Model Paper 1 Business Studies - Model Paper 1

Identify the principle of management followed in the following pictorial
representation.

This is one of the features of standards. Identify it.

Other things remaining the same if the fixed operating cost is high the firm would opt to raise finance from:

Following are the managerial functions against their respective aspects:

Managerial functions	Aspects
(a) Planning	(i) Deviations
(b) Staffing	(ii) Objectives
(c) Direction	(iii) Abilities
(d) Controlling	(iv) Leadership

Select the most appropriate combination.

If there is a plan to increase production then more labour, more machinery will be required. This step in the process of planning will involve organising for labour and purchase of machinery. Identify the step in the planning process being discussed above.

State any three directions which can be issued by the consumer court to the opposite party if it is satisfied about the genuineness of the complaint.

State how Government and Consumer Awareness Act could help in achieving the objectives of consumer protection.

After completing a diploma course in Wedding Planning Sunidhi plans to start her own business under the name 'Heart Beat.' She plans to hire a team of experts to give her clients a unique and unforgettable wedding experience keeping in mind their preferences and budget. Since childhood she has been admiring her grand father's financial skills, so she decides to visit him in Mewar to seek his guidance and blessings. Her grandfather tells her that the success of business depends on how well finance is invested in assets and operations and how timely and cheaply the finances are arranged, from outside or from within the business. He warns her that she should always invest time in identifying different available sources of finance and comparing them in terms of their costs and associated risks. Similarly, the finance needs to be invested in a manner that the returns from the investment exceed the cost at which procurement has taken place.
In the context of the above case:
a. Identify and explain the financial concept being discussed above which has a direct bearing on the financial health of a business.
b. Name any two financial statements which reflect the financial health of a business.
c. Briefly outline the key objective of the concept as identified in part (a) of the question.

Explain briefly any three semantic barriers to communication.

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

Explain the following rights of a consumer provided under The Consumer Protection
Act, 2019:
i. Right to Safety
ii. Right to Seek Redressal

Hitesh Ltd. is a well-known company in the cement industry since 1999. The company has an authorised capital of ₹ 100 crore and is listed with a reputed stock exchange. The value of its shares is increasing day-by-day due to increase in the demand for cement.
Now the company wants to enter into car manufacturing business. For this it requires ₹ 200 crore. The Finance Manager of the company decides to raise this capital by a public issue.
a. Identify the market in which the company's existing securities are being traded.
b. Name the market through which the company wants to raise its capital of ₹ 200 crore for its new business.
c. Distinguish between the markets identified in (a) and (b) above on the basis of any two points.

Differentiate between Upward communication and Downward communication.

Rabat Medicine Ltd. has never given any importance to the suggestions of its employees. Every person holding managerial position in the company considers himself wiser than the other. They neither help anybody nor get help from anybody. Last year, Mrs. Sonali Chauhan was appointed Chief Manager of the company against a vacant post. She was an MBA from IIM Lucknow and had also five-year experience of in the same post. Immediately after taking charge she decided to deal with both the problems of the company. She convened a meeting of all the employees and said, Employees of all levels (managerial and non-managerial) are free to give their suggestions. Besides, the one who gives the best suggestion will be awarded a prize. In addition, she advised them to discard ego and extend help in each other's work. We will have to give it the shape of a movement. Those who participate in this movement will be promoted at the earliest. This address had a positive effect on the employees. Both the problems of the company disappeared very soon. Kumari Sonali proved to be a good leader.
Identify by quoting lines, the two principles of management mentioned in the above paragraph and give their meaning.

“Controlling is a pervasive function”. Explain.

A company was marketing ‘Juicers’ which were very popular due to their quality and after-sale - services provided to the customers. The company was a leading company in the market and earning huge profits. Because of huge profits, the company ignored the after-sales services. As a result its relations with the customers got spoiled and the image of the company in the public was damaged. Top management became concerned when the profits for the current quarter fell steeply. On analysis, it was revealed that ignoring the after sales services was its reason. Therefore, the company took all possible measures to protect and promote its favourable image. As a result the goodwill of the company improved in the society.
i. Name and state the communication tool used by the marketer in the above case to improve its image.
ii. Also explain role of the tool as identified in Part (i).

Aman Chadha started 'Bulls Eye' a company for providing cybersecurity solutions to businesses. Its objective is to prevent, detect and respond to cyber-attacks and protect critical data. He was a hardworking software engineer and an expert in cybersecurity. His reputation grew by leaps and bounds as he was not only a person of integrity but also did his work with utmost honesty and sincerity. The business started growing day by day.
He was delighted when he was offered a big project by the Ministry of Defence. While working on the project, he found that the volume of work made it impractical for him to handle all the work by himself. He decided to expand the team. The company maintained a close liaison with a local engineering college. During a campus placement, Ishan and Vrinda were appointed to work for the new project.
He found the new employees capable, enthusiastic and trustworthy. Aman Chadha was thus, able to focus on objectives and with the help of Ishan and Vrinda, the project was completed on time. Not only this Aman Chadha was also able to extend his area of operations. On the other hand, Ishan and Vrinda also got opportunities to develop and exercise initiative.
i. Identify and briefly explain the concept used by Aman Chadha in the above case which helped him in focusing on objectives.
ii. Also, state any four points of importance of the concept identified in (i) above.

GHJ Private Ltd. is concerned about the external environment of business. It is busy analyzing various factors which are going to affect its business. However with a lot of understanding it developed about the business it found two types of factors; one which affected the firm directly and the other which affected all the firms in the business indirectly. With the passage of time the challenges for the company have increased. The company finds new competitors and technological changes which are posing new challenges for it. The company at the end of the year decides to have a survey. This survey is about knowing the business environment properly. Even after spending a lot of money on the surveys the company comes to conclusion that it's not easy to understand the business environment and it is properly understood only in parts. The company is ready to seek advice from experts and is eager to notice changes in the business environment. When a multinational company enters the market the company is eager in taking preventive measures like improving the product, aggressive advertising etc. A special team of experts have been created. The team observes the changes taking place like changing branding loyalty, more demanding customers, etc. as it knows the pace of change is more important than the change itself. The painstaking efforts of the company don't go unrewarded. The company monitors the business environment and is able to increase its revenue by the end of the year.
Which features of business environment have been highlighted in the above case? Also identify the various points of importance of business environment highlighted above.

'Konark Ltd/ is an electronics goods manufacturing enterprise situated in Shivpuri, Madhya Pradesh. It is earning a very low revenue in comparison to a competing electronic good manufacturing enterprise, 'Nova Ltd.' situated in Mumbai. Both Konark's and Nova's operations are affected directly by the investors, customers, competitors, and suppliers, which are unique to their respective locations. In addition to this, individual firms of this field are affected indirectly by factors like the money supply in the economy, the composition of the families, the technological changes, etc.
a. Identify and state the feature of the concept discussed in the above paragraph.
b. Also, state any four points of importance of this concept.

State the merits of internal sources of recruitment.