Kerala Plus Two Business Studies Question Paper March 2023 with Answers

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.