NAVODAYA VIDYALAYA SAMITI

SHILLONG REGION
WORKSHOP
ON
BUSINESS STUDIES FOR
PREPARING STUDY MATERIAL
FOR CLASS XII
(AISSCE 2014)
Patron:

Course Director:

SMT P. R VERMA

Sh. S. F Rahman

DEPUTY
COMMISSIONER

Asstt. Commissioner
NVS RO SHILLONG

NVS RO SHILLONG
Resource Person:

Coordinator

Shri S. Sharma PGT(Com), JNV

Morigaon

Mr. O. P. Sharma, Principal,

JNV Morigaon

Mr. K. Parand Hamaiah PGT(Com)

JNV Lakhimpur

INDEX
Sl.

Chapter

Page no.
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1

No.
1

Nature and Significance of

5-8

2
3
4
5
6
7
8
9
10
11
12

Management
Principles Of Management
Business Environment
Planning
Organizing
Staffing
Directing
Controlling
Business Finance
Financial Market
Marketing Management
Consumer Protection

9-11
12-13
14-16
17-18
19-20
21-23
24-25
26-27
28-29
30-34
35-38

NAVODAYA VIDYALAYA SAMITI

SHILLONG REGION

Page
2

(Ministry of Human Resource

Development,
Dept. Of Secondary and Higher Education, Govt. of
India)
Website: nvsroshillong.gov.in

STUDY MATERIAL FOR AISSCE2014

SUBJECT: BUSINESS STUDIES
CLASS XII

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3

CONTENTS:
1.CHAPTERWISE MATERIAL FOR LOW ACHIEVERS
2 MATERIAL FOR HIGH SCORE ACHIEVERS

Chaptervise Material for study includes

1.QUESTION CARRYING H.O.T.S
2.VALUE BASED QUESTIONS
3.QUESTIONS FROM PREVIOUS YEAR QUESTION
PAPERS
4.FREQUENTLY ASKED QUESTIONS OF C.B.S.E.

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CHAPTER :1 MANAGEMENT:

VALUE BASED QUESTION

UNIT-1

(NATURE AND SIGNIFICANCE OF MANAGEMENT)

1. A cloth manufacturer distributes its defective product at free of cost (after getting
them repaired from NariNiketan at lower cost) to orphanage. Which values are being
attested in this solution?
2. An organization has production, purchase, marketing, finance and human resource
departments. All of them working together to achieve organizational goals. From
your point of view which value is reflected here?
3. An manufacturer of fridge has used new technology in place of using harmful gases
which do not cause air pollution. Which value is being followed here?
4. A production manager has directed his employees to put/ throw different types of
wastes like papers, plastics & chemical in the respective earmarked dustbins. By
this which value does he want to inculcate among his employees?
5. An industrial unit, working in backward area opens schools for education at nominal
cost for the children of its employees and local people. By this act which value is
promoted here?
6. A factory established in a residential locality, uses machines creating heavy noises
while running. Factory manager is always ready to provide financial help to local
people. Due to noise pollution student cant study properly and resident cannot
sleep/work properly. The owners also know it. Which values are affected here?
7. A famous doctor charges high for consultation from his patients and refuses to treat
the poor patients without consultation charges. His also pays attention to medical
representatives and agent of Pharma Co. He takes gifts and commission also. In
your view, is it professional behavior of doctor? Does he follow the code of conduct
of doctor?

QUESTIONS BASED ON HOTS

1. If a manager is able to achieve the target of production of 5000 units but a
higher cost. Is he efficient or effective?
Ans: He is effective as he achieves the target on time but he is inefficient as he
incurred higher cost.

2. Success of dubbawala (who carries tiffin to offices) of Mumbai is example

of which aspect of management. Explain the importance of this aspect?
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Ans: Coordination. For importance refer to textbook.

3. Is planning, organizing, staffing, directing and controlling applied in

organizations such as schools, clubs, restaurants, hospitals, etc.? If yes
which characteristics of management does it signify? Explain that feature.
Ans: Yes, the characteristics which signify this is Management is Pervasive. For
explanation refer to textbook.

4. The task of management is to make people work towards achieving the

organizational goals by making their strengths effective and their
weakness irrelevant. Identify the dimension of management.
Ans: Management of people.

5. Bhuvan argues that management is required in all kinds of organization

where asPiyush feels that management is not required in non-business
organizations such as schools, club, hospitals, etc. who is correct?
Ans: Bhuvan, because management is pervasive .

6. An organization is a collection of diverse individuals with different

needs. Which characteristics of management are highlighted in this
statement?
Ans: Management is a group activity.

7. A business needs to add to its prospectus in the long run. Identify the
organizational objectives highlighted in this statement. Explain other two
objectives under this categories.
Ans: Growth.
Other two objectives under this category are: (i) Survival (ii) Profit. For explanation
refer to textbook.

8. A manager applies the various theories of management in his unique

personalized way. What aspect of nature of management does this
statement indicate?
Ans: Management is an art.

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9. Your father is working in an MNC as chief operating officer. At what level of

management is he is working? Also explain any five functions of that
level?
Ans: Top level management.

10.
Mohan has retired from the post of a foreman in a factory. At what
level of management he is working?
Ans: Supervisory or operational level

11.
Your father wants you to do M.B.A. before joining family business.
What does this show about the nature of management?
Ans: Management is on the path of becoming a profession.

12.
Dominos Pizzas keep introducing new variety in its menu. Which
characteristics of management is highlighted in this? Explain any two
other characteristics of management?
Ans: Management is dynamic. For other characteristics refer to textbook.

13.
Assigning duties, grouping tasks establishing authority and
allocating resources is one of the functions of management. Name that
function.
Ans: Organising.

14.
Name the process of designing and maintaining an environment in
which individuals work together in groups efficiently accomplishing
selected aims.
Ans: Management.

15.
Name the process by which manager synchronises the activities of
different departments.
Ans: Coordination.

16.
Management is the life giving element in every business, without it
the resources of production remain resources and shall never become
production. Comment.
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Ans:Yes it is right to say that management is life giving element because of following
importances For explanation refer to textbook.

17.
Name the level of management engaged in
(i)
Selection of employees
(ii)
Introducing new products
(iii) Design a suitable advertisement Campaign to sell a new product
(iv) Framing the capital structure of the company
(v)
Preparing performance reports of the employees
(vi) Hiring casual labours
Ans: (i) middle level
(ii) top level
(iii) Middle level
(iv) Top level
(v) Supervisory or lower level

18. Name the function of management.

(i) Finding out deficiencies in implementation of plans.
(ii) Establishing authority responsibilities relationship between superior and
subordinates.
(iii) Instructing and ordering employees.
(iv) Deciding policies, procedure, objectives of an organization.
Ans: (i) Controlling
(ii) Organising
(iii) Directing
(iv) Planning

18.
At what level of management, managers are responsible for the well
fare and survival of the organization?
Ans: At top level.

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LONG ANSWER QUESTIONS

1 EXPLAIN THE IMPORTANCE OF MANAGEMENT ?
2 EXPLAIN THE SOCIAL OBJECTIVES OF MANAGEMENT?
3 WHY COORDINATION IS CONSIDERED AS AN ESSENCE OF
MANAGEMENT?
4 WHAT ARE THE FUNCTIONS OF MANAGEMENT? EXPLAIN

UNIT-2
(PRINCIPLES OF MANAGEMENT)

VALUE BASED

1. In an organization Ashok and Sheela are working at the same post but being a
male employee Ashok has more rights than Sheela. Which value is violated here?
2.
A firm has taken the decision to employ more employees than female
employees because they can work over time in case of excess work. Which values
are being affected here?
3. An organization proposes the use of CFLs and LEDs which consumes less
electricity than normal bulbs for its lighting arrangements. Which value is attained
by the organization?
4. An organization has done plantation around its factory premises and only after
purifying the wastes, it throws it into the drains. Which values are being followed by
the organization?
5. An entrepreneur wants to start his business in backward area because govt.
gives many incentives and rebates in taxes. Which results in low cost and he will be
able to sell the product at low prices. There he will be able to get large by
deforestation. Which values are being affected here?

QUESTIONS BASED ON HOTS

PRINCIPLES OF MANAGEMENT
1. Which technique of Taylor insists in hiring specialist for every job? Explain that
technique.
Ans. Functional foremanship. For explanation refer oage no. 50.
2. Which technique of taylor insists in paying higher wages to
efficient employees?
Ans.Differential piece rate system.
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3. Which technique of taylor insists in using most optimum way of doing

a job?
Ans.Method study.
4. Fayol points out the danger and cost of unnecessary labour turnover in one of
his
Principles of management. Name that principle.
Ans.Stability of tenure.
5.Identify the techniques of taylor which bring uniformity and standardisation in
work.
Ans.Techniques of standardization.
6. Name the devicewhich permits direct communicaton between employees
working
At same level.
Ans.Gang plank.
7. Specify the consequence of violating principle of remuneration.
Ans.Employees will get demotivated.
8. Which principle of managements insists worker should be encouraged to
develop
And carry out their plans for development? Explain that principle.
Ans.principle of initiative. For explanation refer page no. 48.
9.The management of a company promises the workers to pay extra wages if they
work
Overtime, but later on management refuses to pay extra wages. Which principle
is
violated in this case?
Ans. Principle of discipline
10. A Manager should replace I with we in all his conversation to encourage
team spirit. Identify
the principle of Management emphasized here.
Ans: Principle of Esprit De Corps.
11. Which technique of Taylor overlook the principle of equity?
Ans: Differential piece wage plan.
12. On which principle of Fayol, Taylors technique of fuctional foremanship is
based?
Ans: Division of Work.
13.Hina and Hitesh are typists in a company having the same educational
qualifications.
Hina is getting Rs.3000 per mother and Hitesh Rs.4000 per month as salary for
the same working
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hours. Which principle of management is violated in this case? Name and Explain
this principle.
Ans.in this case the principle of equity is violated. As both are having same
qualifications
working at the same authority level but getting different salaries.
For Explanation refer to text book.
14.the production manager of bharat Lid. Instructs a salesman to go slow in selling
the products
whereas the marketing manager is insisting on fast selling to achieve the target.
Which principle
of management is being violatd in this case? State anyone consequences of
violating this
principle.

Ans: in this case as there is the violation of principle of Unity of Commands. As

salesman is
getting orders from two bosses , the consequences of violation of this principle can
be
(i)
(ii)
(iii)

Confusion in the mind of salesman

Reduction in efficiency of employee
Ego clashes among production manager and marketing manager.

15. Purchase manager of ABC Ltd. Gave order to supply raw material @ Rs 1000
per quintal to his
relative whereas same quality raw material is available @ Rs 900 per quintal by
another supplier.
This is violation of which principle of management? Explain that principle.
Ans: It is violation of principle of Subordination of individual Interest to group
interst. For
explanation refer to textbook.

LONG ANSWER QUESTIONS

Q1 EXPLAIN THE PRINCIPLES OF SCIENTIFIC MANAGEMENT?
Q2 EXPLAIN THE PRINCIPLES OF MANAGEMENT?
OR
EXPLAIN THE PRINCIPLES OF SFAYOL S MANAGEMENT?
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Q3 EXPLAIN THE TECHNIQUES OF SCIENTIFIC MANAGEMENT?

UNIT-3
(BUSINESS ENVIRONMENT)

HOTS

1. In recent times the government has increased the prices of diesel and LPG. Which
value is being overlooked here?

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2. After the change in government policies, foreign companies like coca-cola have
prohibited to work in India. These steps of the government have boosted which
values?

VALUE BASED QUESTIONS

BUSINESS ENVIRONMENT
Q.1.Which industrial policy has opened the doors of Indian economy for
multinational companies?
Ans- Industrial policy 1991.
Q.2.U which environment does change in Taste fashion and trend fall in?
Ans- Social environment.
Q.3.List two examples of changes in social environment which affect business
organization.
Ans- (1) Belief and customs of people.
(2) Education system.
Q.4. What is L.P.G. in context of business environment?
Ans- In business environment L.P.G. stands for:
(1)L :Liberalisation (2) P: Privatisation (3) G: Globalisation.
Q.5.List any two impacts of Government policy changes on business and
industry.
Ans- (1)Increased completion (2) World class technology.
Q.6.The people of some regions translated the slogan of Come Alive used by
Pepsi company as Come out of grave. As a result company lost its market
share rather than picking up. This is the effect of which environment and
how does this dimension of environment affect the business?
Ans:- This is the effect of social environment. As people misunderstood the meaning of slogan and it
hurts their sentiments.
The social environment has great influence over the demands of customers because social environment
constitutes taste, preference, tradition and expectations of customers, the customer is the king pin in
present day market and you can win over your compitetor only by wining large segments of customers.
Although changes in the social environment may effect the business slowly or quickly but the cost of
ignoring the customs, traditions, and preferences of the people could be high.
Q.7. How would you argue that the success of a business enterprise is significantly influenced
by its environment?
Ans:- It is correct to say that the success of business enterprises is greatly influenced by the force and
factors prevailing in the environment by analyzing and scaning the business environment. Business get
the following benefits.
(1) First mover advantage.
(2) Warning signal.
(3) Helps in tapping business resources.
(4) assisting in planning and policy formation.
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(5) Helps in image building

(6) Improvement in performance
(7) Helps to adopt rapid changes
Q.8. Name the term/process which means integrating the economy with the rest of the world.
Ans:-Globalisation.
Q.9. Name the term/process under wich reduction in tax rates and lifting of unnecessary
control over the economy was under taken.
Ans:-Liberlisation.
Q.10. If new products are introduced in market by new technique, which type of
environment?
Ans:- Technological Environment.
Q.11. The project of reestablished in Gujarat is indicated by which factor of environment?
Ans- Political Factor
Q.12. The finance Minister reduced the repo rate to overcome Recession. This is related to
which dimension of business Environment?
Ans:- Economic Environment
Q.13. ABC Ltd., a book publishing house published books on various subjects based on CCE
pattern before any publishing could print it. What advantages will the publishing house
get?
Ans:- ABC Ltd., will get the benefits of First mover advantages
Q.14. The sale of Greetings Card, sweets chocolates, etc. increases in India during Diwali, Id,
Guruparv and Christmas. Name the dimension of environment related to this.
Ans:- Social environment

LONG ANSWER QUESTIONS

Q1 EXPLAIN THE DIMENSIONS OF BUSINESS ENVIRONMENT?
Q2 EXPLAIN THE ECONOMIC ENVIRONMENT IN INDIA?
Q3 WHAT ARE THE IMPACTS OF GOVT. POLICY CHANGES ON BUSINESS IN
INDIA?

U
U

UNIT-4
(PLANNING)

VALUE BASED

1. Which quality of employee is restricted by the act of planning?

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2. Removal of mobile towers from residential area is being planned by the government
to promote which value?
3. Government is planning to construct a ware house in remote area to store
necessary goods. So as to make them available even at the time of bad weather
regularly. Which values are being considered here to be achieved by the
government?
4. In order to reduce the cost, an organization is planning the following:
a. To reduce the charities to the social and religious institution.
b. To arrange the skilled workers from outside inspire of semi-skilled local
employees.
c. To increase the working hours.
d. To increase the rate of remuneration.
Which value will be affected by the decisions?
5. Tobacco manufacturer is planning to sell its product outside the school and
colleges. Which values are violated here from your point of view?
6. In an organization executive director takes all the decision himself. He does give
order only to the subordinates. Which value is overlooked here?

QUESTIONS BASED ON HOTS

Q .1.Does mere planning ensure success? Explain why?
Ans: No.
{For explanation refer text.}
Q.2. Give two examples of internal premises.
Ans: 1.Premises related to requirement of capital.
2.requirement of raw materials.
Q.3.Give two examples external premises.
Ans: 1.assumption regarding government policy.
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2.assumption regarding competitor.

Q.4.Name the type of plan which serves as guide for overall
business planning and defines the end result which
organisation strives to achieve. Also give difference between
this plan and policy.
Ans: objective. For difference refer text.
Q.5.ABC Ltd. Decides to advise their product on T.V. and radio.
What types of plan should it prepare?
Ans: Strategy.
Q.6.Infosys Ltd. Decide to give 20% of jobs to women. What
type of plan is it? Explain this plan.
Ans: policy. {for explanation refer text.}
Q.7.An employee will retire at the age of 60 years. What type
of plan is it?
Ans: Rule.
Q.8. what type of plan is defined as long range blue print of an
organisastions desired image, direction and destination?
Ans: Strategy.
Q.9.A firm wants to increase its sales by 25% for the coming
year. Which type of plan is involved in it?
Ans: Objective.
Q.10.ABC Ltd. Gives promotion on basis of seniority. Which
type of plan is it?
Ans: policy.
Q.11.Name the type of plan in which minutest details are
worked out,i.e.,procedure,rules, budgets,etc.
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Ans: programme.
Q.12. Name the type of plan which provides the basis for
interpreting the strategy.
Ans: Policy.
Q.13.Name the type of plan which provides directions for all
decisions ,and actions.
Ans: Objective.
Q.14.Which type of plan has flexibility?
Ans:Rules.
Q.15.Name the type of plan which is time bound and linked
with measurable out come.
Ans:Objective.

LONG ANSWER QUESTIONS

Q1 EXPLAIN THE PROCESS OF PLANNING?
Q2 WHY PLANNING FAILS SOMETIMES INSPITE OF BEST
EFFORTS BY MANAGERS?EXPLAIN?
Q3 EXPLAIN THE IMPORTANCE OF PLANNING?
Q4 WHAT ARE THE DIFFERENCES BETWEEN:
a . PLANS
b.

AND RULES

strategy

and policy

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UNIT-5
(ORGANIZING)

VALUE BASED
1. An electronic company manufacturing TV and refrigerator wants to bring two new
products Washing Machines and ACs in the market. For each product separate
division are to be set up. In charge of working machine division and ACs division
will be female and disabled person respectively. Which values have been considered
here?
2. In an organization top level management has not distributed work among the
subordinates according to their abilities and skill but has been distributed on the
basis of caste and religions. Which values are neglected?
3. A manager has kept all right of decision making with him. Each and every employee
has to come to him for orders again and again. Which values are being violated
here?
4. In an organization formal organization is followed strictly where the employees have
to work as per the direction only. The employees are performing under pressure. In
your view, what changes are required in this company?

Organising
Q.1 State whether the principal of scalar chain is followed in informal
organization or not?
Ans: No, it is not followed.
Q2State whether functional organisaion is based on products. Draw the
chart of a functional organisation.
Ans: No, for drawing a chart refer to text book.
Q3 What would be the effect of No delegation of work?
Ans: There will be delay in work and manager will become overburdened.
Q4 Name the process of entrusting responsibility, authority and creating
accountability of theperson whom work has been handed over. Explain
the importance of this process.
Ans: Delegation. For importance of process refer text book.
Q5 State the relationship between authority, responsibility and
accountability.
Ans: (i) Authority is delegated, responsibility is assured and accountability is
imposed.
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(ii) Responsibility is derived from authority and accountability is derived from

responsibility.
Q6 What should crowing company adapt centralised or decentralised
policy?
Ans:Decentralised.
Q7 The number of subordinates that can be effectively managed by a
superior refers to which aspect of management?
Ans: Span of management.
Q8 Grouping of jobs of similar nature and organiging these jobs as
separate departments create a particular type of organisational
structure.
Ans: Functional structure. For advantages &disadvantages refer text book.
Q9 Is organisational structure essential to provide relationship between
various positions in the organization?
Ans: Yes, it is essential.
Q10 State anyone objective of organiging.
Ans: Optimum utilisation of resources.

LONG ANSWER QUESTIONS

1 WHAT DO YOU MEAN BY DECENTRALISATION? EXPLAIN
ITS ADVANTAGES?
2 EXPLAIN THE DIVISIONAL STRUCTURE OF ORGANISING?
WHY IT IS USED BY THE BUSINESS ORGANISATIONS?
3 DIFFERENTIATE BETWEEN :
FORMAL AND INFORMAL ORGANISATION
CENTRALISATION AND DECENTRALISATION

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UNIT-6
(STAFFING)

VALUE BASED
1. A personnel manager while selecting new employees appoints only those persons
who fulfill his personal requirement directly or indirectly. Which values are violated
here?
2. In an organization the female employees are getting promotion late as compared to
male employees. Which value is missing here?
3. An employee has been terminated due to a small mistake without hearing him,
while the other one was not terminated on the same mistake. Which value has been
neglected here?
4. An Automobile Company runs a factory in a backward area. It has opened a training
center to train the people. Which value has been kept in mind here?
5. An organization places an advertisement for employment mentioning some terms
there in those terms are not followed during selection of employee. Which values
are ignored here?
6. A production manager pays less than the minimum wages and gets their signatures
on minimum wages. Which values are not being followed by him?

QUES . BASED ON HOTS

Staffing
1. Why is recruitment called positive process?
Ans:Recruitment is called positive process because more and more people
are invited to apply for the job.
2. Name the concepts which involves growth of individuals in all
respects?
Ans: Development.
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3. our assets walk out of the door each evening, we have to make
sure that they come back the next morning. This statement relates
to which function of management. Explain the importance of this
function.
Ans: Staffing. For importance of function refer textbook.
4. Out of human resources management and staffing which one is
wider?
Ans: Human resources management.
5. Name the source of recruitment in which newspapers, employment
exchange, T.V., etc. are used.
Ans:External source of recruitment.
6. Name the method of training suitable for plumbers, electricians and
iron workers. Explain that method.
Ans: Apprenticeship.
For explanation refer textbook.
7. Which source of recruitment has the disadvantages of increase in
labourturnover.
Ans:External source of recruitment.
8. Name the method of training which facilitates easy promotion
replacement or transfers.
Ans: Job rotation.
9. Some learning opportunities are designed and delivered to improve
skills and abilities of employees whereas some others are designed
to help in the growth of individuals in all respects. Identify and
explain the two concepts explained above.
Ans: The two concepts explained are:
1. Training
2. Development

LONG ANSWER QUESTIONS

1. WHY INTERNAL SOURCES OF RECRUITMENT ARE NOT USED BY BUSINESS
ORGANISTION?
2. EXPLAIN THE SELECTION PROCESS?
3. WHAT ARE THE EXTERNAL SOURCES OF RECRUITMENT?EXPLAIN?
4. DIFFERENTIATE BETWEEN :
A .TRAINING AND DEVELOPMENT
B. ON THE JOB METHODS OF TRAINING AND OFF THE JOB METHODS OF
TRAINING

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UNIT-7
(DIRECTING)

VALUE BASED

1. A supervisor hears the suggestions and also implements the good suggestions while
taking decision for the employees. Which value has been given importance here?
2. In an organization, the good environment, refreshment corner and entertainment
rooms have been for all employees. Which values have been considered here?
3. In an organization, the employees are being paid fair wages/remuneration and
productivity-based bonus. Which values are highlighted here?
4. A liquor manufacturing firm provides liquors to its employees at cheaper rates to
motivate them. Which values are deficient in this plan?
5. In an organization, informal communication is stressed instead of formal
communication which results in non-reaching of proper communication to proper
person in proper time. It results in either non-completion or delay in work. Which
values have been violated here?
6. A leader solves the problems relating to work and the personal problems also of the
followers. Which values is he following here?

QUES BASED ON HOTS

DIRECTING
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Q. NO. 1-Name the incentive in which benefits like car allowance, housing, medical
aid are
offered to an employee.
Ans-Perquisites
Q . NO. 2-Name the element of directing which refers to the ability of influencing
people to
strive willingly for mutual objectives.
Ans - Leadership
Q. NO. 3-A goal leader does not wait for opportunities but creates them.This
statement is
related to which quality of good leader? Explain any other three qualities.
Ans- Initiative.
For other three qualities refers to text book.
Q. NO. 4-Suggetion and vacation are include in which type of formal
communication.
Ans they are including in upward communication.
Q. NO. 5 - Better human relationship is one of the advantages of which type of
communication.
Ans - Informal communication.
For importance refers to text book.
Q . NO. 6 At which level of management function of directing is performed?
Ans At all levels
Q . NO. 7 - Name the communication network in which each person can
communicate with his
adjoining two persons.
Q. NO. 8 name the kind of monetary incentive in which employee are offered
companys share
at a lower price.
Ans Co-partnership.
Q. NO. 9- Suggest which element of directing is suitable under following situation
and why?
(i) Workers are always unwilling to take up any kind of work. Due to rise
in demand
firm wants them to cooperate to meet pending orders .The supervisor is finding it
difficult to cope with this situation.
(ii) workers of at factory are going to production manager for guidance
and
Information as a result he is overburdened with the work. Advise him
with which
Function of diretecting he can reduce his work load.
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(iii) In an organization employees hesitate to express their feelings and

suggestions
They do not take initiative to express their problems and
suggestions.
Ans (i) In the situation manager must use motivation element of directing to
induce workers
and to gat willing cooperation of workers.
(ii) In this situation production manager must appoint a supervisor who will
act as a
Linking pin between production manager and workers.He will also play
the role of a
guide to help workers to solve their problems.
(iii)In this situation there is a great need for effective leadership.The
manager must learn
all the qualities of leadership and through training he must try to get as many
qualities as possible .He must try to develop confidence and motivation in
employees
through empathy and listening skill .
Q. NO. 10- Name the process of stimulating people to action to accomplish desired
goals .
Ans Motivation
Q. NO. 11 Name the element of directing which refers to the ability of influencing
the people
to strike willingly for mutual objective .
Ans Leadership
Q. NO. 12 - Himanshu and Silpa are working in the same organization but in
different
department one day at lunch time Silpa informs Himanshu that due to
computerization many
people going to be retrenched soon from the organization. Name ,which type of
communication is this ?State any two limitation of this type of organization .
Ans Informal Communication.
For two limitation of this type of communication refers to text book.
Q. NO. 13 Suggestion and reaction are include in which type of formal
communication?
Ans Upwards communication.
Q. NO. 14 Communication originally drafted in English has been very poorly
translated in
Hindi.Name the type of barrier to effective communication and explain any other
two barrier of this type.
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Ans Semantic barriers .

Other two barrier of under this type are:
(i)badly expressed message .
(ii) symbol with difference meaning .
Q. NO. 15 The greatest number of managerial level in the organization makes it
more complex
. This ststement is about which type of organizational barrier to communication ?
Ans - Organizational barrie .

LONG ANSWER QUESTIONS

Q1 WHAT DO YOU THINK ABOUT THE QUALITIES OF A GOOD
LEADER?EXPLAIN?
Q2 EXPLAIN THE TYPES OF COMMUNICATION NETWORKS?
Q3 DIFFERENTIATE BETWEEN FORMAL
INFORMAL COMMUNICATIONS?

COMMUNICATION AND

Q4 EXPLAIN THE MASLOWS THEORY OF MOTIVATION?

Q5 EXPLAIN THE NON MONETARY INCENTIVES OF
MOTIVATION?
Q6 EXPLAIN 3 ADVANTAGES AND 3 LIMITATIONS OF
INFORMAL COMMUNICATION?
UNIT-8
(CONTROLLING)

VALUE BASED

1. In controlling process, standards were set according to the efficiency of the average
employee. Which value has been kept in mind while setting the standards?
2. On coming to know the negative deviations, fines are imposed on erring employees.
Which value is being violated here?
3. In a company, employees achieved quantitative standard but could not attain
qualitative standard. Which values have been ignored here?

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4. A manager observes that an old employee is not doing the required work. Manager
scolds him rudely without asking him the reasons. In your view, how would the
manager have behaved and which values should he have kept in mind?
5. A supervisor observes that during working hours some employees were busy in
gossiping instead of working. Inspite of instructions, they did not start working.
When the matter was brought to the notice of management the union threatened to
go on strike. In your view, was the behavior of employees and the union justified?

QUES BASED ON HOTS

CONTROLLING
Q.1.What are the two principles a manager must consider while dealing
with deviation effectively.
Ans: 1.critical point control.
2.control by exception.
Q.2.You are a manager in a car manufacturing company.It is reported
that postal expense have increased by 10% and cost of raw material is
increased by 2% which of the two deviation is more critical to you?it is
related to which concept of controlling?Explain it.
Ans:Rise in raw cost of material 2%.it is related to management by
exception. For explanation refer text.
Q.3.What do you mean by key result area in context of controlling?
Ans:These are the areas which are critical and very important for
success of the organization.
Q.5.Which principle of management control is based on belief an
attempt to control everything may end up by controlling nothing?
Ans:Principle of management by exception.
Q.6.Engineer india Ltd. Is engaged in manufacturing machine
components the target productionis 300 units per day.The company
had been successfully attaining the target 3 months ago.Over the last
3 months it has been observed daily production varies between 220
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and 250 per units.identify the management function to rectifty the

above situation.Briefly state the procedure of this function.
Ans: function related to this is controlling.refer text.

LONG ANSWER QUESTIONS :

1 EXPLAIN ANY 6 MODERN TECHNIQUES OF CONTROLLING?
2 EXPLAIN THE PROCESS OF CONTROLLING BRIEFLY?
3 EXPLAIN THE LIMITATIONS OF CONTROLLING?
4 EXPLAIN THE
RELATIONSHIP BETWEEN PLANNING AND
CONTROLLING?

UNIT-9
(BUSINESS FINANCE)

VALUE BASED

1. In a company profits are heavy and in future less scope of extensions exists.
Company has decided to pay a very less dividends. Here, which value and whose
interest have been affected?
2. A company wants to show higher profit and for this:
a. Depreciation was charged at lower rates.
b. Goodwill, patents, trademarks and other intangible assets were shown at
higher value. Explain the value which is affected here.
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3. A wholesaler of onion comes to know that due to less production the prices of onion
will increase heavily. He stored the onion and during rising prices earns heavy
profits by selling the stored onion. From the earned profits, he provides some money
for social activities also. In this situation, which values does he reflect here?

QUES BASED ON HOTS

BUSINESS FINANCE
1. Canara Bank wants to open a new branch of his bank. What is this
decision called?
Ans: This decision is considered as investment this decision.
2. A decision is taken to distribute certain part of profit to
shareholders after paying tax. What is this decision called? Explain
any three factors affecting such decisions.
Ans: Dividend decision.
For explanation of factors refer textbook.
3. Name types of capital which are part of capital structure.
Ans:Debt and Equity.
4. A decision is taken to raise money for long term capital needs of
business from certain sources. What is their decision called?
Explain any three factors affecting such decisions.
Ans: Financing decision.
For explanation of factors refer textbook.
5. What is considered the cheapest source of finance?
Ans: Debt.
6. What is financial leverage? Explain with the help of an example?
Ans: Financial leverage is promotion of debt in overall capital.
For example refer textbook.
7. What is favourable financial leverage?
Ans: Favourable financial leverage means when, ROI > Rate of interest on
debt.
8. What is cost of raising funds called?
Ans: Floatation cost.
9. What determines overall financial risk?
Ans: Proportion of debt in the total capital determines the overall financial
risk.
10.
In case of high fixed operating cost, company should prefer
debt or equity?
Ans: Equity.
11.
What is the another name for long term investment decision?
Ans: Capital budgeting.
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12.
A sound financial plan is the key sources of sound financial
management of the company. Discuss.
Ans: Yes, it is right to say that sound financial plane is key to success of
sound financial management because of following importance.
Refer textbook for importance of financial planning.
LONG ANSWER QUESTIONS:
1 EXPLAIN THE FACTORS AFFECTING CAPITAL STRUCTURE?

UNIT-10
(FINANCIAL MARKET)

VALUE BASED

1. A public Ltd. Co. achieved the minimum subscriptions by private placement. Whose
interest has been ignored here?
2. A fast food manufacturing foreign company plans to open chain of cheap food
centers near the schools in Delhi. According to you, what will be the results of this
plan?

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3. A company does window dressing in its financial statement to attract investors and
creditors. Is it correct in your opinion? Which values are affected here?

QUES ON HOTS
1.What is meant by investment decision?
2.Identify the decision taken in financial management which affects liquidity as well as
profitability of
business 2008
3.A company wants to establish a new unit in which a machinery worth Rs.10 lakh is
involved. Identify
thetype of decision involved in financial management
4.What is meant by financial planning
5.Why is working capital needed? Give any one reason.
6.State why working capital requirements of service industry are different from that of a
manufacturing
Industry 2008
7.Whatis meant by financial assets?

LONG ANSWER QUESTIONS

1.What are the main features of OTCEI? 5
2.The Directors of a newly established company having paidup equity share capital of
Rs.2.5 crores
desires to get it shares traded at an all India level stock exchange. As finance manager of
thecompany,
suggest the name of the stock exchange for the purpose. Give any three reasons in
support of your
answer.5
3.Outline the functions of SEBI (5)
4.Distinguish between NSEI and OTCEI on the following bases. (5) 2008
i)Year of establishment

ii)Paid up capital
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iii)Securities traded

iv) Duration of settlement

v)Objective
5. Why was SEBI set up? Explain any four regulatory functions of SEBI. 5 2009
6.What is meant by financial market? Explain the functions of financial market.6
7.What is money market? Explain the features of money market 6
8.What is money market? Explain various money market instruments.6
9.Explain any six features of NSEI 6

UNIT-11
(MARKETING MANAGEMENT)

VALUE BASED

1. A tea producer uses such packets/things for packing tea, which can be used, even
after consuming the tea, for other purposes. Here, which values are being affected
by him?

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2. A Cosmetic manufacturing Co. claims in advertisement that its face cream improves
the face complexion. On using it was found incorrect. Here, which values are being
ignored?
3. A commercial unit uses rocks, trees, electronic poles, historical movements and
walls to advertise its products. Which faults of the company does this advertising
policy show?
4. A soft drink manufacturing Co. uses dangerous stunts in the advertisements
claiming that its drinks make the user fearless and stronger. In your view, what
could be the bad effects of this? How can it be stopped?
5. One manufacturer of electronic product produces such products which need special
care while using it. But the company has not given the instructions to consumers. If
you were the manager of the company what steps would you take?
6. A company uses same promotional schemes like buy one, get one free, free
samples, free gifts and so on to boost the sales of its products and earn higher
profits. This results in unnecessary hike in the prices of the products. In your
opinion, is this policy in the interest of society?

QUES. BASED ON HOTS

MARKETING MANAGEMENT
Q.1.Which marketing philosophy give more importance to consumer
welfare instead of consumer satisfaction?
Ans:societal marketing cocept.
Q.2.which cocept of marketing suggesting that the organization earn
profit through volume of production ?
Ans: Production cocept.
Q.3.Name the non paid form of communication of information about
the products.
Ans:Publicity.
Q.4.Name the element of marketing which makes the product available
to the target customer?
Ans: Physical distribution.
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1 Mark Qs
1. Advertising and personal selling both are communication tools used
by the marketers to promote their products. Yet they differ in their
approach. Differentiate between the two by giving any two differences.
1 2008
2.The aim of marketing and selling is to maximize profit.Yet they differ
in their approach. Differentiate between the two by giving any two
differences1 2008
3.Which concept of Marketing suggests that the organization should
earn profit through consumer
satisfaction and social welfare ? (1)
4.At which level of packaging, the immediate container is referred to.
(1)
5.what is the advantage of registering trade mark
6.State the meaning of Product identification function in marketing
2013

LONG ANSWER QUESTIONS

1 EXPLAIN THE TOOLS OF PROMOTION?
2 EXPLAIN THE CHANNELS OF DISTRIBUTION?
3 WHAT DO YOU MEAN BY MARKETING MIX? EXPLAIN ITS
ELEMNTS IN BRIEF?

3 Mark Qs

1.What is meant by Marketing Management ?

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2.Briefly explain any three Objectives of marketing management.

3.What is marketing? Explain any four functions of marketing
4.Give the modern concept of marketing.
5.What is the difference between need and want
6.What is the difference between market and marketing?
7.For any exchange to take place some conditions are to be fulfilled
Explain
8. What is meant by 'Selling concept' of marketing? 3 2010
9. What is meant by 'Production concept' of marketing? 3 2010
10.Who is a marketer?
11.Give two examples each of:
i)convenience product ii) Specialty product iii)consumer durables
12.Product is a bundle of utilities .Comment
13.What are the benefits of packaging? 2008
14.What are the advantages of branding to the marketer? 2008
15.Is labeling necessary? Why? 2008
16.Distinguish between brand and trade mark
17.Product is a mixture of tangible and intangible attributes .Explain.
18.Define product. How would you classify them?
19. What is meant by product mix ?
20. Briefly explain any three factors that affect the channels of
distribution of a commodity. 3
21.What is meant by channels of distribution? Explain the types of
channels of distribution.3 2009
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22.What do you mean by marketing activities?

23.What is zero level channel of distribution?
24.State any four functions performed by distribution channels.
25.Define marketing .Explain its features.
26.What is meant by price mix?
27.Explain in brief any three qualities of a good brand name.(200

5 /6Mark Qs
1. 'Bending the customer according to the product' and 'Developing the product
according to customer needs' are the two important concepts of marketing
management. Identify the concepts and differentiate between the two. 5 2009
2. What is meant by Packaging? Give any five points explaining why packaging is
important.
3.Explain the following sales promotion activities: 6 2009
(i) Refunds
(ii) Instant draw and assigned gifts
(iii) Full finance
(iv) Sampling
4. Name the element of marketing mix which affects the revenue and profits of a
firm. Explain any five factors which help in determining this element. 6
5."Generally consumers prefer to buy goods directly from the producers but, it is
not always possible." Give reasons why it is so, by explaining four different factors
responsible for this.6 2010
6.Explain the following marketing concepts:
a)product concept-better quality &product improvement
b)Societal concept-customer satisfn, & social well-being
c)Production concept -more pdn,cheaperprice,moreavailability,more demand
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d)Selling concept-persuading customers thru aggressive selling and promotional

efforts
7.Explain the difference between marketing and selling.5
8.Explain the role of marketing Or What is the significance of marketing?
9.What is meant by marketing mix? Explain its four important elements 2008
10.Some products have certain unique features. They attract a significant groups
of buyers .Identify the
kind of product ant list its features.2008
11.Assume you are the marketing manager of a firm. State the factors you would
consider while fixing
the price.
12. State any five functions of marketing from the management viewpoint. (5)
13.Explain any six functions of marketing. 6 (2008)
14. Bending the customer according to the product and developing the product
according to customer
needs are the two important concepts of marketing management.
15.Identify the concepts and differentiate between the two.5 2009
16.What is meant by packaging? Give any five points explaining why packaging is
important. OR
17.Explain the following sales promotion activities:
i)
Refunds
ii)
Instant draw and assigned gifts
iii)
Full finance
iv)
Sampling
18.What is meant by 'Brand Name' ? State any four characteristics of a good
'Brand Name'. 5 2011

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UNIT-12
(CONSUMER PROTECTION)

VALUE BASED

1. Mr. X is a sweet maker (halwai), who collects milk from village to village and
prepares sweet on Deepawali. Due to increased demand, he purchased khoya from
other shopkeeper which was adulterated, because it was not possible to meet the
demand from collected milk. For meeting the demand quickly he has not maintained
cleanliness while preparation of sweets. He has two children for packing the sweet
and one female at cash counter. Which social values are he affecting and how?
2. A company engaged in selling spices, claims about purity in its advertisement. But
in laboratories, after examination, the spices were found adulterated. Which values
are being violated here?
3. A pharmacy company does not provide information about the expiry date on the
packet of his drug. Which values does this manufacturer violate?
4. A manufacturer of food products uses bad quality material for packing the product
resulting in spoiling goods in reaching the consumers. Which value is being ignored
here?
***************

QUES ON HOTS
Q. 1. What are two major activities of Bureau of Indian Standard Act?
AAns (1) Formation of quality standard of goods.
(2) Certification of goods through B`s.
Q
.2. Name the ministry which introduced eco mark.
AAns- Ministry of environment and forest.
Q. 3. Name the quarterly journal published by Government of India on
consumer awareness.
AAns- UpbkhoktaJagran.

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1 MARKS QUEST.
1.What is meant by Right to choose to a consumer? 2009
2.Which claims can be appeal able before the supreme court under
consumer Protection Act? 2009
3.Which consumer right gives the business firms freedom to set up
their own consumer service and grievance cell
4.Sandeep purchased a diesel car for Rs.7 lacs from an automobile
company and found its engine defective. Despite many complaints
the defect was not rectified. Suggest to him the appropriate authority
where he could file a complaint under Consumer Protection Act
5. What is meant by 'Right to choose' to a consumer? 2009
6. What is the purpose of enacting the Consumer Protection Act,
1986 ? 2009
7..Which claims' can be appealable before the Supreme Court under
Consumer Protection Act ? 2010
8. Why is consumer protection important for businessmen? Give
anyone reason. 2010
9.Which Act provides relief to the buyers of goods in case the
goodspurchased do not comply with the expressed condition? 2010
10.Which Act of consumer protection provides safety to consumers
against deficient services? 2010
11. Which Act of consumer protection provides for the formation of
'Consumer Protection Councils' in every district and state of the
country? 1 2010
12.What is meant by 'Right to choose' to a consumer? 2010
13. Amrita filed a case against Volvo Ltd.in the State Commission. But
She was not satisfied with the orders of the State Commission. Name
the authority to which she can appeal against the decision of State
Commission.
.
14."The understanding of business environment helps the managers to
identify 'threats'." What is meant by 'threats' here? 1 2011
15.'Business environment includes both 'specific and general forces.'
List any four
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specific forces. 1

3/4Mark Qs
1.' Explain any four responsibilities of the consumer to safeguard his
interests.4 2010
2.Explain the importance of consumer protection in India .
3.Explain any four responsibilities of a consumer to safeguard his
interests 4 2009
4. Explain the following rights of a consumer:4 2008
(i) Right to choose
ii) Right to be informed
5. Explain any four responsibilities of the consumer to safeguard his
interests. 4 2009
6. Explain the following 'Rights' of consumers: 4 2010
(i) Right to be heard
(ii) Right to seek redressal
7.State any three points of importance of consumer protection from
the point of view of consumers 2013
8.State any six responsibilities of a consumer which should be kept in
mind while purchasing goods 2013
9."The understanding of Business Environment enables the firm to
identify opportunities." What is meant by 'opportunities' here?
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10.Business Environment includes both 'specific and general forces'.

List any four general forces.
11.Explain 'Increasing competition' and 'More demanding customers'
as impact of Government policy changes on Business and Industry 3
12.Explain any two impacts of Government policy changes on Business
and Industry. 3

5 /6Mark Qs
1. Explain in brief any six reasons as to why consumer protection is
needed in India 6 (2008)
2. Explain any six remedies available to consumers under Consumer
Protection Act 1986.6
3. Explain in brief the various remedies available to the consumers for
redressing their grievances under
the Consumer Protection Act 1986.(6)
4. Explain the consumer rights under Consumer Protection Act 1986.(6)
(2008)
5.Non-Government-Organizations perform several functions for the
protection and promotion of interests of consumers. State any six
functions performed by them. (6)
6.Reena purchased one litre of pure Deshi Ghee from a shopkeeper.
After using it she had a doubt that it is adulterated. She sent it for a
laboratory test which confirmed that the Ghee is adulterated. State any
six reliefs available to Reena, if she complaints and the consumer court
is satisfied about the genuineness of the complaint. 6

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7.Prakhar purchased an ISI mark electric iron from 'Bharat Electricals'.

While using he found that it was not working properly. He approached
the seller and complained for the same. The seller satisfies Prakhar by
saying that he will ask the manufacturer to replace this iron. The
manufacturer refused to replace and Bharat Electricals decided to file a
complaint in the consumer court. Can 'Bharat Electricals' do this? Why?
Also explain 'who is a consumer' as per Consumer Protection Act, 1986.
2011

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