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Business Studies Foreign Set 2 2016-2017 Commerce (English Medium) Class 12 Question Paper Solution

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Business Studies [Foreign Set 2]
Marks: 80 Academic Year: 2016-2017
Date & Time: 15th March 2017, 12:30 pm
Duration: 3h
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[1] 1

Hina Sweets is a renowned name for quality sweets since 1935. Harsh the owner of Hina Sweets was worried as the sales had declined during the last three months. When he enquired from the Sales Manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore Harsh ordered for sample checking of sweets.

Identify the step taken by Harsh that is related to one of the functions of management.

Concept: Concept of Controlling
Chapter: [0.018000000000000002] Controlling
[1] 2

Vegatech Enterprises was a company manufacturing refrigerators. The company had a functional structure with four main functions -Production, Marketing, Finance and Human Resource. As the demand for the products grew, the company decided to hire more employees.

Identify the concept which will help the Human Resource Manager in identifying the types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives

Concept: Staffing as a Part of Human Resource Management
Chapter: [0.016] Staffing
[1] 3

What is meant by Trading on Equity?

Concept: Concept of Capital Structure
Chapter: [0.021] Financial Management
[1] 4

Vanshika uses 'Kuber Cabs' for travelling in the city. She received a text message "Add Rs 222 on Kaytm and get 20% cash back on having minimum ten trips till 15th April 2017". Identify the technique of sales promotion used by the company.

Concept: Concept of Sales Promotion
Chapter: [0.023] Marketing Management
[1] 5

Veronica Ltd., a reputed truck manufacturing company, needs rupees twenty crores as additional capital to expand its business. Mr Alind Jindal, the CEO of the company, wants to raise funds through equity. The Finance Manager, Mr Nikhil Sachdeva, suggests that the existing shareholders be offered the privilege to subscribe to the new issue of shares as per the terms and conditions of the company which was agreed by Mr Alind Jindal.

Name the method through which the company decided to raise additional capital.

Concept: Concept of Capital Structure
Chapter: [0.021] Financial Management
[1] 6

Differentiate between formal and informal organisations on the basis of  authority

Concept: Structure of Organisation
Chapter: [0.015] Organising
[1] 7

Define Directing as a function of management

Concept: Concept of Directing
Chapter: [0.017] Directing
[1] 8

Why is Trade Test conducted in the process of selection? 

Concept: Staffing - Selection Process
Chapter: [0.016] Staffing
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[3] 9

Explain briefly Espirit de Corps and Order as general principles of management.

Concept: Concept of Principles of Management
Chapter: [0.012] Principles of Management
[3] 10

State any three points of importance of planning function of management.

Concept: Management Functions
Chapter: [0.011000000000000001] Nature and Significance of Management
[3] 11

Explain briefly any three organisational barriers to communication.

Concept: Barriers to Effective Communication
Chapter: [0.017] Directing
[3] 12

Nishtha, Vasvi and Radhika were friends from college time and now they are engaged in different types of businesses. They regularly meet and discuss their business ideas, exchange notes on customer satisfaction, marketing efforts, product designing, selling techniques and social concerns, etc.
Nishtha drew the attention of her friends towards the exploitation of consumers in the market. She said that the sellers were exploiting the consumes in many ways and were not paying attention towards the social, ethical and ecological aspects of marketing. Vasvi said that they were under pressure of consumer satisfaction but observed that the consumers would not buy or not buy enough unless they are adequately convinced and motivated to do the same

Radhika stressed that it was the duty of the businessmen to keep consumer satisfaction in mind because business was run by the resources made available by the society. Thus, a company cannot achieve its objectives without understanding the needs of the customers. The thinking of the three friends was different. These thinkings were guiding the marketing efforts of their business and were known by the different name. Identify these names. Also, state one more feature of each of these thinkings.

Concept: Concept of Marketing
Chapter: [0.023] Marketing Management
[3] 13

Somnath Ltd. is engaged in the business of export of garments. In the past, the performance of the company had been up to the expectations. In line with the latest technology, the company decided to upgrade its machinery. For this, the Finance Manager. Dalmia estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Dalmia, therefore, began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business.
For the remaining funds, he is trying to find out alternative sources from outside. Justify the financial concept discussed in the above para. Also, state the objectives to be achieved by the use of the financial concept, so identified. 

Concept: Concept of Financial Planning
Chapter: [0.021] Financial Management
[4] 14

After completing his entrepreneurship course from Australia, Sanket came back to India and started a coffee shop 'Premium Cold Coffee' in a famous mall in Delhi. Its speciality was the special aroma of coffee and a wide variety of flavours to choose from. Somehow the business was neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed college, as a manager to find out why the business was not doing well. Riya took a feedback from the clients and found out that though they loved the unique aroma of coffee but were not happy with the long waiting time being taken to process the order.

She analysed and found out that there were many unnecessary stoppages in between which could be eliminated. She set up a standard time for processing the order. She also analysed that there were many flavours of coffee available for which the demand was very less. So she also decided to discontinue some of them. Within a short period, Riya was able to attract the customers. Identify and explain the management techniques used by Riya to solve the problem.

Concept: Techniques of Taylor’s Scientific Management
Chapter: [0.012] Principles of Management
[4] 15

Rishitosh Mukherjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for the smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved.

1) Identify the level at which Rishitosh Mukherjee was working.

2) Also, state three more functions required to be performed by Rishitosh Mukherjee at this

Concept: Levels of Management
Chapter: [0.011000000000000001] Nature and Significance of Management
[4] 16

Give the meaning of objective and policy as types of plan.

Concept: Concept of Planning
Chapter: [0.013999999999999999] Planning
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[4] 17

Aarav Gupta was the Managing Director of KDS Ltd. The company had established a good name for itself and was doing well. It was known for timely completion of orders. The Production Manager, Mrs Charu, was efficiently handling the processing of orders with a team of twenty motivated employees working under her. Everything was going on well till Ms Charu met with an accident. Aarav Gupta noticed that due to the absence of Ms Charu. the company may not be able to meet the deadlines. He knew that any delay in this regard may lead to consumer dissatisfaction with the danger of loss of business and goodwill. So, he had a meeting with his employees where they planned for accurate and speedy processing or orders. Everybody agreed to work as a team as the attitude and behaviour of Aarav Gupta was very good towards the employees of the organisation. All put in extra time and efforts and the targets were met on time.

Not only this, Aarav Gupta visited Ms Charu and advised her to take the required rest.

1) Identify the leadership style of Aarav Gupta and draw a diagram depicting the style

2) State any two values highlighted in the behaviour of Aarav Gupta.

Concept: Concept of Leadership
Chapter: [0.017] Directing
[4] 18

Today, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and investors in allocating the available funds into their most productive investment opportunity.

1)Name the function being performed by the market in the above case.

2) Also, explain three other functions performed by this market.

Concept: Concept of Financial Markets
Chapter: [0.022000000000000002] Financial Markets
[4] 19

Explain Direct Recruitment and Advertisement as external sources of recruitment

Concept: Staffing - Recruitment Process
Chapter: [0.016] Staffing
[5] 20

Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So, the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old age home also required pest control. But some of the inmates of old age home were reluctant for it because they believed that the pest control may create health problems for them. IYO therefore decided to provide ethical, safe and odourless pest control. They showed to the inmates of old age home a pamphlet of the proposed pest control product which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed and the pest
control was carried out. It worked for a fortnight but to their dismay, the effect started wearing off. IYO contacted the pest control company which kept on postponing their visit. After waiting for a month, IYO filed a case in the consumer court.

The consumer court was satisfied with the genuineness of the complaint and issued necessary directions to the pest control company

1) State any six directions that might have been issued by the court.

2) Also, identify any two values that are being communicated by IYO to the society.

Concept: Concept of Consumer Protection
Chapter: [0.024] Consumer Protection
[5] 21

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has a large research and evelopment team which invented the first smartwatch, named as W-7. The watch besides showing the time also monitors few health parameters like a heartbeat, blood pressure etc.

While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.

It set up its office in Jamnagar with a view to capturing the Indian market. In a short span of time, the company emerged as a market leader. The success of the company attracted many other players to enter the market. The competition resulted in the reduction in prices, thereby benefiting the customers.

1) In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.

2) Also, explain briefly any three impacts of these concepts on Indian business and industry.

Concept: Impact of Government Policy Changes on Business with Special Reference to Liberalization, Privatization and Globalization in India
Chapter: [0.013000000000000001] Management and Business Environment
[5] 22

Answer the following question:
Explain any five points which highlight the importance of controlling the function of management.

Concept: Importance of Controlling
Chapter: [0.018000000000000002] Controlling
[6] 23

Helpequip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 500 units of a diabetes monitoring machine which tests the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones. In the meeting, Sanjeev, the North Zone marketing head suggested that they need to visit hospitals to explain personally to the hospital staff who would be using the machine since the machine is sophisticated. He also suggested that additional staff may also be recruited for the same.

Rishu, another zonal head, was of this opinion that since a large amount of money had been spent on the purchase of the machines, additional funds were not available for recruiting the personnel as suggested by Sanjeev.

Ankur, a newly appointed zonal head of South Zone, suggested that since the size of the
order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.

1) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.

2) Also, explain the other considerations to be taken care of in each factor identified in part (a).

Concept: Concept of Financial Markets
Chapter: [0.022000000000000002] Financial Markets
[6] 24

Aman Chadha started 'Bulls Eye' a company for providing cyber security solutions to businesses. Its objective is to prevent, detect and respond to cyber attacks and protect critical data. He was a hardworking software engineer and an expert in cybersecurity. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.

He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.

He found the new employees capable. Enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.

1) Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.

2) Also, state any four points of importance of the concept identified in (i) above.

Concept: Consumer Protection Act 1986 (COPRA)
Chapter: [0.024] Consumer Protection
[6] 25

Explain briefly any four factors that affect the working capital requirement of a company.

Concept: Concept of Fixed and Working Capital
Chapter: [0.021] Financial Management

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