HSC Board Exam 2024 Organisation of Commerce and Management (OCM) Question Paper

Organisation of Commerce and Management (OCM) - HSC Board Question Paper 2024

DAY 05 SEAT NUMBER [ ]

2024 II 26 1100 J-828 (E)

ORGANISATION OF COMMERCE AND MANAGEMENT (51)

Time: 3 Hrs. (7 Pages) 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.

HSC OCM Question Paper 2024 - Image Gallery

Q. 1. (A) Select the correct options and rewrite the sentences : (5) [20]

(1) _________ was regarded as the father of scientific management.

(a) Henry Fayol
(b) F.W. Taylor
(c) Philip Kotler

(2) Start-up India is an initiative of the _________.

(a) RBI
(b) Government of India
(c) World Bank

(3) Door to door service is provided by _________ transport.

(a) Railway
(b) Air
(c) Road

(4) For economic growth and National Security _________ stability is required.

(a) Political
(b) Social
(c) Economic

(5) In India the Consumer Protection Act was initiated in the year _________.

(a) 1947
(b) 1989
(c) 1986

(B) Match the correct pairs : (5)

Group 'A'

(a) Principle of Unity of direction
(b) Planning
(c) Warehousing
(d) Consumer Right
(e) Registered brands

Group 'B'

(1) Right to information
(2) Last function of Management
(3) Distinct Name
(4) One head one plan
(5) Seller
(6) Basic function of management
(7) Time Utility
(8) General guidelines
(9) Trademark
(10) Place Utility

(1) Co-operation is not necessary for smooth flow of organizational activities.
(2) Current Account is opened by salaried persons.
(3) With the help of outsourcing company we can focus on the core areas.
(4) The seller has to recognize the rights of consumer.
(5) The term market is derived from the Latin word "mercatus."

(D) Find the odd one : (5)

(1) Selecting, training, co-ordinating, placing.
(2) NABARD, RBI, SIDBI, EXIM
(3) Debit card, Credit card, Aadhar card, ATM card
(4) Job security, Health and safety measures, Good working condition, Reasonable profit.
(5) Price, People, Promotion, Product.

Q. 2. Explain the following terms / concepts (Any FOUR) : [8]

(1) Principle of Discipline
(2) Communication
(3) Business ethics
(4) Corporate Social Responsibility (CSR)
(5) Right to choose
(6) Market

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

(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 harmonize the work done by the employees of different departments while achieving organizational goals. Mr. Desai is looking after the arrangement of required resources to the business organization.

Mention the name of employee engaged in following functions:

Organising
Directing
Co-ordinating

(2) Mr. Ashok visited a shop to buy a pair of shoes of ₹700. The salesman forced him to buy a pair of bigger size shoes of ordinary company by claiming this size would be suitable to him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite of availability of stock.

In above case:-

Which right has been violated?
Is Mr. Ashok a buyer or an ultimate consumer?
Where can Mr. Ashok file his complaint?

(3) Mr. A deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from commercial bank. He invests his funds in the equity shares.

From where does Mr. A borrow money?
Name the market where does Mr. A invest his funds.
Which type of currency is required for international market?

Q. 4. Distinguish Between the following (Any THREE) : [12]

(1) Directing and Co-ordinating.
(2) Road transport and Rail transport
(3) Bonded warehouse and Duty paid warehouse.
(4) District commission and State commission.

Q. 5. Answer in brief (Any TWO): [8]

(1) Explain any four principles of management of Henry Fayol.
(2) Explain any four characteristics of an entrepreneur.
(3) Explain advantages of Business Process Outsourcing (BPO).

Q. 6. Justify the following statements (Any TWO) : [8]

(1) Management principles are helpful in optimum utilization of resources.
(2) It is easy to set up E-business as compared to traditional business.
(3) Business should allow participation of workers in management.
(4) There is a need of branding to get recognition among the consumers.

Q. 7. Answer the following (Any TWO) : [10]

(1) Explain the importance of planning.
(2) Explain E-banking service.
(3) Explain rights of consumers.

Q. 8. [8]

What is insurance? Explain types of life insurance policies.

What is Marketing Mix? Explain 7Ps of Marketing Mix.

Solutions - HSC OCM Board Paper 2024

Q. 1. (A) Select the correct options and rewrite the sentences

F.W. Taylor was regarded as the father of scientific management.
Start-up India is an initiative of the Government of India.
Door to door service is provided by Road transport.
For economic growth and National Security, Political stability is required.
In India the Consumer Protection Act was initiated in the year 1986.

(B) Match the correct pairs

(a) Principle of Unity of direction → (4) One head one plan
(b) Planning → (6) Basic function of management
(c) Warehousing → (7) Time Utility
(d) Consumer Right → (1) Right to information
(e) Registered brands → (9) Trademark

Co-operation is not necessary for smooth flow of organizational activities.
Answer: False. (Co-operation, which is voluntary group effort, is essential for achieving organizational goals effectively and for smooth functioning.)
Current Account is opened by salaried persons.
Answer: False. (Current Account is opened by business firms and individuals who have numerous daily banking transactions. Salaried persons usually open a Savings Account.)
With the help of outsourcing company we can focus on the core areas.
Answer: True. (Outsourcing non-core activities allows a business to concentrate its resources, time, and expertise on its primary functions, leading to better performance.)
The seller has to recognize the rights of consumer.
Answer: True. (The Consumer Protection Act mandates that sellers must respect and uphold the rights of consumers, such as the right to safety, information, and choice.)
The term market is derived from the Latin word "mercatus."
Answer: True. (The word 'market' originates from the Latin word 'mercatus', which means 'to trade', 'traffic' or a place where business is conducted.)

(D) Find the odd one

Selecting, training, co-ordinating, placing.
Odd one: Co-ordinating
Reason: Selecting, training, and placing are all elements of the 'Staffing' function of management, whereas Co-ordinating is a separate and distinct function of management.
NABARD, RBI, SIDBI, EXIM
Odd one: RBI
Reason: NABARD, SIDBI, and EXIM are specialized development financial institutions for specific sectors (agriculture, small industries, export-import). The RBI (Reserve Bank of India) is the central bank and apex monetary authority of the country, regulating all other banks.
Debit card, Credit card, Aadhar card, ATM card
Odd one: Aadhar card
Reason: Debit card, Credit card, and ATM card are all financial instruments used for banking transactions. An Aadhar card is primarily an identity and address proof document.
Job security, Health and safety measures, Good working condition, Reasonable profit.
Odd one: Reasonable profit
Reason: Job security, health and safety measures, and good working conditions are social responsibilities of a business towards its employees. Reasonable profit is an economic objective and a responsibility towards the owners/shareholders.
Price, People, Promotion, Product.
Odd one: People
Reason: Price, Promotion, and Product are part of the traditional 4 Ps of the Marketing Mix. People is an element of the extended 7 Ps of the service marketing mix.

Q. 2. Explain the following terms / concepts (Any FOUR) [8]

(1) Principle of Discipline: Discipline refers to obedience, application, and respect for the rules and regulations of the organization. According to Henry Fayol, discipline is essential for the smooth functioning of any organization. It implies adherence to the code of conduct, employment agreements, and established procedures. Good supervision at all levels, clear and fair agreements, and judicious application of penalties are necessary for maintaining discipline.
(2) Communication: Communication is the process of exchanging information, ideas, thoughts, feelings, and emotions between two or more persons. In management, it is a vital process that involves a sender encoding a message, transmitting it through a channel to a receiver, who then decodes it and provides feedback. Effective communication is crucial for functions like planning, directing, coordinating, and controlling, and for maintaining good human relations within the organization.
(3) Business ethics: Business ethics refers to the moral principles and standards that guide the behavior and decision-making in the world of business. It is a code of conduct that a business is expected to follow while dealing with its stakeholders, including customers, employees, investors, society, and the government. It involves practices like fair pricing, providing quality goods, avoiding adulteration, ensuring worker safety, and being truthful in advertising.
(4) Corporate Social Responsibility (CSR): Corporate Social Responsibility is a business concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. It is the responsibility of an organization for the impacts of its decisions and activities on society and the environment. This includes responsibilities towards different groups such as owners, employees, consumers, government, and the community at large, going beyond legal requirements to contribute to societal goals.
(5) Right to choose: The Right to Choose is a fundamental right of a consumer as defined under the Consumer Protection Act. It means that the consumer must be assured, wherever possible, access to a variety of goods and services at competitive prices. In the case of monopolies, it means the right to be assured of satisfactory quality and service at a fair price. This right protects consumers from being forced to buy a particular product or from being exploited by a single powerful seller.
(6) Market: In traditional terms, a market is a physical place where buyers and sellers gather to exchange goods and services. In modern marketing terms, a market refers to the set of all actual and potential buyers of a product or service. It doesn't necessarily mean a physical location; it can exist wherever a transaction can take place, such as online through e-commerce platforms. The concept of a market is central to business and involves understanding customer needs and demands.

Q. 3. Study the following case / situation and express your opinion (Any TWO) [6]

(1) Case Analysis:

Mr. Desai is arranging required resources (man, money, material, machine), which is the core of the 'Organising' function. Mr. Lele is instructing, guiding, and motivating employees, which are key elements of the 'Directing' function. Mr. Sayyad is harmonizing the work of different departments, which is the definition of the 'Co-ordinating' function.

Answers:

Organising - Mr. Desai
Directing - Mr. Lele
Co-ordinating - Mr. Sayyad

(2) Case Analysis:

Mr. Ashok was forced to buy a bigger size shoe of an ordinary brand, which violated his right to choose the product he wanted. The shopkeeper then refused to replace the item, violating his right to seek redressal. As he purchased the shoes for personal use, he is the ultimate consumer.

Answers:

Which right has been violated?
The 'Right to Choose' has been primarily violated as the salesman forced Mr. Ashok to buy shoes he did not intend to. Subsequently, the 'Right to be Heard' and the 'Right to Seek Redressal' were violated when the shopkeeper denied his complaint and refused to replace the shoes.
Is Mr. Ashok a buyer or an ultimate consumer?
Mr. Ashok is an ultimate consumer because he purchased the shoes for his personal use and not for resale or any commercial purpose.
Where can Mr. Ashok file his complaint?
Since the value of the goods (shoes) is ₹700, which is less than ₹1 crore, Mr. Ashok can file his complaint in the District Consumer Disputes Redressal Commission (District Forum) of the respective district.

(3) Case Analysis:

The case describes three distinct financial activities: borrowing from a commercial bank, needing foreign currency for international trade, and investing in equity shares.

Answers:

From where does Mr. A borrow money?
Mr. A borrows money from a commercial bank.
Name the market where does Mr. A invest his funds.
Mr. A invests his funds in equity shares, which are traded in the Capital Market, specifically the Stock Exchange (or Share Market).
Which type of currency is required for international market?
Foreign currency (e.g., US Dollar, Euro, Pound Sterling) is required for transactions in the international market.

Q. 4. Distinguish Between the following (Any THREE) [12]

(1) Directing and Co-ordinating

Point of Distinction	Directing	Co-ordinating
Meaning	It is a function of management that involves instructing, guiding, inspiring and motivating subordinates to achieve organizational goals.	It is the process of integrating the activities of different units of an organization to achieve organizational goals smoothly.
Objective	To get the work done by giving instructions and motivating subordinates.	To ensure harmony and unity of action among all departments and employees.
Scope	Directing is a specific function of management. Its scope is narrower.	Co-ordination is required in all functions of management (planning, organising, etc.). Its scope is wider; it's the essence of management.
Order	Directing follows organising and staffing.	Co-ordination is a continuous process that is performed simultaneously with all other functions.

(2) Road transport and Rail transport

Point of Distinction	Road Transport	Rail Transport
Meaning	Movement of goods and passengers on land by road using vehicles like trucks, buses, and cars.	Movement of goods and passengers on land through trains that run on railway tracks.
Capital Investment	It requires comparatively less capital investment as the cost of vehicles and road construction is lower.	It requires a very high capital investment for laying tracks, building stations, and manufacturing rolling stock.
Flexibility & Reach	Highly flexible as it provides door-to-door service and can reach remote areas not connected by rail.	It is inflexible as it operates on fixed routes and schedules between specific stations. It cannot provide door-to-door service.
Carrying Capacity	It has a limited carrying capacity compared to railways.	It has a very large carrying capacity and is suitable for transporting bulky goods in large quantities.
Suitability	Suitable for short distances and for transporting perishable goods like fruits and vegetables.	Suitable for long distances and for transporting heavy and bulky goods like coal, steel, and grains.

(3) Bonded warehouse and Duty paid warehouse

Point of Distinction	Bonded Warehouse	Duty Paid Warehouse
Meaning	A warehouse licensed by customs authorities to store imported goods on which customs duty has not yet been paid.	A public warehouse used to store goods after the importer has paid the full customs duty.
Payment of Duty	Goods are stored before the payment of customs duty. The duty can be paid in installments.	Goods are stored only after the full customs duty has been paid.
Control	These warehouses are under the strict control and supervision of customs authorities.	These warehouses are not under the direct control of customs authorities.
Objective	The main objective is to allow importers to defer the payment of customs duty until the goods are sold or required.	The main objective is the safe storage of goods after they have been cleared by customs.

Q. 5. Answer in brief (Any TWO) [8]

(1) Explain any four principles of management of Henry Fayol.

Henry Fayol, the father of modern management, proposed 14 principles of management. Four of them are explained below:

Principle of Division of Work: This principle states that the total work should be divided into smaller tasks, and each task should be assigned to a specialist. This leads to specialization, which increases efficiency, productivity, and accuracy. For example, in a bank, some employees handle cash (cashiers), while others handle customer queries or loan processing.
Principle of Authority and Responsibility: Authority is the right to give orders and obtain obedience, while responsibility is the obligation to perform the assigned task. Fayol suggested that there must be a balance between authority and responsibility. Giving authority without responsibility can lead to its misuse, while giving responsibility without adequate authority makes a person ineffective.
Principle of Unity of Command: According to this principle, each employee should receive orders and instructions from only one superior. This avoids confusion, conflicts, and dual subordination. If an employee reports to more than one boss, it can create a breakdown of discipline and order.
Principle of Unity of Direction: This principle states that "one head and one plan" for a group of activities having the same objective. All units of an organization should be moving towards the same goals through coordinated efforts. For example, if a company is manufacturing cars, all departments (production, marketing, finance) must work towards the common objective of producing and selling cars.

(2) Explain any four characteristics of an entrepreneur.

An entrepreneur is a person who starts a new business, bearing most of the risks and enjoying most of the rewards. Four key characteristics are:

Innovator: An entrepreneur is fundamentally an innovator who introduces new combinations of production factors. This can be in the form of a new product, a new production method, a new market, or a new way of organizing the business. They constantly look for opportunities to create value.
Risk-Taker: Starting a new venture is inherently risky. An entrepreneur takes calculated risks. They bear the uncertainty of the business, including financial, technological, and market risks, in the hope of earning a profit.
Leadership: An entrepreneur must be an effective leader who can guide, motivate, and influence their team to work towards the company's vision. They need to build a team, set a clear direction, and inspire others to follow it.
Decision-Maker: An entrepreneur has to make numerous decisions regarding the business, such as what to produce, how to produce, whom to hire, and where to sell. They must make timely and effective decisions to ensure the survival and growth of the enterprise.

(3) Explain advantages of Business Process Outsourcing (BPO).

Business Process Outsourcing (BPO) is the practice of contracting non-core business activities to third-party providers. Four major advantages are:

Cost Reduction: The most significant advantage of BPO is cost savings. Companies can get work done at a lower cost, especially when outsourcing to countries with lower labor costs. This reduces expenditure on staff, infrastructure, and technology.
Focus on Core Activities: By outsourcing non-essential activities like customer service, accounting, or data entry, a company can free up its internal resources. This allows management and employees to focus their time, effort, and expertise on core business functions like product development and strategy, which are critical for success.
Access to Expertise and Technology: BPO vendors are specialists in their respective fields. By outsourcing, a company gains access to a pool of skilled and trained manpower, as well as the latest technology and software, without having to invest in them directly.
Increased Efficiency and Productivity: Since BPO firms are experts in the outsourced process, they can perform the tasks with greater efficiency and accuracy. This leads to improved productivity, faster turnaround times, and better quality of service for the company.

Q. 6. Justify the following statements (Any TWO) [8]

(1) Management principles are helpful in optimum utilization of resources.

This statement is TRUE. Management principles provide guidelines for managers to run the organization efficiently, which directly contributes to the optimum utilization of resources.

Systematic Approach: Principles provide a systematic and scientific basis for decision-making, replacing trial-and-error methods. This ensures that resources (man, material, money) are used in the best possible manner.
Division of Work: The principle of Division of Work leads to specialization. When work is divided and assigned to specialists, they perform the task more efficiently, leading to higher output with the same resources and minimizing wastage.
Scientific Task Setting: Principles of scientific management, like work-study (time study, motion study), help in determining a standard time and the best way to perform a job. This eliminates unnecessary movements and activities, thus saving time, energy, and resources.
Discipline and Order: Principles like Discipline, Order (a place for everything and everyone), and Equity ensure a smooth and orderly functioning of the organization. This reduces chaos, delays, and misuse of physical and human resources.

(2) It is easy to set up E-business as compared to traditional business.

This statement is TRUE. Setting up an E-business generally involves fewer complexities and lower initial investment compared to a traditional brick-and-mortar business.

Lower Setup Cost: A traditional business requires significant investment in physical premises (renting or buying a shop/office), interior decoration, and furniture. An e-business primarily requires a website or a presence on an e-commerce platform, which is far less expensive.
No Geographical Barriers: E-business is not limited by geography. A seller can reach a global audience from a single location without the need to set up physical stores in different places. This dramatically reduces expansion costs.
Flexible Business Hours: An e-business can operate 24/7 without the need for physical staff to be present at all times. This flexibility allows for continuous business operations and is easier to manage than the fixed timings of a traditional store.
Simplified Procedures: The legal and procedural requirements for starting a simple online business are often less complex than those for setting up a physical establishment, which may require multiple licenses and permits related to the premises.

Q. 7. Answer the following (Any TWO) [10]

(1) Explain the importance of planning.

Planning is the primary function of management that involves deciding in advance what to do, how to do it, when to do it, and who is to do it. Its importance is as follows:

Provides Direction: Planning provides a clear sense of direction to the organization. It defines the goals and objectives, and outlines the course of action to achieve them. This ensures that all efforts are directed towards the desired outcome.
Reduces Risks and Uncertainty: Business operates in an uncertain environment. Planning helps managers to look into the future, anticipate changes, and develop responses to deal with them. This reduces the risks associated with future uncertainties.
Minimizes Wasteful Activities: Planning ensures orderly and systematic activities. It helps in avoiding confusion, duplication of work, and overlapping of activities. This leads to the elimination of wastage of time, effort, and resources.
Facilitates Decision Making: Planning involves setting goals and evaluating alternative courses of action. It provides a rational basis for making decisions, as managers have a clear framework and criteria to choose the best option.
Sets Standards for Controlling: Planning provides the standards or benchmarks against which actual performance is measured. Without a plan, there is no basis for control. Controlling involves comparing actual results with planned targets and taking corrective action.

(2) Explain E-banking service.

E-banking (Electronic Banking) refers to the provision of banking products and services through electronic channels such as the internet, mobile phones, and ATMs. It allows customers to conduct financial transactions without visiting a physical bank branch. Key e-banking services include:

Automated Teller Machine (ATM): ATMs are electronic machines that allow customers to perform basic banking transactions like cash withdrawal, balance inquiry, mini-statement, and fund transfer, 24/7.
Internet Banking: This service allows customers to access their bank accounts and perform a wide range of transactions through the bank's website. Services include checking account statements, transferring funds (NEFT, RTGS, IMPS), paying bills, opening fixed deposits, and more.
Mobile Banking: This is an extension of internet banking provided through a mobile application. It allows customers to perform most banking transactions conveniently from their smartphones anytime, anywhere.
Credit and Debit Cards: These are plastic cards that enable cashless transactions. A debit card allows users to spend money by drawing on funds they have in their bank account, while a credit card allows them to borrow money from the bank to make purchases.
Electronic Fund Transfer (EFT): This system facilitates the transfer of money from one bank account to another electronically. Major EFT systems in India are NEFT (National Electronic Funds Transfer), RTGS (Real-Time Gross Settlement), and IMPS (Immediate Payment Service).

Q. 8. Answer the following [8]

What is insurance? Explain types of life insurance policies.

Insurance is a contract between two parties, the insurer (insurance company) and the insured (the individual or entity), whereby the insurer agrees to compensate the insured for a specified loss, damage, or death in exchange for a regular payment called a premium. It is a form of risk management primarily used to hedge against the risk of a contingent or uncertain loss.

Types of Life Insurance Policies:

Whole Life Policy: Under this policy, the insurance company pays the sum assured to the nominee of the insured only after the death of the insured. The premium is paid throughout the lifetime of the insured. It provides long-term financial protection to the family.
Endowment Policy: This policy is a combination of insurance and investment. The sum assured is paid either on the death of the insured or on the maturity of the policy, whichever is earlier. It serves the dual purpose of protection and savings.
Term Insurance Policy: This is the purest and most affordable form of life insurance. It provides a death benefit to the nominee if the insured dies within the specified term of the policy. If the insured survives the term, no benefit is paid.
Annuity Policy: In this policy, the insured pays a lump sum amount or regular premiums to the insurer, and in return, the insurer makes periodic payments (annuity) to the insured after a certain age. It is designed to provide a regular income after retirement.
Money Back Policy: This is a type of endowment policy where the insured gets a percentage of the sum assured at regular intervals during the policy term. The remaining sum assured, along with any bonus, is paid on maturity. In case of death, the full sum assured is paid to the nominee.

What is Marketing Mix? Explain 7Ps of Marketing Mix.

Marketing Mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. It is the combination of controllable marketing tools that a firm blends to produce the response it wants from its target market. It helps in making strategic decisions to effectively market a product or service.

The 7Ps of Marketing Mix is an extended model, especially for service-based businesses. The 7Ps are:

Product: This refers to the goods or services that a company offers to the target market. It includes decisions about quality, design, features, brand name, packaging, and services. The product must satisfy a customer's need or want.
Price: This is the amount of money customers have to pay to obtain the product. Pricing decisions are crucial as they affect demand and profitability. It includes list price, discounts, allowances, and credit terms.
Place (Distribution): This refers to the activities that make the product available to target consumers. It involves decisions about distribution channels, locations, inventory, transportation, and logistics. The goal is to ensure the product is available at the right place at the right time.
Promotion: This includes all the activities that communicate the merits of the product and persuade target customers to buy it. Promotional tools include advertising, public relations, personal selling, sales promotion, and direct marketing.
People: This refers to all the human beings who play a part in the service delivery and thus influence the buyer's perceptions. This includes the firm's employees, from frontline staff to management. The attitude and skills of the people are crucial in a service business.
Process: This refers to the procedures, mechanisms, and flow of activities by which the service is delivered. A smooth and efficient process enhances the customer experience. For example, the process of ordering food at a restaurant or opening a bank account.
Physical Evidence: This refers to the environment in which the service is delivered and where the firm and customer interact. It includes any tangible components that facilitate performance or communication of the service, such as the building's interior, signage, staff uniforms, brochures, and the company's website.