Business Studies : Part - II 2003 CBSE [ Delhi ] Set I

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  • Q1

    Differentiate between management and administration on the basis of decision-making and status of performers.

    Marks:2
    Answer:

    The difference of the same is given here :
    1)     Management has executive functions whereas Administration has a decision-making function.
    2) 
    Management is more important at supervisory or lower level. While Administration is more important at higher level of management

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  • Q2

    How does the technique of ‘motion study’ help to improve the efficiency of workers? Give any two points in support of your answer.

    Marks:2
    Answer:

    It is a science of eliminating unnecessary motions in the works. It improves the performance of the workers without any discrimination. The two points are -
    1. Slow motion camera is used for study.
    2. It aims at increasing the product and productivity by eliminating unnecessary motions.

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  • Q3

    What is economic and non-economic environment of business?

    Marks:2
    Answer:

    OUT OF SYLLABUS

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  • Q4

    Define ‘organising' a function of management.

    Marks:2
    Answer:

    Organising refers to the process of bringing together physical, financial and human resources and establishing productive relations among them for the achievement of specific goals. It aims to enable people to relate to each other and to work together for a common purpose. The organized group of people in a collective sense is known as organization.

     

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  • Q5

    Describe the money market

    Marks:2
    Answer:

    Money market is a market for short-term funds meant for use for a period of up to one year. This market constitutes a major source of working capital market.
    The important money market instruments or securities are :
    i)                    Call Money
    ii)                  Treasury Bills
    iii)                 Trade Bills
    iv)                Commercial Paper
    v)                 Certificate of deposit

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  • Q6

    Delegation of authority is based on the elementary principle of division of work. Explain.

    Marks:3
    Answer:

    “Delegation of authority is based on the elementary principle of division of work.”
    The process by which a manager shares some of his work and authority with his subordinates is known as delegation of authority. In other words we can say that delegation is the process of sharing the tasks and authority between a manager and his subordinates.
    It is obvious that no manager can perform the task assigned to him thus he shares the task s to be performed with his subordinates. This way there is a division of work. Thus we can say that Delegation of authority is based on the elementary principle of division of work.

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  • Q7

    State the objective of personal selling.

    Marks:3
    Answer:

    The objectives of personal selling are:
    1)     Identifying the prospects.
    2)     Winning the confidence of customers and securing orders.
    3)     Providing useful feedback about the customer's taste, attitude and buying references.

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  • Q8

    Explain in brief any three decisions involved in financial management.

    Marks:3
    Answer:

    Following are the three major decisions involved in Financial Management:
    1.     Investment Decision: The most important decision for any organization is to allocate the resources or the capital to different investment proposals. These proposals are evaluated on the basis of their expected returns and risk involved.
    2.     Finance Decision: The second decision is how to finance the activities of the business. There are different sources of finance like shares, debenture and loans. But a proper mix of all these types of securities is essential. The combination of shares loans and debenture constitutes the capital structure of a company.
    3.  Dividend Decision: The third decision is related to the disposal of the profits. Profits are required for a number of purposes. Some amount is recycled in the business.

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  • Q9

    Distinguish between policies and procedures.

    Marks:3
    Answer:

    Policy

    Procedure

    1) A policy is a guide to thinking and step to decision making.

    2) It is derived from objectives of the enterprise.

    3) It is flexible

    4) It leaves some scope for manager’s discreation.

         1) It is a guide to action. 

     

    2)     It is laid down to implement some policy.

    3)   It is more or less rigid.

    4) It gives no discreation to the person concerned with its implementation.

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  • Q10

    What does right issue at shares mean?

    Marks:3
    Answer:

    Right Issue at share: Under this method new share are issued to the existing shareholders. Every shareholder is entitled to subscribe for new share in proportion to the share held by him. The shareholder may accept the offer or assign it in part or full to a third party. Rights issues are made at a price below the current price.
    Rights issues are inexpensive and convenient way of raising additional capital. Rights issue to the existing shareholders is mandatory requirement. This is why, stock exchange does not allow a listed company to issue new shares without giving pre-emptive rights to the existing share holders.

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