Kerala Plus Two Business Studies Model Question Paper 2
Time : 2 1/2 Hours
Cool off time : 15 Minutes
Maximum : 80 Score
General Instructions to Candidates :
- There is a ‘cool off time’ of 15 minutes in addition to the writing time of 2 hrs.
- Your are not allowed to write your answers nor to discuss anything with others during the ‘cool off time’.
- Use the ‘cool off time’ to get familiar with the questions and to plan your answers.
- Read questions carefully before you answering.
- All questions are compulsory and only internal choice is allowed.
- When you select a question, all the sub-questions must be answered from the same question itself.
- Calculations, figures and graphs should be shown in the answer sheet itself.
- Malayalam version of the questions is also provided.
- Give equations wherever necessary.
- Electronic devices except non programmable calculators are not allowed in the Examination Hall.
Answer the following questions from 1 to 7. Each carries 1 score.
Which of the following is NOT a principle of management given by Taylor?
a. Science, not rule of the Thumb
b. Functional foremanship
c. Maximum not restricted output
d. Harmony not discard
Which among the following is not an elment of co ordination.
c. proper timing
A network of social relationship that arise spontaneously due to interaction at work is called :
a. Formal organisation
b. Informal organisation
Complete the diagram
‘It is the right to give orders and the power to exact obedience.’ This is called
Identify the odd one among the incentives obtained by a managers from his company?
b. Medical reimbursement
d. Participative decision making
Face to face contact between the employer and candidate is called?
Answer any 7 questions from 8 to 15. Each carries score 2
State two points that highlight the importance of organising.
It is deciding in advance, what to do it when to do it and who is to do it. it bridges the gap from where we are to where we want to go. it makes possible for things to occur which could not other-wise happen.
a. Identify this function.
b. Explain two features of this function
Mr. Satheesh, a newly appointed personnel manager of the view that their is no need for training the workers but the trade unions and management strongly disagree to the views expressed by Mr. Satheesh whom do you favour? Give reasons in support of your answer?
What are the elements of directing?
Explain the advantages of branding to marketers of goods and services.
Product is a bundle of utilities? Do you agree? Comment.
Mrs. Sudha purchased some curry powder from a provision store. But she found that the curry powder is mixed with some other elements which are harmful to health. She complained about the product to the shop owner. But he did not accept the claim. In this situation where Mrs. Sudha can file a com¬plaint? Can you help her?
Answer any 4 questions from 16 to 20 Each carries 3 score.
“Business is an organisation like human body” Do you agree with this comment?
Explain the redressal mechanism avail-able to consumers under the Consumer Protection Act, 1986.
Explain the functions of entrepreneur-ship in relation to economic development
Explain any four points regarding significance of Principles of management.
If we follow the principles of scalar chain strictly, there is a possibility of unnecessary delay in the communication and execution of task. Business problems need immediate solution,so we can not always depend on the established scalar chain.
What is the alternative proposed by HenryFayol to overcome this issue?explain.
Answer any 4 questions from 21 to 25 Each carries 4 score
’’It is an orderly arrangement of group efforts to products unity of action in the pursuit of a common purpose” in the light of this satatement.
a. Explain this function.
b. State the importance of this function
Expain briefly the importance of staffing.
“Training and development are inter-related. Explain this statement.”
Briefly explain the elements of communication.
’Money is spent on advertising is not wasteful, but an investment’ Do you agree with this view ? Give reasons in support of your answer.
Answer any 3 questions from 26 to 29. (Each carries 5 score).
What is marketing ? What functions does it perform in the process of exchange of goods and services? Explain.
” It is the ability of a manager to include subordinates to work with confidence and zeal.”
a. Identify this function.
b. Explain it’s importance.
Goka Crackers Ltd, fire cracker manufacturing company,launched some new products on the eve of Diwali which : attracted many customers. To meet the increased demand, the company employed children from nearby villages and in the urgency of work, they ignored to specify safety warnings on packets of crackers.
i. Identify which consumer right is being ignored.
ii. Identify any two values which were violated by the company. Also explain the importance of consumer protection from the point view of business.
Define money market what are the important money market instruments.
Answer any 2 questions from 30 to 32 Each carries 8 score.
Explain fayols principles of management.
’’To train means to impart information or skill through instruction or drill.”In the light of above statement explain methods of trainning.
Explain the importance of controlling in an organisation.What are the problems faced by the organisation in implementing an effective control system?
b. Functional foremanship
b. Informal organisation
d. Participative decision making
Since the activities are divided and sub-divided into convenient jobs, it encourages specialisation, increased efficiency and productivity.
2. Clarity in working relationships
The establishment of working relation ships clarifies lines of communication and specifies who is accountable to whom.
According to Mary Parker Follet “Management is the art of getting things done through other people”.
b. 1.Planning focuses on achieving objectives
Every organisation has a set of goals to be achieved. Planning involves setting goals and determining the most economical and viable course of action to achieve the predetermined goals.
2. Planning is a primary function of management
It lays down the base for all other functions of management. All other managerial functions are performed within the framework of the plans drawn.
The views expressed by Mr. Satheesh is wrong and favour. Training helps to increase the employees efficiency and productivity. Less supervision, less wastage of training.
1. Enables marking product differentiation
2. Helps in advertising
3. Differential pricing
4. Ease introduction in new product.
Yes, A product is anything that can be offered to a market for attention, acquisition, use or consumption; it includes physical objects,services, personalities, place, organisation and ideas.
Here in this case Mrs. Sudha can approach district forum to compliant about the product, because the value of the product is less than Rs. 20 lakhs. District forums generally receive complaints where the value of the goods or services and the compensation claimed is less than Rs. 20 lakhs.
The above statement is definitely correct. Business organisation are like a human body. Biologists consider the human as an organisation, because all organs are knit together for the smooth functioning of human body. In the case of business, top executives consider organisation as the process of bringing together physical, financial,and human resources in the best possible manner so as to achieve the goals.
For the redressal of consumer grievances, the consumer protection Act provides for setting up of a three tier en forcement machinery at the District level, State level, and the National levels.
1. District Forum
The District Forum consists of a President and two other members, one of whom should be a woman. They all are appointed by the State Government concerned. A complaint can be made to the appropriate District Forum when the value of goods or services in questions, along with the compensation claimed, does not exceed Rs.20 lakhs.
2. State Commission
Each state Commission consists of a President and not less than two other members, one of whom should be a woman. They are appointed by the State Commission when the value of the goods or services in question, along with the compensation claimed, exceed Rs. 20 lakhs but does not exceed Rs. 1 crore.
3. National Commission
The National Commission consists of a President and at least four other members, one of whom should be a woman. They are appointed by the Central Government. A complaint can to be made to the National Commission when the value of the goods or services in question, along with the compensation claimed, exceed Rs. 1 crore.
1. Contribution to GDP
Increase in the Gross Domestic Product or GDP is the most common definition of economic development. Entrepreneurs generate income via organisation of production be it agriculture, manufacturing or services.
2. Capital formation
To integrate the capital of others into entrepreneurial capital is known as capital formation. The entrepreneurial decision, in effect, is an investment decision that augments the productive capacity of the economy and hence, results in capital formation.
3. Generation of Employment
Every new business is a sources of employment to people with different abilities, skills and qualifications. Thus the entrepreneurship provides employment opportunities this will leads to economic development.
4. Generation of business opportunities for others,
Every new business creates opportunities for the suppliers of inputs and the marketers of the output.
5. Improvement in economic efficiency
Efficiency means to have greater output from the same input. Entrepreneurs imp¬rove economic efficiency by providing,reducing wastes, increasing yield, and bringing about technical progress etc.
6. Increase the spectrum and scope of economic activities
Development does not merely mean ‘ more’ and ‘better’ of the existing, it also and more crucially means diversification of economic activities across the geographic, sectrol, and technological scope.
Entrepreneurs lead the process of economic development via bringing about sectoral change.
Significance of management
1. Providing managers with useful insights into reality
Principles help managers to improve their knowledge and understanding of managerial situations.
2. Optimum Utilisation of resources and effective administration.
Optimumutilisation of resource sem-phasise that resources should give maximum benefit with minimum cost, it also increase the efficiency of management.
3. Scientific decisions
Management principles helps in thoughtful decision making because they are. based on logic rather than blind faith. Such decisions are free from bias and prejudice.
4. Meeting changing environment requirements
Modern business environment is complex and ever changing. In order to be successful, organisations have to adapt these changes. Principles are dynamic in nature.
The main drawback of the scalar chain is that a good portion of time is required for the communication to reach the destination. There is a possibility of distrution of message in the course of transmission. In order to overcome this difficulty. Fayol proposed an alternative i.e., creation of “gang plank”. It means the short circuit in the chain for quick communication. Under the system of gang plank the person of same rank may communicate to each other.
a. Co-ordination as a function of Management refers to the process of integrating the activities of different units of an organisation to achieve the organisational goals.
As organisations grown in size, the number of people employed by the organisation also increases. For organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.
2. Function differentiation
Functions of an organisation are divided into departments divisions and sections all these departments may have their own objectives polices and their own style of working the process of linking the activities of various departments is accomplished by co-ordination
Specialisation is inevitable because of the completies of modern technology and diversity of task to be performed. So there requires some mechanism to co-ordinate the efforts of various specialists in an organisation.
According to Koontzand O’Donnell” The managerial function of staffing involves manning the organisational structure through proper and effective selection, appraisal and development of personnel to fill the roles designed into the structure”.
IMPORTANCE OF STAFFING
1. It helps in discovering and obtaining competent personnel for various jobs.
2. Makes for higher performance, by putting right person on the right jobs.
3. Ensures the continuous survival and growth of the enterprise through the succession planning for managers.
4. It helps to ensures optimum utilisation of the human resources.
5. Improves job satisfaction and morale of employees.
Training and development
To train means to impart information or skill through instruction or drill. Train¬ing is an organised activity for increasing the knowledge and skills of people for a definite purpose.
Development involves growth of an employee in all respects. It is a process by which employees acquire skills and knowledge to perform their present jobs and increase their capabilities for accepting higher position in future.
According to Newman &Summer”Communication is an exchange of facts, ideas, opinions or emotions by two or more persons”.
ELEMENTS OF COMMUNICATION
The process of communication begins when one person called the sender or communicator conveys a message or an idea to another person is called the receiver.
It is the subject matter of communication. It may consist of facts, information, ideas, opinion etc.
In order to make the receiver under-stand the message, the sender translates the message into words, symbols, or some other form. It is known as en-coding the message.
It is the medium or path through which the encoded message is transmitted to the receiver. The channel may be a writ¬ten form, face to face, phone call, internet etc.
The person who receives the message is called the receiver or communicate. The receiver may be a listener, a reader or observer.
It is the process of converting encoded symbols of the sender.
The receiver sends his response to the sender of the message. This response is known as feedback.
It means an obstruction or hindrance in the communication process.
I agreed this statement because of advertising is Any paid form of non personal presentation or promotion of ideas, goods or services by an identified sponsor.
ADVANTAGES OF ADVERTISING
1. It educate the masses about the various uses of goods and also the methods of use.
2. It provide the consumer full information about the products like use, quality, price, source of supply, etc.
3. It helps to appeal directly to the consumers and to eliminate middlemen.
4. It creates demand for new products
5. It raises the standard of living of the people.
6. It increase employment opportunity.
The marketing concept
Marketing orientation implies that focus on satisfaction of customer’s need is the key to the success of any organisation in the market.
Functions of marketing
1. Gathering and anlaysing market information
One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services.
2. Market planning
Another important activity or area of work of a marketer is to develop appropriate marketing plans so that the marketing objectives of the organisation can be achieved.
3. Product Designing and development
Another important marketing activity or decision area relates to product designing and development. The design of the product contributes to making the product attractive to the target customers. A good design can improve performance of a product and also give it a competitive advantage in the market.
4. Standardization and Grading
Standardizing refers to producing goods to predetermined specifications. Which help in achieving uniformity and consistency in the output.
Grading is the process of classification i of products into different groups, on the basis of some of its important characteristics such as quality, size, etc.
5. Packaging and labelling
Packaging may be defined as the function of designing and producing the package for a product. A package is a container or a wrapper or a box in which a product is enclosed or sealed. It is absolutely necessary to provide protective packing to the goods so that they may not get damaged in transit.
Labelling means putting identification mark on the package. A label contains details regarding the product and then manufacturer. It also give information about brand and grade of the product.
Brand names helps in creating product differentiation i.e., providing basis for dis tinguishing the product of a firm with that of the competitor.
7. Customer support services
Avery important function of the marketing management relates to developing customer support services such as after sales services, handling customer complaints and adjustments. All these services aims at providing maximum satisfaction to the customers, which is the key to marketing success in modern days.
8. Pricing of product
Price of product refers to the amount of money customers have to pay to obtain a product. Prices is an important factor affecting the success or failure of a product in the market.
Promotion of products and services involves informing the customers about the firm’s product, its features, etc, and persuading them to buy the products.
10. Physical distribution
In physical distribution include two decisions there are
(i) Decision regarding channels of distribution
(ii) Physical movement of the product from where it is produced to a place where it is required by the customers for their consumption or use.
Transportation involves physical movement of goods from one place to the other.
Storage and Warehousing
It is the process of holding and preserving goods between the time of their production and the time of sale. Usually, there will be a time gap between the production and consumption of goods. Thus there is the need for storage so as to make them available to buyers on demand.
According to Koontz and O’Donnell “Leadership is the ability of a manager to induce subordinates to work with confidence and zeal”.
IMPORTANCE OF LEADERSHIP
1. Influence the behaviour of people
A good leader influence the behaviour of people and contributes their energies for the benefits of the organisation.
2. Provide confidence
A leader maintains personal relations and helps his followers in fulfilling their needs.He provides confidence, support and encouragement to his followers.
3. Introduces changes
Leaders plays a key role in introducing required changes in the organisation.
4. Handles conflicts
A good leader helps in solving the conflicts among the employees.
5. Provide training
Leaders make training to their subordinate, in order to make them efficient and to facilitate a smooth succession process.
i. Right to be informed is being ignored by the company. A consumer has the right to get true and complete information about the quality, quantity price,contents,safety warning signals of the product which he intends to buy.
ii. Following values were violated by the company :
a. By providing employment to children, it violates human values.
b. By avoidance of necessary information on packers,it may harm the life of several innocent people.
Following are the importance of consumer protection from the point view of business.
1. Long-term interest of business
2. Business uses society’s resources
3. Social responsibility
4. Moral justification
5. Government Intervention
“Moneys market is the collective name given to the various firms and institutions that deal in the various grades of near money “
The important money market instrument are as follows :-
are short term credit instruments for a period ranging from 14 to 364 days. Such instruments are sold to banks and to the public. Treasury bills are negotiable instruments and hence they are freely transferable.
2. Commercial paper
It is an unsecured promissory note with a fixed maturity period ranging from 3 to 12 months. This instruments is issued by corporate entities.
3. Call money
Money which can be called back within qi short time period, say, one day, is known as call money. The market deals in one day loans is called call money market.
4. Certificates of deposits
This is a time deposit issued by bank against the deposits kept of companies and institutions. The time period ranges from 91 days to 1 year. Only banks can issue such a certificate.
It is a bill of exchange used by business firms to meet their working capital requirement.
FAYOL’S PRINCIPLES OF MANAGEMENT
Hentry Fayol is popularly known as the father of modern management. Fayol concentrated management at top level.
1. Division of Work
Work is divided into small tasks and assigned to trained specialists, then it will help in taking the advantage of specialisation.
2. Authority and Responsibility
Authority means the right to give orders and obtain obedience. On the other hand, responsibility meansobligation to complete the assigned task on time. There must be a balance between authority and responsibility.
It is the sincerity and obedience towards organisational rules and regulations, as these are necessary for smooth functioning of an organisation.
4. Unity of Command
The principle unity of command states that each participant in a formal organisation should receive orders and is answerable to only one superior.
5. Unity of Direction
It implies that there should be one head and one plan for a group of activities having the same objective.
6. Subordination of individual interest to general interest
The interest of an organisation is to achieve its goals.These goals are achieve dafterinteg rating the efforts of different individuals who are working in the organisation to satisfy their own personal needs.
7. Remuneration of Employees
According to Fayol, the quantum and methods of remuneration payable to employees should be fair and reson-able. It should be satisfactory to both employees and employers.
8. Centralisation and Decenralisation
The concentration of decision making authority is called centralisation where as its dispersal among more than one person is known as dcentralisation. According to Fayol, an organisation should strive to achieve a proper balance between centralisation and de-centralisation according to size of organisation, ability of superiors, ability of subordinate, etc.
9. Scalar chain
According to Fayol, scalarchain refers to the chain of authority and communication that runs from top to bottom and should be followed by managers and their subordinates
As per this principles, should be an orderly arrangement of men and material which implies that there is a fixed place for everything and everyone in the organisation.
Equity means justice and kindliness. The principle suggest that a fair and just treatment is assured to people in similar positions.
12. Stability of personnel
Fayol emphasised that managers and workers should not be shifted from their position frequently. A person need time to adjust himself to new work environment.
Initiative implies the power of thinking out and executing a pian. Employees at all levels should be given opportunities to take initiative in work related matters.
14. Espirit de corps
The term espirit de crops means of loyality and devotion to the group which one belongs. The principle implies that there should b§ co-operation and team spirit
METHODS OF TRAINING
Training methods are categorized into two :
1. On-the-job methods
2. Off-the-job methods
1. On-the-job methods
It refers to those methods that are ap-plied to the work place, while the employee is actually working. The concept underlying on-the-job methods is ‘learning while doing’. Some important on- the job methods of training are :-
(i) Apprenticeship programmes
Apprenticeship programmes put the trainee under the guidance of a master worker.
In this method, the superiors guide and instruct the trainee as a coach. The coach counsels or suggest how to achieve goals, periodically reviews the trainees progress and suggest changes required in behaviour and performance.
(iii) Internship training
It is a joint programme of training, in which educational institutions and business firms co-operates in order to impart training to selected candidates.
(iv) Job rotation
It involves shifting of employees from one job to another, or one department to another, or one shift to another. This helps the employee to learn varied skills to do a variety of jobs.
2. Off-the-job methods
Off-the-job methods are used away from he work place. It means learning before doing’.
(i) Classroom lectures/conferences
The lecture or conference approach is well adapted to convey specific information, rules, procedures or methods.
To provide training using films as visual effects.
(iii) Computer modeling
It stimulates the work environment by programming a computer to imitate some of the reality of the job and allows to take experience of real life situations, without incurring high risk or cost.
(iv) Case study
Taken from actual experiences of organisations, cases represent attempts to describe, as accurately as possible real problems that managers have faced. Trainees study the cases to determine problems, analyse causes, develop alter-native solutions, select what they believe to be the best solution, and impliment it.
1. Accomplishing organisational goals
It measures progress towards the organisational goals and find out deviations. In the absence of control system, activities may not be carried out according to the plans.
2. Judging accuracy of standards
Through an effective control system. Managers can easily judge the accuracy of standards. It also keeps a careful check on the changes taking place in the organisation.
3. Making efficient use of resources
By exercising control, a manager seeks to reduce wastage and spoil age of resources,
4. Improving employees motivation
It hepls employees in realizing what they are expected to do and what are the standards of performance.
Limitations of controlling
1. Difficulty in setting quantitative standards
Control system is effective when standards are defined in quantitative terms. But in some case, like employee morale, job satisfaction, etc, It is not possible to set quantitative standards.
2. Little control on external factors
There are certain external factors like change in government policies, technological changes, competition, etc. Which are beyond the control of the organisation.
3. Resistence to change
Employees often resist control as they consider it as restriction on their freedom.