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Business Studies Foreign Set 3 2013-2014 CBSE (Arts) Class 12 Question Paper Solution

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Business Studies
Foreign Set 3
2013-2014 March
Marks: 90

[1]1

Explain how 'cost of debt' affects the choice of capital structure of a company

Concept: Concept of Capital Structure
Chapter: [2.01] Financial Management
[1]2

What is meant by financial management?

Concept: Concept of Financial Management
Chapter: [2.01] Financial Management
[1]3

‘Maintaining labour relations and union-management relations’ is one of the specialised activities performed by Human Resource Management. Mention any two other specialised activities of Human Resource Management.

Concept: Staffing as a Part of Human Resource Management
Chapter: [1.02] Staffing
[1]4

Give any two characteristics of 'Organisational Climate' that influence the behaviour of individuals and act as a non-financial incentive?

Concept: Motivation - Financial and Non Financial Incentives
Chapter: [1.03] Directing
[1]5

What is meant by ‘Feedback’ in the concept of communication?

Concept: Concept of Communication
Chapter: [1.03] Directing
[1]6

Why employees become lethargic when the organisation uses internal sources of recruitment? State.

Concept: Staffing - Recruitment Process
Chapter: [1.02] Staffing
[1]7

Give the meaning of 'accountability' as an element of delegation

Concept: Elements of Delegation
Chapter: [1.06] Organising
[1]8

What is included in ‘Technological Environment’ of business? State.

Concept: Concept of Business Environment
Chapter: [1.08] Management and Business Environment
[1]9

What is meant by ‘Management of Operations’? 

Concept: Levels of Management
Chapter: [1.04] Nature and Significance of Management
[1]10

Give the meaning of ‘Procedure’ as a type of plan.

Concept: Concept of Planning
Chapter: [1.05] Planning
[1]11

Define organization as a structure.

Concept: Structure of Organisation
Chapter: [1.06] Organising
[1]12

What is determined by ‘Fatigue Study’?

Concept: Techniques of Taylor’s Scientific Management
Chapter: [1.01] Principles of Management
[3]13

Crackers Ltd., a firecracker-manufacturing company, launched some new products on the eve of Diwali, which attracted many buyers. To meet the increased demand, the company employed children from nearby villages. Although the product was in great demand, appropriate safety warnings for use were not mentioned in the packets that led to many accidents.

  • Identify and explain the important product-related decision that was not taken into consideration by the company
  • Also, identify any two values that were violated by the company.
Concept: Product - Labelling
Chapter: [2.03] Marketing Management
[3]14

How are consumer grievances redressed by the three-tier machinery under Consumer Protection Act, 1986? Explain.

Concept: Legal Redressal Machinery Under Consumer Protection Act 1986
Chapter: [2.04] Consumer Protection
[3]15

Kavya is working in a company on the permanent basis. As per the job agreement she had to work for 8 hours a day and was free to work overtime. Kavya worked overtime. But even after working for long hours and putting in her best efforts, no recognition was given to her by her boss. Due to overtime she fell ill and had to take leave from her work. No one showed concern and enquired about her health. She realised that she was fulfilling only some of her needs while some other needs still remained to be fulfilled.

1) Identify and explain the needs of Kavya discussed in the above para, by quoting the lines.

2) Also explain two other needs of Kavya followed by the above needs, which still remained to be satisfied

Concept: Maslow’s Hierarchy of Needs
Chapter: [1.03] Directing
[3]16

Explain briefly any three semantic barriers to communication

Concept: Concept of Communication
Chapter: [1.03] Directing
[3]17

The financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.’ Explain any three such functions

Concept: Concept of Financial Markets
Chapter: [2.02] Financial Markets
[3]18

Explain briefly any two points of importance of consumer protection from the point of view of the business.

Concept: Concept of Consumer Protection
Chapter: [2.04] Consumer Protection
[4]19

Give the meaning of ‘Investment’ and ‘Dividend’ decisions of financial management.

Concept: Financial Decisions - Financing and Dividend
Chapter: [2.01] Financial Management
[4]20

Mega Ltd. was manufacturing water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analysed the reasons of less revenues. After analysis, the company decided

1) to reduce the labour cost by shifting the manufacturing unit to a backward area where
labour was available at a very low rate.

2) to start manufacturing solar water-heaters and reduce the production of electric
water-heaters slowly.

This will not only help in covering the risks but also help in meeting other objectives too.

a) Identify and explain the objectives of management discussed above.

b) State any two values which the company wanted to communicate to the society.

Concept: Objectives of Management
Chapter: [1.04] Nature and Significance of Management
[4]21

Giving any four points, explain the impact of government policy changes on Business and Industry.

Concept: Impact of Government Policy Changes on Business with Special Reference to Liberalization, Privatization and Globalization in India
Chapter: [1.08] Management and Business Environment
[4]22

How is the training of employees beneficial for the organisation? State by giving any four reasons.

Concept: Concept of Training and Development
Chapter: [1.02] Staffing
[5]23

State any three limitations of planning

Concept: Limitation of Planning
Chapter: [1.05] Planning
[5]24

Principles of Taylor and Fayol are mutually complementary. One believed that the management should scientifically select the person and the work assigned should suit his/her physical and intellectual capabilities, while the other suggested that the work can be performed more efficiently if divided into specialised tasks. Identify and explain the principles of Fayol and Taylor referred to in the above para.

Concept: Fayol’s Principles of Management
Chapter: [1.01] Principles of Management
[5]25

Differentiate between 'capital-market' and 'money-market' on the basis of:

Safety;

Concept: Types of Financial Markets
Chapter: [2.02] Financial Markets

Differentiate between 'capital-market' and 'money-market' on the basis of:

Expected return;

Concept: Types of Financial Markets
Chapter: [2.02] Financial Markets

Differentiate between `capital-market' and 'money-market' on the following basis:

Investment outlay

Concept: Types of Financial Markets
Chapter: [2.02] Financial Markets

Distinguish between Capital Market and Money Market on the basis of the following:

Participants

Concept: Types of Financial Markets
Chapter: [2.02] Financial Markets

Differentiate between `capital-market' and 'money-market' on the following basis:

Duration

Concept: Types of Financial Markets
Chapter: [2.02] Financial Markets
[5]26

What is meant by ‘Physical Distribution’?

Concept: Concept of Physical Distribution
Chapter: [2.03] Marketing Management

Explain Physical Distribution major components

Concept: Components of Physical Distribution
Chapter: [2.03] Marketing Management
[6]27 | Attempt Any One
[6]27.1

Explain the following functions of marketing:

Marketing planning

Concept: Marketing Functions
Chapter: [2.03] Marketing Management

Explain the following functions of marketing:

Product designing and development

Concept: Marketing Functions
Chapter: [2.03] Marketing Management

Explain the following functions of marketing:

Pricing of products

Concept: Marketing Functions
Chapter: [2.03] Marketing Management

Explain the following functions of marketing:

Standardization and Grading

Concept: Marketing Functions
Chapter: [2.03] Marketing Management
[6]27.2

'Though advertising is one of the most frequently used the medium of promotion of goods and services, it attracts a lot of objections.' Explain any four such objections.

Concept: Concept of Advertising (Marketing)
Chapter: [2.03] Marketing Management
[6]28 | Attempt Any One
[6]28.1

Explain any five points which highlight the importance of controlling function of management.

Concept: Importance of Controlling
Chapter: [1.07] Controlling
[6]28.2

Explain the relationship between planning and controlling

Concept: Concept of Planning
Chapter: [1.05] Planning
[6]29 | Attempt Any One
[6]29.1

State any four points which highlight the importance of delegation in an organisation.

Concept: Concept of Delegation
Chapter: [1.06] Organising
[6]29.2

Organising involves a series of steps in order to achieve the desired goals

Concept: Concept of Organising
Chapter: [1.06] Organising
[6]30 | Attempt Any One
[6]30.1

Explain the following as factors affecting the requirements of working capital:

Scale of operations

Concept: Concept of Fixed and Working Capital
Chapter: [2.01] Financial Management

Explain the following as factor affecting the requirements of fixed capital:

Choice of technique

Concept: Concept of Fixed and Working Capital
Chapter: [2.01] Financial Management

Explain the following as factors affecting the requirements of fixed capital:

Technology upgradation

Concept: Concept of Fixed and Working Capital
Chapter: [2.01] Financial Management

Explain the following as factors affecting the requirements of fixed capital:

Financing alternatives

Concept: Concept of Fixed and Working Capital
Chapter: [2.01] Financial Management
[6]30.2

Explain the following as factor affecting dividend decision:

Stability of dividends

Concept: Financial Decisions - Financing and Dividend
Chapter: [2.01] Financial Management

Explain the following as factor affecting dividend decision:

Shareholder's preferences

Concept: Financial Decisions - Financing and Dividend
Chapter: [2.01] Financial Management

Explain the following as factor affecting dividend decision:

Access to capital market

Concept: Financial Decisions - Financing and Dividend
Chapter: [2.01] Financial Management

Explain the following as factor affecting dividend decision:

Legal constraints

Concept: Financial Decisions - Financing and Dividend
Chapter: [2.01] Financial Management

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