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Statement I… (Class 12 Business Studies SQP 2023-24, Q13)

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Business StudiesCBSE Class 12 · Sample paper, session 2023-24 · 1 mark · MCQ

CBSE Class 12 Business Studies sample paper 2023-24: question 13

From the official CBSE sample question paper for 2023-24, section A, question 13, for 1 mark. Try it first; the hints and our step-by-step solution are below.

Q13 · 1 mark · MCQMarketing

Statement I: For products requiring long term storage like agricultural products, the warehouses are located near to the market.
Statement II: Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high.
Choose the correct option from the following:

  1. (A)Statement I is true and II is false
  2. (B)Statement II is true and I is false
  3. (C)Both the statements are true
  4. (D)Both the statements are false

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2023-24.

Hints

Open one hint at a time and try again before the next.

Hint 1

Where is grain stored after harvest?

Hint 2

What is the cost of holding more stock?

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. Statement I is false: for products like agricultural produce that need long-term storage, warehouses are located near the place of production, not the market.

  2. Statement II is true: more inventory improves customer service but raises carrying cost. Option (B).

    1 mark

Answer: (B) Statement II is true and I is false

Where the marks are

  • Warehouse location; inventory trade-off (1 mark)

Revise the chapter

Practise this chapterBoard-style questions from Marketing, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2023-24: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.