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

Answer the following question.
Appliances India Ltd. is engaged in the manufacturing and distribution of home appliances since 1987. It has a good name in the market as the company is producing good quality appliances. It has separate departments for manufacturing, finance, sales maintenance services, and technical services to achieve specialization.

Since the areas of operations of the company have increased and customers have become more demanding, the company decided to modify the existing principle of management to meet the changing requirements of the environment.

State the general principle of management which the company wants to modify to meet the changing requirements.

Answer the following question.
Give the meaning of Financial Management.

Explain how the principles of management help the managers:
(i) in taking scientific decisions; and
(ii) in providing the managers with useful insights into real-world situations.

Differentiate between the money market and the capital market.

Which nature is not present in Principles of management?

How are principles of management formed?

Principles of management cannot be ______.

Which of the following best indicates the importance of business environment?

Identify the dimension of the characteristic of management- “it is multidimensional”, which specifies that the task of management is to make the strengths of human resources effective and their weaknesses irrelevant towards achieving the organisation's objectives.

Arrange the following steps in the process of organising in the correct sequence:

1. Assignment of duties
2. Departmentalisation
3. Identification and division of work
4. Establishing reporting relationship

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

The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine-free Coca-Cola, Diet Coke Caffeine-free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design, and creative advertising.

In the context of the above given case, identify one valid importance of Business Environment.

Aditi has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. Which principle of management is being followed here?

“The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the principle of Management being followed here:

“Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?

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

Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.

In the above case Mr. Ghosh suggested to raised more fund from debt.
Higher debt-equity ratio results in ______.

Airlines will be able to offer the benefit of lower pricing to customers on sectors/routes due to the decision of the civil aviation ministry to remove price caps from August 31, 2022. This can help an airline to do better performance if they take early decisions regarding future courses of action after understanding and doing analysis. Which importance of business environment and its understanding by managers is not highlighted above:

Rishabh joined an entertainment company Avtaar, as a creative head. As a manager looking after the creative unit of the company, one of the functions he has to perform is the process of organizing. Which step of the process will he need to perform after identifying and dividing the work that has to be done in accordance with previously determined plans?

"M/s J.K. Computers’ is a small organisation engaged in assembling of computers. In this organisation, decision making rests with top management while the middle level is involved in only the implementation of plans. On the other hand, ‘Progressive Computers Ltd." is a large company where a number of people from each level are involved in the decision-making process.

The application of the principle of ‘Centra- lisation and Decentralisaton’ is different in the two organisations as the situation in each enterprise is not same.

From the following identify the nature of principles of management: 

From the following points, identify the importance of Business-Environment high lighted above:

Which of the following statements is incorrect?