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

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

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

Scale of operations

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

Choice of technique

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

Technology upgradation

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

Financing alternatives

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

Nature of business

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

Scale of operations

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

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

Production cycle

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

The credit allowed and availed

Varunica 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 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. 

A company wants to increase its market share from the present 10% to 25% to have a dominant position in the market by the end of the next financial year. Ms Rajni, the  sales manager has been asked to prepare a proposal that  will outline the options available for achieving this objective. Her report included the following options - entering new  markets, expanding the product range offered to customers, using sales promotion techniques such as giving rebates,  discounts or increasing the budget for advertising activities.  Which step of the planning process has been performed by  Ms Rajni?

Amrit is running a ‘transport service’ and earning good returns by providing this service to industries. Giving reason, state whether the working capital requirement of the firm will be ‘less’ or ‘more’.

Ramnath is into the business of assembling and selling of televisions. Recently he has adopted a new policy of purchasing the components on three months credit and selling the complete product in cash. Will it affect the requirement of working capital? Give reason in support of your answer.

What are the steps in the process of organising?

How does working capital affect both the liquidity as well as profitability of a business?

What is working capital? Discuss five important determinants of working capital requirement?

The workers of a factory are unable to work on new machines  and always demand for help of supervisor. The Supervisor  is overburdened with their frequent calls. Suggest the  remedy. ( Hint: training)

The quality of production is not as per standards. On investigation it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the quality of production to meet the standards? (training).

Answer the following question.
Nisha Sethi was working as a Human Resource Manager in a famous consultancy firm, KLI Global Services. Her job included preparing job descriptions, recruitment, developing compensation and incentive plans, and facilitating employee learning. They had entered into alliances with institutes to ensure the continuous learning of their employees. With the jobs becoming more and more complex, KLI Global Services invested a large amount of money in making the employees learn the skills necessary to complete the jobs.
State by giving any five points, how this investment is likely to benefit the organisation?