12th OCM Question Paper 2022 Maharashtra Board Pdf

Maharashtra State Board Class 12th OCM Question Paper 2022 with Solutions Answers Pdf Download.

Class 12 OCM Question Paper 2022 Maharashtra State Board with Solutions

Time: 3 Hours
Max. Marks: 80

Note:
(i) All questions are compulsory.
(ii) figures to the right indicate full marks for the questions.
(iii) figures to the left indicate question numbers.
(iv) Answer to every question must be started on a new page.

Question 1.
[A] Select the correct option and rewrite the sentences: (5)
(1) Member of organisation should receive orders from ____________ . (b)
(a) many superiors
(b) one superior
(c) all superiors
Answer:
(b) one superior

(2) The functions of management end with ____________ . (c)
(a) Directing
(b) Staffing
(c) Controlling
Answer:
(c) Controlling

(3) Start up India is an initiative of the ____________ . (d)
(a) RBI
(b) Government of India
(c) WorLd Bank
Answer:
(b) Government of India

(4) Making timely payment of proper taxes is the responsibility of organisation towards ____________ . (c)
(a) shareholders
(b) customers
(c) government
Answer:
(c) government

(5) In online shopping customers put the product in the ____________ . (b)
(a) shopping mall
(b) shopping cart
(c) shopping bag
Answer:
(b) shopping cart

[B] Match the pairs: (5)

Group ‘A’	Group ‘B’
(a) Agra tourism	(1) Tangible in nature
(b) Business Service	(2) 1930
(c) Scientific management	(3) Use of Digital Media theory
(d) Sale of Goods Act	(4) Rural tourism
(e) Digital marketing	(5) Henry Fayol
	(6) 1956
	(7) Intangible in nature
	(8) Use of traditional media
	(9) Medical tourism
	(10) F. W. Taylor

Answer:

Group ‘A’	Group ‘B’
(a) Agra tourism	(4) Rural tourism
(b) Business Service	(7) Intangible in nature
(c) Scientific management	(10) F.W. Taylor
(d) Sale of Goods Act	(2) 1930
(e) Digital marketing	(3) Use of Digital Media

[C] Correct the underlined word and rewrite the following sentences: (5)
(1) Decentralisation means concentration of powers and authorities at the specific position.
Answer:
Centralisation

(2) Overdraft facility is available for savings bank account holder.
Answer:
Current

(3) In India sellers are widely dispersed and are not united.
Answer:
Consumers

(4) KPO includes less knowledge based and specialised work.
Answer:
More

(5) Insurance helps to maximise the risks in the business.
Answer:
Minimise

[D] Arrange in proper order: (3)
(1) Controlling, organising, planning.
Answer:
Planning, Organising, Controlling.

(2) Accident, taking the policy, claim.
Answer:
Taking the policy, Accident Claim.

(3) Placing an order, cash on delivery, registration.
Answer:
Registration, Placing an order, Cash on delivery.

(4) District Judge, Supreme Court Judge, High Court Judge.
Answer:
District judge, High Court Judge, Supreme Court Judge.

(5) Grading, Market planning, Distribution.
Answer:
Market Planning, Grading, Distribution.

Question 2.
Explain the following terms/concepts (Ang FOUR): (8)
(1) Organising
(2) Insurance
(3) E-business
(4) PLace concept of market
(5) LokAdalat
(6) Outsourcing
Answer:
(1) Organising:

1. It is the process of identifying the needs and arrangement of resources in such a way to achieve organisational objectives.
2. It helps to execute the plan.
3. Helps in Optimum Utilization of Resources.
4. Helps in smooth and effective functioning of organisation.

(2) Insurance:

1. It is a contract between insurer and insured whereby the insurer agrees to compensate the insured against loss.
2. It helps to recover financial losses.
3. For getting benefit, insured has to pay a certain fixed sum of money on timely basis to insurer.
4. Guarantee of putting assured in same financial position in which he/she/legal entity was immediately prior to the happening of the uncertain event.

(3) E-business:

1. It is conducted with the help of internet.
2. Helps access in the entire field like marketing, production, distribution, communication etc.
3. Creates platform for national and international trading.
4. Derived from e-mail and e-commerce.
5. Increased speed for global access, facilities etc.

(4) Place concept of market:

1. Location where buying and selling of goods and services takes place.
2. Meeting place for buyer, seller and other intermediaries.
3. In olden days, it was used to define market.
4. But market has wider meaning than just a place due to modernisation, information and technology.

(5) LokAdalat:

1. Effective and economical system for quick redressal of public grievances.
2. Referred to as ‘people’s court’.
3. Established by Government to settle dispute through compromise.
4. Issues are discussed on the spot and decisions are taken immediately.
5. Resolution of disputes by Lok Adalat gets statutory recognition.

(6) Outsourcing:

1. Process of contracting some business functions to specialized agencies.
2. Emphasis on core process rather than the supporting ones.
3. Low manpower Cost.
4. Access to professional expert and high Quality services.
5. Threat to security and confidentiality.

Question 3.
Study the following case/situation and express your opinion (Any TWO): (6)
(1) In ABC company, Mr. Patil gives instructions ttf the employees working under him, provides guidance and motivates them for their best performance. On the other hand, Mr. Joshi takes effort to harmonize work done by the employees of different departments while achieving organisational goal. Mr. Dubai is looking after the arrangement of required resources to the business organisation. Mention the name of employee engaged in the following functions:
(a) Organisation
(b) Direction
(c) Co-ordination
(2) Mr. Rajaram is young M.Sc (Agri) degree holder, Mr. Sitaram is commerce graduate. Mr. Rajaram-is willing to start Agra tourism center at his village. Mr. Sitaram is willing to work as an accountant in private company.
(1) Find out desire of Mr. Sitaram.
(2) What is the desire of Mr. Rajaram?
(3) Which qualification is acquired by Mr. Sitaram?
(3) Ajay purchases some electronic appliances online from www.amazon.com. At the same time Sanjay purchased old bike from olx.com.:
(a) Which website is related to C2C?
(b) Which website is related to B2C?
(c) What first step does Ajay need to follow?
Answer:
(1) (a) Mr. Dubai
(b) Mr. Patil
(c) Mr.Joshi

(2) (1) To work as an accountant in Private Company.
(2) To start Agro-tourism center.
(3) B.Com / Commerce Graduate.

(3) (a) Olx.com
(b) www.amazon.com
(c) Registration

Question 4.
Distinguish between (Any THREE): (12)
(1) Planning and Controlling
(2) Life Insurance and Fire Insurance
(3) District Commission and National Commission
(4) Staffing and Directing
Answer:
(1) Planning and controlling

	Planning	Controlling
Basis of difference Meaning:	It means to decide the way how to do, when to do, what to do and who is to do the actual work.	Comparing actual performance against standard performance.
Objective:	To set goals and Choosing the means to achieve These goals.	To ensure that objective are achieved according to the plan.
Area of function:	Identify alternative courses of action for attending objectives.	Comparing actual performance against standards, and taking corrective action wherever necessary.
Factors:	Internal and External factors are Considered in planning process.	Internal and External factors are consider for Taking corrective measure.
Order:	First function of management process.	Last function of management process.
Resources:	Done as per requirement and available resources.	Controlling is related with all the resources as it helps to achieve the given target.

(2) Life Insurance and Fire Insurance

	Life Insurance	Fire Insurance
Basis of difference Meaning:	A contract which says the insurance company take up the obligation to pay a lump sum amount either on the death of the client or on maturity of the policy whichever is earlier for a consideration (Premium).	A contract which gave assurance to the policy holder that the insurance company will provide coverage in the occurrence of fire and related accidents.
Policy taken by:	For his own life and/or for his family members.	Policy can betaken by an individual for their properties or by businessman for their goods, properties, businessman.
Subject matter:	Life of insured is subject matter.	Goods and assets, or property of the insured is the subject matter.
Insurable Interest:	It must exist at the time of contract.	It must be exist at the time of Contract as well as at the time of loss.
Tenure:	Policy can be taken for any duration of time or until the death of the policy holder.	Fire insurance policy is for short term duration. It may range from one month to a year. Normally it does not exceed in one year.
Compensation:	It is given either on the maturity of the policy or on the death of the person or whichever is earlier.	Compensation is paid only if there is loss causing event during the term of the policy.
Policies:	No limitation for the number of policies.	Only a single policy can be taken but the option for double insurance is available.
Beneficiary:	Can be insured or else the nominee or the legal heir on the death of the assured.	Beneficiary is insured person or company.

(3) District Commission and National Commission

	District Commission	National Commission
Basis of difference Meaning:	A consumer disputes redressal forum at the district level established by the State Government is known as District Commission.	A consumer disputes redressal forum at the national level established by Central Government by notification is known as National Commission.
President:	A person who is sitting or retired or qualified to be District Judge.	A person who is or has been a Judge of Supreme court. Shall be appointed by the central government by notification.
Members:	Not less than two members and not more than such number which is prescribed in consultation with the Central Government.	Not less than four members and not more than such number which may be prescribed.
Tenure:	The term of office of every member of the District Forum shall be 5 years or upto the age of 65 years, whichever is earlier.	The term of office of every member of the National Commission shall be 5 years or upto the age of 67 years and president upto 70 years , whichever is earlier.
Area covered:	It covers particular district.	It is extended to the whole of India. It covers the entire country.
Monetary Jurisdiction:	To entertain complaints where the value of goods and services should not exceed ₹ 1 crore.	To entertain complaints where the value of goods and services should not exceed ₹ 10 crore.
	Appeal: Appeal against the district commission can be made to the State commission.	Appeal against the National commission can be made to the Supreme Court.

(4) Staffing and Directing

	Staffing	Directing
Basis of difference Meaning:	Staffing is the process of filling positions, selection, development, training and retaining the recruited employees.	Directing is the process of instructing, motivating, guiding and leading people to work to the best of their capabilities in order to achieve the predetermined goals and objectives.
Objective:	To appoint right type of people at the right positions at the right time.	Objective of directing is to direct the’ subordinates to get the things done in the right manner.
Areas of function:	Recruitment, selection, training, development and promotion of employees, compensation of human resources communicating and inspiring are the areas covered under staffing.	Instructing, guiding and motivating employees are the functions that comes under directing.
Factors:	Most concerned with internal factors.	Directly concern with internal factors i.e. human resources.
Order:	It follows organising function.	It follows organising and Staffing for execution of planning.
Level of management training:	Middle level management is related with recruitment, training and selection. Top level management is concerned with promotion and compensation.	Middle level management is involved in directing the employees.
Resources:	It is related to human resources.	It gives direction for the best utilization of resources.

Question 5.
Answer in brief (Any TWO): (8)
(1) Explain 4p’s of product marketing mix.
(2) Explain any four responsibilities of business towards employees.
(3) State any four rights of consumers.
Answer:
(i) 4 P’s of product marketing mix: It is a set of marketing tools that the firm uses to put the right product, at right time, at right price in right place to pursue its marketing objectives in the target market, ® Product: A product refers to goods or services that are offered to the customers for sale and are capable of satisfying the needs of the customer or a group. The product can be intangible or tangible as it can be in the form of services or goods. It is important to do extensive research before developing a product. Impact of product decides business success.

(ii) Price: The price of the product is basically the amount that a customer pays for the product. Price is the most critical element of a marketing plan because it may affect demand and
profitability of the business. While deciding the prices, the value and utility of the product to its customers are to be considered. ..

(iii) Place: Placement or distribution is a very important part of the marketing mix strategy. Business should distribute the product in a place that is easily accessible to potential buyers/ customers at the right place.

(iv) Promotion: It is a marketing communication process that helps the company to publicize the product and its features to the potential buyers and convince them to buy. The promotion might include direct marketing, advertising, personal branding, sales promotion, personal selling, etc. but it also depends upon budget, the message business wants to convey to the target customer.

(2) Responsibilities towards employees:
The survival and success of an organisation largely depend on the efficiency of its workforce. The government has passed various labour laws to safeguard the interest of employees. Responsibility of business organisations towards employees can be explained as follows:
(i) Job Security: The organisation should provide job security to its employees. The workers should not be kept temporarily for a long time. They must be given assurance of jobs. So that it raise their morale and wilLing to work with commitment and dedication.

(ii) Fair Remuneration: Workers should be paid adequate wages and other incentives like a bonus, medical allowance, travelling allowance, etc. Suitable and accurate payments often results in higher motivation to the workforce. There should be increment and revision in wages.

(iii) Good Working Condition: The workers should be provided with good working conditions. There should be adequate lighting and ventilation. Water, noise, air and sound pollution should be avoided. There should be proper working hours with rest pauses or with breaks.

(iv) Healthy and Safety Measures: The company should take adequate measures to protect the health of its employees. They should be provided with canteen facilities and medical facilities. Proper maintenance of machines and building must be done to prevent accidents and control pollutions.

(v) Proper Promotion Policy: There must be proper personnel policies in respect of transfers,promotions, recruitment, training, etc. For instance, there should be sound promotion policy.
1. Promotion by Seniority at lower levels.
2. Promotion by Merit at higher levels.

(vi) Proper Grievance Procedure: There should be a proper grievance procedure to handle employees’ complaints. Any complaint of the employee must be immediately sorted by investigation and necessary actions or a suitable grievance procedure.

(vii) Health and safety Measure: Large Organisations must provide proper health and hygiene facilities to the employees such as: Canteen facilities, medical facilities, proper sanitation facility etc. Safety equipment like hand gloves, safety shoes, helmets, goggle, marks etc. should be provided to prevent accidents.

(3) Rights of Consumers: Means right to be protected against the marketing of goods and services, which are hazardous to life. Goods and services availed should not only meet their immediate needs, but also fulfill long term interests.
Every consumer should aware of his rights and use of them in his daily life for protection.
(i) Right to Safety: Protected against the goods and services, which are harmful for human life. Before purchasing, consumers can insist on the quality of the products as well as on the guarantee of the products and services to.the seller. They should preferably purchase quality marked products such as ISI.AGMARK, etc.

(ii) Right to be Informed: Means right to be informed about the quality, quantity, purity, standard and price of goods so as to protect the consumer against unfair trade practices. Consumer should insist on getting all the information about the product or service before making a choice or a decision.

(iii) Right to Choose: It is related to free market economy concept. Where consumer should have the right to choose from a variety of goods and s in a competitive price. This right can be better exercised in a competitive market where a variety of goods are available at competitive prices.

(iv) Right to be Heard: Every organisation should listen and solve the complaints of consumer. This means the consumer will get due attention to express their grievances at a suitable forum. Consumer also give suggestions to manufacturer or trader on certain matters such as quality, quantity, price etc.

(v) Right to Consumer Education: Means the right to acquire the knowledge and skill to be an informed consumer throughout life. This right create consumer awareness so they can make rational choice of goods and services and protect his rights and interest from the exploitation of unscrupulous businessman.

(vi) Right to redressal: Means right to seek redressal against unfair trade practices. It also includes right to fair settlement of the genuine grievances of the consumer. Consumers must make complaint against redressal machinery such as district commission, state commission and national commission for their genuine grievances.

Question 6.
Justify the following statements (Any TWO): (8)
(1) Principles of management are flexible in nature.
(2) There are many ways and means to consumer protection.
(3) Principle of subrogation is applicable to all contracts of indemnity.
(4) Marketing is significant to the consumers.
Answer:
(1) Principles of management are flexible in nature:
(i) It means they can be changed or modified according to the situation.

(ii) Acts as guidelines of managerial decision making and action.

(iii) it evolved through observation, experiment and analysis.

(iv) Principles of management are flexible guidelines providing ample scope for making changes according to the nature of the enterprise, its size, competitive situation, etc. For instance, in the context of the present business scenario. In many places, the ‘family management has been substituted by professional management.

(v) Modern business world is Dynamic ,etc. In today’s business scenario, the modern business world is very dynamic in nature. The situations in a business enterprise keep on changing continuously. Since, principles of management although fundamental are not rigid, they can be changed or modified according to the situation and requirements of the organisation. Hence, they are flexible in nature.

(2) There are many ways and means to consumer protection:
(i) Lok Adalat: It is a effective and economical system for quick redressal of the public grievances. The aggrieved party can directly approach the adalats with his grievance and his problems are discussed on the spot and decisions are taken quickly.

(ii) Public interest litigation (Janahit Yachika): In this scheme any person can move to the court of law regarding a matter of general public interest. It provide legal remedy to unrepresented groups. Such groups may consist of consumers, minorities, poor persons, environmentalists and others. Any person or organisation, though not a party to the grievances, can approach the court for remedial action in case of any social atrocities.

(iii) Redressal Forums and Consumer Protection Councils: Ajudicialsystem made by government to deal with the consumer grievances and disputes at district level state level and national level. Under the Consumer Protection Act These are known as district forum, state consumer disputes redressal commission (state commission) and national consumer disputes redressalcommission (national commission). Any individual consumer or association of consumers can lodge a complaint with the district, state or national level forum, depending on the value of goods and claim for compensation.

(iv) Awareness Programme: To improve the level of awareness among the consumers, the government of India has initiated various publicity measures. It regularly brings out journals, brochures, booklets and various posters depicting the rights ‘and responsibilities of consumers, redressal machineries etc. It observes World Consumer Right Day on 15 March and National Consumer Day on 24 December.

(v) Consumer Welfare Fund: They provide financial assistance to strengthen the voluntary consumer movement particularly in rural areas. This funds are use for training and research in consumer education, complaint handling, counseling and guidance mechanisms etc.

(vi) Legislative Measures: A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unscrupulous and unethical practices of the businessmen. Some of these acts are as follows
(i) Sales of Goods Act, 1930
(ii) Agricultural Products (grading and marketing) Act, 1937
(iii) Industries (development and regulation) Act, 1951
(iv) Prevention of Food Adulteration Act, 1954
(v) Essential Commodities Act, 1955
(vi) The Standards of Weights and Measures Act, 1956
(vii) Monopolies and Restrictive Trade Practices Act, 1969
(viii) Prevention of Black Marketing and Maintenance of Essential Supplies Act, 1980
(ix) Bureau of Indian Standard Act 1986.

(3) Principle of Subrogation:

1. Applicable to all contracts of indemnity.
2. This principle is only applicable when the damage property has any value after the event causing the damage.
3. After the insured is compensated for the loss due to damage of the property insured, then the right of ownership of such property passes on to the insurer.
4. To make up for the compensation paid. Your insurer can claim the (insured) right over that third party. You surrender your rights over the third party to the insurer. This transfer of all the rights, and remedies, from insured to insurer is called subrogation.

(4) Marketing is significant to the consumers:
(i) Promotes Product Awareness: Marketing is use to promote product and services among the customers. It helps the consumers to compare product features, price, availability, etc so that they can make rational choice.

(ii) Provide Quality Product: Consumers are getting easy access to the information about the products and services available in the market. It creates moral pressure on the businesses to provide quality goods to the consumers.

(iii) Provides Variety of Products: Marketing creates awareness among the consumers about the product Businessman needs to provide variety of goods to cater to the needs of the different market segments of the consumers. Variety may change according to the price, size and quality of the product.

(iv) Helps in Selection: Marketing helps the consumer to choose the best products and services from the different options available.

(v) Consumer Satisfaction: The first and foremost objective of any sound marketing policy is to satisfy the advertising, assurance of good
quality product to consumer. Marketing leads to consumer satisfaction through honest advertising, assurance of quality products and availability of innovative products. Thus, marketing takes every effort to satisfy the consumer.

(vi) Regular supply of goods: Through efficient distribution channel of marketing regular supply of goods is possible. It helps to maintain the balance between demand and supply. It is the results into stable prices.

Question 7.
Attempt the following (Any TWO): (10)
(1) Explain any five principles of management given by Henry Fayol.
(2) Explain any five social responsibilities of a business organisation towards the government.
(3) Explain types of warehouses.
Answer:
(1) Henry Fayol’s principles of management: Fayol proposed 14 principles of management which are explained in his famous book ‘General and Industrial Administration’. Due to his contribution in development of managerial thoughts he is called as ‘Father of Modern Management’. Fayol suggested 14 principles of management. These statements serve as a guideline for decision-making and management actions.
14 principles are summarized as follows:
(i) Principle of Division of Work: The work is divided into different kinds such as technical financial, commercial, security operations, accounting and managerial It is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity LeveL

(ii) Principle of Authority and Responsibility: Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility.

(iii) Principle of Discipline: Discipline helps to achieve the goals in the organisation. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organisation’s rules. Basic discipline should be observed at all levels of management.

(iv) Principle of Unity of Command: Each member of organisation should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in organization.

(v) Principle of Unity of Direction: This principle states that ‘there should be one head and one plan’ in every organisation. Each group in the organisation should have the same objective and the group should be directed by one manager using single plan.

(vi) Principle of Subordination of Individual Interest to Organisational Interest: While taking decision in the organisation, the manager should always consider the interest of the whole group rather than the interest of a single employee. Similarly, the employee should protect the interest of the organisation first and his personal interest should be subordinated.

(vii) Principle of Centralisation: According to this principle, there must be a proper balance between centralisation and decentralisation in the organisation. This is to be done according to the size of the organisation, nature of the activity etc.

(viii) Principle of Remuneration: The fair remuneration affects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organisation etc.

(ix) Principle of Scalar Chain: Scalar chain means the hierarchy of authority from the top level to the lower level for the purpose of communication. This helps to ensure the orderly flow of information and communication.

(x) Principle of Order: This principle is based on ‘A place for everything and everything in its place’. Human resources and materials should be in the right place at the right time for maximum efficiency or utilization.

(xi) Principle of Equity: Management should be fair as well as friendly to the subordinates. While dividing the work, delegating the authorities, deciding the monetary terms etc. there should not be any discrimination between ‘ the employees. This equity will help in avoiding conflicts in the organisation.

(xii) Principle of Stability of Tenure: It plays very important role in creating sense of , belongingness among the employees.- Insecurity in job always affect the efficiency of employees adversely whereas job security minimizes employee turnover ratio and help to work efficiently.

(xiii) Principle of Initiative: Initiative refers to volunteering to do the work in an innovative way. The freedom to think and work on new ideas encourages employees to take initiative while working on given task.

(xiv) Principle of Esprit De Corpse: Henry Fayol has given emphasis on team work. Esprit de corps means union is strength. Running any organisation is a group activity and human resources are the valuable asset of the organisation. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore, as a leader, manager should create a spirit of team work and understanding among employees to achieve organisational goal easily.

(2) Social Responsibilities towards government: The government regulates and controls the business with the objectives of systematic economic development of the country and safeguarding the interests of the common man. Following are the responsibilities of organisation towards government.
(i) Timely Payment of Taxes: The government imposes various types of taxes like sales tax, income tax, wealth tax etc. Organisation should pay these taxes from time to time. So that fund can be utilized by government for development projects.

(ii) Observing rules and regulations: The business should follow the laws regarding obtaining license for a specified business, the operation of the business, price determination and production etc. They should conduct business in lawful manner.

(iii) Earning Foreign Exchange: The government also expects from business organisation that it will earn foreign exchange by exporting goods. The government requires this foreign exchange for importing various goods.

(iv) Economic Development: The government sets the targets for balanced and rapid economic development of the country. The business organisation should provide necessary cooperation to the government.

(v) Implementing Socio Economic Policies: The government expect cooperation and help from the business sector in implementing socio¬economic programmes and policies.

(vi) Suggestions to the Government: The business organisation can provide suggestions to the government before framing important policies such as Industrial Policy, Import Export Policy, Licensing Policy etc. Such suggestions are helpful for framing organisation-friendly policies.

(vii) No favours: The commercial organisation should not take any favour from the government officials by .bribing or influencing them.

(viii) Contributing to Government Treasury: The Commercial organisation must contribute the funds to government during the emergencies and natural calamities like floods, earthquakes etc.

(3) Types of Warehouses: Warehousing refers to storage of goods and consists of all those activities which are connected with storage and preserving of goods. It is a means of storing the goods in a best manner for future demand.
Definition: A warehouse is defined as “an establishment for the storage or accumulation of goods.”

Types:
(i) Private Warehouses: The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs.

(ii) Public Warehouses: A public warehouse is a specialised business establishment that provides storage facilities to all at lowest cost. It may be owned and operated by an individual or a cooperative society. It is a licensed warehouse which need to follow government rules and regulations. Public warehouses are generally located nearthejunctions of railways, highways and waterways.

(iii) Bonded Warehouses: It is a licensed warehouse. In this warehouse imported goods are stored until the payment of custom duty. These warehouses work under the control of custom authorities. The goods are held in bond and cannot be withdrawn without paying the custom 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. He can withdraw the goods in installments by paying the customs duty proportionately.

(iv) Duty paid Warehouses: If an importer faces any problem in transportation of goods, after making payment of duty, then goods can be stored at a duty paid warehouse. Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting,re-packing etc. Such warehouses are more useful for re-export of the goods. These are located near port & dock area.

(v) Government Warehouses: These warehouses are owned, managed and controlled by central and state governments or public authorities. This facility is availed by small farmers, businessmen, traders just by paying nominal charges. For eg. Central Warehousing Corporation of India (CWC), State Warehousing Corporation (SWC) and Food Corporation of India (FCI) are having warehouses across different states and country.

(vi) Co-operative Warehouses: These warehouses are owned, managed and controlled by cooperative societies. They mainly provide warehousing facilities at most economical rates. These type of warehouses are very useful for farmers and traders and general public.

(vii) 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 so as to preserve them and use them in future. International trade has become possible due to these warehouses.

Question 8.
Answer the following (Any ONE): (8)
(1) Define bank. Explain different types of banks.
(2) Explain the functions of marketing in detail.
Answer:
(1) Meaning: A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers.
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 public, repayable on demand or otherwise, and withdrawable by cheque, draft and order or otherwise.
(i) Central Bank: The central bank is the apex financial institution in banking industry in the country. In India, The Reserve Bank of India (RBI) is the central bank. The RBI was established in 1945 under the Reserve Bank of India Act 1944. Some functions of RBI are as follows:
(i) Frames monetary policy in Indian economy
(ii) Issues currency notes
(iii) Acts as a banker to the Government
(iv) Acts as a banker’s bank to commercial and other banks in India.

(ii) Commercial Bank: The commercial banks play an important role in economic and social development of a country. Commercial banks performs important functions such as:

Primary Functions i.e. accepting of deposits and lending of money and Secondary Functions i.e. agency functions and utility functions. Commercial banks further divided into three parts:
(a) Public sector banks: Where majority of capital is hold by government such as Bank of India, State Bank of India etc.
(b) Private sector banks: which are owned by group of individuals such as AXIS bank, HDFC bank etc.
(c) Foreign banks: Those banks which are established outside India but these banks have branches in India such as Citi bank, HSBC, Standard Chartered etc.

(iii) Co-operative Bank: In India, Co-operative Banks are registered under Indian Co-operatives Societies Act and regulated under Banking regulation Act Co-operative Banks are popular in semi-urban and ruraL areas. The main aim of co-operative bank is to provide credit to economically backward people, farmers and small scale units. Generally, the co-operative bank works at three different levels:
(a) Primary Credit Societies: Primary Credit Co¬operative society’s work at village level They collect deposits from members and common public. They also get funds from the State Co¬operative Bank and District Co-operative Banks for the purpose of lending.

(b) District Central Co-operative Bank: These banks operate at district leveL They obtain deposits from the public at the district level and also get funds from the State Co-operative Bank or the purpose of lending.

(c) State Co-operative Bank: This bank operates at state level. They provide funds to central Co¬operative Bank and primary credit societies as required. State Co-operative Bank also performs function of monitoring over district bank and credit cooperative societies.

(iv) Industrial Development Banks: These are financial institutions that provide medium and long term funds to the business firms eg. of development bank are Industrial Finance Corporation of India (IFCI), State Finance Corporation (SFC), Maharashtra State Finance Corporation(MSFC) etc.

(v) Exchange Banks: The exchange banks as well as large commercial banks facilitates foreign exchange transactions. Examples of exchange banks are Barclays Bank, Bank of Tokyo etc.

(vi) Regional Rural Bank: Regional Rural Banks (RRBs) were established in 1975. 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%. RRBs mobilise deposits primarily from rural and semi-urban areas and provide loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans.

(vii)Savings Bank: The main objective of savings bank is to encourage savings of the people, especially in rural areas for eg. postal saving bank, commercial banks and cooperatives banks.

(viii)lnvestment Bank: These banks provide financial and advisory assistance to their customers. Investment banks facilitate mergers and acquisitions by undertaking research and providing advice on investment decisions. Generally, investment banks do not directly deal with general public.

(ix) Specialised Banks: These banks cater to the requirements and provide overall support for setting up business in specific areas. Such as:
(a) Export and Import Bank (EXIM): This bank provides financial assistance to exporters and importers with the view to promoting the country’s international trade.

(b) Small Industries Development Bank of India (SIDBI): Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the principal financial institution for promotion, financing and.” development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.

(c) National Bank for Agriculture and Rural Development (NABARD): It is an apex institution for financing agricultural and rural sector. NABARD provides both shortterm and long term credit through regional rural banks. It provide finance to financial institutions and not to the individuals.

(2) Functions of Marketing (any 8 point expected): Meaning:
Marketing deals with exchange of goods and services to satisfy needs of consumers. Marketing help to identify needs of the consumers and facilitate to satisfy it.
Following are some of the important functions of marketing:
(i) Marketing Research: Effective marketing is possible when business takes initiative to identify the needs and wants of the consumers in the market and for that they need to collect information from the consumers and analyse the same is known as Market Research. It helps to find out what do consumers want to buy, when do consumers buy, in what quantity they want to buy and at what price. Marketing Research helps to take various decisions regarding successful marketing of products.

(ii) Buying and Assembling: It means arrangement of raw material from different sources at one place for production. This function is important as quality and price of raw materialto determine cost and quality of the final product.

(iii) Market Planning: After assessing the need of the marketing, business needs to chalk out the marketing plan and strategies to achieve the desired objective. Market planning is the process of organising and defining the marketing objectives of the business and creating strategies to achieve them.

(iv) Product Development: Product development and design play an important role in the selling of the product. Product design includes decision related to quality, standards, shape, design, packing, colour etc. of the product. Consumer always prefer better and attractively designed product. Good design of the product gives competitive advantage to the business. Product development is a continuous process as the requirements of the customer change from time to time.

(v) Standardisation and Grading: Standardisation means to determine standards related to 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 classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality etc. Generally grading is done in case of agricultural products like wheat, rice, potatoes etc.

(vi) Packaging and Labelling: Attractive package and label can help to make product successful Packaging means designing the package for the product. It helps in avoiding breakage, damage and destruction of the product. Packing material includes bottles, containers, plastic bags, tins, wooden boxes, jute bags, bubble bags, packing foam etc. Label is a slip which is found on the product and provides all the information regarding the product and its producer. The slip on which all this information is provides is called as label and its process is called as labelling.

(vii) Branding: Every businessman wants to have special identity in the market for his product. Branding is a process of giving special identity to a product through unique brand name to differentiate it from competitors’ products. In simple words giving of distinct name to one’s product is called as branding.

(viii) Customer Support Service: Business needs to take every possible effort to provide support services to the customer. Timely support services help to gain customer’s loyalty. 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.

(ix) Pricing of Product: Pricing is one of the most important as well as difficult task. Many times price of the product decides the success or failure of the product. 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 if prices are too low, it might suffer losses. So deciding the rightprice needs extensive market research.

(x) Distribution: Distribution is the set of activities which is concerned with 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. Distribution accounts for a major part of marketing budget of the business. Importance of physical distribution for a firm depends on the type of product and level of customer satisfaction desired.

(xi) Transportation: Transportation means physical movement of goods from the place of production to the place of consumption. Transportation includes transportation of finished goods as well as of raw materiaL Production, sale and consumption-all the three activities need not be at one place hence there is a need of transportation. Place utility is created by transportation activity. Analysis of geographical boundaries, nature of product, cost, target market, speed, reliability, frequency, safety etc. help in deciding modes of transportation. Road, air, water, railways, pipelines are some of the important modes of transportation used by business.

(xii) Warehousing: There is a time-lag between the purchase or production of goods and their sale. It is important to store the goods at a safe place during this time-lag. It also helps in stabilizing prices in the market. Functions of warehousing is performed by retailers, wholesalers and manufacturers. Warehousing creates time utility.

Maharashtra Board Class 12 OCM Previous Year Question Papers