CBSE Class 12 Business Studies Sure Shot Questions Worksheet Set B 2022/2023, Exams of Nursing

Download CBSE Class 12 Business Studies Sure Shot Questions Worksheet Set B 2022/2023 and more Exams Nursing in PDF only on Docsity! CBSE Class 12 Business Studies Sure Shot Questions Worksheet Set B 2022/2023 CBSE Class 12 Business Studies Sure Shot Questions Worksheet Set B 2022/2023 1 FUNCTIONAL FOREMANSHIP Planning In charge: The main function of "planning in charge" is to plan all aspects of a job to be performed. It consists of four positions: (i) Route clerk: He determines the sequence to perform various mechanical and manual operations. (ii) Instruction card clerk: He issues instructions to the workers to be followed by them. (iii) Time and cost clerk: He is concerned with the framing of time schedule on the basis of determined route. Also, he keeps the record of the cost of operations. (iv) Disciplinarian: He is concerned with the coordination in each job from planning to successful execution. He enforces rules and regulations and maintains discipline. Production In charge: It consists of following four specialists who are concerned with the execution of plans. (i) Speed Boss: He checks whether work is progressing as per schedule. He ensures timely and accurate completion of jobs. (ii) Gang Boss: He arranges machines, materials, tools, and equipment properly so that workers can proceed with their work. (iii) Repair Boss: He ensures that all machines, tools, equipment are in perfect working order. Inspector: He ensures that the work is done as per the standards of quality set by planning department. 2. Name and explain that principle of Fayol which suggests that communication from top to bottom should follow the official lines of command. - 5 or 6 Marks Or Explain the 'Principle of Scalar Chain' with an example. Ans. In an organization, the formal lines of authority, from highest to lowest level of all superiors and subordinates, are known as scalar chain. The principle of scalar chain suggests that there should be a clear line of authority from top to bottom, linking superiors and subordinates at all levels. The scalar chain serves as a chain of command as well as communication. In normal circumstances, the formal communication is required to be made by following this chain. 3. What are the main dimensions of business environment? What does environment consist of? Ans. The main dimensions of business environment are (i) Economic, (ii) Social, (iii) Technological, (iv) Political, (v) Legal Economic environment consists of the factors having economic dimensions such as fiscal policy, monetary policy, industrial policy etc. 4 4. Explain the role of political environment in shaping the business? Ans. Business functions within the framework of political environment. Generally, government's policies change with the change of guard in power. Business is required to understand and follow such changes and also respect the orders that judiciary gives from time to time. For example, after globalization, Government of India allowed many companies to enter the Indian market for giving boost to the different industries like food processing industry etc. That paved the way for entry of multinationals in India on a large scale. 5. What do you understand by legal environment? Give two examples which protect consumers' interests. Ans. Legal environment consists of rules and regulations, framed by the Parliament, under which business must operate. To exist and grow, business is required to follow all the rules and regulations that constitute this environment. Two examples protecting consumers' interests: (i) Advertisement of alcoholic beverages is prohibited. (ii)Packets of cigarettes should mention the statutory warning 'Cigarette smoking is Injurious to health'. LONG ANSWER TYPE QUESTIONS ( 5 OR 6 MARKS) 1. What do you mean by business environment? Explain the key components of business environment. Ans. Business environment is the sum total of all external factors that influence the functioning of a business enterprise. The components of general environment are: (i)Economic environment: Economic environment consists of factors having economic dimensions such as fiscal policy, monetary policy, industrial policy etc. Impact: Banking sector reforms have led to attractive deposit avenues and easier credit policy. Likewise reforms in leasing & financial institutions are also catalysing company's economic growth. (ii) Social environment: It discriminates characteristics of the society in which an enterprise exists. It consists of literary rates, educational levels, customs and demographic distribution etc. Impact : Equal pay for equal work for both male and female workers, reservation of jobs for minorities etc. 5 CBSE Class 12 Business Studies Sure Shot Questions Worksheet Set B 2022/2023 (iii)Political environment It consists of the political forces responsible for the management of public affairs and their influence on business. Impact : Government allowed Pepsi to enter Indian market again for giving boost to the food processing industry. (iv)Technological environment It comprises of the various processes, techniques, approaches etc. by which an organization transforms inputs into output. Impact : Digital watches have pushed out traditional watches. (v) Legal Environment : It characterises various governmental rules, regulations and legislations etc. that all members of business community must follow. Impact : Removal of control on foreign exchange and liberalization of foreign direct investments. 2. Enumerate any five Positive impacts of liberalization and globalization. Ans. The positive impacts of liberalization and globalization are as follow: (i) Opportunities for new entrepreneurs. (ii)Latest technology becoming available. (iii) Opening up of foreign markets. (iv) Easy imports of capital goods. (v) Direct investment by Indian companies abroad. 3. 'Environment provides both constraints and opportunities." Comment. Ans. Business environment provides both constraints and opportunities. Some of the constraints are economic conditions, customs, government regulations, availability of natural resources etc. Inspite of many initiatives, FDI is not picking up in India due to political and bureaucratic hurdles. Qus:3 One of the functions of management is considered as a base for all other functions. Name that Function. Ans:3 Planning. 7 Qus:4 : Planning strangulates the initiative of the employees and compels them to work in an inflexible manner” Discuss. Ans:4 Planning reduces creativity. Qus:5 Which limitation of planning suggest that the employees stop thinking and become the blind followers of Plan? Ans:5 Planning reduce creativity. Qus:6 A company needs a detailed plan for its new project- construction of shopping mall. What type of plan is it ? Ans:6 Programme. Qus:7 In which type of plan the sequence to perform a job is determined? Ans:7 Procedure. Qus:8 Which plans suggest action and non action of employees? Ans:8 Rules Qus:9 “No Smoking : the statement is related to which type of plan? Ans:9 Rule. Qus:10 Mc Donald does not give its franchise to any other company which is running food business. This is related to which type of plan/ Ans:10 Policy. Qus:11 Name the type of plan which serve as a guide for overall business planning and define the future state of affair which the organization strive to realize? Ans:11 Objectives. Qus:12 In which step of planning process the planners make prediction and assumptions regarding future? Ans:12 Setting up of planning premises for all the alternatives. Qus:13 How should a manager select the best possible course of action? Ans:13 Manager should apply permutation and combination. Qus:14 Without one function of management the controlling function is not possible. Name the concerned function. Ans:14 Planning. Qus:15 Planning is an activity which enables a manager to look ahead and anticipate 8 changes. Mention the benefit of planning highlighted here. Ans:15 Planning reduces the risks of uncertainty. Qus:16 Planning ensures clarity in thoughts and actions, works is carried on smoothly without interruptions .Which importance of planning is mentioned here? Ans:16 Planning reduces overlapping and wasteful activities. Qus:17 It helps the manager to look into future and make a choice abount various alternative courses of action enumerate the importance of planning indicated here. Ans:17 Planning facilitates decision –making. Qus:18 Planning lays down the base for other functions of management which feature of planning is highlighted here? Ans:18 Planning is a primary function of management. Qus:19 A plan is framed it is implemented and is followed by another plan and so on. Mention the feature of planning indicate here? Ans:19 Planning is continuous process. Qus:20 Which features of Planning is stressed by saying that planning is an intellectual activity of thinking rather than doing? Ans:20 Planning is a mental exercise . Ques 21 Which type of plan is least flexible and why. ANS.21 Rule Because they reflect a managerial decision that an action must / must not be taken. (II.) Three/Four Markers: 22 Planning involves decision making". Explain. Ans.22 Planning is essentially a process of making choice from among various alternatives. There will be no need for planning, if there is only one course of action, because there will be no choice. Hence need for planning depends on the availability of alternatives. A manager, after examining and evaluating the various alternatives, chooses the most appropriate one. 23. 'Planning reduces creativity'. How? Ans 23 Usually in an organisation, planning function is performed by the top management and the rest of the members are required to implement these plans. As a result, middle management and other members are neither allowed to deviate from plans nor are they granted authority to act on their own. Hence most of the initiative and creativity in them gets reduced. 24. 'Planning does not guarantee success'. Comment 4.Scope particular matters like price policy and sales policy 11 daily routine. 5. Basis They are based on the main objectives of the organisation They are based on the standing plans of the organisation. 1) Objectives - Are the ends which the management seeks to achieve by its operation.  Represent the end point of management.  Set by top management.  Defines the future state of affairs.  Guides the overall business planning.  Can be expressed in specific terms. They can be measured. 2) Strategy - Provides broad shape of organization’s business, refers to the future decisions defining the organization’s directions and scope in the long run.  It involves a comprehensive plan which covers the determination of long term objectives, adoption of a particular course of action and allocation of resources. 3) Policies - are general statements which guide thinking in decision making.  They are based on objectives.  They guide managerial action and decisions.  They exist at all levels and departments of the organization. 4) Procedures - Are a chronological sequence of routine steps on how to carry an activity. They detail the exact manner in which the work is to be performed.  It is meant for the insiders to follow.  Policies and procedures are interlinked. 5) Rules - Are specific statements that inform what is to be done. 12 i) C Ltd can make use of ‘strategy’ as a type of plan. The various steps involved in preparing this plan are: The company should set up its objectives after considering quality expectations of consumers and technological changes. Like it’s rival, it can cut down its prices without compromising the quality. It may use sales promotional tools like full finance and rebate to capture the market share again.  Reflects managerial decision.  Simplest plan.  They are to be enforced rigidly. 6) Methods - Are standardized ways or manners in which a task has to beperformed considering the objectives.  Selection of a proper method saves time, money and effort. 7) Programmes - Detailed statements which are combination of goals, policies, procedures, rules tasks, human and physical resources required and the budget to implement any course of action.. All these plans together form a programme. 8) Budget - Is a statement of expected results expressed in numerical terms for adefinite period of time in the future.  It quantifies future facts and figures.  Serves as a standard for measuring actual performance.  It is prepared for various groups of activities. Case study question An auto company, C Ltd. is facing a problem of declining market share due to increased competition from other new and existing players in the market. Its competitors are introducing lower priced models for mass consumers who are price sensitive. For quality conscious consumers, the company is introducing new models with added features and new technological advancements. Questions. (i) Prepare a model business plan for C Ltd. to meet the existing challenge. You need not be very specific about quantitative parameters. You may specify which type of plan you are preparing. (ii) Identify the limitations of such plan. (iii) How will you seek to remove these limitations? Ans:- (ii) The limitations of such plan are: It is a costly process. It is a time consuming process. It may not work in a dynamic environment. It may lead to rigidity in operations. (iii) The given limitations can be overcome through following measures: An organisation can keep a strict watch on time limit to achieve the target. Amount to be spent should be pre-planned by preparing budgets. Environment should be properly scanned to minimise the risk of competition. Plan should be flexible, so that there is a scope for initiative and creativity. 13 Value Based Questions Q.1 Which quality of employee is restricted by the act of planning? Ans1 i) Stability in prices ii) Regular Supply of Goods iii) Fulfilling social responsibility iv) Control on hoarding & Black- Marketing 2 Removal of mobile towers from residential area is being planned by the government to promote which value? Ans 2 i) Reduction in social responsibilities due to non-cooperation in social work. ii) Increase in production due to efficient employees iii) Deterioration in Health of employees due to prolonged working hours. iv) Reduction in employment opportunities for local persons v) Increase in salary will increase social respect/standard of living Q.3 Government is planning to construct a ware house in remote area to store necessary goods. So as to make them available even at the time of bad weather regularly. Which values are being considered here to be achieved by the government? Ans3. i) Bad effect on students health. Q. 8 It is a network of personal and social relations not established or required by 16 the formal organization but arising spontaneously as people associate with one another. Name this organization and give its three advantages. Ans. 8 Informal organization Q.9 The directors of Narmada Ltd. An organization manufacturing computer have asked their marketing manager to achieve a target rate of 100 computers per day. The marketing manager has delegates the task to his deputy sales manager working under him. The deputy sales managers could not achieve he target. Is the marketing manager responsible for the failure of his deputy sales manager? Explain in brief , the relevant principle in support of your answer.? Ans. 9 Yes, marketing manager is responsible for non- achievement of he target sales. Q.10 The Director of Kamal Ltd, an organization manufacturing computer want to double the sales and given this responsibility to their sales manager. The Sales Manager has no authority either to increase , sales expense or appoint new salesman. Hence, he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief , the relevant principal in support of your answer.? Ans. 10 No, sales manager is not responsible for not achieving the target. The principle involved is purity of authority and responsibility. Q.11 It refer to the systematic delegation of authority from top management to the lower level managers. Mention the name of it. Ans. 11 Decentralization. Q.12 “If we delegate the authority, we multiply it by two if we decentralize it, we multiply it by many “ how? Ans.. Scope of delegation of authority is limited as it is confined to a manager and his immediate subordinate in work unit. Scope of decentralization- It involves systematic delegation of authority at all levels and in all functions of the organization. It is an extension of delegation to the lowest levels in the organization. Q.13 The employee of ABC Ltd. Take part in volleyball matches on Sunday. Name the types of organization formed. Ans. 13. Informal organization. Q.14 “The first Step in the process of organizing is identification and division of 17 work” Why is he work divided into manageable activities? Ans 14. The work is divided into manageable activities so that duplication of efforts and resources can be avoided and the burden of work can be shared among the employees. Q.15 While allocating work to various employees how the work must be assigned? Ans. 15. The work must be assigned to those who are best fitted to perform it well. Q. 16 Which Function of management is concerned with building a stable frame work or structure of various parts of an enterprise? Ans. 16. Organizing. Q17 How can department or division be created? Ans. 17. It can be created on the basis of- a) territory and b) products Q.18 How does an informal organization emerge? Ans. 18. Informal organization emerges from within the formal organization when people interact beyond their officially defined roles. Q.19 Name the organization which has the benefit of Easy to fix responsibility? Ans. 19. Formal organization. Q.20 Name the type of organization which does not have predetermined objectives? Ans. 20. Informal organization. Q.21 A Fashion design house has the following main job:- (1) Manufacturing (2) Finance (3)Marketing (4) Personal (5) Research and Development Which organizational structure will you prefer for this type of a company and why? Ans. 21. Functional organizational structure will be suitable. Q.22 Rina runs a shoe manufacturing factory. She wants to expand her business. For 18 expansion she contemplated to enter into the manufacturing of leather bags and western formal wear apart from the running business of shoes. By doing this her company will be able to provide many products to working women under one roof. Which organization structure will you suggest her and why? Ans. 22. In this situation, Divisional Structure will be suitable as it provides equal importance to all products. Also describe the advantages of divisional organization structure. Q.23 Name the activity which increase the importance of the role of subordinates? Ans. 23. Decentralization. Q.24 For which kind of enterprises functional structure is more suitable? Ans. 24. When the size of the organization is large, has a diversified activities and operations require a high degree of specialization. (III) Five/Six Markers: 25. What are the advantages and disadvantages of divisional structure? Ans.25 A): Advantages: 1).All activities associated with one product. It can be easily integrated. 2).Decision making is faster. 3).Performance can be easily assessed remedial action can be taken 4). It facilitates expansion and growth as new divisions can be added. Disadvantages : 1).This gives rise to duplication of effort among its divisions. 2).Manages in each department focus on their own product without thinking the rest of the organization. 3).There may not be full utilization of different equipments 4).Conflict may arise among different division. 26.Distinguish between formal and informal organizations on the basis of a) Formation b. Purpose c. structure d. Behavior of members e. stability and f. adherence to rules. Ans.26. Basis Functional Structure Divisional Structure. Formation Deliberately Planned Emerges Spontaneously The company should shift from centralised to decentralised structure. It would ensure quick decision-making, motivate the subordinates and ensure effective communication. Even in Fast moving consumer goods (FMCG) industry, there is need for decentralisation. By using decentralisation, a company gets following benefits. (a) Develops initiative among subordinates ANS: 21 (i) To overcome the problems faced, the company should encourage informal organisation. (ii) The benefits it will derive are: (a) Faster communication and quick feedback: It follows an independent channel of communication as there is no Prescribed lines of communication to be followed. Thus, the informal organisation leads to faster spread of information as well as quick feedback. (b) Fulfill social needs: It helps to fulfill the social needs of the members and allows them to find like-minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation. (c) Fulfillment of organisational objectives: It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation. For example, employees reactions towards plans and policies can be tested through the informal network. (iii) The company can diversify into interlocking machines, automatic buttoning units, embroidery machines. A company X Limited manufacturing cosmetics, which has enjoyed a preeminent position in business, has grown in size. Its business was very good till 1991. But after that, new liberalised environment has seen entry of many MNC’s in the sector. With the result the market share of X Limited has declined. The company had followed a very centralised business model with Directors and divisional heads making even minor decisions. Before 1991, this business model had served the company very well as consumers had no choice. But now the company is under pressure to reform. Questions. (i) What organisation structure changes should the company bring about in order to retain its market share? (ii) How will the changes suggested by you help the firm? Keep in mind that the sector in which the company is FMCG. ANS: l Decentralisation helps to promote self-reliance and confidence amongst the 22 subordinates. This is because when lower managerial levels are given freedom to take their own decisions they learn to depend on their own judgment. l It also keeps them in a state wherein they are constantly challenged and have to develop solutions for the various problems they encounter. A decentralization policy helps to identify those executives who have the necessary potential to become dynamic leaders. (b) Develops managerial talent for the future: l Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation but equally important is the experience gained by handling assignments independently. l Decentralisation gives them a chance to prove their abilities and creates a reservoir of qualified manpower who can be considered to fill up more challenging positions through promotions. l It also helps to identify those who may not be successful in assuming greater responsibility. Thus, it is a means of management education as well as an opportunity for trained manpower to use its talent in real-life situations. (c) Quick decision-making: l The management hierarchy can be looked upon as a chain of communication. In centralised organisation, every decision is taken by the top management, the flow of information is slow as it has to traverse many levels. Response also takes time. This reduces the speed of decision-making and makes it difficult for an enterprise to adapt to dynamic operating conditions. l In a decentralised organisation, however, since decisions are taken at levels which are nearest to the points of action and there is no requirement for approval from many levels, the process is much faster. There are also less chances of information getting distorted because it doesn’t have to go through long channels. (d)Relief to top management: l Decentralisation is required to reduce the burden of top executives when it increases due to increase in the size and complexity of the organisation. l In a decentralised organization, top executives have enough time to plan ahead, develop new strategies and concentrate on coordination and control. Since they are not burdened by the routine problems and complexities of administrative details. Value Based Questions Q. 1 An electronic company manufacturing TV and Refrigerator wants to bring two new products Washing Machines and AC’s in the market. For each product separate division are to be set up. In charge of working machine division and AC’s division will be female and disabledperson respectively. Which values have been considered here? Ans1. 23 i) Women Empowerment. ii) Promotion of equality. iii) Making handicapped people independent. iv)Increase of job opportunity with production. Q.2 In an organization top level management has not distributed work among the subordinate according to their abilities and skill but has been distributed on the basis of caste and religions.Which values are neglected here? Ans2. i) Ignorance of democratic values. ii) Promotion of castism. iii) Violation of secularism. iv) Narrow mindedness. v) Non- Consideration of abilities. Q3 A manager has kept all right of decision making with himself. Each and every employee has to come to him for orders again and again. Which values are being violated here? Ans3. i) Wastage of time and resources. ii) Frustration in employees. Q.4 In an organization formal organization is followed strictly where the employees have to work as per the directions only. The employees are performing under pressure. In your view, what changes are required in this company? Ans4. i) Fearful environment will decrease production. ii) Increased feeling of insecurity. iii) Pressure will create stress among employees. iv)Delay in work 26 Q-8. Give the meaning of ‘Placement’ as a step in the process of staffing. (1) A-8. Placement refers to assigning specific jobs to the candidates, selected for appointment. Q-9. What is meant by ‘Induction Training’? (1) A-9. Induction training refers to the process of introducing the selected employees to other employees and familiarizing him with the rules and policies of the organization. Q-10. What is meant by ‘Performance Appraisal’? (1) A-10. Performance Appraisal means evaluating an employee’s current and/or past performance as against certain predetermined standards. Q-11. Why is it said that selection is a negative process? (1) A-11. Selection is said to be negative process because it aims at rejection employees. At every stage many people are eliminated from the process and only a few more to next stage. Q-12. A company gets applications on and off even without declaring any vacancy. However as and when the vacancy arises, the company makes use of such applications. Name the source of recruitment used by the company. (1) A-12. The source of recruitment is casual callers. Q-13. What is meant by ‘Democratic style’ of leadership? (1) A-13. Democratic style of leadership is one in which a leader gives order only after consulting the group and work out the policies with the acceptance of the group. Q-14. Give the meaning of ‘Authoritative style’ of leadership. (1) A-14. Authoritative style of leadership is one in which a leader gives order and insists that they are obeyed. He determines the policies for the group without consulting them. 27 Q-15. Why informal system of communication is generally referred as the ‘grapevine communication’? (1) A-15. Informal system of communication is generally referred to as grapevine communication because it spreads throughout the organization with its branches going out in all directions in utter disregard to the levels of authority. Q-16. What is important while analyzing deviations in controlling? (1) A-16. While analyzing deviations, it is important to determine the acceptable range of deviations/ Key result areas. Q-17. What should be the ‘focus point’ for a manager while controlling’ as controlling at each and every step is not possible? (1) A-17. Focus point for a manager while controlling should be key Result Areas. Q-18. Why is controlling called a backward looking function? (1) A-18. It is said that controlling is looking back because it conducts a post mortem of part activities to find out deviations from the standards. Q-19. Enumerate four points of importance of staffing. (1) A-19. Staffing is considered an important function of management because of the following reasons :( any three): 1. It helps in discovering and obtaining competent personnel for various jobs. 2. It results in improved performance by putting right person on the right job. 3. It ensures continuous survival and growth of the enterprise through the succession planning for managers. 4. It ensures optimum utilization of human resources. It avoids disruption of work by indicating in advance the shortage of personnel. 5. It improves job satisfaction and morale of employees through objective assessment and fair reward for their contribution’ 28 6. It avoids wastage of material, time, effort and energy. Q-20. State any three advantages of Internal Sources of Recruitment. (3) A-20. Advantages of internal sources of recruitment: (a) Motivate employees as promotion at a higher level may lead to a chain of promotions at lower levels in the organization. (b)Simplify the process of selection as the candidates are already known to the organization. (c) No needs for induction training as the employees are already familiar with the organization. (d)Help in adjustment of surplus staff in those departments where there is shortage of staff. (e) Economical source of recruitment. Q-21. Give the meaning of ‘Placement’. ‘Orientation’ and ‘Training’ in the process of falling. (3) A-21. (1) Placement refers to the employee occupying the position or the post for which he/she has been selected. (2) Orientation refers to introducing the selected employee to other employees and familiarizing him with the policies and rules of the organization. (3) Training refers to the process by which aptitudes, skills and abilities of employees to perform specific jobs are improved. Q-22. Explain any three assumptions of Maslow’s need hierarchy theory. (3) The following are the assumption of Maslow’s need hierarchy theory. (i) People’s behavior is based on their need. Satisfaction of such needs influences their behavior. 31 Therefore , the entire organization has to suffer if anything goes wrong at these points. For example, in a manufacturing organization , an increase of 10% in the material cost is more troublesome than 15%increase in stationery expenses. Q-27. Explain how ‘Management of Exception’ helps in the controlling process. (3) A-27. Benefits of management by exception are as under: (i) Management by exception helps in the controlling process by identifying only significant deviations which go beyond the permissible limit and bringing them to the notice to the management. It saves the valuable time of the management. (ii) It helps the management to identify important deviations which need timely action to keep the organization on the correct path. (iii) It facilitates delegation of authority because it is based on the belief that an attempt to control everything results in controlling nothing. Thus, it helps in increasing morale of employees. (iv) It helps the management to concentrate on important matters beneficial for the long-term profitability of the organization. Q-28. Mr. Ram murti, the director of “bahuguna ispat udyog ltd.” Is of the opinion that an employee is prudent and sensitive resource of the organization. As such, special attention must be paid to his emotions. This is the reason why Mr Bahuguna always formulate such plans are beneficial to both the employees and the organization. With a view to giving a practical shape to his opinion, he has chalked out a plan. According to this plan, employees should be inspired to visit popular management institutes to acquire latest knowledge. This will enhance their performance level and prove beneficial to the organization as well as the employees. Keeping it in view, mr Bhauguna, contacted IIM, ahmedabad. The latter agreed, on the 32 undertaking that their (IIM) MBA students be allowed to visit a company so that they may get practical knowledge. Both reached an agreement. (i) What objective of the management has been referred to at the beginning of the above paragraph? Identify it? (ii) Plan of Mr Bahuguna relates to which component of management? Identify and describe the same. (iii) What value is being affected here? (1+2+1) A-28. (i) it refers to ‘individual objectives’ of the management. It refers to the objectives to be determined with respect to the employees of the organization. (iii) Mr Bahuguna’s plan relates to the training of the employees. He is making use of ‘internship training method’. It is that training which is imparted jointly both by the educational and business organization to strike balance between the theoretical and practical knowledge of their members. (iv) Realizing of insignificance of human sentiments here humanity has been dealt with. Q-29. Sahil, the director of a garments company, is planning to manufacture bags for the utilization of waste materials of one of his garments unit. He decided that this manufacturing unit will be set up in a rural area of Orissa where people have very less job opportunities and lab our is available at very low rate. He also thought of giving equal opportunities to men and women. (i) Identify and state the next two steps that Sahil has to follow in the staffing process after selecting the above heads. (ii) Also identify two values which Sahil wants to communicate to the society by setting up this manufacturing unit. (4) A-29. (i) Next two Steps of staffing process: 33 (a) Placement and Orientation: Placement means to join the post for which he/she has been selected. Under orientation the employee is given a brief presentation about the company and is introduced to his superiors, subordinates and colleagues. (b)Training and Development: At this step of process of staffing, training and development are imparted to the employees so that their efficiency and effectiveness is increased. (i) Values: (a) Development of backward areas. (b)Equality. Q-30. Love and Kush are two friends. Both are MBA (Final year) students One day, their professor called them to class stage for a surprise test. He told that one of them will establish relationship between any two functions of management. Then, the other one will establish reverse relationship between the same two functions. Both will have to give justification for the relationship explained by them. It was a test carrying 50 marks. Both the students were intelligent and skillful. Love was the first to speak. Love said that in his opinion of the two functions of management selected by him one is always looking ahead (future) and the other is looking back (past). No sooner did love express his opinion, than Kush identified the functions selected by him (Love).In his reply, Kush said that the one function stated by Love to have been looking ahead was in his opinion, looking back and the other one stated by him (Love) to have been looking back was looking ahead. (a) Identify the functions of the management discussed in the above paragraph. (b)Justify the contrary relations of management functions as viewed by Love and Kush. (1+3) A-30. (a) Planning and Controlling 36 Manager, he also fixes price of company’s products. While fixing the price he takes special care to ensure that prices should have no adverse impact on the budget of the consumers. His main aim is to present true image of the company and its products in advertisement. (a) Which step of controlling process has been referred to in the above paragraph? Clarify. (b)Indentify any two values directed to the society by Mr pandey. (2+2) A-33. (a) Third step of Controlling process i.e., “Comparison of actual performance with standards” has been discussed. (c) Values:  Good health  Reasonable price. Q-34. Business of “shardha auto pvt ltd.” Is confined only to one state. Now it intends to extend the same to two other states. Mr Jatin jain, the managing director of the company, is busy in making a plan to this effect. First of all, he contacted mrs rukmani rana , the HR manager of the company. Both were of the record of the opinion that they would requires more 75 employees to extend their business to two new state. On looking at the record of the existing employees, it transpired that 8 employees were going to retire very shortly. Besides two employees were proceedings on long term study leave abroad for two years. Thus, company would now acquire 85 employees in all. Mrs Rana recommended to Mr Jatin that out of the total vacant posts, 15 be reserved for women. Mr Jatin gladly accepted the proposal. Now HR Manager was to decide as to what arrangement to be made for the appointment of neede person. She hit upon a plan according to this plan some employees would be recruited with the help of existin employees, for some other inrenet would be approached and or the remaining potential employees placement agencies operating in the market would be contacted. (i) Describe what function of management has been referred to in the above paragraph? 37 (ii) What sources of recruitment are being used by H.R manager? Explain briefly. (iii) Identify the value hinted at. (1+3+1) A-34. (i) staffing (ii) A. recommendation B. internet/websites C. private placement agencies (iii) Women empowerment Q-35. Mr Anil Garg is working as Managing Director of “CLS Packaging Limited “. He is not in favor of selling waste material in the market. Instead he is planning to make himself new products of this material. For this purpose, a new unit will have to be set up. Accordingly, he decided to establish this unit in an area where large numbers of persons are unemployed and so labor is available at cheap rate. In order to attract workers to this new unit, a special Remuneration Scheme was introduced. As per this scheme, workers will get their remuneration on the basis of their work. There will be two rates of wages: higher wage rate and lower wage rate. A worker who will work up to a given standardized units or beyond will be paid his/her remuneration at a higher rate. On the other hand, a worker who will work less than the given standardized units will be paid his/her remuneration at a lower rate. In order to operate this new unit, Mr Garg established a separate ‘Waste Material Division’. It consisted of four departments, such as, purchase, sale production and Accounts. Company required four managers to run these departments, of these, two managers were appointed from the existing business, by way of promotion: while the other two were selected out of the waiting List maintained by the company. 38 (i) Which form of organization structure is being adopted by the company? (ii) Identify and give the meaning of wage payment scheme adopted by the company to motivate the workers. (iii) What methods of recruitment have been adopted by the company? (iv) Identify these two values that Mr Garg has been dedicating to the society by establishing this new unit. (1+2+1+1) A-35. (i) Divisional Organisation Structure. (iii) Differential wage system: It refers to that technique of scientific management which differentiates between efficient and inefficient workers. (iv) Promotion  Casual callers (v) Development of backward area  Rise in employment opportunities Q-36. Anjali had been working with ‘Tata Enterprises’ for the last ten years. She was famous for her dedication towards the work. When the Manager senior to her retired, all her colleagues thought that now Anjali would be promoted. But to everyone’s surprise the vacant post was filled by an outsider,’ Miss Monika’. Anjali felt demoralized and her performance started declining. She would absent herself often and could not meet her targets. Miss Monika was a good leader who would not only instruct her subordinates, but also guide and inspire them. She noticed Anjali’s behavior and felt that her performance could be improved. She started involving Anjali in decision-making issues related to the organization and made her a part of a high-level joint managements committee. Anjali was now punctual to office and her performance started improving. (a) Identify the function of management being performed by Monika. 41 Q-39. Mr. Ekant Miglani, after completing his studies of B.B.A is working in the production Department of ‘Jai Chemicals Limited’. There are fifty persons working at different posts in his Department. He tries hard to keep a watch over the Routine Activities of all the employees. He observed one of the employees, Bhola Ram and a few others working on machines. They were running the machines in a wrong manner. The machines were very sophisticated. Mr Miglani at once explained the right method of working to them. He wanted to solve this problem of the employees for good. He called a meeting of his subordinates. He took this decision that the company will have to organize training of the employees immediately. They also decided that all the employees will drop a suggestion each in the suggestion-box daily, so that the different activities of the department may be improved speedily. It was announced that the employees giving valuable suggestions shall be rewarded. On the basis of the above paragraph answer the following questions: (a) Which function of management is being discharged by Mr Miglani by keeping a watch over the Routine Activities? (b)Which method of training of the employee’s will be suitable to be adopted here? Explain. (c) Which style of leadership is being followed by Mr Miglani? (d)Which method of Motivation will be decided to be adopted in the meeting of employees? (1+2+1+1) A-39. (a) Supervision (b) Here the Vestibule Training Method will be suitable to be adopted. Under this training method a separate training centre is set up. In this centre factory like atmosphere or circumstances is/are created and the employees are trained to work on sophisticated machines. (c) Democratic leadership Style. (d) Employee Recognition Program me. 42 Q-40. Five students of BBA took part in a discussion. The subject of their discussion was: “Why do people get motivated to do anything?” The main portions of their discussion are as under: The first student said, “People work because they want to deposit wealth enough to protect themselves from diseases and to be relieved of the tension of old age.” The second student said, “People work because they want to arrange food, cloth and shelter for themselves at any rate.” The third student said,” People work because they want to reach the top of the field in which they are. They, therefore, put in untiring efforts.” The fourth student said, “People work, so that when they have money, people will become friendly with them and they will stand by them through thick and thin.” The fifth student said, “People work, so that they may get respect in the society and that they may be recognized as exceptional persons.” (a) The discussion given above relates to which function of management? (b)The five friends spoke about the different needs of people as the basis of their doing work. Identify these needs. (6) A-40. (a) Motivation (b)First friend: Safety Needs Second friend: physiological Needs Third friend: Self Actualization Needs Fourth friend: Social Needs Fifth Friend: Esteem Needs Q-41. “Kitchen saj Limited.’ Is a company manufacturing plastic goods? Mr. Shah is its Marketing Manager and Mr sahu, its Production Manager. Style of working of both the managers is entirely different. Mr Shah set such standards for different activities of his department as were quite easy to achieve. On the 43 other hand, Mr Sahu set standards for different activities of his department as were very difficult to achieve. As a result, marketing department achieved its targets very easily. Mr Shah and his team were very pleased with these results. But the situation prevailing in the production department was quite contrary to it. Mr sahu was far behind his tar gets. Now he and his team were very much worried. (a) Which step of controlling process has been discussed in the above paragraph? (b)In your opinion, both the managers would have set standards for which activities of their respective departments? Write two standards each. (c) Of the two managers, one set easily achievable standards whereas the other set such standards as could be achieved with great difficulty. In your opinion, how affect situation would have on the employees? (d)State in one word, what should be the type of standards? (1+2+2+1) A-41. (a) Here, first step of the controlling process i.e., setting of performance Standards, has been discussed. (c) Main standards of Marketing Department  Sales Volume  Sales Expenses Main standards of production Department  Quality  Quantity (d) Effect of easily achievable standards: In this situation employees turn lazy (idle.) Effect of those standards which are achieved with difficulty: In this situation employees are worried. 46 A-43. (a) (i)” at the beginning of the new year..............................different vacancies”. *estimating man power (ii)” He gave an advertisement......................................120 applications were received”. *recruitment (b) mr Goel gave tests in the following order: (i) interest test (ii) special trade efficiency test (iii) Aptitude test (iv) Personality test Q-44. Two friends, Nancy and poonam, are working as managers in the different departments of ‘Libra Limited’. They often talk about the performance level in their respective departments. Both of them are not satisfied with their subordinates. They tried to ascertain when the employees got their full salaries, what problem they had in working honestly. After investigating for some days, they arrived at the conclusion that there was lack of motivation in their company. Both held a meeting together in order to find out the solution of the problem. Nancy suggested participation of the employees in the Company’s profits, which she thought would create in the employee’s the feeling of belongingness to the company. Such a feeling, she was of the view, would have a direct influence on their performance level. Poonam, on the basis of her experience, said that if the feeling of job security was aroused in the employees, there could be improvement in their performance level. Both of them contacted their Chief Executive Officer-CEO with their suggestions. All the three of them deliberated over this issue. The CEO listened to them very attentively. He said,” Both of you are right, but I too have a suggestion. If the employees are made participants in taking decisions, they will feel good and their performance level will improve”. Ultimately, the company implemented the suggestions of all the three of them. In the above paragraph, three different persons have spoken about the three methods of motivation. Identify these methods and explain. 47 (6) A-44. (1) Nancy gave the suggestion of profit Sharing. Profit Sharing. Poonam gave the suggestion of job Security. Job Security. Q-45. Mr jay prakash Gupta is the General Manager of “Bhagwati Udyog Pvt. Ltd.” With a view to running his business in a careful manner, he divided all the activities into seven departments. These departments were: Purchase, Marketing, Production, Personnel, Finance, Accounting and Correspondence. Later on, he realized that accounting and correspondence department can be merged into finance department. Thus, all business activities were divided into five departments. Mr Gupta is now thinking on the lines as to which are the departments, out of these five that will have significant role in the success of the business. After complete analysis, he concluded that marketing, production and finance were the department on which success of the business depended. It meant that every of some shortcoming occurred in the departments of purchase and personnel, it would not affect much the success of the business. Thereafter, Mr Gupta determined deviation tolerance limits of these three main departments. It meat that if deviation of these departments remains within this tolerance limit, them it will be looked after by the concerned manager. However, in case the deviation is beyond this limit then the same will be brought to the notice of General Manager. (a) Identify two functions of the management referred in the above paragraph. (b)Describe the relevant concepts of identified functions. (2+4) A-45. (a) Organizing and Controlling. (b)(i) Concept related to Organizing Under it, second step of organizing process i.e., Departmentalization, has been described. 48 (ii) Concept related to Controlling Following two concepts related to controlling have been described:  Critical point Control  Management by Exception. 1 marks questions Financial management Sure shot questions Business Studies 1. When can a business use trading on equity to increase the earnings of its shareholders. ANS: When ROI is greater than Rate of interest on debts. 2. State the objective of financial management. Ans To maximise the shareholders wealth 3. . Name the financial decision which affects the liquidity as well as profitability of a business. Ans Investment decision 4. Name the type of investment decision which relates to short-term and affects day to day operation of a company. Ans. Working capital decisions or short term investment decisions 51 The position will be reversed if interest on debt is much more than the average rate of return on capital employed. Financial markets 5. Distinguish between the primary market and secondary market on any four basis: Sale of securities,ii)capital formation,iii)determination of price,iv)location Ans : basis Primary market Secondary market Sale of securities Sale of securities by new companies to the investor directly. ownership of existing securities is exchanged between investors. Capital formation It contributes directly for capital formation Contributes indirectly in capital formation Determinatio n of price Price of securities is fixed by the management of the company Prices of securities is fixed by the demand and supply factors of stock exchange market. location No fixed geographical location. It is located at fixed place. 6.Define financial markets.Explain any four functions of financial markets Ans : correct meaning. Functions”: i) Mobilisation of saving and channelling them into the most productive uses ii) Facilitate price discovery iii) Provide liquidity to financial assets iv) Reduces the cost of transaction 7. What is a money market? Explain any three money market instruments. 52 assets whoseANS: Money market is a market for short term funds dealing in monetary maturity period is up to one year. Call Money-to maintain CRR banks borrow from each other for 1-15 days. T-Bills in form of promissory notes maturing in less than 1 year. Issued by RBI. Minimum denomination 25000. Also known as zero coupon bonds Commercial Bills: trade bills and accommodation bills Commercial Papers: unsecured, negotiable promissory note for 15days to 1 year, issued by large creditworthy companies for bridge financing ie to meet floatation cost of raising long term funds from capital market Certificate of deposits: short term, unsecured, negotiable instruments in bearer form issued by developmental financial institutions and commercial banks, individuals and companies and corporations. These are issued during periods of tight liquidity, when the deposit growth of banks is slow but demand for credit is high, helps mobilise large funds for short term requirements. 8. Nature of money market can be well explained with the help of its features. State any three such features of money market. Ans. Features of money market: 1. The money market is a market for short term securities with a maturity period up to one year. 2. It is a market where low risk, unsecured and short term debt instruments are traded. 3. It has no physical location, but is an activity conducted over the telephone and through the internet. 9. Explain any three functions of financial market. Ans. Functions of a financial market: 1. Mobilization of saving and canalizing them into most productive use. 2. Facilitating price discovery. 3. Providing liquidity to financial assets. 4. Reducing the cost of transactions. 5 and 6 marks questions Financial management 1. Identify the financial decision which determines the amount of profit earned to be distributed and to be retained in the business. Explain the factors affecting this. 53 ANS: Dividend Decision. factors affecting this Amount of earning Stability of earning Stability of dividends Growth opportunities Cash flow position Shareholders preference Taxation policy Stock market conditions Access to capital markets Legal constraints Contractual constraints. 2. One of the major decisions taken by a Finance Manager is the decision regarding maintenance of liquidity and at the same time maximization of profitability. Which type of decision is referred to in the statement and what are the factors responsible for it. Explain in brief. ANS: Working Capital Decision Factors affecting: 1.Nature of business 2.Scale of operations 3.Business cycle 4.Seasonal factors 5.Production cycle 6.Credit allowed 7.Credit availed 8.Availability of raw materials 3. What are the factors to be kept in mind while deciding the capital structure of a company. Ans : factors affecting i) cost of capital ii) control 56 7. The directors of a company want to modernize its plant and machinery by making a public issue of shares. They wish to approach the stock exchange, while the finance manager prefers to approach a consultant for the new public issue of shares. Advise the director whether to approach the stock exchange or a consultant for new public issue of shares and why. Also advise them about different methods which the company may adopt for the new public issue of shares. Ans. The director should approach a consultant for new public issue of shares. The stock exchange deals with sale and purchase of existing securities only, not in new issue of securities. Different methods which the company may adopt for the new public issue of shares: Offer through prospectus. I. Offer for sale II. Private placement III. Rights issue IV. e-Ipos 57 SURE SHOT QUESTIONS FOR CBSE BOARD EXAM 2017 CLASS- XII, BUSINESS STUDIES, CHAPTER-11 MARKETING MANAGEMENT Q.1 It is important that the goods must be available to the consumers at the right time, right place and in the right quantity. (a.) Name and explain the concerned element of marketing mix. (b.) Explain the various components of this element. 2+4 A-1 (a.) Physical distribution- handling and movement of goods, place of production to place of distribution. (b.) Transportation, warehousing, inventory control and order processing with proper explanations. Q.2 Name the important function of giving a name, sign or symbol to a product. Also highlight its various characteristics for success. 1+5 A-2 Branding Characteristics of a good branding: (i.) Short and easy to recognize, spell or understand. (ii.) Suggest the product benefits and qualities. (iii.) Distinctive and capable of being registered. (iv.) Versatile with staying power. (v.) Adaptable to packaging and labeling requirements. Q.3 The purchase consideration for the product might get affected due to various factors. Explain. 6 A-3 (i.) Product cost (ii.) Utility and demand (iii.) Level of competition (iv.) Marketing methods used (v.) Pricing objective (Vi.) Government policies Q.4 You don’t close a sale, you open a relationship, if you want to build up a 1+2 58 long term successful enterprise. Identify the promotional tool used by the marketer. State two features of this communication tool. A-4 Personal selling Features: (i.) Direct face to face dialogue. (ii.) Immediate feedback and flexibility. Q.5 Identify the marketing concepts used: (i.) Identify needs and wants and fill them. (ii.) Create products and sell them. (iii.) Earn profit through volume. (iv.) Trading of herbal products with due care of the environment. (v.) Introduction of silver wash technology in Samsung washing machines. 5 A-5 (i.) Marketing (ii.) Selling (iii.) Production (iv.) Societal (v.) Product Q.6 Identify the sales promotion techniques used: (i.) Limited period offer of 10,000 on all models of Maruti. (ii.) 1 GB memory card, back case and tamper glass free with purchase of any mobile. (iii.) Selling of free sachets of recently launched shampoo brand. (iv.) 3 up front and 9 post dated cheques @ 0% interest. (v.) 20% extra on Surf Excel’s big pack. (vi.) On every purchase of 5,000 or above, free gift hampers worth 2,000. 6 A-6 (i.) Rebate (ii.) Product combinations (iii.) Sampling (iv.) Full finance (v.) Quantity gift (vi.) Usable benefit. Q.7 State a misconception regarding marketing. 1 A-7 Some people believe that marketing is same as merchandising and selling. Q.8 Identify the key difference between advertisement and publicity. 1 A-8 Former is a paid form of promotion while the latter is unpaid. Q.9 Define public relations. 1 A-9 It involves a variety of programmes such as news, events, publications, sponsorships, etc to promote and protect the image of a company and its products. 61 Explain the three functions of marketing with reference to the above paragraph. A-1 4 (i.) Gathering information and analyzing market information. (ii.) Standardisation and Grading. (iii.) Branding. Q.15 A company selling toothpastes provides different quantities of the product, well packed in an adequate size of the tube, which is then put inside a box which contains its full label giving useful informations. It has a wide market and thereby the company uses three level channels of distribution for timely and speedy coverage of its widespread consumers. Adapting to the needs of the changing environment, the company has also recently launched a web portal for placement of orders in bulk by the customer sitting in any part of the world. For the geographical distribution of its products, the company uses roadways through which its products are transported using large sized trucks in big corrugated boxes. (i.) Identify the various levels of packaging being used by the company. (ii.) Give two values as conveyed by the company from the above para. 3+2 A-1 5 (i.) Primary- the tube, secondary- the cardboard box, transportation- the corrugated boxes. (ii.) adaptability, care for its consumers needs. SURE SHOT QUESTIONS FOR CBSE BOARD EXAM 2017 CLASS- XII, BUSINESS STUDIES, CHAPTER- 12 CONSUMER PROTECTION Q.1 What is the constitution of District Consumer Dispute redressal Forum? 1 A-1 One president and two other members, one of whom should be woman. 1 Q.2 Besides a consumer, name any two parties who can file a complaint before the appropriate consumer forum. 1 A-2 (i.) Any registered consumer association. (ii.) The Central or State government. Q.3 Give the definition of ‘Consumer’ as per the Consumer Protection Act, 1986. 4 A-3 (i.) Any person who buys any goods for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who obtains goods for re-sale or any commercial purpose. 2+2 62 (ii.) Any person who hires or avails off any service for a consideration, which has been paid or promised, or partly paid and partly promised, or under any scheme of deferred payment. It includes any user of such goods, when such use is made with the approval of the buyer, but does not include a person who avails off such services for any commercial purpose. Q.4 Give any one responsibility of the consumer in addition to obtaining an invoice while purchasing an air conditioner. 1 A-4 To look for the ISI mark. Q.5 Mukul purchased a house for 50 lakhs from a housing company and found it being defective. Despite many complaints, the defect was not rectified. In which consumer forum should he file the case? Where should he go for appeal and on what condition? 3 A-5 State forum He can appeal in the National forum if not satisfied by the decision of the State forum that too within 30 days of passing of the order. Q.6 At a railway platform, a vendor was selling the packet of chips for 20 each instead of the printed M.R.P. of 15 per packet on it. Name the right that can be exercised by the consumers in this case. 1 A-6 Right to be heard Q.7 Name the quality certifications that are associated with the following products. (i.) Food products (ii.) Electrical goods (iii.) Agricultural products 3 A-7 (i.) FPO, FSSAI (ii.) ISI (iii.) Agmark Q.8 On ordering the products online, what responsibilities any consumer should assume to avoid any kind of exploitation? 4 A-8 (i.) Buying only the standardized goods. (ii.)Reading labels carefully before buying. (iii.) Learning about the various risks associated with the product. (iv.) Asking for the cash memo. (v.) Conducting an intelligent survey to get information about various brands and facilitating comparisons. Q.9 Shilpa purchased a pure honey from the market. After using it for a while, she doubted its purity since it got crystallized. She sent it for laboratory testing which confirmed that it contained sugar molecules. State any six reliefs available to Shilpa, if she files a complaint and the consumer court is satisfied about the genuineness of the complaint. 6 A-9 (i.) To remove the defects. 63 (ii.) To replace the defective good with a non-defective one. (iii.) To refund the price paid. (iv.) To pay reasonable compensation for the loss. (v.) To discontinue unfair trade practice. (vi.) To pay adequate costs by seller to consumer. Q.10 Meetu purchased a carom board from Prakhar Toys and Gifts shop. Within few days, she observed various cracks on the board and came to the conclusion that the wood used is not of appropriate quality. She went to the shopkeeper with the complaint who had recently started to keep the stock of such boards. The shopkeeper satisfied meetu by assuring her to get it replaced by the manufacturer. He also approached the manufacturer who refused to replace the products and ultimately Prakhar toys decided to file a complaint in the consumer court. Can Prakhar Toys and Gifts do this? Why or why not? 2 A-1 0 No, Prakhar Toys and Gifts cannot file a complaint in consumer forums as they are not ‘consumers’ as per the definitions of the consumer Protection act, 1986 since tey bought the goods for commercial purpose or for resale. Q.11 Which consumer right is highlighted in the advertising for ‘Apne Adhikar’? 1 A-1 1 Right to consumer education Q.12 There are few organizations that specifically work for looking after the different plights of a consumer and supports them in numerous ways for protection of their rights. Explain atleast six functionings of such organizations. 6 A-1 2 (i.) Educating the consumers. (ii.) Publishing periodicals for knowledge. (iii.) Carrying out comparative laboratory testings. (iv.) Encouraging consumers to strongly protest. (v.) Providing legal assistance to consumers. (vi.) Filing complaints in consumer courts.