ‘Relativity’
Business environment differs from country to country, region to region as political 1 M for definition
conditions, cultures, language, consumer preference are different in different explanation
countries.
1 M for example
Example – there may be more demand of sarees in India compared to UK or US
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Answer – 7
Dimension of business environment discussed in given para – Ans – 7 (3M)

i. Political Environment 1½ M for each

point with
It includes political conditions such as stability and peace in the country, explanation
Attitude of the government representatives holds towards business,
government schemes and policies, etc.
ii. Technological Environment
Technological environment includes forces related to scientific improvements
and innovations which provide new ways of producing goods and services. I
also include new ways and methods of operating business.

Answer – 8 Ans – 8 (4M)

Dimension of business environment discussed in given para – 1 M for both
underline text
i. Social Environment
Social Environment includes all those social factors which is influenced by people and 2 M for both
society. It consist of many factors like – change in demand, festivals and traditions, point explanation

values, social trends, population, literacy of people, habits of people, etc. 1 M for both the
Example – Increase in demand of white shoes because of social trend examples

(Cut 1 M if not
ii. Technological Environment written example)
Technological environment includes forces related to scientific improvements and
innovations which provide new ways of producing goods and services. I also include
new ways and methods of operating business.
Example – Online bookings of tickets

Answer – 9
(a) Dimension of business environment discussed in given para (with quoted lines) Ans – 9 (4M)

i. Technological Environment –“Launched in August 2010, it is a consumer brand (a) 3 M if all 3

dimensions with
of payment company one97 communication” quoted lines
ii. Social Environment –“Paytm has targeted each and every person irrespective of
(b) = 1 M
age, income, gender or status as its target customer base”
iii. Political Environment –“The government is propagating cashless economy (cut ½ M if not
written date of
system and this has helped Paytm in its endeavor”
demonetization)
(b) Demonetization is referred to the act of removing a currency’s legal tender and
circulation in the economy. 8 November 2016 was the day when ₹500 and ₹1000
denomination notes were withdrawn from circulation. It resulted in withdrawal of 86%
currency in circulation. People were advised to go to the bank to replace old notes
with new currency in a limit.
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Answer – 10
(a) Concept discussed above is Business Environment. Ans – 10 (6M)

Feature of business environment discussed above is Specific and General forces (a) 2M + (b) 4M

Business environment includes both specific and general forces. Specific forces effect (a) 1 M for writing
underline text
business directly and immediately in their day to day working. These includes supplier,
investor, customer. General forces are economic, social, political, legal, technological 1M = about
conditions that have impact on all the enterprises and affect individual firms only specific force +
general force
indirectly
(b) 1 M for each
(b) Importance of business environment are as follows – point with
explanation
i. Enables the firm to Identify the Opportunity and getting first mover advantage
ii. It helps in Assisting in planning and policy formation
iii. Helps the firm to identify the threats and early warning signals
iv. It helps in Coping with Rapid changes
(any 4 points can be answered here)

SAMPLE PAPER – 3

1. (c) 2. (b) 3. (c) 4. (a) 5.(d)

Answer – 6
Ans – 6 (3M)
(a) Dimension of business environment discussed above are –
(a) = 1½ M
i. Political Environment, and ii. Economic Environment:
(b) ½ M for
(b) Feature of business environment discussed –‘Dynamic nature’ writing ‘Dynamic’

Business Environment is highly flexible and keeps on changing. Whether in terms of 1 M for feature
technology, shift in consumer preference, government policy, etc. that is why it is explanation

important for businessman to scan the environment continuously.

Answer – 7
(a) It is important for managers to foster an ability to envision upcoming opportunities Ans – 7 (3M)
because It enables firm to get first mover Advantage (a) ½ M for
underline text
Opportunities refers to positive external force which can improve the performance of
business, if these opportunities were identified on time. The business man who are 1M = explanation

able to understand and scan the business environment at early stage get maximum (b) 1½ for any
benefit or they can capture a big share in the market. They can also go much ahead of three points
written
their competitors.
Refer to Page. 135
(b) Prior knowledge of potential risks helps the business managers in following ways – of book
(write importance of business environment)

i. It helps to identify the threats and early warning signals

ii. It helps in coping with rapid changes in the world
iii. It improves performance of the business
(any 3 points can be answered here)
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Answer – 8
Dimensions of business environment discussed above are – Ans – 8 (4M)
i. Political Environment 1 M for writing
It includes political conditions such as stability and peace in the country, the underline text
Attitude of the government representatives holds towards business and 2 M for both
government schemes and policies, etc. explanation
Example – Skill India movement started by government 1 M for examples
of both
ii. Technological Environment
Technological environment includes forces related to scientific improvements (cut 1 M if
example not
and innovations which provide new ways of producing goods and services. I
given)
also include new ways and methods of operating business.
Example – Including more technology focused interactive sessions

Answer – 9
Ans – 9 (4M)
(a) Business environment means the aggregate of all the forces, factors and
instructions which are external to business and beyond the control of an individual (a) = 1 M
business organization. (b) 2 M for
explanation of
(b) Threats are the negative external forces which that may hinder a business threats and
performance. quoted line –“in coming years, shopping at a mall will not be necessity Opportunities
for the buyers as purchases can be made online from anywhere and at anytime”
1 M for both
Opportunities are the positive external forces that improves the performance of any quoted lines
business. quoted line –“As a result, the company gains enormously by getting the first
mover advantage”

Answer – 10
Feature of business environment discussed in given para are – Ans – 10 (6M)
i. Relativity: This feature of says that business environment differs from country to 1M = ‘Relativity’
country, region to region as per the situation prevailing there. 1M = explanation

In the given situation, “Mc Donald changes its product menu to accommodate the 1M = quoted line
vegetable burger given the large vegetarian population”. This shows that business
1M = ‘Dynamic’
environment changes from place to place .
1M = explanation
ii. Dynamic: This feature says that business environment is highly flexible and keeps 1M = quoted line
on changing time to time.

In the given situation, “Mc Donald started its business in India in the year 1996”. By
this we can say that business environment changes from time to time. The business
environment now is far different from what it was in the year 1996.