Maharashtra Board Class 12 OCM Sample Paper Set 3 with Solutions

Maharashtra State Board Class 12th OCM Sample Paper Set 3 with Solutions Answers Pdf Download.

Maharashtra Board Class 12 OCM Model Paper Set 3 with Solutions

Time: 3 Hours
Max. Marks: 80

Note:

1. All questions are compulsory.
2. Figures to the right indicate full marks for the questions.
3. Figures to the left indicate question numbers.
4. Answer to every question must be started on a new page.

Question 1.(A)
Select the correct option and rewrite the sentence: (5) [20]

Question 1.
A.T.M stands for _____.
a. Automatic Teller Machine
b. Any Time Money
c. Automatic Teller Money
Answer:
a. Automatic Teller Machine
A.T.M stands for Automatic Teller Machine.

Question 2.
In e-business, payments have to be made ____.
a. in cash
b. on credit
c. online
Answer:
c. online

In e-business, payments have to be made online.

Question 3.
To maintain safety of investment is responsibility of business organisation towards ___.
a. community
b. investors
c. employees
Answer:
b. investors

To maintain safety of investment is responsibility of business organisation towards investor.

Question 4.
The President of State Commission is ____.
a. District Court Judge
b. High Court Judge
c. Supreme Court Judge
Answer:
b. High Court Judge

The President of State Commission is High Court Judge.

Question 5.
____ helps to take various decisions regarding successful marketing of products.
a. Marketing research
b. Market Planning
c. Product development
Answer:
a. Marketing research

Marketing Research helps to take various decisions regarding successful marketing of products.

(B) State true or false: (5)

Question 1.
F. W. Taylor has proposed 14 principles of management.
Answer:
False

Question 2.
Traditional trading is done through the internet.
Answer:
False

Question 3.
Media does not play important role in public life.
Answer:
False

Question 4.
Consumer Protection Act was passed in the interest of the sellers.
Answer:
False

Question 5.
There are only 3Ps for service marketing.
Answer:
True

(C) Find the odd one: (5)

Question 1.
NABARD, RBI, SIDBI, EXIM
Answer:
RBI

Question 2.
BPO, RTO, LPO, KPO
Answer:
RTO

Question 3.
Job security, Health and safety measures, Good working condition, Reasonable profit
Answer:
Reasonable Profit

Question 4.
Right to be heard, Right to choose, Right to represent, Right to education
Answer:
Right to education

Question 5.
Price, People, Promotion, Product
Answer:
People

(D) Give one word/phrase/term: (5)

Question 1.
A function of creating something new for an economic activity.
Answer:
Innovation

Question 2.
The principle of insurance under which the insurer and insured must show complete faith towards each other.
Answer:
Principle of utmost good faith

Question 3.
Name the form of electronic currency that exists only in cyberspace.
Answer:
Digital Cash

Question 4.
Giving of distinct name to one’s product.
Answer:
Branding

Question 5.
The principle of management that says work should be divided into parts.
Answer:
Principle of Division of Work

Question 2.
Explain the following terms/ concepts: (Any Four) [8]

Question 1.
Product
Answer:
Product refers to the goods or services that are offered by the company to the customer for sale which aims to satisfy the needs of the customer. The product can be tangible or intangible, in case of services.

Question 2.
Fatigue Study
Answer:
Fatigue study is a part of work study which is a technique of scientific management. Generally, long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. The management must study the factors that are causing fatigue and take steps to reduce the fatigue in order to maintain operational effectiveness.

Question 3.
BPO
Answer:
Business Process Outsourcing (BPO) is a type of outsourcing wherein a company contracts a third party service provider (i.e. external organisation) to perform certain business operations and responsibilities. The activities outsourced are mainly peripheral in nature.

Question 4.
Corporate Social Responsibility (CSR)
Answer:
CSR refers to a self-regulating business model that aims to contribute to societal goals, support volunteering and ethically-oriented practices. It makes a company socially responsible and accountable towards itself, its stakeholders, and public in general.

Question 5.
Right to be heard
Answer:
According to the right to be heard, consumers have the opportunity to voice their complaint to the consumer forum. Consumers may also give suggestions to manufacturer or trader on certain matters such as quality, quantity, price, packaging etc. Every business organisation should listen to and solve the complaints of the consumers.

Question 6.
Marketing mix
Answer:
Marketing mix is a combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market. In simple words, the marketing mix is putting the right product, at the right time, at the right price, in the right place.

Question 3.
Study the following case/ situation and express your opinion: (Any Two) [6]

Question 1.
In XYZ Company, Mr. Lele gives instructions to the employees working under him, provides guidance and motivates them for their best performance. On the other hand, Mr. Sayyad takes effort to harmonise the work done by the employees of different departments while achieving organisational goal. Mr. Desai is looking after the arrangement of required resources to the business organisation. Mention the name of employee engaged in following functions:
i. Organisation
ii. Direction
iii. Co-ordination
Answer:
i. Mr. Desai is engaged in ‘organising function’ since he looks after arrangement of required resources. This function involves identification, grouping and arranging of all the resources to achieve pre-determined goals.

ii. Mr. Lele is engaged in ‘directing function’ since he is involved in instructing, guiding and motivating employees under him. This function is concerned with showing right path to employees, guiding them and encouraging them.

iii. Mr. Sayyad is engaged in ‘co-ordination function’ since he harmonises the work done by the employees of different departments. This function provides unity of action for achieving organisational goals.

Question 2.
Mr. Sharan is successful manufacturer. He is having production units at various locations. He is having multiple production units, he has large stock of raw material and finished goods. He is worried about safeguarding goods from any unwanted financial loss. He also requires to transfer raw material and finished goods from one unit to other but does not have any facility for that.
He also requires funds for expansion.
i. Name the service which will help him to safeguard goods from any damage?
ii. Which service will help him to remove difficulty of place?
iii. From which service sector will he get financial support?
Answer:
i. Mr. Sharan can safeguard goods from damage with the help of warehousing services. This service will ensure that his goods are stored and preserved properly.

ii. His difficulty relating to place can be removed with the help of transportation facilities. These facilities will enable him in timely transfer of raw material and finished goods from one unit to other.

iii. Mr. Sharan can get financial support from the banking sector. He can get the required funds for business expansion by taking loan from commercial banks.

Question 3.
Mr. Kapil has started ‘Tranquil Spa Centre’ a firm that provides spa and salon services.
Mr. Akshay has started Zen Supermarkets that sells grocery products.
i. What steps can Mr. Kapil take to include tangible elements in his business?
ii. What are the Ps. of marketing Mix that Mr. Akshay should focus on?
iii. Which business should give importance to human resource?
Answer:
i. Mr. Kapil can add tangible elements in his business through physical environment like interior design, layout, dress of the staff, behaviour of the staff etc.
ii. Product, price, Place and Promotion are the 4 P’s of marketing that Mr. Akshay should focus on.
iii. Tranquil Spa Centre should give more importance to human resource as it is a service-based business.

Question 4.
Distinguish between the followings: (Any Three) [12]

Question 1.
Co-ordinating and Controlling
Answer:

Co-ordinating	Controlling
i. Meaning
Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals.	Controlling is the process of taking steps to bring actual results and desired results closer together.
ii. Objective
To ensure harmony of efforts of the employees for smooth functioning.	To ensure that the objectives are achieved according to the plan.
iii. Area of function
Co-ordination includes integration of the efforts of top level, middle level and lower level of the organisation.	Controlling includes setting up of standards, comparison with actual performance and taking corrective steps whenever necessary.
iv. Factors
Co-ordination is harmonisation of human resources. So,it is concerned with internal factors.	Internal and external factors are taken into account for taking corrective action in controlling function.
v. Order
Co-ordination follows directing function.	Controlling is an end function of management process.
vi. Resources
Co-ordination is related to human and other resources.	Controlling is related to all organisational resources that help to achieve organisational goals.
vii. Nature
Co-ordination is a continuous process to achieve the goal of organisation.	Controlling is the process which starts once the actual plan is executed.
viii. Level of Management
Co-ordination is related to all the levels of management	Top and middle level management are responsible for controlling the activities.

Question 2.
Duty paid warehouse and Bonded warehouse
Answer:

Duty paid warehouse	Bonded warehouse
i. Meaning
Duty paid warehouse is the warehouse where imported goods on which duty is already paid are stored.	Bonded warehouse is the warehouse where imported goods on which duty is not paid are stored.
ii. Supervision
These warehouses are not supervised by customs authority. These are public warehouses available to all importers.	They are licensed by the government and work under the control of custom authorities.
iii. Delivery
Delivery of goods can be obtained after the payment of warehouse rent.	The goods are said to be “held in bond”. They can be withdrawn only with the consent of the custom authorities after payment of custom duty.
iv. Purpose
If an importer faces any problem in transportation of goods after the payment of duty, then he can store the goods in such warehouses. These warehouses are more helpful to businessmen who re-export the goods.	These warehouses are useful for importers who are not able or willing to pay the custom duty immediately at the time of arrival of goods. They can pay the import duty in instalment and withdraw goods proportionately.

Question 3.
BPO and KPO
Answer:

BPO	KPO
i. Meaning
BPO refers to the outsourcing of non-primary activities of an organisation to external organisation to minimise cost and increase efficiency.	KPO is a kind of outsourcing whereby functions related to knowledge and information are outsourced to third party service providers.
ii. Degree of complexity
BPO is less complex.	KPO is complex.
iii. Requirement
BPO requires process expertise.	KPO requires knowledge expertise.
iv. Talent required in employees
BPO requires good communication skills.	KPO requires professionally qualified employees.
v. Focus on
BPO focuses on low level processes.	KPO focus on high level processes.

Question 4.
Road Transport and Rail Transport
Answer:

Road transport	Rail transport
i. Speed
Road transport has limited speed due to bad road conditions, accidents, etc.	Rail transport has considerable speed since it runs on rail tracks which rarely get disturbed.
ii. Carrying capacity
It has limited carrying capacity.	It has huge carrying capacity.
iii. Cost
It requires limited capital investment in terms of construction of roads, vehicles and their maintenance.	The cost of construction of trains and railway tracks is high. Also, the maintenance cost of trains, tracks and stations is high.
iv. Distance
It is recommended for short distance.	It is recommended for long distance.
v. Charges
Transport charges are not fixed due to increased fuel prices.	Transport charges are relatively low and are fixed according to the distance.
vi. Door-to-door-service
It provides door-to-door services.	It does not provide door-to-door services.
vii. Mean
It uses animals, animal carts, motor cycles, three and four wheelers.	It uses passenger trains and goods trains.
viii. Suitability
It is suitable for transporting the goods in relatively smaller quantities for short distance.	It is suitable for transporting heavy and bulky goods ¡n large quantities over long distance.
ix. Safety
It provides limited safety to goods from the sun, rain, wind, etc.	Goods are kept in locked wagons which provide protection against sun, rain, wind, etc.
x. Accidents
Chances of accidents are more due to poor road conditions and negligent drivers.	Chances of accidents are less because of one way track and good signal system.

Question 5.
Answer in brief: (Any Two) [8]

Question 1.
Explain any 4 principles of Henry Fayol.
Answer:
Henry Fayol (1841-1925) was a French mining engineer who rose to the position of the Chief Managing Director. He became a leading industrialist and a successful manager. He conducted many experiments in management and proposed fourteen principles of management. These principles have been explained in his book “General and Industrial Administration”. Due to his contribution to management, he is called the “Father of Modern Management”. His principles serve as a guideline for decision-making and management actions.

The following are the principles of management laid down by Fayol:

i. Principle of Division of Work
As per this principle, the work in an organisation should be divided into small sub parts. The work could be divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. This work should be assigned to employees depending on their interest, skill, qualities and capabilities. This helps in increasing efficiency, leads to specialisation and ultimately increases productivity level.

E.g.: In a college, there are different professors for different subjects. Each professor teaches the subject assigned to him/her according to his qualification and interest.

ii. Principle of Authority and Responsibility
Authority is the right to take decisions, i.e., the right to give orders and get work done from subordinates. A manager can work properly only if he is given authority to take decisions. However, authority comes with responsibility. When authority has been given to the manager, he is responsible for that work. If the work is not completed in time or not done properly, the manager is to be held responsible.

E.g.: A captain of Indian Cricket Team is given the authority to choose his team and decide the batting order. However, when the team loses a match, he is held responsible for the defeat.

iii. Principle of Discipline
According to Fayol, discipline is the most essential thing in the organisation. Employees must obey and respect the rules of the organisation. Discipline helps to achieve the goals set in the organisation. Good discipline is the result of effective leadership. There must be a clear understanding between management and employees regarding the organisation’s rules so that the discipline is maintained. Discipline should be observed at all levels of management.

E.g.: Management should clearly convey office timings to its employees and the employees need to adhere to these.

iv. Principle of Initiative
Initiative means taking the first step and volunteering to do the work in an innovative way. Managers should encourage employees to take initiative and come up with new ideas. According to this principle, managers should welcome such ideas and conduct thorough discussion on these ideas. This approach helps to build a healthy organisational culture.

v. Principle of Subordination of Individual Interest to Organisational Interest
According to this principle, the interest of an individual must be given lesser importance as compared to the interest of the organisation. The manager should always consider the interest of the whole organisation rather than the interest of a single employee while taking any decision. Similarly, the employees should also give higher importance to the interest of the organisation than their own self.

E.g.: M. S. Dhoni stepped down as the captain of the Indian Cricket Team in 2017 and allowed Virat Kohli to take over as the captain in spite of still being in the team. He gave more importance to the team’s interest rather than his individual interest.

vi. 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. The principle focuses on the proper utilisation of physical and human resources.

E.g.: An accounts expert should be in accounts department and not in marketing department.

vii. Principle of Unity of Command
Each employee of an organisation should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in the organisation. If an employee receives orders from more than one superior, he will get confused. He will not understand whose orders to follow. This will hamper the work. Each employee should know his immediate superior and should receive orders only from him. For this, the organisational hierarchy should be well defined.

E.g.: If an employee is working on two projects with two different superiors, both of them may ask him to finish work on the same day. In that case, employee will either have to work long hours which will affect his efficiency or he may have to finish the task in an improper manner. To avoid this, he should receive order from only one superior.

viii. Principle of Stability of Tenure
When an employee is recruited, the management should assure him about the stability of his tenure (job security). It helps to create a sense of belongingness among the employees. An employee who is secured about his job will put his maximum efforts. It will also help to minimise employee turnover ratio.

ix. Principle of Remuneration
As per this principle, employees must be paid a fair amount of salary/wages for the services rendered by them. Fair remuneration keeps employees financially satisfied and retains them for a longer period of time with the organisation. It also helps to increase their productivity and efficiency. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organisation etc.

x. Principle of Equity
Management should be fair as well as friendly to the subordinates. While allocating any work, delegating the authorities, deciding the monetary terms etc., there should not be any discrimination between the employees. Also, the remuneration should not depend on the department but the level on which subordinates are working. It implies that salary/wages of employees working at the same level should be the same even though they belong to different departments. This will help to avoid conflicts within the organisation.

E.g.: Sr. Executive – Accounts, Sr. Executive – Production, Sr. Executive – Sales should all have equal pay.

xi. Principle of Scalar Chain
Scalar chain refers to 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. Traditionally, organisations used to frame large scalar chain which is time consuming.

E.g.: If any financial decision taken by the top management requires a change in the accounting system, then the CFO will first inform the Manager-Accounts and Manager-Accounts will inform the Head-Accounts. The Head-Accounts will then inform the Account Executive and finally the work will get done.

However, in order to avoid this longer chain and to take speedy decisions; cross communication or direct communication is followed by various organisations. It is known as Gang Plank. For direct communication, it is essential to take proper permission of authorities.

xii. Principle of Centralisation
Centralisation refers to the concentration of powers and authorities in one or few hands. This situation usually occurs in small organisations. However, if the size of organisation is large, there is a decentralisation of power and authority.

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.

xiii. 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.

xiv. Principle of Esprit De Corps (Team Work)
Esprit de Corps means union is strength. Power of many is always more than power of one. The manager should create a spirit of team work and understanding among the employees. They should be made to realise that the organisational goals are achieved only due to the combined efforts of all employees. When all employees work as a team, the difficulties can be solved quickly and organisational goals can be achieved easily.

Question 2.
State four life insurance policies
Answer:
Life insurance policy is a contract between insurer and insured whereby the insurer agrees to compensate the insured a certain sum on the expiry of certain period or on death, whichever is earlier for consideration. The basic purpose of life insurance policy is to secure the lives of those who are dependent on the insured i.e. those who survive after the death of insured. The person taking the life insurance policy is called ‘assured’ while the insurer is called as ’assurer’. The type of life insurance policies are as follows:

i. Whole Life Policy
The whole life of a person is insured under this policy. The person assured pays nominal amount of premium over his entire life time. The sum assured is paid by the assurer only on the death of assured to his nominee or legal heir. The assured does not receive money from the insurance company till he is alive.

ii. Endowment Insurance Policy
Under this policy, insurance is taken for a specific period. The sum assured along with bonus is paid by the assurer to:

a. Nominee or dependents: On death of the person assured or
b. Assured: On maturity of the policy (i.e. expiry of the specific period)

iii. Term Insurance Policy
This policy is taken for a specific term or period. It has lowest premium among all insurance policies and it remains fixed during the term of the policy. In case of untimely death, dependents (nominee) receive the sum assured as specified in the contract. If the assured is alive at the end of the term, he does not get the policy amount.

iv. Annuity Policy
In this policy, assured has to pay the premium amount in lump sum or in instalments. The assured shall receive back a specific sum after prefixed period. This amount will be received periodically from a specified date onwards, either for a fixed period of time or for the entire life. It is like pension payment scheme.

v. Money-Back Policy
Under this policy, a certain percentage of the sum assured is repaid by the assurer to the assured in instalments during the life time of the policy. Also, full benefit of the sum assured is available to nominee on the death of the assured. Generally, this policy is available for four terms: 12 years, 15 years, 20 years, and 25 years.

vi. Child Insurance Policy
It is a saving cum investment plan which enables to meet child’s future financial needs. One can start investing in this plan right from the time the child is born and withdraw the savings once the child reaches adulthood. Some policies allow intermediate withdrawals at certain intervals. A child insurance policy allows kids to live their dreams.

vii. Retirement Plans
Retirement plan is a savings and investment plan which provides assured with income during retirement. On maturity, corpus is invested for generating a regular income stream. It is referred to as pension or annuity.

viii. Unit Linked Insurance Policy (ULIP)
Under this policy, benefits of life insurance policies are combined with mutual funds. Some portion of the premium is invested in listed equity or bonds while other portion is used to provide life insurance. These policies are very popular.

Question 3.
Write a short note on District Commission.
Answer:
The Consumer Protection Act initially received the assent (approval) of the President on 24th December 1986. In 2019, the Ministry of Law and Justice proposed a new act: ‘Consumer Protection Act, 2019’. It received the assent of the President on 9^th August 2019.

The Consumer Protection Act, 2019 provided for the establishment of consumer dispute redressal agencies known as District Commission, State Commission and National Commission at the district, state and national levels, respectively. The Act covers all complaints regarding the goods, services and unfair trade practices.

District Commission

i. Meaning
A consumer dispute redressal commission at each district established by the State Government is known as ‘District Commission’.

ii. Composition
Each District Commission shall consist of the following:

a. President: A person who is or has been or qualified to be a District Judge.
b. Member: Not less than two but not more than such number of members as may be prescribed, in consultation with the Central Government.

iii. Tenure
The President and member of the District Commission shall hold office till the completion of their term. The members will hold office for a term of 5 years or up to the age of 65 years, whichever is earlier.

E.g.: If a person is appointed as a member of District Commission at the age of 63 years, then he will hold office only for a period of 2 years till he/she is 65 years old.

iv. Qualification
The members of District Commission shall have the following qualifications:
a. Age: Members should not be less than 35 years of age.
b. Education: Members should possess a Bachelor’s Degree from a recognised university.
c. Experience: Members should have adequate knowledge and at least 10 years’ experience in dealing with problems related to economics, law, commerce, accountancy, industries and public affairs or administration.

v. Territorial Jurisdiction
Territorial jurisdiction of District Commission is entire district in which it is established.

vi. Monetary Jurisdiction
District Commission shall have jurisdiction to entertain complaints where the value of goods or services paid as consideration does not exceed ₹ 1 crore.

vii. Appeal
Any person who is not satisfied with the order made by the District Commission can appeal against such order to the State Commission within 45 days from the date of the order, in such form and manner, as may be prescribed.

viii. Rights of State Government
The State Government, by notification, may make rules regarding qualifications, method of recruitment, term of office, resignation and removal of President and members of District Commission. However, a person who is already a President or member of the District Commission immediately before the commencement of this Act will remain on the same post till the completion of his term.

Question 6.
Justify the following statements: (Any Two) [8]

Question 1.
Taylor emphasised on standardisation of tools and equipment.
Answer:

1. Standardisation of goods and services is a technique of scientific management suggested by F. W. Taylor.
2. This technique involves standardisation of working environment and methods of production.
3. According to Taylor, employees should be provided with good working conditions and good tools & equipment.
4. It helps to reduce spoilage and wastage of material, cost of production, and workers’ fatigue. Overall, it improves quality of work.
5. Thus, Taylor emphasised on standardisation of tools & equipment.

Question 2.
Entrepreneur must be a good communicator.
Answer:

1. An entrepreneur needs to communicate with customers, suppliers, creditors, employees etc.
2. He must be able to express his ideas and strategies effectively in order to succeed.
3. The entrepreneur also has to motivate the employees so that the business grows overall.
4. It is necessary that there is a proper understanding between the sender and the receiver of message.
5. Hence, the entrepreneur must be a good communicator

Question 3.
Warehousing is important.
Answer:

1. Warehousing is a group of activities connected with the storing and preserving of goods from the time of production till the time of consumption.
2. It is one of the important services which support business activities.
3. It performs a wide range of functions such as price stabilisation, risk bearing, financing, grading and packing, transportation, processing etc.
4. Warehousing also creates time and place utility.
5. Hence, warehousing is important.

Question 4.
There is a need of branding to get recognition among the consumers.
Answer:

1. Brand refers to the name of the product.
2. Branding is a process of giving special identity to a product with the help of a unique brand name in order to differentiate it from the competitor’s products.
3. It is a process of giving a distinct name to the product.
4. Branding helps the businessman to create a special identity for his product in the market.
5. It also helps to get new business and increase the brand awareness in the market.
6. Thus, there is a need of branding to get recognition among the consumers.

Question 7.
Attempt the following: (Any Two) [10]

Question 1.
Explain agency functions of bank.
Answer:
Agency functions are the secondary functions performed by commercial banks. Here, a commercial bank acts as an agent or representative of its client. Agency functions performed by banks are as follows:

i. Periodic Collections and Payments
On behalf of the customer, commercial banks collect salary, dividends, interests and any other income which are to be received by customers periodically. Similarly, banks also make periodic payments such as taxes, bills, premiums, rent etc. on the standing instructions given by the customer. The banks charge certain fixed amount in the form of service charges (quarterly or annually) for providing these services.

ii. Portfolio Management
Large commercial banks provide portfolio management service wherein they buy and sell securities such as shares, bonds, and debentures etc. on behalf of their clients.

The banks also send detailed account statement on regular basis and also provide the client with various analysis and recommendation reports. Many clients are opting for such services of commercial banks.

iii. Fund Transfer
Commercial banks undertake various initiatives to make fund transfer hassle free. They provide the facility of transferring funds from one branch to another branch as well as another bank.

iv. Dematerialisation
Banks provide dematerialisation facilities to their clients wherein they undertake the electronic transfer of shares in case of purchase or sale. It enables clients to hold their securities in an electronic format.

v. Foreign Exchange (Forex) Transactions
Forex is an abbreviation of foreign exchange. A bank may purchase or sell foreign exchange on behalf of its clients. A bank purchases forex from its clients which the clients receive from foreign transactions and sell the forex when the clients need it for overseas transactions.

E.g.: When a person wishes to go on a foreign tour, he will contact his bank and ask for currency of that country against Indian rupees. When he is back from his foreign trip and some foreign currency is remaining unspent, he will give it back to the bank and get Indian rupees in return.

Question 2.
Describe the responsibilities of commercial organisation towards investors.
Answer:
Investors are creditors of business and they provide finance to the company. Businesses should fulfil following responsibilities towards the investors:

i. Proper Conduct of Meetings
A company should call meetings of investors and provide them the accurate information related to business. It is mandatory to give intimation of such meetings through proper notice. In period of crisis, investors should be taken into confidence and factors responsible for failure should be known to them.

ii. Return on Investment
Investors invest their money in business and accept the risk factor. They should get fair and regular returns in the form of interest. The businesses need to ensure fair returns on investment, safety of investment and steady appreciation of business.

iii. HANDLING GRIEVANCES
A company should have effective methodology to handle investors’ grievances, if any. All queries of investors regarding any issue must be satisfactorily answered.

iv. Maintain Transparency
Investors provide long-term as well as working capital for efficient functioning of the business. Hence, company should maintain a high degree of transparency in its operation.

v. Proper Disclosure Of Information
Management should present full and factual information to investors in the form of regular reports, circulars and statement of profit. Also, information related to financial performance must be accurately provided so that prospective investors can take decision to invest in the future. It will assure them regarding the safety of their investment.

vi. Maintain Solvency And Prestige
It is necessary for businesses to maintain sound financial position, solvency, prestige and goodwill so as to satisfy investors. Business should take continuous efforts for research, innovation and expansion programme.

Question 3.
Explain the importance of marketing to the society.
Answer:
The prime objective of production by any organisation is to distribute products and services through effective marketing. Without marketing, it is difficult to reach the potential customers. Effective marketing helps organisations to survive in the competitive environment. The role of marketing is too diverse in the modern world.

Importance of marketing to the society can be explained as follows.

i. Decreases Distribution Costs
Marketing activities make it possible to provide goods and services to the society at reasonable prices. Effective utilisation of the channels of distribution helps in reducing the cost (and thereby prices) of goods and services. This helps in increasing the number of potential customers. It also assures timely availability of the product.

ii. Increase in Standard of Living
The prime objective of marketing is to provide goods and services to the customers to satisfy their needs. As defined by Paul Mazur, “Marketing is the delivery of standard of living to the society”. Marketing helps to identify the needs of the customers. This helps business firms to take an initiative to provide the quality goods at cheaper prices. This results in maintaining as well as increasing the standard of living of the customers. In the modern times, goods and services are produced on a large scale which reduces their costs and thereby, prices; due to which even the poorer sections of the society can attain a reasonable standard of living.

iii. Managing Consumer Expectations
Marketing research helps the organisations to understand the needs and expectations of consumers and develop products accordingly. The research involves collecting customers’ review through different sources. It helps the organisations to make necessary changes in their products. Businesses use marketing to make consumers aware of any major changes, such as mergers and transfers in ownership that may affect product offerings or quality. Government regulations ensure that marketers do not make any false or misleading claims.

iv. Provides Employment
Modern marketing is a total system that covers almost all functions of an organisation such as buying, selling, financing, transporting, warehousing, risk bearing, research and development etc. In order to run this system, there is a need of people. Thus, marketing creates job opportunities. Due to automation, lesser employment opportunities are available in production sector while marketing has played an important role in generating employment opportunities. Converse, Huegy and Mitchell have rightly pointed out that, “In order to have continuous production, there must be continuous marketing, only then employment can be sustained and high level of business activity can be continued”.

v. Increase in National Income
Every economy revolves around marketing, production and finance to the industry. The scientifically organised marketing activities help in the economic development of a country. Effective marketing leads to industrialisation, more jobs and also makes the economy stronger and stable. Marketing can also bring about rapid development of a country by integrating agriculture and industry. All of this results in higher national income.

vi. Consumer Awareness
Marketing creates awareness in the society as it informs and educates the customer. It helps the customer to know about a new product and service available in the market and also creates awareness about its usefulness to the customer. It also provides practical information that assists the consumer in making a purchase such as information about addresses, phone numbers, product release dates, store hours and web addresses.

Question 8.
Answer the following: (Any One) [8]

Question 1.
Define the term controlling and explain the importance of controlling.
Answer:
Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes of deviation and suggests corrective measures. According to Dale Henning, “Control is the process of bringing about conformity of performance with planned action.” The following points explain the importance of controlling:

i. Organisational Goals are Fulfilled
Controlling involves comparing the actual performance with the predetermined standard performance. It evaluates the employees’ performance at every stage of their work. It measures deviation, if any and suggests corrective measures. Hence, it helps in fulfilling the organisational goals.

ii. Psychological Pressure
The performance is evaluated on the basis of standard targets. All employees are very well aware that their performance will be evaluated and they will be rewarded accordingly. This psychological pressure works as a motivational factor for employees to give their best performance.

iii. Ensures Organisational Efficiency and Effectiveness
Controlling involves making managers responsible, motivating them for performing better and achieving departmental co-ordination. It results in organisational efficiency and effectiveness.

iv. Acts as a Guide
Controlling function provides the set of standard performance so that managers as well as subordinates can work accordingly. They can achieve the desired results with the help of these standards. The steps taken for controlling also guide the management while planning the future activities. Thus, controlling function acts as a guide for everyone working in the organisation.

v. Corporate Image is Built
Controlling function leads to improvement in the performance of the organisation as a whole. Since it minimises the deviation between actual performance and predetermined standards, it leads to progress of the business. This results in development of good corporate image and brings goodwill for the business.

vi. Efficient Utilisation of Resources
The managers use various techniques in order to reduce the wastage or spoilage of resources. Moreover, standards are set for every performance and employees have to follow these standards. All of this results in the most efficient use of resources.

vii. Co-ordination is Facilitated
Controlling function clearly designs the roles and responsibilities of all departmental managers and subordinates. All department heads regularly come together to find out the deviations in their respective departments and take remedial measures to minimise such deviations. This improves co-ordination between them.

viii. Order and Discipline is Ensured
Controlling helps to maintain order and discipline in the organisation. It reduces the chances of unprofessional behaviour by employees. Discipline is maintained through continuous checking of performances by superiors and preventive action is taken to minimise the gap between actual and standard performance.

ix. Motivates Employee
Once the standards of checking performance are fixed, they are communicated to employees. Thus, employees get an idea about what to do and how to do it. The employees are rewarded in the form of increment, bonus, promotion, etc. based on the evaluation of their performance. These incentives motivate employees to perform at their best level.

x. Ensures Accuracy of Standards
The efficient control system helps management in judging whether the standards are accurate or not. Since controlling measures are flexible (to some extent), they are reviewed and revised from time to time as per changing circumstances. It helps in checking the performances accurately.

Question 2.
Who is consumer? Explain the rights of the consumers.
Answer:
The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market.
On 15^th March 1962, the then President of the United States of America, J. F. Kennedy declared certain rights of consumers and therefore, 15th March is observed as the ‘World Consumer Rights Day’. Consumer rights protect consumers from being cheated by salesman, manufacturer and shopkeeper. These rights are an integral part of our day-to-day life.

The following are the rights of consumers:

i. Right to Safety

a. The right to safety protects consumers against products, production processes and services which are hazardous to health or life.
b. It considers consumers’ long-term interests as well as their immediate requirements.
c. According to this right, consumer must get full safety and protection to his life and health. This safety should be in relation to medicines, electrical appliances, food etc.
d. The Government of India has given safety standards in the form of AGMARK, ISI, BIS, Hallmark etc.

ii. Right to Information

a. According to right to information, consumer should be provided with adequate information about all aspects of goods and services. It includes information relating to price, name of manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual, safety instructions etc.
b. This right is applicable to food products, medicines, spare parts and any other consumer products or services.
c. It enables the consumer to select the right product or service.

iii. Right to Represent

a. The Consumer Protection Act provides an opportunity to individual consumer and consumer groups to represent consumers’ interest before consumer forum.
b. The Act allows the consumer to be represented by a person who is not a professional advocate. This provision is in recognition of consumer’s right to represent.

iv. Right to Choose

a. The choices available to consumers across the basket of goods and services have multiplied over time. According to right to choose, consumer should be given full freedom to choose an article as per his requirement, liking and purchasing capacity.
b. The right to choose is related to the concept of free market economy.
c. The seller cannot compel consumer to buy a particular product.

v. Right to be Heard

a. According to right to be heard, consumers have opportunity to voice their complaints to the consumer forum.
b. Nowadays, consumers can file online complaints through portal or mobile applications.
c. Every business organisation should listen to and solve the complaints of consumers.
d. Consumers may also give suggestions to manufacturer or trader on certain matters such as quality, quantity, price, packaging etc.

vi Right to Consumer Education

a. Every consumer has the right to know about consumer rights and solutions to his problems. The right to consumer education creates consumer awareness.
b. An aware consumer can make rational choice of goods and services. He can also protect his rights and interests from the exploitation by dishonest businessmen. Thus, consumer education becomes a priority concern.
c. It is necessary educate and train consumers regarding prevailing acts and legal processes. The government, media and NGOs play vital roles in this regard.
E.g.: Jago Grahak Jago campaign.

vii. Right Against Spurious Goods

The right against spurious goods is a right against the marketing of goods which are hazardous to health, spurious (fake/ bogus) and pose a danger to life.

viii. Right to Protect from Unfair Business Practices

According to this right, all consumers are protected against unfair business practices such as black marketing, profiteering (making unfair profits), faulty weights and measures, exorbitant prices, adulteration etc.

ix. Right to Redress

a. Only filing of complaint is not enough to get justice. So, right to redress implies fair settlement of consumers’ claims.
b. This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services.
c. According to Consumer Protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims. It has District Commission at district level, State Commission at state level and National Commission at national level. Through this three-tier machinery, consumers are protected from business malpractices.

x. Right to Healthy Environment

a. All consumers have the right to healthy and clean environment in the present as well as future.
b. As per right to healthy environment, consumers can demand actions against the pollution causing business organisations.

Every consumer should be aware of his rights and use of them in his daily life. These rights play an important role in consumer protection and safety. At times, consumers may have to fight for their own rights and put pressure on businesses, manufacturers and traders for safeguarding these rights.

Maharashtra Board Class 12 OCM Previous Year Question Papers