Organising — Business Studies STD 12 Commerce — Question

Write three characteristics of decentralisation.

Explain by giving any three reasons why decentralisation is important in an organisation.

Mr.Sanjay Nehra was the Chairman of 'Taran bank.' The bank was earning good profits. Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce taking over of 'Vena Bank.' Mr.Sanjay Nehra knew that the share price of 'Taran Bank' would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his rich friends Sudhir and asked him to invest Rs. 5 crores in shares of his bank promising him the capital gains.
As expected the share prices went up by 40% and the market price of Sudhir's shares was now 7 Rs. crores. He earned a profit of Rs. 2 crores. He gave Rs. 1 crores to Mr.Sanjay Nehra and kept Rs. 1 crores with himself. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra.
By quoting the lines from the above para identify and state any two functions that were performed by SEBI in the above case.

How does 'marketing' help in satisfying wants of people?

If total funds are ₹ 30 lakh, interest rate is 10% per annum, tax rate is 30% and earning before interest and tax is ₹ 4 lakh, then
In situation I: If 3,00,000 shares @ ₹ 10 per share are there and no debentures are there, then earning per share is ₹ 0.93.
In situation II: If 1,00,000 shares @ ₹ 10 per share and 2,00,000 debentures @ ₹ 10 per debenture are there, then earning per share is ₹ 1.40.
What is this situation called?

Why do money market instruments are more liquid as compared to capital market instruments?​​​​​​​

After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market in the UK and the USA but not in India. His business started flourishing in India. As a result, more Indian companies entered into the market with other subjects also.
Identify and quote the lines from the above paragraph which highlight the significance of understanding business environment.

Explain the following functions of marketing:
Gathering and analysing market information.

Explain the steps involved in the process of planning.

Why is training important for the employees? State any three reasons.