Business Studies 2015 CBSE [ Delhi] Set 1
To Access the full content, Please Purchase
What is meant by ‘efficiency’ in management?Marks:1
Efficiency in management means doing the task correctly at minimum cost.
How does management help in achieving personal objectives? State.Marks:1
By providing motivation and leadership, management helps individuals to develop team spirit, cooperation and commitment towards their group and hence achieve personal objectives.
Define planning ‘premises’.Marks:1
The assumptions, based on which a manager draws plans are called planning premises.
Alliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day. To achieve this, the efforts of all departments are co-ordinated and interlinked and authority-responsibility relationship is established among various job positions.
There is clarity on who is to report to whom.
Name the function of management discussed above.Marks:1
The function of management discussed here is ‘Organising’.
Explain how ‘cost of debt’ affects the choice of capital structure of a company.Marks:1
Debt is a cheaper source of finance than equity as interest paid on it is tax deductible. Hence, if cost of debt is low, more debt can be used in the capital structure.
‘Indian Logistics’ has its own warehousing arrangements at key locations across the country. Its warehousing services help business firms reduce their overloads, increase efficiency and cut down distribution time.
State with reason, whether the working capital requirements of ‘Indian Logistics’ will be high or low?Marks:1
Indian logistics is a part of service industry where it does not need to maintain any inventory. Hence, the requirement of working capital would be low. It shall only be incurring the costs of salary, electricity, other overheads, etc. which are common to every organisation.
‘Beauty Products Ltd’ is a natural and ethical beauty brand famous for offering organic beauty products for men and women. The company uses plant based materials for its products and is No. 1 beauty brand in the country. It not only satisfies its customers but also believes in overall protection of the planet.
Identify the marketing management philosophy being followed by ‘Beauty Products Ltd.’Marks:1
The focus of ‘Beauty Products Ltd.’ is on customer’s needs and well-being of Society. The Company follows Societal Concept of marketing.
On Sonika’s birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark in the earrings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she filed a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after 2 months decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reasons in support of your answer.Marks:1
No, Sonika cannot appeal againt the order of district forum as the stipulated time frame for making the appeal before state commission is 30 days of passing the order. In this case, that time period has already passed.
What is meant by ‘functional structure’ of an organisation? State it’s any two advantages.Marks:3
Functional structure refers to the organisational structure formed by grouping jobs of similar nature under major functions, as separate departments such as Finance, Human Resources, and Production, etc.
Functional Structure can be depicted as:
It has the following advantages:
- Lower Cost: It leads to minimum duplication of work which in turn leads to economies of scale and hence, lower costs.
- Functional Specialisation: As the employees perform similar tasks within a department, it results in efficiency in utilisation of manpower and improved performance.
Explain how the ‘product related factors’ affect the choice of channels of distribution?Marks:3
Following are the product related factors that affect the choice of channels of distribution:
- Nature of Product: Consumer products are standardised, less bulky, frequently bought and less expensive. These can be distributed through a long channel. On the other hand, industrial products are customised, technical and expensive, hence supplied through smaller channel.
- Unit Value: For costly goods, shorter channels are preferred.
- Product Complexity: For a complex product requiring technical details, shorter channel is preferred.
- Perishability: Perishable goods like fruits and vegetables are preferably distributed through short channels, whereas non perishable goods can be distributed through longer channels.