Business Studies: 2019: CBSE: [Outside Delhi]: Set - I
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Q1
Various input resources are required by management to complete a task effectively and efficiently. Name any two.
Marks:1View AnswerAnswer:
Availability of funds and Human resources are some of the input resources required by management to complete a task effectively and efficiently.
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Q2
Define ‘Organising’.
Marks:1View AnswerAnswer:
Organising is a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired goals.
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Q3
What is meant by ‘Delegation’?
Marks:1View AnswerAnswer:
Delegation refers to the process of getting things done by others by giving them reasonable authority and responsibility. The process of delegation involves three essential elements i.e. authority, responsibility and accountability.
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Q4
All business firms would like to increase their sales and earn profits to be successful. All managers dream of these. To turn their dreams into reality, managers need to work hard in thinking about the future, in making business predictions and achieving targets.
The above lines describe one of the functions of management. Identify and define this function.Marks:1View AnswerAnswer:
The above lines describe Planning function of management.
Planning refers to the process of setting objectives and targets for a given time period and formulating an action plan to achieve them effectively and efficiently. -
Q5
Differentiate between ‘Democratic’ and ‘Laissez-faire’ style of leadership.
Marks:1View AnswerAnswer:
On the basis of Focus
Democratic leadership is a group centered leadership as subordinates are encouraged to participate in decision making whereas Laissez-faire leadership is subordinate centered leadership as it gives complete freedom to subordinates to take decisions.
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Q6
Differentiate between ‘Formal Communication’ and ‘Informal Communication’ on the basis of ‘Meaning’.
Marks:1View AnswerAnswer:
On the basis of Meaning
Formal communication refers to structured authority relationship formed as a result of company rules and regulations whereas Informal communication refers social relationships arising out of interaction among employees.
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Q7
How does ‘Cost of Debt’ affect the capital structure of an enterprise?
Marks:1View AnswerAnswer:
Cost of debt: If a company is able to borrow debt at lower rates of interest, then it will use more funds acquired through debt as it will cost less for the company and if debt is available at higher rates, then companies will use less of debt.
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Q8
How does ‘Cost of Equity’ affect the capital structure of an enterprise?
Marks:1View AnswerAnswer:
Cost of equity: Shareholders expect return from their investment, which also has a corresponding risk associated with it. If a firm prefers to use more debt, then financial risk of equity shareholders also increases along with increase in their rate of return. However, use of debt above a certain limit can increase the cost of equity and lead to fall in share prices, despite the increase in EPS.
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Q9
‘XY Ltd.’ is registered with an authorised capital of ₹10 crore. The paid-up capital of the company is ₹6 crore. The company was facing shortage of funds. The management of the company decided to raise funds by issue of 1,00,000 equity shares of ₹100 each. The issue was fully subscribed. After this it was realised that the funds raised were in excess of the actual requirement.
Identify and define the concept which was not considered by the company before deciding the amount of funds to be raised.Marks:1View AnswerAnswer:
The concept of financial planning was not considered by the company before deciding the amount of funds to be raised.
Financial planning refers to the process of estimating the fund requirement of a business and specifying the sources of funds. It enables management to estimate fund requirement, in terms of its quantum and timing and ensures availability of enough funds at the right time.
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Q10
Vivek purchased a bike from Sarnath Automobiles with a written guarantee to repair or replace, if necessary, within six months or 5,000 kms of distance travelled whichever is earlier. After covering the distance of 400 kms in two months, the gears of the bike started giving problems. Vivek took the bike to the dealer who refused to listen to his complaint. He was confused about what he should do.
Suggest the rights that Vivek may exercise in the above case.Marks:1View AnswerAnswer:
Vivek may exercise following rights:
- Right to seek redressal
- Right to be heard
