Marking Scheme-2017-SET A (Suggestive Hints)-Business Studies

1. / a. Earning Profits
b. Element of risk / ½
1/2
2. / Transportation / 1
3. / Unlimited Liability-The partners are jointly and individually liable for the debts of the firm to the extent of 50000. / 1
4. / The amount of compensation that can be claimed from Insurer A and B will be in the ration of 5:2.
Principle of contribution / ½
1/2
5. / Yes
Principle of insurable interest / ½
1/2
6. / It is an online system of transfer of funds from one account to another in which transfer of money takes place on net settlement basis . / 1
7. / No he cannot get the entire sum assured, he will get only the amount of loss to the extent of 210000 from the insurance company.
The relevant principle is –Principle of indemnity / ½
½
8. / Any two of the following:
a. Transactional risks
b. Data storage and transmission risks
c. Risk of threat to intellectual property and privacy / ½
½
9. / Any three advantages:
a. limited liability
b. Professional management
c. Scope for expansion
d. Perpetual succession / 1x3
10. / a. A partner of an unregistered firm cannot file a case against the firm or other partners
b. The firm cannot file the case against the partners
c. The firm cannot file a case against the third parties / 1
1
1
11. / a. Government company
b. Any two examples: Steel authority of India Ltd, BHEL, HMT etc / 1
1X2
12. / a. Current account
b. Explanation of Current account :
  • It is opened by businessmen who have a number of regular transactions with the bank
  • In current account amount can be deposited & withdrawn at any time without giving any notice. There is no restriction on the number & amount of deposits & withdrawals
  • Banks do not pay any interest on these accounts rather it imposes service charges for running these accounts
  • It is of continuing nature & as such there is no fixed period
/ 1
1/2X4
13. / Electronic business
Any two of the following advantages of electronic business:
  1. Ease of formation & lower investment requirements
  2. Convenience
  3. Speed
  4. Global reach
  5. Movement towards a paperless society
/ 1
1X2
14. / a. Business to Business (B2B)
b.
Basis / Traditional Business / E-Business
Formation / Difficult to form as lot of procedural requirements & huge investment on purchasing shops etc is required / Easy to form as no investment is required in purchasing shops or showrooms for display
Operating Cost / High due to fixed charges associated with investment in procurement & storage, production, marketing & distribution facilities / Low as a result of reliance on network of relationships rather than ownership of resources
/ 1
1X2
15. / Yes, I agree that the business must achieve sufficient profits to cover the risks of economic loss.
Following reasons justify the role of Profit in business:
  1. Survival-Explain -explain
  2. Expansion & Growth-Explain
  3. Better Reputation & Goodwill-Explain
  4. Reward for Risk taking-Explain
/ 1X4
16. / a-The specialised person who will undertake all the formalities for the formation of a company is Promoter of a company and he will take the help of various experts and analysts.
B- ½ mark for identification & ½ marks for explanation of each of the Feasibility studies:
  • Technical Feasibility
  • Financial Feasibility
  • Economic Feasibility
/ 1
1x3
17. / a. No, the insurance company will not pay the insured amount to the legal heirs of Akshay.
The principle of insurance violated above is-Principle of utmost good faith
Explain the principle of utmost good faith
b. Insurer has the right over the burnt goods
The relevant principle is-Principle of subrogation
Explain Principle of subrogation / 1/2
½
1
½
½
1
18. / a. Current account and Fixed deposit account
b. Explain Debit card
Explain Automatic teller machine / 1+1
1
1
19. / Meaning of Outsourcing-Outsourcing refers to contracting out some of its activities to a third party which were earlier performed by the Organisation.
Need for Outsourcing –Any 3 of the Following Points
  • Focusing of attention
  • Quest for Excellence
  • Cost Reduction
  • Growth through Alliance
  • Boost to Economic Development
/ 1
1X3
20. / Commerce help in maintaining a free and uninterrupted flow of goods and services between producers and consumers by it helping in removing the following hindrances:
  • Removes hindrance of place
  • Removes hindrance of time
  • Removes hindrance of risk
  • Removes hindrance of finance
  • Removes hindrance of information
/ (1X5)
21. / a. Yes the agreement will be legally binding on the company as the company becomes a separate legal entity irrespective of any flaw in the registration-elaborate
b. Yes it is mandatory for a Public company to get its shares listed on a stock exchange
Failure to do so:
- Allotment shall become void
-money received from the applicants will have to be returned within 8 days / 1
+
1
1
1
1
22. / a. Multinational Company
b. Any three features of multinational company
a. Expansion of Market Territory
b. Centralised control-
c. Foreign collaboration-
d. Advanced Technology-
c. Values- any two relevant values / 1
1X3
½ X2
23. / Basis / Life insurance / Fire Insurance / Marine
Duration / 5-30 / 1 year / Period of voyage
Insurable Interest / To be present at the time of taking the policy / To be present at the time of taking the policy as well as at the time of loss / To be present only at the time of loss
Indemnity / It is not a contract of Indemnity as entire amount is paid either at the maturity date or on the happening of the event / Principle of Indemnity is applicable as the actual loss or the sum assured, whichever is lower is received / Principle of Indemnity is applicable as the actual loss or the sum assured, whichever is lower is received
Surrender value/Paid up value / A life insurance contract has surrender or paid up value / A fire Insurance policy has no surrender or paid up value / A marine Insurance policy has no surrender or paid up value
Element / Life insurance contract contains both element of Protection & investment / Fire insurance has only element of protection / Marine Insurance contains only element of Protection
/ 1X5
24. / a. Partnership business-Partners have unlimited liability(explain)
b. Cooperative societies-Liabilities of the members is limited (explain)
c. Joint stock company-Liabilities of the shareholders is limited(explain) / 2
2
2
25. / Explain the following role of public sector before 1991:
1. Development of Infrastructure
2. Reducing regional imbalances
3. Checking over concentration of economic power
4. Import substitution
5. Taking advantage of economies of scale
Conclusion- explain / 1X6
26. / a. While Prateek is planning to join business, his friend Vineet is interested in getting employed by some company
Give the difference between Business & Employment on any of the following 2 basis:
Commencement, nature of work, qualification, capital investment, Risk Element, Reward/Return, Transfer of interest, Code of Conduct
b.Abhilasha is willing to pursue a non-economic activity, which can be defined as an activity performed out of love for children and not with the motive of earning money.
c.Value Depicted:
Sharing Responsibility
Quoted Lines: Prateek said that he is planning to join his father’s printing press after completing MBA.
Love and Care for underprivileged children
Quoted Lines: Since Abhilaha loves children, she shared her willingness to join an NGO and use her knowledge and skills to help underprivileged children / 2X2
1
½ X2
27. / a. Intra-B commerce-explain
b. Customer to business commerce-explain
c. Customer to customer commerce-explain / 1+1
1+1
1+1