📘 Business Studies
Answer key · March 2026 (QP code: 304)
✅ detailed solutions & reasoning
📄 Page 2 (Q1 – Q4)
1Management as unique way – relates to
(c) Management as an art
Art implies personal skill & creative application, unique to each manager.
2Mobile phone restriction in campus → type of plan?
(b) Rules
Rules prescribe specific action, no discretion.
3Test to measure ability to learn a job
(a) Aptitude test
Measures potential & capacity to learn new skills.
4Incorrect statement re: Maslow's assumptions
(d) A person moves to lower level of need only when a higher level need is satisfied.
Correct assumption: person moves to *higher* level after lower is satisfied.
📄 Page 3 (Q5 – Q10)
5Not part of capital structure
(c) Short term borrowings
Capital structure = long‑term funds only.
6Large scale production to reduce avg cost → concept?
(a) Production concept
Focus on high production efficiency & low cost.
7Not a function of packaging
(d) Product planning
Packaging = identification, protection, promotion. Planning is broader.
8Function reviewing operations
Controlling
Monitors performance & takes corrective action.
9Business environment that prohibits alcohol ads
Legal / Regulatory environment
Laws & regulations impose such bans.
10Framework within which org operates
Organisation Structure
Formal framework of hierarchy, authority & relationships.
📄 Page 4 (Q11 – Q16 · 2 marks each)
11Importance of consumer protection (consumer's view) – two points
Physical safety + Awareness & information
Protects from hazards; empowers informed choice.
12(a) Transportation (b) Product designing
Transport: place utility. Design: features, quality, packaging.
13Four external recruitment sources
Direct, casual, advertisement, employment exchange (placement agencies / campus also valid)
14How planning reduces overlapping?
Provides coordination & clarity, prevents duplication & waste.
15Significance of principles of management (any two)
Useful insights + optimum resource utilisation (or scientific decisions, adapting to change)
16Four top‑level management executives
Chairman, CEO, COO, President / MD
📄 Page 5 (Q17 – Q22 · 3 marks each)
17Delegation vs Decentralisation (freedom, purpose, nature)
Freedom: delegation restricts / decentralisation grants.
Purpose: lessen burden vs improve initiative.
Nature: compulsory act vs optional policy.
Purpose: lessen burden vs improve initiative.
Nature: compulsory act vs optional policy.
18Three on‑the‑job training methods
Apprenticeship, coaching, job rotation
19Non‑financial incentives (social & psychological)
Status, organisational climate (also job enrichment, empowerment)
20Three consumer responsibilities
Be aware, read labels carefully, assert yourself
21Three broad financial decisions
Investment, financing, dividend
22(a) differentiate efficient worker
(b) determine number of workers
(b) determine number of workers
(a) Differential piece wage system
(b) Work‑study (time & motion study)
(b) Work‑study (time & motion study)
📄 Page 6 – 7 (Q23 – Q27 · 4 marks)
23Fayol: Division of work, Unity of direction, Scalar chain, Equity
Division: specialisation. Unity: one head one plan. Scalar: chain of command + gang plank. Equity: fairness & justice.
24Match columns
(a) → (iii) Social; (b) → (ii) Political; (c) → (v) Economical; (d) → (i) Technological
25Trading on equity + Capital structure (short notes)
Trading on equity: using fixed-cost funds to increase EPS.
Capital structure: mix of long‑term funds (equity, debt, etc.)
Capital structure: mix of long‑term funds (equity, debt, etc.)
26Functions of PR department (any four)
Build image, media relations, crisis communication, events, stakeholder relations.
27Good control system helps (four points)
Achieve goals, judge standards accuracy, efficient resource use, improve motivation.
📄 Page 8 (Q28 – Q31 · 5 marks)
28Limitations of planning (five)
Lack of accuracy, costly, rigidity, time‑consuming, not guarantee of success, reduces creativity. (any five)
29Co‑ordination – meaning & four features
Meaning: integrating activities harmoniously.
Features: integrates group efforts, unity of action, continuous, all‑pervasive, responsibility of all managers.
Features: integrates group efforts, unity of action, continuous, all‑pervasive, responsibility of all managers.
30Fixed capital & four affecting factors
Fixed capital: funds in long‑term assets.
Factors: nature of business, scale, method of acquisition, technology upgradation.
Factors: nature of business, scale, method of acquisition, technology upgradation.
31(a) Circumstances for functional structure; (b) Span of management
(a) Large org with one major product / need for specialisation.
(b) Span of management: number of subordinates a manager can effectively control → determines levels.
(b) Span of management: number of subordinates a manager can effectively control → determines levels.
📄 Page 9 (Q32 – Q34 · 8 marks)
32Procedure for selection of employees
Preliminary screening → tests → interview → reference checks → selection decision → medical exam → job offer → contract.
334P's of marketing mix
Product, Price, Place, Promotion – explained with essence: product features, pricing, distribution, communication.
34Leadership: meaning, styles, need
Leadership: influencing people towards goals.
Styles: autocratic, democratic, laissez‑faire.
Need: influence behaviour, provide guidance, create confidence, build morale, facilitate change.
Styles: autocratic, democratic, laissez‑faire.
Need: influence behaviour, provide guidance, create confidence, build morale, facilitate change.
⭐ Quick reference: All answers follow the March 2026 QP. For multiple choice, correct option is highlighted. Reasoning included for conceptual clarity.