Business Studies 2006 CBSE [ All India ] Set I
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Q1
Explain in brief ‘Management as a Process’. Marks:2View AnswerAnswer:
Management requires a series of operations to achieve the desired goals of the enterprise. These operations are planning, organising, staffing, directing and controlling. In order to achieve the best possible results of the business, these functions should be performed systematically in a proper sequence. This whole procedure of following a set pattern of activities makes Management a process.
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Q2
What is meant by ‘Financial Management’? Marks:2View AnswerAnswer:
Financial management refers to the forecasting of financial requirements, raising of necessary funds and controlling over utilisation of available finance. According to Guthmann and Dougall "Financial management is the activity concerned with the planning, raising, controlling and administering of funds used in business". -
Q3
Explain in brief the term ‘Price Mix’ as an element of ‘Marketing Mix’. Marks:2View AnswerAnswer:
Price Mix – It refers to the price charged for the product or service. Price stands for the exchange value of the product, i.e., what the customer has to pay. -
Q4
The Production Manager of Bharat Ltd. instructs a sales man to go slow in selling the product, whereas the Marketing Manager is insisting on fast selling to achieve the target. Which principle of management is being violated in this case? State any one of the consequences of violation of this principle. Marks:2View AnswerAnswer:
Here the Unity of command Principle is being violated As a result of the violation of this principle there will be a state of confusion for the salesman regarding whose instructions should be followed. Therefore it may be difficult to carry out the order of two persons when they are contradictory. -
Q5
Explain in brief the term ‘Leadership’ as an element of ‘Directing’. Marks:2View AnswerAnswer:
Leadership may be defined as the art of influencing the people so that they will strive willingly towards the realisation of common goals. In other words, leadership refers to the equality of the behaviour of the individuals whereby they guide people and their activities in organised efforts. -
Q6
Explain in brief any three advantages of formal communication. Marks:3View AnswerAnswer:
The advantages of Formal communication are : Formal Communication is systematic and ensures orderly flow of the information. This type of commuication provides support to managerial authority of superiors over subordinates. The source of communication can be easily located.
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Q7
Name the types of formal communication in which two Departmental Heads communicate with each other. Give any two reasons why this type of communication is required. Marks:3View AnswerAnswer:
Such type of formal communication is known as Horizontal or Lateral Communication. Flow of communication between the persons of two departments is termed as diagonal communication. This type of communication is required because of the following reasons: (i)
Delay is prevented. (ii) It is very fast and useful communication.
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Q8
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 and explain it in brief. Marks:3View AnswerAnswer:
OUT OF SYLLABUS -
Q9
Explain in brief any three functions of packaging. Marks:3View AnswerAnswer:
Three functions of packaging are:
1. Protection: Packaging reduces the risk of spoilage, wastage, leakage, meltage, evaporation etc. in the process of transportation and storage.
2. Identification: It also furnishes useful information regarding the product, i.e., contents, its weight, size, price, usage and necessary instructions regarding storing and using product. 3. Sales Tool: Packaging is the best advertising medium. It establishes a product image. A good package induces customers to purchase the product. -
Q10
Explain in brief any three causes of ‘Under-capitalisation’. Marks:3View AnswerAnswer:
Causes of ‘Under Capitalisation’ are:
1. Conflict between labour and management : Higher rate of earning encourages workers to demand higher increase in the wages. Management does not meet their demand fully, so the conflict between labour and management occurs.
2. Manipulation in the value of shares : The management indulges in the manipulation of the value of shares and exploits shareholders.
3. Higher rate of taxation : Earning at higher rates attracts the government which levies taxes at higher rates.
