ISC Business Studies 2016 Class-12 Previous Year Question Paper Solved

ISC Business Studies 2016 Class-12 Previous Year Question Paper Solved for practice. Step by step Solutions with Questions of Part-1 and 2. By the practice of Business Studies 2016 Class-12 Solved Previous Year Question Paper you can get the idea of solving.

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ISC Business Studies 2016 Class-12 Previous Year Question Paper Solved

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Maximum Marks: 80
Time allowed: Three hours

  • Candidates are allowed additional 15 minutes for only reading the paper. They must NOT start writing during this time.
  • Answer Question 1 (Compulsory) from Part 1 and five questions from Part II, choosing two questions from Section A, two questions from Section B and one question from either Section A or Section B.
  • The intended marks for questions or parts of questions are given in brackets [ ].


Answer all questions

ISC Business Studies 2016 Class-12 Previous Year Question Paper Solved 

Question 1.
Answer briefly each of the questions (i) to (xvi) : [15 x 2]
(i) Define recruitment.
(ii) What is the significance of application blank in a selection procedure ?
(iii) Explain how office layout can act as a morale depressant as well as a morale stimulant.
(iv) State any two qualities of a good leader.
(v) Explain self-actualization need as given by Ma slow.
(vi) What is meant by production transfer ?
(vii) Define promotion.
(viii) What is decoding with reference to communication process ?
(ix) Differentiate between horizontal communication and vertical communication.
(x) Distinguish between a cellular phone and a cordless phone.
(xi) How does a business reply card help a business concern ?
(xii) What is the role of an appendix in a report ?
(xiii) Explain quorum.
(xiv) Give any two limitations of visual communication.
(xv) With reference to remuneration of employees, expand the following :
(a) HRA
(b) LTA
Answer 1:
(i) Recruitment refers to a process of searching for prospective employees and encouraging them to apply for jobs in the organisation. It is a positive process as it stimulates people to apply for jobs.

(ii) A Blank application form is designed to get a written record of candidate’s qualifications, experience and other details. It helps in seeming the necessary information about the candidates qualifications, training, experience, etc. in his own handwriting. This information is useful in determining the suitability of the candidate for the concerned job.

(iii) Office layout can act as a morale depressant as well as morale stimulant by offering meaningful and satisfying job which helps to improve employee morale. On the other hand, morale tends to be low when the job provides no challenge and sanctification and job standards are considered very high.

(iv) Some of the qualities, that are needed to make a leader effective are :
Physical Features : Physical features like height, weight, energy, health, appearance, etc. determine the personality of an individual, which is an important factor in determining success of leadership. A person who is physically fit is likely to appeal as a leader and attracts people.


Knowledge: A leader must possess thorough knowledge and competence of all the subjects, principles, procedures and operations of his field. Intelligent leaders are able to instruct and influence subordinates in an effective manner.

(v) Self-actualization Needs: These are the needs of the highest order. They are generally found in persons w hose first four needs have already been fulfilled. They are concerned with achieving what a person considers to be his mission of life. For instance, getting India free from the British regime was the mission of Mahatma Gandhi. Sense of achievement may be concerned with making new discoveries and doing unique things.

(vi) Production Transfers: Such transfers which are affected from one department of the organisation to another department keeping in view the labor requirements in different departments. In some department labor requirements may be decreasing and in some other they may be increasing. To avoid layoff of trained and efficient employees they are placed in alternate positions in the same organisation.

(vii) Promotion refers to movement of employee from a lower level position to a higher level position, carrying higher responsibilities, facilities, status and pay. For example, the vacant post of General Manager can be filled through promoting branch manager to the position of General Manager.

  • Promotion is a vertical shifting of employees.
  • It helps to improve the motivation, loyalty and satisfaction level of employees.

(viii) Decoding : The sender can send his ideas briefly in the form of symbols or diagrams. Understanding it correctly is called decoding. For example, a telegram carries a long message in the form of a few words and when the receiver tries to understand the message in detail, his effort is called decoding.

(ix) Difference between Horizontal Communication and Vertical Communication.

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Horizontal Communication Vertical Communication
(i) The flow of information between two or more persons working at the same level of authority is called horizontal communication.

(ii) It is essential for achieving coordination in the enterprise.

(i) The flow of information from the top level or from the superiors to lower level or subordinates is called vertical communication.

(ii) Its purpose is to communicate policies, procedures, programmes, order etc., through lower levels.

(x) Difference between Cellular phones and Cordless Phone.

Cellular phones Cordless phone
(i) A person can call directly from his/her mobile phone from any place in the world.

(ii) It is a very convenient system but it is expensive.

(i) It is simply extension of main telephone lines. It is very limited range around or near the main phone.

(ii) It provides convenience in making and receiving calls in any part of the house or office.

(xi) Business reply card helps a business concern to procure mail orders, suggestions on its products, survey reports, etc. Business reply card is a prepaid card in which the sender does not need to affix postage stamps. Postage is borne by the business concern.

(xii) Appendix in a report is a supporting document which is attached to the report. An appendix may contain the following items :

  • reference
  • bibliography
  • glossary etc.

It helps to explain and support the contents and conclusions of the report.


(xiii) A quorum means the specified minimum number of qualified persons whose presence is necessary to transact the legally binding business at a meeting. The members who constitute the quorum must be effective members i.e., entitled to vote at the meeting. The meeting is not legally constituted when the quorum is not present.

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