Kerala Plus Two Business Studies Question Paper March 2022 with Answers

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.