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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.

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.

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

Kerala Plus Two Business Studies Previous Year Question Paper March 2022

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.
Find the odd one out.
(a) Marketing Manager
(b) Managing Director
(c) Production Manager
(d) Purchase Manager
Answer:
(b) Managing Director

Question 2.
Change in lifestyle relates to ………………. environment of business.
(a) Social environment
(b) Technological environment
(c) Political environment
(d) Economic environment
Answer:
(a) Social environment

Question 3.
In the new economic policy 1991, LPG stands for ……………….
Answer:
Liberalisation, Privatisation, Globalisation

Question 4.
The assumptions on the future upon which plans are based are called …………………….
(a) Planning Procedures
(b) Planning Premises
(c) Alternate plans
(d) None of these
Answer:
(b) Planning Premises

Question 5.
Name the training methods that are applied to the work place, while employee is actually doing the work.
Answer:
On the job training

Question 6.
Write the term that denotes the mix between owners fund and borrowed fund.
Answer:
Capital Structure

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

Question 7.
Doing and completing tasks with minimum cost is denoted by the term …………………..
a) efficiency
b) effectiveness
c) co-ordination
d) None of these
Answer:
a) efficiency

Question 8.
Deciding in advance what to do and how to do is ………………….
a) Directing
b) Organising
c) Staffing
d) Planning
Answer:
d) Planning

Question 9.
Learning opportunities designed to help the overall growth of employees is called ………………………
a) Development
b) Education
c) Training
d) None of these
Answer:
a) Development

Question 10.
Which among the following is the nature of principles of management?
a) Universal applicability
b) General guidelines
c) Cause and effect relationship
d) All of these
Answer:
d) All of these

Part – II

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

Question 11.
Profit is one of the organizational objectives of management. Write other two organizational objectives of  management.
Answer:
a) Survival: Management must strive to ensure the survival of the organisation,
b) Growth: management must exploit fully the growth potential of the organisation.

Question 12.
What do you mean by organisational structure?
Answer:
Organisational Structure: The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources.

Question 13.
Write any two difference between money market and capital market.
Answer:

Capital Market	Money Market
1) Market deals only long term fund.	1) Market deals only short term fund.
2) It arranges large amount of fund.	2) It arranges small amount of fund.

Question 14.
Briefly explain any twd rights enjoyed byaconsumer as per Consumer Protection Act, 1986.
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.

Question 15.
Write any two functions performed by stock exchange.
Answer:
Functions of a Stock Exchange

1. Providing Liquidity and Marketability to Existing Securities: Stock Exchange provides a ready and continuous market for the sale and purchase of securities.
2. Pricing of Securities: A stock exchange is a mechanism of constant valuation through which the prices of securities are determined. It is based on the forces of demand and supply.

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

Question 16.
The Indian Corporate Sector faced with several challenges due to the government policy of Describe any two such challenges.
Answer:

1. Competition for Indian firms has increased.
2. The customer’s wider choice in purchasing better quality of goods and services.

Question 17.
List out any two steps in the selection process.
Answer:

1. Preliminary Screening: Preliminary screening helps the manager to eliminate unqualified job seekers.
2. Selection Tests: Various tests are conducted to know the level of ability, knowledge, interest, aptitude, etc. of a particular candidate.
3. Employment Interview: Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.

Question 18.
Name any two types of formal communication network.
Answer:

• Single Chain: This network exists between a supervisor and his subordinates. Here communication flows from every superior to his subordinate through single chain.

• Wheel: In wheel network, all subordinates under one superior communicate through him only. The subordinates are not allowed to communicate among themselves.

Part – III

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

Question 19.
List out any four dimensions of business 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. Social Environment: The social environment of business includes the social forces like customs and traditions, values, social trends, literacy rate, educational levels, lifestyle, etc.
3. Technological Environment: Technological environment consists of new products, new technologies, new approaches to product, new methods and equipments, etc.
4. Political Environment: Political environment ‘ includes constitution, political parties and their ideology, types of govt., political stability, attitude towards business, etc.

Question 20.
Briefly explain any four tests used by organisations for selection process.
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.
d) Trade Test: These tests measure the existing skills of the individual.
e) Interest Tests: Interest tests are used to know the pattern of interests or involvement of a person.

Question 21.
Explain Maslow’s Need Hierarchy Theory of motivation.
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:

• 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.
• 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.
• Social Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. Informal organisation helps to satisfy the social needs of an individual.
• Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention.
• 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 22.
Briefly explain the first four 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.

Question 23.
Briefly explain the four elements of Marketing Mix.
Answer:
Elements / 4 P’s of Marketing Mix

1. 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.
2. 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.
3. 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.
4. 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.

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

Question 24.
Describe the importance of management,
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.
5. Development of Society: Management helps to provide good quality products and services, creates employment opportunities, adopts new technology, etc., for the good of the people and the society.

Question 25.
“Planning does not guarantee success.” Comment on the statement by narrating any four demerits 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.

Part – IV

A. Answer any 3 questions from 26 to 29. Each carries 6 scores. (3 × 6 = 18)

Question 26.
What do you mean by co-ordination? Explain its importance in an organisation.
Answer:
Co-ordination: The process by which a manager synchronises the activities of different departments is known as co-ordination. Co-ordination is the force that binds all the other functions of management.

Importance of Co – ordination

1. It increases efficiency: Co-ordination increases organisational efficiency.
2. Key to other functions: Co-ordination is the key to other managerial functions. Co-ordination makes planning more effective, organisation more well-knit and control more regulative.
3. Functional differentiation: The process of linking the activities of various departments is accomplished by co-ordination.
4. Unity in diversity: In an organization, there are large numbers of employees with different ideas, culture, etc. Co – ordination brings unity in diversity.
5. Specialisation: Co – ordination helps to co- ordinate the efforts of various specialists in an organisation.

Question 27.
Write any six differences between formal organisation and informal organisation.
Answer:
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 predetermined 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.
5) Managers are leaders.	5) Leaders are chosen voluntarily by the members.
6) It is based on authority and responsibility.	6) There is no authority and responsibility relationship.

Question 28.
Briefly explain any six qualities required for 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.
Every finance manager has to take three important financing decisions. Which are they? Explain.
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.

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

Question 30.
Write a short note on the principles of scientific management.
Answer:
Principles of Scientific Management
1) 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.

2) 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.

3) Co-operation not individualism: There should be complete co-operation between the labour and the management instead of individualism. According to Taylor, there should be an almost equal division of work and responsibility between workers and management.

4) Development of each and every person to his or her greatest efficiency and prosperity: The growth and development of an organisation depends on the efficiency and prosperity of employees. The efficiency of employees can be developed by giving proper training and development. This ensure the growth of an organisation.

Question 31.
Classify the following into financial incentive and non-financial incentive:
a) Bonus
b) Status
c) Job enrichment
d) Profit sharing
e) Retirement benefits
f) Employee Recognition programmes
Answer:
Financial Incentives : Bonus, profit sharing, retirement benefits.
Non financial incentives: Status, Job enrichment, Employee recognition programmes.

Question 32.
Describe different levels of packaging.
Answer:
Levels of Packaging

1. Primary Package: It refers to the product’s immediate container, e.g. toothpaste tube, match box, etc.
2. Secondary Packaging: It refers to additional layers of protection that are kept till the product
   is ready for use.
3. Transportation Packaging : It refers to further packaging components necessary for storage, identification or transportation.

PART – V

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

Question 33.
Briefly explain any eight principles of management given by Henry Fayol.
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.
• Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
• 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.
• 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.
• Subordination of Individual Interest to General Interest: The Interest of an organization should take priority over the interests of any one individual employee.
• Remuneration of Employees: Remuneration should be just, equitable and fair to both employees and the organization.
• 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 34.
Explain the various steps involved in planning process.
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.
Describe the various steps in staffing process.
Answer:
Staffing Process

• Manpower planning: It is concerned with forecasting the future manpower needs of the organisation, i.e. finding out number and type of employees need by the organisation in future.
• Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
• Selectiongim: Selection is the process of selecting the most suitable candidates from a large number of applicants.
• Placement and Orientation: Placement refers to putting the right person on the right job. Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.
• Training and Development: The process of training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.
• Performance Appraisal: Performance appraisal means evaluating an employee’s current and past performance as against certain predetermined standards.
• Promotion and Career Planning: Promotion means movement of an employee from his present job to a higher level job.
• Compensation: Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, commissions and indirect payments like employer paid insurance and vacation.

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

Kerala Plus Two Business Studies Previous Year Question Paper March 2023

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.
Achievement of goals with minimum resources is called:
(a) Efficiency
(b) Effectiveness
(c) Goal setting
(d) All of these
Answer:
(a) Efficiency

Question 2.
Study of movement like lifting, changing possition etc. are called ………………….
(a) Time study
(b) Fatigue study
(c) Motion study
(d) None of these
Answer:
(c) Motion study

Question 3.
A plan developed for a one time event is called …………………
(a) Standing plans
(b) Single use plans
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Single use plans

Question 4.
Complete the series :

(a) Formation is based on functions	Functional Structure
(b) Formation is based on product lines?	?

Answer:
Divisional Structure

Question 5.
The process of finding possible candidates for a job is ………………………
(a) Selection
(b) Training
(c) Recruitment
(d) None of these
Answer:
(c) Recruitment

Question 6.
Pay and allowance is an example of ……………………..
(a) Financial incentives
(b) Non-financial incentive
(c) Both (a) & (b)
(d) Non of these
Answer:
(a) Financial incentives

Question 7.
The process of ensuring that, the activities in an organisation are performed as per the plans is …………………..
(a) Planning
(b) Organising
(c) Controlling
(d) Directing
Answer:
(c) Controlling

Question 8.
The quantum of finance to be raised from various long-term sources is related to:
(a) Investment Decisions
(b) Financing Decisions
(c) Dividend Decisions
(d) None of these
Answer:
(b) Financing Decisions

Question 9.
The amount of money that the customers have to pay to obtain the; product is …………………
(a) Price
(b) Profit
(c) Loss
(d) Margin
Answer:
(a) Price

Question 10.
Which among the following is the apex authority as per Consumer Protection Act?
(a) District Forum
(b) National Commission
(c) State Commission
(d) High Court
Answer:
(b) National Commission

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

Question 11.
Briefly explain the concept of management.
Answer:
Management is a group activity which co-ordinates human resources and non – human resources in order to attain the objectives of an organisation. It includes planning, organising, staffing, directing, co-ordinating and controlling.

Question 12.
Complete the following chart:

Answer:
a. Privatisation
b. Globalisation

Question 13.
Write a note on ‘Planning Premises’.
Answer:
Planning is based on certain assumptions about the future. These assumptions are called planning premises. Forecasting is important in developing planning premises.

Question 14.
Explain the meaning of formal organisation.
Answer:
Formal organisation refers to an organisation structure which is deliberately created by the management to achieve the objectives. It is a system of well. defined job in terms of authority, responsibility and accountability.

Question 15.
List out the four elements of direction.
Answer:

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

Question 16.
Write the four steps of controlling process.
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.

III. Answer any 5 questions from 17 to 22, each carries 3 scores. (5 × 3 = 15)

Question 17.
Briefly explain any three techniques of Scientific Management.
Answer:

1. Method study: The objective of method study is to find out one best way of doing the job. The main objective is to minimize the cost of production and maximize the quality of the work.
2. Motion study: Motion study involves close observation of the movements of the workers and machines to perform a particular job. It helps to eliminate unnecessary movements of men, materials and machine.
3. Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.

Question 18.
Describe the three important elements of staffing.
Answer:

1. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
2. Selection: Selection is the process of selecting the most suitable candidates from a large number of applicants.
3. Training and Development: The process of training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.

Question 19.
Illustrate any three features of directing.
Answer:
Features

1. Directing initiate action
2. Directing takes place at every level of management
3. Directing is a continuous process
4. Directing flows from top to bottom

Question 20.
Briefly explain any three importance of controlling.
Answer:

1. Accomplishing organisational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action.
2. Judging accuracy of standards: A good control system enables management to verify whether the standards set are accurate.
3. Making efficient use of resources: By exercising control, a manager seeks to reduce wastage of resources.
4. Improving employee motivation: A good control system motivates the employees and helps them to give better performance.

Question 21.
Finance is the life blood of business. Explain.
Answer:
Money required for carrying out business activities is called business finance. Finance is needed to establish a business, to run it, to modernise it, to expand or diversify it.

Question 22.
How is a brand name different from trade mark? Explain.
Answer:
Brand Name: That part of a brand, which can be vocalized i.e. can be spoken is called a brand name, e.g. Asian Paints, Maggie, Lifebuoy, Dunlop, etc.

Trade Mark: A brand or part of a brand that is given legal protection against its use by other firms is called trade mark. The firm which got its brand registered with the government, gets the exclusive right for its use.

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

Question 23.
Write any four functions of middle level management.
Answer:

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.
4. Motivate them to achieve desired objectives.
5. Co-operate with other departments.
6. Reporting to top level management.

Question 24.
Math the following:

(a) Inflation rate	(i) Political Environment
(b) Customs & Traditions	(ii) Technological Environment
(c) Scientific improvements	(iii) Economic Environment
(d) Ideology of Government	(iv) Social Environment

Answer:

a) Inflation rate	(iii) Economic Environment
b) Customs & Traditions	(iv) Social Environment
c) Scientific Improvements	(ii) Technological Environment
d) Ideology of Government	(i) Political Environment

Question 25.
Write any four differences between functional and divisional strucutre of organisation.
Answer:

Functional Structure	Divisional Structure
1. Formation is based on functions	1. Formation is based on product lines.
2. Functional specialisation	2. Product specialisation
3. Difficult to fix responsibility on a department	3. Easy to fix responsibility for performance
4. It is economical	4. It is costly
5. Suitable for small organisation	5. Suitable for big organisation

Question 26.
Explain any four factors affecting the requirement of Fixed Capital.
Answer:

1. Nature of Business: A trading concern needs lower investment in fixed assets compared with a manufacturing organization.
2. Scale of Operations: An organisation operating on large scale require more fixed capital as compared to an organisation operating on small scale.
3. Choice of Technique: A capital-intensive organisation requires more amount of fixed capital than labour intensive organisations.
4. Technology Upgradation: Organisations using assets which become obsolete faster require more fixed capital as compared to other organisations.
5. Growth Prospects: Higher growth of an organisation generally requires higher investment in fixed assets.

Question 27.
Give a brief idea about any four consumer 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.

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

Question 28.
Henry Fayol propounded 14 principles of management. Explain any five among them.
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.
• Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.
• 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.
• 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.
Explain any five features of Planning.
Answer:

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 30.
Dividend decision of the Financial Management is based on certain factors. Explain any five such factors.
Answer:

1. Stability Earnings: A company having stable earnings can declare higher dividends. Otherwise, pay lower dividend.
2. Stability of Dividends: Companies generally’ follow a policy of stabilising dividend per share. Dividend per share is not altered if the change in earnings is small.
3. Growth Opportunities: Companies having good growth opportunities retain more money out of their earnings to finance the required investment. In such a case, they can declare dividend at a lower rate.
4. Cash Flow Positions: Availability of enough cash in the company is necessary for declaration of dividend.
5. Shareholders’ Preference: While declaring dividends,.managements must keep in mind the preferences of the shareholders in this regard.

Question 31.
Briefly explain any five sales promotion techniques.
Answer:

1. Rebate: Offering products at special prices, to clear off excess inventory.
2. Discount: Offering products at less than maximum retail price.
3. Refund: The seller offers to refund a part of the price paid by the customer on production of some proof of purchase.
4. Free gifts: Offering another product as gift along with the purchase of a product.
5. Quantity Gift: Offering extra quantity of the product.
6. Contests: Prize contests are organized for the consumers and winners are given attractive prizes.

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

Question 32.
Staffing is not a simple process, it involves various steps. Explain.
Answer:
Staffing Process

1. Manpower planning: It is concerned with forecasting the future manpower needs of the organisation, i.e. finding out number and type of employees need by the organisation in future.
2. Recruitment: Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply for jobs in the organisation.
3. Selection: Selection is the process of selecting the most suitable candidates from a large number of applicants.
4. Placement and Orientation: Placement refers to putting the right person on the right job. Orientation is introducing the selected employee to other employees and familiarising him with the rules and policies of the organisation.
5. Training and Development: The process of’ training helps to improve the job knowledge and skill of the employees. It motivates the employees and improve their efficiency.
6. Performance Appraisal: Performance appraisal means evaluating an employee’s current and past performance as against certain predetermined standards.
7. Promotion and Career Planning: Promotion means movement of an employee from his present job to a higher level job.
8. Compensation: Compensation refers to all forms of pay or rewards going to employees. It may be in the form of direct financial payments like wages, salaries, commissions and indirect payments like employer paid insurance and vacation.

Question 33.
Explain the elements of communication by drawing a diagram.
Answer:
Communication: Communication may be defined as an exchange of facts, ideas, opinions or emotions between two or more persons to create mutual understanding.
Elements of Communication Process

1. Sender: The sender is the person who sends message or idea to the receiver.
2. Message: Message is the subject matter of communication.
3. Encoding: It is converting the message into communication symbols such as words, pictures, etc.
4. Media: It is the path through which encoded message is transmitted to receiver.
5. Decoding: It is the process of converting encoded symbols of the sender.
6. Receiver: Receiver is the person who receives the message.
7. Feedback: It includes all those actions of receiver indicating that he has received and understood message of sender.
8. Noise: Noise means some obstruction or hindrance to communication.

Question 34.
What are the key elements of four ‘Ps’ of marketing? Explain.
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.