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1. () Subordination of individual interest to general So the organisation should assign those jobs
interest to the persons who have that particular skills
2. (0) B,Cand D In this way, the productivity will be good
3. (a) Direct recruitment and the organisation will run smoothly and
4. (a) Both Assertion (A) and Reason (R) are true and efficiently.
Reason (R) is the correct explanation of Assertion 22. (G) Securities Exchange Board of India is the
(A) regulatory body that is being discussed in the
given case.
5. () ldentification and division of work,
departmentalisation, assignment of duties, (i) The other two functions of SEBIare
establishing reporting relationships (a) Calling for information by undertaking
6. () Physical distribution inspection, conducting enquiries and aud
1. (b) The correct explanation to Assertion (A) is that of stock exchanges and intermediaries.
planning leads to rigidity as managers follow a (b) Levying fee or other charges for carrying
pre-decided plan and may not be in a position the purposes of the act.
to change when circumstances change. 23. Directing is important due to following reasons
8. (a) Recommendations from present employees (i) Provides Leadership Effective directing
9. (a) In vestibule training, actual work environment provides motivation and leadership to the
is created in a classroom. employees, which helps them to identify their
10. () Both (a) and (b) 11. (b) Motivation potentials and realise their latent capabilities
12. (c) (ii) (i) (ii) leading to growth.
(ii) Introduces Changes Changes in an organisati
13. () Management is dynamic
are usually resisted by employees. Through
14. (d) Management is a rigid process effective direction, a manager can explain the
15. (6) Planning provides direction purpose, benefit and offer incentives to adopt
16. (b) Democratic 17. (a) Functional such changes to the employees.
18. (c) Harmony, not discord (ii) Provides Stability Effective directing helps to
19. (a) Business environment is complex which is easy develop commitment on part of subordinates
to understand in parts not in totality. This provides stability to the organisation and
20. (b) Social, legal, technological and political helps to achieve balance among various group
conditions are the general forces of business activities and departments.
environment. Or
21. Employees often resist control as they see it as a Leadership is the process of influencing the
restriction on their freedom. For instance, they behaviour of other people so that they work
might object when they are kept under the strict willingly for the attainment of goals in a given
Supervision of CCTVS. situation.
At the same time, control is a costly affair as it The leadership styles are
involves a lot of expenditure, time and effort. (i) Authoritarian or Autocratic Leadership An
Managers must ensure that the costs of installing autocratic leader exercises complete control
and operating a control system should over the subordinates.
the benefits derived from it. Thus, thesenot exceed
two
act as limitations of the controlling function infactors
an
He centralises power in himself and takes
all decisions without consulting the
organisation. subordinates.
Or For an organisation to run
successfully, it needs to (ii) Democraticor Participative Leadership
have all type of skilled persons assigned to that
portion of the job. Different people have different A
democratic leader takes decisions after
type of skills. consultation and encourages the participatiou
subordinates.
If the type of job and their skills doesn't match,
then the work can't be done successfully. He decentralises authority and allows the
subordinates to share his power.
 33
Sample Question Paper 01
Or
24. It is not considered to be a full-fledged profession
due to the following management which
Staffing is that function of putting them
) Restricted Entry Unlike management, the entry helps in obtaining right people and
to other professions is restricted through an on the right jobs. benefits
following three
examination or eligibility criteria like specific Proper staffing ensures the
percentage in a particular degree or diploma. to the organisation
Personnel It helps in
(Gi) Professional Association Unlike managers, all (i) Obtaining Competent competent personnel
working professionals have to be a member of an discovering and obtaining organisation.
an
affiliated professional association which for various job positions in
Staffing ensures high
regulates their entry, grant certificates of (ii) Higher Performance the
practices and formulates code of conduct. performance by putting right person on
Gii) Ethical Code of Conduct All professions are right job.
subject to an ethical code of conduct which (ii) Continuous Survival and Growth Proper
survival and
guides the behaviour of its members. However, staffing ensures continuous succession
in management, no such rules and regulations growth of the enterprise through
are framed to guide the manager through a planning of managers.
code of conduct. combination of four
27. Marketing mix refers to the the core of a
25. (1) No, Khushi cannot file a complaint, as she is not basic elements, which constitute
aconsumer under the Consumer Protection Act, company's marketing system.
2019 because she has not paid any consideration 4P'sof marketing mix are as follows
for the face cream. () Product It refers to goods or
services or
in the
(i1) Under Consumer Protection Act, 2019, a anything of value, which is offered
complaint can be filed by market for exchange.
which
(a) Any consumer. (ii) Price It refers to the amount of money,services.
(b) Any registered consumer association. pays for the products or
the customer
(c) Central or State Government. (iii) Place It is concerned with the availability of
right
(d) One or more consumers on behalf of products and services at right time and at
place,so that the customers find it convenient
numerOus consumers.
to purchase.
(e) Legal heir or representative of deceased
Consumer. (iv) Promotion It refers to the use of communication
tools to provide information to the customer
26. Controlling should not be misunderstood as the about a product and persuade them to buy it.
last function of management. It is a function that
brings the management cycle back to the planning 28. (i) Planning is a Primary Function of Management
function. In general, the process of management It lays down the base for all other functions
begins with planning and ends at controlling,
but of management. All other managerial functions
when amanager performs the function stepor steps of are performed within the framework
controlling, it is observed that the first of of the plans drawn. Thus, it can be said that
controlling is setting standards. planning precedes other functions. This is also
far actual called the 'primacy' of planning.
The controlling function finds out how analysis levels
performance deviates from standards and (ii) Planning is Pervasive It is required at all
management as well as in all the departments
the corrective actions to be taken. of
plans, of the organisation. It is not a function restricted
This process helps in formulation of future to top level but it is performed by managers at
thus becomes the premise of setting plans. of every level.
Therefore, we can say that it is the beginning
management process. While the top management forms
function is organisational plans, middle level does
Thus, it can be stated that, controlling the
both the beginning as well as the end of departmental planning and the lower level
makes plans for the day-to-day working of the
management process.
organisation.
Value Pointsmaximum marks, following value points Or The organising function helps in the growth and
For getting survival of an enterprise in a dynamic environment
can be included in the answer by providing the following benefits
to planning
" Brings management cycle back (i) Benefits of Specialisation Systematic allocation
function of work reduces the workload as well as
controlling and planning
" Inter-dependency of enhances productivity.
34 iSucceed Business Studies Cla
Sam
Aseach task is repetitively performed by a extent of authority is highest at the top
worker, it helps him to gain experience and management levels and reduces
attain specialisation. successively,
we go down the corporate ladder. Thus,
(ii) Clarity in Working Relationship The authority flows from top to bottom, ie. the
establishment of working relationships clarifies superior has authority over the subordinate
the lines of communication and specifies who (i) Responsibility Responsibility is the obligati
is accountable to whom. Thus, there is no of a subordinate to properly perform the
confusion regarding performance of work, assigned duty. It arises from a superior
fixation of responsibility and communication. subordinate relationship because the
29. (i) An aspect of the nature of management that is subordinate is bound to perform the duty
being highlighted is management as an art. assigned to him by his superior. Thus,
(ii) Three features that establish it as an art are responsibility flows upwards, i.e. a subordina
will always be responsible to his superior.
(a) Existence of Theoretical Knowledge Similar
to art, in management also, there is a lot of (ii) Accountability Delegation of authority,
literature available in various areas of undoubtedly empowers an employee to act fa
management which the manager has to his superior but the superior would still be
specialise in. accountable for the outcome. Accountability
(b) Personalised Application As in art, in implies being answerable for the final outcom
Once authority has been delegated and
management too, a manager applies his responsibility accepted, one cannot deny
acquired knowledge in a personalised and accountability. It cannot be delegated and flow
unique manner. This gives rise to different upwards, i.e. a subordinate will be accountabl
styles of management.
(c) Based on Practice and Creativity to a superior for satisfactory performance of
work.
Management satisfies this criteria as a
In conclusion, it can be stated that while
manager gains experience through regular
practice and becomes more effective. authority is delegated, responsibility is
30. Some advantages of good control system are as assumed, accountability is imposed.
follows Or The next three steps in the planning
process to be
followed by manager are
() Accomplishing Organisational Goals
(i) Identifying Alternative Courses of Action
Controlling function measures progress Once the objectives and planning premises are
towards the organisational goals and involves
taking corrective actions in case of any established, it becomes necessary to discover
deviation. It helps to keep the activities on right the various courses of action, which may be
track, so that goals could be achieved efficiently used to achieve the established objectives. Thes
and effectively. alternatives may be routine or innovative.
(iü) Motivation to the Employees (ii) Evaluating Alternative Courses The next step
It is a source of to weigh the pros and cons of each
motivation to the employees, who knows the alternative
standards against which their performance will It is necessary to evaluate the
positive and
be evaluated. negative aspect of each alternative in the light
(ii) Optimum Utilisation of Resources By of the objectives to be achieved.
allocating the resources according to the This might involve a number of calculations to
requirements of the different departments, it measure the cost and benefits related to an
helps in optimum utilisation of resources. alternative.
(iv) Facilitating Coordination in (ii) Selecting an Alternative This is the real
Action It provides
direction to all activities and each department of decision-making. The best plan has to bepoint
and employee is governed by pre-determined adopted and implemented.
standards, which helps in establishing An ideal plan would be the one which is most
coordination among them. profitable, most feasible and has the least
31. Following are the three essential elements of negative consequences.
32. The functions of
delegation marketing are
() Authority Authority refers to the right of an () Gathering and Analysing Market Informatio
individual to command his subordinates and to Market Research In order to identify the neeo
take action within the scope of his position. and wants of customers, the marketer gather
In the formal organisation authority originates
market information. He analysis the strengths
weaknesses, opportunities and threats of the
by virtue of an individual's position and the enterprise.
 35
Sample Question Paper 01

Such analysis helps the marketer to take management

Or Marketing management is the and controlling)
decisions regarding diversification, (planning, organising, directing
of goods/
improvement in product, expanding markets, of activities which facilitate exchange
consumers.
etc. For this purpose, computers and online services between producers and
sites are increasingly used. science
According to Philip Kotler, "The art andkeeping
6) Marketing Planning After market research, getting,
the marketer has to develop an appropriate of choosing target markets and creating,
and growing customers throughsuperior customer
marketing plan to achieve the marketing delivering and communicating marketing
objective of the organisation. It involves taking value of management is called
decisions as to what activities will have to be management."
undertaken to achieve a marketing objective. management include
The functions of marketing
Gi) Product Designing and Development The marketing activities.
design of a product not only helps to make it (i) Analysing and planning the
attractive, but also helps in improving its (ii) Implementing marketing plans.
performance, providing it acompetitive (ii) Setting control mechanism.
advantage over the other products present Objectives of marketing management are
in the market. (i) Choosing a target market.
(iv) Standardisation and Grading Standardisation (ii) Getting, keeping as well as growing the
customers.
refers to the process of setting standards
regarding quality, price, packaging, technology, (ii) Creating, developing and communicating
equipment, etc. for the production of a product. superior values for the customers.
This ensures uniformity and consistency in (iv) Building the reputation or goodwill.
output and reduces the need for inspection, (v) Achieving the long-term goals of profitability,
testing and evaluation of the products. growth and stability.
Grading is the process of classifying the 33. (i) Sources of long-term capital are as follows
products into different groups, on the basis
of quality, size, features, etc. (a) Equity shares
Grading ensures that the goods belong to a (b) Preference shares
particular quality and helps the marketer to (c) Debentures
fix prices easily. (d) Long-term loans and advances
(v) Packaging and Labelling Packaging refers to (e) Retained earnings
(iü) The main sources of funds fora business are
designing and developing the package for a
product. Package refers to the wrapper or (a) Shareholders' Funds These funds include
container, which not only provides protection equity capital and retained earnings.
to the product, but also acts as a promotional tool (b) Borrowed Funds These funds include
for it. debentures, loans or other forms of debt.
Labelling refers to designing and developing (Gi) The following factors affect the financing
the label to be put on the package. decision (any three)
A label is a carrier of information. It may be a (a) Cost The cost of all the sources of finance is
simple tag or a complex graphic providing different. The rate of interest on debt, fixed
details about the product. rate of dividend to be paid on preference
process of
(vi) Branding Branding refers to the combination share capital and the expectations of the
symbol or a of
giving a name, sign, identification.
shareholders on the equity share capital are
all to a product for creating its in the form of costs.
other
It helps to differentiate the product from If the situations happen to be favourable, the
products available in the market. It also helps benefit of cheap finance can be availed of by
to build customer's loyalty and promoting its choosing debt capital.
sales. (b) Risk Debt capital is most risky and from the
Students sometimes misunderstand point of view of risk, it should not be used.
Common between features of marketing and (c) Floatation Cost From the point of view of
Mistake
functions of marketing. Students should floating costs, retained profit is the most
learn them under separate headings appropriate source. Therefore, its use should
accordingly. be made.
36 i Succeed Business Studies Class
(d) Level of Fixed Operating Costs In business, Sales can be effected immediately upon the
there are mainly two types of costs which receiptof materials, sometimes even before th
are as follows In amanufacturing business, however, raw
Fixed Operating Cost eg. Rent of the material needs to be converted into finished
building, payment of salary, insurance goods before any sales become possible, thus
premium, etc. more working capitalis needed. Other factors
Fixed Financial Cost e.g. Interest on debt, remaining the same,a trading business require
etc. If the level of fixed operating costs is in less working capital.
excess, it is better to keep the fixed financial Similarly, service industries which usually do
costs at the minimum. Therefore, debt not have to maintain inventory require less
capital should not be used. On the contrary, working capital.
if the level of fixed operating cost is low, the (ii) Production Cycle
use of debt capital is more profitable. "Navu production cycle."
Value Points Production cycle refers to the time span
For getting maximum marks, following value points between the receipt of raw material and
can be included in the answer their conversion into finished goods. Some
" Cost associated with the source of
finance. businesses have a longer production cycle whi
" Levels of operating cost in business. some have a shorter one. Duration and the
length of production cycle, affects the amount
34. The three factors affecting the of funds required for raw materials and
requirements working capital expenses. Consequerntly, working capital
discussed in the above paragraph are
as under requirement is higher in firms with longer
(i) Nature of Business processing cycle and lower in firms with
"They are also -...capital requirements".
shorter processing cycle.
The basic nature of a business (iii) Credit Allowed
majorly "Besides
influences the amount of working capital as well."
requirements. A trading Different firms allow different credit terms to
needs a smaller amount oforganisation
working
usually their customers. It depends upon the
capital as
compared to a manufacturing organisation. This
is because there is usually no
competition that a firm faces as well aslevel
the
of
processing.
Therefore, there no distinction between raw
is
creditworthiness of their customers. A
credit policy results in higher liberal
materials and finished goods. debtors thereby increasing the amount of
working capital and vice-versa. requirement of