Financial Market — Business Studies STD 12 Commerce — Question

Explain ‘Profit Sharing’, ‘Co-partnership’ and ‘Suggestion System’ as monetary incentives.

What is meant by formal organisation? Explain any four features of formal organisation.

What are the advantages of training to the individual and to the organisation?

In an environment of rising petroleum prices and a large middle class population in India. KV Motors Ltd. recognized the need for small cars in India. It created a product far superior than their competitors not only in terms of quality but also in terms of overall driving experience. It soon became the leader in the small car market. As the Indian government was encouraging foreign investment, MNCs having a big name in car manufacturing entered the Indian market.
KV Motors further expanded its service network and quality creating an entry barrier for the competitors. It depicted its strengths through various brand-building activities. As a result, the market share of KV Motors is refusing to go down in spite of all major automakers as its competitors.

1. Identify the economic reforms highlighted in the above case.
2. Quoting the lines, explain any two points of importance of Business Environment being highlighted in the above case.

Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew different varieties of rice and was well-versed about various aspects of rice cultivation. He was also selected by the government for a pilot-project on rice cultivation. As a project-work in Business Studies, she decided to study the feasibility of marketing good quality rice at a reasonable price. Her father suggested her to use internet to gather customers' views and opinions. She found that there was a huge demand for packaged organic rice. She knew that there were no pre-determined specifications in case of rice because of which it would be difficult to achieve uniformity in the output. To differentiate the product from its competitors, she gave it the name of 'Malabari Organic Rice' and classified it into three different varieties namely - Popular, Classic and Supreme, based on the quality. She felt that these names would help her in product differentiation.
Explain the three functions of marketing, with reference to the above paragraph.

Explain briefly any four factors which affect the choice of capital structure of a company.

Capital structure decision is essentially optimisation of risk-return relationship. Comment.

Kamal, Khan and Devid are partners in a firm engaged in the distribution of dairy products in Madhya Pradesh. Kamal is a holder of Senior Secondary School Certificate from Central Board of Secondary Education with Business Studies as one of his elective subjects. Khan had done his post-graduation in Hindi literature and Devid in Dairy Farming. One day there was a serious discussion between Khan and Devid regarding the nature of 'Management as a Science'. Khan argued that Management was not a science whereas Devid was of the opinion that Management was a science. Kamal intervened and corrected both Khan and Devid about the nature of Management as a Science with the help of his knowledge of Business Studies.
Explain, how Kamal would have been able to satisfy both Khan and Devid.

A capital budgeting decisions is capable of changing the financial fortune of a business. Do you agree? Why or Why not?

What are the main features to be considered by the management while planning?