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

1. / a. Advertisement
b. Hindrance of information / ½
1/2
2. / No
Dealings in goods and services on a regular basis / ½
1/2
3. / Yes
Partner by estoppel / ½
1/2
4. / Mitigation
State / ½
1/2
5. / The compensation will be settled in the ratio of 1:1.
Principle of contribution / 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 real time and gross basis. / 1
7. / No he cannot get the entire sum assured, he will get only the amount of loss to the extent of 15 lakh from the insurance company.
The relevant principle is –Principle of indemnity / ½
½
8. / Net banking transfer / 1
9. / Following three privileges will be explained:
Index of members- A private company is not required to keep an index of members
Commencement of Business-A private company can start business as soon as it receives Certificate of Incorporation
Statutory meetings & Statutory Reports-A Private Company is not legally bound to conduct Statutory meetings & submit copies of statutory reports to the registrar of companies / 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. Departmental undertakings
b. Any two examples: Indian railways, Ministry of defence, Post and telegraph / 1
1X2
12. / A. Fixed Deposit account
B-Explanation of Fixed deposit account :
  • It is an account in which the amount is deposited with the bank for a fixed period of time
  • The main purpose of this account is to enable the individuals to earn a higher rate of interest on their surplus funds
  • The period of fixed deposit ranges from 15 days to 10 years
  • The amount can be deposited once in a fixed deposit account. If the investor wants to make further investments under Fixed deposit account,separate accounts need to be opened.
  • It is also known as term/time deposit.
/ 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 Customers(B2C)
b.
Basis / Traditional Business / E-Business
Cost of setting up / High-reason / Low-reason
Transaction Risk / High degree of transactional risk / Transaction risk-low
/ 1
1X2
15. / Yes, I agree that profit is the primary motivating force for an economic activity.
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. Incorporation of a company-1 mark
B. Documents to be filed-Any 6 of below-
  • Memorandum of Association
  • Articles of Association
  • Consent of proposed directors & an undertaking from them to buy & pay for qualification shares
  • Agreement if any with proposed managing director, manager & whole time director
  • Copy of registrar’s letter regarding approval of name of the company
  • Notice of exact address of the registered office
  • Statutory declaration stating that all the legal formalities of Incorporation have been fulfilled. This declaration can be signed by an advocate of Supreme Court or a High Court or a Chartered Accountant or a company secretary in whole time practice in India.
/ 1
1/2 mark for each document specified-1/2 X 6=3
17. / a. Yes husband will get the compensation as husband had insurable interest in wife at the time of taking the policy-elaborate the reason
b. Explanation of the principle of Insurable Interest / 1+1
2
18. / a. No, Insurance company will not be liable to pay the insured amount to the legal heirs of Rishab because he has not disclosed about his heart problem at the time of taking the policy ,thereby he has concealed an important Material fact which should have been disclosed as per the Principle of Utmost Good faith.
b. Explain principle of utmost good faith / 1+1
2
19. / Meaning of Outsourcing-Outsourcing refers to contracting out some of its activities to a third party which were earlier performed by the Organisation.
Nature for Outsourcing –Any 3 of the Following Points
  • Outsourcing involves contracting out
  • Non Core Business activities are outsourced
  • Processes may be Outsourced to a captive unit or a third party
/ 1
1X3
20. / Commerce is considered as the backbone of industry and other business activities as it helps to remove 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. Memorandum of association
b. Articles of association
c. Explanation of Name clause
Explanation of Objects clause
Explanation of registered office clause / 1
1
1X3
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
Subject matter / Human Life / Physical property or assets / Ship, cargo or freight
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. Sole Proprietorship
b. Merits of sole proprietorship (any three)
Demerits of sole proprietorship (any two) / 1
1X3
1X2
25. / a. Customer to customer(C2C)-explain
b. Business to customer(B2C)-explain
c. Intra b Commerce-explain / 1+1
1+1
1+1
26. / Explain following points of Industrial Policy 1991
a. Reduction in the number of industries reserved for the Public sector from 17 to 8
b. Disinvestment of shares of a select set of Public Sector Enterprises
c. Policy regarding Sick Public sector units / 1+1
1+1
1+1
27. / a. While Poonam is into business, Sunil is into profession
Give the difference between Business & Profession 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. Pooja 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:
Love and Care for underprivileged children / 1X2
1 X 2
1
½ X2