Financial Management — Business Studies STD 12 Commerce — Question

Rajender has been running a successful business of manufacturing traditional wedding wear for women including sarees and lehengas. His friend Surinder who is engaged in the business of providing web designing solutions to his clients, suggests him to explore the option of selling his products online. Rajender agrees to his suggestion and decides to venture into online business, keeping in view the various e-commerce regulations in order to avoid imposition of any penalty. In order to facilitate the sale of his products, Rajender decides to offer multiple payment options such as cash on delivery, credit or debit card transactions, net banking to the buyers etc.
In context of the above case :

1. Identify the two different types of plans mentioned in the above paragraph that relate to the online portal that Rajinder intends to startby quoting lines from the paragraph.
2. Distinguish between the two types of plans as identified in part (a).

Explain any two functions of 'marketing'.

State any three advantages that a functional structure offers to an organisation?

It has been observed that the ‘prevailing situation' in an organisation is due to the violation of the principle of 'order'. What might have been your observations?

'The application of principles of management is dependent upon the prevailing situation at a particular point of time'. State and explain the feature of management principle mentioned here.

After completing a course in travel and tourism, Karan started his own travel agency. In order to ensure smooth functioning of his business, he decided to create fourteen job positions divided into four departments on the basis of functions namely, front office department including online queries, reservations department for airways, railways and roadways, accommodation booking department, and securing payments department. In order to avoid any interdepartmental conflicts he decides to specify clearly the lines of authority and areas of responsibility for each job position.
In the context of the above case:

1. Which function of management is being described in the above lines ?
2. Identify the framework created by Karan within which all managerial and operating tasks are to be performed in his organisation.
3. Name the type of the framework as identified in part (1) of the question. Also, give any two of its advantages.

Mr. Aditya Gupta was the chairman of ‘Vandan 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 announced taking over of ‘Karur Bank’. Aditya Gupta knew that the share price of Vandan 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 Nimesh and asked him to invest ₹ 6 crores in the shares of his bank promising him the capital gain.
As expected, the share prices went up by 40% and the market price of Nimesh’s shares was now ₹ 8.4 crores. He had earned a profit of ₹ 2.4 crores. He gave ₹ 1.2 crore to Mr. Aditya Gupta and kept ₹ 1.2 crore with him. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. SEBI imposed a heavy penalty on Aditya Gupta.
By quoting the lines from the above para identify and state any two functions that were performed by SEBI in the above case.

What is the purpose of a brand name?

What is meant by ‘political environment’ of business?

Eco-friendly products are gaining power as the consumers’ awareness about environmental issues has increased over the years and they are conscious about choosing products that do not have adverse effects on the environment. They are now more conscious about the carbon emission and climate change effects, and want themselves to be ‘seen’ as a green advocate among their peers. In such a scenario, it has become a challenge for the companies as they have to not only meet the needs of the consumers but also ensure that their products are safe and environment friendly. As a result, there is growing need for better and advanced technologies to works as a catalyst in this regard.

1. Identify the relevant feature of business environment being discussed above.
2. Describe briefly any three points which highlight the importance of business environment and its understanding by managers.