Kerala Plus Two Business Studies Board Model Paper 2023 with Answers

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf Board Model Paper 2023 helps in understanding answer patterns.

Kerala Plus Two Business Studies Board Model Paper 2023 with Answers

Time: 21/2 Hours
Total Score: 80 Marks

Answer any 8 questions from 1 to 10. Each carries 1 score. (8 × 1 = 8)

Question 1.
Find the odd one.
(a) Chief Executive Officer
(b) Chief Operating Officer
(c) Chairman
(d) Supervisor
Answer:
(d) Supervisor

Question 2.
It seeks to determine the amount and frequency of rest intervals in completing a task.
(a) Motion study
(b) Fatigue study
(c) Time study
(d) Method study
Answer:
(b) Fatigue study

Question 3.
Manager’s plans are based on certain assumptions.They are denoted by ……………………
(a) Planning premises
(b) Alternatives
(c) Follow-up action
(d) Implementing
Answer:
(a) Planning premises

Question 4.
Identify the term used to denote “the right of an individual to give orders and to take action within the scope of his position.”
(a) Responsibility
(b) Accountability
(c) Authority
(d) Decentralisation
Answer:
(c) Authority

Question 5.
Process of finding possible candidates for a job or function.
(a) Training
(b) Recruitment
(c) Selection
(d) Promotion
Answer:
(b) Recruitment

Question 6.
Identify the process of converting the message into communication symbols such as words, pictures etc.
(a) Feedback
(b) Encoding
(c) Decoding
(d) Message
Answer:
(b) Encoding

Question 7.
Identify the principle which indicates that “only significant deviations which go beyond the permissible limit should be brought to the notice of management.”
(a) Setting performance standard
(b) Measuring perforance
(c) Control by exception
(d) Critical point control
Answer:
(c) Control by exception

Question 8.
Which one of the following does not affect financing decision?
(a) Cost
(b) Risk
(c) Budget
(d) Floatation cost
Answer:
(c) Budget

Question 9.
Advertising falls under which one of the following elements of marketing mix?
(a) Place
(b) Price
(c) Product
(d) Promotion
Answer:
(d) Promotion

Question 10.
Which one of the following apex body of redressal agency under Consumer Protection Act, 1986?
(a) District forum
(b) State Commission
(c) National Commission
(d) High Court
Answer:
(c) National Commission

Answer any 5 questions from 11 to 16. Each carries 2 scores. (5 × 2 = 10)

Question 11.
Complete the Chart

Answer:
a) Social objectives
b) Personal objectives

Question 12.
What is meant by business environment?
Answer:
The term ‘business environment1 means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.

Question 13.
Plans can be classified into several types depending on the use and the length of the period. List them.
Answer:

1. Single use plan: A single use plan is developed for a one-time event or project. Such plans are not to be repeated in future. E.g. budgets, programmes, strategies, etc.
2. Standing plan: A standing plan is used for activities that occur regularly over a period of time.
   E g.:-Objectives, policies, procedures, methods and rules.

Question 14.
Every organization will be characterized by both centralization and decentralisation. Differentiate between centralization and decentralization.
Answer:
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 15.
List out the four elements of directing.
Answer:

1. Supervision
2. Motivation
3. Leadership
4. Communication

Question 16.
“Planning and Controlling are interrelated.” Comment.
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.

Answer any 5 questions from 17 to 22. Each carries 3 scores. (5 × 3 = 5)

Question 17.
Explain the technique of functional foremanship.
Answer:
Functional foremanship: Functional foremanship is a technique in which planning and execution are separated. He classified 8 specialist foremen into two departments viz. Planning and Production department. Both departments have four foremen each. Functional foremanship is based on the principle of division of work.

Question 18.
Every organization uses several tests for selection of employees. Mention any three.
Answer:
a) Intelligence Tests: This is one of the important psychological tests used to measure the level of intelligence quotient (IQ) of an individual.

b) Aptitude Test: It is a measure of individual’s potential for learning new skills.

c) Personality Tests: Personality tests provide clues to a person’s emotions, reactions, maturity and value system, etc.

Question 19.
Explain any three limitations of controlling.
Answer:

1. Difficulty in setting quantitative standards: Control system loses some of its effectiveness when standards cannot be defined in quantitative terms.
2. Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition, etc.
3. Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom.

Question 20.
Finance function is concerned with taking three important decisions. What are they?
Answer:
1. Finance Decision: It relates to the amount of finance to be raised from various long term sources. The main sources of funds for a firm are shareholders’ funds (equity capital and the retained earnings) and borrowed funds (debentures or other forms of debt). A firm needs to have a judicious mix of both debt and equity in making financing decisions.

2. Investment Decision: The investment decision relates to how the firm’s funds are invested in different assets. Investment decision can be long-term or short-term. A long-term investment decision is also called a Capital budgeting decision.

Short-term investment decisions (also called working capital decisions) are concerned with the decisions about the levels of cash, inventory and receivables.

3. Dividend Decision: Dividend is that portion of profit which is distributed to shareholders. The decision involved here is how much of the profit earned by company (after paying tax) is to be distributed to the shareholders and how much of it should be retained in the business.

Question 21.
Briefly explain different types of consumer products.
Answer:
Consumers’ Products : Products, which are purchased by the ultimate consumers for satisfying their personal needs and wants are referred to as consumer products.
Consumer products are classified as
a) Shopping efforts involved
b) Durability of products

Question 22.
Observe the following diagram:

(a) Identify the communication network.
(b) Briefly explain.
Answer:
a) Wheel Network
b) Wheel: In wheel network, all subordinates under one superior communicate through him only. The subordinates are not allowed to communicate among themselves.

Answer any 4 questions from 23 to 27. Each carries 4 scores. (4 × 4 = 16)

Question 23.
“Management is a profession.” Give your views, (any four)
Answer:
Management as a Profession: Profession means an occupation for which specialised knowledge and skills are required. The main features of profession are as follows.

1. Well defined body of knowledge
2. Formal education and training
3. Professional Associations

Management is a profession because:
a) Management is based on a systematic body of knowledge comprising well defined principles.

b) A manager acquires management skills through formal education and training.

c) All professions are affiliated to a professional association which regulates entry and frame code of conduct relating to the profession.

Question 24.
Complete the following chart and explain each element:

Answer:

Question 25.
Match the following:

A	B
1. Debentrues	(a) Owner’s fund
2. Equity share	(b) Borrowed funds
3. Working capital	(c) Debt-equity ratio
4. Capital structure	(d) Current asset

Answer:

A	B
1. Debentrues	(b) Borrowed funds
2. Equity share	(a) Owner’s fund
3. Working capital	(d) Current asset
4. Capital structure	(c) Debt-equity ration

Question 26.
“Consumer Protection Act, 1986 provides several rights to consumers.” Explain any four rights.
Answer:

1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health.
2. Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use, etc.
3. Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices.
4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with goods or services.

Question 27.
Observe the following diagram:

(a) Identify the organization structure.
(b) Explain three advantages of it.
Answer:
a) Functional organisation

b)

1. It promotes division of work which leads to specialisation.
2. It promotes control and coordination within a department.
3. It helps in increasing managerial and operational efficiency and this results in increased profit.

Answer any 3 questions from 28 to 31. Each carries 5 scores. (3 × 5 = 15)

Question 28.
Briefly explain Fayol’s management principles. (any live)
Answer:

1. 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.
2. 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.
3. Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
4. 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 employees.
5. Unity of Direction: Each group of activities having the same objective must have one head and one plan. This ensures unity of action and co-ordination.

Question 29.
What is marketing mix? Explain its elements.
Answer:
Marketing Mix: It refers to the combination of four basic marketing tools (Product, Price, Place and Promotion) that a firm uses to pursue its marketing objectives in a target market.

Elements /4 P’s of Marketing Mix

• Product: Product means goods or services or ‘anything of value’, which is offered to the market for sale. The important product decisions include deciding about the features, quality, packaging, labelling and branding of the products.
• 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.
• Promotion: Promotion includes activities that communicate availability, features, merits, etc. of the products to the target customers and persuade them to buy it. It includes advertising, personal selling, sales promotion and publicity to promote the sale of products.

Question 30.
Explain five factors affecting the working capitail requirement of an organization.
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 wiH 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.

Question 31.
Write a short note on:
(a) Objectives
(b) Strategy
(c) Policy
(d) Procedure
(e) Programme
Answer:
a) Objectives: Objectives are the ends, towards which activity is aimed at for the accomplishment of organizational goals. Objective should be measurable in quantitative terms.

b) Strategy: Strategy is a comprehensive plan for – accomplishing an organization objectives. This comprehensive plan will include determining long term objectives, adopting a particular course of action and allocating resources.

c) Policy: Policy is a broad statement formulated to provide guidelines in decision making.

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

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

Answer any 2 questions from 32 to 34. Each carries 8 scores. (2 × 8 = 16)

Question 32.
Explain the external sources of recruitment, (any eight)
Answer:
External Sources: Selection of employees from outside the enterprise is known as external recruitment.

The important external sources of recruitment are:

• 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 lists 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.
• Placement Agencies and Management Consultants: These agencies compile biodata of a large number of candidates and recommend suitable names to their clients.
• Campus Recruitment: Business enterprises may conduct campus|recruitment in educational institutions for selecting young and talented candidates.
• Recommendations of Employees: Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment.
• Labour Contractors: Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice.
• Web Publishing: There are certain websites specifically designed and dedicated for the purpose of providing information for the job seekers.

Question 33.
Explain barriers of effective 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 withhold such communication.
b) Lack of confidence: If superiors do not have confidence on the competency of subordinates, they may not seek their advice.

Question 34.
“It is the paid from of communication and impersonal method of promotion.”
(a) Identify the concept.
(b) Explain four merits and three demerits of it.
Answer:
a) Advertisement

b) 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.

c) 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.