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Published on: 01/01/2019
Class 12 Model Question
Download CBSE Class 12th Standard CBSE Business Studies question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Business Studies
Questions + Answers key
Take MCQ Business Studies Test

1.
'The main goal of label is to draw consumer attention and spreading company's name with logo'. In the light of this statement, state the advantages of labelling.
2.
Discuss the features of features of leadership.
3.
What is complaint under the Consumer Protection Act,1986?
4.
SEBI is the watchdog of security market. Do you agree? Give three reasons in support of your answer.
5.
Niharika runs a shoe manufacturing factory. She wants to expand her business. For expansion, she contemplates to enter into the manufacturing of leather bags and western formal wear apart from running business of shoes. By doing this, her company will be able to provide many products to the working women under one roof.
(i) Which organisation structure will you suggest her and why?
(ii) Which values are satisfied in the above case?
6.
What do you understand by the term 'trading on equity'?
7.
How is control related with planning?
8.
Discuss in brief the social environment as the dimension of business environment.
9.
How planning bridges the gap between where we are and where we want to go? Explain in brief.
10.
State some of the significance of management principles.
11.
Enumerate two benefits of training to the organisation.
12.
What are the types of organisation structures?
13.
How does financial market help in mobilisation of savings and channelise them into the most productive uses?
14.
What is business cycle?
15.
Thread is the most important tool in garland. Similarly in management, which concept plays the role of thread?
16.
Why is control resisted by employees?
17.
Karan, Kartik and Kunal are best friends.They decided to enter into a partnership business of constructing a mall.Which function of management is referred here?
18.
What did Taylor Want to communicate through 'mental revolution'?
19.
State any six functions of consumer organisations and NGOs for protecting and promoting the interest of consumers.
20.
Explain the process of staffing.
21.
Name the decision, a financial manager takes keeping in view the overall objective of maximising shareholders' wealth.
Explain any two factors affecting the decision.
22.
Explain by giving any five reasons why understanding of business environment is important for a manager.
23.
State any two advantages of branding to marketers of goods and services?
24.
Explain briefly the responsibilities of a supervisor towards workers
25.
Coordination is required at which level of management?
26.
Briefly explain the meaning and nature of coordination.
1.
Functions of labelling are:
(i) Describe the product and specify its contents
It specifies the contents and other features of the product. It enables the manufacturer to give clear instructions to the consumer about the proper use of his product. It helps to describe the product, its usage, cautions in use, contents, manufacturing and expiry dates, price, quantity, etc.
(ii) Identification of the product or brand
It gives a definite identity to the product or brand and therefore, the identification of product becomes easy. e.g. the name pears printed on toilet soaps helps us to know which soap out of several soaps is pears.
(iii) Grading of products
It enables the manufacturer to grade the product into different categories. e.g. Hindustan Lever sells different grades of tea under green, yellow and red labels.
2.
Leadership.is a process of influencing people to strive willingly for the attainment of objectives.
Features of leadership are;
(i) It indicates an ability of an individual to influence others.
(ii) It tries to bring change in the behaviour of others
(iii) It is the continuous process.
3.
Complaint means any allegation in writing in regard to one or more of the following:
(i) Complainant has suffered loss or damage as a result of any unfair trade practice or restrictive trade practice adopted by any trader.
(ii) Goods bought by him suffer from one or more defects.
(iii) Services hired or availed of suffer from any deficiency in that respect.
(iv) Trader has charged a price in excess of the price fixed by law or displayed on the goods or package.
(v) Goods are hazardous to life and property.
4.
Yes, I agree as SEBI regulates and protects the interest of investors.SEBI was established in 1988 and given a statutory status in 1992, to protect the investors from the fraudulent malpractices, rampant in securities market before 1988.As a watchdog, it regulates the market and protects the investors by keeping a check on various manipulative activities by performing the following functions:
(i) Regulates takeover bids by companies.
(ii) Prohibits fraudulent and unfair trade practices.
(iii) Undertakes several steps to protect the investors, e.g. calls for information by conducting inspections, enquiries and audits of the companies.
5.
(i) In this situation, divisional organisation structure will be suitable, as it provides equal importance to all its products.
(ii) Values, which satisfied are:
(a) Company is being sensitive to the needs of working women.
(b) Provides employment.
6.
Trading on equity means the use of fixed cost sources of finance such as preference shares, debentures and long-term loans in the capital structure, so as to increase the return on equity shares.This is also known as financial leverage.It is advisable to use trading on equity when the rate of Return on Investment is more than the rate of interest payable on debentures and loans.
7.
Controlling is based on planning, as it involves measurement of actual performance against the standards to analyze deviations and take corrective action. Thus, controlling is impossible without planning.
8.
Social environment consists of all social and cultural forces such as traditions, values, and trends that affect business enterprises significantly.
Traditions such as celebration of festivals gives an opportunity to business-like greeting cards, gifts, sweets etc.
9.
Planning involves thinking before doing.It anticipates future and course of action to be taken.
It is the process which decides in advance the objectives to be achieved and formulates plans, policies and methods to achieve them.In this way, we can say that it bridges the gap between where we are where we want to go.
10.
Study of management principles is necessary due to the following reasons:
(i) They provide useful insights to managers.
(ii) Principles help managers to secure optimum utilisation of resources.
(iii) It helps in taking scientific decisions.
(iv) Management principle help in fulfilling social responsibilities.
11.
( )
Two benefits of training to the organisation are:
(i) Training increases the productivity of employees.
(ii) It helps in reducing employee absenteeism and turnover.
12.
( )
Two types of organisation structures are:
(i) Functional structure.
(ii) Divisional structure.
13.
( )
A financial market facilitates the transfer of savings from savers to investors.It gives saver, the choice of investment and thus, helps to channelise surplus funds into the most productive uses.
14.
( )
Business cycle reflects the periodic but irregular up and down movements of business activity.
15.
( )
Coordination.
16.
( )
Control is resisted by employees because in general, employees feel that imposition of control is like an unwanted interference, restriction and burden on them.
17.
( )
Planning.
18.
( )
Mental revolution involves a change in the attitude of workers and management towards one another from competition to cooperation.
19.
Consumer organisations NGOs are established or formed to protect and promote the consumer interest.They perform following functions:
Role of NGOs/Consumer organisations
Consumer organisations and NGOs perform several functions for the protection and promotion of interest of consumers.These include:
(i) Creating awareness about consumer rights by organising training programmes, seminars and workshops.
(ii) Imparting knowledge about consumer problems,legal reporting and reliefs available by publishing periodicals and publications.
(iii) Carrying our comparative testing of consumer products in accredited laboratories and publishing the results for the general benefit.
(iv) Encourage consumers legal assistance by providing aid, advice, etc to seek legal remedy.
(vi) Filing complaints in appropriate courts on behalf of consumers.
(vii) Taking initiative for filing cases in the interest of general public.
20.
Staffing is the managerial function of filling and keeping filled positions in the organisation structure.This process needs crucial analysis of manpower.
Process of staffing
1. Estimating the Manpower Requirements
It involves forecasting and determining the number and kind of manpower required by the organisation in future.It involves workload analysis and workforce analysis.Workload analysis helps a manager to assess the number and type of human resources necessary to perform various jobs in the organisation, whereas, workforce analysis helps him to know the number and type already available.
A comparison of the two helps to know the actual requirement of manpower.It also helps to reveal whether the organisation is understaffed or overstaffed.Further, job description is done by specifying the desired qualification, experience, training and personal characteristics required for various job positions.
2. Recruitment
It may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.The objective of recruitment is to create a pool of prospective candidates, from which the best candidate can be selected.There are many sources of recruitment such as advertisement, casual callers, direct recruitment, etc.
While internal sources can be used economically, external sources can bring in fresh talent and wider choice.
3. Selection
In this step, right candidate is chosen for the right job from the pool of candidates obtained through recruitment.
This process ensures that the organisation gets best among available and it enhances the self-esteem and prestige of those who are selected.It involves a series of tests, interviews, and negotiations, in order to generate the contract of employment containing the terms and conditions of employment in the organisation.
4. Placement and Orientation
Placement means occupying the post or position for which the person has been selected.Orientation/Induction implies introducing the selected employee to other employees and familiarisng him with rules and policies of the organisation, by giving him a brief presentation about the company, his superiors, subordinates, and colleagues.
5. Training and Development
These involve improving job knowledge, skills and attitudes of employees on a regular basis so that they may perform their jobs efficiently. Apart from this, training helps in career building and increasing motivation of employees.It may be done, while doing work, i.e. on-the-job or before doing work, i.e. off-the-job.
6. Performance Appraisal
It means evaluating an employee's current or past performance against the pre-determined standards.In this step, the capability of the employee is judged, which helps them to know the standards, provide feedback and helps the manager to decide their future career prospects.
7. Promotion and Career Planning
It becomes necessary for all organisations to address career-related issues and promotional avenues for their employees.This will prove to be beneficial for both an employee and the organisation, as it will result in increased employee satisfaction and productivity, which would serve long-term interests of the organisation.
8. Compensation
It means all forms of pay or rewards offered to employees. It may be in the form of direct financial payments like wages, salaries, incentives, commissions, etc, or indirect payments such as insurance, free housing, vacations, etc.It is the most important and basic incentive used to motivate employees.
21.
Dividend decision A financial manager takes decision in three broad areas, viz investment, financing and dividend, for maximising shareholders' wealth. Wealth maximisation is possible with increase in price of shares.
A good dividend policy will enhance the market value of shares thus, meeting the objective of wealth maximisation. It also influences the financing decision of the firm, since the firm will not require funds to the extent of re-invested retained earnings.
So, it should be taken keeping in view the overall objective of maximising shareholders' wealth.
The four factors which affect dividend decisions are
(i) Earnings Dividends are paid to the shareholders either from the past earnings or from the curent earnings or from both. Therefore, 'earnings' is a major factor which affects dividend decision.
(ii) Stability of earnings It also affects the dividend decision. A company having stable earnings can declare higher dividend whereas, a company having unstable earnings is likely to pay smaller dividend.
(iii) Stability of dividend Companies generally have a policy of stabilising dividends, i.e. increase in dividend is only done when the earning potential of the company has gone up and not just the current year's earnings. Thus, dividend per share is not altered when the change is small or temporary in nature.
(iv) Shareholders' preference While declaring dividends, management must keep in mind the preferences of the shareholders in this regard. If the shareholders in general desire that at least a certain amount is paid as dividend, the companies are likely to declare the same. There are always some shareholders who depend upon a regular income from their investments.
22.
Importance/Benefits of business Environment
Business enterprises cannot work in isolation. Therefore, a good understanding of environment not only helps the manager to deal with uncertain situations but also helps enterprises to identify the benefit from opportunities that the environment offers. The following points highlight the importance of business environment:
1.It Enables the firm to identify Opportunities and Get the First Mover Advantage
Opportunities are the positive trends that help firms to grow. A good knowledge of business environment helps a manager to identify such opportunities earlier to take its benefit, rather than losing it to other competing enterprises.
For example, Maruti Udyog was the first automobile company in India to recognize the opportunity to develop small cars, due to which, it is still one of the market leaders in that segment.
2.It Helps the Firm to identify Threats and Early Warning Signals
Threats refer to the negative trends, which will hinder the performance of the enterprise. The businessmen, who are able to scan and understand the business environment on time get a warning signal to deal with such negative changes. e.g. due to entry of many automobile companies in India, Maruti Udyog had started paying attention towards making strategies to survive in the competition.
3.It Helps in Tapping Useful Resources
Environment is a source of various resources for business like finance, machinery, raw materials, etc. Contrary to this, business enterprise supplies goods and services to the society in the form of taxes, products, return on investment, etc.. A good understanding of environment helps that firm to convert such resources into output required by the environment and society.
4.It helps in Coping With Rapid Changes
Business environment is fast changing due to turbulent market conditions, more demanding customers, changing technology and increasing global competition. In order to cope up with such changes and derive benefit from them, managers must examine their environment and develop suitable action.
5.It Assists in Planning and Helps in Policy Formulation
Since, business environment is a source of identifying both opportunities and threats, its proper analysis and understanding provide the base for planning and guides in framing policies. It helps an enterprise to decide the future course of action and provides guidelines for decision-making.
23.
Advantages of branding to marketers are:
(a) It helps in differentiating the product from that of its competitors.
(b) It helps in advertising and display programmes.
(e) It helps the firm to charge different price for its product.
(d) It helps the firm to introduce new product under the known brand.
24.
Supervisors can be defined as overseeing people at work and giving instruction to ensure optimum utilisation of resource. The importance of supervisor/supervision can be understood by analysing the following function of a supervisor
25.
Coordination is needed at all the three levels of management. The work at every level is performed by a group of people, That is why, it is required at all the three levels viz:
(i) Top level: It requires coordination to integrate all the activities performed by middle and lower level of management.
(ii) Middle level: This level requires coordination to balance the activities performed by different individuals.
(iii) Lower level: This level requires coordination to bind the efforts of all workers towards the achievement of goal.
26.
Coordination is the process by which manager synchronises the activities of different departments. It is the force that binds all the other functions of management. The important features of coordination are:
(i) Integrates group efforts: It binds the diverse efforts of individuals to attain the organisational goals.
(ii) Continuous process: Coordination begins with planning and continues till controlling. Thus, it is a continuous process.
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