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

Which type of organisational structure will you suggest for a firm which has diversified activities and operations requiring a high degree of specialisation?

“Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisation's interest.” The limitation of planning being referred to in the above statement is ______.

KTX Group is rolling out an initiative to help create wealth for its employees through the implementation of Employee Stock option. Through motivation and leadership the management will help individuals to develop team spirit, cooperation and commitment to the success of the group. The following importance of management is highlighted above.

'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.

As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because ______.

Read the following text and answer the following question on the basis of the same:

Mr. Vikas Goel is an H.R. Manager of “Sanduja Furniture Private Limited.” At the beginning of the new year he anticipated that the company will need 30 new additional persons to fill up different vacancies. He gave an advertisement in the newspaper inviting applications for filling up different vacant posts. As many as 120 applications were received. The same were scrutinized. Out of these, conditions of 15 applicants were not acceptable to the company. Letters of regret, giving reasons, were sent to them. The remaining candidates were called for preliminary interview. The candidates called for were asked to fill up blank application forms. Thereafter, they were given four tests.
The objective of the first test was to find out how much interest the applicant takes in his work.
The objective of the second test was to find out ‘specialization’ of the applicant in any particular area.
Third test aimed at making sure whether the applicant was capable of learning through training or not.
The purpose of the fourth test was to find out how much capability a person has to mix up with other persons, and whether he can influence other persons and get influenced by them.

At the beginning of the new year he anticipated that the company will need 30 new additional persons to fill up different vacancies. Identify the first step of staffing.

Read the following text and answer the following question on the basis of the same:

Simplex limited had been taken over by Mundhra Group immediately following India’s independence. Since then it enjoys a rich record of industry presence and experience. In 2005, with the aim to accelerate growth the company had gone through several rounds of meetings and discussions before launching ERP system to attract large projects. The management had done effective forecast and critical thinking regarding allocation resources to reduce wastage. For this purpose the company had laid down multiple courses of action to meet the challenge of adverse situations. In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures. The management had taken utmost care regarding the possible outcome and timely review of the plans to achieve the set target during that hard time. In 2010 the system implemented successfully which subsequently helped the company to execute numerous projects with precision and timeliness.

“In 2008, the company suffered loss in many projects due to the great recession despite taking many cost cutting measures.” Which limitation of the management process is indicated here?

Aarohan Ltd. is a company manufacturing automobiles where division of work into key areas includes production, purchase, marketing, accounts and personnel. Which of the following is a disadvantage of the organization structure of Aarohan Ltd.?

Identify the reason which makes management important in the light of the fact that it is generally seen that individuals in an organization resist change, as a change often means moving from a familiar, secure environment into a newer and a more challenging one.

'Estimating manpower requirements is not merely knowing how many persons we need.' What else is needed while estimating manpower requirements? State any two points.

Explain 'Private Placement' and 'Rights Issue' as methods of floatation of new issues in the primary market.

1. Identify and state the financial decision taken by the finance manager in the above case.
2. State any three factors affecting the decision identified in (i) above.

1. Identify and give the meaning of the financial decision suggested by the finance manager in the above case.
2. State any three factors affecting the decision identified in (i) above.

Identify and state the step in the process of staffing that creates a pool of prospective job seekers for vacancies in the organization.

'Gujarat Textiles Ltd.' needs to raise a fund of ₹80 crores. It cannot afford the cost of a public issue, so it was decided to allot its equity shares to institutional investors like LIC and some selected investors.

Identify and explain the method of floating new issues used by 'Gujarat Textiles Ltd.'

1. Identify the financial decision to be taken by the Finance Manager.
2. State any four factors which would affect the decision identified in (i) above.

Identify the type of organization structure depicted in the above diagram:

An organization structure is deliberately designed by the top management to facilitate smooth functioning of the organisation. Which of the following is not a feature of such a structure?

Identify the financial decision that is concerned with deciding how much of the profit earned by a company is to be distributed to shareholders and how much should be retained in the business. Also state any three factors affecting the identified decision. 

Explain any three points that highlight the importance of 'Principles of Management'.

Explain providing managers with useful insights into reality and fulfilling social responsibilities as significance of principles of management.