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AHSEC CLASS 12 BUSINESS STUDIES
2012' Question Paper Solution
Full Marks : 100
Time Three hours
Figure in the margin indicate full mark for the question
1. Answer the following Questions.
1 x 10 = 10
(a) Name the book authored by Henry Fayol on Management.
Ans. The book authored by Henry Fayol on management is "Industrial and General Administrative."
(b) Which principle of management promotes team spirit?
Ans. The principle Esprit de Corps promotes team spirit.
(c) Which policy of the Government has moved India towards globalization?
Ans. 1991 industrial policy
(d) Mention one responsibility of a consumer under the Consumer Protection.
Act. Ans. To provide adequate information to the seller
(e) Which function of Management is considered as the base of all other functions?
Ans. Planning
(f) Name the process concerned with searching for prospective candidates for various jobs in an organisation.
Ans. Recruitment
(g) Give any two benefits of training to the organisation.
Ans: (i) Training enables employees to acquire knowledge and skill for more responsible job.
(ii) Training helps employees to build-up self confidence and leads to their personality
Ans. The two benefits of training are
development.
(h) Name the technique of control by which all operations are planned in advance in the form of budget. 1
Ans. Budgetary Control.
(i) Ahmed wants to buy iron. As an aware customer, how can he be sure about the quality of iron?
Ans. He will check ISI mark
(j) Which Act aims at controlling production supply and distribution of essential commodities.
Ans. Essential Commodities Act, 1955.
Answer the following questions. 3x5
2. Mr. Hazarika has retired as the Managing Director of a manufacturing company. At what level of management was he working? Write two basic functions at that level?
Ans. Mr. Hazarika was working at the top level of management. The basic function of top level management are -
(i) Setting the overall objectives of the enterprises.
(ii) Formulation of basic policies, plans, programmes, budgets etc. for achieving the main objective of the organisation
3. Explain three importance financial planning.
Ans. The importance of financial planning are__
(i) It helps in proper utilisation of the various sources of finance - Funds are required for short, medium and long term. Long term funds are generally, contributed by shareholders and debenture holder, medium term funds by financial institutions and short term funds by commercial banks and public etc. Financial planning is necessary for finding out appropriate sources at appropriate times and for appropriate amounts.
(ii) It helps in preparing the disbursement plan - It helps in allocating the funds for different activities on the basis of priority.
(iii) It co-ordinates various business functions - By providing clear objectives, policies and procedure financial administration establish co-ordination between various functional areas like production, marketing, purchasing etc.
4. Explain three factors affecting the requirement of working capital.
Ans. The various factors affecting the requirement of working capital are_
(i) Nature and size of business- The working capital requirement is highly influenced by the nature of business. Trading and finance firms do not need much to invent in fixed assets but require a large sum of money to be invested in working capital.
(ii) Production cycle - The process of converting raw materials into finished goods is called production cycle. The longer is the production cycle period, the larger will be the firms working capital requirement.
(iii) Price level change - An price increases more working capital will be required for the same magnitude of current assets. The need of working capital may further increase due to growth resulting from price level change.
5.Give three distinctions between money market and capital market.
Ans:-
6. Briefly explain any three method of sales promotion.
Ans. The methods of sales promotion are -
(i) Discounts - This refers to reduction of certain percentage of price from list price for a limited period of time. The discounts induce the customer to buy and to buy more.
(ii) Refunds-This refers to refund or part of price paid by customer on presenting the proof of purchase.
(iii) Instant Draw - It includes the offers like scretch a card and win instantly.
Answer the following questions. 4x5
7. "Management is considered as an art or a science or both." Elucidate the statement.
Ans. Management as a science qualifies following features -
(i) Systematised body of knowledge-Management is a systematise body of knowledge built by management thinkers and practitioners
(ii) Universally accepted principles - The principle of management - Principles of specialisation, division of labour, unity of command, unity of direction etc. are accepted everywhere. This universal applicability makes management as a science Management as an art qualifies following features_
(i) Personalised application - In the field of art theoritical knowledge is not enough. Every artist must have personal skill and creativity to apply that knowledge. In management also personal skill and creativity is necessary.
(ii) Bared on practice and creativity - The artist requires regular practice of art to become more perfect. Some way manager also have to practice in a regular way to improve his managerial skill and efficieny It has been seen in the above discussion that management in both an art as well as science. Since science and art are contemporary to each other, so management has the element of both.
AHSEC CLASS 12 Business Studies 2012 Questions Paper Solution.
8.How does social and technological environment influence the working of a business.
Ans. Social environment-Social environment consist of all the social and cultural forces within which firms operate. It consist of social set up, cultural, moral, ethical values of the society, standard of living of people, tastes, preferences, education level etc. Social and cultural values exercise a significant influence on business. For e.g. There are certain occasions like Diwali, Christmas, Eid, ete when people make maximum purchase of sweets, clothes and other goods. Technological environment Technology has shaped the face of human life faster. Technological environment relates to scientific improvements and innovation proving never and better methods of production and techniques of operating business For eg.-TV, Home shopping etc are the result of technological changes.
9. Distinguish between functional structure and divisional structure on the basis of Suitability.
Ans:-
10. Discuss four elements of directing.
Ans. The four elements of directing are -
(i)Supervision - The supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organisation.
(ii) Motivation-Motivation can be defined as stimulating, inspiring and inducing the employees to perform to their best capacity.
(iii) Leadership-Leadership is a process of influencing the behaviour of people at work towards the achievement of specified goal.
(iv) Communication - Communication can be defined as transmission or exchange of ideas, views, message, information or instruction between two or more persons by different means.
11. State any four rights of a consumer under the consumer protection Act.
Ans. Right of consumer
(i) Right to safety - The consumer have a right to be protected against any goods and services that are hazardous to the life as well as property to the consumer.
(ii) Right to choose - The consumer have the right to choose from available goods, access to variety of goods and services at competitive price.
(iii) Right to hear - The consumer have the right to be heard and to be assured that consumers interest will receive due consideration at the appropriate forums.
(iv) Right to Education - The consumer have also right to their education regarding information about the consumer product in the market and for the proper functioning of the legal formalities, knowledge at legal remedy etc.
HS 2nd Year 2012 Business Studies Questions Paper Solution AHSEC
Answer the following question. 6x5
12. Discuss the techniques of scientific management.
Ans. The techniques of scientific management are
(i) Functional Foremanship-Under functional foremanship technique Taylor suggested under each department there must be some functional expert to supervise, guide and instruct the worker Taylor stressed on minimum eight specialists functional experts to supervise and give orders to workers.
(ii) Method study-The method study technique of scientific management is conducted to find out the one best method of performing the job which keeps production cost minimum and maximum use of resources of the organisation.
(iii) Different piece wage system - The scientific technique of differential piece rate system emphasises on paying different rate of wage for efficient and inefficient employees.
(iv) Mental Revolution - The scientific technique of mental revolution is conducted for__
(a) change in mental attitude of workers.
(b) Co-operation between workers and management.
(v) Fatigue study - This technique of scientific management is conducted to find out.
(a) The frequency of Rest intervals.
(b) The duration of rest intervals.
(c) The No. of Rest intervals.
13. Explain the steps involved in the planning process.
Ans. (i) Selling up of the business-In planning function manager begin with setting up of business because all the policies, procedures and methods are framed for achieving objectives only.
(ii) Developing premises - Premises refers to making assumption regarding future Premises are the base on which plans are made.
(iii) Listing the various alternatives-After setting up of objectives the manager make a list of alternatives through which the organisation can achieve its objectives
(iv) Evaluation of alternative cources - After making the list of various alternatives along with the assumption, the manager starts evaluating each and every alternative and notes down the positive and negative aspect of every alternative.
(v) Selecting an alternative - The best alternative is selected But as such there is no mathematical formula to select the best alternatives. The most ideal plan is most feasible, profitable and with least negative consequences.
(vi) Implement the plan - For implementing the plans into action, the manager starts communicating the plans to all employees very clearly because the employees actually have to carry on the activities according to specification of plans.
(vii) Follow up-The managers monitor the plan carefully while it is implemented The monitoring of plan is very important because it helps to verify whether the conditions and predictions assumed in plan are holding true in present situation or not.
14. Explain any five objectives of Securities and Exchange Board of India (SEBI).
Ans. The objectives of SEBI are
(i)To regulate the activities of stock exchange.
(ii) To protect the rights of investors and ensuring safety to their investment.
(iii) To regulate and develop a code of conduct for intermediaries such as brokers, underwriters etc.
(iv) To prevent fraudulent and malpractices by having balance between self regulation of business and its statutory regulations.
(v) Promote the fair dealings in the security market.
AHSEC CLASS 12 Business Studies 2012 Questions Paper Solution.
15. Discuss in brief any five function of stock exchange.
Ans. The various function of stock exchange are -
(i) Economic Barometer - A stock exchange is a reliable barometer to measure the economic condition of a country. Every major change in country and economy is reflected in the prices of shares. The rise or fall in the share prices indicates the boom or recession cycle of the economy.
(ii) Pricing of securities - The stock market helps to value the securities on the basis of demand and supply factors. The securities of profitable and growth oriented. companies are valued higher as there is more demand for such securities.
(iii) Contribute to economic growth-In stock exchange securities of various companies are bought and sold. This process of reinvestment and disinvestment helps to invest in most productive investment proposal and leads to economic growth.
(iv) Spreading of Equity Cult-Stock exchange encourage people to invest in ownership securities by regulating new issues, better trading practices and by educating public about investment.
(v) Providing scope for speculation - To ensure liquidity and demand of supply of securities the stock exchange permits healthy speculation of securities.
16. Explain on five objective of management.
Ans. The managerial objectives of an organisation can be classified into three major categories
(i) Organisational objectives
(ii) Social objectives
(iii) Personal objectives.
(i) Organisational objectives of management are
(a) Survival - The basic purpose of every organisation is to survive and exist in the competitive market.
(b) Profit-The most important objective of every organisation is earning adequate amount of profit.
(ii) Social objective - The main social objective of organisation are -
(a) Supply of quality products at reasonable prices.
(b) Generation of economic wealth
(c) Generation of employment opportunities
(d) Financial suppar to community.
(ii) Personal objectives - The main personal
(a) Competitive salary
(b) Personal growth and development
(c) Social recognition etc.
17. What is motivation? Explain its importance in business?
Ans. Motivation can be defined as stimulating inspiring and inducing the employees to perform to their best capacity.
Importance of motivation__
(i) Motivation improves performance level of employees - The motivation improves the efficiency level of employees which means the employees start performing the job to the best of ability with maximum wastage of time and resources.
(ii) Helps in achieving organisational goal-The motivated employees always try to achieve the organisational goal and contribute their best effort for the realisation of organisational goal
(iii) Motivation creates supportive work environment-In motivation the relation between superior and subordinate are always improved. When the employees get their need satisfied or get the recognition and respect in the organisation then they always offer a supportive hand to superiors.
15. Explain the term "authority', 'responsibility and accountability".
Ans. "Authority means power to take decision To carry on the responsibility every employee need to have some authority. So, when managers are passing their responsibilities to the subordinates, they also pass some of the authority to the subordinates.
Responsibility means the work assigned to an individual. It includes all the physical and mental activities to be performed by the employees at a particular job position. The process of delegation begins when manager passes on some his responsibilities to his subordinates, which means responsibility can be delegated.
Accountability" means subordinates will be answerable for the non-completion of the task. The accountability cannot be delegated.
19. What are the various steps involved in staffing process.
Ans:-The various steps involved in staffing process are__
1.Estimating man power requirement-Staffing process begins with the estimation of manpower requirement which means finding out number and type of employees needed by the organisation in future.
2.Recruitment-It refers to the process of inducing the people to apply for the job in the organisation. After assessing the number and type of employees required, the manager tries that more and more people should apply for the job so that the organisation can get more choice and select better candidates.
3. Selection - It refers to choosing the most suitable candidate to fill the vacant job position. The selection is done through a process, which involves test, interviews etc.
4.Placement and Orientation-Placement refers to occupy ing of post by the candidate for which he is selected. After selection the employees is given appointment letter and is asked to occupy the vacant job position.
HS 2nd Year 2012 Business Studies Questions Paper Solution AHSEC
Answer the following question. 6x7
20. What is meant by recruitment? Explain any four external sources of recruitment.
Ans. Recruitment refers to the process of inducing the people to apply for the job in the organisation.
Four external sources of recruitment are -
(i) Advertising-A new trend of external recruitment is telecast on various channels regarding vacant job position. They telecast the requirement of the job along with the qualification necessary to apply.
(ii) Placement agencies - Placement agencies provide nation wide sevice of matching demand and supply of work force. These agencies invite the bio data and record from various job seekers and send them to suitable clients.
(iii) Campus recruitment - Sometimes the senior managers of the organisation visit various professional colleges, technical institutes to get fresh graduates or the people with the latest technological know how
(iv) Web publishing-In internet there are certain website specially designed provide information regarding job seekers and companies which have vacant job position These websites can be visited by job seekers as well as companies. The common website are Naukri.com, Monster.com etc
HS 2nd Year 2012 Business Studies Questions Paper Solution AHSEC
21. State two features of advertising and mention four services rendered by it to consumers.
Ans. Two features of advertising are__
(i) Paid farm - The sponsor has to pay for advertising, he has to bear a cost to communicate with customers.
(ii) Impersonality-There is no face to face contact between customer and advertiser. It is an impersonal communication.
Services of advertising to consumers__
1.Enhances customer satisfaction - Customer feel more assured about quality and feel more comfortable if sponsors claim these benefits in advertising Undetermines social values-Advertising is a sort of day dreaming for the people Through its medium people get information about new product.
3. Economy-Advertising is considered economical because it reaches masses and if are calculate cost per customer it is very low or nominal.
4. Expressiveness - Advertising provides enough opportunities to marketeers and customers to dramatise the message with the help of drawings, colours, pictures music etc.
22. Define marketing. Discuss four element of marketing mix.
Ans. Marketing is that phase of business activity through which the human wants are satisfied by the exchange of goods and services.
The four elements of marketing mix are__
(i) Product - The product element of the marketing mix signifies the tangible or intangible product offered to the customer which is the satisfier of the need Products can be classified an constimer goods and industrial goods.
(ii) Price Price is the value which a buyer passes on to the seller in lieu of the product or service provided. Price is the crucial element of marketing mix because customer is very sensitive to this element.
(iii) Place - Place refers to the set of decisions that need to be taken in order to make the product available. Place element is a process by which the goods are transferred from the place of production to the place of consumption.
(iv) Promotion-It refers to all the decisions related to promotions of sales of products and services. The important decision of promotion mix are selecting advertising media, selecting promotional techniques, public relations etc.
23. Explain any six important function of marketing.
Ans. The function of marketing are__
(i) Gathering and Analysing Market Information The marketing begins with the research conducted by the marketer. The marketer conducts research to find out the needs of the customer.
(ii) Market Planning - After conducting marketing research, the marketer has to plan the steps necessary to achieve marketing objectives under market planning.
(iii) Standardisation and grading - Standardisation means maintaining quality standards to achieve uniformity in the product. Grading means classifying the product on some bases. The bases of classification can be size, quality etc.
(iv) Branding-Branding means giving a special name to the product. Companies may decide to sell the product in company's name or they may decide a special brand name for their product.
(v) Pricing Price means the money which a customer has to buy a product or sevice. It is most crucial element of marketing as customer is highly price sensitive.
(vi) Physical distribution-Another important function of marketing manager is making plans regarding distribution of goods and services. Physical distribution includes decision like choice of channel of distribution, storage, warehouse etc.
24. Describe the process of entrepreneurship development.
Ans. The following process of strategy for entrepreneurship development may be suggested..
(i) Public entrepreneurship should remain confined only to these industries and sector where private enterprises individual or corporate is generally not attracted.
(ii) All possible effort is made seriously for the development of an industrial culture. (iii) There is need to develop management education and industrial training in modern times, management education is being viewed as an effective supplement.
(iv) The development of backward regions constitute a new challenge.
(v) Economic development, administration by the state should be improved and made more effective so that economic policies may fully achieve their objective in the overall interest of the economy administration would go a long way in ensuring and increasing supply of entrepreneurship.
(vi) Greater emphasis should be laid on search from within. The emphasis be put on research relating to process and enhancement of the volume of indegenous technique.
25. Describe the function of an entrepreneur in relation to economic development.
Ans. (i) Contribution to GDP - Entrepreneurship leads to increase in GDP. By organising production it results in increase in the value of GDP directly.
(ii) Capital formation - Entrepreneurs use their own savings and encourage their friends, relatives to save and invest in business. By offering various investment opportunities entrepreneurs encourage general public to invest in companies.
(iii) Employment Generation - Entrepreneurship helps the people to be self employed as those who are not professionally qualified, they can earn their livelihood by setting an enterprise.
26. Clarify the meaning of 'intrapreneur' 'entrepreneurship' and 'enterprise'.
Ans. Intrapreneur - Intrapreneur is completely depending on the entrepreneur for everything in the organisation. He cannot take any decision by himself.
Entrepreneurship - Entrepreneurship, land, labour and capital are four major factors of production and the term entrepreneur was first introduced by an economist who defined entrepreneur as an agent who buys means of production at certain prices in order to sell the products at some uncertain price.
Enterprise - Enterprises are mainly known as the Business Enterprises. An entrepreneur performs all the necessary functions which are essential from the point of view of expansion of the enterprise.
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