[Gauhati University BCom 1st Semester FYUGP Business Organisation and Management Solved Question Paper 2022, GU BCom Business Organisation and Management Solved Question Paper 2022]
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2022
COMMERCE (Regular)
Paper: COM-RC-1026
(Business Organisation and Management)
Full Marks: 80, Time: Three hours
The figures in the margin indicate full marks for the questions.
1. Answer the following questions as directed: (any ten) (1 × 10 = 10)
(a) The process of converting the message into communication symbol is known as (Choose the correct answer)
(i) encoding (ii) decoding (iii) transmission (iv) recoding
Answer: (i) encoding
(b) Informal communication is characterised by which of the following distinctiveness? (Choose the correct answer)
(i) Task-oriented (ii) People-oriented (iii) Position-oriented (iv) Structure-oriented
Answer: (ii) People-oriented
(c) Motivation is a stimulation of mind under the management function of (Choose the correct answer)
(i) directing (ii) organising (iii) controlling (iv) co-ordinating
Answer: (i) directing
(d) Control exercised by lower level managers is (Choose the correct answer)
(i) strategic level control (ii) tactical level control (iii) operating level control (iv) None of the above
Answer: (iii) operating level control
(e) Which one of the following human needs of Maslow's theory also finds recognition in the motivational theory of McClelland? (Choose the correct answer)
(i) Psychological need (ii) Security need (iii) Social need (iv) Ego need
Answer: (iv) Ego need
(f) Which of the following roles of a manager is important to defeat grapevine? (Choose the correct answer)
(i) Management role (ii) Interpersonal role (iii) Informational role (iv) Decisional role
Answer: (iii) Informational role
(g) Providing information to top management by financial manager is his/her (Choose the correct answer)
(i) recurring function (ii) Nonrecurring function (iii) routine function (iv) advisory function
Answer: (iv) advisory function
(h) Which of the following is a part of financial decision-making? (Choose the correct answer)
(i) Investment decision (ii) Financial decision (iii) Dividend decision (iv) All of the above
Answer: (iv) All of the above
(i) Which of the following is not included in demographic segmentation of market? (Choose the correct answer)
(i) Gender (ii) Age (iii) Education (iv) Culture
Answer: (iv) Culture
(j) Who introduced the concept of 'marketing mix'? (Choose the correct answer)
(i) William J. Stanton (ii) Philip Kotler (iii) Henry L. Hemen (iv) N. H. Borden
Answer: (iv) N. H. Borden
(k) 'Mobile hand-set' is an example of (Choose the correct answer)
(i) perishable goods (ii) non-durable goods (iii) durable goods (iv) None of the above
Answer: (iii) durable goods
(l) Fast food outlets like KFC is an example of which marketing technique? (Choose the correct answer)
(i) Product franchising (ii) Business-format franchising (iii) E-commerce (iv) Retailing
Answer: (ii) Business-format franchising
(m) Marketing begins and ends with ________.
Answer: customer
(n) The sole trader's liability for the debts of the business is ________.
Answer: unlimited
(o) The Indian Partnership Act, _______ which governs the formation and management of partnership organisation in India.
Answer: 1932
(p) The maximum number of partners must be _______ for a firm carrying on banking business.
Answer: ten (10)
(q) A partnership is the result of an agreement which can be oral or written.
Answer: True
(r) A shareholder is an agent of the company.
Answer: False
(s) Joint stock company's shares are easily transferable.
Answer: True
(t) Planning involves an intellectual exercise.
Answer: True
2. Answer the following questions briefly: (any five) (2 × 5 = 10)
(a) What is service sector?
Answer: The service sector is the part of the economy that provides services rather than goods, like banking, education, transport, and healthcare.
(b) What is globalisation?
Answer: Globalisation is the process of countries, businesses, and people becoming connected and interdependent through trade, technology, and communication worldwide.
(c) What do you mean by outsourcing?
Answer: Outsourcing is the practice of hiring an external company or individual to perform tasks or services instead of doing them within the organisation.
(d) Define sole trading business.
Answer: A sole trading business is a type of business owned and managed by a single person who is fully responsible for its profits and losses.
(e) Write a note on a joint Hindu family firm.
Answer: A joint Hindu family firm is a business owned by members of a Hindu undivided family, managed by the eldest male member called the Karta, and liability is shared among family members.
(f) What is matrix organisation?
Answer: A matrix organisation is a structure where employees report to more than one manager, usually both a functional manager and a project manager.
(g) What is delegation of authority?
Answer: Delegation of authority is the process by which a manager assigns responsibility and grants authority to subordinates to perform specific tasks.
(h) Define leadership.
Answer: Leadership is the ability of a person to guide, influence, and motivate others to achieve organisational goals.
(i) What is SEBI?
Answer: SEBI (Securities and Exchange Board of India) is the regulatory body that protects investors and regulates the securities market in India.
(j) What is E-commerce?
Answer: E-commerce is the buying and selling of goods and services over the internet.
3. Write short answers to any four of the following: (5 × 4 = 20)
(a) Write a note on social responsibility of business.
Answer: Social responsibility of business means that businesses should not only focus on earning profits but also consider the impact of their activities on society and the environment. It includes responsibilities towards employees, customers, shareholders, the community, and the environment. For example, providing fair wages, maintaining safe working conditions, reducing pollution, supporting education and health initiatives, and acting ethically in business practices are all part of social responsibility. By fulfilling social responsibilities, businesses build a positive image, gain customer trust, and contribute to sustainable development.
(b) Write the features of franchising.
Answer: Franchising is a method of doing business where a franchisor allows a franchisee to use its brand name, products, and business model. The main features include: the franchisee pays fees or royalties to the franchisor; the franchisor provides training, support, and guidance; the franchisee operates the business under the franchisor’s standards; it helps in rapid business expansion with limited investment; it reduces the risk for both parties; and it maintains brand consistency across locations.
(c) Write the importance of delegation of authority.
Answer: Delegation of authority is important in management because it allows managers to assign responsibilities to subordinates along with the authority to complete tasks. This reduces the manager’s workload and improves efficiency. It encourages employee development, responsibility, and decision-making skills. Delegation also speeds up decision-making, ensures better use of resources, and creates accountability. In large organisations, proper delegation is essential for smooth functioning and achieving organisational goals effectively.
(d) What are the problems associated with small enterprises? Explain.
Answer: Small enterprises face several problems that affect their growth and survival. These include lack of sufficient capital, which limits investment in machinery and technology; difficulty in accessing skilled labour; limited marketing and distribution networks; competition from larger firms; and managerial inefficiency due to lack of expertise. Other issues include technological obsolescence, difficulty in obtaining credit, and regulatory challenges. These problems can restrict production, profitability, and expansion of small enterprises.
(e) State the merits and demerits of equity share.
Answer:
Merits of Equity Share:
Provides permanent capital for the company without any repayment obligation.
Shareholders have voting rights, allowing them to participate in decision-making.
Dividends are paid only when the company earns profit, reducing financial burden.
Helps in raising large amounts of capital from the public.
Demerits of Equity Share:
Dividend is not guaranteed and depends on the company’s profitability.
Ownership is diluted with more shareholders, which may affect control.
Shareholders can influence company policies, sometimes causing conflicts.
Issuing equity shares may involve higher flotation costs.
(f) Write a note on 'Make in India' Movement.
Answer: The 'Make in India' movement was launched by the Government of India in 2014 to encourage companies to manufacture their products in India and promote India as a global manufacturing hub. Its main objectives are to increase employment opportunities, attract foreign direct investment (FDI), boost innovation, and enhance the country’s industrial growth. The initiative focuses on sectors like automobiles, electronics, textiles, defence, and information technology. 'Make in India' also aims to improve infrastructure, ease of doing business, and promote skill development, making India competitive in global markets.
(g) State the limitations of planning.
Answer: Planning is an essential management function, but it has certain limitations:
Uncertainty: Future conditions may change, making plans less effective.
Rigidity: Strict plans may reduce flexibility and adaptability to unforeseen events.
Time-consuming: Planning requires significant time and effort, delaying immediate action.
Costly: Developing detailed plans may involve high administrative costs.
Resistance: Employees may resist plans imposed from top management.
Incomplete information: Decisions are often made with limited or imperfect information, which can affect the accuracy of plans.
(h) Briefly explain the Herzberg two-factor theory.
Answer: Herzberg’s two-factor theory, also called Motivation-Hygiene Theory, explains employee motivation in the workplace. According to this theory:
Hygiene factors (such as salary, working conditions, company policies, and job security) do not motivate employees but prevent dissatisfaction. If these are absent or inadequate, employees become unhappy.
Motivating factors (such as recognition, achievement, responsibility, and growth opportunities) actively encourage employees to perform better and increase job satisfaction.
Herzberg concluded that improving hygiene factors prevents dissatisfaction, while enhancing motivating factors increases motivation and productivity.
4. Write long answers to any four of the following: (10 × 4 = 40)
(a) Explain the steps of need in A. H. Maslow's need hierarchy theory of motivation. Also enumerate the merits and limitations of the theory.
Answer: A. H. Maslow's Need Hierarchy Theory explains human motivation through a hierarchy of needs. The steps of needs are:
Physiological Needs: Basic survival needs such as food, water, shelter, and clothing. These are the most fundamental and must be satisfied first.
Safety Needs: Protection from physical and economic harm, including job security, health, and safe working conditions.
Social Needs: The need for love, affection, friendship, and belongingness in groups like family, peers, and colleagues.
Esteem Needs: The need for respect, recognition, self-esteem, and status. It motivates individuals to achieve and gain appreciation.
Self-Actualization Needs: The highest level, involving personal growth, creativity, achieving potential, and self-fulfillment.
Merits of Maslow’s Theory:
Provides a clear understanding of human motivation.
Helps managers identify employee needs and design motivation strategies.
Recognises that needs are hierarchical and can influence behaviour.
Limitations of Maslow’s Theory:
The hierarchy may not apply to all individuals or cultures.
People may pursue higher-level needs even if lower-level needs are not fully satisfied.
Difficult to measure and quantify needs in practice.
The theory is more theoretical and lacks empirical evidence in all contexts.
(b) Describe various barriers to communication. What measures would you suggest to overcome such barriers?
Answer: Communication is essential in management, but various barriers can hinder it. The main barriers are:
Physical Barriers: Distance, noise, faulty equipment, or office layout can prevent effective communication.
Language Barriers: Differences in language, jargon, or use of complex terms can cause misunderstanding.
Emotional Barriers: Personal feelings, stress, and lack of confidence can obstruct clear communication.
Perceptual Barriers: Different viewpoints, assumptions, or biases can distort the message.
Cultural Barriers: Differences in culture, values, beliefs, or traditions can lead to miscommunication.
Organisational Barriers: Poor structure, lack of clarity in authority, or excessive formalisation can delay or distort communication.
Measures to Overcome Barriers:
Use simple and clear language.
Ensure proper channels of communication are followed.
Provide feedback to confirm understanding.
Build good interpersonal relationships and trust.
Offer training in communication skills.
Use appropriate technology and minimise physical and technical obstacles.
(c) Explain four basic principles of decision-making. Also state the approaches in decision-making.
Answer: Four Basic Principles of Decision-Making:
Principle of Clarity of Objectives: Decision-making should be guided by clear objectives. The purpose of the decision must be well understood to choose the best alternative.
Principle of Accuracy of Information: Decisions should be based on accurate, complete, and relevant information to reduce errors and improve outcomes.
Principle of Rationality: Decisions should be logical and reasonable. Managers must analyse alternatives, evaluate pros and cons, and select the option that best serves the organisation’s goals.
Principle of Timeliness: Decisions must be made at the right time. Delays can reduce effectiveness, while hasty decisions without proper analysis can lead to mistakes.
Approaches in Decision-Making:
Intuitive Approach: Based on personal judgment, experience, and gut feeling rather than formal analysis.
Rational Approach: Involves systematic analysis of problems, evaluation of alternatives, and logical reasoning.
Participative Approach: Involves seeking input from team members or subordinates before making decisions.
Creative Approach: Encourages innovative solutions and thinking outside the box to solve problems.
(d) Explain the various bases of departmentation. Also state the benefits of departmentation.
Answer: Bases of Departmentation: Departmentation is the process of dividing an organisation into units or departments. The common bases include:
Functional Departmentation: Grouping activities based on functions like production, marketing, finance, and HR.
Product Departmentation: Departments are formed based on different products or product lines.
Geographical Departmentation: Departments are created according to regions, countries, or territories.
Customer Departmentation: Organising departments according to different types of customers or clients.
Process Departmentation: Based on the workflow or production process stages.
Benefits of Departmentation:
Simplifies management by dividing work into manageable units.
Clarifies roles, responsibilities, and authority in each department.
Improves coordination within departments and across the organisation.
Promotes specialization, efficiency, and expertise in specific areas.
Helps in better planning, control, and decision-making.
(e) Define partnership. Explain its major advantages and disadvantages.
Answer: Partnership is a form of business organisation in which two or more persons agree to carry on a business together, share profits and losses, and contribute capital, skills, or both. It is governed by the Indian Partnership Act, 1932.
Advantages of Partnership:
Easy Formation: Partnership can be formed quickly with a simple agreement.
Combined Resources: Partners contribute capital, skills, and experience, which strengthens the business.
Shared Responsibility: Workload, risk, and management responsibilities are shared among partners.
Flexibility: Partners can adapt easily to changes and make decisions quickly.
Better Decision Making: Multiple perspectives of partners improve business decisions.
Disadvantages of Partnership:
Unlimited Liability: Partners are personally liable for business debts.
Conflict Among Partners: Differences in opinion or interests can lead to disputes.
Limited Life: Partnership may dissolve if a partner dies, retires, or leaves.
Profit Sharing: Profits must be shared among partners, reducing individual gain.
Difficulty in Raising Capital: Limited to partners’ contributions and borrowing capacity.
(f) What is sole proprietorship? State its features. Explain the advantages and limitations of this form of business organisation.
Answer: Sole Proprietorship is a type of business owned, managed, and controlled by a single person who bears the full risk and enjoys all the profits.
Features of Sole Proprietorship:
Owned and controlled by one person.
Single owner bears unlimited liability.
Profits belong solely to the owner.
Simple to start and operate.
Decision-making is quick as there is no need for consultation.
Advantages:
Easy to Form: Requires minimal legal formalities.
Full Control: Owner has complete authority in decision-making.
Direct Motivation: Owner enjoys all profits, which motivates performance.
Confidentiality: Business affairs remain private.
Flexibility: Can adapt quickly to changes in the market.
Limitations:
Unlimited Liability: Owner’s personal assets are at risk if business fails.
Limited Capital: Raising funds depends only on the owner’s resources.
Limited Expertise: Owner may lack knowledge or skills in all areas.
Limited Life: Business may cease with the death or incapacity of the owner.
Heavy Burden: Owner bears all responsibility and workload alone.
(g) Define human resource management. Explain its functions.
Answer: Human Resource Management (HRM) is the process of recruiting, selecting, training, developing, and managing an organisation’s employees to achieve both individual and organisational goals. HRM ensures that the organisation has the right people, with the right skills, in the right positions.
Functions of Human Resource Management:
Manpower Planning: Forecasting the organisation’s future human resource needs and planning recruitment accordingly.
Recruitment and Selection: Attracting and selecting suitable candidates to fill job vacancies.
Training and Development: Providing employees with the necessary skills, knowledge, and growth opportunities.
Performance Appraisal: Evaluating employee performance to improve efficiency and productivity.
Compensation and Benefits: Designing and managing salaries, wages, incentives, and other benefits.
Employee Welfare: Ensuring safe working conditions, health, and well-being of employees.
Maintaining Industrial Relations: Managing relationships between management and employees, resolving disputes, and ensuring smooth operations.
Motivation: Encouraging employees to perform effectively and achieve organisational objectives.
HRM plays a crucial role in improving employee satisfaction, organisational efficiency, and overall productivity.
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