BUSINESS STUDIES CLASS XII - HOTs

HOTS   XII B.ST.

1.     NATURE AND SIGNIFICANCE OF MANAGEMENT

Q1. If a manager is able to achieve the production of 5000unit but at a higher cost. Is he efficient or effective.?

Ans. He is effective as he achieves the target on time but he is inefficient as he incurred higher cost.

Q2. Your father is working in an MNC as chief operating officer. At what management he is working.

Ans. Top level management

Q3. Mohan has retired from the post of a foreman in a factory. At what level of management in he working.

Ans. Operational level

Q4. Name the process by which a manager synchronises the activities of different department .

Ans Coordination

Q5. Your father wants you to do M.B.A before joining family business. What does this show about the nature of management.

Ans. Management is on the path of becoming a profession.

Q6. Dominos Pizza’s keep introducing new variety of pizza in its menu, which characteristic of management is highlighted in this .

Ans Management is dynamic.

Q7. Management is the life giving element in every business without it the resources and shall never become production.

Ans Yes

Q8. Name the process of designing and maintaining an environment in the which individual work together in group efficiently accomplishing selected aims.

Ans Management

Q9. An organization is a collection of diverse individual with different needs .Which characteristics in this statement.

Ans Management is a group activity.

Q10. The task of management is to make people work towards achieving the organizational goals by making their strength effective and their weaknesses irrelevant.

Ans Management of people

         LESSON 2      PRINCIPLES OF MANAGEMENT

1.       Which technique of management emphasizes on rewarding with enhanced remuneration to efficient employees?

Ans:- Piece rate wage payment system.

2.       Name any two companies that have successfully implemented simplification and standardization in their organization.

Ans:-  Nokia and Microsoft.

3.      Which principle of management emphasises on ‘We’ instead of ‘I’ in common conversation.

Ans:- Espirit de corps.

4.      Which principle of Fayol overlook the principle of equity?

Ans:-Differential piece wage plan.

5.      Upon which principle of Fayol functional foremanship of Taylor is based?

Ans:- Division of labour.

6.       Give any one reason why the principles of management are called contingent.

Ans:- Because it depends upon circumstance.

7.      Name the Device which permits direct communication between employers working at same level.

Ans:- Gang plank

8.      Identify the techniques of Taylor which bring uniformity and standardization in work.

Ans:- Technique of standardization.

9.      Which technique of Taylor insist in using most optimum way of doing a job.

Ans:- Method study.

10.  Fayol points out the danger and cost of unnecessary labour turnover in one of his principles of management. Name that principle.

Ans:- Stability of tenure.

3.Business environment

Q1 list the major impacts of new industrial policy

Ans  liberalization, globalization, privatization.

Q 2The finance minister reduced the repo rate to overcome recession. This is related to which dimension of business environment?

AnsEconomic environment.

Q3If new products are introduced in the market by new technique which type of environment is indicated by it?

AnsTechnological environment.

Q4Name the term under which reduction in tax rates and lifting of unneccesary control over the economy was undertaken.

Ansliberalization.

Q5 What do you mean by first mover advantage?

AnsIt means to understand and scan the opportunities at very first and get benefit of that.

Q6Give one example of economic environment.

AnsMonetary and fiscal policy of the government.

Q7.Which environment describes characteristics of the society in which the organization exists?

Ans:   Social Environment

Q8.Which element / dimension of business environment involve improvement and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business?                                               

Ans:  Social Environment

Q9. Which environment prohibits the advertisement of alcoholic beverages?      

Ans:  legal Environment

Q10. Banking sector reforms have led to easier credit terms and better services. This is an example of a key component of the “Business Environment “name this component?

Ans:  Economic Environment

4.PLANNING

Q1 A Company needs a detailed plan for its new project- construction of new mall.  What type of plan is it?

AnsProgramme.

Q2Give two examples of limitations of planning which are beyond the control of an organization.

AnsNatural calamity, change in taste.

Q3A company wants to introduce a new product. What type of plan it should prepare?

AnsStrategy.

Q4At which level of management more time is consumed on planning as compared to other levels?

AnsTop level.

Q5Mcdonalds co. does not give its franchise to any other company which is running food business. This is related to which type of plan?

AnsRelated to policy of the company.

Q 6Which function of management is considered as base for all other functions of management?

AnsPlanning.

Q7In which step of planning process the planners make predictions and assumptions regarding future?

AnsSetting up of planning premises for all the alternatives,  predictions are made.

Q8 Which plan suggests actions and non-actions of employees?

AnsRules.

Q9Which plan helps in analyzing competitor’s policy?

AnsStrategy.

Q10. The planning function of management is conducted at which level of management?

Ans:  At all Three Levels.

5: ORGANISING

Q1. In a fashion- designing unit , following are the main function a) manufacturing b) finance C) marketing. How will you structure the organization and why? Give any two reason.

An. Functional structure

Reason 1) functional specialization

             2) avoid duplication work

Q2. The employee of Malik limited a software company, has formed a dramatic group for their recreation. Name the type of organization so formed and state it three features.

An. Informal organization

It has no definite structure, it is more flexible, it the reporting relationship are not clearly define

Q3. Delegation of authority is based on the elementary principal of work, explain.

An. The given statement is correct. No manager can perform the entire work assigned to him. Under delegation he assigns some part of work load to his subordinates along with necessary authority. Thus we can say that delegation of authority is based on the elementary principal.

Q4. Target industries are engaged in production of to product lines stationery items and cosmetic product. The directors of the company insist of adopting functional structure. Do you agree with their view point?

Ans No, I do not agree with their view point of director. The company should go for divisional

Structure as each of the two product line required different functional activity.

a) product specialization b) greater accountability, c) flexibility , d) expansion and growth.

Q5. Every organization is characterized by both centralization and decentralization do you agree with the given statement.

An. Yes , I agree with the given statement .

Discuss every organization is centralized as well as decentralized.

Q6. Can an over burdened manager take help from his subordinate? How? Explain the three important things which he should keep mind while taking such help.

As. The manager can take help from his subordinate through the process of delegation of authority. the three important thing we should kept in mined while taking such help are

a) Authority, b) responsibility, c) accountability.

Q7. Grouping similar nature jobs into larger units called departments is the second step in the process of one of the functions of management identifies the function.

An organizing.

Q8. Hindustan uni lever limited is manufacturing soap textile cosmetics .which type of organizational would suit the requirement of such organization  .

An. Divisional structure.

Q9. Distinguish between centralization and decentralization.

As hint.On the basis. A) meaning, b) suitability, c) role of subordinate.

Q10. Bajaj auto limited is manufacturing auto rickshaw. which type of organization would suit the requirement of such organization.

An. Functional structure.

6. STAFFING

1.      Why is recruitment called positive process?

Ans: Recruitment is called positive process because more and more people are invited to apply for the job.

2.      Name the concepts which involves growth of individuals in all respects?

Ans: Development.

3.      “our assets walk out of the door each evening, we have to make sure that they come back the next morning”. This statement relates to which function of management. Explain the importance of this function.

Ans: Staffing. For importance of function refer textbook.

4.      Out of human resources   management and staffing which one is wider?

Ans: Human resources   management.

5.      Name the source of recruitment in which newspapers, employment exchange, T.V., etc. are used.

Ans:External source of recruitment.

6.      Name the method of training suitable for plumbers, electricians and iron workers. Explain that method.

Ans: Apprenticeship.

For explanation refer textbook. 

7.      Which source of recruitment has the disadvantages of increase in labour turnover.

Ans: External source of recruitment.

8.      Name the method of training which facilitates easy promotion replacement or transfers.

Ans: Job rotation.

9.      Some learning opportunities are designed and delivered to improve skills and abilities  of employees whereas some others are designed to help in the growth of individuals in all respects. Identify and explain  the two concepts explained above.

Ans: The two concepts explained are:

1.      Training     2. Development

7.DIRECTING

1.      Give any two examples of perquisites.

Ans:- Car allowance and medical allowance.

2.      Direction is needed at which level of management?

Ans:- at all levels.

3.      Which leadership style is the best?

Ans:- Democratic style.

4.      In which leadership style a leader can take his decisions in his own?

Ans:- Free rein.      

5.      Name the communication barrier in which a message is understood differently due to different state of mind of sender and receiver.

Ans:- Psychological barrier.

6.      “A good leader does not wait for opportunities but creates them.” This statement is related to which quality of a good leader?

Ans.:-Initiative

7.      Name process of stimulating people to action to accomplish desired goals.

Ans:- Motivation.

8.      At which level of management function of directing is performed?

Ans:- At all level

9.      Name the kind of monetary incentive in which employees are offered company’s share at a lower price than market price.

Ans:- Co-partnership.

10.  Name the element of directing which refers to the ability of influencing people to strive willingly for mutual objectives.

Ans:- Leadership.

8.CONTROLLING

Q1. What are the two principles a manager must consider while doing with deviation effectively.

Ans   (1) Critical point control  (2)  Control by exception.

Q2.What do you mean by key result areas in the context of controlling ?

Ans  Areas  which are critical and very important for the success of an organization.

Q3.Which principle of management control is based on the belief that  an attempt to control everything may end up by controlling nothing ?

Ans           Principle of management by exception.

Q 4.     Why do employees often resist controlling process?

Ans      Their freedom gets restricted.

Q 5.     Should all deviations be controlled in an organization? Give reason.

Ans        No,   only significant deviations should be brought to the notice of management.

Q 6.     Why should standards be flexible in controlling ?

Ans     They may need some modifications due to changes taking place in business environment.

Q7.What is management control?

Ans. Measurement of accomplishment against standards.

Q8.. Which function of management ensures work accomplishment according to plans ?

Ans. Controlling

Q9..What is feedback in controlling?

Ans. Report of happening.

Q10.. What is deviation in controlling ?

Ans. Difference between actual performance and standard performance.

9. Financial management

Q. 1 Write the full form of the terms:-

a) EBIT                                               b) ROI                                                                        (1)

Ans: Earning before interest and tax, return on investment.

Q.2 State which type of capital structure (more equity based or debt based) would a company adopt when.

a) The stock market is bullish b) The stock market is bearish.                                     (1)

Ans: more debt and less equity

Q.3 Seema is a manufacture who deals in bakery products. Reena also a manufacturer deals in stainless steel ware. Based on length of operating cycle state who would require more working capital?                         (1)

Ans: Stainless steel would require more capital.

Q.4 State the foremost objective of financial management. (1)

Ans: Wealth maximisation.

Q.5 “Ploughing back of profits holds the key to success of a business enterprises”. Do you agree. Give two reasons.

Ans: Internal and cheap source of finance, no rate o return.

Q.6 Give reasons why fixed capital requirement of the electronic and computer industry are different from those of furniture industry.

Ans: Due to investment requirements, scale of operation, cash flow position, nature of business, etc.

Q.7 A decision in financial management is basically concerned about now much to raise and from which source.

Name the type of decision. Also explain two vital factors to be kept in mind while taking such decisions. (3)

Ans: Capital structuring decision.

Q.8 You are the finance manager of DO WELL INDUSTRIES LTD.. The firm has earned a profit of 100 crores. Management wants to retain the profit fully in the business without paying any dividend Advise the management on the negative impact of doing so. (Any two reasons). (3)

Ans: Disadvantages of retained earnings.

Q.9 Name the activity which essentially involves “preparation” of financial blue of an enterprise’s future operations. “Also state any two advantages of this activity. (3)

Ans: Financial planning.

Q.10 Explain giving reasons why firms with :- (4)                                                                                                              a) High debtors turnover ratio and                                                                                                                                                b) High inventory turnover ratio require lesser amount of working capital.

Ans: Due to long operating cycle, low collection period.

Due to quick production and sale, high  productivity.

Q.11 Explain with the suitable example how ‘lead time’ affects working capital requirements of a business? (4)

Q.12 Apollo Ltd, has earned a profit which is very high,. However the firm faces a short term liquidity crunch .Explain how it will affect the dividend decision which are to be taken. (4)

Ans: Factors affecting dividend decisions of a company.

Q.13 What are the condition that a company must consider before it trades on equity? (4)

Ans: Capital structure of the company, debt equity ratio.

Q.14 “Capital budgeting decisions can make or break a firms fortunes? Do you agree. Give reasons why? (four reasons)

Ans: Importance of capital budgeting decisions.

10: FINANCIAL MARKETS

1. List four major participants of money market.

Ans. 1.Commercial banks 2.RBI 3. Large corporate houses 4. NBFC

2. Money market has no physical location. Then how is trading done?

Ans. Trading is done online .

3. Differentiate between trade bills and commercial bills.

Ans. Trade bill is bill of exchange and when trade bill is accepted by bank is known as commercial bill.

4. Define primary market.

Ans. Primary market is the market where new securities are issued.

5. How do  financial market promote capital formation?

Ans. Financial markets flows the funds from savers to investors and enhances the liquidity of existing securities in the market. It leads to capital formation.

6. “ SEBIi is the watchdog of the securities .” Explain

Ans. It prohibits and controls the unfair trade practices and regulates the brokers. Thus it is the watchdog of the securities market.

7. why was  SEBI established?

Ans. To protect the  investors  interest and regulate the stock market.

8. What settlement system does the equity spot market follow?

Ans. T+2 rolling settlement i.e. trade will be settled within two days of trade date.

9. How many depositories are operating in India? Name any two

Ans. 1.NSDL  2. CDSL

10. Define dematerialization.

Ans. Electronic form of selling and buying of securities are known as dematerialization

11. MARKETING MANAGEMENT

Q.1.Which marketing philosophy give more  importance to ‘consumer welfare’ instead of consumer satisfaction?

Ans:societal marketing cocept.

Q.2.which concept of marketing suggesting that the organization earn profit through volume of production ?

Ans: Production concept.

Q.3.Name the non-paid form of communication of information about the products.

Ans: Publicity.

Q.4.Name the element of marketing which makes the product available to the target customer?

Ans: Physical distribution.

7.Which concept of Marketing suggests that the organization should earn profit through consumer satisfaction and social welfare ? (1)

Ans: Societal Concept.

8.At which level of packaging, the immediate container is referred to. (1)

Ans: Primary Packaging.

9.what is the advantage of registering trade mark

Ans: No one else can use it .if it is used it is illegal.

10.Which element of marketing mixis related with Product identification..

Ans: Product Mix – Branding.

12 CONSUMER PROTECTION

1.      Name one of the first companies in the world to actively study the influence of consumer products on the environment.

1.      Ans: Procter and Gamble.

2.      Give two examples of convenience product.

2.      Ans: (i) Bread (ii) Ice cream.

3.      Name two shopping products.

3.      Ans: (i) Car (ii) Furniture (iii) Garments.

4.      Name two techniques of sales promotion.

4.      Ans: (i) Discount (ii) Premiums.

5.      What factor changes want into demand?

5.      Ans: Money or purchasing power and willingness to spend the money.

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

6.      Ans:Capital Goods.

7.      Name the elements which are popularly known as 3 p’s if marketing.

7.      Ans:Physical Evidence, People, Process.

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

8.      Ans: Speciality goods.

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

9.      Ans:Market Survey, Market Research, On-line Research, Feedback.

10.  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. Also explain the strategy in short.

10.  Ans:The name of strategy is Price Skimming.

Under this strategy a high price is charged for an innovative product and later on the price is reduced when more marketers enter the market with same type of product.

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