Kerala Plus Two Business Studies Question Paper March 2021 with Answers

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf March 2021 helps in understanding answer patterns.

Kerala Plus Two Business Studies Previous Year Question Paper March 2021

Time: 21/2 Hours
Total Score: 80 Marks

Answer the following questions from 1 to 45 upto a total score of 80.

Questions from 1 to 9 carry 1 score each. (9 × 1 = 9)

Question 1.
Network of social relationship among employees denote:
a) Formal organisation
b) Informal organisation
c) Formal communication
d) None
Answer:
b) Informal organisation

Question 2.
_________ refers to the number of subordinates under a supervisor’s direct control.
a) Scalar Chain
b) Span of Management
c) Gang Plank
d) All of these
Answer:
a) Span of Management/ Span of Control

Question 3.
Management is ___________ .
a) Goal oriented
b) Pervasive
c) Multidimensional
d) All of these
Answer:
d) All of these

Question 4.
Find the odd one out.
a) Speed boss
b) Gang boss
c) Manager
d) Inspector
Answer:
c) Manager

Question 5.
Measuring the ability of a person to perform a given task is ___________ .
a) Personality test
b) Trade test
c) Aptitude test
d) Interest test
Answer:
b) Trade test or c) Aptitude test

Question 6.
The process of making subordinates to act in a desired manner is _____________ .
a) Motivation
b) Supervision
c) Communication
d) None
Answer:
a) Motivation

Question 7.
___________ communication flows upwards or downwards.
a) Vertical
b) Horizontal
c) Diagonal
d) None
Answer:
a) Vertical

Question 8.
Which of the following is an example of convenience goods?
a) Newspaper
b) Jewellery
c) Television
d) All of these
Answer:
a) Newspaper

Question 9.
Write any two rights of consumers.
Answer:
(a) Right to safety
(b) Right to choose

Questions from 10 to 17 carry 2 scores each. (8 × 2 = 16)

Question 10.
What is Fatigue Study?
Answer:
Fatigue study determines the amount and frequency of rest intervals required in completing the work under standard working conditions.

Question 11.
Write two differences between capital market and money market.
Answer:

Capital Market	Money Market
1) Market deals only long term fund.	1) Market deals only shortterm fund.
2) It arranges large amount of fund.	2) it arranges small amount of fund.
3) Return is high.	3) Return is low.
4) SEBI is the market regulator.	4) RBI is the market regulator.

Question 12.
Complete the table as per hint given.

Interest rates, Inflation rates etc.	Economic environment
Customs, traditions etc.	?
Innovation in the method of production	?

Answer:
b) Customs, Traditions, etc. – Social environment
c) Innovation in the method of production – Technological environment

Question 13.
Arrange the process of organising properly.
1) Assignment of duties
2) Departmentalisation
3) Identification and division of labour
4) Establishing reporting relationships
Answer:
(3) → (2) → (1) → (4)

Question 14.
Write two organizational barries to communication.
Answer:
a) Organisational policy : If the organisational policy is complex, it restricts the free flow of communication.
b) Rules and regulations : Rigid Rules and regulations may be a hurdle to communication.

Question 15.
What is meant by performance appraisal?
Answer:
Performance appraisal means evaluating an employee’s current or past performance as against certain predetermined standards.

Question 16.
Write a short note on Management by exception.
Answer:
Control by Exception/ Management by Exception (MBE)
It is a management technique by which managers concentrate only on exceptional deviations instead of trying to correct each and every deviation. It allows the manager to devote more time for important issues by permitting the subordinates deal with the issue of a routine nature. This allows the subordinates to take decisions on certain matters without any interference by the top executives.

Question 17.
Which capital is mentioned in the following statements?

Investment in long-term securities	?
Investment in short-term securities	?

Answer:
(a) Fixed Capital
(b) Working Capital

Questions from 18 to 23 carry 3 scores each. (6 × 3 = 18)

Question 18.
Write any 3 differences between marketing and selling.
Answer:

Marketing	Selling
It is concerned with product planning and development.	It is concerned with sale of goods already produced.
It focuses on maximum satisfaction of the customer.	It focuses on the maximum satisfaction of the sellers through the exchange of products.
It aims at profits through consumer satisfaction.	It aims at maximum profit through maximisation of sales.

Question 19.
What are the three-tier redressal under Consumer Protection Act?
Answer:
a) District Forum
b) State Commission
c) National Commission

Question 20.
State the features of Leadership (any three).
Answer:
Features of Leadership

1. Leadership indicates ability of an individual to influence others.
2. Leadership tries to bring change in the behaviour of others.
3. Leadership indicates interpersonal relations between leaders and followers.

Question 21.
Describe importance of Planning.
Answer:
Importance of Planning

1. Planning provides directions: By stating in advance how work is to be done planning provides direction for all actions.
2. Planning reduces the risk of uncertainty: Planning enables anorganisation to predict future events and prepare to face the unexpected events.
3. Planning reduces wasteful activities: Planning serves as the basis of co-ordinating the activities
   and efforts of different departments and individuals. It helps to eliminate useless and redundant activities.

Question 22.
“Co-ordination is the essence of Management.”
a) Do you agree with this?
b) Write two features of co-ordination.
Answer:
(a) Yes. I agree with the statement.

(b) Characteristics of Co-ordination

1. Co-ordination integrates group efforts of different departments
2. Co-ordination ensures unity of action
3. Co-ordination is a continuous process

Question 23.

A	B
Top Level Management	Responsible for implementation of plans and strategies
Middle Level Management	Interact with actual workforce.
Lower Level Management	Responsible for the growth and survival of the organization

Answer:
a) Top level Management – Responsible for the growth and survival of the organisation.
b) Midde level Management – Responsible for implementation of plans and strategies.
c) Lower level Management – Interact with actual workforce

Questions from 24 to 31 carry 4 scores each. (8 × 4 = 32)

Question 24.
“Management is the process of dealing with things,, or people.” Validate the statement by highlighting its importance.
Answer:
Need and Importance of Management

1. Achieving Group Goals: Efficient management co-ordinates all the activities for the achievement of organisational goals.
2. Increases Efficiency: Management helps to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
3. Creates Dynamic Organisation: A good management enables the business to adapt and adjust according to the changes in the business environment.
4. Achieving Personal Objectives: Through motivation and leadership, the management helps individuals to develop team spirit, co-operation and commitment to group success.

Question 25.
Write short notes on the following types of plans:
1) Policy
2) Procedures
3) Programme
4) Rules
Answer:
a) Policy: Policy is a broad statement formulated to provide guidelines in decision making.

b) Procedure: Procedure is a chronological sequence or steps to be undertaken to enforce a policy.

c) Programme: Programme includes all the activities necessary for achieving a given objective. Programmes are the combination of goals, policies, procedures and rules.

d) Rule: Rules are prescribed guidelines for conducting an action.

Question 26.
Distinguish between Formal Organization and Informal Organization.
Answer:

Formal organisation	Informal organisation
1) It is deliberately created by top level management.	1) It arises automatically as a result of social interaction among the employees.
2) It has pre-determined purpose.	2) It has no pre-determined purpose.
3) It is highly rigid.	3) It is more flexible.
4) Communication is allowed through the scalar chain.	4) Communication is allowed through all channel networks.

Question 27.
State the importance of business environment.
Answer:
Importance of Business Environment

1. Identification of opportunities: Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them.
2. Identification of threats: Environmental awareness help managers to identify various threats on time and serves as an early warning signal.
3. Tapping useful resources: Business environment helps to know the availability of resources and making them available on time.
4. Coping with rapid changes : Environmental scanning enables the firms to adapt themselves to the changes in the market.

Question 28.
“Staffing fills the job positions in the organization.”
a) Is this statement correct?
b) Write any 3 importance of staffing.
Answer:
a) Yes. This statement is correct.

b)

1. Helps in discovering and obtaining competent personnel for various jobs.
2. Makes for higher performance, by putting right person on the right job.
3. Ensures continuous survival and growth of the enterprise.
4. Helps to ensure optimum utilization of the human resources.

Question 29.
List out the principles of directing. (any 4)
Answer:
Principles of Directing

1. Maximum Individual Contribution: This principle emphasises that directing techniques must help every individual in the organization to contribute to his maximum potential for achievement of organisational objectives.
2. Harmony of Objectives: The objectives of individual and organization must be in harmony with each other.
3. Unity of Command: This principle insists that, a person in the organisation should receive instructions from one superior only.
4. Appropriateness of Direction Technique: According to this principle, appropriate motivational and leadership techniques should be used while directing the people.

Question 30.
Capital structure refers to the combination between owners fund and borrowed fund.
a) Do you agree?
b) Write any factors affecting the choice of capital structure.
Answer:
a) Yes. I agree with this statement.

b) Factors Affecting Capital Structure

1. Trading on Equity (Financial Leverage): It refers to the use of fixed income securities such as debentures and preference capital in the capital structure so as to increase the return of equity shareholders.
2. Stability of Earnings: If the company is earning regular and reasonable income, the management can rely on preference shares or debentures. Otherwise issue of equity shares is recommended.
3. Cost of Debt: A firm’s ability to borrow at lower rate, increases its capacity to employ higher debt.
4. Flexibility: Capital structure should be capable

Question 31.
Write the names of various money market instruments.
Answer:
a) Treasury Bill
b) Commercial paper
c) Call money
d) Certificate of Deposit

Question 32.
Explain the following :
1) Economic environment.
2) Legal environment.
Answer:
a) Economic Environment: Interest rates, inflation rates, changes in disposable income of people, stock market indices and the value of rupee are some of the economic factors that can affect the business enterprise.

b) Legal Environment: Legal environment includes various legislations passed by the central, state or local Government.

Question 33.
What are the features of Planning?
Answer:
Features of Planning

1. Planning is goal oriented
2. It is the primary function of management
3. It is required at all levels of management
4. Planning is a continuous process
5. Planning is futuristic (forward looking)

Question 34.
Arrange the following elements of communication in the right order:
1) Message
2) Decoding
3) Sender
4) Encoding
5) Media.
6) Feedback
7) Receiver
Answer:
Sender → Message → encoding → media decoding → Receiver → feed back

Question 35.
Substantiate the relationship between Planning and Controlling.
Answer:
Relationship between Planning and Controlling

1. Planning and control are interdependent and inseparable functions of management.
2. Planning is a prerequisite for controlling.
3. Planning initiates the process of management and controlling complete the process.
4. Planning is prescriptive where as controlling is evaluative.
5. Planning and controlling are both backward looking as well as forward looking functions.

Question 36.
Transfers, Campus recruitment, Direct recruitment, and promotions are some of the sources of recruitment.
a) Classify them into internal sources and external sources.
b) Write 3 merits of internal sources of recruitment.
Answer:
a) Internal sources – Transfer, Promotion

b) External sources – Campus recruitment, Direct recruitment

c) Merits of Internal Sources

1. It motivate the employees for better performance.
2. The existing employees get an opportunity for promotion.
3. It establishes better employer – employee relationship.

Question 37.
Briefly explain the various levels of Management.
Answer:
a) Levels of Management: There are three levels in the hierarchy of an organisation.
They are:

1. Top-Level Management
2. Middle-Level Management
3. Lower-Level Management

b)

1. Top Level Management: It consists of Chairman, Chief Executive Officer, Board of Directors, Managing Director, etc.
2. Middle Level Management: All the functional department heads and branch managers come under the category of middle level managers. E.g. Production manager, Sales manager, Finance manager, etc.
3. Lower / Supervisory / Operational Level Management: This level includes foremen, supervisors, finance and accounts officers, sales officers, etc. This level of managers have direct contact with employees.

Question 38.
Explain any two principles of Scientific Management,
Answer:
Principles of Scientific Management

• Science and not the rule of thumb: The first principle of scientific management requires scientific study and analysis of each element of job in order to replace old rule of thumb approach.
• Harmony, not discord: As per this principle, there should be complete harmony between the management and workers. Taylor called for cornplete mental revolution on the part of both management and workers. Both the parties should realize each other’s importance and work towards the profits of the firm.

Question 39.
What are the elements of delegation of authority? Explain briefly.
Answer:

• Authority: Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. Authority flows from top to bottom. Authority determines the superior subordinate relationship in an organisation.
• Responsibility: Responsibility is the obligation of a subordinate to properly perform the assigned duty. Responsibility flows upwards, i.e., a subordinate will always be responsible to his superior.
• Accountability: Accountability implies being answerable for the final outcome, i.e., subordinate will be accountable to a superior for satisfactory performance of work.

Question 40.
Write the important measures taken as a part of Liberalisation.
Answer:
Liberalisation : Liberalisation of economy means to free it from direct control imported by the government. Liberalisation of the Indian industry has taken place with respect to the following.

1. Abolishing licensing requirement in most of the industries.
2. Freedom in deciding the scale of business activities
3. Removal of restrictions on the movement of goods and services.
4. Freedom in fixing the prices of goods and services.

Questions from 41 to 45 carry 8 scores each. (5 × 8 = 40)

Question 41.
Explain any 4 principles of General Management.
Answer:

• Division of Work: This principle states that a complex work should be divided into small tasks, and each task should be assigned to a particular employee. Division of work leads to specialization.
• Authority and Responsibility: Authority is the right to give orders to the subordinates and responsibility is the obligation to perform the work in the manner directed by authority. There should be a balance between authority and responsibility.
• Unity of Command: The principle of unity of command states that each employee should receive orders from one superior only. It helps to avoid confusion and conflict in the empldyees.
• Centralization and Decentralization: Centralisation means concentration of authority at the top management. Decentralisation means dispersal of authority to the lower levels in the organisation. There should be a balance between Centralisation and decentralization.

Question 42.
Describe the various steps in the process of planning.
Answer:
Planning Process (Steps in Planning)

• Setting Objectives: The first step in planning is setting objectives. Objectives may be set for the entire organisation and for each department. The objective must be specific and clear.
• Developing premise’s: Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
• Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
• Evaluating alternative Courses: The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
• Selecting an alternative: After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
• Implement the plan: Implementation of plan means putting plans into action so as to achieve the objectives of the business.
• Follow up action: Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.

Question 43.
Explain the various on the job training methods in workplace?
Answer:
On the Job Method: Under this method the employee is given training when he is on the job. It means learning while doing. The important On the Job Methods are:
a) Apprenticeship Programme: Under apprenticeship training, a trainee is put under the supervision of a master worker.

b) Coaching: In this method, the superior guides and instructs the trainee as a coach.

c) Internship Training: It is a joint programme of training in which vocational and professional institutes enter into an agreement with business enterprises for providing practical knowledge to its students.

d) Job Rotation: Here the trainee is transferred from one job to another job or from one department to another department so that he can learn the working of various sections.

Question 44.
Complete the need hierarchy of Abraham Maslow and explain them briefly.

Answer:
Maslow’s Need Hierarchy Theory of Motivation
Abraham Maslow’s Need Hierarchy Theory is considered fundamental to understanding of
motivation. His theory was based on human needs.

Various human needs are:

1. Physiological Needs: These are the basic needs which include food, clothes, hunger, thirst, shelter, sleep and sex. If physiological needs are not satisfied, the higher level needs will not be emerged.
2. Safety/Security Needs: These needs provide security and protection from physical and emotional harm. These needs include job security, stability of income, pension plans, etc.
3. Social Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. Informal organisation helps to satisfy the social needs of an individual.
4. Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention.
5. Self Actualisation Needs: It is the highest level of need in the hierarchy. Self actualisation is the need to maximise one’s potential, whatever it may be. These needs include growth, self-fulfilment and achievement of goals.

Question 45.
Marketing mix is a combination of 4 P’s.
a) What are the 4 P’s?
b) Explain any two of them.
Answer:
a) Price, Place, Product and Promotion

b)

• Price: Price is the amount of money paid by the customers to pay to obtain the product. In most of the products, price affects the demand of the products. Desired profits, cost of production, competition, demands, etc. must be considered ‘ before fixing the price of a product.
• Place: Place or Physical Distribution includes activities that make firm’s products available to the target customers. Important decision areas in this respect include selection of dealers, storage, warehousing and transportation of goods from the place of production to the place of consumption.