Model Paper 2 — Business Studies STD 12 Commerce — Question

Steelone Enterprises is manufacturing high quality steel utensils. The demand for steel utensils is rising as people are getting aware that plastic is not good for health. This has led to increase in production of steel utensils. To encourage sales, Steelone Enterprises declared a liberal credit policy which allows three months credit to its wholesale buyers.
In the light of the above, identify the two factors affecting working capital requirements of Steelone Enterprises. State with reason, whether the factors as identified above, will result in high or low working capital requirement.

Clarify that coordination does not get established spontaneously.

What is meant by ‘Capital Structure’? Explain any two factors that affect the capital structure of a company.

The barriers to effective communication exist in all organisations. Explain any three measures to overcome these barriers.

“A business needs to add to its prospects in the long run.” Which organizational objectives highlighted in the statement? Mention two object under this category.

Under the Consumer Protection Act 2019, a consumer is a person who uses or consumes goods or avails of any service. Comment.

In one of his principles, Taylor suggested that job performance should be based on scientific enquiry and not on will/wish or personal intuition of manager?(i) Name that principle.(ii) What values can be followed by using this principle?

If an organisation follows the following principles of management, state some of their positive effects on the organisation.

1. Esprit De Corps.
2. Initiative.

Explain any three qualities of a good leader.

In an organisation all the employees take things easy and are free to approach anyone for minor queries and problems. This has resulted in everyone taking to each other and thus resulting in inefficiency in the office. It has also resulted in loss of secrecy and confidential information being leaked out. What system do you think the manager should adopt to improve communication.