PRE BOARD-II EXAMINATION Business Studies MODEL ANSWER Q.1 Ans. (d) Coordination integrates group efforts. Q.2 Ans. (b) Management as an Art Q.3 Ans, (b) (i). (i), (iv), (ii) Q.4 Ans. (c) Esprit De Corps Q.5 Ans, (d) Business Environment enables firm to identify opportunities and in get first mover advantage. Q.6 Ans, (a) Planning reduces overlapping and wasteful activities. 7 Ans. (a) Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of (A) Q8 Ans. (c} Delegation Q.9 Ans. (a) Only (i) and (ii) Q.10 Ans. (c) Aptitude Test and Personality Test Q.11 Ans. (d) Ensuring order and discipline Q.12 Ans, (b) Statement Il is correct and Statement | is not correct. Q.13 Ans. (a) formal communication Q.14 Ans. (d) Comparing Actual Performance with Standards Q.15 Ans. (c] High earnings, high cash flows, stable earnings and lower growth opportunities Q.26 Ans. (c) Regulatory framework Q.17 Ans. (d) Primary market Q.18 Ans. (4) Controlling insider trading and imposing penalties for such practices. Q.19 Ans. (a) Product ,Price , Place and Promotion 0.20 Ans. (c) The legal framework in India requires the manufacturers to provide the information such as ingredients of the product, on the package and label of the product. 0.21 Ans, (i) identify opport. and first mover advtag, ".it was the first to recognize the need for small cars.” (ii) Assisting in planning and policy formulation. "...think afresh about bow to deal with the situation," (iti) Helps in improving performance. “future of an enterprise is... performance of an enterprise." Q.22Ans. Causes of deviation Corrective action to be taken 1. Defective material___| Change the quality specification for the material used 2. Defective machinery _| Repair the existing machine or replace the machine ifit cannot be repaired 3. Obsolete machinery _| Undertake technological up gradation of machinery .23 Ans. (a) (i) Bread: Small-The product is sold for cash and production cycle is short i, quick cash turnover. (i) Sugar: Large- The ratio of cost of raw material to the total cost of production is quite high and the availability of raw material (sugarcane) is seasonal. (il) Coolers: Large -Itis a seasonal product. It requires large amount of working capital to store the output during the non-season period. OR (b) Decisions Shyam should take to ensure low investment in fixed capital requirement with respect t (i) Nature of Business: Instead of setting up a manufacturing unit, Shyam should start a trading concern of buying handicrafts from the craftsmen and selling them. ) Scale of operations: Shyam should keep the scale of his organization small. Iii) Financing alternatives: A developed financial market may provide for leasing facilities. So instead of making outright purchase of assets, for example of office space, Shyam should take them on lease and reducehis requirement of fixed capital, Q.24 (a) Ans. | Krishna Ltd, ___| Marketing concept Customer Heed —___Radhik | Selling concept _ Philosophies of marketing Selling and Promotio: OR (b) Ans. Important decisions related to the element of marketing mix (EXPLAIN) |. Branding 2. Packaging 3. Labelling Q.25 (a) Ans. Management Importance of Management (EXPLAIN ANY 3) {i) helps in achieving group goals (i) increases efficiency (ii) creates a dynamic organization {) helps in achieving personal objectives _(v) helps in the development of society oR (b) Coordination Features OF Coordination (EXPLAIN ANY 3) (i) integrates group efforts (i) ensures unity of action (ii) continuous process (iv) allpervasive function —_(y) is the responsibility of all managers (Wi) is a deliberate function Q.26 (a) (i) Method Study- EXPLAIN (ii) Motion Study. EXPLAIN oR (b) (i) Science not Rule of Thumb- EXPLAIN (ii) Equity- exPLain Q.27 Ans. (a) Strategy {b) Three dimensions of Strategy with quotes. (i) Determining long term objectives- “C Ltd. sets its long-term objective... new features to their product” (ii) Adopting a particular courses of action- “adding new features... new technological advancements” ii Allocating resources necessary to achieve the objective- “the company raises 100 crore by issuing. 2.40000 Q.28 Ans. Earnings per share (EPS) = 4 x = 00,000 Earnings per share (EPS) = , PerttaterTas PBIT = Profit before Tox - interest Profitater Pax . 4 = ——~so000 = 4,00,000 + 4,00,000 Profit ofter Tax = 4 X 60000 = 2,40,000 Let Profit before Tox = x—0.40x = 2,40,000 0.60x = 2,40,000 RO! = 8% ‘As ROI (8%) < Rate of interest (1076), the company’s EPS falls down because of use of debt, Le. unfavorable leverage. Thus, the finance manager Gaurav was NOT justified in making this recommendation, finan 29 Ans. (a) Shares, debentures, bonds (b) Capital market is expected to give a better return in a buoyant economy as: (i) Securities are held for a longer duration (ji) There is a scope of earning capital gains on shares (c) Why and how safe are the securities in this market as compared to money market? Q.30 Ans. (a) Right to seek Redressal- EXPLAINsller in the Consumer court q (b) Mohit cannot file a complaint against th Warranty was on verbal communication and no supporting, (c) Functions that the consumer association (ANY 2) 4. Educating the general public about consumer Hgts hy argantsing Walling preg 2, Publishing periodical and other pub feliely avatlable gnud other mations at mterest Carrying out comparative lesting of consume products tn accredit competing brands and publishing the test results for the benefit of consumers 4, Encour Hy protest and | ys unscrupulod trade practices of sellers he den valedge alyout cons tions ta tnypart k diner prolilenns, level reporting, sboratirie Lo Leet relative qualities of yg consumes 10 sL108 ‘i tion aya exploitative and unfair 5. Providing ley to consumers by way of providing ald, legal advice ete. in eli legal eennedy 6. Filing complaints in appropriate con courts on behalf of the consumers 7. Taking an initiative in bling case's in consumer Courts th the interest of the general public, not for any individual, Q.31 Ans. (a) Divisional Structure, because Divisional structure Is sul Where a large variety of products are manufactured using differe organisation grows and needs to add more employees, ert management, it will decide to adopt a divisional {b) Advantages of Divisional Structure (ANY 2) 1. Product specialisation helps in the development of v higher positions. 1 ble for those busin t productive t enterprises uncer, When an ore departments and introduce new levels of vate ructure, eal skill ya divisional he gainy experience in all fant ble for profits, as revenues and cos to dilte can by éasily identified and assigned to them, This provides 4 proper bast for performance ent Labo helps in fixation of responsibility in cases of poor performance of the divisio taken 3. promo id e110 a particular product Divisional heads are account id appropriate remedial action can be +s Hexibility and initiative because eacl division function decision makin anv autononrous anit which beads tof 4, (facilitates expansion and growth as new divisions can be added without Inter merely adding another divisional head and staff for the new product live. Disadvantages of Divisional Structure (ANY 2) 1, Conflict may arise among different divisions with reference to allocation of funds and furth division may seek to maximise its profits at the cost of other division 2. Itmay lead to increase in casts since there may be a duplication of activities actos products, Providing ¢ division with separate set of similar functions increases expenditure, 3. It provides managers with the authority to supervise all activities related to a particular diviston, In cou time, such a manager may gain power and in a bid to assert his Independence may ignore organtsational interests. ipting, the iting, operations by a particular Q32 Ans (a) on-the-Job method of training (EXPLAIN ANY 1) (i) Apprenticeship Programmes. (ii) Coaching (ii) Internship Training (iv) Job Rotation off-the-Job method of training (EXPLAIN ANY 1) (i) Class Room Lectures/Conferences (i) Films {Ii Case Study (iv) Computer Modelling (v) Vestibule Training (vi) Programmed Instruction Benefits of training to the employees. (EXPLAIN ANY 3) _ 1. Improved skills and knowledge due to training lead to better career of the individual, 2. Increased performance by the individual help him to earn more, 3. Training makes the employee more efficient to handle machines, Thus, less prone to accidents. 4, Training increases the satisfaction and morale of employee: OR (b) (i) AdvertisementAdvantage of Advertisement- more information about the organisation and job can be given in the tisernent. Advertisement gives the management a wider range of candidates from which to choose. Disadvantage of Advertisement: is that it may bring in a flood of response, and many times, from quite unsuitable candidates. adver {il) Other external sources of recruitment for casual vacancies of unskilled or semi-skilled jobs. (EXP ANY 3) 1, Direct Recruitment 2. Casual Callers 3. Employment Exchange _4. Labour Contractors 5. Recommendations of Employees 33 (a) Semantic barriers (EXPLAIN ANY 6) (i) Badly expressed message (ii) Symbols with different meanings i) Faulty translations (iv) Unclarified assumptions _(v) Body language and gesture decoding (vi) Technical jargon: OR (b) EXPLAIN (i) Autocratic or Authoritarian leader (li) Democratic or Participative leader Q.34, (a) Marketing Mix- EXPLAIN (b) Elements of this Marketing Mix (EXPLAIN) 1.Product 2, Price 3, Place 4, Promotion