Kerala Plus Two Business Studies Board Model Paper 2022 with Answers

Reviewing Kerala Syllabus Plus Two Business Studies Previous Year Question Papers and Answers Pdf Board Model Paper 2022 helps in understanding answer patterns.

Kerala Plus Two Business Studies Board Model Paper 2022 with Answers

Time: 21/2 Hours
Total Score: 80 Marks

Part – I

A. Answer any 4 questions from 1 to 6. Each carries 1 Score. (4 × 1 = 4)

Question 1.
__________ comes under middle level management.
a) Production Manager
b) Managing Director
c) Foreman
d) Supervisor
Answer:
a) Production Manager

Question 2.
___________ environment is beyond the control of the organisation.
a) Internal
b) External
c) Micro
d) None of these
Answer:
b) External

Question 3.
’Putting people to jobs; denote ___________ function of management.
a) Planning
b) Organising
c) Staffing
d) Controlling
Answer:
c) Staffing

Question 4.
Find the odd one out.
a) Procedure
b) Budget
c) Policies
d) Rules
Answer:
b) Budget

Question 5.
____________ refers to the mix of owner’s fund and borrowed fund.
a) Capital budget
b) Capital structure
c) Fixed capital
d) Working capital
Answer:
b) Capital structure

Question 6.
___________ environment includes customs and traditions.
a) Economic
b) Legal
c) Technological
d) Social
Answer:
d) Social

B. Answer all questions from 7 to 10. Each carries 1 score. (4 × 1 = 4)

Question 7.
The primary of management is ___________ .
a) Planning
b) Controlling
c) Organising
d) Staffing
Answer:
a) Planning

Question 8.
_______ helps to increase the knowledge and skills to do a job.
a) Training
b) Development
c) Interest test
d) Personality test
Answer:
a) Training

Question 9.
__________ function of management ensures that activites in an organisation are performed as per the plans.
a) Planning
b) Controlling
c) Co-ordination
d) Organising
Answer:
b) Controlling

Question 10.
‘Competition should be replaced by co-operation is a principle of ___________ .
a) General management
b) Scientific management
c) Both (a) and (b)
d) None of these
Answer:
b) Scientific management

Part – II

A. Answer any 3 questions from 11 to 15. Each carries 2 scores. (3 × 2 = 6)

Question 11.
Complete the table.

Organisational objectives	Survival
Social objectives	?
Personal objectives	?

Answer:

Organisational objectives	Survival
Social objectives	Provide quality goods for fair prices
Personal objectives	Provide fair remuneration

Question 12.
Write any two examples of money market instruments.
Answer:
a) call money
b) commercial paper

Question 13.
Write any 4 rights of a consumer.
Answer:
a) Right to safety
b) Right to choose
c) Right to be informed
d) Right to be heard

Question 14.
Identify the elements of delegation mentioned in the following statements:
a) Right to give orders and enforce obedience.
b) Obligation to perform assigned duty.
Answer:
a) Authority
b) Responsibility

Question 15.
Differentiate between money market and capital market (2 points).
Answer:

Capital Market	Money Market
1) Market deals only Iona term fund.	1) Market deals only short term fund.
2) It arranges large amount of fund.	2) It arranges small amount of fund.
3) Return is high.	3) Return is low.

B. Answer any 2 questions from 16 to 18. Each carries 2 scores. (2 × 2 = 4)

Question 16.
Write any two examples each for Financial and non- financial incentives.
Answer:
(a) Financial incentives – Bonus, Commission
(b) Non Financial Incentives – Employee recognition programme, Employee participation.

Question 17.
List out the benefits of training and development to an organisation.
Answer:

1. It enhances employee productivity both in terms of quantity and quality, leading to higher profits.
2. Training reduces absenteeism and employee turnover.
3. It helps to obtaining effective response to the changing environment.

Question 18.
Write the impact of Government Policy changes on business and industry. (two points)
Answer:

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.

Part – III

A. Answer any 3 questions from 19 to 23. Each carries 4 scores. (3 × 4 = 12)

Question 19.
List out the steps in the Process of controlling.
Answer:

1. Setting Performance Standards: Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.
2. Measurement of Actual Performance: After establishing standards, the next step is measurement of actual performance. Performance should be measured in an objective and reliable manner.
3. Comparing Actual Performance with Standards: This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results.
4. Analysing Deviations: The deviations from the standards are assessed and analysed to identify the causes of deviations.
5. Taking Corrective Action: The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within the acceptable limits.

Question 20.
a) Explain marketing mix.
b) Complete the following diagram.

Answer:
(a) 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.

(b)

1. Price
2. Place

Question 21.
Write a short note on the following:
1) Economic environment
2) Legal environment
Answer:
(1) 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.

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

Question 22.
a) Identify the method of training mentioned in the following:
1) Learning while doing – ______?______
2) Learning before doing – ______?______
b) Classify the following under suitable methods of training:
Coaching, Films, Job rotation, Case study
Answer:
(a)

1. On the job training
2. Off the job training

(b)

1. Coaching – On the job method
2. Films – Off the job method
3. Job rotation – On the job method
4. Case study – Off the job method

Question 23.
Match the following:

Act of overseeing something	Leadership
Act of stimulating people to actions	Communication
Act of.sharing information	Supervision
Ability to influence people	Motivation

Answer:
(a) Act of overseeing something – Supervision
(b) Act of stimulating people to actions – Motivation
(c) Act of sharing information – communication
(d) Ability to influence people – Leadership

B. Answer any 1 Question from 24 to 25. Carries 4 scores. (1 × 4 = 4)

Question 24.
Briefly explain effectiveness and efficiency.
Answer:
Efficiency and effectiveness of Management
Efficiency and effectiveness are both commonly used management terms. Efficiency means whatever we produce or perform; it should be done in a perfect way. Efficiency refers to doing things in a right manner. It is defined as the output to input ratio and focuses on getting the maximum output with minimum resources. Effectiveness has a broader approach, which means the extent to which the actual results have been achieved to fulfill the desired outcome, ie, doing accurate things. Being Effective is about doing the right things, while being Efficient is about doing things right.

Question 25.
State the limitations of planning.
Answer:
Limitations of Planning

1. Planning makes the activities rigid.
2. Long term plans are insignificant in the rapidly changing business environment.
3. It reduces creativity.
4. It involves cost.
5. It involves a lot of time.
6. Planning does not guarantee success.

Part – IV

A. Answer any 3 questions from 26 to 29. Each carries 6 scores.

Question 26.
Explain the various levels of management.
Answer:
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

1. Top Level Management: It consists of Chairman, Chief Executive Officer, Board of Directors, Managing Director, etc.
Functions of Top Level Management

1. Lays down the objectives of the business
2. Prepares strategic plans and policies
3. Appoint middle level managers

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.
Functions of Middle Level Management

1. Carry out the plans formulated by the top managers.
2. To act as a link between Top Level Management and Lower Level Management
3. Assign necessary duties and responsibilities to the subordinates.

2. 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.
Functions of Lower Level Management

1. Plan day – to – day activities.
2. Assign workers to different jobs
3. Solve the problems of workers

Question 27.
a) Name the organisation mentioned in the following statements:
1) Organisation created by authority relation-ship – ______?______
2) Organisation created by personal relation-ships – ______?______
b) Also write any four differences between them.
Answer:
(a) (1) Formal organisation
(2) Informal organisation

(b) Difference between formal organisation and informal organisation.

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 predetermined 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.
Formal organisation	Informal organisation

Question 28.
List out the qualities of a good leader.
Answer:
Qualities of a Good Leader

1. Physical Features: Physical features like height, weight, health, appearance determine the physical personality of a leader.
2. Knowledge: A good leader should have required knowledge and competence.
3. Honesty: A leader should possess high level of honesty.
4. Initiative: A leader should have courage and initiative.
5. Communication Skills: A leader should have the capacity to clearly explain the ideas.
6. Motivation Skills: The leader should have the ability to motivate the subordinates by satisfying their needs.
7. Self Confidence: A leader should have high level of self confidence.

Question 29.
Explain the major financial decisions of an organisation.
Answer:
Finance Functions: The finance function is concerned with three broad decisions which are:

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.

B. Answer any 2 questions from 30 to 32. Each carries 6 scores. (2 × 6 = 12)

Question 30.
Write the nature of principles of management. (3 points)
Answer:
Nature of Principles of Management: Principles of management are statements of fundamental truth which provides guidelines for management decision making and action. The nature of management principles are:

1. Universal applicability: Management principles have universal application in all types of organizations.
2. General guidelines: The principles are guidelines to action.
3. Formed by practice and experimentation: The principles of management are formed by experience and experimentation of managers.

Question 31.
State the importance of communication. (4 points)
Answer:
Importance of Communication

1. Acts as basis of co-ordination: Communication acts as the basis of co-ordination.
2. Helps in smooth working of an enterprise: It is only communication, which makes smooth working of an enterprise possible.
3. Actsasbasisof decision making: Communication provides needed information for decision making.
4. Increases managerial efficiency: Communication lubricates the entire organisation and keeps the organisation at work with efficiency.
5. Promotes co-operation and industrial peace: Communication promotes co-operation and mutual understanding between the management and workers.

Question 32.
Explain the following:
1) Convenience products
2) Shopping products
3) Speciality products
Answer:
1) Convenience Products : Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods. Eg. ice creams, medicines, newspaper, stationery items, toothpaste, etc.

2) Shopping Products: Shopping products are those consumer goods, which buyers devote considerable time, to compare the quality, price, style, suitability, etc., at several stores, before making final purchase. Eg. clothes, shoes, jewellery, furniture, etc.

3) Speciality Products: Speciality products are.those consumer goods which have certain special features because of which people make special efforts in their purchase. The buyers are willing to spend a lot of time and efforts on the purchase of such products. The demand for these goods is inelastic.

Part – V

Answer any 2 questions from 33 to 35. Each carries 8 scores. (2 × 8 = 16)

Question 33.
Explain the following principles of management:
1) Unity of command
2) Unity of direction
3) Scalar chain
4) Order
Answer:
1. 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.

2. Unity of Direction: Each group of activities having the same objective must have one head Studies and one plan. This ensures unity of action and co-ordination.

3. Scalar Chain: The formal lines of authority from highest to lowest ranks are known as scalar chain. According to this principle, communication should pass through the established chain of command. It ensures unity of command and effective communication.

4. Order: According to Fayol, “People and materials must be in suitable places. That means, a place for everything and everything must be in its place.

Question 34.
Describe the process of planning.
Answer:
Planning Process (Steps in Planning)

1. 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.
2. Developing premises: Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.
3. Identifying alternative courses of action: The next step in planning is to identify the alternative courses of action to achieve the objectives.
4. Evaluating alternative Courses: The pros and cons of various alternatives must be evaluated in terms of their expected cost and benefits.
5. Selecting an alternative: After evaluating the alternatives the manager will select that alternative which gives maximum benefit at minimum cost.
6. Implement the plan: Implementation of plan means putting plans into action so as to achieve the objectives of the business.
7. Follow up action: Plans are to be evaluated regularly to check whether they are being implemented and activities are performed according to schedule.

Question 35.
Explain any four commonly used external sources of recruitment.
Answer:
1) Direct Recruitment: Under the direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available. Job seekers 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.

2) Casual callers: Many reputed business, organisations keep a database of unsolicited applicants in their office. These lists can be used for recruitment.

3) Advertisement: Advertisement in newspapers or trade and professional journals is generally used when a wider choice is required.

4) Employment Exchange: Employment exchanges keep records of job seekers and will be supplied to business concern on the basis of their requisition.

5) Placement Agencies and Management Consultants: These agencies compile bio-data of a large number of candidates and recommend suitable names to their clients.