Business Studies 2015 CBSE [All India] Set 2
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Q1
‘Bharat Express’ specialised in Courier Services. Its wide range of express package parcel services help business firms to make sure that goods are made available to customers at right place and at the right time.
State with reason, whether the working capital requirements of ‘Bharat Express’ will be high or low?
Marks:1View AnswerAnswer:
Bharat Express is a part of service industry where it does not need to maintain any inventory. Hence, the requirement of working capital would be low. It shall only be incurring the costs of salary, electricity, other overheads, etc. which are common to every organisation.
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Q2
‘Maruti Vega Ltd.’ entered into the market with coloured television and has introduced products like audio systems, air conditioners, mashing machines, etc. The company is not only offering the products but also handling complaints and offering after-sales services.
Identify the element of marketing-mix discussed here.
Marks:1View AnswerAnswer:
The element of marketing mix being discussed is ‘Product’.
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Q3
Himanshu purchased a new car from ‘Galaxy Motors’ for Rs. 25 lakhs. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in Sate Commission. Being not satisfied with the decision of the State Commission, after 2 months he decided to file an appeal against it.
Can Himanshu appeal against the decision of the State Commission? Give reason in support of your answer.
Marks:1View AnswerAnswer:
No, Himanshu cannot appeal againt the order of State Commission as the stipulated time frame for making the appeal before Naitonal commission is 30 days of passing the order. In this case, that time period has already passed.
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Q4
Explain, how management helps in well-being of the society?
Marks:1View AnswerAnswer:
Management helps in development of society by supplying good quality products at reasonable prices, providing employment opportunities and facilitating basic amenities like schools, hospitals, etc.
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Q5
‘Himalaya Ltd.’ is engaged in manufacturing of washing machines. The target of the organisation is to manufacture 500 machines a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure described above. Identify the type of organisation structure discussed above.
Marks:1View AnswerAnswer:
‘Functional Structure’ is being discussed above.
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Q6
How does ‘cost of equity’ affect the choice of capital structure of a company? Explain.
Marks:1View AnswerAnswer:
‘Cost of Equity’ refers to the expected rate of return on capital for assuming risk. On the other hand, cost of debt refers to the return to lenders. Cost of debt is less than cost of equity. However if a company uses more debt, the cost of equity will increase. Moreover, a high cost of equity indicates that the market views the company's future as risky. Hence, an optimum combination of equity and debt is desirable in the capital structure.
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Q7
What is meant by liberalisation'?
Marks:1View AnswerAnswer:
Liberalisation means freeing the businesses and industry from all unnecessary government controls and restrictions.
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Q8
Give the meaning of ‘Policy’ as a type of plan.
Marks:1View AnswerAnswer:
Policy is a general guideline to bring uniformity in decision making for achieving objectives. For instance, selling goods on cash basis only.
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Q9
What is meant by ‘Informal Organisation’? State it’s any two advantages
Marks:3View AnswerAnswer:
Informal Organisation is the network of social relationship that develops as a result of interaction among people at work.
Advantages of informal organisation are:
- Faster spread of Information: Spreading of information and collection of feedback, both are faster as fixed lines of communication are not followed.
- Fulfillment of social needs: It increases job satisfaction as there is sense of belongingness among employees.
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Q10
‘The stock exchange performs many vital functions in today’s commercial world.’ Explain any three such functions.
Marks:3View AnswerAnswer:
Following are three main functions of a stock exchange:
- Liquidity and marketability of existing securities: Stock exchange provides a ready and continuous market for sale and purchase of existing securities.
- Pricing of Securities: Stock exchange works by forces of demand and supply. Indices like SENSEX, NIFTY, etc. indicate day to day fluctuations in share prices.
- Safety of transactions: Stock exchange provides safety to the investment of investors. The new system of operating through Demat accounts ensures fair dealings.
