BUSINESS STUDIES PASSING PACKAGE- 2020

Note: (This is only for Minimum 35 Marks, Maximum 50 marks Only)

Prepared By JOY.K.V M.com
Accountancy Teacher
Chanakya Education Trust
Virajpet-571218
Contact: 9482616309
Mail:[email protected]
One marks Important Question for 10 Marks
Expand (There is one Question is asked from this category)
PERT: Programme Evaluation and Review Technique.
CPM: Critical Path Method.
MIS: Management Information System
IPO- Initial Public Offer
BSE- Bombay Stock Exchange
NSEI- National Stock Exchange of India
SEBI- The Securities and Exchange Board of India
NASDAQ- National association of securities Dealers Automated Quotations
OTCEI- Over The Counter Exchange of India
CSDL-The Central Depository Services Limited

Chapter wise all One marks Questions

1. What is Efficiency?
Efficiency means doing the task correctly and with minimum cost.
2. What is Effectiveness concerned with?
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other words, it concerned with the end result.
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Effectiveness in management is concerned with doing the right task, completing with activities and achieving goals. OR In

For Top level management: Chief executive officer (CEO)

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3. Give an example for top level/middle level/supervisory level management.

For Middle level management: Production managers

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For Supervisory or Operational level Management: Supervisors, foremen, section officers, Superintendents etc.
4. Which of the following is not a function of Management

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(a) Planning (b) Staffing (c) Cooperating (d) Controlling ►(c) Cooperating
5. Management is
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(a) An art (b) a science (c) both art and science (d) neither ►(c) both art and science

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6. The following is not an objective of management
(a) earning of profits (b) growth of the organization (c) providing employment (d) policy making ►(d) policy making
7. Policy formulation is the function of (a) Top level management (b) Middle level management (c) Operational management
(d) All of the above ►(a) Top level management
8. Coordination is (a) Function of management (b) The essence of management (c) An objective of management (d) None of
the above ► (b) The essence of management
9. Who is known as the Father of General Management? ►Henry Fayol.
10. Name any one new technique of Management developed on the basis of Principles of Management. ►Method Study,
11. Who is called the Father of Scientific Management? ►F.W Taylor
12. Who advocated separation of planning and execution functions in any organization? ►F.W Taylor.
13. What is Standardization according to Taylor?
► Standardisation refers to the process of setting standards for every business activity.
14. What is the aim of simplification according to Taylor?
►Simplification aims at eliminating unnecessary diversity of products.
15. How Simplification differs from Standardization according to Taylor?
►Simplification aims at eliminating superfluous varieties, sizes and dimensions while standardisation implies devising new
varieties instead of the existing once.
16. Who strongly advocated Piece Wage System? ►F.W Taylor.
17. What is the objective of Method Study according to Taylor?
►The objective to method study is to find out one best way of doing the job.
18. State the number of principles of management propounded by Henri Fayol. ► 14.
19. Which management principle of Fayol advocates that there should be only one boss for every individual employee?
►Unity of command

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20. Principles of management are Not (a) Universal (b) Flexible (c) Absolute (d) Behavioural ► (c) Absolute
21. How are principles of management formed? (a) In a laboratory (b) By experiences of managers (c) By experiences of
customers (d) By propagation of social scientists ► (b) By experiences of managers
22. Which of the following statement best describes the principle of 'Division of Work' (a) Work should be divided into small
tasks (b) Labour should be divided (c) Resources should be divided among jobs (d) It leads to specialisation
► (a) Work should be divided into small tasks
23. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by
this sentence under functional foremanship (a) Instruction Card Clerk (b) Repair Boss (c) Gang Boss (d) Route Clerk
► (c) Gang Boss
24. What is Business Environment?
The term business environment means the totality of all individuals, institutions, and other forces that are outside a business
but that potentially affect its performance.
25. Which of the following does not characterize the business environment?
(a) Uncertainty (b) Employees (c) Relativity (d) Complexity ► (b) Employees
25. Which of the following is an example for social environment?
(a) Money supply in the economy (b) Consumer Protection Act (c) The Constitution of the country (d) Composition of family
► (d) Composition of family
26. Liberalization means
(a) Integration among economies (b) Reduced government controls and restrictions (c) Policy of planned disinvestments (d)
None of the above ►b) Reduced government controls and restrictions
27. Which of the following does not explain the impact of Government policy changes on business and industry? (a) More
demanding customers (b) Increasing competition (c) Change in agricultural prices (d) Market orientation.
► (c) Change in agricultural prices
28. What is Planning?

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Ans: Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions
29. Which function of management involves decision making? Ans: Planning
30. State the first step in Planning Process. Ans: Setting Objectives.
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31.What is Single Use Plan?

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It was developed for a one-time project or event that has one specific objective.
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32.What is Standing Plan?
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A standing plan is used for activities that occur regularly over a period of time. It includes policies, procedures, methods rules.
33. Give an example for Single Use Plan. Ans: programmes, budgets, projects,

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34. Give an example for Standing Plan. Ans: objectives, policies,

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35. Give an example for a plan which is neither single nor standing plan. Ans: Strategy

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36.State the meaning of ‘Rule’.
Ans: Rules are the prescribed guidelines for conducting an action.
37. What is a ‘Budget’?
A budget is a plan as a statement of expected results expressed in numerical terms’
38. Which of the following statement is not correct with regard to planning?
(a) It is a mental exercise (b) It provides direction for the future actions (c) It is end function in the process of management (d)
It involves setting objectives and developing courses of actions
► (c) It is end function in the process of management
39. Which of the following is not the feature of the planning?
(a) It focuses on achieving objectives (b) It involves identification and division of work (c) It is the primary function of the
management (d) It is a pervasive function
► (b) It involves identification and division of work
40. Which of the following is an example for the single use plan?
(a) Policy (b) Procedure (c) Budget (d) Method ► (c) Budget
41. Which management function translates the plans into action? Ans: Organising.
42. What is Organisation Structure?
Ans: 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 in an organisation.
43. Which type of organisation structure is suitable for enterprises having large variety of products?
Ans: Divisional Structure
44. What is Delegation?
Delegation refers to the downward transfer of authority from a superior to a subordinate.

45. What is Authority?

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Authority refers to the right of an individual to command to his subordinates and to take action within the scope of his
position.
46. What is Responsibility?
Responsibility is the obligation of a subordinate to perform properly the assigned duty.
47. Can Accountability be delegated?
Once authority has been delegated and responsibility accepted, one cannot deny accountability.
48. When can one say that an organisation is centralized? An organisation is centralized when decision making authority is
retained by higher management levels.
49. What is Decentralisation?
Decentralisation means delegation of authority throughout all the levels of the organisation.
50. Which of the following is not an element of delegation?
(a) Accountability (b) Authority (c) Responsibility (d) Informal Organization ► (d) Informal Organization
51. A network of social relationship that arise spontaneously due to interaction at work is called (a) Formal Organisation (b)
Informal Organization (c) Decentralisation (d) Delegation ► (b) Informal Organization
52. Which of the following does not follow the scalar chain? (a) Functional Structure (b) Divisional Structure (c) Formal
Organisation (d) Informal Organization
► (d) Informal Organization
53. For delegation to be effective, it is essential that responsibility be accompanied with necessary
(a) Authority (b) Manpower (c) Incentives (d) Promotions ► (a) Authority
54. Span of management refers to (a) Number of managers (b) Length of term for which a manager appointed (c) Number of
subordinates under a superior (d) Number of members in top management
► (c) Number of subordinates under a superior
55. Grouping of activities on the basis of functions is a part of (a) Decentralized organization (b) Divisional organisation (c)
Functional organisation (d) Centralised organisation ►b) Divisional organisation
56. What is Staffing?
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Ans: Staffing is process of recruiting right people for the right job.
57. Name one internal source of recruitment. Ans: 1. Transfer 2. Promotion
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58. Name any one external source of recruitment Ans: 1. Campus recruitment 2. Advertisement
59. Mention the first step in selection process Ans: Preliminary Screening.
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60. State any one type of selection tests. Ans: 1. Intelligence Tests 2. Aptitude Test

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61. What is meant by Interview in Selection Process?
Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job.
62. What is Training?
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Training is an act of increasing the knowledge and technical skills of an employee for doing a particular job efficiently.

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63. What is the meaning of ‘Development’ in Staffing Process?
Development is the preparation of employees to meet future needs.
64. Name on-the-job training method given to plumbers, electricians or iron workers Ans: Apprenticeship Programmes.
65. State the off-the-job training method given to employees before handling sophisticated machinery and equipment.
Ans: Vestibule Training.
66. Which one of the following is not a function of staffing
(a) Recruitment (b) Training (c) Compensation (d) Directing ► (d) Directing
67. Which one of the following is an internal source of recruitment
(a)Transfer (b) Employment exchange (c)Advertisement (d) Campus recruitment ► (a)Transfer
68. Promotion of employees results in (c) Increase in job satisfaction (d) All of the above
(a) Increase in pay (b) Increase in responsibility ► (d) All of the above
69. Which of the following is On–the-Job method of training?
(a) Case study (b) Coaching (c) Vestibule Training (d) Computer modelling ► (b) Coaching
70. What is Directing?
Directing refers to giving instructions, guidance and motivation to the staff in an organization to work efficiently in order to
achieve organizational goals.
71. State any one element of Directing. Ans: 1. Supervision 2.Motivation
72. What is a ‘Motive’?
A motive is and inner state that energises, activates and directs behaviour towards goals.
73. State any one assumption of Maslow’s Hierarchical Theory of Needs.
a. People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.
74. State any one Leadership style. Ans: Autocratic Leader.
75. State any one pattern of formal communication. Ans: 1.Chian Pattern. 2. Wheel Pattern
76. Name any one type of Grapevine network. Ans: 1. Single Stand Network 2. Gossip Network

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77. Which one of the following is not an element of direction?
(a) Motivation (b) Communication (c) Delegation (d) Supervision ► (c) Delegation
78. The motivation theory which classifies needs in hierarchical order is developed by
(a) Fred Luthans (b) Scott (c) Abraham Maslow (d) Peter F. Drucker ► (c) Abraham Maslow
79. Which of the following is not an element of communication?
(a) Decoding (b) Communication (c) Channel (d) Receiver Ans: (b) Communication
80. The highest level need in the Need Hierarchy of Abraham Maslow is (a) Safety Need (b) Belongingness Need (c) Self
Actualization Need (d) Prestige Need ► (c) Self Actualization Need
81. Grapevine is (a) Formal Communication (b) Barrier to Communication (c) Lateral Communication (d) Informal
Communication ► (d) Informal Communication
82. Status comes under the following type of barriers (a) Semantic barrier (b) Organisational Barrier (c) Non semantic barrier
(d) Psychological barrier Ans: (b) Organisational Barrier
83. The software company promoted by Narayana Murthy is
(a) Wipro (b) Infosys (c) Satyam (d) HCL ► (b) Infosys
84. The process of converting the message into communication symbols is known as
(a) Media (b) Encoding (c) Feedback (d) Decoding ► (b) Encoding
85. The communication network in which all subordinates under a supervisor communicate through supervisor only is
(a) Single Chain (b) Inverted V (c) Wheel (d) Free flow ► (a) Single Chain
86. What is meant by Controlling?
Ans: Controlling means ensuring activities in an organization are performed as per the plans.
87. What is ‘Standard’ in controlling process?
Ans: Standards are the criteria against which actual performance can be measured.
88. What is Ratio Analysis?
Ratio analysis refers to analysis of financial statements through computation of ratios.

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89. Controlling function of an organisation is (a) Forward looking (b) Backward looking (c) Forward as well as backward
looking(d) None of the above ► (b) Backward looking
90. Management audit is a technique to keep a check on the performance of
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► (b) Management of the company
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(a) Company (b) Management of the company (c) Shareholders (d) Customers

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91. Budgetary control requires the preparation of (a) Training schedule (b) Budgets (c) Network diagram (d) Responsibility

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centres ► (b) Budgets
92. Which of the following is not applicable to responsibility accounting? (a) Investment Centre (b) Accounting centre (c)

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Profit centre (d) Cost centre ► (b) Accounting centre
93. What is Business Finance?
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Ans: Money required for carrying out business activities is called business finance.
94. State the primary objective/aim of financial management.
The primary aim of financial management is to maximise shareholders’
95. What do you understand by ‘Capital Structure’?
Capital structure refers to the mix between owner’s funds and borrowed funds.
96. Write the meaning of ‘Financial Risk’.
It refers to the risk of company not being able to cover its fixed financial costs.
97. Give an example for fixed asset Ans: Buildings , plant and machinery, furniture
98. Give an example for current asset. Ans: Cash in hand/Cash at Bank, Bills receivable, Debtors
99. How do you calculate Net Working Capital? Net working capital= current assets – current liabilities.
100. The cheapest source of finance is (a) Debenture (b) Equity share capital (c) Preference share (d) Retained earnings
(d) Retained earnings
101. The decision of acquiring a new machine or opening a new branch is an example for
(a) Financing decision (b) Working capital decision (c) Investment decision (d) None of the above
► (c) Investment decision
102. The decision of how much to be raised from which source is an example for
(a) Financing decision (b) Working capital decision (c) Investment decision (d) None of the above
► (a) Financing decision
103. Companies with higher growth pattern are likely (a) to pay lower dividends (b) to pay higher dividends (c) that dividends
are not affected by growth issues (d) none of the above ► (a) to pay lower dividends
104. Current assets are those assets which get converted into cash (a) within six months (b) within one year (c) between 1
and 3 years (d) between 3 and 5 ► (b) within one year
105. A fixed asset should be financed through (a) a long term liability
(b) a short term liability (c) a mix of ling and short term liabilities (d) None of the above ► (a) a long term liability

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106. What is Money Market?
Is a market for short-term funds. It deals in monetary assets whose period of maturity is less than one year.
107. What is Stock Exchange?
Are the organisations which provide a platform for buying and selling of existing securities.
108. What is the benchmark index of BSE? The SENSEX is the benchmark index of the BSE.
109. What is the benchmark index of NSE? Ans: NIFTY.
110. Name the first and the largest depository presently operational in India
National Securities Depositories Limited. (NSDL)
111. What is meant by Depository?
The depository is an organization where securities of a shareholder are held in electronic form.
112. Give the meaning of Dematerialisation.
This process of holding securities in an electronic form is called dematerialization.
113. Primary and secondary markets (a) Compete with each other (b) Complement each other (c) Function independently
(d) Control each other ► (b) Complement each other
114. The settlement cycle in NSE is
(a) T+5 (b) T+3 (c) T+2 (d) T+1 ► (c) T+2
115. The National Stock Exchange of India was recognized as Stock Exchange in the year
(a) 1999 (b) 1993 (c) 1994 (d) 1995 ► (b) 1993
116. A Treasury Bill is basically (a) An instrument to borrow short term funds (b) An instrument to borrow long term funds (c)
An instrument of capital market (d) None of the above
► (a) An instrument to borrow short term funds
117. State any one Marketing Philosophy or concept. Ans: The Production Concept.
118. Give an example for the marketing of services. Ans: Dry Cleaning, Watch repairs.
119. Give the meaning of Product?

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Product means goods or services or ‘anything of value’, which is offered to the market for sale.
120. What is Packaging?
Packaging‘ refers to designing and developing a package for a product.
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121. What is Labelling?

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Labelling refers to designing a label to be put on the package.
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122. State any one feature of convenience goods.
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Convenience products have a regular and continuous demand.
123. What is a Brand?

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Name, term, sign, design or some combination of the above used to identify the products of the seller and to differentiate
them from those of competitors.
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124. Name any one Distribution Channel. 1. Direct Channel of Distribution(Zero level)- Manufacture to Customer.
125. What do you mean by Zero Level distribution channel?
Where in the goods are made directly available by manufactures to customers, without involving any intermediary.
126. What is Publicity?
Publicity generally takes place when favourable news is presented in the mass media about a product or service.
127. State any one unfair trade practice of manufacturers and service providers by which consumers are exploited.
Ans: Defective and unsafe products, adulteration, false and misleading advertising, black marketing.
128. State any one regulation which provides legal protection to the consumers Ans: The consumer protection Act, 1986
129. In which year the Consumer Protection Act was enacted? Ans: 1986.
130. Who is a Consumer?
a person who uses or consumes goods or avails of any service.
131. Name any one redressal machinery/agency set up under Consumer Protection Act to redress consumer grievances.
Ans: District Consumer Disputes Redressal Forum or District forum.
132. What is the monetary limit of claim in District Consumer Disputes Redressal Forum? Does not exceed Rs. 20 lakhs.
134. State the monetary limit of claim in State Consumer Disputes Redressal Commission.
Ans; Exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore.
134. What is the monetary limit of claim in National Consumer Disputes Redressal Commission? exceeds Rs. 1 crore.
135. Name any one Consumer Organisation/NGO engaged in protecting and promoting consumers’ interests.
Ans: Karnataka Consumer Service Society, Bangalore.

Practical Oriented Questions With Answers: ( Easily Score 10 Marks From This Category)

1. Assuming that you are the manager of an organization, draw the neat diagram of different Levels of Management to
specify that authority responsibility relationships create different levels of management.

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2. As a general manager, list out any ten Fayol’s Principles of Management which you would like to adopt in your business
organization.
1. Division of work. 2. Authority and Responsibility. 3. Discipline 4. Unity of Command 5. Unity of Direction
6. Subordination of Individual Interest to General Interests. 7. Remuneration of Employees.
8. Centralisation and Decentralisation 9. Scalar Chain. 10 . Order
11. Equity 12. Stability of Personnel
13.Initative 14. E spirit De Corps

3. Show the different Elements of Business Environment that influence the success of business Enterprises with a neat
diagram.

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4. As a manager what logical steps you follow in Planning process before executing a project?

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1. Setting objectives 2. Developing Premises. 3. Identifying alternative courses of action 4. Evaluating alternative courses 5.
Selecting the best possible alternative 6. Implementing the plan 7. Following action

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5. Draw the Organization Chart showing Divisional and Functional Structure.

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6. As a HR manager, list out any ten sources of recruitment, to fill in the vacancies in your organization.
1. Direct Recruitment 2. Casual Callers3. Advertisement 4. Employment Exchange
5. Placement Agencies and Management Consultants. 6. Campus Recruitment 7. Recommendations of Employees 8. Labour
Contractors 9. Advertising on Television 10. Web Publishing
7. Draw the neat diagram of Maslow’s Need Hierarchy. (Triangular diagram)

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8. As a manger of an organization, what are the modern techniques of controlling you would like to adopt?
1. Return on investment 2. Ratio analysis 3. Responsibility accounting 4. Management audit 5. PERT and CPM

Two Marks Important Questions: (Easily Score More Than 8 Marks)

Note : (First study Principles of Management Chapter because there are two question asked from this chapter)

1. Give the meaning of Mental Revolution as propounded by Taylor.

Taylor called for complete mental revolution on the part of both management and workers. It means that management and
workers should transform their thinking.
2. What is Discipline according to Fayol?
Discipline Is the obedience to organizational rules and employment agreement, which are necessary for the working of the
organisation.
3. What is Gang Plank?
Gang Plank is a shorter route of communication in scalar chain between the same level employees in case of emergencies.
4. What is Scalar Chain?
The formal lines of authority and communication between superiors and subordinates from the highest to the lowest ranks is
known as scalar chain.
5.State any two aspects of work study according to Taylor.
-Time study and Motion Study.
6. Give the meaning of principles of Management?
Principles of management are broad and general guidelines for managerial decision-making and behaviour.
7.What is Scientific Management?
Scientific management implies the application of scientific method of study and analysis to the problems of management.
8.What do you meant by division of work according to Fayol?
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Divide any work into small jobs ,each job should be performed by a specialist.
9. What is meant by Unity of Command ?
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There is should be only one boss for every individual employee.
10.What is Functional foremenship?
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It is a form of organization which involves supervision of a worker by several specialist foremen.

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11. State any two nature of Principles of Management
1. Universal applicability
2. Flexible
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12. State any two differences between Unity of command and Unity of Direction

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Basis Unity of Command Unity of Direction
1.Aim Prevent dual subordination Prevent overlapping of activities
2.Affect It affects an individual It affects the entire
employee organisations.
13. What is Consumer Protection?
Consumer protection refers to protecting the consumer against anti‐consumer trade practices by the producers or sellers.
14. State any two reasons to emphasise the importance of consumer protection from Consumers’ point of view.
1. Consumers Ignorance: 2. Unorganized Consumers:
15. State any two reasons to emphasise the importance of consumer protection from the point of view of Business.
1. Long term Business Interest: 2. Business uses Resources of Society: 3. Social Responsibility:
16. Write any two Consumer Rights. 1. Right to Safety: 2. Right to be Informed
17. Who can file a complaint before the appropriate consumer forum?
1. Any consumer. 2.The central or state government.

Definitions:
18.Define Management.
Ans: “Management is the process of working with and through others to effectively achieve the organizational objectives by
efficiently using limited resources in the changing environment.” by Kreitner
19.Define Organizing.
Ans: Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships
among them. “By Theo Haimman”

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20. Define Motivation
‘Motivation means a process of stimulating people to action to accomplish desired goals’ - William Scott
21.Define Leadership
Leadership is the activity of influencing people to strive willingly for group objectives. – George Terry
OR Leadership is the ability of a manager to induce subordinates to work with confidence and zeal’ - Koontz and O’ Donnell
22. Define Managerial Control.
“Management control seeks to compel events to confirm to plans’ - Billy E .Goetz
23.Define Marketing.
According to the American Marketing Association, “ Marketing is the process of planning and executing the conception,
pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organisational
objectives’’.
24.Define Marketing Management.
Philip Kotler has defined Marketing management as the art and science of choosing target markets and getting, keeping and
growing customers through creating, delivering and communicating superior customer values of management.

4.Marks Questions Study only these questions can score easily 12 Marks:

1. Discuss the significance of Principles of Management by explaining any four points.

1. Providing Managers with Useful Insights into Reality: When managers follow principles it adds to their knowledge, ability
and understanding of managerial situations and circumstances. This
improves managerial efficiency.
2. Scientific decisions: Decisions must be based on facts, thoughtful and justifiable in terms of intended purpose. Management
principles must be timely, realistic and subject to measurement and evaluation..

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3. Optimum utilization of resources and effective administration: The resources with the company are limited. Optimum
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utilization of resources means maximum benefit with minimum cost.

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4. Management Training, Education and Research These principles provide basic groundwork for the development of

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management as a subject. Professional courses like BBA, MBA also teaches these principles as part of their curriculum.

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2. Explain the Principles of Management contributed by F.W. Taylor.
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SCIENTIFIC MANAGEMENT
Scientific management implies the application of scientific method of study and analysis to the problems of management.

Principles scientific of Management

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Taylor is considered as the father of scientific management.

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1. Science, not rule of Thumb: There should be scientific study and analysis of each element of a job in order to replace the

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old rule of thumb approach or hit and miss method.
2. Harmony, Not discord: There should be complete harmony between management and workers I achieving organizational
goals.
3. Co-operation, Not Individualism There should be complete co-operation between the labour and the management instead
of individualism Management should consider all good suggestions made by the employees which can help in cost reduction.
4. Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity: To maximize production all
possible efforts are made to increase the efficiency of workers. Each person should be scientifically selected.

3. Explain any four nature of Principles of Management.

1. Universal applicability : The principles of management are intended to apply to all types of organizations, business as well
as non-business, small as well as large, public sector as well as private
sector, manufacturing as well as the service sectors.
2. General guidelines They are general guidelines to action but do not provide straight solution to all managerial problems, as
the business situations are complex and dynamic.
3. Flexible These principles are not rigid and can be adapted and modified by the practicing managers depending upon the
situation.
4. Mainly behavioural Management principles aim at influencing behaviour of human beings. Therefore, principles of
management are mainly behavioural in nature.

4. What are the four aspects of work study developed by Taylor? Explain.
Four aspects of Work Study is
(a)Time Study It determines the standard time taken to perform a well-defined job.
(b)Motion Study Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions.

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(c)Fatigue Study Fatigue study seeks to determine the amount and frequency of rest intervals in completing a job
(d) Method Study The objective of method study is to find out one best way of doing the job

5. Explain any four features of Business Environment.

1.Totality of external forces: Business environment is the sum total of all the forces and factors external to a business firm.
2. Dynamic: Business environment is dynamic in which it keeps on changing with the change in technology, shift in consumer
preferences etc.
3. Uncertainty: Business environment is largely uncertain, as it is difficult to predict the future happenings. Such as, frequent
environmental changes in the field of technology and fashion industry.
4. Relativity: Business environment is a relative concept whose impact differs from country to country, region to region and
firm to firm

6. Explain any four points to explain how important the understanding of Business Environment for managers is.
1. It helps the firm to identify threats and early warning signals. Environmental awareness can help managers to identify
various threats and to take steps in time to face them. Eg.: Chinese product , Entry of
2.I t helps in tapping useful resources Environment scanning helps the producers to collect in advance the required raw
materials to meet the changes in demand.
3. It helps in coping with rapid changes. All types of enterprises are facing rapid changes in their environment effectively cope
with these changes; suitable courses of action.
4.It helps in improving performance The business enterprise that continuously monitor their environment and adopt suitable
business practices can improve their present and future performance.

7. Explain any four challenges that were to be faced by business and industry due to changes in Government Policy.
1. Increasing Competition: Changes in the rules of industrial licensing and entry of foreign firm’s Indian market has increased
market competition in India.
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customer wider choice of quality products at reasonable price.
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2. More Demanding Customers: Well-informed customers are more demanding. Increased competition in the market gives

grow in the market.

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3. Rapidly Changing Technological Environment: Increased competition forces the firms to develop new ways to survive and

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4. Necessity for Change: After 1991, the market forces have become turbulent, as a result of which the enterprises have to

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continuously modify their operations.
5. Need for Developing Human Resources: The changing market conditions of today requires people with higher competence
and greater commitment.
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8. Explain any four Rights of consumers.
1. Right to Safety: Consumer has the right to be protected against products, & services which are hazardous to health & life.
E.g. ISI certification for electronic items.
2. Right to be Informed: Consumer has right to have complete information about the product before buying it.
3. Right to choose: Consumer has a right to choose any product out of the available products as per his/ her own interests. 4.
Right to be heard: Consumer has the right to file a complaint to be heard in case of dissatisfaction with goods or services

9. 16. State any four responsibilities of consumers while purchasing, using and consuming goods and services.
1. Be aware about the various products available in the market so that an intelligent and wise choice can be made.
2. Buy only standardized goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on
food products, Hallmark on jewellery etc.
3. Follow instructions related to the product and learn about the risks associated with products, and use it safely.
4. Read labels carefully to gain information about prices, net weight, manufacturing and expiry dates, etc.

10. State any four directions which can be issued by the consumer court to the opposite party.
1. Remove the defect in goods or deficiency in service.
2. Replace the defective product with a new one , free from any defect.
3. Refund the price paid for the product, or the charges paid for the service.
4. To pay punitive damages in appropriate circumstances.

11. State any four functions of Consumer Organizations and NGOs for the protection and promotion of consumer interests.
1. Educating the general public about consumer rights by organising training programmes seminars and workshops.
2. Publishing periodicals and other publications to impart knowledge about consumer protection

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3. Providing legal assistance to consumers by way of providing aid, legal advice etc.
4. Filing complaints in appropriate consumer courts on behalf of the consumers

8.Marks Important Questions Only ( Score upto 20 marks easily)

Chapter 1: Study these Question:

1. Explain the characteristics or Features of Management
Meaning: Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
Characteristics of Management:
I. Management is a goal-oriented process:
It is a tool which helps use of human & physical resources to full fill the pre-determined goals.
III. Management is multidimensional: Management is a complex activity that has three main dimensions:
a) Management of work: Each and every organisation exists for performing some work. Management translates this work in
terms of goals to be achieved and assigns the means to achieve it.
(b) Management by people: “getting work done through people “ is still a major task for the manager. Managing people has
two dimensions.
(c) Management by operation: Through management, the operational inputs (material and technology) are transformed into
desired output (goods and services) for customers.
IV. Management is a continuous process: It consisting of series o functions like, planning, organising, staffing and controlling.
V. Management is a group activity: Every member of the group has different purpose to join the organisation.
VI. Management is a dynamic function: It has to adapt itself to its changing external environment, which consists of various
social, economic and political factors.
VII. Management is an intangible force: It cannot be seen but its presence can be felt from the way organization functions.
Conclusion: Management is the process of getting things done with the aim of achieving goals effectively and efficiently it
involves
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2. Management is a series of continuous interrelated functions’- Comment.

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Meaning: Management is the process of getting things done with the aim of achieving goals effectively and efficiently.
Explanation:

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1.Planning : Setting objectives and targets and formulating an action plan. It bridges the gap between where we are and
where we want to reach.
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the resources required to perform a specific plan.

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2. Organising: Involves assigning duties, grouping tasks, establishing authority and responsibility relationships and allocating

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3. Staffing : Finding and placing the right person for the right job at the right time. It involves recruitment, selection,

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placement, induction and development of employees.

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4. Directing : Refers to leading, influencing, motivating the staff chosen to perform the assigned task efficiently and
effectively.
5. Controlling : Refers to monitoring organizational activities towards the attainment of organizational goals. Conclusion :
Management is a series of continuous inter-related functions. Each one of them performed to guide and direct the efforts of
others.

Chapter: 6(staffing): Study these Question:

3. Describe the steps involved in Selection Process

Meaning of Selection: Selection is the process of identifying and choosing the best person out of a number of prospective
candidates for a job.
1. Preliminary Screening: Preliminary screening helps the manager eliminate unqualified or unfit job seekers based on the
information supplied in the application forms.
2. Selection Tests: These tests include:
(a) Intelligence Tests: It tests a person’s ability to make decisions and adjustments.
(b) Aptitude Tests: It is a measure of individuals potential for leaning new skill.
(c) Personality Tests: personality tests provide clues to a person’s emotion.
(d) Trade Tests: It measures the existing skills of an individual.
(e) Interest Tests: It allows to know the Pattern of interests and involvement of a person.
3. Employment Interviews: It is an in-depth formal conversation conducted to find out suitability of the candidate for a
specific post, to seek more information about the candidate.
4. Reference Checks: They conduct a search into candidate’s family background, past employment, education, police records
etc.

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5. Selection Decisions: A list of candidates who clear the tests and interviews are generally considered for the final selection
based on managers opinion.
6. Medical/Physical Examination: • A medical expert or a certified clinic appointed by organization has to certify whether the
candidate is physically fit to the requirements of a specific job.
7. Job Offer: After selection procedure and medical examination, he/she is formally appointed by issuing him an Appointment
Letter.
8. Contract of Employment: • After getting the job offer, the candidate has to give his acceptance. • Both employer and
employee has to sign a contract of employment.

4.Explain the four methods of On-the-Job and any four methods of Off-the-Job training
(A) On the Job Method: It means learning while doing.
1. Apprenticeship Programme: • Apprenticeship programmes put the trainee under the guidance of a master worker.
2. Coaching In this method, the superior guides and instructs the trainee as a coach.
3. Internship Training: The educational institutes enters into a contract with business firms providing practical knowledge to
its students by sending them to business organizations for gaining practical experience.
4. Job Rotation: • This kind of training involves shifting the trainee from one department to another or from one job to
another.
(B) Off the job methods: This is concerned with imparting training to employees outside the actual work place. They are:
1. Class Room Lectures/Conferences: The lecture or conference approach is well adapted to conveying specific information
and rules, procedures or methods.
2. Films: They can provide information and explicitly demonstrate skills that are not easily represented by the other
techniques.
3. Case Study: cases are developed from the actual experiences of organisations, cases represent attempts to describe, as
accurately as possible real problems that managers have faced.

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4. Vestibule Training: Employees learn their jobs on the equipment they will be using, but the training is conducted away from
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the actual work floor.

5. Explain the stages in Staffing Process

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Meaning: Staffing is process of recruiting right people for the right job.

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1. Estimating Manpower Requirement: It involves forecasting and determining the number and kind of manpower required
by the organization.
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jobs in the organisation.
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2. Recruitment: It May be defined as the process of searching for prospective employees and stimulating them to apply for

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3. Selection: • It is the process of choosing and appointing the right candidates for right job in an organization by conducting
various exams, tests and interviews.
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4. Placement and Orientation:
• Orientation: is, thus, introducing the selected employee to other employees and familiarising him with the rules, regulations
and policies of the organisation.
• Placement: refers to the employee occupying the position or post for which the person has been selected.
5. Training and Development:
Training is an act of increasing the knowledge and technical skills of an employee for doing a particular job efficiently.
Development refers to the learning opportunities designed to help employees grow.
6. Performance Appraisal: It means evaluating an employee’s current and/or past performance as against certain
predetermined standards.
7. Promotion and Career Planning: Promotion means being placed in positions increased responsibility.
8. Compensation: Compensation refers to all forms of pay, It includes.
I. Direct financial payment (Salary, wage, incentives, bonus etc.) II. Indirect payment (Insurance, PF etc)

Chapter: 10 (Financial Markets)

6. Explain the functions of Securities and Exchange Board of India.

Functions of Securities and Exchange Board of India:
A. Regulatory Functions:
1. Registration of brokers and sub-brokers and other players in the market.
2. Registration of collective investment schemes and mutual funds.
3. Regulation of stock brokers, portfolio exchanges, underwriters and merchant bankers and the business in stock exchanges
and any other securities market.
4. Regulation of taken over bids by companies.

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5. Calling for information by undertaking inspection conducting enquiries and audits of stock exchanges and intermediaries.
B. Development Functions
1. Training of intermediaries of the securities market.
2. Conducting research and publishing information useful to all market segments.
3. Undertaking measures to develop the capital markets by adopting a flexible approach.
C. Protective Functions
1. Prohibition of fraudulent and unfair trade practice like making misleading statements, manipulations, etc.
2. Controlling insider trading and imposing penalties for such practices.
3. Undertaking steps for investor protection.
4. Promotion of fair practices and code of conduct in securities market.

7. Difference between Capital Market and Money Market (Preparatory 2020,and this Question not in question Bank)
(i) Participants: The participants in the capital market are financial institutions, banks, corporate entities, foreign investors and
ordinary retail investors from members of the public. Participation in the money market is by and large undertaken by
institutional participants such as the RBI, banks, financial institutions and finance companies.
(ii) Instruments: The main instruments traded in the capital market are – equity shares, debentures, bonds, preference shares
etc. The main instruments traded in the money market are short term debt instruments such as T-bills, trade bills reports,
commercial paper and certificates of deposit.
(iii) Investment Outlay: Investment in the capital market i.e. securities does not necessarily require a huge financial
outlay. In the money market, transactions entail huge sums of money as the instruments are quite expensive.
(iv) Duration: The capital market deals in medium and long term securities such as equity shares and
debentures. Money market instruments have a maximum tenure of one year, and may even
be issued for a single day.
(v) Liquidity: Capital market securities are considered liquid investments because they are marketable on

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the stock exchanges. Money market instruments on the other hand, enjoy a higher degree of liquidity as there is formal
arrangement for this.

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(vi) Safety: Capital market instruments are riskier both with respect to returns and principal

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repayment. Issuing But the money market is generally much safer with a minimum risk of default.
(vii) Expected return: The investment in capital markets generally yield a higher return for investors than
the money markets.
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Chapter 5: Organising
8. Explain the importance of Organizing.
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Meaning of Organising: Organizing refers to the process of identifying and grouping various activities and bringing together

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physical, financial and human resources and establishing productive relations among them for the achievement of specific
goals.
1. Benefits of specialization: The division of work into smaller jobs reduces workload and enhance productivity and repetitive
performance leads to specialization.
2. Clarity in working relationships: • Organising helps in defining all the jobs and also clarifying the limits of authority and
responsibility of each job.
3. Optimum utilization of resources: • Organisation leads to usage of all natural resources, financial resources and human
resources.
4. Effective Administration: Clarity in working relationships enables proper execution of work, which results ineffective
administration.
5. Adaption to Change: • The process of organising is flexible which allows a business enterprise to accommodate changes in
the business environment.
6. Development of Personnel: • A well designed organization structure encourages initiative and relative thinking on part of
the employees.
7. Expansion and growth: • Organising helps in growth & diversification of an enterprise. • By adding more job positions,
departments, products lines, new geographical territories etc.

Some Important Four Marks Questions:

1. Importance of Planning
2. Limitations of Planning
3. Explain four types of Plan
4. Explain briefly the steps in controlling process

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5. Explain any five importance of controlling.
6. Explain the Limitations of controlling.
7. Explain the different types of tests
8. Explain the benefits of training
9. Explain internal and external sources of recruitment with advantages and disadvantages.
10.Financial Management chapter: (Study all the questions, there is two, 4 marks question can be asked from this chapter.)
11.Explain the advantages and limitations of Advertising.
12. What is price explain the factors affecting price determination
13. Explain the elements of Marketing Mix.
13. What is marketing? Briefly explain the six functions of Marketing.
14. Explain briefly any four differences between selling and marketing.
15. Explain any four factors affecting dividend decisions.
16. Explain any four factors affecting the fixed capital requirement of an organisation
17. State any four considerations to be kept in mind while choosing a brand name.

Some Important Two Marks Questions:

1.State any two features of Planning.
2. Differentiate between Delegation and Decentralisation by taking any two factors as basis.
3. State two Limitations of external sources of recruitment.
4.What do you understand by supervision?
5. What is budgetary control?
6. State the twin objectives of Financial Planning.
7. Name the two depositories working in Indian financial markets.
8. How do you describe marketing mix?
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9.Write any two types of planning.
10.Write any two elements of direction.
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11. Write two techniques Managing control?
12.What is dividend decision?
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13. What does the span of management refers to?
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14. Give the meaning of recruitment
15.State the meaning of formal organisation.

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16. Mention any two traditional technique Of controlling.

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17.Give the meaning of Investment decision with an example.

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18. What is money market?
19.Give the meaning of durable products
20.what do you understand by financial management?
21.Name any two types of selection tests.
22. What do you understand by supervision?G
23. Give the meaning of Programme
24. state any two merits of external sources of recruitment.
25. state any two features of Leadership
26. Write any two differences between primary and secondary market.
27. What is Financial leverage ? Write the formula to calculate financial leverage.
28. Write any two objectives of sebi
29. Compare and contrast between authority and Accountability with any two points.
30. What is Job rotation?
31.State any two Psychological barriers of communication
32. Give the meaning of investment decision with example

Dedicating This Quick passing package to all Karnataka Students....

The Fear of the Lord is the Beginning Wisdom., -Holy Bible

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