Business Studies 2015 CBSE [ Delhi] Set 3
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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.
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.
Define planning ‘premises’.Marks:1
The assumptions, based on which a manager draws plans are called planning premises.
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.
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’.
What is meant by ‘efficiency’ in management?Marks:1
Efficiency in management means doing the task correctly at minimum cost.
Define ‘formal organisation’.Marks:1
Formal organisation is an organisational structure which is designed by management, with well defined jobs bearing authority, responsibility and accountability.
State any three limitations of ‘divisional structure’ of an organisation.Marks:3
A divisional structure has the following limitations:
- Costly: Due to duplication of resources in different departments, it becomes a costly affair for an organisation as a whole.
- Conflicts: Conflicts may arise on the issue of allotment of funds to different departments and on common policy matters.
- Ignoring organisational interests: Due to the autonomy with divisional heads, the probability of their considering divisional interest and ignoring organisational interest increases.
Neeraj, a sales representative of ‘Omida Ltd.’ has changed seven jobs in the last one year. He is a hard working person but is not able to finalise deals with the customers due to his inadequate vocabulary and omission of needed words. Sometimes he uses wrong words because of which intended meaning is not conveyed. All this created a mis-understanding between him and his clients.
- Identify the communication barrier discussed above.
- State the category of this communication barrier.
- Explain any other communication barrier of the same category.
- The communication barrier being talked about is ‘Badly Expressed Message’.
- It falls under the category of ‘Semantic Barriers’.
- Another barrier under this category is ‘Technical Jargon’. This happens generally with specialists of a field who tend to use technical language while explaining, which may not be comprehensible to all.