Kerala Plus Two Business Studies Question Paper March 2020 with Answers

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf March 2020 helps in understanding answer patterns.

Kerala Plus Two Business Studies Previous Year Question Paper March 2020

Time: 21/2 Hours
Total Score: 80 Marks

Part – A

Answer all questions from 1 to 9. Each carries 1 score. (9 × 1 = 9)

Question 1.
interaction of domestic economy with the rest of the world economy is termed as ……………………… .
a) Liberalisation
b) Globalisation
c) Privatisation
d) Demonetisation
Answer:
b) Globalisation

Question 2.
……………………….. organisation structure leads product specialisation.
Answer:
Divisional Structure

Question 3.
Choose the correct equation relating to working capital.
a) Current Assets + Fixed Assets
b) Current Assets – Current Liabilities
c) Current Assets – Fixed Liabilities
d) Current Assets + Current Liabilities
Answer:
b) Current Assets – Current Liabilities

Question 4.
Find the odd one relating to the features of management principles.
a) Universal
b) Flexible
c) Behavioural
d) Rigidity
Answer:
d) Rigidity

Question 5.
Mr. Babu is the Chief Executive Officer of Premier Ltd. Name the level of management he belongs.
a) Top level
b) Middle level
c) Supervisory level
d) Lower level
Answer:
a) Top level

Question 6.
Fill in the blanks as per hint given:
The Prevention of Food Adulteration Act: 1954
The Consumer Protection Act:…?
Answer:
1986

Question 7.
Which is called as “Silent Salesman” in a market?
a) Grading
b) Trade Mark
c) Packaging
d) Branding
Answer:
c) Packaging

Question 8.
PERT stands for …………………
Answer:
Programme Evaluation Review Technique

Question 9.
Name the organisational structure which increases managerial and operational efficiency.
Answer:
9. Functional Structure

Answer any 4 questions from 10 to 14. Each carries 2 scores. (4 × 2 = 8)

Question 10.
List any two Selection Teste used for selecting an employee.
Answer:
(1) Intelligence Test
(2) Aptitude Test
(3) Personality Test
(4) Trade Test
(5) Interest Trest

Question 11.
Find the odd one. Give reason.
(a) Motivation
(b) Leadership
(c) Communication
(d) Staffing
Answer:
Staffing. All others are elements of directing

Question 12.
“Management is a Science.”- Give any two reasons to justify this statement.
Answer:
a) Management has systematised body of knowledge like science.
b) Management principles are developed through scientific enquiry and experimentation
c) Management principles are universally applicable.

Question 13.
Identify the management principles in the following statements.
(a) Management should promote a team spirit among employees.
(b) There should be a place for everything in the organisation.
Answer:
a) Espirit De Corps (Union is strength)
b) Order

Question 14.
Explain how planning facilitates decision making.
Answer:
Planning provides the basis for control. Planning specifies the standard with which the actual performance is compared to find out deviation and taking corrective action.

Answer any 4 questions from 15 to 19. Each carries 3 scores. (4 × 3 = 12)

Question 15.
State any three consumer responsibilities.
Answer:

1. Be aware about various goods and services available in the market.
2. Buy only standardised goods as they provide quality assurance.
3. Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
4. Read labels carefully so as to have information about prices, net weight, manufacturing and expiry dates, etc.

Question 16.
Mention any three features of a good brand name.
Answer:

1. The brand name should be short, easy to pronounce, spell, recognise and remember.
2. A brand should suggest the product’s benefits and qualities.
3. A brand name should be distinctive.
4. Brand name should be adaptable to packing or labelling requirements, to different advertising media and to different languages.

Question 17.
Explain the concept of financial planning.
Answer:
The process of estimating the fund requirement of a business and specifying the sources of funds is called financial planning. It ensures that enough funds are available at right time.

The twin objectives of financial planning are
a) To ensure availability of fund at the right time and its possible sources.
b) To see that firm does not raise fund unnecessarily.

Question 18.
List out any three non-financial incentives.
Answer:
Non-Financial Incentives : Incentives which are not measurable in terms of money are called Non- Financial Incentives. These incentives are essential for satisfying physiological, social and emotional needs. Some of the important non-financial incentives are:
a) Status: status means ranking of positions in the organisation. Physiological, social and esteem needs of an individual are satisfied by status given to their job.

b) Organisational Climate: It includes individual autonomy, reward orientation, consideration to employees, etc. These characteristics influence the behaviour of individuals in the organization.

c) Career Advancement Opportunity: Managers should provide opportunity to employees to A improve their skills and be promoted to the higher level jobs.

d) Job Enrichment: It is a method of motivating employee by making the task to be performed by him more interesting and challenging.

Question 19.
Name the types of plan and give an example from the following:
(a) Statement of expected result expressed in numerical terms.
(b) Specific statement that informs what is to be done and what is not to be done.
Answer:
a) Budget: eg. Cash budget, Sales budget
b) Rule. eg. No Smoking, Remove your shoes

Answer any 5 questions from 20 to 25. Each carries 4 scores. (5 × 4 = 20)

Question 20.
State any four differences between an entrepreneur and a manager.
Answer:

Entrepreneur	Manager
The main motive of an entrepreneur is to start a venture by setting up an enterprise.	The main motive of a manager is to render his services in an enterprise already set up by someone.
An entrepreneur is the owner of the enterprise	A manager is the servant in the enterprise.
An entrepreneur assumes all risks and uncertainty	A manager does not bear any risk involved in the enterprise.
An entrepreneur gets profit.	A manager gets salary.

Question 21.
Explain the ‘Production Concept’ in marketing.
Answer:
The Production Concept: This concept believed that profits could be maximised by producing at large scale, thereby reducing the cost of production. Here greater emphasis was given on improving the production and distribution.

Question 22.
Planning and Controlling are inter-related. Substantiate your answer.
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 23.
“This source of recruitment develop dissatisfaction among existing staff.”
(1) Identify the source of recruitment.
(2) Explain any four sources under this category.
Answer:
a) External sources of recruitment

b)

• Direct Recruitment: Under the direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available. Jobseekers assemble outside the premises of the organisation on the specified date and selection is done on the spot. It is suitable for filling casual vacancies.
• Casual callers: Many reputed business organisations keep a database of unsolicited applicants in their office. These list can be used for recruitment.
• Advertisement: Advertisement in newspapers or trade and professional journals is generally used when a wider choice is required.
• Employment Exchange: Employment exchanges keep records of job seekers and will be supplied to business concern on the basis of their requisition.

Question 24.
Identify the process by which a manager synchronises the activities of different departments. Write any three features of it.
Answer:
a) Co-ordination

b)

1. Co-ordination integrates group efforts of different departments
2. Co-ordination ensures unity of action
3. Co-ordination is a continuous process
4. Co-ordination is an all pervasive function
5. Co-ordination is the responsibility of all managers
6. Co-ordination is a deliberate function

Question 25.
Explain any two money market instruments.
Answer:
1) Treasury Bill: they are issued by the RBI on behalf of the Central Government to meet its short-term requirement of funds. They are issued at a discount on the face value of the instruments and repayable at par. They are issued in the form of promissory notes. They are also known as Zero Coupon Bonds as no interest is paid on such bills. They are highly liquid. The maturity period of these bills may be between 14 to 364 days.

2) Commercial Paper: Commercial paper is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a maturity period of 15 days to one year. It is sold at a discount and redeemed at par.

Answer the question 26. (5)

Question 26.
Match the following.

A	B
On the job Training	External Sources
Transfer	Negative Process
Campus Recruitment	Internship Training
Selection	Conference
Off the Job Training	Internal Sources

Answer:

A	B
On the job Training	Internship Training
Transfer	Internal Sources
Campus Recruitment	External Sources
Selection	Negative Process
Off the Job Training	Conference

Answer any 2 questions from 27 to 29. Each carries 5 scores. (2 × 5 = 10)

Question 27.
Explain the term ‘Mental Revolution’ in relation to Scientific Management.
Answer:
Taylor’s Scientific Management: Fredrick Winslow Taylor (1856 – 1915) is known as the Father of Scientific Management. His book ‘Principles of Scientific Management’was published in 1911.

In the words of Taylor, “Scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way”.

Harmony, not discord: As per this principle, there should be complete harmony between the management and workers. Taylor called for complete 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 28.
Explain any five impacts of government policy changes in Indian Business and Industry.
Answer:
Impact of Government Policy Changes on Business and Industry: The government policy of liberalisation, privatisation and globalisation has made a definite impact on the working of enterprises in business and industry in terms of the following.

1. Competition for Indian firms has increased.
2. The customer’s wider choice in purchasing better quality of goods and services.
3. Rapid technological advancement has changed/ improved the production process.
4. Enterprises are forced to continuously modify their operations.
5. Need for Developing Human Resources arise.

Question 29.
It is a network of Personal arid Social relations among employees without any conscious purpose. Explain the concept referred here.
Answer:
Informal Organisation: informal organisation refers to relationship between individuals in the organisation based on interest, personal attitude, emotions, likes, dislikes etc. The network of social groups based on friendship is called informal organisation.

1. It originates from within the formal organisation as a result of personal interaction among employees.
2. It has no written rules and procedures.
3. It does not have fixed lines of communication.
4. It is not deliberately created by the management.

or
Informal Communication: Communication that takes place without following the formal lines of communication is said to be informal communication. It results from the social interaction among the members. It satisfies the social needs of members in the organisation. The network of informal communication is known as Grapevine. It is so called because the origin and direction of flow of communication cannot be easily traced out.

Types of Informal Communication / Grapevine Network

1. Single Strand Network: In single strand network, each person communicates to the other in sequence.
2. Gossip Network: In gossip network, each person communicates with all on non-selective basis.
3. Probability Network: In probability network, the individual communicates randomly with other individual.
4. Cluster Network: In cluster, the individual communicates with only those people whom he trusts.

Answer any 2 questions from 30 – 32. Each carries 8 scores. (2 × 8 = 16)

Question 30.
Explain the factors affecting working capital requirements of a company. (Any Eight points)
Answer:
Factors affecting Working Capital

• Nature of Business: A trading organisation usually needs a smaller amount of working capital as compared to a manufacturing organisation.
• Scale of Operations: A large scale organisation . requires large amount of working capital as
  compared to the organisations which operate on a lower scale.
• Business Cycle: In the boom period larger amount of working capital is needed to meet the demand. In case of depression, demand for goods declines so less working capital is required.
• Seasonal Factors: During peak season demand of a product will be high and thus high working capital will be required as compared to lean season.
• Production Cycle: Production cycle is the time span between the receipt of raw material and their conversion into finished goods. Working capital requirement is higher in firms with longer processing cycle and lower in firms with shorter processing cycle.
• Credit Policy: A liberal credit policy results in higher amount of debtors, increasing the requirement of working capital.
• Operating Efficiency: If cash, debtors and inventory are efficiently managed, working capital requirement can be reduced.
• Availability of Raw Materials: If the raw materials are easily available in the market and there is no shortage, huge amount need not be blocked in inventories, so it needs less working capital.

Question 31.
Prepare a Seminar report on the topic “Barriers to Communication”.
Answer:
Barriers to Communication
1) Semantic barriers: Semantic barriers are concerned with problems and obstructions in the process of encoding and decoding of message into words or impressions. Semantic barriers are:-
a) Badly expressed message: The badly expressed messages may be an account of inadequate vocabulary, usage of wrong words, omission of needed words, etc.
b) Symbols with different meanings: People may interpret the same message differently depending upon their attitude, education, social and cultural backgrounds.

2) Psychological Barriers: Emotional or psychological factors act as barriers to. communicators. Psychological barriers are:
a) Premature evaluation: People evaluate the meaning of message before the sender completes his message.
b) Lack of attention: The preoccupied mind of receiver and the resultant non-listening of ‘ message acts as a major psychological barrier.

3) Organisational Barriers Organisation’s policies, Number of levels of management, rigid rules, etc., are the examples of organisational barriers.
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

4) Personal barriers
It includes fear of challenge to authority, lack of confidence, lack of incentives, etc.
a) Fear of challenge to authority: If a superior perceives that a particular communication may affect his authority, then he with hold such communication.
b) Lack of confidence: If superiors do not have confidence on the competency of subordinates, they may not seek their advice.

Question 32.
A TV manufacturing company spends huge amount in advertisement to increase the number of its customers.
Illustrate the merits and demerits of advertisement as a promotion technique.
Answer:
Merits of Advertising
1. Advantages to Manufacturers and Traders

1. Advertising helps in introducing new products.
2. It stimulates the consumers to purchase the new products.

2. Advantages to Consumers

1. It helps the consumers to know about the various products and their prices.
2. Consumers can purchase the better products easily.

3. Advantages to the Society

1. Advertisement helps to create more employment opportunities.
2. It provides an important source of income to the press, radio, T.V., etc.

Disadvantages / Objections to Advertising

1. Advertisement encourages consumers to buy unwanted goods.
2. Most of the advertisements are misleading.
3. Advertisement may lead to monopoly of a brand.
4. Advertisement is a costly affair. So, ultimately it increases the price of the product.
5. Advertisement persuades people to purchase even the inferior products.
6. It undermines social and ethical values.