MODEL PAPER 2025 — Business Studies STD 12 Commerce — Question

Explain any two factors affecting price of a product.

Swaraj is running an office furniture showroom. Most of his clients are businessmen and they prefer to buy goods on credit. Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a credit period of only 20 days, while negotiating a deal with a buyer. On a specific day, Mr. Bhardwaj finds that if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalise a highly profitable deal for the business. So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering a credit period of 30 days in the interest of the business. But Swaraj refuses to extend his authority and as a result, the deal is not finalized.
In context of the above case :

1. Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not ? Give a suitable reason in support of your answer.
2. Also, explain the related principle.

Explain the principle of management-remuneration of employees.

Distinguish between monetary and non-monetary incentives.

What is meant by ‘Business Environment’? Explain ‘Dynamic nature’ and ‘Uncertainty’ as features of Business Environment.

Differentiate between 'Objective' and 'strategy' as types of plans.

Distinguish between authority and responsibility on the basis of:

1. Direction or flow.
2. Delegation.
3. Origin.

Upasana works as a plant superintendent in a carpet making factory. In order to complete the export orders on time, the production manager asks her to make the workers work over time whereas the finance manager is strictly against this practice because it will increase the cost of production. Moreover, Upasana feels that since the company is manufacturing handmade carpets as well as machine made carpets, there is a lot of overlapping of activities. Therefore, there should be two separate divisions for both of them wherein each division should have its own incharge, plans and execution resources.

1. Identify the principle of management which is being violated.
2. Also identify the principle of management that Upasana feels should be implemented in the factory.

In which situations is divisional organisation structure more suitable?

List the three levels of management. State any three functions of the operational level of management.