By QB365 on 31 Dec, 2022
QB365 provides a detailed and simple solution for every Possible Questions in Class 12 Commerce Subject - Important 3 Mark English Medium. It will help Students to get more practice questions, Students can Practice these question papers in addition to score best marks.
12th Standard
Commerce
Answer all the following Questions.
Differentiate management from Administration.(any 3)
How the employees are informed about important matters in a company?
What are the Process of MBE?
Give the meaning of Financial Market.
What are the various kinds of Capital Market? Explain. (any 3)
Explain the types of Treasury Bills? (any 3)
Explain Bull and Bear.
Draw the organization structure of SEBI.
Define the term Human Resource Management.
State the steps in Recruitment process outsourcing
What is structured interview?
Write short note on trainer and trainee.
Mention any three role of Marketer.
What do you mean by marketing mix? Write any two elements
Discuss the objectives E-Marketing
What is meant by artificial scarcity?
What do you understand about "Right to protection of health and safety"?
Write a note on the Voluntary Consumer Organisation.
What do you know about Technological environment?
Write a short note on New Economic Policy.
Discuss in detail about existing goods.
What are the characteristics of a bill of exchange?
Distinguish between entrepreneur and Manager. (any 3)
Explain about the imitative entrepreneur
Expand the following: i) STEP ii) JAM iii) SEED
What do you understand by Issue of Securities at Premium?
Who is a shadow director?
Give any three cases in which an ordinary resolution need to be passed.
Explain Management Vs Administration.
Bring out the Subsidiary Functions of Management.
Answers
Basis | Management | Administration | |
---|---|---|---|
1. | Meaning | An organised way of managing people and things of a business is called management | The process of administering an organisation by a group of people is known as administration |
2. | Authority | Middle and lower level | Top level |
3. | Concerned with | Policy implementation | Policy formulation |
4. | Role | Executive | Decisive |
5. | Area of operation | It works under administration | It has full control over the activities of the organisation. |
6 | Applicable to | Profit making organizations (i.e.,) Business organizations. | Goverment offices, Military,Clubs, Business Enterprises,Hospitals, Religious and Educational Organizations |
7 | Decides | Who will do the work? And How will it be done? | What should be done? And when is should be done? |
8 | Work | Putting plans and Policies into actions. | Formulation of plans, framing policies and setting objectives |
9 | Focus on | Managing work | Making best possible allocation of limited resources |
10 | Key person | Manager | Administrator |
11 | Represents | Employees, who work for remuneration | Owners, who get a return on the capital invested by them. |
12 | Function | Executive and Governing | Legislative and Determinative |
(i) Directing denotes motivating, leading, guiding and communicating with subordinates on an ongoing basis in order to accomblish pre-set goals,
(ii) Employees are kept informed of all necessary matters by circulars, instructions manuals, newsletters, notice-boards, meeting, participative mechanisms etc., in order to enable the employees to accomplish the organizational goals.
(i) Primarily, it is necessary to set objectives or norms with predictable or estimated results.
(ii) These performances are assessed and get equated to the actual performance. Next, the deviation gets analysed.
(iii) With an insignificant or no deviation; no action is a required and senior managers can concentrate on other matters.
(iv) If actual performances deviates significantly, the issue needs to be passed to the senior managers, as an exception has occurred.
(v) Finally the union is to solve this "exception" immediately.
1. A market where in financial instruments such as financial claims, assets and securities are traded is known as a "Financial Market".
2. According to Brigham, Eugene F "The place where people and organizations wanting to borrow money are brought together with those having surplus funds is called a Financial Market''.
Primary Market
(i) Primary Market is a market for new issues or new financial claims. Hence, it is also called New Issue Market.
(ii) The primary market deals with those securities which are issued to the public for the first time.
(iii) In the primary market, borrowers exchange new financial securities for long term funds.
There are three ways by which a company may raise capital in a primary markt.
There are:
a) Public Issue
b) Rights Issue
c) Private Placement
Secondary Market
(i) Secondary Market may be defined as the market for old securities.
(ii) Securities which are previously Issued in the primary market are traded here.
(Iii) The trading takes place between investors who follow the original issue in the primary market.
On the basis of periodicity, Treasury bills maybe classified into three. They are:
(a) 91 days Treasury bills
(b) 182 days Treasury bills and
(c) 364 days Treasury bills
(i) Ninety one days Treasury bills are issued at a fixed discount rate of 4 per cent as well as through auctions.
(ii) The RBI holds 91 days and 182 days Treasury bills and they are issued on tap basis throughout the week.
(iii) 364 days Treasury Bills do not carry any fixed rate.
(iv) The discount rate on these bills are quoted in auction by the participants and accepted by the authorities. Such a rate is called cut off rate.
Bull :
(a) A Bull or Tejiwala is an operator who expects a rise in prices of securities in the future.
(b) In anticipation of price rise he makes purchases of shares at present and other securities with the intention to sell at higher prices in future.
(c) He is called bull because just like a bull tends to throw his victim up in the air, the bull stimulates the price to rise. He is an optimistic speculator.
Bear :
(a) A Bear or Mandiwala speculator expects prices to fall in future and sells securities at present with a view to purchase them at lower prices in future.
(b) A bear does not have securities at present but sells them at higher prices in anticipation that he will supply them by purchasing at lower prices in future. A bear is a pessimistic speculator.
Organization Structure of SEBI
In the words of E.F.L. Breach HRM as that part of management process which is primarily concerned with the human constituents of an organisation.
a) Requirement Understanding
b) Advertise & Source
c) Screening
d) Validation
e) Profile submission
f) Interview Process & Feedback
g) Selection & Follow-up
(i) Under this method, a series of question to be asked by the interviewer are prepared by the interviewer and only these questions are asked in the interview.
(ii) Ultimately interviewees are ranked on the basis of score earned by the candidate in the interview.
(iii) It is also known as Guided / Planned Interview.
Trainer : A person who teaches skills to employee and prepare them for a job activity.
Trainee
1. A person who is learning and practising the skills of particular job.
2. Trainees should be selected on the basis of self-interest and recommendation by the supervisor or by the human resource department itself.
Role of Marketer:
1. Instigator
2. Innovator
3. Integrator
4. Implementeor
1. Instigator
As an instigator, marketer keenly watches the developments taking place in the market and identifies marketing opportunities emerging in the ever changing market.
2. Innovator
Marketer seeks to distinguish his products/services by adding additional features or functionalities to the existing product modifying the pricing structure, introducing new delivery pattern, creating new business models, introducing change in production process and so on.
3. lmplementer
Marketer plays a role of implementer when he/she actually converts marketing opportunities into marketable product with the help of several functional teams put in place in the organization.
Marketing mix means a marketing programme that is offered by a firm to its target consumers to earn profits through satisfaction of their wants
There are four elements of Marketing Mix . They are Product, Price, Place and Promotion.
(i) Product
Product is the main element of marketing. Without a product, there can be no marketing.
(ii) Promotion
An excellent product with competitive price cannot achieve a desired success and acceptance in market, unless and until its special features and benefits are conveyed effectively to the potential consumers.
The following are the objectives of E-Marketing
(i) Expansion of market share
(ii) Reduction of distribution and promotional expenses
(iii) Achieving higher brand awareness
(iv) Strengthening database
(i) There are certain situations where the shop-keepers put up the board 'No Stock' in front of their shops, even though there is plenty of stock in the store.
(ii) In such situations consumers who are desperate to buy such goods have to pay high price to buy those goods and thus earning more profit unconscientiously.
iii) Even in Cinema houses, board may hang in the main entrance 'House Full' while cinema tickets will be freely available at a higher price in the black market.
1. There may be few products that are more likely to cause physical danger to consumers health lives and property.
2. They may contain potentially harmful substances which are dangerous from the consumer welfare point of view.
3. In case of food items and drugs both life saving and life sustaining safety is to be guaranteed.
4. Recent legislations shifted the responsibility for the production of such unsafe items onto the shoulders of sellers rather than on buyers.
(i) Consumer is a broad label for any individuals or households that use goods and services produced within the economy.
(ii) Voluntary consumer organizations refer to the organization formed voluntarily by the consumers to protect their rights and interests.
1. Technology is widely used in conducting market research for understanding the special needs of the customer.
2. Digital and social media are used as a platform for advertising and promoting the Products/ services.
3. Data mining and data analytics are used to know the customer better.
4. Technology is used in managing inventory, storing goods in warehouses in distributing goods and in receiving payment
(i) India agreed to the conditions of World Bank and IMF and announced New Economic Policy (NEP) which consists of wide range of economic reforms.
(ii) This new set of economic reforms is commonly known as the LPG or Liberalisation, Privatisation and Globalisation model
Existing goods may be either
(i) Specific Goods
(ii) Ascertained Goods
(iii) Generic or Unascertained Goods
(i) Specific Goods:
Specific goods denote goods identified and agreed upon at the time of contract of sale.
Example: Buyer selected a specific variety of saree after examining other sarees
(ii) Ascertained Goods:
The term 'ascertained goods' is also used as similar in meaning to specific goods.
(iii) Unascertained or Generic Goods:
These are goods which are not identified and agreed upon at the time of contract of sale.
(i) A bill of exchange is a document in writing.
(ii) The document must contain an order to pay.
(iii) The order must be unconditional.
(iv) The instrument must be signed by the person who draws it.
(v) The name of the person on whom the bill is drawn must be specified in the bill itself.
Basis of Difference | Entrepreneur | Manager |
---|---|---|
Motive | The very motive of an entrepreneur is to start a venture by setting of an entity. | The very motive of manager is to render service in an entity setup for execution of venture. |
Status | Entrepreneur is owner of the entity. | Manager is a salaried employee in the entity set up for carrying on the venture. |
Risk Bearing | Entrepreneur bears the eventual risk and uncertainty in operating the enterprise | Manager doesn't bear any risk in the venture where the venture is unsuccessful he/ she simply quits the enterprise. |
Rewards | Entrepreneur is rewarded by profit for the risk bearing exercise. The reward for entrepreneur is totally uncertain | Manager's reward salary,bonus, allowance is certain and regular. |
Skills | An entrepreneur requires creative talent, intuition and urge for innovation. | Manager requires conceptual skills and human relations skills. |
(i) Imitative entrepreneur is one who simply imitates existing skill, knowledge or technology already in place in advanced countries.
(ii) A simply re-engineer or redesign the products developed in advanced countries and produce a version suited to their local conditions.
(iii) For example, many electronic products invented in advanced countries are simply re engineered in developing countries.
(i) STEP - Support to Training and Employment Programme for Women
(ii) JAM - Jan Dhan - Aadhaar - Mobile
(iii) SEED - Science for Equity Empowerment and Development
(i) When shares are issued at a price above the face or nominal value, they are said to be issued at a premium.
(ii) For example, a share having the face value of Rs.10 is issued at Rs.12. Here, Rs.2 is the premium.
(iii) The amount of share premium has to be transferred to an account called the 'Securities Premium Account'.
A person who is not the member of Board but has some power to run it can be appointed as the director but according to his/her wish.
(i) To declare the dividends
(ii) To change or rectify the name of the company
(iii) To redeem the debentures
The two terms 'management' and 'administration' are used inter changeably.
(i) While management is more executive in nature. But the concept of administration denotes the art of decision - making.
(ii) Management is all about plans, actions, but the administration is concerned with framing policies and setting objectives.
(iii) The manager looks after the management of the organisation, whereas administration is responsible for the administration of the organisation.
Innovation, Representation, Decision-making and Communication are the subsidiary functions of management
(i) Innovation: Innovation refers in the preparation of personnel and organisation to face the changes made in the business world.
(ii) Representation: (a) A Manager has to act as representative of a company.
(b) Manager has dealings with customers, suppliers, government officials,banks, financial institutions, trade unions.
(iii) Decision making: (a) Every employee of an organisation has to take a number of decisions every day.
(b) Decision-making helps in the smooth functioning of an organisation.
(iv) Communication: Communication is the transmission of human thoughts, views or opinions,from one person to another person.