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HSC July 2022 OCM Board Paper Solution Maharashtra

July 2022 OCM Board Question Paper Solution | Maharashtra HSC
HSC Board Exam Paper July 2022

BOARD QUESTION PAPER : July 2022
ORGANISATION OF COMMERCE AND MANAGEMENT

Time: 3 Hrs. | Max. Marks: 80
HSC Board Exam Paper July 2022 HSC Board Exam Paper July 2022

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

(1) Principle of _______ is based on "a place for everything and everything in its place".
Options: (a) discipline (b) order (c) equity
Answer: Principle of order is based on "a place for everything and everything in its place".
(2) Principle of _______ is not applicable to life insurance.
Options: (a) insurable interest (b) utmost good faith (c) indemnity
Answer: Principle of indemnity is not applicable to life insurance.
(3) The process of contracting a business function to someone else is called as _______.
Options: (a) outsourcing (b) trading (c) e-business
Answer: The process of contracting a business function to someone else is called as outsourcing.
(4) Making timely payment of proper taxes is the responsibility of organisation towards _______.
Options: (a) shareholders (b) consumers (c) government
Answer: Making timely payment of proper taxes is the responsibility of organisation towards government.
(5) The term market is derived from the _______ word ‘mercatus’.
Options: (a) French (b) Latin (c) Italian
Answer: The term market is derived from the Latin word ‘mercatus’.

12th OCM Board Papers (March & July 2025)

Q.1. (B) Match the correct pairs: [5]

Group 'A' Answer (Group 'B')
(a) Controlling (4) It is the process of comparing the actual performance with the predetermined standard performance
(b) Business Services (1) Intangible in nature
(c) B2C (9) Business to consumer
(d) Consumer Protection Act (5) 2019
(e) Branding (10) Distinct Name

12th OCM Board Papers (March & July 2024)

Q.1. (C) Give one word / phrase / term: [5]

(1) First function of management.
Answer: Planning
(2) A type of bank account where a fixed sum of money is deposited for a fixed period.
Answer: Fixed Deposit Account
(3) Employment generation is the responsibility of the organisation towards this group.
Answer: Society / Community
(4) One who consumes any commodity or service.
Answer: Consumer
(5) A place where goods and services are bought and sold.
Answer: Market

12th OCM Board Papers (February & July 2023)

Q.1. (D) State true or false: [5]

(1) Standards are not set for every performance in controlling function.
Answer: False
(2) Business services are important for the growth of business.
Answer: True
(3) It is easy to set up e-business as compared to traditional business.
Answer: True
(4) Media does not play an important role in public life.
Answer: False
(5) Consumer, being the king of the market, does not have any rights.
Answer: False

12th OCM Board Papers (2014 - 2022)

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

(1) Esprit de corpse (Team work)
Answer: Henry Fayol has given emphasis on team work. Esprit de corps means union is strength. Running any organization is a group activity and human resources are the valuable asset of the organization. If all employees work as a union and with mutual trust, the difficulties can be solved quickly. Therefore, management should create a spirit of team work and understanding among employees to achieve organizational goals easily.
(2) Organising
Answer: Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them. It involves deciding who will do a particular task, where it will be done, and when it will be done. It is the synchronization and combination of workforce, physical, financial, and information resources for the achievement of defined goals.
(3) Banking
Answer: A bank is a financial institution which deals with deposits and advances and other related services. Banking service refers to the various services provided by banks such as accepting deposits, granting loans, transferring funds, agency functions, and utility functions to facilitate the smooth functioning of business and commerce.
(4) Directing
Answer: Directing is the soul of management function. It is the process of instructing, guiding, communicating, inspiring, motivating, and supervising the employees to achieve predetermined organizational goals. Directing initiates action and is a continuous process throughout the life of the organization.
(5) Lok Adalat
Answer: Lok Adalat is an effective and economical system for quick redressal of the public grievances. It can also be referred to as 'People's Court'. It is established by the government to settle disputes by compromise or settlement. The aggrieved party can directly approach the Adalat with grievance, and issues are discussed on the spot and decisions are taken immediately.
(6) Central Bank
Answer: The Central Bank is the apex financial institution in the banking sector of a country. It controls, regulates, and supervises the activities of commercial banks. It issues currency notes and acts as a banker to the government. In India, the Reserve Bank of India (RBI) is the central bank.

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

(1) Ms. Harshali has started new business two years ago. Her customers are located in different parts of the country and hence they are directly depositing bill amount in her business account. At the same time she used to pay various payments from this account only.
(a) Identify type of account maintained by Ms. Harshali.
Ans: Ms. Harshali maintains a Current Account. Current accounts are typically used by business firms and entail frequent transactions.

(b) Suggest any one modern way of money transfer to Ms. Harshali.
Ans: A modern way of money transfer would be NEFT (National Electronic Funds Transfer), RTGS, or UPI.

(c) Mention the facility she gets on her business account to meet her working capital requirement.
Ans: She gets the Overdraft facility on her current account to meet temporary working capital requirements.
(2) An organisation manufacturing paint has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank, which has created many health problems for the nearby villages.
(a) Which responsibility is neglected by manufacturing organisation?
Ans: The organisation has neglected its responsibility towards Society (or Community) Protection of Environment.

(b) What kind of pollution are they creating?
Ans: They are creating Water Pollution (and soil pollution) by dumping poisonous waste.

(c) Mention any one precautionary measure they need to take.
Ans: They need to install a Waste Treatment Plant to treat toxic waste before disposal or dispose of it safely in designated industrial waste zones.
(3) Mr. Jagdish purchases watch from Titan shop and his friend Shambhavi purchases mobile phone from online shopping site.
(a) Who shops through traditional business?
Ans: Mr. Jagdish shops through traditional business.

(b) Which shopping is done through e-business?
Ans: The shopping done by Shambhavi (purchasing a mobile phone from an online site) is done through e-business.

(c) Which business involves high risk?
Ans: E-business generally involves high risk due to lack of direct contact, anonymity, and potential for cybercrimes/frauds compared to the face-to-face nature of traditional business.

Q.4. Distinguish between (Any THREE): [12]

(1) District Commission and National Commission

Point of Difference District Commission National Commission
Meaning A consumer dispute redressal commission at each district established by the State Government. A consumer dispute redressal commission at the national level established by the Central Government.
Jurisdiction It covers a particular district. It covers the whole of India.
Monetary Jurisdiction Can entertain complaints where value of goods/services does not exceed Rs. 1 Crore. Can entertain complaints where value of goods/services exceeds Rs. 10 Crores.
Appeal Appeal against its order lies with the State Commission. Appeal against its order lies with the Supreme Court.

(2) Saving Account and Current Account

Point of Difference Saving Account Current Account
Meaning Account opened by individuals to save a part of their income. Account opened by businessmen and firms for regular banking transactions.
Withdrawals There are restrictions on the number of withdrawals. There are no restrictions on the number of withdrawals.
Interest Banks pay a low rate of interest on this account. Generally, no interest is given; sometimes banks charge service fees.
Facilities Passbook, Cheque book, ATM card, etc. Overdraft facility, Cheque book, Statement of account, etc.

(3) Staffing and Controlling

Point of Difference Staffing Controlling
Meaning It is the process of recruiting, selecting, placing, and training the right person for the right job. It is the process of comparing actual performance with standard performance and taking corrective actions.
Object To appoint right people at right places to achieve organizational goals. To ensure that activities are performed as per the plans.
Order It follows planning and organizing functions. It is the last function of management (an end function).
Factors It deals with human resources (internal factor). It deals with internal and external factors affecting performance.

(4) E-business and Traditional business

Point of Difference E-business Traditional Business
Formation Easy to form; low investment required. Difficult to form; requires physical space and capital.
Physical Presence Does not require physical space (virtual). Requires physical shops/offices.
Operating Cost Low operating cost. High operating cost.
Time Operates 24x7 (Round the clock). Operates for limited hours.

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

(1) Explain 4 P’s of Marketing mix.
Answer: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market. The 4 P’s are:
  • Product: Product refers to the goods or services offered to the customers. The product must satisfy consumer needs. It involves decisions regarding design, features, quality, packaging, and branding.
  • Price: Price is the value exchanged for a product. It is the amount a customer pays to buy the product. Pricing decisions affect the demand for the product and the profitability of the firm.
  • Place (Distribution): Place implies moving products from the place of production to the place of consumption. It involves channels of distribution (wholesalers, retailers) and physical distribution (transport, warehousing).
  • Promotion: Promotion is the communication process that persuades customers to buy the product. It includes advertising, personal selling, sales promotion, and public relations.
(2) State any four rights of the consumer.
Answer: The Consumer Protection Act provides several rights to consumers. Any four are:
  • Right to Safety: Consumers have the right to be protected against the marketing of goods and services which are hazardous to life and property (e.g., adulterated food, unsafe appliances).
  • Right to Information: The consumer has the right to be informed about the quality, quantity, potency, purity, standard, and price of goods to protect against unfair trade practices.
  • Right to Choose: The consumer has the right to be assured, wherever possible, access to a variety of goods and services at competitive prices.
  • Right to be Heard: The consumer has the right to represent himself and be heard at appropriate forums to voice their grievances.
(3) Give any four types of warehouses.
Answer: Warehouses are places where goods are stored. Four types are:
  • Private Warehouses: Owned and operated by big manufacturers and merchants for their own storage needs.
  • Public Warehouses: Specialized business establishments that provide storage facilities to the general public for a certain charge. They function under a license from the government.
  • Bonded Warehouses: Licensed by the government to accept imported goods for storage until the payment of customs duty. They are usually located near ports.
  • Cold Storage Warehouses: These provide facilities for perishable commodities like fruits, vegetables, dairy products, etc., maintaining low temperatures to preserve quality.

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

(1) Principles of management are flexible in nature.
Justification:
  • Management principles are not rigid like scientific principles. They are guidelines for action.
  • Business situations keep changing. Managers have to face different situations at different times.
  • Managers can modify the principles according to the nature of the organization, the situation, and the requirement of the time.
  • For example, the degree of centralization or decentralization depends on the size of the company.
  • Thus, principles of management are flexible and can be adapted.
(2) The Consumer Protection Act was passed in the interest of consumer.
Justification:
  • Prior to the Act, the doctrine of 'Caveat Emptor' (Let the buyer beware) prevailed, leaving consumers vulnerable to exploitation.
  • Consumers were often cheated through adulteration, black marketing, misleading advertisements, and defective goods.
  • The Consumer Protection Act (originally 1986, now 2019) was passed to protect and promote the rights of consumers.
  • It established a three-tier quasi-judicial machinery (District, State, National commissions) for simple, speedy, and inexpensive redressal of consumer grievances.
  • It recognizes consumer rights like safety, information, and choice. Hence, it was passed purely in the interest of the consumer.
(3) Organisation facilitates administration as well as operation of the organisation.
Justification:
  • Organising involves grouping activities and establishing authority-responsibility relationships.
  • It provides a framework for administration by defining who has the authority to take decisions (Top level management).
  • It facilitates operation by assigning specific tasks to specific individuals (Lower/Operational level management).
  • Proper division of work ensures that operational tasks are performed efficiently without duplication.
  • Thus, a sound organization structure supports both the administrative function of planning/policy-making and the operational function of execution.
(4) Business organisations have many social responsibilities.
Justification:
  • Business is an integral part of society. It takes resources from society and sells output to society.
  • Therefore, it is obligated to protect and contribute to the welfare of society.
  • Businesses have responsibilities towards various interest groups: Shareholders (fair return), Employees (fair wages, safety), Consumers (quality goods, fair price), Government (tax payment), and Society (environment protection).
  • Ignoring these responsibilities can lead to social unrest, legal actions, and loss of reputation.
  • Hence, purely profit-making is not enough; business organizations must fulfill many social responsibilities.

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

(1) Explain various concepts of market.
Answer: The term market is understood in different ways:
  • Place Concept: Market is a specific place where buyers and sellers come together to exchange goods and services (e.g., a vegetable market).
  • Commodity Concept: Market is not a place but the commodity that is bought and sold. There are different markets for different commodities (e.g., Cotton market, Gold market).
  • Exchange Concept: Emphasis is on the free association of buyers and sellers for the purpose of exchange. The physical presence is not necessary (e.g., Online market).
  • Area Concept: Market is not restricted to a place but covers the entire area where buyers and sellers are spread and interact (e.g., National market, World market).
  • Demand or Customer Concept: Market refers to the aggregate demand of potential buyers for a product or service. "Customer is the market."
(2) Explain the characteristics of Entrepreneurship Development.
Answer: Entrepreneurship is a purposeful activity of an individual or a group of associated individuals, undertaken to initiate, maintain or aggrandize profit by production or distribution of economic goods and services. Characteristics include:
  • Innovation: Entrepreneurship involves introducing something new—a new product, method, market, or source of raw material. It is a creative activity.
  • Economic Activity: It involves the production and distribution of goods and services for satisfying human wants and earning profit. It is not a hobby.
  • Organization Building: An entrepreneur brings together various factors of production like land, labour, and capital to organize business activity.
  • Creative Activity: It is not just doing old things in a new way but bringing new value. It involves discovering new opportunities.
  • Managerial Skill and Leadership: An entrepreneur needs strong leadership qualities to guide the team and managerial skills to handle the business effectively.
  • Risk Bearing: This is the most important characteristic. An entrepreneur assumes the risk of uncertainty in business in return for potential profit.
(3) Explain any five principles of management given by Henry Fayol.
Answer: Henry Fayol, the 'Father of Modern Management', suggested 14 principles. Five of them are:
  • Division of Work: Work should be divided into small tasks and assigned to employees based on their skills and capabilities. This leads to specialization and increased efficiency.
  • Authority and Responsibility: Authority is the right to give orders, and responsibility is the obligation to perform. They must go hand in hand. Authority without responsibility leads to arrogance, and responsibility without authority leads to inaction.
  • Discipline: Discipline means obedience, respect for authority, and observance of rules. It is essential for the smooth running of business. It requires good supervisors at all levels.
  • Unity of Command: Each employee should receive orders from only one superior. Dual command creates confusion, conflict, and lack of discipline.
  • Unity of Direction: "One head, one plan." All activities with the same objective should be directed by one manager using one plan. This ensures coordination and focus.

Q.8. Answer the following (Any ONE): [8]

(1) What is insurance? Explain the principles of insurance.
Answer:

Meaning: Insurance is a contract between the insurer (insurance company) and the insured (policyholder), wherein the insurer agrees to compensate the insured against a specific loss caused by a specific event (risk) in exchange for a consideration called 'premium'. It is a mechanism of risk transfer.

Principles of Insurance:

  • Principle of Utmost Good Faith (Uberrimae Fidei): Both parties must disclose all material facts accurately. The insured must provide complete information about the subject matter, and the insurer must clarify the policy terms. Hiding facts can void the contract.
  • Principle of Insurable Interest: The insured must have a financial interest in the subject matter of insurance. The insured must suffer financial loss if the subject matter is damaged and gain if it remains safe. This interest must exist at the time of taking the policy (for life) or at the time of loss (for fire/marine).
  • Principle of Indemnity: Insurance is not for making a profit. The insurer promises to put the insured back in the same financial position as they were before the loss. Compensation is limited to the actual loss or the sum assured, whichever is less. (Not applicable to Life Insurance).
  • Principle of Subrogation: After compensating for the loss, the ownership rights of the damaged property shift to the insurer. The insured cannot claim the scrap value after receiving full compensation.
  • Principle of Contribution: If a person insures the same subject matter with multiple insurers (double insurance), in case of loss, all insurers will contribute proportionately to the actual loss. The insured cannot recover more than the actual loss.
  • Principle of Mitigation of Loss: The insured must take all reasonable steps to minimize the loss in the event of a mishap (e.g., calling the fire brigade in case of fire). They should not act carelessly just because they are insured.
  • Principle of Causa Proxima (Nearest Cause): When a loss is caused by more than one cause, the nearest or proximate cause (most dominant cause) is considered to determine the liability of the insurer.
(2) Define marketing. Explain the functions of marketing in detail.
Answer:

Definition: According to Philip Kotler, "Marketing is a societal process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others."

Functions of Marketing:

  • Marketing Research: It involves collecting and analyzing information about consumer needs, preferences, market trends, and competitors. It helps in decision-making regarding what to produce and when.
  • Buying and Assembling: Buying involves collecting raw materials or finished goods from various sources. Assembling involves gathering goods at a central place for grading or packaging.
  • Product Development: It involves designing the product to meet consumer expectations regarding quality, shape, design, and utility. Good design attracts customers.
  • Standardization and Grading: Standardization means setting specific standards for quality, size, and design. Grading involves classifying products into groups based on these standards (e.g., Grade A wheat). It helps in pricing.
  • Packaging and Labelling: Packaging protects the product from damage and acts as a silent salesman. Labelling provides detailed information about the product (ingredients, price, expiry date).
  • Branding: Giving a distinct name, symbol, or logo to the product to differentiate it from competitors. A brand builds an image and loyalty (e.g., Tata, Apple).
  • Pricing: Determining the monetary value of the product. It depends on cost, demand, and competition. Correct pricing is crucial for sales volume and profit.
  • Promotion: Informing and persuading customers to buy the product through advertising, sales promotion, personal selling, and publicity.
  • Transportation: Physical movement of goods from the place of production to the place of consumption. It creates place utility.
  • Warehousing: Storing goods from the time of production until they are sold. It bridges the time gap and creates time utility.
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