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

What is meant by 'Management'?

State any three objectives of management

Beni, after completing her MBA, took up a job with a multinational company named 'Fortio'. The company was paying good salary and perks to its employees. The wages were within the paying capacity of the company the provided the employees a reasonable standard of living. The company also had a good work-culture and the behaviour of superiors was very good towards their subordinates. Beni was very happy in this organisation, but due to long working hours, she did not have time to cook her meal. She had to depend upon outside food, which was deteriorating her health. She observed that this problem was faced by many of her colleagues, not only in her company but also in many other companies. This was because of increase in the number of working women and non-availability of hygienic home-cooked food. She identified this as a great opportunity and decided to give up her job to supply packaged home-cooked food to office goers at a reasonable price. At the end of the day, she was also distributing the left-over food in the nearby night-shelters

a. State the dimension of the business environment being discussed above.
b. State the principle of management being followed by 'Fortio'.
c. Identify any two values being communicated by the company to the society in the
above case.

Explain the following principles of management:

Science, not rule-of-thumb.

Explain the following principle of management:

Discipline

Explain the concept of ‘consumer protection’ and any three points of its importance from the point of view of consumers.

Explain the following principle of management:

Scalar chain

Explain the following principles of management:

Harmony, not discord.

Explain any two points of importance of 'consumer protection' from the point of view of business and any two points from the point of view of consumers.

Explain the following principles of management:

Subordination of Individual Interest to General Interest.

Explain the following principles of management:

Development of Each and Every Person to His or Her Greatest Efficiency.

Why is it said that principles of management are mainly behavioural in nature?

Pankaj purchased a car from ‘Abhishek Motors’ for < 50 lakhs. The company offered many attractive gifts to Pankaj like — free insurance for first two years, free pick-up and drop facilities for free servicing up to 20,000 km, etc. But after a few days, Pankaj noticed that the pick-up of the car was not good and there were some problems with the engine. The company serviced the car free of cost but even then Pankaj was not satisfied with its performance. ‘Abhishek Motors’ is not giving him the due response. So he filed a complaint in the State Commission but was not satisfied with its decision also. He was very much disturbed and after two months decided to appeal against it. Can Pankaj appeal against the decision of the State Commission ? Give reason in support of your answer.

‘Adharshila Vidyalaya’ believes in holistic development of students and encourages team building through a mix of curricular, co-curricular and sports activities. On its Founders’ Day, a stage performance had to be put up. A committee of ten prefects was constituted to plan different aspects of the function. They all decided to use recycled paper for decoration. As there was a spirit of unity and harmony and all members supported each other with mutual trust and belongingness, the programme was systematically planned and executed. Arvind, one of the prefects, realised that unknowingly the group had applied one of the principles of management while planning and executing the programme. He was so inspired by the success of the function, that he asked his father to apply the same principle in his business. His father replied that he was already using this principle.

a. Identify the principle of management applied for the success of the programme.
b. State any two features of management highlighted in the above paragraph.
c. Identify any two values which ‘Adharshila Vidyalaya’ communicated to the society

‘Zaira Ltd.’ is a large and creditworthy company manufacturing air-conditioned buses for the Indian market. It now wants to export these buses to other countries and decides to invest in new hi-tech machines. Since the investment is large, it requires long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shares involves huge floatation cost. To meet the expenses of floatation cost, the company decides to tap the money market.
a. Name and explain the money market instrument the company can use for the
above purpose.
b. What is the duration for which the company can get funds through this instrument?
c. State any other purpose for which this instrument can be used.

Explain the following principle of management.

Authority and Responsibility

Explain the following principles of management:

Co-operation, not Individualism

What is meant by 'Management of people'?

What is included in the 'political environment' of business? State.

Why is the understanding of business-environment important for managers? Explain with the help of any four points