Model Paper 3 — Business Studies STD 12 Commerce — Question

Answer the following question.What is REPO and Reverse REPO?

Rabat Medicine Ltd. has never given any importance to the suggestions of its employees. Every person holding managerial position in the company considers himself wiser than the other. They neither help anybody nor get help from anybody. Last year, Mrs. Sonali Chauhan was appointed Chief Manager of the company against a vacant post. She was an MBA from IIM Lucknow and had also five-year experience of in the same post. Immediately after taking charge she decided to deal with both the problems of the company. She convened a meeting of all the employees and said, Employees of all levels (managerial and non-managerial) are free to give their suggestions. Besides, the one who gives the best suggestion will be awarded a prize. In addition, she advised them to discard ego and extend help in each other's work. We will have to give it the shape of a movement. Those who participate in this movement will be promoted at the earliest. This address had a positive effect on the employees. Both the problems of the company disappeared very soon. Kumari Sonali proved to be a good leader.
Identify by quoting lines, the two principles of management mentioned in the above paragraph and give their meaning.

“Controlling implies taking action”. Explain.

Explain the following rights of the consumers:

1. Right to safety.
2. Right to choose.

Differentiate between standing and single use plans.

Radhika opens a jewellry showroom in Jaipur after completing a course in jewellry designing. She has employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and each employee is trained to perform his/her specialised job. The sales persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, after six months when the business was doing well, she awarded a cash bonus to each of these employees to honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be more biased towards her female employees.
In context of the above case :

1. Identify and explain the various principles of management that are being applied by Radhika by quoting lines from the paragraph.
2. Identify and explain the principle of management which is being violated by Radhika by quoting lines from the paragraph.
3. State any one effect of the violation of the principle of management by Radhika as identified in part(b) of the question.

Explain 'Method' and 'Rule' as types of plans.

These days, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed most. To give strength to the economy, SEBI is undertaking measures to develop the capital market. In addition to this there is another market in which unsecured and short-term debt instruments are actively traded everyday. These markets together help the savers and investors in directing the available funds into their most productive investment opportunity.

1. Name the function being performed by the market in the above case.
2. Also, explain briefly three other functions performed by this market.

“Every time I travelled, people asked me to bring them chips, khakra and pickles from all over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a business out of it. They launched a facebook page, asked people what they wanted, and they came up with a list of about 100 places and tied up with two dozen vendors to begin with. They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat who wanted halwa from Jammu and people from Delhi who ordered for fresh tea leaves from Darjeeling. Through their business they wished to bridge the gap between sellers and buyers. The business is now worth millions.
Explain any two important activities that Anoushka and Sumeet will have to be involved in for making the goods available to the customers at the right place, in the right quantity and at the right time.

Sanket, after completing his entrepreneurship course from U.S.A. returned to India and started a coffee shop ‘Fioma Coffee’ in a famous mall in Mumbai. The speciality of the coffee shop was the special aroma of coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular. Sanket was keen to find out the reason. He appointed Riya, an MBA from a reputed management institute as a manager to find out the causes of the business not doing well.
Riya, took a feedback from the clients and found out that though they loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process the order. She analysed and found out that there were many unnecessary obstructions which could be eliminated. She fixed a standard time for processing the order. She also realised that there were many flavours whose demand was not enough. So, she also decided to discontinue the sale of such flavours. As a result, within a short period Riya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Riya to solve the problem.