Business Studies 2016 CBSE Board paper (Delhi) SET 3
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Name the marketing function which is concerned with informing the customers about the firm’s products.Marks:1
The marketing function which is concerned with informing the customers about the firm’s products is ‘promotion.’
Radhika and Vani who are young fashion designers left their job with a famous fashion designer chain to set-up a company ‘fashionable Pvt. Ltd. They decided to run a boutique during the day and coaching classes for entrance examination of National Institute of Fashion Designing in the evening. For the coaching centre they hired the first floor of a nearby building. Their major expense was money spent on photocopying of notes for their students. They thought of buying a photocopier knowing fully that their scale of operations was not sufficient to make full use of the photocopier.
In the basement of the building of ‘Fashionate Pvt. Ltd.’ Praveen and Ramesh were carrying on a printing and stationery business in the name of on ‘Neo Prints Pvt. Ltd’. Radhika approached Praveen with the proposal to buy a photocopier jointly which could be used by both of them without making separate investment, Praveen agreed to this.
Identify the factor affecting fixed capital requirements of ‘Fashionate Pvt. Ltd’.Marks:1
Business organisations collaborate with each other for sharing cost, benefits, etc. They derive synergy benefits out of collaboration. The factor affecting fixed capital requirements of ‘Fashionate Pvt. Ltd’ is ‘level of collaboration.’
The size of assets, the profitability and competitiveness are affected by one of the financial decisions. Name and state the decision.Marks:1
The size of assets, the profitability and competitiveness are affected by investment decision. It is also known as capital budgeting decision.
‘Management is the process of getting things done’. State the meaning of the term ‘process’ used in this statement.Marks:1
Management is the process of getting things done, where process refers to the activities that management performs to get the things done for achieving goals of the organisation.
Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given on the label were not legible. He complained about it to the company. The company sent a written apology stating that they will make sure that existing packets are withdrawn from the market and new packets with legible labels are soon made available.
State the consumer right with which Manuj exercised.Marks:1
The consumer right with which Manuj exercised is ‘Right to be informed.’ Consumers have right to adequate information about the products.
Name the type of ‘organisational structure’ which promotes efficiency in utilisation of manpower.Marks:1
The type of ‘organisational structure’ that promotes efficiency in utilisation of manpower is functional structure.
Give the meaning of ‘accountability’ as an element of delegation.Marks:1
Accountability means the answerability of the outcome of any assigned task to the superior.
State the role of ‘inspector’ in ‘functional foremanship’.Marks:1
In functional foremanship responsibility of inspector is to see that the work done confirms the standards of quality laid down by the planning department. Quality of the work done is checked by the inspector.
Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human Resource Manager of ‘Senor Enterprises Ltd’. decided to leave the company. The Chief Executive Officer of the company called Jyoti the Human Resource Manager and requested her to fill up the vacancies before leaving the organisation. Informing that her subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti suggested that if she moved up in the hierarchy, she would do the needful. The Chief Executive Officer agreed for the same, Miss Alka Pandit contracted ‘Keith Recruiters’ who advertised for the post of marketing head for ‘Senor Enterprises Ltd’. They were able to recruit a suitable candidate for the company.
Raman’s vacancy was filled up by screening the database of unsolicited applications lying in the office.
a. Name the internal/external sources of recruitment used by ‘Senor Enterprises Ltd’. to fill up the above state vacancies.
b. Also state any one merit of each of the above identified source of recruitment.Marks:3
(a) The internal/external sources of recruitment used by ‘Senor Enterprises Ltd.’ to fill up the above state vacancies are:
For Human Resource Manager: Promotion
For Marketing Head: Placement Agencies and Management Consultants
For Assistant Manager: Casual Callers
(b) One merit of each of the above identified source of recruitment is
Promotion: This helps to improve the motivation, loyalty and satisfaction level of employees.
Placement Agencies and Management Consultants: They maintain data bank of persons and even advertise the jobs on behalf of their clients to recruit right type of personnel.
Casual Callers: This source of recruitment reduces the cost of recruiting the workforce.
Mr. Sanjay Nehra was the Chairman of ‘Taran Bank’. The bank was earning good profits, Shareholders were happy as the bank was paying regular dividends. The market price of their shares was also steadily rising. The bank was about to announce taking over of ‘Vena Bank’.
Mr. Sanjay Nehra knew that the share price of ‘Taran Bank’ would rise on this announcement. Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his friends. Sudhir and asked him to invest ` 5 crores in share of his bank promising him the capital gains.
As expected the share prices went up by 40% and the market price of Sudhir’s shares was now ` 7 crores. He earned a profit of ` 2 crores. He gave ` 1 crore to Mr. Sanjay Nehra and kept ` 1 crore with himself. On regular inspection and by conducting enquiries of the brokers involved, Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI imposed a heavy penalty on Mr. Sanjay Nehra.
By Quoting the lines from the above para identify and state any two functions that were perfomed by SEBI in the above case.Marks:3
The functions performed by SEBI are:
Regulatory functions: SEBI has framed rules and regulations and code of conduct to regulate the intermediaries such as brokers, bankers, underwriters, etc. The lines, ‘regular inspection and by conducting enquires of the brokers involved’ emphasis on regulatory functions of SEBI.
Protective functions: To prohibit fraudulent and unfair trade practices in the securities market, prohibit inside trading, educate investors, etc are some of the protective functions of SEBI. The lines, ‘imposed a heavy penalty on Mr. Sanjay Nehra,’ emphasis on protective functions of SEBI.