Kerala Plus Two Business Studies Model Question Paper 3
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.
Departmental managers are included in which level?
Budget is an instrument of _______
Spot the odd one among the following persons working at different levels of management.
a. Purchase manager
b. production manager
c. Managing Director
d. Marketing manager
‘It is the systematic effort to delegate to the lowest levels all authority except that which can only be excersied at central points’. This cause of
The communication network which all subordinates under a manager communicate through the manager only is :
The first step in the control process which a manager to do is ______
Complete the diagram .
Answer any 7 questions from 8 to 15. Each carries 2 score.
Is management a ‘profession’ Do you agree this statement.Why?
Explain the role of marketing in economy.
Suppose, you are familiar with an organisation, who is protecting and promoting the interests of consumers.in this context,
a. Identify the organisation.
b. Write any two functions of this organisation
Write any two benefits of internal sources of recruitment.
Which principal of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment.? Explain this principle.
This is the oldest stock exchange in Asia.
a. Identify this stock exchange.
b. Prepare a short note about this stock exchange.
“Forecasting is one of the important elements involved in the planning process, without which effective planning cannot be done”. Do you think so? Explain.
‘An effort to control everything may end up in controlling nothing.’ Explain.
Answer any 4 questions from 16 to 20 each carries 3 score
Explain what are the problems faced by the organisation in implementing a effective control system.
They don’t sell, but they induce customers to make sales’ identify the concept stated in the statement.Explain the any 4 functions of this statement.
What you mean by packaging. Explain the levels of packaging.
Rahul, a manager of Telton Ltd believes that management is an art. Do you agree with the view point of Rahul? Give reasons in support of your answer, and also prepare a short note about the nature of management.
” It was set – up to provide small and medium companies an access to the capital market for raising finance in a cost effective manager”
a. Identify this function.
b. Explain the objectives of this function
Answer any 4 questions from 21 to 25 Each carries 4 score.
Explain by giving any four reasons, why principle of management are needed.
Which function of management helps in obtaining right people and putting them on the right place/jobs? Explain any five points of importance of this function.
Veena and Meera are working in different departments, but are very close friends.During lunch time, Veena informs Meera that due to the up gradation of latest technology,many people are leaving their jobs.
Which type of communication is this? State advantages and disadvantages of this type of communication.
Economic,Social, Political and legal conditions have a considerable impact on the performance of the company Discuss them briefly.
“Organizing is the backbone of management and it contributes to the success of an enterprise”.point out your arguments in favour of this statement.
It is the process of determining the objectives,policies,procedures, programmes and budgets to deal with financial activities of an enterprise.
a. Identify this function.
b. What are the objectives and importance of this function. Explain.
Henry Fayol suggested that there should be one head one plan for a group of activities having the same objective.
a. Identify the management principle refered here.
b. Explain any four principle of henry fayol.
What you mean by NSE. Explain the various segments of NSE.
A consumer have no right while purchasing or using a product. Do you agree this statement? Explain.
Answer any 2 questions from 30 to 32.Each carries 8 score
Define the meaning of controling and what are the techniques of managerial controling.
Explain the role of ‘public relations’in marketing management.
It is deciding in advance,What to do it,when to do it and who is to do it .
a. Identify this function.
b. Explain the process of this function.
b. Middle level management
b. Managing Director
a. Wheel pattern
No I don’t agree as management is not considered as full-fledged profession. It is on the path of becoming a profession.
Role in economy
Marketing plays a significant role in the development of an economy. It acts as a catalyst in the economic development of a country and helps in raising the standards of living of the people.
a. Consumer organisation and NGO
b. 1. Educating the general public about consumer rights by organising training programmes, seminars and work shops.
2. Publishing periodicals and other publications to impart knowledge about consumer problems, legal reporting, reliefs available and other matters of interest.
i. It creates industrial peace in the enterprise
ii. It creates a sense of security among the personnel.
Equity means justice and kindness The principle suggest that a fair and just treatment is asured to people in similar positions.
a. Bombay stock exchange
b. Bombay Stock Exchange is the oldest stock exchange in Asia. It was originally established as The Native share and stock broker’s association in 1875. It is the first stock exchange in India which got permanent recognition in 1956 from the Government of India.
Planning involves looking ahead and preparing for the future. It involves forecasting of future events such as customers’ demand, competition, go government policies, etc. In other words, planning attempts to handle future events to the best advantage of the organisation.
An important principle of organisational control is control by exception, According to this principle, only significance deviations from standards of performance must be brought to the management’s attention.
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.
Following are the 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 design-ing 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. Standardisation and Grading
Standardising refers to producing goods to predetermined specifications. Which help in achieving uniformity and consistency in the output.
Grading is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc.
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 as the goods so that they may not get damaged in transit,
LEVELS OF PACKAGING
1. Primary packaging
It refers to the product’s immediate container. In some cases, the primary package is kept till the consumer is ready to use the product e.g. toothpaste tube
2. Secondary packaging
It refers to additional layers of protection that are kept till the product is ready for use e.g. toothpaste cover.
3. Transportation packaging
It refers to further packaging components necessary for storage, identification or transportation.
i agreed this statement management is an art because of art is the skillful and personal application of existing knowledge to achieve desired results. Management is an art because It involves the application of the general principles for achieving the goals of the organisation.
Nature of management.
The nature of management is studied in terms of its dynamic function.
Management as an art
Art is the skillful and personal application of existing knowledge to achieve desired results. Management is an art because It involves the application of the general principles for achieving the goals of the organisation.
Management as a science
Science refers to a systemtised body of knowledge acquired by mankind through observation and experimentation and which is capable of verification. Management is an inexact science. Peter F. Drucker rightly opines,’’management can never be an exact science”.
Management as a profession
All professions are based on a well- defined body of knowledge that can be acquired through instructions
a. Over the Counter Exchange of India
b. OTCEI was set-up to provide small and medium companies an access to the capital market for raising finance in a cost effective manner. It was also meant to provide investors with a convenient, transparent and efficient avenue for capital market investment.
OBJECTIVES OF OTCEI
1. To provide a nationwide investor base to small companies
2. To provide trading facility in securities to investors
3. To ensure transparent dealings in securities
4. To offer quick trading facility to in vestors
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.
Optimum utilisation of resources emphasise that resources should give maxi-mum benefit with minimum cost, it also increase the effeciency 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. ln order to be successful, organisations have to adapt these changes. Principles are dynamic in nature.
It is satffing .Following are the 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.
a. Informal Communication
b. Advantages of Informal Communication
1. Employees can develop friendly relationship
2. It is very flexible and faster than formal communication
3. Employees attitudes, reactions etc., to the plans and policies can be easily ascertained’.
4. It reduces tension in employer- employee relations.
5. It can be used in conveying certain information which cannot be passed through official channel.
6. Special efforts and expenses are not necessary for informal organisation.
Disadvantages of Informal organisation
1. It tends to carry inaccurate and distroyed information
2. It is unsystamatic and cannot be relied upon
3. It leads to leakage of confidential information
4. It often carries rumors and misunderstanding.
Business environment consists of factors that influnces many enterprises at the same time. These are called dimensions of business environment.
1. Economic environment
The economic environment consist of the factors and forces concerning with means of production and distribution of wealth. It comprises of interest rate, rate of inflation, value of GDP, per capita inco me, tax rates, disposibie income, etc.
2. Social environment
The social environment consists of all the social and cultural forces with in which business firms operate. It comprises of customs and traditions, values, social trends, etc.
3. Technological environment
It refers to the change, taking place in the method of production and use of equipment to improve the quality of product.
In other words, we can say technological environment includes forces relating to scientific improvements and innovations, which provide new ways of producing goods and services and methods and technique of operating a business.
4. Political environment
The political environment consists of the forces concerning management of public affairs and their impact on business. It includes political conditions in the country and attitude of the government towards business and business policy.
5. Legal environment
Legal environment includes the Acts that have been passed by central parliament and state legislature. The laws related to business made by government are utmost importance
Following are the importance of organisation.
Since the activities are divided and subdivided 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.
3. Optimum utilisation of resources
It leads to proper usage of all materials, financial and human resources by proper assignment of jobs. Assignment of jobs to workers reduces duplication of work, prevents confusion, minimise wastage and allows the best possible use of resources.
4. Adaption to change
It facilitates modification in organisational structural and revision of inter relationships among people in order to adapt to environmental changes.
5. Effective Administration
It gives a clear description of duties and responsibilities of each individual. This helps to avoid confusion regarding work and avoids duplication of activities. Thus, it helps in bringing efficiency in administration.
6. Development of personnel
It stimulates creativity among st the managers. Effective delegation allows the managers to reduce their workload by as-signing routine jobs to their subordinates. Thus, it helps in the development of personnel.
7. Expansion and growth
Organising helps in the growth and diversification of an enterprise by adding more job positions, departments had new lines of product.
a. Financial planning
b. Following are the objectives of financial planning .
1. To ensure availability of funds When ever required.
This include a proper estimation of funds required for different purposes such as for the purchase of long-term asset or to meet day-to -day expenses of busies etc.
2. To see that the firm does not raise resources unnecessarily
Excess funding is almost as bad as in adequate funding. Even if there is some surplus money, good financial planning would put in to the best possible use so that the financial resources are not left idle and don’t unnecessarily add the cost.
Importance of financial planning.
1. It helps in forecasting what may happen in future under different business situation.
2. It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
3. It helps in coordinating various business function,
4. Detailed plans of action prepared under financial planning reduce waste, duplication of efforts.
5. It provide a investment and financing decisions on a continuous basis.
a. Unity of Direction
It implies that there should be one head and one plan for a group of activities having the same objective.
Henry fayols principles of management
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 means obligation to complete the asigned 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. Remuneration of Employees
According to Fayol, the quantum and methods of remunertion payable to employees should be fair and resonable lt should be satisfactory to both employees and employers.
NSE provides countrywide screen based and online trading facilities to investors. There is no trading ring and members buy and sell securities through their computer terminals which are linked with the central computer at the NSE.
The NSE provides trading in the following two segments
1. Wholesale debt market
2. Capital market segments
Whole sale debt market
This segments provides a trading platform for a wide range of fixed income securities that include central government securities, treasury bill, state development loans, bonds issued by public sector undertaking, floting rate, zero coupons, commercial paper, certificate of deposit, etc.
Capital market segments
Market segment of NSE provides an efficient and transparent platform for trading in equity, preference, deb entures, exchange, funds as well as retail government securities.
No lam not agreed this statement. Following are the rights of consumer.
The Consumer Protection Act provides for six rights of consume’rs they are :-
1. Right to safety
The consumer has a right to be protected against goods and services which are hazardous to life and health.
2. Flight to be informed
The consumers has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, directions for use etc.
3. Right to choose
The consumer has the freedom to choose from a variety of products at competitive prices.
4. Right to heard
The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a goods or a service.
5. Right to seek Redressal
The consumer has a right to get relief in case the product or services falls short of his expectations.
6. Right to consumer education
The consumer has a right to acquire knowledge and to be a well informed consumer throughout the life.
According to Koontz and O’Donnell” Managerial control implies the measurement of accomplishment against the standard and the correction of devia¬tions to assure attainment of objectives according to plans”.
TECHNIQUES OF MANAGERIAL CONTROL
The various technique of managerial control may be classified into two broad categories: Traditional techniques and Modern techniques.
Traditional techniques include :
1. Personal observation
In this method managers observe the working time of an employee. It creates a psychological pressure on the employees. It is a very time consuming exercise
2. Statistical reports
The organisation uses various statistical techniques for standardising the performance.
3. Breaken even analysis
Breakeven point is a point when there is no profit no loss. It is technique used by managers to study the relationship between costs, volume, and profits.
4. Budgetory control
It is a technique of managerial control in which all operations are planned in advance in the form of budgets and actual re suits are compared with budgetory standards.
It includes the following
1. Return on investment
It is used for measuring whether or not invested capital has been used effectively for generating reasonable amount of return,
2. Ratio analysis
It refers to analysis of financial statements through computation of ratio,
3. Responsibity accounting
It is system of accounting in which different sections, divisions, and departments of an organisation are setup as responsibility centres. Responsibilty centres are cost centre, Revenue centre, investment centre.
Management audit refers to systematic appraisal of the overall performance of the management of an organisation,
5. PERT and CPM
PERT (Programme Evaluation and Review Technique) and CPM (Critical Path Method) are important network techniques useful in planning and controlling.
6. Management Information System(MIS)
MIS is a computer based information system that provides information and support for effective managerial decision-making.
Role of public relations
The role of public relations can be dis-cussed with respect to functions per-formed by public relations department. These functions are.
1.Smooth Functioning of business As quoated in defintion by public association relation.lt helps in analysing trends, predicting their consequences, counseling organisational leaders and implementing planned programme of action, and thus help in smooth func-tioning of business and achievement of objectives.
2. Building corporate image and brand equity
Public relations covers a wide range of tactics,tools and programmes to pro-mote and protect company image and products lt uses the tools to build corporate image which ultimately affects favourally on its products.lt pursues for this purpose-up keep of parks, gardens, sponsoring sports events,etc.
3. Launching New products
The good image promotion itself lends credibility to new launches of the organisations
4. Press Relations
The public relations department is in contact with the media to present true facts and a correct picture about the company, otherwise, news can get distroyed if it is taken from other source.
5. Corporate Communication
The Publicrelations department pro¬motes the image of the company by communicating with the public and the employees of the organisation.
The public relations department is liable to maintain healthy relationships with government officials,ministers of industry finance,associations of commerce and industry,etc.At the same time, they have to be proactive in promoting or defeating regulations that affect them.
The public relations department ad¬vises the management on general , issues that affect the general public and the good will of the company. Factors such as environment,wildlife,social issues,education,etc.help in promoting public relations and creating good will of the company in the market.
b. 1. Setting Objectives
Every organisation operates to achieve certain objectives. Objectives specify what the organisation wants to achieve. Therefore, the first step in planning is to define and describe clearly the objectives of the organisation and each departments or unit within the organisation.
2. Developing premises
The manager is required to make certain assumptions about future. These assumptions are known as premises. Premises are the base, upon which plans are drawn. They may be forecasts, existing plans or past information.
3. Identifying Alternative course of action.
Once the objectives and planning ‘ premises are established, it becomes necessary to discover the various course of action, which may be used to achieve the established objectives.
4. Evaluating Alternative course
The next step is to weigh the pros and cons of the alternative. It is necessary to evaluate the positive and negative aspect of each alternative in the light of the objectives to be achieved.
5. Selecting an alterative
This is the real point of decision making. The best plan has to adopted and implemented. An ideal plan would be one which most profitable feasible and has the least negative consequences.
6. Implementing the plan
This step is to concerned with putting the plan into action and doing what is required. The managers start communicating the plans to employees and initiate them to carry out the activities according to the specifications of plans.
7. Follow-up action
Planning is a continuous process, so the manager keep on following, up the plans to see that activities are performed as per the shedule or not.