Business Studies: 2017: CBSE: [Delhi]: Set – II
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What is meant by financial management?Marks:1
Financial management is related to optimum utilization of funds acquired through different sources of finance for the purpose of investing these funds in most profitable projects
Why is employment interview conducted in the process of selection?Marks:1
Employment interview is an in-depth conversation with the candidate so as to seek information about the applicant as well as analyse their suitability for the job.
Sunita took her niece, Aishwarya for shopping to Benetton to buy her a dress on the occasion of her birthday. She was delighted when on payment for the dress, she got a discount voucher to get 20% off for a meal of ₹ 500 or above at a famous eating joint.
Identify the technique of sales promotion used by the company in the above situation.Marks:1
The technique of sales promotion used is usable benefit. This technique helps to boosts sales of the company.
Meca ltd. a reputed automobile manufacturer needs rupees ten crores as additional capital to expand its business. Atul Jalan, the CEO of the company wanted to raise funds through equity. On the other hand, the Finance Manager, Nimi Sahdev said that the public issue may be expensive on account of various mandatory and non-mandatory expenses. Therefore, it was decided to allot the securities to institutional investors. Name the method through which company decided to raise the capital.Marks:1
The company decided to raise additional through Private placement. In this method, securities are allotted to institutional investors by the company.
Differentiate between formal and informal organization on the basis origin.Marks:1
On the basis of origin:
Formal organization originates as a result of rules and regulations in an organization, whereas Informal organization originates as result of social interaction between people.
Give the meaning of Motivation as an element of directingMarks:1
Motivation as an element of directing is the process of stimulating people to work for achievement of goals.
Alpha Enterprises is a company manufacturing water geysers. The company has functional structure with four main functions Production, Marketing, Finance and Human resources. As the demand for product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.Marks:1
The concept that will help the Human Resource Manager is workload analysis which helps to estimate the number and type of personnel required in different departments or jobs.
Hina Sweets is a renowned name for quality since 1935. Harsh the owner of Hina Sweets was worried as the sales had declined during the last three months. When he enquired from the sales manager, the Sales Manager reported that there were some complaints about the quality of sweets. Therefore Harsh ordered for sample checking of sweets.
Identify the step taken by Harsh that is related to one of the functions of management.Marks:1
The management function performed by Harsh is controlling. The step taken under this function is measurement of actual performance by ordering to check the quality of sweets.
Explain discipline and scalar chain as principles of general managementMarks:3
1. Discipline: this principle emphasizes on maintaining code of conduct in an organization and following the rules and regulations laid down under policies.
It helps to supervise at all levels of management and punishes for any misconduct.
Example: many organisations has a policy of working hours up to 8-9 hours, rules for taking leave, etc. which are to be followed by the employees.
2 Scalar chain: this principle by Fayol specifies the formal lines of communication from top level to low level. In case of an emergency, a person at lower level can directly contact another person at higher level without going through different channels of communication, which is known as gang plank.
Example: a sales trainee has to report to sales manager, who in turn has to report to Sales head. This type of chain is applicable in all types of departments and at all levels in an organisation.
State any three points of limitations of planning function of managementMarks:3
The limitations of planning are:
· Time consuming: Planning is time consuming process as it involves a lot of time in identifying, analysing and selecting the alternatives which sometimes lead to delay in decision making
· Creates rigidity: Planning involves the determination of a course of action in advance. It may lead to internal inflexibility and procedural rigidity.
· Involves huge cost: Formulation of plans involves too much cost which is in the form of time spent, money spent etc. but sometimes there is little benefit from planning, and instead it becomes a burden for the institution.