CBSE Class 10 Question Paper 2025 Solution Elements of Business

Marking Scheme
Strictly Confidential
(For Internal and Restricted use only)
Secondary School Examination, 2025
SUBJECT NAME ELEMENTS OF BUSINESS (Q.P. CODE 35)

General Instructions: -
1 You are aware that evaluation is the most important process in the actual and correct
assessment of the candidates. A small mistake in evaluation may lead to serious
problems which may affect the future of the candidates, education system and teaching
profession. To avoid mistakes, it is requested that before starting evaluation, you must
read and understand the spot evaluation guidelines carefully.
2 “Evaluation policy is a confidential policy as it is related to the confidentiality of
the examinations conducted, Evaluation done and several other aspects. Its’
leakage to public in any manner could lead to derailment of the examination
system and affect the life and future of millions of candidates. Sharing this
policy/document to anyone, publishing in any magazine and printing in News
Paper/Website etc. may invite action under various rules of the Board and IPC.”
3 Evaluation is to be done as per instructions provided in the Marking Scheme. It should
not be done according to one’s own interpretation or any other consideration. Marking
Scheme should be strictly adhered to and religiously followed. However, while
evaluating, answers which are based on latest information or knowledge and/or
are innovative, they may be assessed for their correctness otherwise and due
marks be awarded to them. In class-XII, while evaluating two competency-based
questions, please try to understand given answer and even if reply is not from
marking scheme but correct competency is enumerated by the candidate, due
marks should be awarded.
4 The Marking Scheme carries only suggested value points for the answers.
These are in the nature of Guidelines only and do not constitute the complete answer.
The students can have their own expression and if the expression is correct, the due
marks should be awarded accordingly.
5 The Head-Examiner must go through the first five answer books evaluated by each
evaluator on the first day, to ensure that evaluation has been carried out as per the
instructions given in the Marking Scheme. If there is any variation, the same should be
zero after deliberation and discussion. The remaining answer books meant for
evaluation shall be given only after ensuring that there is no significant variation in the
marking of individual evaluators.
6 Evaluators will mark( √ ) wherever answer is correct. For wrong answer CROSS ‘X” be
marked. Evaluators will not put right (✓)while evaluating which gives an impression that
answer is correct and no marks are awarded. This is most common mistake which
evaluators are committing.
7 If a question has parts, please award marks on the right-hand side for each part. Marks
awarded for different parts of the question should then be totaled up and written in the
left-hand margin and encircled. This may be followed strictly.
8 If a question does not have any parts, marks must be awarded in the left-hand margin
and encircled. This may also be followed strictly.

35 1 P.T.O.

9 If a student has attempted an extra question, answer of the question deserving more
marks should be retained and the other answer scored out with a note “Extra
Question”.
10 No marks to be deducted for the cumulative effect of an error. It should be penalized
only once.
11 A full scale of marks __________(example 0 to 80/70/60/50/40/30 marks as given in
Question Paper) has to be used. Please do not hesitate to award full marks if the answer
deserves it.
12 Every examiner has to necessarily do evaluation work for full working hours i.e., 8 hours
every day and evaluate 20 answer books per day in main subjects and 25 answer books
per day in other subjects (Details are given in Spot Guidelines).This is in view of the
reduced syllabus and number of questions in question paper.
13 Ensure that you do not make the following common types of errors committed by the
Examiner in the past:-
● Leaving answer or part thereof unassessed in an answer book.
● Giving more marks for an answer than assigned to it.
● Wrong totaling of marks awarded on an answer.
● Wrong transfer of marks from the inside pages of the answer book to the title page.
● Wrong question wise totaling on the title page.
● Wrong totaling of marks of the two columns on the title page.
● Wrong grand total.
● Marks in words and figures not tallying/not same.
● Wrong transfer of marks from the answer book to online award list.
● Answers marked as correct, but marks not awarded. (Ensure that the right tick mark
is correctly and clearly indicated. It should merely be a line. Same is with the X for
incorrect answer.)
● Half or a part of answer marked correct and the rest as wrong, but no marks
awarded.
14 While evaluating the answer books if the answer is found to be totally incorrect, it should
be marked as cross (X) and awarded zero (0)Marks.
15 Any unassessed portion, non-carrying over of marks to the title page, or totaling error
detected by the candidate shall damage the prestige of all the personnel engaged in the
evaluation work as also of the Board. Hence, in order to uphold the prestige of all
concerned, it is again reiterated that the instructions be followed meticulously and
judiciously.
16 The Examiners should acquaint themselves with the guidelines given in the “Guidelines
for Spot Evaluation” before starting the actual evaluation.
17 Every Examiner shall also ensure that all the answers are evaluated, marks carried over
to the title page, correctly totaled and written in figures and words.
18 The candidates are entitled to obtain photocopy of the Answer Book on request on
payment of the prescribed processing fee. All Examiners/Additional Head
Examiners/Head Examiners are once again reminded that they must ensure that
evaluation is carried out strictly as per value points for each answer as given in the
Marking Scheme.

35 2

Set 4 >
$
MARKING SCHEME
ELEMENTS OF BUSINESS

Question no. 1 to 18 carry 1 mark each.

1. (A) Advertising

2. (B) 51%

3. (A) Business

4. (A) Construction industries

5. (A) Partnership firm

6. (C) Both the statements are true

7. (A) Small

8. (D) Loan capital of the company

OR

(A) Itinerants retailer

9. (A) Downward

OR

(C) Retailer

10. (D) Retailing and shopping through internet

11. (C) Purchase by sample

35 3 P.T.O.

12. (A) Both Assertion (A) and Reason (R) are correct and Reason (R) is the correct
explanation of Assertion (A).

13. (C) Public company

14. (C) Gifting a pen to a friend

15. (C) Creditors of the company

16. (D) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A).

17. (A) Payment of dividend

18. (B) Mail order Business

19. A manufacture of detergent powder, who wants to introduce detergent cake in
the market under a new brand name, should use following sales promotion
tools to attract the customers : (any three) 3

(i) Sample

(ii) Coupons

(iii) Premiums or bonus offer

(iv) Price-off offers

(v) Prize-contest

(vi) Demonstration

(vii) Money refund offer

(viii) Buy One Get One

20. (A) (i) Rate of interest is fixed.

(ii) The control of the share holders is not diluted.

(iii) Tax saving

(iv) Convertibility

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(v) Fixed Income

(vi) Low Issue Cost 3

OR

(B) Advantage of equity share (Any three)

(i) Permanent source

(ii) No fixed burden

(iii) Ownership and Voting Rights

(iv) Raising huge amount of capital

(v) Liquidity

21. 3
Deferred Installment
Hire-Purchase
Difference
It is essentially a contract for It is essentially a contract for
1. 1.
sale hiring of goods
The ownership rights passes The ownership rights remain
to the buyer immediately at with the seller and the
2. 2.
the time when the agreement customer exercises his option
is entered in to for purchasing the goods
In case of default in payment
The buyer can return the
the seller can sue the buyer
goods at any stage the seller
3. 3. for balance instalments the
can also take back the goods
seller cannot take back the
in case of non-payment
goods

22. (a) Shares

(b) Common seal

(c) Board of Directors and professional experts 3

23. Advantages : 4

35 5 P.T.O.

(1) Permanent Source / Fixed Dividend rate

(2) No. Security

(3) No. voting rights

(4) Fixed Returns, even when profits are high

disadvantage  1. Rigid obligation

2. Costly

24. (A) 1. Organisational barriers : To many levels in the management
hierarchy cause delay in transmission of information, distortion in the
massage and deliberate, filtering of the massage.

2. Status or position barriers : The person enjoying higher status or
positions in the organisation does not carefully listen to person occupying low
status or positions. 4

OR

(B) Sending message from one person to another or from one place to
another is called communication.

Advantages :

1. It is a record of the message

2. It can be retained in the future

3. It is a proof of the message.

4. Clarity in Communication

25. The two sources of finance are share

1. Equity Capital – He can raise funds by issuing shares to investors. This is a
long-term source of finance and does not require repayment, but investors
become part-owners of the company.

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2. Bank Loans – He can approach banks for term loans to finance fixed capital
requirements. Banks provide loans at an agreed interest rate, which must be
repaid in installments.

4

26. Purchase by description refers to a mode of buying where the buyer purchases
goods based on their description rather than physical inspection. This is
common in online shopping, catalog sales, and bulk industrial purchases. The
buyer relies on product specifications, features, and quality standards
mentioned by the seller. 4

27. (A) E-mail (Electronic Mail) is considered the fastest method of written
communication due to the following reasons:

i. Instant Transmission – Messages are sent and received within seconds
across the globe.

ii. Cost-Effective – Unlike postal mail, e-mails do not require paper or
postage fees.

iii. Multiple Recipients – A single email can be sent to multiple people
simultaneously.

iv. Document Sharing – Files, images, and documents can be easily
attached and shared. 6

OR

(B) The advantages of telephone communication are:

a. Instant Connectivity – It allows immediate conversation without delays.

b. Clarity & Personalization – A telephone conversation conveys tone and
emotion better than text-based communication.

c. Convenience – Calls can be made from anywhere, reducing travel time.

d. Two-Way Interaction – Unlike emails, a telephone allows real-time
questioning and clarification.

35 7 P.T.O.

28. (a) Convenience of shopping – Since a large variety of goods is sold under
one roof, we do not need to move from one bazaar to another or from one shop
to another to buy goods. This saves our time and effort. For the convenience of
the customers these stores provide toilets, restaurant restrooms, telephone
service and ATM facilities.

(b) Wide Choice of Products – These stores stock a variety of brands, product
categories, and price ranges, giving customers more options to compare and
choose from. 6

29. After executing an order, the following steps are necessary: 6

1. Order Processing & Dispatch – Ensuring the product is packed, shipped,
and delivered on time.

2. Invoice Generation – Providing a bill detailing product cost, taxes, and
payment terms.

3. Customer Follow-Up – Checking if the customer received the product in
good condition.

4. Handling Complaints/Returns – Addressing customer grievances, if any.

5. Feedback Collection – Gathering reviews to improve future services.

6. Updating Records – Maintaining sales records for future reference.

30. (A) Following are the advantages of television advertising. 6

1. Effective : – It is most effective as it has an audio-visual impact

2. Lasting impact : – With catchy slogans songs and dance sequence,
famous personalities exhibiting products, TV advertising has a lasting impact.

3. Selectivity : – With varieties of channels and programmes advertisers
have a lot of choice to select the channel and time to advertise.

4. Wider appeal : – With regional channels coming up any person even
illiterates can watch the advertisements and understand it by seeing and
hearing.

OR

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(B) 1. Message can be conveyed immediately.

2. It ensures face to face communications.

3. The response of the receives can be ensured immediately.

4. Large number of persons can be involved.

5. Allows participants from different locations to collaborate effectively.

6. Reduces travel expenses for business meetings.

35 9 P.T.O.