BUSINESS STUDIES CLASS XII - MLL

M LL        XII    B.ST.

1.         NATURE AND SIGNIFICANCE OF MANAGEMENT

Q1. What do you mean by “effectiveness?

Ans Effectiveness refers to completion of task on time

Q2. What do you mean by “efficiency”

Ans It refers to minimum wastage of resources .

Q3. Management of any organization strives to attain different objectives. Enumerate any two such objectives.

Ans (i) Organisation (ii) Social

Q4. Name the level of Purchase manager.

Ans Middle level

Q5. Name the function of management, which inject life in the organization.

Ans Staffing.

Q6. Name the function of management ,which ensure work accomplishment as per plan.

Ans Controlling

Q7. Unique Ltd is using eco friendly method of production? Identify the objective it is try to achieve?

Ans Social objective

Q8. Which function of management is considered as the base of all other functions.

Ans Planning

Q9. Which function of management ensure issuing of instruction and orders and also motivate the employees.

Ans Directing function

Q10. Name the level of Management involved in overseeing the activities of workers

Ans. Supervisory level    

2.     PRINCIPLES OF MANAGEMENT

1.     Who is the father of scientific management?

ANS:- F.W.Taylor

2.     Who is the father of General management?

Ans:- Henry Faoyol.

3.     Give any two principles general management.

Ans:- Dvision of work and scalar chain.

4.     Give any two techniques of scientific management.

Ans:- Functional foremanship and method study.

5.     Give any two nature of principles of management.

Ans:- Universal application and general guidelines.

6.     Give any two significance of principles of management

Ans:- Provide insight to managers and efficient utilization of resources.

7.     What do you mean by principles of management?

Ans- Principles of management are the statements o fundamental truth which act as guidelines.

8.     Name any two principles of scientific management.

Ans:- Harmony not discord and cooperation not individualism.

9.     Who gave the principle unity of command?

Ans:- Henry Fayol.

10.                        Who gave the technique mental revolution?

Ans:- F. W. Taylor.

3. BUSINESS EVIRONMENT

1.     Give examples of factors constituting business environment

Ans: competition, technological developments, changes in Government’s economic policies, changes in fashions and tastes of consumers, increased competition.

2.     Why is it said that business environment is a relative concept?

Ans.Because it differs from place to place, country to country and region to region.

3.     Why is business environment uncertain?

Ans. Future happenings are difficult to predict

4.     What do you mean by globalization?

Ans. It is known as integration of various economies of the world

5.     Enlist any one feature of New Industrial Policy 1991

Ans. Many industries reserved for public sector were dereserved.

6.     Give one measure taken by Indian Government to introduce liberalization

Ans Abolishing licensing requirements

7.     What is meant by Opportunities?

Ans Opportunities refer to the positive external trends of changes that will help a firm to improve its performance

8.     What is meant by threats?

Ans Threats refer to the external environment threats and changes that will hinder firms performance

9.     What do you mean by first mover advantage?

Ans Early identification of opportunities

10.                        How can environment awareness help managers?

Ans Various threats are identified in time.

4.PLANNING

1.     How does planning reduce creativity?

Ans Once plans are drawn, middle management and other decision makers are not allowed to deviate from same, thus it reduces creativity

2.     State how planning is a mental exercise

Ans Planning is an intellectual activity of thinking rather than doing because planning determines the action to be taken

3.     Give meaning of procedure

Ans It is a guide for action and it contains steps to be taken in chronological manner

4.     Define rules

Ans Rules are specific guidelines for behavior and action

5.     Define strategy

Ans A strategy refers to future decision action, defining the organisation’s direction and scope in the long run.

6.     XYZ Ltd Company selects its employees through written test along with interview. Identify the plan

Ans Procedure

7.     What is the purpose of doing follow up action in planning process?

Ans To ensure proper implementation of plans

8.     Given one difference between policy and procedure

Ans Procedures consist of series of steps whereas policies are guidelines for decision making

9.     What is to be done for evaluating different projects of a financial plan?

Ans Risk-Return trade off is to be considered.

10.            Enumerate any three qualities of best alternative.

Ans  Best alternative is the one which is most profitable, most feasible and with least negative consequences.

5.ORGANIZING

Q1. Which function of management is concern with structure of various parts of an organization.

An. Organization

Q2. What is the meaning of organization structure ?

An organization structure refers to  network of job position ,responsibility and authority at different level of organization.

Q3. Which kind of relationship shown by organizational structure?

An .superior and subordinate relationship

Q4. What are the element of delegation of authority?

An. A) authority B) responsibility C)accountability

Q5. Name the concept which involves systematic delegation of authority from top management to the lower level management.

An. Decentralization of authority.

Q6. Decentralization is the extension of a concept?

An delegation of authority.

Q7. Enumerate any two basis of a depart mentation of  an organization ?

An .production  and finance.

Q8. Out of responsibility , accountability and responsibility, which can be completely delegated.?

An. Authority.

Q9. Give any one advantages of functional structure.

An. It promotes specialization in a particular function.

Q10. Decentralization is the extension of a concept .name the concept .

An. Delegation of authority.

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6.STAFFING

Q.1. Which function of management helps in obtaining right people and putting them on the right jobs?

Ans: Staffing

Q.2. It implies introducing the selected employees to other employees and familiarizing him with the rules and policies of the organization. Name it.

Ans: Induction Program

Q.3. “Internal sources of recruitment are better than external sources of recruitment”. Do you agree with this statement?

Ans: No.

Q..4   Himesh is working as a supervisor in a company. Due to his hard work he is promoted to the post of Production Manager. Now the post of supervisor is vacant and no one can be transferred or promoted to this post. Name the source of recruitment the company will use to fill up this post.

Ans: External Sources.

Q..5 It is the process of identifying and choosing the best person out of a number of prospective candidates for a job. Name it

Ans: Selection

Q..6 Which step in the process of selection helps the manager to eliminate unqualified or unfit job seekers based on the information supplied in the application forms.

Ans: Screening

Q..7 It is the process of increasing the knowledge and skills of an employee for doing a particular job. Which process is refers to here.

Ans: Training

Q..8 Which type of training is a joint programme of training in which educational institution and business firms cooperate?

Ans: Internship

Q..9 Trainee is put under the guidance of a master worker to require a higher level of skill. For example to become plumber , electrician etc. Which method of training is referred here.

Ans: Apprenticeship

Q..10 In which type of training, employees learn their jobs on the equipments they will be using, but the training is conducted away from the actual work floor. Explain two other methods relating to this.

Ans: Vestibule Training

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7.DIRECTING

1.      What is directing?

Ans:- Directing is telling people what to do and seeing that they do it to the best of their ability.

2.     What are the elements of directing?

Ans:- Supervision, motivation, leadership and communication.

3.     What do you mean by supervision?

Ans:- It means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organization.

4.     What do you mean by motivation?

Ans:- It is process of inducing people to perform to their best ability to accomplish the goal.

5.     Name two financial incentives.

Ans:- commission and bonus.

6.     Name two non-financial incentives.

Ans:- status and recognition.

7.     Name any two leadership styles.

Ans:- Autocratic and Democratic leadership.

8.     What is communication?

Ans:- it is the process of exchange of ideas, views, message, informations between two or more persons by different means.

9.     What is formal communication?

Ans:- It means official communication.

10.  Give any two merits of formal communication.

Ans:- It is systematic and easy to fix responsibilities

8.CONTROLLING

1.        Explain why it is said that controlling is forward looking as well as backward looking function.

Controlling is forward looking because corrective action in controlling seeks to improve the performance in the future or to revise future plans

2.        ‘Controlling is a pervasive function”. Explain

Controlling function is performed in all types of organisations whether commercial or non-commercial and at all the levels i.e top, middle and supervisory levels of management. Thus it is a pervasive function.

3.        Controlling is a continuous activity. Explain

Controlling function is not performed just once; rather it is needed at all times. It involves constant watch on performance and in case any deviation occurs, it takes necessary steps in accordance with company’s plans.

4.        What is deviation?

Deviation is the difference between the actual and planned performance

5.        What is critical point control?

Since it is neither easy nor economical to check each and every activity in an organisation, the control should focus on Key Result Areas (KRAS). These KRAs are very essential for the success of an organisation and act as critical points. This is called critical point control.

6.        What do you mean by Management by Exception?

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.

7.        How controlling helps in improving employees’ morale.

Controlling function ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be judged, thereby, improving employees’ morale.

8.        Explain how controlling helps in achieving better coordination and better planning?

The controlling function lays down performance standards for each department and employee which are well coordinated with one another, thereby helping in achieving better coordination in the organisation.

9.        What do you mean by standards?

Standards are the criteria, set in both quantitative and qualitative terms, against which actual performance can be measured.

10.   How does controlling helps in efficient use of resources and how does it facilitate decision making? Explain.

Controlling makes efficient use of resources because each activity is performed in accordance with predetermined standards, reducing wastage and spoilage of resources. This minimizes costs and improves quality.

Controlling facilitates decision making by comparing the actual performance with the standards and finding out the deviations, if any and taking a right decision as to what type of corrective action is to be taken.

9. FINANCIAL MANAGEMENT

Q1 Define business finance?

Ans. Arranging finance for running business.

Q2 what is objective of financial management?

Ans.Wealth maximization.

Q3 what is dividend?

Ans. Share of profit distributed to shareholders.

Q4. What is meant by financial decision?

Ans. Decisions relating to business activities.

Q5. List out the types of Investment decisions.

Ans. Capital budgeting and working capital.

Q6. What is capital budgeting?

Ans. Deciding long-term investment.

Q7.Defining financial planning.

Ans. Taking steps in systematically.

Q8. Define capital structure.       

Ans. Mix of owned and borrowed capital.

Q9. What is working capital?

Ans. Short-term assets  -  short-term liabilities.

Q10. State the main sources of funds.

Ans.Owned and Borrowed funds.

10.FINANCIAL MARKETS

Q1.What is meant by a financial market?

Ans.The market where creation and exchange of securities is done known as financial market.

       Q2.What is financial intermediation?

Ans. The process of making allocation of funds from savers to investors is known as financial intermediation.

Q3.Name the two segments of financial markets.

Ans.1. capital market 2. Money market

Q4.list any two participants in capital market.

Ans. 1.Financial institutions 2. Banks

     Q5.what are the instruments of money market?

Ans. Call money ,commercial papers and treasury bills etc.

Q6.what is the minimum amount of treasury bills?

Ans.25,000

Q7.what is the maturity period of commercial papers?

Ans. 15 to one year.

    Q8.What are the two segments of capital market?

Ans. 1. Primary market and secondry market

    Q9.What is the other name of primary market?

Ans.fresh issue market.

    Q10.What is the main function of primary market?

Ans.To facilitate the issue of new securities in the market.

11.                        Marketing Management

1.     Name the term used to describe the combination of variables chosen by a firm to prepare to its market offerings..

Ans: Marketing Mix

2.What is meant by trade mark.

Ans: a brand that is given legal protection against its use by other firm is called trademark.

2.     Name two techniques of sales promotion.

Ans:Discount, Rebate

3.     What factor changes want into demand?

Ans: Purchasing Power

4.     Which goods last long and contribute directly to the making or developing of finished goods?

Ans: Fixed Assets or Durable Goods

5.     Name the elements which are popularly known as 5P’s if marketing.

Ans: Product, Promotion, Price, Place, Physical Distribution

6.     Which goods are of unique character and buyer identifies with them?

Ans: Speciality Goods.

7.     Give some innovative ideas of getting information about the trends/demand pattern in market.

Ans: Market Research

8.     Sony Ltd. Introduced a television set with new features in the market at a high price but when the same features used by other electronic companies in their television sets then the prices of Sony Ltd’s television sets was reduced by the company. Mention the name of strategy the company is following.

Ans: Price Skimming

9.     What is the focal point of decision making in the organizing pursuing marketing concept?

Ans: Satisfaction of Consumers Need.

10. What gives shape to the organisational structure?

Ans: Span Of management.

Chapter 12     Consumer Protection

Q.    1. What are two major activities of Bureau of Indian Standard Act?

Ans – (1) Formation of quality standard of goods.

            (2) Certification of goods through B`s.

Q .2. Name the ministry which introduced eco mark.

Ans- Ministry of environment and forest.

Q.  3. Name the quarterly journal published by Government of  India on consumer awareness.

Ans- UpbkhoktaJagran.

4.     Which consumer right gives the business firm freedom to set up their own consumer service and grievance cell?

Ans: Right to be heard.

5.     Ahmed wants to buy an iron. As an aware customer how can he be sure about the quality of iron?

Ans: Through ISI mark on the iron.

6.     Mohit filed a case against ‘Domestic Cooling ltd.’ in the ‘District Forum’, but was not satisfied with the orders of the District Forum. Where can he appeal further against the decisions of District Forum?

Ans: Mohit can further appeal against the decision of District Forum in the ‘State Commission’ within 30 days.

7.     Ram wants to buy ghee. How can he check the quality of product?

Ans: Through ‘AGMARK’ symbol.

8.     Amrit filed a case against ‘Volvo Ltd.’ in the ‘State Commission’. But he was not satisfied with the orders of the ‘State Commission’. Name the authority to which he can appeal against the decisions of ‘State Commission’.

Ans: Amrit can further appeal in ‘National Commission’.

9.     Can a consumer file complaint in consumer court without having cash memo?

Ans: No, without cash memo he cannot file a complaint. Cash memo is the proof of the transaction.

10.            Name any two consumer rights.

Ans: (i) Right to Safety (ii) Right to Choice.