BUSINESS STUDIES CLASS XII - VBQs

VALUE BASED QUESTIONS

XII B.ST.

Unit -1 Nature and significance of Management

Q.1 A Cloth manufacturer distributes its defective product at free of cost (after getting them repaired from NariNiketan at lower cost) to orphanage. Which values are being attested in thissolution?

Ans: Care for children and women.

Q.2 An organization has production, purchase, marketing, finance and human resource

departments. All of them working together to achieve organizational goals. From your point ofview which value which value is reflected here?

Ans:Feeling of team spirit, unity, respect for each other.

Q.3 A manufacturer of fridge has used new technology in place of using harmful gases, which donot cause air pollution. Which value being followed here?

Ans:Care for nature, society, consumers.

Q.4 A production manager has directed his employees to put/throw different types of wastes likepapers, plastics & chemicals in the respective earmarked dustbins. By this which value he wantto inculcate among his employees?

Ans:value of not to use plastic, respect for nature.

Q.5 An industrial unit, working in a backward area opens schools for education at nominal costfor the children of its employees and local people. By this act which value is promoted here?

Ans: To avoid illiteracy, free education.

Q.6 A factory established in a residential locality, uses machines creating heavy noise while   running. Factory Manager always ready to provide financial help to local people. Due to noise pollution student can’t study properly and residence can’t sleep/work properly. The owners also know it. Which values are affected here?

Ans:dishonesty, unfair, unjustified activities.

Q.7 A famous doctor charges high for consultation from his patients and refuses to treat the

poor patients without consultation charges. He also pays attention to the medical representatives and agents of Pharma co. he takes gifts and commission also. In your view, is it professional behavior of doctor? Does he follow the code of conduct of doctor?

Ans No it is not a professional behaviour. he doesnot follow the code of conduct.

Q.8 Management of Global Ltd. Fulfils all its objectives and the organization is able to work effectively and efficiently. It is using environment friendly methods of production and disposing off the waste material either by recycling it or using the same for landfill in

such a manner that the aquatic life is not disturbed. Thus it also provides employment

opportunities to the disadvantaged sections of the society.

a) Identify the objective of management of Global Ltd. Which it wants to fulfill by

doing the above activities.

b) State any two other objectives that the management of Global Ltd. Should fulfil.

c) Identify any two values which management of Global Ltd. Can communicate

through fulfilling the objectives as stated in part (b)

d) Identify any two values which Global Ltd desires to emphasise through its above

stated activities.

Ans a) Social objective

b) i) Organisational objective. Ii) Personal objective.

c) i) Opportunity for Growth ii) Harmony among the employees of the

organization.

d) i) Waste management: By using the waste material for recycling & landfill.

ii) Responsibility towards disadvantaged sections of society. By providing

employment opportunities to the disadvantaged sections of the society.

Q.9 Unique Ltd. is engaged in manufacturing electrical appliances. The company has been

facing lot of problems for the last few months because of chaos between two departments i.e. Production department and sales department. Sales department blames production Department for delayed productions. However, production department blames sales Department for poor sales. The force that integrates the two departments is missing.

a) Identify the missing force in the above case and list its two characteristics.

b) List any two values which can be cultivated among the employees by using the force identified in (a) above.

Ans: A) Co ordination.

- Integrates group efforts.

- Ensures unity of action.

b)i) cooperation – By integrating all group efforts.

ii) Unity: By ensuring that all activities aim at accomplishments of organizational goals.

Q.10 A.R. Rehman is the first Indian to win Oscar award for his composition `Jai Ho’. His composition of music is unique and different as he has used the singing notes in a manner that is entirely his own interpretation.

Like A.R. Rehman, `Nandan’ General Manager in Sea Ltd, uses his knowledge of

management in a unique and different manner and all the employees working under his guidance are happy and satisfied. He rewards the employees who come to office on time.

a) Identify the nature of management highlighted above.

b) State two other ways in which nature of management can be explained.

Ans:dynamic in nature, management is an art and science.

2.Principles of Management

1.     An employee receives command from more than one boss at a time. Which principle of management is violated here also one value which is violated here?

Ans:- Principle of unity of command and 

2.     A co gives higher remuneration male employees in comparision to female employees. Which values are violated here ?

Ans:- Equity, human value.

3.     A co. gives the responsibilities to his employees but at the same time gives no authority. Which values are violated here? Name any one.

Ans:- professional value.

4.     A manager has created such a working environment that employees very frequently leave the organization and joins another co. with less payment. Which values are violated here?

Ans:- organizational value, social value.

5.     A co. does not divide the work according to merit of the employees. Which values are violated here?

Ans:- Honesty, social value.

6.     A manager does not follow the Gang Plank and he believes that all information should pass in proper channel and it should never be violated even in the case of urgency. Which values are violated here? Name any one.

Ans:- Democratic value.

7.     A manager does not believe in the principle of ‘Harmony not discord’. He is of the opinion clash among the workers benefit the manager. Which values are violated here? Name any one.

Ans:- organizational values.

8.     Inefficient employees of a co. protest the implementation of differential piece rate wage payment system. Which values are violated by them here?

Ans:- honesty, hard work.

9.     Employees of an organization does not believe in the principle of cooperation not individualism. Which values are violated here?

Ans:- Cooperation, brotherhood, team spirit, etc.

10.                        A manager of a co. does not promote rational and scientific thinking among the employees for his personal benefit. Which values are violated here? Name any one.

Ans:- Organisatonal value.

3. BUSINESS ENVIRONMENT

1Q. Mr. Prashant Gupta is the owner and manager of a grocery store. He attended a Management seminar. The topic was on globalisation and impact of technology onBusiness. He was shocked by many television ads and mailers to see different Opportunities available on the internet for his expansion. To upgrade the technology in his Business outside the city and he feels internet does not have any application to the retail Industry. What should Mr. Prasanth do to avoid any negative impact of the changes in Business environment? By adopting technological environment what values Mr. Prasanth can exhibit in his business?

Ans Responsibility to use resources

·        Care for his customers

·        Adaptability

·        Commitment to serve the stakeholders in a better manner.

2. Decline in interest rates on housing loans declared by RBI. Name the component of business environment. What values we inculcated by this component of business Environment?

Context: Economic environment

Values:

·        Rising standard of living.

·        Economic development.

·        Distribution of wealth.

·        Encouragement of middle class sections.

3. ‘Alcohol beverages are prohibited to be advertised on media’. Which component of general environment prohibits advertise? What values are boosted by the government?

·        Welfare of the family/society

·        Protection, care for the society

·        Reduction of prevalent social evil

·        Abiding the law.

4. The government restricted the use of LPG cylinders to only nine per family per year.Name the dimension of business environment highlighted in the above. Explain the dimension. What is the value hereby elicited by the government?

Economic Environment

·        Encouraging the use of alternate resources.

·        Economically usage of commodities

·        Proper utilisation of scarce resources

·        To be conscious to live within limited budget of available commodities

5. ‘Demand for reservation in jobs for minorities’. Identify the type of dimension of businessenvironment. State the values promoted in the above case.

Social Environment

·        Preferences to minority section

·        Improve their standard of living

·        Being considerate

·        Equality

6. Male CEOs are most preferred for all type of organization. Don’t you think female executive need to have a fair chance? If so give valuable suggestions.

Ans: Women empowerment.Equality,Recognising the talent..

7.In recent times theGovt. Has increased the prices of diesel and LPG. Which value is being overlooked here?

ANS: Concern for society.

8.After the change in Government Policies, foreign companies like coca-cola has prohibited to work in India. These steps of the government have boosted which values?

ANS: motivation to local and domestic company, national development

4.PLANNING

Q1. The CEO of XYZ Ltd. an automobile enterprise dreams of his company becoming the best Player in future, for which he sets the objectives, forecasts the future and develops various Courses of action.

i) Identify the management function which is highlighted here.

ii) What are the various values the CEO is striving to achieve?

Answers:

i) Planning is the Management function

ii) The values the above mentioned paragraph highlight are:

a) Hard work helps individuals to turn their dreams into reality

b) Initiative, confidence, commitment

Q2. What values does planning emphasize by reducing wasteful activities and establishing Standards?

Answer:

i) Social responsibility

ii) Empathy, Harmony

iii) Motivation, Cooperation

Q3. “Planning is a mental exercise”. What human value is being emphasized?

Answer:

Adaptability,team spirit, sense of judgement.

Q4. “Planning reduces creativity”. What value is violated in this statement?

Answer:

Initiative,Motivation, Confidence in subordinates.

Q5. What values does the Manager practice by revising the plan?

Answer:

Adoptability and Adaptability.

Q6. If rules are flexible and different for different people what values are being violated?

Answer:

Equity, discipline and orderliness.

Q7.Which quality of employee is restricted  by the  act of planning?

Ans: Creativity,Intiativeness

Q8. Removal of mobile towers from residential area is being planned by the government to promote which value?

Ans: Social responsibility, Awarness for public health

Q9.Government is planning to construct a warehouse in remote area to store necessary goods. So as to make them available even at the time o f bad weather regularly  .Which values are being considered here to be achieved by the government?

Ans: social welfare, increase the time utility

Q10. In order to reduce the cost, an organization is planning to reduce the charities to the social and religious institution. Which value will be affected by the decisions?

Ans: Ignorance of social welfare,

5.ORGANISING

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. Incharge of working machine division and AC’s division will be female and disabled person respectively. Which values have been considered here?

Ans) 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.

 5. The Informal Organization is used primarily for spreading rumours .Its existence cannot be removed .What values should be imbibed to make the Informal Organization effective

and useful?

(a) Mutual understanding.

(b) Empathy.

(c) Caring.

6. An Organization should allocate work to employees who are best suited for the job. In

practice it is not so, most business organizations are dominated by fresh engineers, Bschool

graduates. Experience persons are not given preference in the present scenario.

What values are missing in these kinds of job allocation? Give suggestions.

(a) Recognition

(b) Respect for seniority.

7. A manager, no matter how capable he / she is, cannot manage to do every task on his /herown. Effective delegation reduces his/her workload .Though work is delegated he/she isstill accountable .

(i) Why is accountability absolute?

(ii) What values does accountability bring in?

(ii) (a) Responsibility

(b) Answerability.

(c) Cooperation

.

8. A lot is spoken about decentralization and its merits but in the walk of life this had led to

a lot of scandals. What values should be followed in order to avoid such scandals.

(a) Honesty

(b) Team

(C)unity.

6. STAFFING

Q1.Ramya, a sales manager in a mineral water distribution company is getting less salary than male employees even though she sales more than the target allotted to her only since she belongs to a minority community.

Which values have been affected here?

Ans Value of social integrity and values of equity before law is being violated here.

Q2. Mr. Parmar, has applied for the post of clerk in an organization by submitting false certificate of class 10 and he also give bribe to the appointing authority for the selection and he finally been selected.

Which value has been affected here?

Ans The values of trustworthiness and honesty and social opportunity for the deserving candidate for the said post have been violated here.

Q3. A personnel manager while selecting new employees appoints only that person who fulfills his personal requirement directly or indirectly. Which values are violated here?

Ans i) Promotion to nepotism.

ii) Instigation to corruption.

iii) Selection of inefficient employees.

      iv) Dissatisfaction in efficient members

Q4. In an organization the female employees are getting promotion late as compared to male employees. Which value is missing here?

Ans i) Not obeying the right of equality.

ii) Less importance to women employees

Q5. An employee has been terminated due to a small mistake without hearing him, while the other one was not terminated on the same mistake. Which value has been neglected here?

Ans i) Biasness

ii)Biased Behaviour.

iii) Misuse of rights.

iv) Insecurity and groupism in employees.

Q6. An automobile Company runs a factory in a backward area. It has opened a training center to train the people. Which value has been kept in mind here?

Ans  i) Development of Backward areas.

ii) Helpful in availing trained employees.

iii) Increase in productivity and boosting the morale of employees.

iv) Increase in employment opportunities

Q7. An organization places an advertisement for employment mentioning some terms there in. those terms is not followed during selection of employee. Which values are ignored here?

Ans i) Violating the rules and conditions.

ii) False advertisement.

Q8. A production manager pays less than the minimum wages and gets their signatures on minimum wages. Which values are not being followed by him?

Ans i) Disobeying the law by not giving minimum wages.

ii) To take signature on minimum wages is fraud.

iii) Exploitation of workers.

Q9. Mr. Balwant, a Sr. Manager in a public sector bank usually comes late in the bank premises even after many times getting warning from the Branch Manager, he always does not follow the instruction given by the Branch Manager who is the superior authority to him.

Which values has been affected with the act of Mr. Balwant?

Ans The value of Punctuality, Consistency and right conduct has been affected here.

.

Q10. Miss Ambily is the Human Recourse Manager in a Multi-National Company. She has a great responsibility on her shoulder of deciding the employees to be promoted. Being honest she performs her tasks in a truthful manner but due to too much pressure from the superior authority she also have to promote those peoples also who are under the most favourate list of the Managing Director, Mr. Amit.

Which values has been affected by the act of Mr. Amit?

Ans Mr. Amit is not playing a positive role towards the organization. And by his this act the values of Honesty towards growth of the organization and the hard work of the other employees has been ignored here.

7.DIRECTING

1.     A manager instead of using different financial and non- financial incentives punishes his subordinates. Which values are violated by him? Name any one.

Ans:- human value.

2.     A manager is planning to promote to various vacant managerial posts from instead of appointing from outside. Which values are adopted by him here? Name any one.

Ans:- Professional value.

3.     A manager visits an employee to show condolence at the demise of the employee’s father. Which values are shown by him?

Ans:- Human and social value.

4.     A manager joining hands with Prime Minister Modi’s call of Swachhata Abhiyan himself dust his cabin and asked all his subordinates to do the same. Which values are shown by him? Name any one.

Ans:- Self motivation value.

5.     A co. introduces Best Incentive Award with an extra promotion to motivate his employees. Which values are followed by him? Name any one.

Ans:- Professional value.

6.     A co. has planned to introduce the scheme of coparsnership. Which values are followed by him. Name any one.

Ans:- Motivational value.

7.     A  manager adopts the policy of democratic leadership style and opposes autocratic leadership style. Which values are shown by him.

Ans:- Democratic value.

8.     A supervisor himself do not follow the same rules which he expect from his employee to maintain discipline. Which values are followed by him?

Ans:- professional value, self discipline.

9.     A manager does not recommend an efficient employee for Best incentive Award although he deserve it because he has some grudge against him. Which values are violated by him?

Ans:- Honesty and social value.        

10.                        A director of a co. expect his decisions should be fulfilled at any cost. And he never understands the problems of his employees. Which values are violated by him? Name any one.

Ans:- Democratic value.

8. CONTROLLING

               Q1.In controlling process , standards were set according to the efficiency of the average employee. Which value has been kept in mind while setting the standards?

Ans Motivation , efficiency and effectiveness

Q2.Name the values which are in the form of qualitative standards.

Ans  loyalty, Team spirit

Q3.In company employees achieved quantitative standard but could not attain qualitative standards. Which values have been ignored here?

Ans Quality of the goods , respect for discipline.

Q4. A manager observes that an old employee is not doing her required work. Manager scolds  him rudely without asking him the reasons. In your view how the manager would have behaved and which values he should have kept in his mind?

Ans Respect for elders. Empathy.

Q5A supervisor observes that during working hours some employees were busy in gossiping instead of working. In spite of instructions they did not start working  .When the matter was brought to the notice of management the union threatened to go on strike. In your view was the behaviour of employee and the union was justified?

Ans: No,

6. An effective system of controlling discourages dishonesty among employees. What values

does this statement imply?

Answer: Orderliness, Discipline and Honesty

Q7. The employees in an organization are aware of the standards against which their

performance will be compared. Highlight the significance of controlling function.

Identify the value highlighted in this statement.

Answer:Motivation

Q8. Give examples of values which are in the form of qualitative standards.

Answer: Loyalty, Team spirit, Cooperation

Q9. What value does the Manager establish through a proper measurement of actual Performance?

Answer:  Objectivity and Impartial

Q10. What is Management by Exception? Identify the values promoted by it.

Answer:  i) Use of resource

Unit –IX    Financial Management

Q.1 In a company profits are heavy and in future less scope of expansion exists. Company has decided to pay a very less dividends. Here which value and whose interest have been affected?

Ans:no fair return, investors are affected.

Q.2 A company wants to show higher profit and for this:

a) Depreciation was charged at lower rates.

b) Goodwill, Patents, Trademarks and other intangible assets were shown at higher value.

Explain the value which is affected here?

Ans:honesty, fairness, legal transaction.

Q.3 A wholesaler of onion comes to know that due to less production the prices of onion will increase heavily. He store the onion and during rising prices. Earn heavy profits by selling the stored onion. From the earned profits he provides some money for social activities also. In this situation which values he affects here.

Ans social injustice and unfair trade practices.

Q.4 What is the aim of financial management? State the value that should be kept in mind while setting the objectives of financial management. (1)

 Ans:Honesty

Social Responsibility

Commitment

Q.5 Why are Investment decisions crucial for a business?

 What values are considered while taking this decision? (3)

Ans: Utmost care/commitment, Accountability.

Q.6 Financial Planning is essentially the preparation of a financial blueprint of organizations’future operations. The objective of financial planning is to ensure that enough funds are available at right time.

i) What will happen if enough funds are not available at the right time? (4)

ii) State any two importance of financial planning.

iii) Identify the value which is being emphasized in financial planning.

Ans: Coordination, Unity, Responsibility, Reliable, Decisiveness.

Q.7 Investors generally view increase in dividend declared as a positive note, and stock prices react positively to it but on the other side Companies Act places certain restrictions on payouts as dividend.

These restrictions are adhered to while declaring the dividend. (4)

i) Identify the factor affecting dividend decision under which investor considers the increase individend as a good news.

ii) Identify the value which is being emphasized by the Companies Act in placing certain restriction on payouts as dividends.

Ans: Safety

iii) Identify the value which is being emphasized when company declares dividend as per the provisions of the Companies Act.

Ans: Respect for Law

Q.8 A company is planning to expand. The ROI is below the industry average. Cash flow positionis also not too good. (3)

i) Suggest the source of finance it must choose to go ahead with its plan.

ii) If they choose to raise funds by Debt what value is lacking in it?

 Ans: Honesty, Transparency.

10. FINANCIAL MARKETS

Q1. A public company used the private placement of shares as capital subscription. Whose interest has been ignored here?

Ans: here, interest of small investors are ignored.

1.     As we see there is an enhancement of equity cult among the society due to online system and dematerialization .which values are enhanced by increasing equity cult.

Ans: following values are enhanced :

1.     Fair dealing

2.     Transparency

3.     Honesty

4.     Responsible behavior

5.     Professional ethicsetc.

2.     A ltd. Invited applications for 50,000 shares and received application for Rs. 35,000 shares. The board of directors issued the shares to all the applicants.

a.     Name the term which must be considered before allotment.

b.     Which value is being overlooked here?

Ans.  (1)  minimum subscription

            (2) values overlooked: (a) corporate governance

                                      (b) equality in allotment.

           4.            NSE is a screen based trading system. Which values are behind establishing NSE:

Ans. (1) fair trading

            (2.) justice to investors

            5. stock market provide a  plateform for buying and selling of securities. It provide safety , liquidity etc. Name the values which stock exchange strives to fulfil through its functions.

Ans. (1)   Equity cult      (2) Transparency     (3) security     (4) fairness

6.     The directors of ANKS ltd. Decided  to declare bonus share to equity shareholders in its AGM. One of their director took the advantage of this information and purchased the shares from the market and after some times he got benefit of capital gains by selling them to the market.

1.     Name the benefit he had taken from internal information.

2.     Who can make a check on such type of practices.

3.     Identify any four values that the company should have adhered to in order to gain the trust of investors.  

Ans.   1. Insider  trading.

            2. SEBI

           3. values are  (i) integrity    (ii) Transparency   (iii)  Honesty  (iv) professional ethics

   7.  A ltd. Invited applications for 50,000 shares and received application for Rs. 60,000        

shares. The board of directors issued the shares pro-rata basis

c.      Name the term, which must be considered before allotment.

d.     Which values are being  followedherehere?

Ans.  (1)  minimum subscription

            (2) values followed     (a) corporate governance

                                      (b) equality in allotment.

                                      (c) compliance to provisions of companies Act. 1956

                                      (d) professional ethics

          8.  RDAN Ltd. Has already have  issued shares  and it  Issued fresh issue to the selected clients without informing its existing shareholders .

Ans: (a) Right issue

(a) Values ignored:    1. Ignored the rights of equity shareholders

               2. violation of legal provisions

                        3. unfair  trade practices

                                4. dilution of control of equity shareholders.

          9. Sigma ltd. Issued 10,000 shares of RS. 10 each.  Company used its money received without having minimum subscription. Which values are here ignored.

              Ans. Values ignored are :- 1. Compliance to companies Act, 1956

                                         2. corporate governance

          10. A  well known blue chip company  have joined the hands with some bulls and bears  and pass on Company’s information to sensitise the prices of the shares  to make private gains. It came in the notice of stock market and SEBI initiated the action.

          (a) give the term used for the above situation .

          (b) what values are overlooked by the directors here.

          Ans. (a) price rigging

(a) Values overlooked: (i) Statutory regulations (ii) faith of shareholders (iii) transparency

          (iv) fair trade practices.

11. MARKETING

1. A tea producer uses such packets/things for packing tea, which can be used even after consuming the tea inside for other purposes. In this which values are being affected by him?

2.  A cosmetics manufacturing co. claims in advertisement that its face cream improves the face complexion. On using it was found incorrect. Here which values are being ignored?

3. A commercial unit uses rocks, trees, electric poles, historical movements and walls to advertise its products. This advertising policy shows which faults of the company?

4. A soft drink manufacturing co. uses dangerous stunts in the advertisements claiming that its drinks make the user fearless and stronger. In your view what could be the bad effects of this? How it can be stopped?

5. One manufacturer of electronic product produces such products which need special care while using it. But the co. has not given the instructions to consumers. If you are the manager of that co. what steps you would take?

6. A company uses same promotional schemes like buy one get one free, free samples, free gifts and so on to boost the sales of its products and to earn higher profits. These results in unnecessary hike in the prices of the products. In your opinion, is this policy in the interest of society?

7. A company mafucturing Toothpaste made attractive level for their product but did not mentioned it s date of manufacture, ingredients. State the values that have been ignored by the company.

8. Sundar, a salesman, in a readymade garment showroom made false claims about a court in the kids segment about no need to get drycleaner. In order to sell it to a consumer a higher price. The customer bought it but after washing it the court got sunk. What vales was lacking in respect of Sundar?

9. It is one of the elements of market mix which contains one of the most important decisions that a marketer has to take to promote sales. This decision was taken by Mr.  Mukund, Marketing manager of Intel Ltd. which facilitated the customers in product identification and hence ensured quality. It also built up their confidence and help in increasing their level of satisfaction. Apart from this, they provide educational scholarships for poor children in the society. Identify the element of marketing mix.

Name any two values being emphasized by ensuring quality products for customers and by running an orphanage home.

10. Raj and Company is manufacturing cosmetics. They decided to launch a new range of herbal products. As they are in a hurry, they have tested the products on rates only. The necessary information is missing on the package. The management also plans to launch a new factory in a tribal area where the required products are easily available and the labour –men, woman and children are available for work at low wages in the absence of developments opportunities and schools.

(i)                            Which value do you find disturbing the above para?

(ii)                         Will the decision to install a new unit in a tribal area help society? Highlight the social values involved in his decision.

ANSWERS:-

1.      i) optimum utilization of resources

ii) Environment protection

iii) Increasing the cost by using boxes/containers.

2.      i) Confusing the consumers by misleading advertisements

ii) Toying with the health of public

3.     i) Harming the environment

ii) Damaging the natural beauty

iii) Damaging the historical monuments

iv) Providing information to the people

4.      i) Endangering the life on imitation by children

ii) Unfair advertising practices

5.     i) Providing information for using the products

ii) Consumer awareness/educating the consumers

6.     i) Not in the interest of society, unnecessary increase in cost.

ii) Increasing extravagancy

iii) Increasing sales volume

iv) Achieving the objectives of the business.

7.     Legal responsibility, Honesty, Responsible behaviour, Concern for others has been violated here.

8.     Honesty, providing wrong information, giving exaggerated claims.

9.     Respect, Humanity, Social responsibility.

(i) Cruelty towards animals and no respect for law (Child labour)

 (ii) Balanced regional development: By launching a new

 Factory in the tribal area.

(iii) Social responsibility

(iv) Women empowerment

12    CONSUMER PROTECTION

Q.1.   . A consumer has the freedom to choose from a variety of products at competitive prices. The marketers should offer a wide variety of products in terms of quality, brand, price, size etc. Ramya (a class X student) was in need of a geometry box. She went to the nearest shop and the shopkeeper showed her a variety of geometry boxes at different prices. She selected a box and paid Rs.300, the maximum retail price of the box, and took the cash memo for the same.

Name the consumer right exercised by Ramya.

Name the values which are emphasized in the above case.

Q.2.   A company engaged in selling spice, claims about purity in its advertisement but in laboratories after examination, the spices were found adult rated. Which values are being violated here?

Q.3.   A Pharmacy Co. doesn’t provide information for the expiry date on the packet of his drug. This manufacture violates which value?

Q.4.   A manufacture of food products uses bad quality material for packing the product resulting in spoiling goods the reaching the consumers. Which value is being ignored here?

Q.5.   A toy manufacturing co. uses low quality plastics and harmful colors which affects the health the children. Which value is being ignored here?

Q.6.   Mohan purchased a press for Rs.1000/-. On using it he found it defective. The seller did not respond to the complaint. In your view what should be done by seller as well as Mohan?

Q.7.   A patient didn’t read carefully the instructions on the pack of the drug. On using it his health deteriorated further instead of improvement. If you are in his place than what you would do?

Q8. Under the Consumer Protection Act, every consumer has a right to be protected against goods and services which are hazardous to life and health. Alpha Ltd. manufactures and sells substandard refrigerators. As these appliances did not confirm to the safety norms and a mark assuring quality specification was missing. Cases were noticed where these

substandard refrigerators had caused serious injury to many consumers.

 Suggest any two precautions to be taken by the consumer while purchasing the refrigerator.

 Which values do you find disturbing in the above paragraph?

9. The owner of a restaurant is charging Rs.40 for a bottle of juice from a customer whereas the maximum retail price of the bottle of juice is Rs.17. One of the consumers (a member of NGO) has objected to this but the owner continues to do this malpractice.

Identify any two social values that the traders must follow?

10. Prakash purchased an ISI Mark electric induction stove from ‘Rama electricals. While using he found that it was not working properly. He approached the seller and complained for the same. The seller satisfies Prakash by saying that he will ask the  manufacturer to replace this induction stove.

Name the consumer right Prakash exercised in the above situation.

 Name the value which is followed in the above case.

ANSWER:-

Q1.    Respect towards the consumers – by providing a wide variety   of brands.

 Honesty, Loyalty, Sincerity

Q2.    i) Harmful for health

ii) Adulteration is violation of law

iii) False information to consumers.

Q3.    i) Endangering the lives

ii) Violation of law

iii) False information to consumers

Q4.    i) Deterioration of quality of products.

ii) Reduction in quantity of the products

iii) Bad effects on health of consumers

Q5.    i) Bad effects on the health of children

ii) Polluting the environment

iii) Violation of rules/regulations

Q6.    i) The sellers should get the iron of Mohan repaired.

ii) Rights of Mohan should not be violated

iii) Mohan should file complaint to the company against the seller.

iv) If not heard than Mohan should move to consumer court.

Q7.    i) To read the instructions and Information carefully.

ii) To consult the chemist / doctor.

Q8. Social responsibility: Goods which are hazardous should

 not to be provided to the consumers.

 Honesty – By not providing the complete information about the product to the consumers.

          Safety

Q9.    Honesty – The manufacturer should be honest in all his

 dealings.

          Respect towards consumers – By providing all information about the product which the consumer intends to buy including its ingredients, date of manufacture, expiry, price quantity etc.

 Integrity

10. Honesty, Respect, .Loyalty, Faithfulness, Trust.