Maharashtra State Board Class 12th OCM Sample Paper Set 5 with Solutions Answers Pdf Download.
Maharashtra Board Class 12 OCM Model Paper Set 5 with Solutions
Time: 3 Hours
Max. Marks: 80
Note:
- All questions are compulsory.
- Figures to the right indicate full marks for the questions.
- Figures to the left indicate question numbers.
- Answer to every question must be started on a new page.
Question 1. (A)
Find the odd one: (5) [20]
Question 1.
Planning, Organising, Staffing, Writing
Answer:
Writing
Question 2.
B2B, B2C, A2Z,C2C
Answer:
A2Z
Question 3.
Fair returns, Fair remuneration, Safety of investment, Steady appreciation
Answer:
Fair remuneration
Question 4.
District Commission, State Commission, NGO, National Commission
Answer:
NGO
Question 5.
Primary market, Secondary Market, Retail Market, Terminal market
Answer:
Retail Market
(B) Select the correct option and rewrite the sentence: (5)
Question 1.
Staffing is concerned with ____.
a. physical factor
b. financial factor
c. human factor
Answer:
Staffing is concerned with human factor.
Question 2.
The transactions under ___ are between consumers and consumers.
a. B2B
b. C2C
c. B2C
Answer:
The transactions under C2C are between consumers and consumers.
Question 3.
The President of District Commission is a ___.
a. District Judge
b. High Court Judge
c. Supreme Court Judge
Answer:
The President of District Commission is a District Judge.
Question 4.
Perishable goods such as vegetables, fruits, milk products etc. are sold in ___ market.
a. very short period
b. short period
c. long period
Answer:
Perishable goods such as vegetables, fruits, milk products etc. are sold in very short period market.
Question 5.
Business organisation should try to make ____ utilisation of natural resources.
a. minimum
b. maximum
c. optimum
Answer:
Business organisation should try to make optimum utilisation of natural resources.
(C) Answer in one sentence: (5)
Question 1.
What is debit card?
Answer:
It is a payment card which enables holders to buy goods/services without using actual cash. The amount is debited (deducted) from the customer’s account.
Question 2.
What is shopping cart?
Answer:
The shopping cart gives a record of all the items selected by the buyer to be purchased, the number of units required of each item and the price to be paid.
Question 3.
What should be done by management to keep workers updated?
Answer:
Introduction Training and Refresher Training is conducted to keep employees updated on the latest developments.
Question 4.
What information one should check before buying a product?
Answer:
One should check price, name of manufacturer, contents used, batch number if any, date of manufacture, expiry date, user manual, safety instructions, guarantee or warranty etc. before buying a product.
Question 5.
What do you mean by standardisation?
Answer:
Standardisation refers to the determination of standards related to process, size, quality, design, weight, colour etc. of the product to ensure uniformity in the quality of the product.
(D) State whether the following statements are true or false: (5)
Question 1.
Entrepreneurship is a full time job which requires dedication and hard work.
Answer:
True
Question 2.
Current Account is opened by salaried persons.
Answer:
False
Question 3.
E-business allows you to work across the globe in any field.
Answer:
True
Question 4.
Consumer, being the king of market, does not have any responsibility.
Answer:
False
Question 5.
In wholesale market sellers are known as retailers and buyers are known as wholesaler.
Answer:
False
Question 2.
Explain the following terms/ concepts: (Any Four) [8]
1. Management
2. Transport
3. Outsourcing
4. Business ethics
5. Packaging
6. Labelling
Answer:
1. Management is a set of principles which relate to various functions such as planning, organising, staffing, directing, co-ordinating, controlling etc. It includes all the tasks undertaken to achieve organisational goals. The management starts with planning and ends with controlling. Management function is concerned with all levels of management. [2 Marks]
2. Transportation refers to the movement of people, animals and goods from one location to another. Transport is one of the important business services and plays crucial role in nation’s economy. Today, there are different modes of transport such as land, water, air etc. [2 Marks]
3. Outsourcing is a process of contracting business function or specific business activity to specialised agency. The company makes a formal agreement with the agency. The agency sends the required manpower to company and charges it for the services offered. The different forms of outsourcing are BPO, KPO, LPO. [2 Marks]
4. Business ethics refer to a code of conduct that businesses are expected to follow while doing a business. Through ethics, a standard is set for the organisation to regulate their behaviour. This helps them in distinguishing between the wrong and the right path of the business. [2 Marks]
5. Packaging means designing the package for the product. It helps to avoid breakage, damage and destruction of the product. The packaging material includes bottles, container, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam etc. [2 Marks]
6. Label refers to the slip which is found on the product which provides all the information regarding the product and its producer. The process of displaying the label on the product is called labelling.
Question 3.
Study the following case/ situation and express your opinion: (Any Two) [6]
Question 1.
The importance of the function performed by following individuals in ABÇ Ltd. is given
below:
Rachael : Provides path of action. helps in decision making, minimises the risk
Ross : Ensures order and discipline, accuracy of standards, psychological pressure
Joey : Unity of direction, improves relation, facilitates motivation
Monica : Initiates action, explores capabilities of individuals, coping with changes
i. Who performs the first function of management?
ii. Identify the functions performed by key.
iii. Does function performed by Monica precedes the function performed by Ross?
Answer:
i. Rachael is engaged in ‘planning function’ which is the first function of management. It involves deciding the future course of action. This function provides path of action, helps in decision making and minimises the risk of future uncertainties.
ii. Joey is performing ‘co-ordination function’ of management. This function involves integration and synchronisation of the group efforts and leads to a number of benefits such as providing unity of direction, improving relation and facilitating motivation.
iii. Monica is engaged in directing function while Ross is engaged in controlling function. The controlling function is the last function of management. Hence, function performed by Monica precedes the function performed by Ross.
Question 2.
Mr. Amit is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years.
i. Can Mr. Amit take a life insurance policy for his wife and 2 children?
ii. Can Mr. Arnit take a marine insurance policy for his factories?
iii. Which type of insurance should Mr. Amit take for protecting his factories from loss due to
fire?
Answer:
i. Yes, Mr. Amit can take a life insurance policy for his wife and 2 children. Life insurance policy can be taken by individual for his own life or for family members. Here, insurance company undertakes to pay certain sum of money either on death or maturity.
ii. No, Mr. Amit can’t take marine insurance policy since this policy is taken by those who are exposed to the perils of sea. (E.g. shipping companies, exporters, importers)
iii. Mr. Amit should take fire insurance policy to protect his factories from the risk of loss due to fire. The type of fire policy he needs to buy depends on type of goods produced by him and his specific requirements.
Question 3.
Rajiv sells goods in large quantities at cheaper rates. Aman sells goods directly to the consumers in small quantities.
i. In which type of market does Rajiv function?
ii. In which type of market does Aman function?
iii. Who will Rajiv sell to?
Answer:
i. Rajiv functions in wholesale market.
ii. Aman functions in retail market.
iii. Rajiv will sell to retailers.
Question 4.
Distinguish between the followings: (Any Three) [12]
Question 1.
Directing and Co-ordinating
Answer:
| Directing | Co-ordinating |
| i. Meaning | |
| Directing is the guidance, the inspiration, the leadership of those men and women that constitute the real case of responsibilities of management. | Co-ordination is orderly arrangement of group efforts to provide unity of action in the pursuit of common goals. |
| ii. Objective | |
| To direct the subordinates to get the things done in the right manner. | To ensure harmony of efforts of the employees for smooth functioning. |
| iii. Area of function | |
| Directing includes instructing guiding, inspiring, communicating and motivating the human resources. | Co-ordination includes integration of the efforts of top level, middle level and lower level of the organisation. |
| iv. Order | |
| Directing follows organising and staffing for execution of planning. | Co-ordination follows directing function. |
| v. Resources | |
| Directing gives direction to the employees regarding the use of other resources. | Co-ordination is related to human and other resources. |
| vi. Level of Management | |
| Middle level management is involved in directing the employees. | Co-ordination is related to all the levels of management |
Question 2.
Saving account and Fixed Deposit account
Answer:
| Saving account | Fixed deposit account |
|
i. Meaning |
|
| Saving account is opened by individuals in order to save a part of their income. | Fixed deposit account is that account where a fixed sum of money is deposited for a fixed period. |
|
ii. Withdrawls |
|
| Customers can withdraw money either by cheques or withdrawal slips. | Customers cannot withdraw money during the specified period. |
|
iii. Documents |
|
| The bank gives passbook, cheque book and pay-in-slip book to the customers. | The bank gives a Fixed Deposit Receipt (FDR) to the customers. |
|
iv. Who takes it? |
|
| It is suitable for fixed income group such as wage or salary earners. | It is suitable for any person with temporary idle cash. |
|
v. Restrictions |
|
| The customers have certain restrictions on withdrawals. | Amount becomes due on the expiry of the fixed period. If withdrawn earlier, then the interest rate will be less than applicable. |
|
vi. Interest rate |
|
| Interest rate is low. | Interest rate is higher. Longer the period, higher will be the rate. |
|
vii. Nature of account |
|
| It is of continuous nature. | It is for fixed period of time except when the fixed deposit receipt is renewed. |
|
viii. Facilities |
|
| No overdraft facility is given. | 90% of the amount of fixed deposit can be given as loan. |
Question 3.
District commission and State commission
Answer:
| District Commission | State Commission |
| i. Meaning | |
| A consumer dispute redressal forum at the district level is called as District | A consumer dispute redressal forum at the state level is called as State Commission. |
| ii. Composition | |
| It comprises of the president and not less than two members but not more than such number of members as may be prescribed, in consultation with the Central Government. | It comprises of the president and not less than four members but not more than such number of members as may be prescribed, in consultation with the Central Government. |
| iii. Qualification of President | |
| A person who is or has been or qualified to be a District Judge. | A person who is or has been a Judge of High Court will be appointed as President by the State Government in consultation with Chief Justice of High Court. |
| iv. Membership tenure | |
| The membership tenure is 5 years or the age of 65, whichever is earlier. | The membership tenure is 5 years or the age of 67, whichever is earlier. |
| v. Area | |
| It covers a particular district. | It covers a particular state. |
| vi. Monetary jurisdiction | |
| It entertains complaints where the value of goods or services paid as consideration does not exceed ₹ 1 crore. | It entertains complaints where the value of goods or services paid as consideration exceeds ₹ 1 crore but does not exceed ₹ 10 crores. |
| An appeal against the order of District Commission can be made to the State Commission. | An appeal against the order of State Commission can be made to the National Commission. |
| viii. Nature of complaints | |
| It entertains only original complaints which come to District Commission. | It entertains original complaints and appeals against orders of District Commission. |
Question 4.
Life Insurance and Fire Insurance
Answer:
| Life insurance | Fire insurance |
| i. Meaning | |
| Life insurance is a contract whereby the insurance company undertakes to pay a certain sum of money to assured either on death or maturity (whichever is earlier) for a consideration (premium). | Fire insurance is a contract in which insurer promises to pay compensation to insured if something happens to the subject matter due to fire or related events. |
| ii. policy taken by | |
| It can be taken by an individual for his own life or for his family members. | It can be taken by individuals for their properties or by businessmen for their goods, properties, business liabilities. |
| iii. Subject matter | |
| In life insurance, the life of the assured is a subject matter. | In fire insurance, the goods and assets or property of the insured is the subject matter. |
| iv. Tenure | |
| The policy can be issued for any number of years, even until the death of the assured. | It is generally for a short period like one year. |
| v. Compensation | |
| It is paid either on death or maturity, whichever is earlier. | It is paid only if there is loss due to fire during the term of policy. |
| vi. Principle of indemnity | |
| It is not applicable as a human life cannot be valued in terms of money for calculating the actual loss. | It is paid only if there is loss due to fire during the term of policy |
| vii. Number of policies | |
| Assured can take any number of policies on the same life and compensation is paid on all the policies. | It is applicable as insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was in before the event. |
| viii. Beneficiary | |
| The beneficiary can be assured (if he survives the selected term) or else the nomine/ legal heir on the death of the assured. | Generally, only one policy can be taken but double insurance is possible. However, compensation does not exceed the actual loss. |
| ix. Surrender of policy | |
| The policy can be surrendered before the expiry subject to certain conditions. | The beneficiary is the insured who has insured the property or goods. |
Question 5.
Answer in brief: (Any Two) [8]
Question 1.
Define entrepreneur. Explain characteristics of entrepreneur.
Answer:
According to Webster Dictionary, “An entrepreneur is a person who starts a business and is willing to risk loss in order to make money.” Hence, in order to be an entrepreneur, an individual should possess certain characteristics. The characteristics or features of an entrepreneur are as follows:
i. Future Vision
An entrepreneur is well-informed and well-aware about the current market scenario/ external business environment. Also, he has a good foresight about future market situation. Therefore, he is better prepared to take appropriate and timely decisions based on the changing business environment.
ii. Intellectual Capabilities
An entrepreneur has a strong intellect. It means he is reasonably intelligent and has the ability to analyse business situations. He is a creative thinker. This enables the entrepreneur to take proper decisions and solve business problems wisely.
iii. Technical Knowledge
An entrepreneur has good technical knowledge about his business. In fact, he also has the ability to constantly update himself with the latest changes in the product, process and technology.
E.g.: A doctor possesses technical knowledge related to medical field.
iv. Communication Skills
An entrepreneur has to communicate with different people like employees, customers, suppliers, banks etc. An entrepreneur is a good communicator who is able to express his ideas and strategies effectively. He is clear and polite in his communication and able to develop good relations with all stakeholders.
v. Hard Work
There is a general belief that people in business have a relaxed life. However, it is totally untrue. An entrepreneur has to put in long hours of hard work, especially during the starting phase of business. An entrepreneur is always ready to work hard. Many times, he has to handle the main areas of business independently. This makes him successful.
vi. Entrepreneur is Highly Optimistic
A business may go through difficult times due to various external market conditions. However, an entrepreneur remains hopeful and confident even in such scenario. An entrepreneur always thinks positively. Such positive attitude helps him to run the business successfully.
vii. Risk Bearing Capacity
An entrepreneur has high risk bearing capacity and does not break under pressure. He takes calculated risks. He is ready to face challenges and always seeks new opportunities.
viii. Self Confidence
An entrepreneur will not be able to run business if he doubts himself. He has self-confidence that he will grow and manage the business efficiently. He has positive desires to achieve his goals. This self-confidence enables him to bravely face various obstacles.
Question 2.
State four types of deposits.
Answer:
Accepting deposits is one of the primary functions performed by commercial banks. The deposits can be classified into two types i.e. time deposits and demand deposits. These types can be explained as follows:
i. Time Deposits
Time deposits are made by the customers for a certain period of time during which the money cannot be withdrawn. These deposits are repaid to the customers after the expiry of decided time. Since the money is deposited for a fixed period, the bank invests the money or gives it as a loan to another customer on which the bank earns interest. As a result, the bank can pay higher interest to the deposit holder. Time deposits are of two types:
a. Fixed Deposit:
Meaning: It is a type of account in which fixed amount is deposited for a fixed or specified period of time. It is a time bound deposit which earns fixed interest rate.
Interest: Rate of interest on fixed deposit is relatively higher as compared to saving bank account. The rate of interest also depends on the duration for which money is deposited. Higher the duration, higher is the interest rate.
FDR: A Fixed Deposit Receipt (FDR) is issued by the bank for amount deposited in this account. Loan can be taken from the bank against this receipt.
Withdrawal: Money can be withdrawn only at the end of the stipulated period. If the amount is withdrawn before the date of maturity, the bank pays a lower rate of interest.
b. Recurring Deposit:
Meaning: It is a type of account in which fixed amount is deposited in the bank at regular intervals for a fixed period of time. It is operated by salaried persons and businessmen having regular income. Separate passbook is provided to know the position of RD account.
Interest: Rate of interest on recurring deposits is higher than saving bank account.
Withdrawal: The depositor can withdraw accumulated amount along with interest only after the stipulated period. If the amount is withdrawn before maturity, the bank pays a lower rate of interest.
Example:
Mr. Aditya may deposit ₹ 5000 per month in this account for 2 years. At the end of two years, he will get ₹ 120,000 (24 × 5000) plus accrued interest on this amount for the duration of 24 months.
ii. Demand Deposits
Demand deposits can be withdrawn on demand, i.e. these deposits are repaid to customers whenever they demand. The customers can withdraw money at any time as per their wish through withdrawal slips, cheques, ATM cards, online transfer etc. Demand deposits are of two types:
a. Saving Account
Meaning: It is a type of bank account where people deposit their personal savings. Saving accounts have encouraged the habit of saving among people.
Operated by: Saving account is generally operated by people who earn regular or fixed income. E.g.: salaried people or daily wage earners.
Restrictions: There are certain restrictions on the number of times money can be withdrawn from saving account.
Interest: Saving accounts carry low interest rates. Interest is credited monthly, quarterly, half-yearly or yearly basis.
Flexi deposit: Some banks provide the facility of flexi deposit for saving account holders. This facility combines the advantages of saving account and fixed deposit account. This is not a separate deposit account. It is a type of saving bank account with special features and benefits.
Multiple option deposit account: Here, excess amount after specified limit is automatically transferred to fixed deposit. When adequate funds are not available to honour payments, funds are transferred back from fixed deposit to saving account.
Other services: Facilities such as passbook, balance on SMS, account statement etc. are provided to saving account holders.
b. Current Account
Meaning: It is usually operated by business firms and other commercial organisations which carry out frequent transactions involving huge amounts. The banks provide statement of account every month.
Operated by: Current account is generally operated by businessmen, companies, public bodies, trusts or any other commercial organisation.
Restrictions: There is no restriction on deposits and number of withdrawals. A current account holder can deposit and withdraw money as many number of times as required.
Interest: Generally, no interest is paid by the bank on current account.
Other services: Overdraft facility is available for current account holders.
Question 3.
Write a note on State Commission.
Answer:
The Consumer Protection Act, 2019 provided for the establishment of consumer dispute redressal agencies known as District Commission, State Commission and National Commission. A consumer dispute redressal commission at the state level established by the State Government is known as ‘State Commission’. It is also called as State Consumer Disputes Redressal Commission.
i. Composition
Each State Commission shall consist of the following:
a. President: A person who is or has been a Judge of High Court. Such person shall be appointed by the State Government in consultation with Chief Justice of High Court.
b. Member: Not less than four but not more than such number of members as may be prescribed, in consultation with the Central Government.
ii. Tenure
The members will hold office for a term of 5 years or up to the age of 67 years, whichever is earlier.
iii. Qualification
The members of State 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.
iv. Territorial Jurisdiction
State Commission can entertain original cases as well as appeals against the order of District Commission which are within the geographical limits of the state.
v. Monetary Jurisdiction
State Commission shall have jurisdiction to entertain complaints where the value of goods or services paid as consideration exceeds ₹ 1 crore but does not exceed ₹ 10 crores.
vi. Appeal
Any person who is not satisfied with the order made by the State Commission can appeal against such order to the National Commission within 30 days from the date of the order, in such form and manner, as may be prescribed.
vii. Rights of Central Government
The Central Government, by notification, may make rules regarding qualifications, method of recruitment, term of office, resignation and removal of President and members of State Commission. However, a person who is already a President or member of the State 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.
Principles of management improve the efficiency of employees.
Answer:
i. Principles of management help the manager:
a. In understanding the organisation better
b. In understanding the situations and problems
c. In finding solutions to various situations and problems
ii. Managers use the principles of management to maintain discipline and healthy working environment.
iii. It helps in developing cordial relationship between management and employees which increases the efficiency level of employees and also affects effective administration.
iv. Thus, principles of management improve the efficiency of employees.
Question 2.
Controlling is the last function of management.
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.
- It helps in achievement of the desired goals and formulation of future plans.
- The functions of manager start with planning and end with controlling.
- Thus, controlling is the last function of management.
Question 3.
Outsourcing helps companies to increase their profits.
Answer:
- Outsourcing is a process of contracting some business functions to specialised agency.
- The companies usually outsource the non-core areas.
- It enables them to focus on their core activities and improves the quality of products.
- Outsourcing also leads to reduction of cost and ensures availability of expertise.
- As a result of all these factors, outsourcing helps companies to increase their profits.
Question 4.
Promotion plays an important role in marketing.
Answer:
- Promotion is an important tool of marketing as it creates brand recognition and sales.
- It helps to create awareness about the product among the consumers.
- It conveys features of the product to potential buyers and induces them to buy it.
- Promotion mix includes tools such as advertising, direct marketing, sales promotion, personal selling etc.
- Hence, promotion plays an important role in marketing.
Question 7.
Attempt the following: (Any Two) [10]
Question 1.
What are the responsibilities of business towards owners?
Answer:
Owners are the persons who own the business. They are responsible for the profits or losses. They contribute the capital and bear the risks. Following are the responsibilities of business towards owners:
i. Reasonable Profit
It is desirable that business earns reasonable profit since profit facilitates growth and expansion as well as brings financial stability.
ii. Explorina Business Opportunities
Business opportunity is the scope available for business units to expand, grow and diversify. Businessmen should be alert to find and explore such opportunities as they are crucial for the success of business.
iii. Optimum Use of Capital
Available capital should be used carefully and efficiently. To achieve this, business risks should be appropriately considered. It is the responsibility of management to give attention to the safety of capital.
iv. Minimise Wastages
It is possible for business organisations to maximise their profits by minimising the wastage of time, money, and manpower.
v. Efficient Business
It is extremely essential to utilise the scarce resources at optimum level. Optimum use of resources will increase the profitability and the productivity and thereby, contribute to efficient running of the business.
vi. Fair Practices on Stock Exchange
Sometimes, share prices are artificially increased or decreased by business organisations. All such unfair practices related to stock exchange (E.g.: insider trading, providing wrong and secret information etc.) should be eliminated so as to avoid loss to common investors.
vii. Expansion and Diversification
The business should be growing and developing to be able to expand and diversify. Businesses should continually engage in Research and Development (R and D) so that they can efficiently face market competition.
viii. Periodic Information
Owners should get complete and accurate information about the financial position of their business. For this, business should periodically disclose all the relevant information through reports, circulars etc.
ix. Effective Use of Owners’ Funds
Owners’ funds must be utilised in the best possible manner. It should give them timely short-term as well as long-term returns.
x. Creating Goodwill
Management should develop and maintain a good public image of the business. A well reputed company commands a lot of respect and trust in the market.
Question 2.
Explain the ways and means of consumer protection.
Answer:
The consumer is the one who consumes or uses any commodity or service available from natural resources or through a market. Consumer protection means safeguarding the rights and interests of the consumers.
The prevailing judiciary system is not sufficient enough to protect consumers. Therefore, various ways and means are used for consumer protection. These ways and means are as follows:
i. Lok Adalat
Lok Adalat is established by the government to settle disputes by compromise. It is also referred to as ‘People’s Court’. The aggrieved (affected) consumer can directly approach the Lok Adalat with the grievance. The issues are discussed on the spot and decisions are taken immediately. Therefore, it is an effective and economical system for quick redressal of public grievances. The judgements passed by Lok Adalat get statutory recognition.
E.g.: Maharashtra State Electricity Distribution Company Limited (MSEDCL), Maharashtra State Road Transport Corporation (MSRTC), Railway authority, Insurance Companies, Banks etc. organise regular Lok Adalat.
ii. Public Interest Litigation (Janahit Yachika)
Public interest litigation means a legal action initiated in a court of law regarding a matter of general public interest. It is a legal facility under which any person can approach the court of law in the interest of society. Its aim is to provide legal remedy to unrepresented groups of the society. A person who is not affected or not related to grievance can also file public interest litigation. It is filed in the High Court. In some cases, it is directly filed in the Supreme Court.
iii. Redressal Forums
Under the Consumer Protection Act, 2019, Consumer Redressal Forums and Consumer Protection Councils are established at the district, state and national level. Any individual consumer or association of consumers can file a complaint with respective commission depending on the value of goods and claim for compensation. The main aim of these commissions is to provide for simple, speedy and inexpensive redressal of consumers’ grievances. Consumer Protection Councils aid in promotion and protection of consumers’ rights.
iv. Awareness Proaramme
The Government of India has initiated various publicity measures in order to increase the level of awareness among consumers. It comprises of journals, brochures, booklets and posters that depict the rights as well as responsibilities of consumers, redressal machineries etc. Several audio-video programmes on consumer awareness are broadcasted on various TV channels, radio and through social media. 15th March is observed as ’World Consumer Rights Day’ and 24th December is observed as ’National Consumer Day’.
v. Consumer Organisations
Consumer organisations have been active in India to promote and protect the interests of consumers. Consumer movement is gearing up in India. It is helping individuals to seek quick and adequate redressal of their grievances. It is essential to strengthen consumer movement throughout the country.
vi. Consumer Welfare Fund (CWF)
Department of Consumer Affairs has created Consumer Welfare Fund (CWF) for providing financial assistance to strengthen the voluntary consumer movement, particularly in rural areas. This fund is used for:
a. Training and research in consumer education
b. Complaint handling
c. Counselling and guidance mechanisms
d. Product testing labs etc.
vii. Legislative Measures
A number of laws have been enacted in India to safeguard the interest of consumers and protect them from unethical business practices. Some of these laws are:
a. Sale of Goods Act, 1930
b. Essential Commodities Act, 1955
c. Standards of Weights and Measures Act, 1956
d. Bureau of Indian Standards Act, 1969
e. Food Safety and Standards Act, 2006
f. National Food Security Act, 2013
Although there are a number of laws, they could not provide complete and fair justice to consumers. Therefore, an exclusive Act has been advocated in the form of Consumer Protection Act, 2019.
Question 3.
Explain the types of market on the basis of area and time.
Answer:
The term ‘Market’ is derived from the Latin word ’mercatus’ which means ’to trade’, ’to trade merchandise’ or ’a place where business is transacted’. In simple words, market is a place where two or more parties are involved in buying and selling. These two parties involved in the transaction are called buyers and sellers.
i. Types of markets on the basis of area covered are as follows:
a. Local Market: The market for the commodities which are sold within the local geographical limits of a region is known as a local market.
E.g.: Vegetables grown by a small farmer are sold by him in local market.
b. National Market: The market for the commodities which are sold within the country is known as national market.
E.g.: Books published by a publisher for competitive exams like CA or CS are sold in national market.
c. International Market: The market for the commodities that are produced in one country and sold in other countries is known as international market.
E.g.: Tea grown in Assam is export quality and sold in international market.
ii. Types of market on the basis of time are as follows:
a. Very Short Period Market: The market that exists for a very short period of time i.e. for a few hours or for a day at a particular time and place is known as very short period market. In this type of market, perishable goods such as vegetables, fruits, milk products, etc. are sold.
E.g.: There are many places in Maharashtra where a market is held for a particular day during the week where farmers from nearby villages come and sell directly to consumers.
b. Short Period Market: This type of market exists for a short period of time viz. weekly markets, festival markets, market during fairs etc. Perishable or semi-durable goods are sold in this market.
c. Long Period Market: This type of market exists for a long period of time. Durable commodities which are generally non-perishable in nature are sold in this market.
Question 8.
Answer the following: (Any One) [8]
Question 1.
What are the techniques of scientific management? Explain in detail.
Answer:
According to Taylor, “Scientific management consists of knowing what you (i.e. management) want men to do exactly; and seeing it that they do it in the best and the cheapest manner.”
Some of the major techniques of scientific management are as follows:
i. Work Study
Management should do proper work study before assigning the work to the available workforce. Work study consists of an organised, systematic and critical assessment of the various activities or functions. Work study is based on the techniques such as time study, motion study, method study and fatigue study.
a. Time Study
It is a technique whereby the management observes and records the time taken by an employee to complete a given task. With the help of time study, the precise time required for each element of work is determined. This technique helps to fix a standard time required to do a particular task under given condition. It is useful to measure the efficiency of an employee and to control the cost of work.
E.g.: A worker completing the job before the standard time can be given an extra incentive.
b. Method Study
There are always various methods of completing the task. However, for best quality and cost effectiveness, the best method of doing a particular job needs to be identified. It helps in reducing wastage of time and raw material as well as in improving the utility of all resources. It also aids in determining the effective methods for handling raw materials, transportation, inspection, storage etc.
c. Motion Study
The study of required motion (i.e., movement of an employee as well as of machine) while completing a particular task is very important. The management must engage in such motion study to find the best method of doing a particular job. If there are some motions which are unnecessary, they can be eliminated. It also helps in improving the efficiency of the employees. Motion technique helps to know if some elements of a job can be eliminated or their sequence can be changed for a smooth flow of task.
d. Fatigue Study
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 causing fatigue and take steps to reduce the fatigue in order to maintain operational efficiency.
ii. Standardisation of Tools and Equipment
Taylor conducted some experiments at his workplace and the results of these experiments inspired him to advocate this technique. It involves standardisation of working environment and methods of production. The employees should be provided with favourable working conditions and good tools and equipment. It helps in reducing spoilage and wastage of material, cost of production, and workers’ fatigue. It also improves quality of work.
iii. Scientific Task Setting
Taylor emphasised the need for fixing a fair day’s work. This technique is important to prevent the employees from doing work much below their capacity. This technique will enable the employees to complete the task according to given standards. Also, management can keep proper control on optimum utilisation of workforce.
iv. Scientific Selection and Training
This technique helps the management to select right persons for the right jobs. It needs to fix job specifications as per requirement. Employees are selected according to pre-determined standards in an impartial way. After selection, management should provide proper training programmes to increase their efficiency.
v. Functional Organisation
In this concept of Taylor, planning is separated from implementation. This means that planning is done by different people and different people supervise actual work. Thus, every worker is supervised by two different sets of supervisors. He recommended total eight foremen to control the various aspects of production. They are categorised as follows:
a. At Planning Level
- Route Clerk: Tells how work moves from one machine to other.
- Instruction Clerk: Records instructions to complete the work.
- Time and Cost Clerk: Determines the time required for work and workouts the cost.
- Discipline: Ensures that the workers are working as per factory rules.
b. At Implementation Level
- Gang Boss: Actually gets the work done.
- Speed Boss: Ensures that the work is completed in specified time.
- Repair Boss: Handles security and maintenance of machine
- Inspector: Ensures that the work is done as per the specified standards.
According to Taylor, with the help of proper division of all activities into planning and implementation, management can achieve the required performance from employees.
vi. Differential Piece-Rate Wage Plan
Taylor suggested the differential piece-rate wage plan. Under this system, higher rates are offered to employees who complete more work than the standard quantity. On the other hand, employees performing below the standard get lower rate of wages. This technique motivates the employees to attain higher standard performance and earn higher wages.
Question 2.
What are types of fire insurance policies?
Answer:
Fire insurance policy gives protection against the risk of damage to property by fire. Any property which is subject to damage by fire can be insured. Insurer undertakes to indemnify the loss incurred due to fire in return for consideration from the insured. The loss due to lightening and explosion is also covered under fire insurance.
The types of fire insurance policies are as follows:
i. Valued Policy
Under this policy, value of the subject matter of insurance is agreed upon at the time of making insurance contract. The insurer has to pay the agreed value to the insured in the event of loss due to fire, irrespective of the extent of loss. This policy is generally taken for goods whose value becomes difficult to calculate in case of loss by fire. E.g.: art work, sculptures, paintings, antique articles etc.
ii. Average Policy
This policy contains an average clause. When the subject matter of insurance is undervalued (i.e. the insured value is less than the market value), then in the event of loss by fire, the insurer is liable to pay only that percentage of loss for which the subject matter has been insured. E.g.: A good worth ₹ 50,000 is insured for the value of ₹ 40,000 (i.e., only 80% is insured). Suppose the loss due to fire is ₹ 30,000. In this case, the insurance company shall pay only ₹ 24,000 (i.e., 80% of the loss).
iii. Specific Policy
Under this policy, the property is insured for a specific (definite) sum irrespective of the market value, i.e., the actual value of the subject matter is not considered. In case of loss by fire, insurer has to pay the stated amount to the policy holder. E.g.: Mr. A takes a policy of ₹ 90,000 for an article valued at ₹ 1,50,000. In case fire occurs and Mr. A incurs a loss of ₹ 40,000, then insurance company will pay entire ₹ 40,000 to Mr. A and not just the proportionate amount.
iv. Floating Policy
When goods are lying at different locations or godowns or warehouses, a floating policy is taken to insure the risk. In this case, a specific policy cannot be taken because the quantity of goods lying at different locations fluctuates from time to time. Fluctuating policy is taken for one single sum and single premium amount is paid for all goods lying at different locations. The insurance company is liable to pay insured in case of damage by fire at any of the locations.
v. Excess Policy
This policy is taken when the value of goods or stock keeps on fluctuating. In such case, usually two policies are taken.
a. The value of first policy is amount equal to the minimum value of stock, i.e., the value of stock never falls below that value.
b. The value of second policy is amount equal to the difference between minimum and maximum possible value of stock. This policy is taken to cover the excess value by which the stock fluctuates.
E.g.: If the minimum stock value is ₹ 1,00,000 and maximum value is ₹ 1,50,000, then the first policy will be of ₹ 1,00,000 and second will be of ₹ 50,000.
vi. Reinstatement Policy
Under this policy, insurer replaces the property or goods instead of paying compensation in the event of loss by fire. The rate of premium is higher in case of reinstatement policy. While settling the claim and paying compensation, the depreciation incurred on the property is not considered.
vii. Comprehensive Policy
Generally, a fire insurance policy does not cover losses due to riots, war etc. When different types of risks such as loss due to fire, explosion, earthquakes, floods etc. are to be covered under one single policy, comprehensive policy is used. Thus, the insured need not take different policies to protect against various risks.
viii. Consequential Loss Policy
Although fire insurance is originally purchased to indemnify only the material loss, the consequential loss policy includes the loss of tangible as well as intangible properties. It provides an indemnity to the insured for loss of net profits, payment of standing charges and expenditure in respect of increased cost of working.
ix. Sprinkler Leakage Policy
This policy covers the damage to property on account of automatic sprinkler system which leaks or discharges water accidentally; rather than due to fire and smoke. However, is does not cover the discharge or leakage of water due to heat resulting from fire, repair or alteration of building, earthquake, war, explosion.