Model Paper 2 Business Studies - Model Paper 2

Controlling is:

Which component of capital structure determines the overall financial risk?

Match the functions of management in Column I with their explanation in Column II:

(a) Organising	(i) Leading, influencing and motivating employees to perform the tasks assigned to them.
(b) Staffing	(ii) Recruitment and selection of the personnel.
(c) Directing	(iii) Assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.

It involves application of high order thinking skills and intellectual faculties, involving vision and foresightedness to decide the things to be done in the future.
Which feature of Planning is stated in the above line?

Describe the following rights of a consumer :
i. Right to be informed
ii. Right to seek Redressal
iii. Right to choose

A ready-to-eat food manufacturing company uses lead in excess of the prescribed limits in its products. The usage of an excess quantity of lead in the products could cause severe health issues to the consumers.
a. Identify and explain the consumer right violated by the company.
b. Identify any two values overlooked by the company.

Explain briefly the steps involved in the process of financial planning.

Mention any two measures to improve communication effectiveness.

Which one is the most popular network in organisations under Grapevine network and what does it mean?

Vastra Ltd. is engaged in the manufacturing of apparel. Over the years, it has became a popular brand due to its good product quality and exclusive designing. The company plans to open its own retail showrooms in metropolitan cities in India. In order to meet its financial needs it has offered for subscription an IPO of Rs.4 lakh equity shares in the price band of Rs.430 - Rs.445 each. As per the guidelines of SEBI, the company has provided a complete disclosure of the relevant details in its prospectus.
a. Identify and explain the right of the consumer being fulfilled by the directives of SEBI in the above mentioned case.
b. Briefly explain any two points highlighting the importance of consumer protection from the point of view of the businessmen.

Keeping in mind the emerging nature of the securities market in India, Securities and Exchange Board of India was entrusted with the twin task of both regulation and development of the securities market.
State any two regulatory and two development functions of it.

Explain assumptions of Maslow’s need hierachy theory.

Factory system of production implies that managers serve as a link between the owners and the workers. Since as managers they had the mandate to get work done from the workers, there always exist the possibility of a kind of class conflict, the managers versus workers. Taylor recognised that this conflict helped none, the workers, the managers or the factory owners. Both should realise that each one is important. In such a situation even trade unions will not think of going on strike etc. According to Taylor, Scientific management has for its foundation the firm conviction that the true interests of the two are one and the same; that prosperity of the business cannot exist for a long time unless it is accompanied by prosperity/well-being of its workers. Japanese work culture is a classic example of such a situation. In Japanese companies, paternalistic style of management is in practice. There is complete openness between the management and workers. If at all workers go to strike they wear a black badge but work more than normal working hours to gain the sympathy of the management.
a. Identify and explain the principle of scientific management highlighted in the above paragraph.
b. To achieve a state like that of Japanese work culture, Taylor called for an important concept. Identify and explain that concept.

Does control help in ‘judging the accuracy of standards’ and ‘improving motivation of the employees’? Explain.

Two years ago Suruchi completed her BBA course. As she had knowledge of the business she began taking interest in her parental business. Her father used to do the wholesale business of wheat. Suruchi suggested to her father why not they should also go in for the retail business of wheat. Her father agreed. He entrusted full responsibility for the new business to Suruchi. First of all, she conducted a market survey and tried to obtained information regarding the kind of wheat, price, and weight of its packing, that the people liked desi wheat the most. Many varieties of wheat were already available in the market. In order to show that her wheat was distinct from that of other traders, she gave it the name of Sharbati Healthy Food. Wheat was packed in attractive plastic bags. Weight of each packed wheat bag was either 10kg and 20kg so that it is easily carried and moved from one place to the other. Suruchi pasted a label on each bag giving full information about the wheat packed in. While deciding the price of her product she kept in mind, the expectation of the people, price of competitor's products and reasonable rate of profit. Thus a new business came into being. Within a few days, Suruchi was known as a successful trader.
With reference to the above paragraph identify four functions of marketing.

Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.

Identify the dimensions of business environment in the following cases:
i. Hand-woven carpets are banned in some European countries as they think there can be involvement of child labour in the manufacturing of these carpets. Products produced through the involvement of child labour are banned in these countries.
ii. With the winning of a new party in a particular country an automobile company has decided to take back its plan of opening 15 plants in that country.
iii. In the month of October a greeting card manufacturing company has decided to increase its scale of production of New Year Greeting Cards.
iv. A chocolate making company has decided to make more sweetened chocolates for people living in a particular country.
v. A super bike producing company has decided to withdraw its earlier proposal of opening 10 new plants in a country as it finds the per capita income of that country too low to purchase its bikes in large numbers.
vi. Advertising of a particular brand is taken back as it is expected to hurt the sentiments of a particular section of society. The company takes this decision on a conscientious level.

A good understanding of the environment by business managers enables them not only to identify and evaluate but also to react to the forces external to their firm. How would you argue that the success o f a business enterprise is significantly influenced by its environment?

A newly appointed Personnel Manager is of the view that there is no need for training the workers. Do you agree with this statement? Give reasons in support of your answer.