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Business Studies · 2026 · 3 marks
CBSE 2026 · Region 3 · Set 3 · Q23
(a) Explain the following functions of marketing: (i) Transportation (ii) Storage or Warehousing
(a)
Explain the following functions of marketing :
(i)
Transportation
(ii)
Storage or Warehousing
OR
(b)
Explain the following factors affecting price determination of a
product :
(i)
Utility and demand
(ii)
Government and legal regulations
Marking-scheme solution
(i)
Transportation:
Transportation involves physical movement of goods from one place to
the other that is from the place where they produced to the place where
they are consumed.
A marketing firm has to analyse its transportation needs after taking
into consideration various factors such as nature of the product, cost
and location of target market and take decisions in respect of mode of
transportation to be chosen.
(ii)
Storage or Warehousing:
Usually there is a time gap between the production or procurement of
goods and their sale or use. It may be because of irregular demand or
irregular supply.
There is a need for proper storage of the products to maintain smooth
flow of products and to protect against unavoidable delays.
Or
Q (b) Explain the following factors affecting price determination of
a product:
(i)
Utility and demand
(ii)
Government and legal regulations
(i)
The Utility and demand:
The utility provided by the product and the intensity of demand of the
buyer set the upper limit of the price. The buyer may be ready to pay up
to the point where the utility from the product is at least equal to the
sacrifice made in terms of the price paid, the seller would, however, try
to at least cover the costs.
Consumer usually purchase more units at a low price than at a high
price.
(ii)
Government and legal regulations:
In order to protect the interest of public against unfair practices in the
field of price fixing, Government can intervene and regulate the price
of commodities.
Government can declare a product as essential product and regulate its
price.
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CBSE Class 12 Business Studies past-paper question from the 2026 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.