Business Studies 2004 CBSE [ Delhi ] Set I

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  • Q1

    Explain, in brief, 'management' as a process.


    Management requires series of operations to achieve the desired results for the enterprise. These operations are planning, organising, staffing, directing and controlling. In order to achieve the best possible results of the business, these functions should be performed systematically in a proper sequence. Thus, management is a process involving various functions.

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  • Q2

    Give any two examples of the impact of changes in economic environment on business organisations.


    The impact of changes in economic environment are as follows:
    Reform in banking sector such as easier credit terms, better services etc.
    Evolution of leasing and financing companies.

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  • Q3

    Explain, in brief, the term 'directing' as a function of management.


    Directing consists of supervision, motivation, leadership & communication (SMCL). It involves issuing orders and instructions by managers to subordinates. It also guides and inspires them. Leading and motivating them to efficiently achieve the desired goals of the organisation is also an important part of directing.

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  • Q4

    What is meant by the 'product concept of marketing"


    The product concept of marketing implies that consumers favour those products that offer the best quality, performance and features. Managers also believe that consumers appreciate quality features and shall be willing to pay ‘higher’ price for ‘extra’ quality in the product or service made available to them. Those companies which believe in product concept, concentrate on product and its improvement.

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  • Q5

    Differentiate between 'marketing' and 'selling' on the basis of:
    1) Objective    2) Purpose





    a) Objective


    The basic objective of selling is to increase the revenue.

    Marketing aims at ensuring that the customers get maximum satisfaction.

    b) Purpose

    Its purpose is concerned with the goods already produced.

    It begins before the production and continues even after the sale has been completed.

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  • Q6

    State any three reasons as to why proper understanding of management principles is necessary?


    Management principles are needed for the following reasons:
    Effective use of resources:
    The management is a principle of "science, not rule of the thumb” suggests that every task should be done with minimum effort and energy and additional work can be done with saved energy. By saving time, efforts and energy, activities can be made economical and will enhance the productivity of the resources.
    Change in technology:
    The management principle of “division of labour” helps management in identifying in which activity technology has changed. If there is no division of labour then confusion may prevail about what and how much to change and the firm might find it difficult to face competition and might, in extreme case, run out of business.
    Effective Administration:
    The principle of ‘scalar chain’ helps the enterprise to communicate with people at different levels.
    ‘Unity of direction’ removes confusion from the minds of employees; and
    ‘Unity of command’ avoids dual subordination.

    Thus these principles help management in managing their organisations effectively.

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  • Q7

    Enumerate any six common barriers to effective communication.


    Following are the common barriers to effective communication:
    1.      Poor listening skills
    2.      Semantic problems
    3.      Creditability of sources
    4.      Complex organisational structure
    5.      Pre-disposition
    Difference in status

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  • Q8

    "The post of supervisor should be abolished in the hierarchy of managers". Do you agree? Give any three reasons in support of your answer.


    I don’t agree at all that the post of supervisor should be abolished in the hierarchy of manager. The statement can be justified as the functions of a supervisor are:
    1) Communication of order and instructions: A supervisor issues a number of orders to his subordinates everyday. Orders are issued requiring them to act or not to act in a particular way.
    2) Introduction of new work methods: Another function of a supervisor is to examine constantly how the existing work methods could be improved to secure maximum productivity.
    3) Motivation: A supervisor inspires and motivates his subordinates through proper incentives towards better work performance.

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  • Q9

    Explain briefly any three features of personal selling.


    Following are the three features of personal selling:

    •   Personal in nature: Personal selling is a direct method of selling the product. It is a personal form of presenting information regarding a product or a service. Personal selling is addressed to an individual buyer and not to a group of people.
    •   Company sponsored: Personal selling is mainly controlled and sponsored by the company itself.
    •  Recurring Nature: Personal selling relies on oral messages only. Hence it is of recurring nature. Personal selling is frequently repeated to create a memorising value.

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  • Q10

    Explain briefly any three techniques of sales promotion commonly used by marketers to attract the customers towards the products.


    Following are the three techniques of sales promotion:
    1.     Sample: A sample is the small quantity of a product given to a customer in order to promote the sales of the product. This helps a consumer to verify the quality of the product. Free samples are distributed to promote the sales of soaps, medicines, tooth pastes etc.
    2.     Coupons: A coupon is a certificate that enables the customer to make  a specified saving on the purchase of a product. Coupons are given directly to the customers.
    Price-off Offers: Under this offer, the products are offered for sale at a price lower than the normal price of the product. This offer is intended to stimulate the sales during a slump period.

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