Financial Management — Business Studies STD 12 Commerce — Question

In case of high fixed operating cost, company should prefer debt or equity?

It refers to obedience to organisational rules and employment agreement which are necessary for the working of the organisation. Which principle is referred here?

Mention some service industries where competition for Indian firms has increased due to government policy changes.

Directing is undoubtedly an important function of management. Do you agree?

Under which source of recruitment do employees get motivated?

‘Gallant’ is a well known FMCG (Fast Moving Consumer Goods) company in India. However, for the past few years its profitability is diminishing due to the presence of a new company ‘Prakritik’. ‘Prakritik’ has gradually acquired a reasonable share in a wide variety segments like soaps, shampoos, detergents, dish wash and oral care. One of the key reason is that ‘Prakritik’ has positioned itself as a natural/Ayurvedic brand and this approach has worked well with the Indian consumer. In order to compete with this threat ‘Gallant’ has acquired a premium Ayurvedic brand ‘Madhumita’ from another group. Moreover its likely to increase its advertising budget to counter the threat from ‘Prakritik’.
In the context of the above case :

1. Identify the related component of the business environment which has contributed effectively towards the success of Prakritik.
2. Also, state the two ways in which ‘Gallant’ has responded to the changes in its business environment.

Management principles can be applied to all types of activities. Which characteristic of management is depicted here?

Give the names of two consumer organisations.

Give any two objectives of organising.

Is controlling backward looking?