Directing — Business Studies STD 12 Commerce — Question

What is meant by ‘functional structure’ of an organisation? Explain any two advantages and limitations of it.

Explain the following as factors affecting the requirements of working capital:

1. Business cycle.
2. Operating efficiency.
3. Availability of raw material.
4. Level of competition.

‘Singhal Printers Limited’ is a famous company of Printing Industry. Its main business is to print the Greeting Cards of Deepavali, Eid, Christmas, Gurpurb and other festivals. The Greeting Cards of this company are well known throughout India. The Government made such changes in its Tax Policy recently which have had a positive impact on the Printing Industry. One negative factor noticed with regard to this Industry is that now people have started preferring internet and mobile to Greeting Cards on festivals and other occasions. Similarly, it has also been noticed that in Printing Industry only those companies are earning profits which have adopted modern technology.
Recently, the new Central Government of the country decided to establish Industrial Estate in the name of Printing Club’ for the development of this industry. Also a decision to simplify the process of Industrial Disputes of Printing Industry in the country was taken. The Managing Director of ‘Singhal Printers Limited’ made a through study of the business environment. He arrived at the conclusion that the business environment is a group of not one but several factors. All these factors affect business in some or the other form. Business has no control over them. Business has to mould itself in accordance with them. The companies which follow this principle stay in the market for a long time and the remaining ones disappear from the market gradually.
a. Identify the different dimensions of business environment described in the paragraphs given above by quoting the relevant lines.
b. Which particular feature of business environment is being hinted/referred to here?

Explain briefly any four factors affecting the fixed capital requirements of an organisation.

Identify the dimensions of business environment in the following cases:
i. Hand-woven carpets are banned in some European countries as they think there can be involvement of child labour in the manufacturing of these carpets. Products produced through the involvement of child labour are banned in these countries.
ii. With the winning of a new party in a particular country an automobile company has decided to take back its plan of opening 15 plants in that country.
iii. In the month of October a greeting card manufacturing company has decided to increase its scale of production of New Year Greeting Cards.
iv. A chocolate making company has decided to make more sweetened chocolates for people living in a particular country.
v. A super bike producing company has decided to withdraw its earlier proposal of opening 10 new plants in a country as it finds the per capita income of that country too low to purchase its bikes in large numbers.
vi. Advertising of a particular brand is taken back as it is expected to hurt the sentiments of a particular section of society. The company takes this decision on a conscientious level.

Explain, with the help of any four points, the importance of ‘Delegation’ in an organization.

Explain any four points highlighting the importance of controlling.

Explain the following techniques of Scientific Management:

1. Fatigue Study.
2. Differential Piece Wage System.

“Managerial functions cannot be carried out without an efficient system of communication". Do you agree with this statement? Give any four reasons in support of your answer.
OR
"Effectiveness of a manager depends on his ability to communicate effectively". Explain how?

Pranav is engaged in ‘Transport-Business’. Identify the working capital requirements of Pranav stating the reason in support of your answer. Pranav also wants to expand and diversify his Transport-Business. Explain any two factors that will affect his fixed capital requirements.