Kerala Plus Two Business Studies Board Model Paper 2021 with Answers

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

Kerala Plus Two Business Studies Board Model Paper 2021 with Answers

Time: 21/2 Hours
Total Score: 80 Marks

Answer the questions from 1 – 45, upto a total score of 80.

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

Question 1.
Survival, Profit and …………………. are the organisational objectives of a business.
a) growth
b) development
c) gain
d) None of these
Answer:
a) growth

Question 2.
‘One subordinate must receive orders from only one superior at a time’. Which principle of management is referred here?
a) Unity of direction
b) Equity
c) Unity of command
d) Order
Answer:
c) Unity of command

Question 3.
Granting of authority to subordinates to operate within the prescribed limits is called …………………
a) Delegation
b) Co-ordination
c) Controlling
d) Planning
Answer:
a) Delegation

Question 4.
Recruitment is a ………………. process.
a) Positive
b) Negative
c) Neutral
d) All of these
Answer:
a) Positive

Question 5.
Which among the following is a non-financial incentive?
a) Bonus
b) Profit sharing
c) Pay and allowances
d) Status
Answer:
d) Status

Question 6.
The starting point of communication process is ………………………
a) Sender
b) Receiver
c) Message
d) Encoding
Answer:
a) Sender

Question 7.
‘Only exceptional matters are to be reported to top level management’ is denoted by the term …………………..
a) Ultrawires
b) Management by exception
c) Span of control
d) Span of management
Answer:
b) Management by exception

Question 8.
The management function that ensures ‘all things are going on according to plan’ is ………………….
a) Planning
b) Directing
c) Staffing
d) Controlling
Answer:
d) Controlling

Question 9.
The apex authority to seek redressal for a consumer in India is ………………………
a) National Commission
b) District Forum
c) Supreme Court
d) State Commission
Answer:
c) Supreme Court

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

Question 10.
Briefly describe the management principle ‘Discipline’.
Answer:
Discipline: it is the obedience to organizational rules and employment agreement which are necessary for working of the organization.

Question 11.
What is environmental scanning?
Answer:
The study of various factors of business environment such as economic, social, political, legal, technological etc. is known as environmental scanning.

Question 12.
Name any two elements of delegation.
Answer:

1. Authority
2. Responsibility
3. Accountability

Question 13.
List any two merits of training to employees.
Answer:
Benefits to the Employee

1. Training helps in securing promotion and career growth.
2. Increased performance by the individual helps him to earn more.
3. Training helps to reduce the chances of accident and wastages.

Question 14.
Give any two reasons for organisational barriers of 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
c) Status: Status differences of people in communication chain also adversely affect the effectiveness of communication.
d) Complex organisational structure: If there are number of managerial levels, communication gets delayed and distorted.

Question 15.
Briefly explain any one modern technique of managerial control.
Answer:
a) Ratio Analysis: Ratio Analysis refers to analysis of financial statements through computation of ratios.

b) Responsibility Accounting: Responsibility accounting is a system of accounting in which different sections, divisions and departments of an organisation are set up as ‘Responsibility Centres’. The head of the centre is responsible for achieving the target set for his centre. E.g. Cost centre, Revenue centre, Profit centre, Investment centre, etc.

Question 16.
What is fixed capital?
Answer:
Fixed Capital: Fixed capital refers to the capital needed for the the acquisition of fixed assets to be used for a longer period.

Question 17.
List any two instruments used in a money market.
Answer:

1. Treasury Bill
2. Commercial Paper
3. Call Money

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

Question 18.
Write a note on ‘Coordination’.
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.

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 19.
Briefly explain any two features of Management.
Answer:
Characteristics/Nature of Management
a) Management is goal oriented.

b) Management is universal in character.

c) Management is multidimensional, which include

1. Management of works
2. Management of people
3. Management of operations

d) It is a continuous process.

e) It is a group activity.

f) It is a dynamic function.

g) It is an intangible force.

Question 20.
What are standing plans? Give one example.
Answer:
Standing plan: A standing plan is used for activities that occur regularly over a period of time. E.g.: Objectives, policies, procedures, methods and rules.

Question 21.
Classify the following needs into Basic Physiological, Safety needs, Belonging needs and Esteem needs:
a) Recognition
b) Friendship
c) Job Security
d) Hunger
e) Stability of Income
f) Self-respect
Answer:

a) Recognition	Types of Needs
b) Friendship	Esteem needs
c) Job Security	Belonging needs
d) Hunger	Safety needs
e) Stability of Income	Basic or Physiological
f) Self-respect	needs
a) Recognition	Safety needs

Question 22.
List any three qualities 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.

Question 23.
Breifly explain any two rights of a consumer under Consumer Protection Act.
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.

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

Question 24.
Breifly describe any two features of management as an art.
Answer:
Management as an Art: Management is an art. Art is the skilful and personal application of existing knowledge to achieve desired results.

The basic features of an art are as follows:

1. Existence of theoretical knowledge
2. Personal skill
3. Based on practice and creativity

Management can be said to be an art since it satisfies the following criteria.
a) A manager uses his personal skill and knowledge in the area of management.
b) Management is one of the most creative arts as it is concerned with getting work done through others by motivating them.
c) Like other arts, managerial efficiency is developed through practice.
That is why management can be said as an art.

Question 25.
Write short note on the following:
a) Globalisation
b) Privatisation
Answer:
a) Globalisation: Globalisation means the integration of the various economies of the world leading towards the emergence of a cohesive global economy.

Features of Globalisation:
a) Free flow of goods and services across nations
b) Free flow of capital across nations
c) Free flow of information and technology
d) Free movement of people across borders

b) Privatisation: Privatisation means transfer of the public sector enterprises to the private sector. The role of private sector is encouraged.

This can be done in two ways.
a) Disinvestment of a part of the shares held by the government in public sector units.
b) Dereservatiion of areas formerly reserved for the public sector.

Question 26.
Briefly describe any two 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)
6. It is a decision making function
7. It is a mental process

Question 27.
List any four differences between Divisional and Functional structure of organisations.
Answer:
Differences between Functional and Divisional Structure

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 28.
Explain any two on the job training methods.
Answer:
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 29.
Match the following:

A	B
a) Exchange value of a product or service	Product
b) A bundle of utilities	Promotion
c) Tools to enhance sales	Place/Physical distribution
d) Making products available to consumers	Price

Answer:

A	B
a) Exchange value of a product or service	Price
b) A bundle of utilities	Product
c) Tools to enhance sales	Promotion
d) Making products available to consumers	Place/Physical distribution

Question 30.
List any four factors effecting the working capital of a company.
Answer:

• 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.

Question 31.
Name any four protective functions of SEBI.
Answer:
Protective Functions
a) Prohibition of fraudulent and unfair, trade practices.
b) Controlling insider trading, price rigging etc. and imposing penalties for such practices.
c) Undertaking steps for investor protection.
d) Promotion of fair practices and code of conduct in securities market.

V. Questions From 32 to 40 carry 5 scores each. (9 × 5 = 45)

Question 32.
Classify the following personnels under different levels of management (Top level, middle level and lower level):
a) Chairman
b) Supervisor
c) Foreman
d) Managing Director
d) Production manager
Answer:
Top Level
a) Chairman
d) Managing Manager

Middle Level
e) Production Manager

Lower Level
b) Supervisor
c) Foreman Director

Question 33.
Draw a diagram showing the technique of functional foremanship by F.W. Tylor.
Answer:

Question 34.
What do you mean by Business Environment? Explain any two dimensions of it.
Answer:
a) Meaning of Business Environment: The term ‘business environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise, but that may affect its performance.

b)

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.

Question 35.
Draw a chart showing Divisional Structure of an organisation.
Answer:
Divisional Structure: Grouping of activities on the basis of different product manufactured are known as divisional structure of organisation. Each division has a divisional manager responsible for performance. Each division is multifunctional because within each division functions like production, marketing, finance etc. are performed together to achieve a common goal.

Question 36.
Fill appropriately as per hint given:
a) Political ideology of government – Political environment
b) Change in life style – ?
c) Consumer Protection Act
d) Stability of Government – ?
e) Change in exchange rate – ?
f) Shift from typewriters to computers – ?
Answer:
a) Political environment
b) Social environment
c) Legal environment
d) Political environment
e) Economic environment
f) Technological environment

Question 37.
Write a note on any two internal sources of recruitment.
Answer:
Internal Sources: It refers to the recruitment for jobs from within the organisation. It includes:

1. Transfer: It involves shifting of an employee from one job to another without change in responsibility or compensation.
2. Promotion: It refers to shifting of an employee from lower position to a higher position carrying higher status, responsibility and more salary.

Question 38.
State the theory of need hierarchy by Abraham Maslow.
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 39.
Illustrate the various steps in controlling process.
Answer:
Controlling Process: Controlling is a systematic process involving the following steps.
1. Setting performance standards
2. Measurement of actual performance
3. Comparison of actual performance with standards
4. Analysing deviations
5. Taking corrective action

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 40.
Match the following:

A	B
a) Selection process of employees	Policy
b) Promotion based on seniority only	Programme
c) Casual leave of 2 per month for employee	Method
d) Conference for managers	Rule
e) Time wage system	Procedure

Answer:

A	B
a) Selection process of employees	a) Procedure
b) Promotion based on seniority only	b) Policy
c) Casual leave of 2 per month for employee	c) Rule
d) Conference for managers	d) Programme
e) Time wage system	e) Method

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

Question 41.
Describe the various steps 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 42.
Explain any four external sources of recruitment.
Answer:
External Sources: Selection of employees from outside the enterprise is known as external recruitment. The important external sources of recruitment are:
1) Direct Recruitment: Under the direct recruitment, a noticd is placed on the noticeboard 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.

2) Casual callers: Many reputed business organisations! keep a database of unsolicited applicants in tneir 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.

6) Campus Recruitment: Business enterprises may conduct campus recruitment in educational institutions for selecting young and talented candidates.

7) Recommendations of Employees: Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment.

8) Labour Contractors: Labour contractors maintain close contacts with labourers and they can provide the required number of unskilled workers at short notice.

Question 43.
Briefly explain any eight management Principles 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 bejust, 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 44.
Briefly describe any eight qualities to be possessed by 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 45.
Describe the four P’s in Marketing.
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 custorrlers 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.