AHSEC| CLASS 12| BUSINESS STUDIES| SOLVED PAPER - 2016| H.S. 2ND YEAR
2016
Business Studies
Full marks: 100
Time: 3 hours
The figures in the margin indicate full marks for the questions
1. Answer the following questions: 1x10=10
(a) Why it is said that management is pervasive? 1
Ans:- Management can be applied to all types of organizations such as large or small, trading or manufacturing, economic or non-economic. Also it applies to all levels of management. That is why it is called omnipresent.
(b) What is the main objective of fatique study? 1
Ans:- The main objective of fatigue study is to determine the amount and frequency of rest intervals in completing a task efficiently.
(c) What is the first step of staffing process? 1
Ans:- Planning manpower requirements: The first step of staffing is to evaluate the manpower requirement of an organization to match the available jobs and positions in the organization.
(d) When working capital becomes negative? 1
Ans:- Negative working capital occurs when a company's current liabilities exceed its current assets.
(e) What is the other name of primary market? 1
Ans:- The primary market is also known as the new issue market.
(f) What do you mean by brand? 1
Ans:- A brand is a product or service that has a unique and instantly recognizable identity that stands out from others in its industry.
(g) Name the association that has devised a code of conduct for Indian managers. 1
Ans:- AIMA has prepared a code of conduct for Indian managers but there is no statutory backing for this code.
(h) How management principles are derived? 1
Ans:- Management principles are statements of fundamental truth that provide guidelines that help management make decisions and take action. They are derived from observation and experimental studies.
2. Write two differences between authority and responsibility. 2
Ans:- There are two differences between authority and responsibility:-
(i) Authority: It means the right to take decisions and give orders to subordinates. Responsibility: It means responsibility to do the assigned work.
(ii) Authority: It arises from the position of the work in the scalar chain. Responsibility: It arises from delegated authority.
3. Give two points of distinction between training and development. 2
Ans:- There are two differences between training and development:-
(i) Appropriateness: Training is more suitable for technical employees and development is more suitable for managerial employees.
(ii) Time: Training is a short-term process and development is a long-term process.
4. State two importance of supervision. 2
Ans:- Supervision has two importance:-
(i) The supervisor maintains day to day contact and maintains friendly relations with the workers.
(ii) The supervisor acts as a link between the workers and the management.
5. Mention two points of distinction between rules and policies. 2
Ans:- Two points of difference between rules and policies:-
(i) Scope: The scope of rules is usually limited, focusing on specific behaviour, actions or situations in a particular context. These are often designed to address immediate concerns and ensure compliance in specific areas. Policies, on the other hand, have a broader scope, addressing multiple aspects within an organization or system.
(ii) Specificity: The rules are generally more detailed and clear, leaving little room for interpretation. They provide specific instructions on what is allowed or prohibited, providing clear guidelines for behavior. In contrast, policies are generally more flexible and allow for interpretation. They provide a general framework and allow discretion in making decisions based on individual circumstances.
6. Write two features of Capital market. 2
Ans:- The features of capital market are as follows:-
(i) Capital market is a market where medium and long term securities are traded.
(ii) It provides higher returns on investment.
7. Explain briefly the process of controlling. 3
Ans:- Control is a dynamic process and action or people oriented. The control process includes the following:-
(i) Setting performance standards: Standards can be of two types: qualitative standards and quantitative standards. Performance standards are primarily derived from the objectives, goals and expectations of the organization.
(ii) Measurement of actual performance: Once these standards are fixed for the desired performance the next step is to measure the actual performance. Performance measurement should be clear, simple, logical, relevant and understandable without any complaints or explanations.
(iii) Comparison of actual performance with standards: In this stage, actual performance is compared with established standards. Such comparisons reveal deviations between planned and actual results.
(iv) Analysis of Deviations: At this stage, acceptable and non-acceptable deviations are analyzed where the following things come into consideration:
(a) Critical Point Control: It means focusing on key result areas where deviations are not acceptable and should be addressed on priority basis.
(b) Management by exception: It means that if a manager tries to control everything, he cannot control anything. Thus, he has to handle important deviations first, which require his priority.
(v) Taking corrective action: The most important step in the control process is to take corrective action. The task is to remove the obstacles in the actual action plan after analyzing the deviations and their causes. The objective of this step is to bring the actual performance up to the level of expectations by adopting corrective measures.
8. State three advantages of Management Information System. 3
Ans:- Management information systems provide the following benefits to managers:-
(i) It facilitates the collection, management and dissemination of information at different levels of management and in different departments of the organisation.
(ii) It supports planning, decision making and controlling at all levels.
(iii) It improves the quality of information with which a manager works.
9. Explain three factors affecting financial decisions of a corporate organisation. 3
Ans:- Factors influencing financing decisions:-
The finance manager takes into account the following factors while taking financial decisions:-
(i) Cost: The cost of raising finance from different sources varies and finance managers always give preference to the lowest cost source.
(ii) Risk: There is more risk associated with borrowed funds as compared to owner funded securities. The finance manager compares risk with cost and gives preference to securities with moderate risk factors.
(iii) Cash flow position: The cash flow position of the company also helps in the selection of securities. Companies with smooth and stable cash flow can easily afford borrowed fund securities, but when companies lack cash flow, they should only choose owner fund securities.
Or
Explain three areas of financial management. 3
Ans:- Financial management refers to the efficient acquisition, allocation and utilization of company funds. It deals with three main dimensions of financial decisions namely investment decision, financing decision and dividend decision.
(i) Investment Decisions: Investment decisions refer to decisions where to invest so as to earn the highest possible return on investment. Investment decisions can be taken for both long term and short term.
(ii) Financial Decisions: Such decisions involve identifying various sources of funds and deciding the best combination for raising funds. The main sources of raising funds are shareholders' funds (referred to as equity) and borrowed funds (referred to as debt).
(iii) Dividend Decision: This decision involves the decision regarding distribution of profits or surplus of the company. A company may retain or distribute its profits as dividends to equity shareholders.
10. State the importance of consumer protection from businessmen’s point of view. 3
Ans:- Consumer protection is a broad term which has the following objectives:-
(i) To provide protection to consumers against unfair trade practices of traders, manufacturers and service providers.
(ii) To educate consumers about their rights and responsibilities.
(iii) To provide quick and cheap resolution of their complaints.
Importance of Consumer Protection from Business Perspective:
A business should also emphasize on protecting consumers and satisfying them adequately. This is important for the following reasons:
(i) Long-term interest of business: Customer is the foundation of business. Satisfied consumers not only bring repeat sales but also give positive feedback about the product, which helps in increasing the customer-base of the business.
Consumer protection is essential to keep consumers satisfied in the long run. It facilitates maximization of long term profits of the firm.
(ii) Business utilizes the resources of the society: Business companies utilize the resources which belong to the society like manpower, mineral resources, capital, etc.
Therefore, it is the responsibility of businesses to convert these resources into useful goods and services for the welfare of the society.
(iii) Social Responsibility: Business organizations earn money by selling their products to consumers.
It is the social responsibility of a businessman to provide satisfaction to his customers and take care of their interests.
(iv) Ethical justification: Business exists to serve man. It is the moral duty of a businessman to provide good service to his customers and keep them away from exploitative and unfair business practices.
Therefore, a business should avoid unfair trade practices like adulteration, misleading advertising, black marketing etc.
(v) Government interference: If a business organization is involved in any kind of exploitative business practices, the government will interfere and may tarnish the image of the company.
Therefore, it is in the interest of business to take care of consumer protection.
Or
Write three objectives of entrepreneurial development. 3
Ans:- Entrepreneurship Development Programs (EDPs) are those which mainly focus on developing and enhancing the entrepreneurial role. They help entrepreneurs by motivating them to acquire the necessary skills and attitudes so that they can make best use of their abilities and perform the entrepreneurial role efficiently.
(i) To encourage entrepreneurship throughout the country
(ii) To make maximum use of scarce resources
(iii) To work towards the betterment of socially backward areas
(iv) Creating and providing employment opportunities
(v) Increasing the role of small and medium industries
11. How complaints are redressed under The Consumer Protection Act 1986? 3
(coming soon)
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