HSC OCM Question Paper March 2024 with Solution | Maharashtra Board (Download Free PDF)

HSC OCM Question Paper March 2024 with Solution

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12th Commerce OCM Textbook Solutions

Chapter Name	Solution Link
1) Principles of Management	Click Here
2) Functions of Management	Click Here
3) Entrepreneurship Development	Click Here
4) Business Services	Click Here
5) Emerging Modes of Business	Click Here
6) Social Responsibilities of Business	Click Here
7) Consumer Protection	Click Here
8) Marketing	Click Here

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HSC OCM Question Paper March 2024 with Solution

Q. 1. (A) Select the correct option and rewrite the sentences: (5) {20}

(1) _______ was regarded as the father of scientific management.
(a) Henry Fayol
(b) F. W. Taylor
(c) Philip Kotler

(2) Start-up India is an initiative of the _________.
(a) RBI
(b) Government of India
(c) World Bank

(3) Door-to-door service is provided by __________ transport.
(a) Railway
(b) Air
(c) Road

(4) For economic growth and National Security __________ stability is required
(a) Political
(b) Social
(c) Economic

(5) In India, the Consumer Protection Act was initiated in the year ________.
(a) 1947
(b) 1989
(c) 1986

(B) Match the pairs : (5)

Group ‘A’	Group ‘B’
a) Principle of Unity of direction	1) Right to information
b) Planning	2) Last function of Management
c) Warehousing	3) Distinct Name
d) Consumer Right	4) One head one plan
e) Registered brands	5) Seller
	6) Basic function of management
	7) Time Utility
	8) General guidelines
	9) Trademark
	10) Place Utility

Answer
A-4, B-6, C-10, D-1, E-3

(C) State true or false : (5)

1. Co-operation is not necessary for smooth flow of organizational activities. (False)
2. Current Account is opened by salaried persons. (False)
3. With the help of outsourcing company, we can focus on the core areas. (True)
4. The seller has to recognize the rights of consumer. (True)
5. The term market is derived from the Latin word “Mercatus.” (True)

(D) Find the odd one : (5)

1) Selecting, training, co-ordinating, placing.
2) NABARD, RBI, SIDBI, EXIM
3) Debit card, Credit card, Aadhar card, ATM card
4) Job security, Health and safety measures, Good working conditions, Reasonable profit.
5) Price, People, Promotion, Product.

Q. 2. Explain the following terms/concepts: (Any Four)(12)

1) Principle of Discipline
Answer: According to Fayol, discipline is the most essential thing in the organization. Employees must obey and respect the rules that govern the organization. Discipline helps to achieve the goals of the organization. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organization’s rules. Basic discipline should be observed at all levels of management.

2) Communication
Answer: Communication is the art of exchanging ideas, facts, information, etc. from one person or entity to another. The process of passing any information from one person to another with the help of some medium is termed as communication. Communication is a very simple process where the message is transferred from a sender to the receiver.

3) Business ethics
Answer: The word ‘Ethics’ is derived from the Greek word ‘Ethos’ which means character. Ethics means the set of rules and principles that the organization should follow while business ethics refers to a code of conduct that businesses are expected to follow while doing business. Through ethics, a standard is set for the organization to regulate its behavior. This helps them distinguish between the wrong and the right path of the business. 

4) Corporate Social Responsibility (CSR)
Meaning: Corporate Social Responsibility (CSR) is a self-regulating business model, that aims to contribute to societal goals or support volunteering or ethically-oriented practices. It makes a company socially responsible and accountable.

This accountability is towards itself, its stakeholders, public in general, etc. By practicing social responsibility, companies can be conscious about the economic, social, and environmental aspects of society.

5) Right to choose
Answer: The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast-moving consumer goods(FMCG), etc. According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. The right to choose is related to the concept of a free market economy. As per this right, the seller cannot compel consumers to buy a particular product and hence monopoly is prevented.

6) Market
Answer: The term market is derived from the Latin word ‘Mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words, a market is a place where two or more parties are involved in buying and selling. These two parties involved in the transactions are called buyers and sellers. The transaction of buying and selling takes place with the exchange of money.

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

1) In XYZ company, Mr. Lele gives instructions to the employees working under him, provides guidance and motivates them for their best performance. On the other hand Mr. Sayyad takes effort to harmonize the work done by the employees of different departments while achieving organizational goals. Mr. Desai is looking after the arrangement of required resources to the business organization.

Mention the name of employee engaged in following functions :

(i) Organising
(ii) Directing
(iii) Co-ordinating

Solution:
1) Mr. Desai is engaged in the organizing function because he is looking after the arrangement of required resources for the business organization.
2) Mr. Lele is engaged in the function of directing as he gives instructions to the employees working under him, provides guidance, and motivates them for their best performance.
3) Mr. Sayyed is engaged in the function of coordination as he makes an effort to harmonize the work done by the employees of different departments while achieving organizational goals.

2) Mr. Ashok visited a shop to buy a pair of shoes of ₹700. The salesman forced him to buy a pair of bigger size shoes of ordinary company by claiming this size would be suitable to him. After reaching home, he discovered that shoes are still too big for him. He complained about the shoes to the shopkeeper. It was denied by the shopkeeper to replace the shoes despite of availability of stock.

In the above case:-

(i) Which right has been violated?
(ii) Is Mr. Ashok a buyer or an ultimate consumer?
(iii) Where can Mr. Ashok file his complaint?

Solution:
i) The Right to Choose has been violated.
ii) Mr. Ashok is a buyer as well as an ultimate consumer.
iii) Mr. Ashok can file a complaint in the District consumer forum.

3) Mr. A deals in import and export business so he needs different foreign currencies. For the expansion of his business, he borrows money from a commercial bank. He invests his funds in equity shares

(i) From where does Mr. A borrow money?
(ii) Name the market where does Mr. A invest his funds.
(iii) Which type of currency is required for international market?

Solution:
i) Mr. A borrows money from the Commercial Bank.
ii) Mr. A invests his funds in equity shares, which means he is investing in the stock market.
iii) The different types of foreign currency are required for international market.

Balbharti Textbook Solutions for other subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

Q. 4. Distinguish between the following: (Any Three) (12)

1) Directing and Co-ordinating

Points	Directing	Co-ordinating
1) Meaning	Directing is the guidance inspiration, the leadership of those men and women constitutes the real case responsibilities of  management.	Coordination is an orderly arrangement of group efforts to provide unity of action in pursuit of a common goal.
2) Objective	To direct the subordinates to get things done in the right manner.	To ensure harmony of efforts of the employees for smooth functioning of the organization.
3) Area of function	It includes instructing, guiding, inspiring, communicating and motivating the human resources.	It includes integration of efforts of top level, middle level, and lower level.
4) Factors	Directing is concerned directly with internal factors i.e. human  resources.	It is the harmonization of human  resources, so it is concerned  with internal factors.
5) Resources	It gives direction to the employees regarding the use of other resources.	It is related to human resources.
6) Level of management	Middle-level management is involved in directing the employees.	It is related to all the levels of  management to achieve the goal of the organization.

2) Road Transport and Rail Transport.

Points	Road Transport	Rail Transport
1) Speed	Road transport has limited speed due to bad road conditions, accidents, etc.	It has considerable speed since it runs on tracks that rarely gets disturbed
2) Carrying capacity	It has considerable speed since it runs on tracks that rarely get disturbed	It has a huge carrying capacity.
3) Cost	It requires limited capital investment in terms of the construction of roads, vehicles and their maintenance.	The cost of construction of trains, and railway tracks is high. Also, the maintenance of trains, tracks, and stations is high.
4) Distance	It is recommended for short distances.	It recommended for both short and long distances.
5) Charges	Transport charges are not fixed due to increased fuel prices	Transport charges are relatively  low and are fixed according to the  distance.
6) Door-to-door service	It provides door-to-door services.	It does not provide door-to-door services
7) Means of Transport	It uses animals, animal carts, motorcycles, and three and four-wheelers.	It uses passenger trains and goods trains.
8) Suitability	It is suitable for transporting goods in relatively smaller quantities for a short distance.	It is suitable for transporting heavy goods in large quantities over long distances.

3) Bonded warehouse and Duty paid warehouse.

Points	Duty Paid Warehouse	Bonded Warehouse
1) Meaning	If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse.	Bonded warehouses are licensed by the government to accept imported goods for storage until  the payment of custom duty.
2) Ownership	These warehouses are owned and managed by public authorities.	These warehouses are owned and managed by public or private authorities.
3) Supervision	These warehouses are free from the supervision of customs authorities. However, they are controlled by port authorities.	These warehouses are under the close supervision of customs authorities.
4) Market	Goods stored in duty-paid warehouses are meant for the domestic markets.	Goods stored in bonded warehouses are meant for re-export.
5) Delivery	Delivery of goods is given only after the payment of rent and service charges of the warehouse.	These are located near the port & dock area.
6) Location	These are located near port & dock area.	Goods are held in bond and their delivery is given only after the payment of import duty.

4) District Commission and State Commission.

Points	District Commission	State Commission
1) Meaning	A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute  redressal forum at the State level established by the  State Government is known as State Commission.
2) President	A person who is sitting or retired or qualified to be District Judge.	A person who is sitting or retired or Judge of High Court shall be appointed by  the State Government as the President of State Commission.
3) Member	Not less than two and not more than such number of  members as may be prescribed, in consultation with the Central Government	Not less than four or not more than such number of members as may be prescribed in consultation  with the Central Government.
4) Membership Tenure	The members can have the membership for a term of five years or upto the age of sixty-five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age of sixty-seven, whichever is earlier.
5) Area covered	It covers a particular district.	It covers a particular state.
6) Monetary Jurisdiction	To entertain complaints where the value of the goods  or services paid as consideration does not exceed Rs. one crore.	To entertain complaints where the value of the goods or services paid as consideration, exceeds Rs. one crore, but does not exceed Rs. ten crores.
7) Appeal	An appeal against the District Commission can be made to the State Commission.	An appeal against the State Commission can be made to the National Commission.

Q. 5. Answer in brief : (Any Two) (8)

1) Explain any four principles of management of Henry Fayol.

Answer: Henry Fayol (1841-1925) was a French mining engineer who turned into a leading industrialist and a successful manager. He started his career as a mining engineer in a French mining company and rose to the position of Chief Managing Director.

1) Principle of Division of Work

According to this principle, the work is divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. It is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity level.

2) Principle of Authority and Responsibility

Authority is the right to take decisions. It is necessary to get things done appropriately by subordinates. Authority always comes with responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authority to take managerial decisions on his own with respect to the goal.

3) Principle of Discipline

According to Fayol, discipline is the most essential thing in the organization. Employees must obey and respect the rules that govern the organization. Discipline helps to achieve the goals of the organization. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organization’s rules. Basic discipline should be observed at all levels of management.

4) Principle of Unity of Command

Each member of the organization should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and will not be able to take decisions about whose orders should be followed. This is the wrong approach.

2) Explain any four characteristics of an entrepreneur.

An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. They try to make market a better place where the needs of consumers can be satisfied.

Characteristics of Entrepreneur:

1) Intellectual Capabilities

An entrepreneur is a creative thinker. He has reasonably good intelligence. He has the ability to analyze business situations. This ability will help him to take proper decisions.

2) Future Vision

The entrepreneur has good foresight about future market situations. He should also have knowledge about the external business environment. This will help him to take proper decisions according to the situations and changes in the market. So, he can take timely actions for the same.

3) Hard Work

An entrepreneur is ready to work hard. It is more necessary when a new venture is started. He has to work long hours. Many times he has to handle the main areas of business independently. This will make him successful.

4) Technical Knowledge

An entrepreneur has good technical knowledge about his business. The entrepreneur can update himself with the latest knowledge about the product, process, and technology.

5) Communication Skills

An entrepreneur needs to communicate with different people like customers, suppliers, creditors, employees, etc. He must be able to express his ideas and strategies effectively. There must be a proper understanding between the sender and the receiver of the message.

3) Explain advantages of Business Process Outsourcing (BPO).

Answer:

BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business process to a third party service provider. BPO refers to the outsourcing of peripheral activities of the orgnisation to an external organization to minimize cost and increase efficiency.

BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency. For example, customer care centers for various banks, service providers, etc.

The following are the advantages of Business Process Outsourcing (BPO)

1) Productivity improvement:
Educated or skilled people perform the task efficiently and thus improve productivity.

2) Optimum utilization:
BPO enables optimum utilization of scarce resources.

3) Reducation in cost:
Cost saving can be significant to any business. BPO not only helps to reducing costs but also increases productivity and increase revenues.

4) Improved human resources:
Improved human resources is another great advantage of BPO. Outsourcing gives a company
the ability to get access to skilled and trained man power at low rates.

Q. 6. Justify the following statement : (Any Two) (8)

1) Management principles are helpful in optimum utilization of resources.

Answer:
a) In every organization two types of resources are used i.e. physical resources (material, machines, money, etc.) and human resources (manpower).
b) The basic function of management is to make a proper balance between these resources by putting them to optimum use and control on wastage of resources.
c) While maintaining discipline and a healthy working environment, management always uses techniques and principles.
d) It helps in establishing a cordial relationship between management and employees which increases the efficiency level of employees and also affects effective administration.
e) Therefore, management principles are helpful in optimum utilization of resources.

2) It is easy to set up E-business as compared to traditional business.

Answer:
a) Traditionally trading by the buyers and sellers is done through three channels like face to face, mail, and phone.
b) The internet has become the fourth channel for trade. E-business is booming and allowing businesses to sell more and at a lower cost.
c) In E-business investment requirements are low as compared to traditional business as the store does not have physical existence.
d) The formation of a traditional business is difficult, whereas forming an e-business is relatively easy to start.
Hence, it is easy to set up e-business as compared to traditional business.

3) Business should allow participation of workers in management.

Answer:
a) Workers are the real architects of success in any business unit. Investments in human resources (capital) gives rich rewards in the long run.
b) The success and failure of the business organizations to a greater extent depend on the support and participation of employees. Therefore, business organizations should encourage workers to participate in management through various schemes like giving suggestions, saving costs. quality circles, profit sharing co-ownership, etc.

c) When workers are allowed to participate in the management, it will raise their morale. This in turn will give the workers a sense of belongingness. They will take an active part in the completion of the work assigned to them.
d) Workers’ participation in management enables the organization to win the confidence of employees. It creates and maintains a good, healthy, and improved relationship between labor and management which is necessary for the success of any organization.

4) There is a need for branding to get recognition among·the consumers.

Answer:
a) Every businessman wants to have a special identity in the market for his product.
b) Branding is a process of giving a special identity to a product through a unique brand name to differentiate it from competitors’ products.
c) In simple words giving a distinct name to one’s product is called as branding. Registered brands are known as Trademarks.
d) Trademarks can not be copied.
e) Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market.

Q. 7. Attempt the following : (Any Two) (10)

1) Explain the importance of planning.

Answer: James Stoner: “Planning is the process of establishing goals and a suitable course of action for achieving these goals.”

The following are the importance of planning:

1) Helps to set clear objectives

Planning is concerned with setting objectives, and targets, and formulating plans to achieve them. It helps managers to analyze the present condition of the organization and on that basis to identify the ways of attaining the desired position in the future.

2) Provides a path of action

Planning ensures that the goals or objectives are clearly stated. They act as a guide and they provide direction for doing the right things at the right time in the right way. It helps employees to know what organization has to do and what they must do to achieve the goals.

3) Planning improves performance

It helps managers to improve future performances of employees by establishing objectives and selecting a course of action. Planning leads to the efficient working of the employees. Due to proper planning, the employees can work according to timely guidelines. This improvement in performance results in higher profitability for the organization.

4) Minimizes the risk

Planning is based on the forecasting technique. It is the process of looking into the future and anticipating future changes. By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or risks cannot be eliminated totally but they can be anticipated and can be tackled with preventive measures. It minimizes the risk of future or uncertainties of future.

5) Planning leads to optimum utilization of resources

Organizational plans are prepared by taking into consideration the availability of resources and proper allocation of resources for various activities. It also facilitates optimum utilization of resources which brings higher efficiency and better results. One can avoid wastage of resources by proper planning.

6) Helps in decision making

There are various alternatives in front of the management. For achieving goals planning helps the management to select the best alternative by considering all positive and negative outcomes of all the alternatives. Decisions are taken after selecting alternative courses of action to achieve a predefined goal.

7) Useful in setting the standards for controlling

Planning sets out standards for controlling. So, the actual performance can be compared with the standards and managers can find out the deviation, if any between the actual and the standard performance. Such deviation can be bridged by taking controlling steps. Therefore, planning provides basis for control.

2) Explain E-banking service.

Answer:

E-banking stands for electronic banking it is also called ‘Virtual Banking’. E-banking is the result of the development in the field of electronics and computers. Under E-banking, the banking operations are computerized. Some of the elements of E-banking are as follows:

1) Automated Teller Machine:

The ATMs are electronic machines which are operated by the customer on his own to withdraw or deposit money. It can be used for other banking transactions also such as balance inquiries, transferring money, request for cheque book or bank statements etc. Nowadays, ATM also provides a facility of cash deposits through CDM (cash deposit machines.)

2) Credit Cards:

A credit card is a payment card. It allows the cardholder to pay for different transactions he performs. The issuing bank creates a revolving account and grants a line of credit to the customer or user. Credit card offers convenience to customers as customer need not carry cash.

(3) Debit Cards:

Most of the banks nowadays offer debit card as soon as account is opened by account holder.
Through debit card payments, the amount gets deducted from account holder’s account. Some banks
offer personalised debit and credit cards as per the requirement of customer.

4) RTGS:

RTGS stands for Real Time Gross Settlement. RTGS is a fund transfer system where transfer of funds or money takes place from one bank to another bank on “real time” and on “gross basis”. It is the fastest money transfer system through the banking channel.

• Real Time Settlement means payment transaction is not subject to any waiting period. The transactions are settled as soon as they are processed. The receiving bank has to credit the account of the client within 2 hours of receiving the funds transfer message.
• Gross Settlement means the transactions are settled on one to one basis without bunching with any other transactions. The minimum amount to be remitted through RTGS is Rs. Two lacs while there is no upper limit for transactions. However, amount changes from bank to bank.

5) NEFT:

NEFT stands for National Electronic Fund Transfer. Under this system, funds are transferred electronically from one branch to another branch or one bank to another bank in the country. The client has to give details of NEFT code of branch and account number of beneficiary to whom the money is to be transferred.

6) Net Banking and Mobile Banking:

With the introduction of net banking, the client is able to transact banking operations with the help of computers, laptop and other gadgets. The internet banking services enable a client to check various transactions, facilitates payments of various things, transferring funds etc. Mobile banking refers to the use of banking services with the help of mobile phones.

7) IMPS Facility:

IMPS stands for immediate payment services. This facility allows customers to instantly transfer funds to any other bank account.

3) Explain rights of consumers.

Answer:
Following are the rights of the consumer.

1) Right to Safety

This right protects consumers against products, production processes, and services that are hazardous to health or life. According to this right, a consumer must get full safety and protection to his life and health. This safety should be in relation to medicines, electrical appliances, food, etc. The GOI has given safety standards in the form of AGMARK, lSI, BIS, Hallmark, etc.

2) Right to Information

According to this right, consumers should be provided with adequate information about all aspects of goods and services like price, name of the manufacturer, contents used, batch number if any, date of manufacture and expiry date, user manual and safety instruction, etc. It is applicable to food products, medicines, spare parts, or any other consumer products or services.

3) Right to Choose

The choices available to Indian consumers across the basket of goods and services have multiplied like telecommunications, travel and tourism, banking, electronics, fast-moving consumer goods(FMCG), etc. According to this right, a consumer should be given full freedom to select an article as per his requirement, liking, and purchasing capacity. As per this right, the seller cannot compel consumers to buy a particular product and hence monopoly is prevented.

4) Right to be heard

Every business organization should listen to and solve the complaints of consumers. According to this right, consumers have the opportunity to voice their complaints to the consumer forum. Consumers also give suggestions to manufacturers or traders on certain matters such as quality, quantity, price, packaging, etc. Nowadays, consumers can file online complaints through portals or mobile applications.

5) Right to Consumer Education

This right creates consumer awareness. An aware consumer can make a rational choice of goods and services and protect his rights and interests from the exploitation of unscrupulous businessmen. Thus, consumer education becomes a priority concern. It is necessary to give education and training regarding prevailing acts and legal processes. The government, media, and NGOs play vital roles in this regard. E.g. ‘Jago Grahak Jago’ campaign.

6) Right to Represent

The act provides an opportunity to individuals and consumer groups to represent consumers’ interests in consumer forums. The act allows the consumer to be represented by a person who is not a professional advocate. This provision is in recognition of the consumer’s right to represent.

7) Right to Redress

Along with the right to represent, the right of redressal is also given. Only filing of complaints is not enough to give justice to consumers, so this right implies a fair settlement of claims. This right enables the consumer to demand repair or replacement or compensation for defective products and for poor services. According to the consumer protection Act, three-tier quasi-judicial consumer dispute redressal machinery is established for the settlement of claims such as the District Commission, State Commission, and National Commission.

8) Right to Healthy Environment

All consumers have a right to a healthy and clean environment. According to this right, consumers can demand action against the pollution causing business organizations. All consumers have the right to a healthy and clean environment in the present and future.

9) Right to Protect from unfair business practices

As per this right, all consumers are protected against unfair business practices such as black marketing, profiteering, faulty weights and measures, exorbitant prices, adulteration, etc.

10) Right against spurious goods

This right is against the marketing of goods that are hazardous to health, spurious, and pose a danger to life itself.

Note: Write any 6-7 points for 5 marks question.

Q. 8. Answer the following questions : (Any One) (8)

(1) What is insurance? Explain types of life insurance policies.

Answer:
Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. The insured has to pay a certain fixed sum of money on a timely basis to the insurer.

Following are the types of life insurance policies:

1) Whole Life Policy:

Under this policy whole life of a person is insured. The insured cannot receive money from the insurance company till he is alive. The rate of premium is normally low. The money becomes payable on the death of insured person to the nominee or the legal heir of the deceased policyholder.

2) Endowment Insurance Policy:

Insurance is taken for specific period under this policy. The sum assured along with the bonus is given on the death of the insured to dependents or on the expiry of the specific period, to the insured.

3) Term Insurance Policy:

Term insurance policy is taken for a specific period. Term insurance policy has lowest premium among all insurance policies. Premium is fixed and does not change during the term of the policy. In case of untimely death, the dependents will receive the benefit amount specified in the term life insurance agreement.

4) Annuity Policy:

The insured has to pay the premium in lump sum or in instalments over a certain period of time. The insured will receive back a specific sum periodically from specified date onwards, either for life or for a fixed number of years. It is like pension payment scheme.

5) Money-back Policy:

The money-back policy provides a regular percentage of the sum assured during the lifetime of the policy and also guarantees the benefit of full sum assured in the event of the death of the insured to the dependents of the insured. Generally, the money back policy is available for four terms-12 years, 15 years, 20 years, 25 years, etc

6) Child Insurance:

A child insurance policy is a saving cum investment plan that is designed to meet a child’s future financial needs. A child insurance policy allows kids to live their dreams. The child insurance policy gives you the advantage to start investing in the children’s plan right from the time the child is born and provisions to withdraw the savings once the child reaches adulthood. Some child insurance policies allow intermediate withdrawals at certain intervals.

7) Retirement Plans:

A savings and investment plan that provides insured income during retirement is called a Retirement Plan. On maturity, this corpus is invested for generating a regular income stream which is referred to as pension or annuity.

8) ULIP Policy:

ULIP stands for unit linked insurance policies. ULIP policies are very popular as they combine the benefits of life insurance policies with mutual funds.

(2) What is Marketing Mix? Explain 7Ps 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.

In simple words, the marketing mix is putting the right product, at the right time, at the right price in the right place. It is one of the important tools of marketing.

There are two types of marketing mix Product Marketing Mix (4Ps) and Service Marketing mix (7Ps). The four Ps are the key factors that are involved in the marketing of goods or services.

The following are the 7 Ps of Marketing Mix:

1) Product:

Product refers to the goods or services that are offered to the customers for sale and are capable
of satisfying the needs of the customer.

The product can be intangible or tangible, as it can be in the form of services or goods. The business needs to decide on the right type of product through extensive market research.

2) Price:

The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product.

The business needs to take utmost care to decide the price of the product. Too high price may affect the demand for the product and pricing too low may affect the profitability of the business.

3) Place:

The place is also known as a distribution channel. Placement or distribution is a very important part of the marketing.

Making the right product at the right price is not enough. A businessman needs to make the product available to potential customers at the right place too.

4) Promotion:

Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication that helps to publicize the product to the customer.

It helps to convey product features to the potential buyer and induce them to buy it. The promotion mix includes tools such as advertising, direct marketing, sales promotion, personal selling, etc.

5) People:

People inside and outside the business directly or indirectly influence the business. People comprise of all the human beings that play an active role in offering the product or service to the customer.

The people include employees who help to deliver services to the customer. The right people at right place add value to the business.

6) Process:

Process refers to the steps involved in delivering products and services to the customer. Processes are important to deliver a quality service.

A good process helps to ensure the same standard of service to the customer as well as save time and money by increasing efficiency.

7) Physical Environment:

The physical Environment refers to the marketing environment wherein the interaction between customer and firm takes place.

Since services are intangible in nature service providers try to incorporate certain tangible elements into their offering to enhance customer experience.

Physical evidence affects the customer’s satisfaction. It includes location, layout, interior design, packaging, branding, dress of the staff and how they act, waiting area, etc.

Balbharti Textbook Solutions for Other Subjects
Solution of all Chapters of OCM
1 – 2 – 3 – 4 – 5 – 6 – 7 – 8

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