Commerce (English Medium) Class 12 - CBSE Question Bank Solutions for Business Studies

Explain the factors affecting the dividend decision.

How is a functional structure different from a divisional  structure?

A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has a functional  organisational structure with separate departments for Production, Marketing, Finance, Human Resources and  Research and Development. Lately to use its brand name and  also to cash on to new business opportunities it is thinking  to diversify into manufacture of new range of electronic toys  for which a new market is emerging. Which organisation  structure should be adopted in this situation? Give concrete  reasons with regard to benefits the company will derive from  the steps it should take.

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

A company X limited manufacturing cosmetics, which has  enjoyed a pre-eminent position in business, has grown in  size. Its business was very good till 1991. But after that,  new liberalised environment has seen entry of many MNC’s  in the sector. With the result the market share of X limited  has declined. The company had followed a very centralized  business model with Directors and divisional heads making  even minor decisions. Before 1991 this business model had  served the company very well as consumers had no choice.  But now the company is under pressure to reform. What  organisation structure changes should the company bring  about in order to retain its market share? How will the  changes suggested by you help the firm? Keep in mind that  the sector in which the company is FMCG.

Explain the procedure for selection of employees.

‘Planning is looking ahead and controlling is looking back.’ Comment. 

Mr Shantanu is a chief manager of a reputed company that manufactures garments. He called the production manager and instructed him to keep a constant and continuous check on all the activities related to his department so that everything goes as per the set plan. He also suggested him to keep a track of the performance of all the employees in the organisation so that targets are achieved effectively and efficiently.

a. Describe any two features of Controlling highlighted in the above situation.(Goal Oriented, continuous and pervasive – any 2).
b. Explain any four points of importance of Controlling.

Answer the following question.
Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like televisions, refrigerators, and air conditioners, often leaving them in a permanently damaged condition. N-Guard Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from 220 V to 230 V. Once the demand for North India was taken care of, they decided to launch stabilizers of varying voltages from 90 V – 260 V for meeting the requirements of voltage fluctuations in other regions of India also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in all the three regions.

Though all the engineers were appointed to manufacture stabilizers but the product differed from region to region.

(a) Identify the organisational structure of the N-Guard Company.

(b) State any two advantages and two limitations of the structure identified in the above para.

Differentiate between formal and informal organisations on the basis of

1. origin,
2. authority, and
3. flow of communication.

Explain significance of principles of management.

______ aims to help each other.

The principles of management are significant because of ______.

Planning leads to rigidity is a:

Which of the following is a limitation of planning?

Which of the following statements is not true with reference to planning?

Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of planning.

It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.

Which organisation structure is consciously or deliberately established?

Which organisation structure is based on rules and procedures?