Nature and Significance of Management — Business Studies STD 12 Commerce — Question

Nature of 'capital market can be well explained with the help of its features. State any three such features of capital market.

“A manager is of the view that he is not responsible for the quality of work, that he has delegated to his subordinate”. Do you agree with his view point? Justify your answer by giving proper arguments.

Naman and Govind after finishing their graduation under vocational stream decided to start their own travel agency which will book Rail Tickets and Air Tickets on commission basis. They also thought of providing tickets within ten minutes through the use of internet. They discussed the idea with their Professor Mr. Mehta who liked the idea and suggested them to first analyse the business environment which consists of investors’, competitors and other forces like social, political etc. that may affect their business directly or indirectly. He further told them about the technological improvements and shifts in consumer preferences that were taking place and hence they should be aware of the environmental trends and changes which may hinder their business performance. He emphasised on making plans keeping in mind the threat posed by the competitors, so that they can deal with the situation effectively. This alignment of business operations with the business environment will result in better performance.

1. Identify and state the component of business environment highlighted in the above
   Para.
2. State any two features of business environment as discussed by Professor Mehta with Naman and Govind.
3. Also state two points of importance of business environment as stated by Professor Mehta in the above situation.

“Decentralisation is an extension of delegation of authority”. Explain.
OR
Decentralisation is extending delegation to the lowest level. Comment.

Explain “Policy” and “Procedure” as types of plans.

State the functions performed by financial market.

Explain the meaning and the objective of Financial Management.

Explain ‘objective’ and ‘policy’ as types of plans using suitable examples.

Write main standards to be used in various functional areas.

‘Alfa Ltd.' was dealing in renewable energy. To get the business, the team leader and his team used to travel to different states to give presentation to their clients. As per the policy of the company, the leader used to travel by air, whereas his team travelled by road/train. It was not only time consuming but also at time forced female team members to travel alone.As a result, the subordinates were not acting in desired manner to achieve organisational goals. The CEO came to know about it. He called the team leader, discussed the matter with him and decided to change the travel policy of the company. It was decided that all the members including the leaders would travel together in future and would usefully utilise the travelling time in discussion with the subordinates about presentation to be given to the clients. This made a positive impact, and every member of the team started acting in a manner as desired by the team leader.
State, the features of the element of the function of management used by the CEO.