Friday, December 12, 2025

CBSE Class 12th Business Studies Revision Notes - N10

Free Business Studies - Class 12th (CBSE) - Revision Notes - N10 - Financial Markets

Financial Markets

  • A Financial Market is a market for the creation and exchange of financial assets.
  • An economic system consists of two main sectors - households which save funds and business firms which invest these funds.
  • A financial market helps to link the savers and the investors by mobilizing/Moving funds between them. (Allocative Function)
  • It allocates or directs funds available for investment into their most productive investment opportunity. The process by which the allocation of funds is done is called financial intermediation.
  • Financial markets exist wherever a financial transaction occurs.
  • Financial transactions could be in the form of creation of financial assets such as the initial issue of shares and debentures by a firm or the exchange of existing financial assets like equity shares, debentures and bonds.

Functions of the Financial Markets

  1. Allocative function  A financial market facilitates the transfer of savings from savers to investors. It gives savers the choice of different investments and thus helps to channelize surplus funds into the most productive use.
  2. Facilitating Price Discovery In the financial market, households are suppliers of funds and business firms represent the demand. The interaction between the forces of demand and supply helps to establish a price for a financial asset being traded in the financial market.
  3. Providing Liquidity to Financial Assets Financial markets facilitate easy purchase and sale of financial assets. Holders of assets can readily sell their financial assets through the mechanism of the financial market.
  4. Reducing the Cost of Transactions Financial markets provide valuable information about securities being traded in the market. It helps to save time, effort and money that both buyers and sellers of a financial asset would have to otherwise spend to try and find each other. The financial market is thus a common platform where buyers and sellers can meet for the fulfilment of their individual needs.

Types of Financial Markets


Money Market

  • Money market is a market for short-term funds which deals in assets whose period of maturity is up to one year. It enables the raising of funds for meeting the temporary shortages of cash and obligations and the temporary deployment/usage of excess funds for earning returns.
  • A money market is a market where low-risk, unsecured and short-term debt instruments that are highly liquid are issued and actively traded every day. It has no physical location, but is an activity conducted over the telephone and through the Internet.
  • Major Participants in the Money Market are:

  1. The Reserve Bank of India (RBI)
  2. Non-Banking Finance Companies
  3. Large Corporate Houses
  4. Commercial Banks
  5. State Governments
  6. Mutual Funds

  • Instruments of Money Market are:

  1. Treasury Bill
  2. Commercial Paper
  3. Certificate of Deposit

Capital Market

  • Capital market refers to institutional arrangements through which medium and long-term funds, both debt and equity are raised and invested.
  • It does not deal with channelizing savings for less than one year.
  • The capital market transfers money from savers to entrepreneurial borrowers/business.
  • The capital market makes use of different intermediaries such as brokers, underwriters, depositories etc. These intermediaries act as working organs of the capital market and are very important elements of the capital market.

Differences Between the Money Market and The Capital Market

The End

Have you finished the entire revision of the notes? Do you want to learn more? Below are the revision notes for the following:

Mexico Imposing 50% Tariff on Asian Countries: Explained

Mexico's 50% Tariff on Asian Countries: A Complete Guide

First, it was America, and now Mexico is imposing 50% tariffs on Asian countries like India, China, and South Korea from 2026.
As every government wants to protect its local markets, the Mexican government has imposed these tariffs at a higher rate to:
  • Make Asian goods more expensive in Mexico (local market)
  • Protect Mexican factories (local manufacturing hubs) from international competition
  • Generate more tax income for the Mexican government
You might be curious to know the complete story behind it, so let’s unravel it in our blog.
💡 Tip: tariff is a tax that a country charges when goods enter from another country. Think of it like a fee or entry tax at the border.

What Did Mexico Do?

  • Mexico’s lawmakers have approved new import tariffs (taxes paid at the border) on more than 1,400 products coming from Asian countries.
  • These tariffs are applicable to those countries that do not have a free trade agreement with Mexico.
  • The tariffs range from 5% to 50%.
  • The affected items will be from Asian regions:
    • Cars
    • Auto parts 
    • Textiles
    • Clothing
    • Plastics
    • Steel
    • Footwear
    • Electronics​

How Much Revenue Will be Collected?

Mexico’s finance ministry estimates these tariffs will bring in about 52 billion pesos (around 2.8–3.8 billion US dollars) in extra revenue in 2026.

Explaining the Situation with Real-World Examples

Example 1: Indian Cars in Mexico

Before the tariff:

  • Hyundai exports a car from India to Mexico for $15,000
  • Mexican customer pays $15,000
  • Profit goes to the company

After the 50% tariff:

  • Same car now has a 50% tax added = $7,500 extra cost
  • Mexican customer must pay $22,500 (or the company loses $7,500 in profit)
  • Result: Fewer people buy Indian cars → Indian companies lose business

Aspect Before Tariff After Tariff
Car Price$15,000$15,000
Tariff (Tax)$0$7,500 (50%)
Total Price$15,000$22,500
Customer ImpactAffordableMore Expensive
Company ImpactMore SalesFewer Sales

Example 2: Electronic Parts from India

An Indian company ships electronic components worth $100,000 to Mexico.

Stage Amount
Original value $100,000
Tariff at 30% $30,000
Total cost for buyer $130,000

Now Mexican factories have to pay 30% extra, so they either reduce profit or increase the final product price.


Learning for Students

According to Business Studies:

Mexico is using protectionism. It means protecting its own companies from foreign competitors by making foreign goods expensive.

For Companies:

  • Indian exporters lose customers to Mexican competitors
  • Mexican companies get breathing room to sell more
  • Some companies may decide to set up factories in Mexico instead of exporting
Who Benefits Who Loses
Mexican car makers Indian car makers
Mexican electronics factories Indian electronics exporters
Mexican workers Asian exporters' jobs at risk

According to Economics:

How prices change:

  • Imported goods become more expensive
  • Mexican goods (that don't have tariffs) look cheaper
  • Customers buy more local, less foreign

Supply and Demand:

  • Price of foreign goods ↑ (due to tariff)
  • Demand for foreign goods ↓
  • Demand for Mexican goods ↑

For the government: Mexico earns tax money but may face trade wars if other countries retaliate.​

According to Accountancy:

For an importing company's accounts:

If a company imports goods worth ₹100 from India:

  • Cost of Goods = ₹100
  • Customs Tariff (50%) = ₹50
  • Total Cost in Books = ₹150

When this is sold later, the higher cost reduces profit.

Item Amount
Sales Revenue ₹200
Cost of Goods (including tariff) ₹150
Gross Profit ₹50 (was ₹100 before tariff)
Loss = 50% Profit drops by half

Quick Summary

  • What: Mexico added 5-50% tax on Asian goods starting 2026
  • Why: To protect Mexican businesses and jobs
  • Effect: Asian products become expensive; Mexican products become more competitive; profits of exporters drop; customers pay more

The End

Sunday, December 7, 2025

CBSE Class 12th Business Studies Question Paper - TS3 (5 Question Papers)

Free Business Studies - Class 12th (CBSE) - TS3 (5 Question Papers Included) - Business Environment

Here are the quick details:
  • Class: XII
  • Subject: BUSINESS STUDIES
  • Time: 45 minutes
  • Maximum Marks: 20
  • Chapter Name: Business Environment
  • Marking Scheme: One, three, four, and six marks
Below are the links to the tests:

Test 1

  • Time: 45 minutes
  • Maximum Marks: 20
Q1. __________ is considered a major element of the political environment: (Choose the correct alternative) (1 mark)
  1. The extent and nature of government intervention in business
  2. Planned outlay in the public and private sectors
  3. Expectations from the workforce
  4. Administrative order issued by government authorities
Q2. Which of the following is not a component of the economic environment of business? (1 mark)
  1. Interest rates 
  2. Inflation rates
  3. Literacy rates 
  4. Rates of savings and investments.
Q3. Identify the dimensions of the business environment illustrated by the picture in which Sapna, who has joined the workforce recently, is working on an accounting software. (1 mark)
A female working on computer
  1. Technological and social
  2. Technological and political
  3. Political and economic
  4. Social and legal
Q4. 
  • Assertion (A): Economic, social, political, legal, and technological conditions are the specific forces of the business environment.
  • Reason (R): Economic, social, political, legal, and technological environments have an impact on all business enterprises and thus may affect an individual firm only indirectly. (1 mark)
  1. Both Assertion (A) and Reason (R) are true.
  2. Both Assertion (A) and Reason (R) are false. 
  3. Assertion (A) is true, and Reason (R) is false.
  4. Assertion (A) is false, and Reason (R) is true. 
Q5. State any three features of ‘demonetisation’. (3 marks)
Q6. The Government is considering a pioneering proposal to launch a single debit-cum-credit card to increase the ease and use for consumers. The card, which will be called the “National Mobility Card,” will have unique advantages for making payments in metro, buses, parking, and making transactions during visits abroad. After hearing this news, Mega Bank decided to launch a “Mega Mobility Card” on similar lines, so that they could be the first to exploit the opportunity arising due to the increasing trend of digitization. In order to improve their performance, they laid down a plan to hire more people in their marketing department and prepared guidelines to train their sales force to market the new card facility being launched by the bank. By quoting the lines, identify and explain any three points of importance of understanding the Business Environment discussed above. (3 marks)
Q7. National Digital Library of India (NDL India) is a pilot project initiated by the HRD ministry. It works towards developing a framework of a virtual repository of learning resources with a single-window search facility. It provides support to all academic levels, including researchers, life-long learners, and differently abled learners, free of cost. Identify and explain two dimensions of the business environment highlighted above. (4 marks)
Q8. Define business environment. State any five features of the business environment. (6 marks)

The End

Saturday, December 6, 2025

News Update on Netflix and Warner Bros. Discovery Deal

Netflix and Warner Bros. Discovery 2025 Deal Details

An illustration showing a handshake that leads to Netflix and Warner Bros deal
On December 5th, 2025, Netflix and Warner Bros. broke the internet with their official deal. In this collaboration, Netflix will acquire the rights to Warner Bros content.
This is the biggest deal in the entertainment industry!
Let’s read more about this historic moment in a case study format in our blog.
💡 Update: Paramount Studios is trying (hostile bid) to buy Warner Bros for $108 billion.

Introduction

Netflix has valued Warner Bros. at USD $72 billion and agreed to pay about USD $82.7 billion dollars.
The contract includes the following:
  • All the movie titles, such as Harry Potter, Batman, Superman, Wonder Woman, etc.
  • The entire section of TV series, such as Ballers, Game of Thrones, The Sopranos, The Wire, Succession, The White Lotus, Chernobyl, True Detective, Curb Your Enthusiasm, and Big Little Lies, etc.
  • The complete hold of the HBO channel
  • Max streaming service
  • Film studios
💡 Note: WBD will separate its cable‑TV networks (like CNN, Discovery Channel) into another company (Discovery Global), which Netflix is not buying.

Company Backgrounds

Netflix is one of the largest OTT streaming platforms in the world, particularly famous for its original shows like Stranger Things and Squid Game.
On the contrary, Warner Bros. is already famous for its movie series, such as Harry Potter.
Let’s find out more about them in the table below.
Point Netflix WBD – Studios & Streaming
Founded Founded in 1997 in the United States Founded as Warner Bros studio in 1923
Main business Online streaming of films, series and games worldwide. Film and TV production plus streaming via HBO and Max (HBO Max).
Key brands Stranger Things, The Crown and other Netflix Originals, plus licensed shows. Harry Potter, DC Universe, Game of Thrones and classic Warner Bros titles.
Model Subscription streaming with ad‑supported plans. Cinema, TV licensing, streaming (Max) and advertising.
Scale pre‑deal Market value around 440 billion USD in 2025. Market value 60–65 billion USD; studios & streaming unit valued at 72 billion USD.
Role in deal Buyer, paying in cash and stock. Seller of studios, HBO, Max and related libraries.

Key Deal Details and Valuations

Company Approx. value before deal
(4 Dec 2025)
Approx. value with/after deal
Netflix Around 440 billion USD market value before the deal. Remains the same as before.
Warner Bros Discovery (WBD)
About 61 billion USD stock‑market value for the whole company before the announcement. Netflix values the studios & streaming unit at 72 billion USD in equity, or about 82.7 billion USD including debt.

Reasons for Netflix-Warner Bros. Deal

For Netflix:

  • The deal brings control of famous franchises (such as DC, Harry Potter, and HBO series) and a deeper content library under one roof.
  • A potential to gain more subscribers and viewership globally.
  • Before this acquisition, WBD had already licensed older HBO shows such as Insecure, Ballers, Six Feet Under and others to Netflix, which performed well on the OTT platform.

For Warner Bros Discovery:

  • Selling the streaming rights and studios at a premium to Netflix.
  • Reducing liabilities for Warner Bros, as it has already reported USD $34 to 35 billion of net debt on its balance sheet in 2024.

Risks Associated with Netflix-Warner Bros. Deal

As this is the largest deal in the entertainment industry, it must pass strict competition checks because:
  • This agreement could reduce choice and bargaining power for rivals.
  • Execution risks might leads to:
    • Mixing cultures of two different companies
    • Managing large debt
    • Deciding how Netflix will manage theatrical releases and online streaming for future Warner Bros. films
💡 Tip: To understand this concept via video, click this link.

Learning from the Netflix–Warner Bros Deal for Class 11th & 12th

Subject Key Takeaways
Business Studies ✓ External growth through acquisition
✓ How business environment affects strategy
✓ Capital structure decisions in big deals
✓ Managing organizational culture after mergers
Accountancy ✓ Understanding debt on balance sheets
✓ Difference between book value and market value
✓ What is goodwill and why companies pay extra
Economics ✓ Oligopoly market structure in streaming
✓ How mergers affect competition and prices
✓ Impact on employment and investment

The End

Thursday, December 4, 2025

CBSE Class 12th Business Studies Question Paper - TS12 (5 Question Papers)

Free Business Studies - Class 12th (CBSE) - TS12 (5 Question Papers Included) - Consumer Protection

As a consumer, our first priority is to receive the best quality of the product at MRP (maximum retail price).
To make CBSE class 12th students learn about these concepts, we have built a set of five question papers.
Here are the quick details:
  • Class: XII
  • Subject: BUSINESS STUDIES
  • Time: 45 minutes
  • Maximum Marks: 20
  • Chapter Name: Consumer Protection
  • Marking Scheme: One, three, four, and six marks
Below are the links to the tests:

Test 1

Q1. Under which consumer right does a business firm set up a consumer grievance cell? (Choose the correct alternative) (1 mark)
  1. Right to safety
  2. Right to be heard
  3. Right to seek redressal
  4. Right to consumer education
Q2. Identify the responsibility that a consumer fulfils when he looks for the quality marks given above: (1 mark)
An image to discuss icons for a MCQ by a CBSE class 12th student
  1. Assert yourself to ensure that you get a fair deal
  2. Getting a proper receipt
  3. Buy only standardised products
  4. Be honest in your dealings
Q3. Shweta went to a reputed beauty salon to highlight her hair. She was told by the beautician that if she agrees to the package of ₹ 5,000, then she will get two hair spas worth ₹ 1,200 each, free. Shweta agreed to the offer. While highlighting her hair, the beautician spilt chemical on Shweta's face, and it went inside her left eye. Shweta was in pain. When she went to the doctor, she was diagnosed with cornea inflammation. Later, she gave a legal notice to the beautician, accusing her of a lack of expertise. Identify the consumer right that is violated in the above case. (1 mark)
  1. Right to Safety
  2. Right to be Assured
  3. Right to Seek Redressal
  4. Right to be Informed
Q4. Navya went to a supermarket for grocery shopping. She bought one kg of bajra flour from the supermarket. On reaching home, when she opened the packet, she found worms inside it. She was disappointed and told her son the same. Her son asked her to check the label. When she checked the label of the packet, she found that the bajra flour was stale and beyond the expiry date. She approached the salesperson at the supermarket, who replaced the bajra flour immediately. When she thanked the salesperson, she was told that it was the policy of the supermarket to satisfy the customers. He further said that satisfied customers not only lead to repeat sales, but they also provide good feedback to prospective customers, which helps in increasing the customer base of the business. Identify the point of importance of consumer protection from the point of view of the supermarket, which is helping them to increase the customer base: (1 mark)
  1. Long-term interest of the business
  2. Moral justification
  3. Social responsibility
  4. Government intervention
Q5. Suman bought a box of cheese from a reputed brand from a local shopkeeper. On opening the box, she found a piece of stone in the cheese. She reported the matter to the shopkeeper, who forwarded her complaint to the concerned company. Within a week, the representative of the company visited Suman's residence with an apology and, as a replacement, offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her. Identify and explain the consumer right that Suman exercised. (3 marks)
Q6. Deepak purchased a book from a book-seller and got the cash memo of ₹400, which he paid for the book. Later, he found that the actual price of the book is ₹380, but the book-seller had put a sticker of ₹ 400 on the original price. Can Deepak recover the extra money that he paid? What other options are available to him against the book-seller if he is refused to be given back the extra money he paid? (3 marks)
Q7. Tanya purchased some household goods from a 'General store'. After reaching home, she found a face cream that she had not billed for. After checking the date of expiry and other details, she started using it. Her face burned due to the use of the cream. Where should Tanya file a complaint? Justify. Under the Consumer Protection Act, 2019, who can file a complaint? (4 marks)
Q8. Indian Youth Organisation (IYO) organised a visit of its members to an old age home to inculcate the habit of social work among them. The visit revealed that the living conditions of the inmates of the old age home were not hygienic. So the IYO members decided to clean the premises. During their cleanliness drive, they realised that the old-age home also required pest control. But some of the inmates of the old age home were reluctant to it because they believed that the pest control might create health problems for them. IYO, therefore decided to provide ethical, safe and odourless pest control. They showed inmates of an old age home a pamphlet of the proposed pest control product, which promised easy, inexpensive and long-lasting pest control. The inmates happily agreed, and the pest control was carried out. It worked for a fortnight, but to their dismay, the effect started wearing off. IYO contacted the pest control company, which kept postponing its visit. After waiting for a month, IYO filed a case in the consumer court. The consumer court was satisfied about the genuineness of the complaint and issued necessary directions to the pest control company. State any six directions that might have been issued by the court. (6 marks)
Answer sheet for Business Studies test series

The End

Wednesday, December 3, 2025

CBSE Class 12th Business Studies Question Paper - TS4 (5 Question Papers)

Free Business Studies - Class 12th (CBSE) - TS4 (5 Question Papers Included) - Planning

Planning is the foremost function of management. This seems easy!
Now, let's solve every question revolving around this topic with our study material.
We have prepared a list of five question papers for you to score well in your CBSE class 12th board exams.
Here are the quick details:
  • Class: XII
  • Subject: BUSINESS STUDIES
  • Time: 45 minutes
  • Maximum Marks: 20
  • Chapter Name: Planning
  • Marking Scheme: One, three, four, and six marks
Below are the links to the tests:

Test 1

  • Time: 45 minutes
  • Maximum Marks: 20
Q1. 'Anchu Constructions', a construction company, decided to strictly implement 'No Helmet, No Entry' and put the following sign at their construction sites:
A sign needs to be identified by CBSE Class 12th students

Identify the type of plan indicated by the above sign:
  1. Policy
  2. Rule
  3. Method
  4. Programme
Q2.
Assertion (A): Planning does not guarantee success.
Reason (R): Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before, it will work again. (1 mark)
  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, and Reason (R) is false.
  4. Assertion (A) is false, and Reason (R) is true.                    
Q3. A Sanitary Pad manufacturing company wants to become a market leader. For this purpose, the manager follows an activity with certain logical steps. The first step suggested by him is to increase profits by at least 30% in the next quarter. What will be the last step of the activity being followed by the manager? (1 mark)
  1. Follow-up action
  2. Identifying alternative courses of action
  3. Setting objectives
  4. Evaluating alternative courses of action
Q4. Yamraj, a Shipping company, has been successfully carrying out its shipping business for the past five years. Last year, it rolled out a new shipping initiative during the holiday season, with the promise to deliver all packages by a particular time before the holidays. The company had an objective of increasing its profit at a consistent rate. The unexpected high demand hassled the workers and the delivery team, causing a delay in the delivery of a large number of packages. The company did not recognise the logistical difficulties in training new staff, in order to meet its delivery schedules as promised. The complacency of the company to think that a consistent rate of profit could be maintained led to its failure. Identify the limitations of planning discussed above. (1 mark)
  1. Planning is a time-consuming process
  2. Planning does not guarantee success
  3. Planning involves huge costs
  4. Planning reduces creativity
Q5. "Failing to plan is planning to fail." Comment. (3 marks)                                                                                                          
Q6.  Rehu Auto Ltd. manufactures different types of commercial vehicles. Their sales were rupees two hundred crores in the previous year. The company decided to increase sales by 20% during the current year. It conducted internal as well as external audits for the same. Through internal audit, they analysed the strengths and weaknesses of the business across all departments. The external audit focused on the opportunities and threats in the constantly changing business environment. Thus, a comprehensive plan was prepared, taking into consideration the business environment and the necessary resources were allocated to achieve the target. The company directed its offices throughout the country to follow the plan. The company's commitment to developing effective plans to achieve a consistent increase in sales has ensured its continual growth over the past one decade. Identify and explain the two types of plans discussed above. (3 marks)                                                                                            
Q7. Manasvi Ltd. holds an Annual Management Programme every year in the month of March, in which the top managerial personnel formulate plans for the next year by analysing and predicting the future to meet future events effectively. As they are responsible for providing direction to the organisation, facts are thoroughly checked through scientific calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and sound judgment, it is mainly done by the top management. Usually rest of the members just implement the plans. Middle-level managers are neither allowed to deviate from the plans nor permitted to act on their own. The top management ensures that the expenses incurred in formulating the plans justify the benefits derived from them. State two limitations and two features of planning discussed above. (4 marks)
Q8. Explain the following statements related to the planning function of management: (6 marks)
  1. Planning is closely connected with creativity and innovation.
  2. Planning will be a futile exercise if it is not acted upon or implemented.
  3. Planning is the most challenging activity for the management
  4. Planning is a prerequisite for controlling.
  5. Planning is purposeful.
  6. Planning is not an exclusive function of top management.

The End

Answers For TEST 1

An illustration where answers are described for CBSE class 12th students

The End

Monday, December 1, 2025

CBSE Class 12th Business Studies Question Paper - TS8 (5 Question Papers)

Free Business Studies - Class 12th (CBSE) - TS8 (5 Question Papers Included) - Controlling

Controlling is an important function of management. This seems easy! Correct?
Now, let's revise each concept of controlling with our five question papers to score well in your CBSE class 12th board exams.
Here are the quick details:
  • Class: XII
  • Subject: BUSINESS STUDIES
  • Time: 45 minutes
  • Maximum Marks: 20
  • Chapter Name: Controlling
  • Marking Scheme: One, three, four, and six marks
Below are the links to the tests:

Test 1

  • Time: 45 minutes
  • Maximum Marks: 20

Q1. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those given below: (1 mark)

  • ASSERTION (A): Controlling can prevent deviations.
  • REASON (R): Controlling helps in minimising deviations by taking actions and decisions that reduce their recurrence.

  1. Both Assertion (A) and Reason (R) are true, and Reason is the correct explanation of Assertion.
  2. Both Assertion(A) and Reason (R) are true, and Reason is not the correct explanation of Assertion.
  3. Assertion (A) is true, Reason (R) is false.
  4. Assertion (A) is false, Reason(R) is true.

Q2. 

  • Statement I: Planning means ensuring that activities in an organisation are performed as per the plans.
  • Statement II: Managerial Control implies the measurement of accomplishment against the standard and the correction of deviations to assure attainment of objectives according to plans.

  1. Statement I is correct and Statement II is not correct.
  2. Statement II is correct and Statement I is not correct.
  3. Both Statements I and II are correct.
  4. Both Statements I and II are not correct. (1 mark)

Q3Sojo, a company providing financial services to its clients, is keeping a close check on the employees' activities by using biometric and retina scanning as modes of accessing the office premises, in order to ensure greater security of information in the organisation. 

Choose the correct point of significance of controlling highlighted above: (1 mark)

  1. Controlling helps in the achievement of organisational goals
  2. Controlling helps in ensuring order and discipline
  3. Controlling helps in improving employee motivation
  4. Controlling enables optimum utilisation of resources

Q4An important project at RamKaran consultants is running behind schedule by a month. This has upset their clients and might affect the reputation of the company in the long run. No managerial action like assigning more workers, equipment or giving overtime, has been able to solve the problem. What managerial action may now be taken by the company to avoid such a situation from arising in the future? (1 mark)

  1. Revise the schedule
  2. Assigning additional workers and equipment to the project
  3. Get permission for further overtime work
  4. Both B & C

Q5Mr. Sparsh Dhamija had been heading the production department of Writewell Products Ltd., a firm manufacturing stationery items. The firm secured an export order that had to be completed on a priority basis, and production targets were defined for all the employees. One of the workers, Mr Bhanu Prasad, fell short of his daily production target by 10 units for two consecutive days. Mr. Sparsh approached Ms Vasundhara, the CEO of the Company, to file a complaint against Mr Bhanu Prasad and requested her to terminate his services. Explain the principle of management control that Ms Vasundhara should consider while making her decision. (3 marks)

Q6. Explain Critical Point Control concept.  (3 marks)

Q7Tullu Ltd. set up a manufacturing unit at Bhiwadi in Himachal Pradesh to manufacture electric geysers and supply them to dealers all over the country. Their production target was 500 geysers per week. It was decided by the management that variation in production up to 10 units would be acceptable. At the end of the first week, the production was 450 geysers. The next week, production increased to 470 geysers. A week later, production was 460 geysers. On investigation, it was found out that the fluctuation in production was due to an irregular supply of electricity. 

  1. The above para discusses some of the steps of one of the functions of management. Explain the steps. 
  2. Also, state the step(s) not discussed in the above para. (4 marks)

Q8Anant Lal is a cloth merchant in Karol Bagh. His grandsons are requesting him to let them diversify the business into bridal wear. Anant Lal has agreed, but on the condition that they will follow the function of management he has always followed, which helps an organisation to keep a track of the progress of activities and ensures that the activities conform to the standards set in advance so that the organisational goals are achieved. Name the function of management which Anant Lal is asking his grandsons to follow. List any five reasons why it is considered an indispensable function of management. (6 marks)

The End

Test 2

  • Time: 45 minutes
  • Maximum Marks: 20
Q1Aditya owns a factory manufacturing motor spare parts. He planned a quarterly production of 500 units. In the first quarter, the workers achieved the target, but from the second quarter, the production dropped to 400-450 units. Aditya tried his best to motivate his workers, announced overtime for extra hours of work and provided them with all facilities that were required for better working conditions, but the workers could not achieve the target. He did not know which factor was demanding more managerial attention. From the following, identify which function of management will help Aditya in finding out the factors responsible for the non-achievement of targets: (1 Mark)
  1. Planning
  2. Organising
  3. Directing
  4. Controlling
Q2"Some deviation in performance can be expected in all activities. It is, therefore, important to determine the acceptable range of deviations. Also, deviations in key areas of business need to be attended to more urgently as compared to deviations in certain insignificant areas." Identify the principle/technique of managerial control highlighted above. (1 Mark)
  1. Management by Exception
  2. Critical Point Control
  3. Both (a) and (b)
  4. Budgetary control
Q3. 
  • Assertion (A): Planning and controlling are interdependent and interlinked. 
  • Reason (R): Planning provides the goals and objectives that the controlling function uses to measure performance. (1 Mark)
  1. Both A and R are true, but R is not the correct explanation of A.
  2. Both A and R are true, and R is the correct explanation of A.
  3. A is true, but R is false.
  4. A is false, but R is true.
Q4. 
  • Statement I: Controlling ensures that activities in an organization are performed as per the plans.
  • Statement II: The controlling function of a manager is a pervasive function. Choose the correct option from the options given below: (1 Mark)
  1. Statement I is true, and Statement II is false.
  2. Statement II is true and Statement I is false.
  3. Both Statements are true.
  4. Both Statements are false.
Q5Explain the concept of 'Controlling'. Is controlling the last function of management? Explain. (3 marks)
Q6One of the important steps of a function of management has been illustrated in the picture. Identify and explain the step briefly. (3 marks)
A man explaining management concepts

Q7Each Employee of 'Bhoomika Ltd.' should manufacture 10 tables per day as per the terms of employment. All the employees met the said target except a few who manufactured between 4 - 6 tables per day. On investigation, it was found that these employees wasted time in gossiping and sitting idle. The management took a decision to install Closed Circuit Television (CCTV's) in the factory for monitoring the activities of the employees. Identify by quoting lines the steps in the controlling function discussed above and explain these steps. (4 marks)
Q8Vikas was the Chief Operating Officer of 'Yalet Ltd.', a company providing advanced software solutions to the Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But for the last one year, they have realised that though the business is getting big orders which are being fulfilled in time, even then the revenues have kept on decreasing. Vikas was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vikas appointed a cyber security expert who monitored the company's processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimising dishonest behaviour on the part of the employees. Explain the importance of the function of management highlighted in the above paragraph by giving any six points. (6 marks)

The End

Test 3

  • Time: 45 minutes
  • Maximum Marks: 20
Q1As the Production Manager of a large company, which method will be followed for Mr Gopesh to gauge the performance of his department? (1 mark)
  1. Sample checking of certain random pieces for quality
  2. Checking each piece for quality specifications
  3. Calculation of certain financial ratios
  4. Checking an increase in market share
Q2.
  • Assertion: Controlling helps in making efficient use of resources. (1 mark)
  • Reason: An efficient control system keeps a check on the changes taking place in the organisation and in the environment and helps to review and revise the standards in light of changes.
  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, and Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, but Reason (R) is False.
  4. Assertion (A) is False, but Reason (R) is True.
Q3_______ checks whether decisions have been translated into a desired action. (1 mark)
  1. Directing
  2. Controlling
  3. Organising
  4. Coordination
Q4When the deviations go beyond the acceptable range, especially in the importance area, it demands immediate managerial attention so that deviations do not occur again and standards are accomplished. (1 mark)
  1. Management by exception
  2. Critical point control
  3. Both (a) and (b)
  4. Analysing deviations
Q5"An attempt to control everything results in controlling nothing." Explain with an example. (3 marks)
Q6"Planning is looking ahead while controlling is looking back." Comment. (3 marks)
Q7Airtech Ltd. is manufacturing mobile phones both for the domestic Indian market and for export.
It had enjoyed a substantial market share and also had a loyal customer following. But lately it has been experiencing problems because its targets have not been met with regard to sales and customer satisfaction.
Also, the mobile market in India has grown tremendously, and new players have come with better technology and pricing.
This is causing problems for the company. It is planning to revamp its controlling system and take other steps necessary to rectify the problems it is facing. (4 marks)
  1. Suggest any two benefits the company will derive from a good control system.
  2. Give the steps that the company should follow to remove the problems it is facing. 
Q8A company was manufacturing 'LED bulbs' which were in great demand. It was found that the target of producing 300 bulbs a day was not met by the employees.
On analysis, it was found that the workers were not at fault. Due to electricity failure and a shortage of workers, the company was not able to achieve the set targets, and alternative arrangements were needed.
To meet the increased demand, the company assessed that approximately 88 additional workers were required, out of which 8 would work as heads of different departments, and 10 would work as subordinates under each head.
The required qualifications and job specifications were also enlisted. It was also decided that necessary relaxation should be given to encourage women, persons from backward and rural areas and persons with special abilities to assume responsible positions in the organisation.
All efforts were made to match the ability of the applicants with the nature of the work.
  1. Identify the functions of management discussed above.
  2. State the two steps in the process of each function discussed in the above paragraph. (6 marks)

The End

Test 4

  • Time: 45 minutes
  • Maximum Marks: 20
Q1
  • Assertion (A): Controlling is a goal-oriented function.
  • Reason (R): Controlling ensures that an organisation's resources are being used effectively and efficiently for the achievement of predetermined goals.
  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A). 
  2. (b) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, and Reason (R) is false.
  4. Assertion (A) is false, and Reason (R) is true. (1 mark)
Q2. 
  • Statement I: Planning based on facts makes controlling easier and effective. 
  • Statement II: Controlling improves future planning by providing information derived from past experience. (1 mark)
  1. Statement I is correct, and Statement II is not correct.
  2. Statement II is correct, and Statement I is not correct.
  3. Both Statements I and II are correct.
  4. Both Statements I and II are not correct.
Q3Radha started a home-cooked food delivery Dabba service. Her mother, who is a great cook, decided to help her. 
They relied on friends and family for orders and then on word of mouth. 
As a step in the process of ensuring that activities are performed as per her plan of supplying healthy, good quality, reasonable food and earning profit, she decided to keep both qualitative and quantitative benchmarks towards which she would strive to work. 
A function of management is being discussed above. An important characteristic of this function of management is: (1 mark)
  1. It is the first function of management
  2. It is the last function of management
  3. It is both forward-looking and backwards-looking
  4. It is required only in business organisations
Q4Ajit Nene, the owner of a newly established food delivery outlet, 'Food and Snacks' in Maharashtra, instructed the Human Resource Manager of the firm to establish qualitative benchmarks of performance, as he wanted to assess the motivation, skill and satisfaction level of his employees.
The sales manager was asked to set quantitative benchmarks of performance in terms of volume of sales made on a daily basis.
Identify the step performed by Ajit Nene in the process of controlling. (1 mark)
  1. Measurement of performance
  2. Analysing deviations
  3. Setting performance standards
  4. Taking corrective action
Q5"A control technique should check each and every activity in an organisation." Do you agree? Give reasons. (3 marks)
Q6A Departure Control System (DCS) automates processing an airline's airport management operations, which includes managing the information required for airport check-in, printing boarding passes, baggage acceptance, boarding load control and aircraft checks.
Today, almost 98% of DCS manage e-ticket using interface from a number of devices, including check-in kiosks, online check-in, mobile boarding pass and baggage handling.
DCS are able to identify and capture updated reservations from an airline computer reservation system for passengers called the passenger name record (PNR). A DCS is used to update reservations typically as checked-in, boarded, and flown or another status.
Additionally and increasingly, a DCS or some city fare sectors may also interface with immigration control for visa, immigration and passenger no-fly watch list. Identify and state the function of management highlighted above.
Also, explain how this function is a pervasive function. (3 marks)
Q7Describe briefly the relationship between controlling and planning. (4 marks)
Q8Rudrakshi Ltd. is engaged in manufacturing high-end luxury pens. 
The target production is 700 units daily. The company had been successfully attaining this target until three months before. 
Over the last few months, it has been observed that daily productions vary between 600-650 units. (6 marks)
  1. Identify the function of management, which has been highlighted in the above context.
  2. Discuss the steps involved in the process of the function identified above. 

The End

Test 5

  • Time: 45 minutes
  • Maximum Marks: 20
Q.1
  • Assertion (A): The controlling function of a manager is a pervasive function. (1 mark)
  • Reason (R): Controlling is as much required in an educational institution, military, hospital, and a club as in any business organisation.
  1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
  2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
  3. Assertion (A) is true, and Reason (R) is false.
  4. Assertion (A) is false, and Reason (R) is true.
Q.2
  • Statement I: At the time of setting standards, a manager should try to set standards in precise quantitative terms, as this would make their comparison with actual performance much easier.
  • Statement II: Standards set in terms of cost to be incurred, revenue to be earned, product units to be produced and sold, and time to be spent in performing a task, all represent qualitative standards.
  1. Statement I is correct, and Statement II is not correct.
  2. Statement II is correct and Statement I is not correct.
  3. Both Statements I and II are correct.
  4. Both Statements I and II are not correct.
Q.3 Choose the incorrect statement about the controlling function of management. (1 mark)
  1. Controlling is both backward and forward looking
  2. Controlling is prescriptive, whereas planning is evaluative
  3. Controlling presupposes the existence of certain standards
  4. Controlling is a pervasive function of management
Q.4 Keya Ltd. is a large organisation manufacturing a popular brand of desi ghee and supplying it to various states of India. 
They manufacture 10,000 litres of desi ghee every day and pack it in cartons of 250 ml, 500 ml and 1 litre sizes. 
The production manager ensures that one out of every ten cartons of each size is checked for quality control every day.
The step of the controlling process discussed in the above paragraph is: (1 mark)
  1. Setting performance standards
  2. Measurement of actual performance
  3. Comparison of actual performance with standards
  4. Analysing deviations
Q.5 Paul, the Manager of a manufacturing unit in Noida, employed various strategies to address the production shortfall of 850 balls out of the 1,000-ball target.
Furthermore, what crucial initial steps might he have overlooked during the process of analysing deviations and implementing corrective measures? (3 marks)
Q.6 How can a regional manager of a retail chain enhance operational efficiency and maximise profits by analysing deviations in sales performance among different stores?
Some outlets consistently exceed sales targets, while others struggle to meet their goals.
To address these disparities, the regional manager aims to implement two management techniques for analysing deviations.
Explore these two techniques in detail. (3 marks)
Q.7 Priya is a regional manager of XYZ Ltd. She is a hardworking employee and is trying to reduce the wastage of resources in her company.
She has set standards for the performance of different activities and is ensuring that targets are met according to these standards with minimal wastage of resources.
She has set up CCTV cameras, which help her to keep a close check on the activities of the subordinates and know how the employees are performing.
She also rewards the employees with a bonus when these standards are met.
She is trying her best to ensure a good performance of her team this year through the application of an important function of management.
Explain any four benefits of the function of management highlighted above. (4 marks)
Q.8 Each employee of 'Bhoomika Ltd.' should manufacture 10 tables per day as per the terms of employment.
All the employees met the said target except a few who manufactured between 4–6 tables per day.
The management has made a decision to install Closed Circuit Television (CCTVs) in the factory for monitoring the activities of the employees. (6 marks)
  1. Identify the managerial function discussed above.
  2. Explain the steps in the process of the function identified in (a) above.

The End


Go through the entire revision notes of CBSE Chapter 8: Controlling by clicking here.