CBSE Class 12th Business Studies Revision Notes - N7

Free Business Studies - Class 12th (CBSE) - Revision Notes - N7 - Directing

Directing 

Directing function of management is concerned with instructing, guiding, inspiring, coaching, leading and motivating the employees in the organization so that their efforts result in the achievement of organizational goals.

  

Directing is telling people what to do and seeing that they do it to the best of their ability.

Features / Characteristics of Directing   ( C.L.I.P/F )

1. Directing is a Continuous Function
2. Directing takes place at every Level of Management 
3. Directing Initiates Actions
4. Directing is Performance Oriented 
5. Directing Flows from Top to Bottom

Directing is a Continuous Function

Directing is a continuous process. A manager cannot just rest after issuing orders and instructions. He has to continuously guide, supervise and motivate his subordinates. He must continuously take steps to make sure that orders and instructions are carried out properly.

Directing takes place at every Level of Management 

Directing is a pervasive function as it is performed by managers at all levels and in all locations. The directing takes place wherever superior-subordinate relation exists. Every manager has to supervise, guide, motivate and communicate with his subordinate to get things done.

Directing Initiates Actions 

Other functions prepare a base or setting of action, i.e., how action has to be carried on , the directing initiate or start action. By giving directions or instructions the managers get the work started in the organization. 

Directing is Performance Oriented

Directing is a performance-oriented function. The main motive of directing is bringing efficiency in performance. Directing function direct the performance of individuals towards the achievement of organizational goal.  

Directing Flows from Top to Bottom

Directing is first initiated at the top level and flows to the bottom through organizational hierarchy.  Every manager can direct his immediate subordinate and take directions from immediate boss.  Directing starts from the top level and flows to lower level.   

Importance of Directing Function  ( Directing is heart of management process ) 

1) To Initiate Action : The employees in the organization start working only when they get instructions and directions from their superiors. For example : If a supervisor guides his subordinates and clarifies their doubts while performing a task, it will help the worker to achieve the work targets given to him. 

2) To Integrate Employees' Efforts : Directing integrates employees' efforts in the organization in such a way that every individual effort contributes to organizational performance. Thus, it ensures that the individuals work for organizational goals. For example : A manager with good leadership abilities will be in a position to convince the employees working under him that individual efforts and team effort will lead to the achievement of organizational goals.  

3) Means of Motivation / Guides Employees : Directing function does not mean giving orders only but through directions and instructions the superiors try to motivate the employees to perform to their best ability. Directing guides employees to fully realize their potential and capabilities by motivating and providing effective leadership. A good leader can always identify the potential of his employees and motivate them to extract work up to their full potential. 

4) To Facilitate Change : Directing facilitates the introduction of needed changes in the organization. Generally, people have a tendency to resist changes in the organization. Directing through motivation, communication and leadership helps to reduce such resistance and develop the required cooperation in introducing changes in the organization. For example : If a manager wants to introduce a new system of accounting, there may be initial resistance from the accounting staff. But, if manager explains the purpose, provides training and motivates them with additional rewards, the employees may accept change and cooperate with the manager.

 

5) Bring Stability and Balance in the Organization : Effective directing helps to bring stability and balance in the organization since it fosters cooperation and commitment among the people. It helps to achieve balance among various groups, activities and the departments. 

Elements of Directing

1. Supervision 

Supervision means instructing, guiding, monitoring and observing the employees while they are performing jobs in the organization. It is the process of guiding the efforts of employees and other resources to accomplish the desired objectives. It means overseeing what is being done by subordinates and giving instructions to ensure the optimum utilization of resources and achievement of work targets. It is a managerial position in the organization hierarchy at the operative level i.e., immediately above the worker.

2. Motivation (Will to Work) 

 Motivation can be defined as stimulating, inspiring and inducing employees to perform to their best capacity. Motivation is a psychological term which means it cannot be forced on employees. It comes automatically from inside the employees as it is a willingness to do work.  

3. Communication

Communication can be defined as the transmission or exchange of ideas, views, messages, information, facts, feelings etc. between two or more persons by different means to create a common understanding. Communication is a two-way process as it begins with the sender and ends when the feedback comes from the receiver to the sender. A minimum of two parties are involved in the process of communication, i.e., the sender and the receiver.

4. Leadership

Leadership is the art or process of influencing the behavior of people so that they will strive willingly and enthusiastically towards the achievement of group goals.   

Communication

Steps in the Process of Communication 

The communication process begins when the sender thinks of an idea or message to be conveyed to the other person. 

Sender : Sender is a person who conveys the message. The communication process begins immediately when the idea comes into the mind of the sender. 

Message : The content of ideas or message suggestions that the sender wants to share with the receiver is called a message. 

Encoding : The receiver cannot read the mind of the sender. So, the receiver converted the idea into language or other communication symbols such as pictures, gestures, etc. This is known as encoding. 

Media : It is the way or means through which an encoded message is transmitted to the receiver. The common ways of transmission are phone, letter, internet, etc. 

Decoding : It refers to converting the encoded message into language and understanding the message.

Receiver : A receiver is a person who receives the communication and understands the message.

Feedback : After understanding the message the receiver sends his response to that idea or message to the sender. When the response reaches the sender then only the communication process ends. 

 

Noise : Noise means some obstruction or hindrance to communication. This hindrance may be caused to the sender, message or receiver. 

Some examples of noise are : 

a) A poor telephone connection. 

b) An inattentive receiver. 

c) Faulty decoding (attaching wrong meaning to message).

Forms of Organizational Communication

Formal Communication 

Formal communication refers to official communication taking place in the organization. The exchange of views or messages or information related to official matters such as the assignment of tasks, fixing of responsibilities, setting up of targets, objectives, etc. is known as formal communication. Under formal communication, verbal or oral channels are avoided and communication generally takes place in written form such as the issue of notice, letter, memo, and document.    

Types of Formal Communication 

Downward Communication  - The flow of information from the top level or the superiors to the lower level or subordinates is known as downward communication. It includes passing instructions from superiors to subordinates related to the organization.

Upward Communication -  When subordinates pass any information to superiors then it is known as upward communication. Upward communication generally consists of work performance, opinions, grievances and problems with the employees.

Horizontal Communication - The communication between two or more persons working at the same level of authority. Generally different departmental heads discuss the policy of their department with each other.

Diagonal Communication - Diagonal communication is a flow of information between the persons working in different departments and holding different levels of authority.  For example : The salesman may request the production manager to modify the product design according to the requirement of the customer.

Common Networks of Formal Communication

Wheel Pattern  

• It is the most centralized way of communication. 
• Under this pattern, all the information flows from one person only who is generally the leader of the group. 
• The other members have no communication link with each other. 
• It is the common pattern of centralised organisation.

Chain Pattern

• Under the chain pattern, each person gets the information from one person that is their immediate boss and passes the information to one person who is their immediate subordinate. 
• So, every member is attached to one person.  

Circular Pattern

• In the circle pattern, each person communicates with two more people in a group. 
• The person may receive or give information to two more people in the organization. 
• Under this type of organization, every member participates equally in the flow of information which is why it is more decentralised.   

All Sources (Channel) Pattern / Free Flow 

•  Under this pattern, there is no fixed pattern of communication. 
• All the members in the organization are linked to each other and information can flow from anywhere in the organization. 
• It is the most decentralised organisation. 

Inverted V

• Under this network, a subordinate is allowed to communicate with his immediate superior and also with the superior of his superior. 
• However, in the latter case, only limited communication can take place. 

CBSE Class 11th Business Studies Test - t4a

Free Business Studies - Class 11th (CBSE) - Test - t4a - Business Services

Time: 1 hour                                                                                                                               Marks: 40

Q1. Which Banking Service permits withdrawal of money more than the balance in the account?

1. Saving Account
2. Barker’s Cheque
3. Bank Overdraft
4. Fixed Deposit Account

Q2. Insurable interest must exist at the time of loss, but may be absent at the time of taking the policy, only in case of

1. Life Insurance
2. Fire Insurance
3. Marine Insurance
4. All of the above

Q3. "It is the duty of the insured to take preventive measures to minimize the loss of the property." Identify the principle of insurance in the given picture.

1. Mitigation of loss
2. Subrogation
3. Proximate cause
4. Indemnity

Q4. Without disclosing that he is suffering from TB, Mr. A gets himself insured against death for ₹10,00,000. He lives for another 3-4 years and dies due to TB. The Insurance company came to know about Mr. A’s illness only after his death. Now, under these circumstances, the insurance company is not liable to pay anything to the dependents of Mr. A, as the contract between the insurance company and Mr. A is void.

Identify the principle of insurance to which the above example relates:

1. Utmost Good Faith
2. Insurable Interest
3. Indemnity
4. Subrogation

Q5. The charge by the insurer on account of providing services is called _____________.

1. Profit
2. Dividend
3. Premium
4. Installment

Q6. The person or firm who gets compensation through the insurance policy is called

1. Insured
2. Insurer
3. Premium
4. None of these

Q7. Mr. Rohan is the owner of a factory engaged in manufacturing crackers. He insured his factory against fire. While taking the insurance policy, he did not disclose the product being manufactured, as this would have led to paying a much higher premium. Once the factory was severely damaged by fire, but the Insurance Company refused to accept his claim. He filed a case against the company. The court favoured the Insurance Company on the ground that Mr. Rohan had not revealed the fact related to the type of product being manufactured. So, the contract of insurance is voidable at the discretion of the insurer.

Which principle of insurance has been violated by Mr. Rohan?

1. Principle of Indemnity
2. Principle of Utmost Good Faith
3. Principle of Proximate Cause
4. All of these

Q8. Banker's cheque is also known as ____________.

1. Bank Draft
2. Pay Order
3. EFT
4. USSD

Q9. The purpose of insurance is to bring the insured to the same financial position as he was before the loss. This is related to

1. Principle of indemnity
2. Principle of causa proxima
3. Principle of utmost good faith
4. Principle of insurable interest

Q10. Which principle of insurance lays down that the cause for the loss must be related to the subject matter of the insurance contract?

1. Principle of Utmost Good Faith
2. Principle of Indemnity
3. Principle of Causa Proxima
4. Principle of Mitigation of Loss

Q11. Write the difference between Insurance and Assurance.

Q12. Why is life insurance considered a contract of assurance?

Q13. Sikha is running a general store. The store was insured against natural disasters like flood, earthquake, and theft with Hindustan General Insurance Company for the amount of ₹50 lakh. Heavy rain in the city caused massive floods, and the store was looted by people, which was caught on CCTV. She filed the store insurance claim with the insurance company for the loss of ₹13 lakh for the material and furniture spoiled, and also ₹25 lakh for food and stock due to flood damage. The insurance company refused to accept the claim for ₹25 lakh as the flood damage occurred due to a natural disaster. Sikha argued that she is paying a premium only for ₹50 lakh, and the CCTV footage accepted the claim of ₹13 lakh. Sikha argued that the fundamental principle of insurance should be to pay the full claim of ₹43 lakh.

What is the principle of insurance to which the above example relates?

Q14. Mr. Ramanan hides a particular disease of his health from the insurance company. While getting his life insurance done, he was not truthful about his disease. Explain the concept of insurance to which the above example is related.

Q15. Two friends Mr. Narayan Mishra and Mr. Govind Rai got different types of Insurance policies done. Mr. Narayan Mishra got his house insured for ₹50,00,000 by ‘New India Insurance Company’. The Company thought that there was a great risk involved in it. It got the insurance for ₹30,00,000 out of it done by ‘National Insurance Company’. After some days there was an Earthquake and Mr. Mishra’s house was completely destroyed. ‘New India Insurance Company’ made the full payment of ₹50,00,000 to Mr. Mishra. Now ‘New India Insurance Company’ gets the payment of ₹30,00,000 from ‘National Insurance Company’. In this way, the first company (New India Insurance Company) got its risks reduced.
The other friend, Mr. Govind Rai got his life insured by ‘Reliance Life Insurance Company Ltd.’, and Life Insurance Corporation of India for ₹10,000 and ₹5,00,000 respectively. He survived up to the end of the fixed period.

1. Identify the two types of insurance contracts entered into by both the friends in the above paragraph.
2. Identify and explain the type of insurance is indicated in the insurance contract done by Mr. Narayan Mishra.
3. Identify and explain the type of insurance contract is indicated in Mr. Govind Rai’s insurance contract in which two insurance companies are involved?

Q16. Chirag got his pen manufacturing factory insured against fire. His factory caught fire and some of his employees took advantages of the situation and stole stock of pens. Chirag made a claim of damages caused by fire including loss due to pens being stolen. The insurance company agreed to pay damages caused by fire only. It refused to pay for loss caused by stolen pens on the ground that loss by theft was a remote cause and not proximate one.

1. What does principle of Cause Proxima State?
2. Give the names and nature of two causes resulting in losses for Mr. Chirag.
3. Is Mr. Chirag right in claiming loss due to stole pens?

Q17. Write a detailed note on various facilities offered by Indian Postal Department.

The End

CBSE Class 11th Business Studies Worksheets - w10

Free Business Studies - Class 11th (CBSE) - Worksheet - w10 - International Trade

Before proceeding to the main content, below are the main details:

• Subject: Business Studies
• Class: 11th (CBSE)
• Chapter Name: International Trade
• Marking Scheme: 1 Marks each

Worksheet for CBSE Class 11th

Q1. If the importer is unable to pay the import duty on goods, then the goods are kept: (1 Mark)

1. in the clock room
2. in the bonded warehouse
3. in the possession of the ship owner
4. None of these

Q2. Which of the following provides subsidies and benefits to exporters? (1 Mark)

1. IEC Number
2. RCMC
3. Certificate of Origin
4. None of the above

Q3. The exporter has to open a bank account in any bank authorised by __________ to deal in foreign exchange. (1 Mark)

1. State Bank of India
2. Reserve Bank of India
3. Central Government
4. State Government

Q4. Out of the following documents, which one is used for payment in case of export trade? (1 Mark)

1. Letter of Credit
2. Bill of Lading
3. Both (a) and (b)
4. All of these

Q5. Letter of Credit is a guarantee issued by: (1 Mark)

1. Exporter’s Bank
2. Importer
3. Importer’s Bank
4. Exporter

Q6. A proforma invoice is issued by the: (1 Mark)

1. importer to the exporter
2. exporter to the importer
3. exporter to the shipping company
4. shipping company to the importer.

Q7. WTO was established on: (1 Mark)

1. 1st July, 1995
2. 1st January, 1995
3. 1st April, 1995
4. None of the above.

Q8. Which of the following is not an objective of import trade? (1 Mark)

1. To overcome famine
2. To improve the standard of living
3. To earn foreign exchange
4. To speed up industrialisation

Q9. Who issues a mate's receipt on receiving the goods in export trade? (1 Mark)

1. Captain of the Ship
2. Dock Officer
3. Importer
4. Exporter

Q10. A shipping bill is prepared by the exporter to: (1 Mark)

1. reserve space on the ship
2. to get the cargo physically moved into the port area
3. obtain the customs clearance
4. to get the port dues cleared.

Q11. Pre-shipment Inspection is not compulsory for: (1 Mark)

1. Export houses
2. 100% Export Oriented Units
3. Star Trading Houses
4. All of these

Q12. A Bill of Entry is prepared by the: (1 Mark)

1. Exporter for getting the custom clearance
2. Superintendent at the port
3. Importer for getting the custom clearance
4. None of the above

Q13. If a bill of exchange of a further date is to be accepted, the exporter writes __________ on the bill. (1 Mark)

1. D/P
2. D/A
3. LoC
4. Any of the above

Q14. In India, all foreign exchange transactions are regulated by: (1 Mark)

1. Directorate General of Foreign Trade
2. Reserve Bank of India
3. Export Council of India
4. None of the above

Q15. Under which regulations does the foreign exchange earned from foreign trade have to be submitted to the RBI? (1 Mark)

1. Export and Import Control Act
2. MRTP Act
3. Foreign Exchange Control Act
4. None of these

Q16. Arun, a clearing agent is not in a position to supply correct information about the goods imported in the bill of entry, he has to prepare a statement called: (1 Mark)

1. Bill of Sight
2. Shipping Order
3. Mate's Receipt
4. Bill of Lading

Q17. Paras Manek Ltd. has received an enquiry regarding the goods and trade. Paras Manek Ltd. has replied to it in the form of a quotation. Finding it favourable, Trudy Ltd. has placed an order containing description of goods, price and other instructions, etc. But before exporting the goods it has to fulfil certain legal formalities like procuring export license and preparing the documents related to goods, shipment, and payment. Paras Manek is a successful businessman who is engaged in manufacturing auto spare parts. The products manufactured by his business enterprise Paras Manek Ltd. are sold not only in India, but also exported to various countries such as Singapore, Switzerland, China, North Korea, etc. Trudy Ltd., a Russian company wants to "Paras Manek Ltd. has replied to it in the form of a quotation." Identify the document stated here. (1 Mark)

1. Proforma Invoice
2. Indent
3. Letter of Credit
4. Enquiry

Q18. Jaipur Handicraft House has received a grand order for handmade products from a German company. The exporter has obtained the pre-shipment inspection report under the Export Quality Control & Inspection Act, 1963 & also got the Excise clearance certificate from the authorities. Identify the first step of the given procedure. (1 Mark)

1. Reservation of shipping space
2. Packing & Forwarding
3. Obtaining certificate of origin
4. Insurance of goods

Q19. It was decided in the 'Bretton Woods Conference' to set up International Trade Organization (ITO) to promote and facilitate international trade among the member countries. The idea could not succeed. The participants of the conference made some arrangements known as GATT and at last they were able to form an organization on the same proposal of ITO. Name the organization so formed. (1 Mark)

1. ILO
2. WORLD BANK
3. WTO
4. None of these

Q20. Krish wants to export garments to Mr. David has asked for an enquiry to seek information about availability of goods, price, quality and terms and conditions for export of goods. In response to the enquiry, Krish sends a reply in the form of Proforma Invoice. Mr. David found the price and terms and conditions acceptable. So, he placed the order for goods. After verifying the creditworthiness of Mr. David, Krish obtains an export license and arranges the pre-shipment finance. On the basis of given information, state the next four steps to be followed by Krish related to the procedure of export trade. The next steps to be followed by Krish in the export trade are: (1 Mark)

1. Obtaining Certificate of Origin
2. Production or procurement of goods
3. Excise Clearance
4. Pre-shipment inspection

The End

See also:

• Worksheet for Social Responsibilities of Business and Business Ethics
• Worksheet for Business Ethics
• Worksheet for International Trade
• Business Studies Questions paper 1 for class 11th
• Worksheet for Sources of Business Finance

CBSE Class 12th Business Studies Sample Paper - SP4

Free Business Studies - Class 12th (CBSE) - Sample Paper - SP4

Before proceeding to the sample paper, below are the quick details:

• Class: XII
• Subject: BUSINESS STUDIES
• Time: 3 Hours
• Maximum Marks: 80

CBSE Class 12th Business Studies Question Paper

General instructions:

• This question paper contains 34 questions.
• Marks are indicated against each question.
• Answers should be brief and to the point.
• Answers to the questions carrying 3 marks may be from 50 to 75 words.
• Answers to the questions carrying 4 marks may be about 150 words.
• Answers to the questions carrying 6 marks may be about 200 words.
• Attempt all parts of the questions together.

Q1. Many reputed business organisations keep a database of unsolicited applicants in their offices. Such job seekers can be a valuable source of manpower. A list of such job seekers can be prepared and screened to fill the vacancies as they arise. The source of recruitment discussed above is: (1 Mark)

1. Direct recruitment
2. Casual callers
3. Labour contractors
4. Campus recruitment

Q2. Identify the incorrect statement concerning marketing: (1 Mark)

1. Marketing is a social process.
2. The focus of the marketing activities is on customer needs.
3. Marketing is merely a post-production activity.
4. Marketing mix is a wider term than product mix.

Q3. The name and taste of Coca-Cola are known to almost every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and has a special seat in every gathering. The Coca-Cola Company has, on occasion, introduced other cola drinks under the Coke name. The most common of these is Diet Coke, along with others, including Caffeine-Free Coca-Cola, Diet Coke Caffeine Free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla, and the list goes on. It has capitalised on every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of the product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design, and creative advertising. Identify the feature of the Business Environment that the Coca-Cola Company managed to get in its favour: (1 Mark)

1. Complex
2. Specific and general forces
3. Futuristic
4. Mental exercise

Q4. Choose the statement that correctly highlights the political environment: (1 Mark)

1. Existing structure of the economy in terms of the relative role of private and public sectors.
2. Rise in the disposable income of people due to an increase in the gross domestic product of a country.
3. Legislation passed by the government authorities.
4. Attitude of the elected government representatives towards business.

Q5. ABC & Co. is conducting training to help its managers understand the principles of management. However, one employee does not want to attend it as he thinks that such training only benefits employees of large organisations and not small firms like his. Identify which of the following aspects of the nature of management principles the employee does not understand: (1 Mark)

1. Flexible
2. General guidelines
3. Universal applicability
4. Formed by practice and experimentation

Q6. Under the Consumer Protection Act, 2019, ________ can be approached to file a complaint by the legal heir of a deceased consumer if the compensation claimed is ₹ 3 crores. (1 Mark)

1. District Commission
2. State Commission
3. National Commission
4. All of these

Q7. Read the following statements: Assertion (A) and Reason (R). (1 Mark)

Choose the correct alternative from those given below:

• Assertion (A): The availability of leasing facilities may reduce the funds required to be invested in fixed assets, thereby reducing the fixed capital requirements.
• Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and avoids investing huge sums required to purchase it.

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, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Q8. While performing the organising function, jobs are allocated to the members of each department based on their skills and competencies. Identify the step in the organising function being discussed above: (1 Mark)

1. Identification and division of work
2. Departmentalisation
3. Assignment of duties
4. Establishment of reporting relationships

Q9. Some employees have been assigned the job of measuring the output in an objective and reliable way. They are applying different techniques for achieving this aim. Some of these are personal observation, sample checking, etc. They are also keeping the units of measurement the same as that of the units in the standards. Name the step of the Controlling process applicable in the above paragraph. (1 Mark)

1. Analysing deviations
2. Comparing actual performance with standards.
3. Establishing standards.
4. Measurement of actual performance

Q10. With the presence of women in the workforce, there has been a shift towards formal wear, increased demand for electronic gadgets and an increase in demand for cosmetics. The related dimension of business environment referred to in the above lines is: (1 Mark)

1. Technological environment
2. Social environment
3. Political environment
4. Economic environment

Q11. Which of the following are components of a product mix? (1 Mark)

1. Product labelling
2. Product Branding
3. Product advertising
4. Product packaging
5. Product Distribution Channels
6. Product Pricing

Choose the correct alternative from the following: (1 Mark)

1. (a), (b) and (d)
2. (c), (d) and (e)
3. (a), (c) and (e)
4. (b), (d) and (f)

Q12. 

Identify the element of the business environment stated by the above image. (1 Mark)

1. Economic
2. Environmental
3. Legal
4. Political

13. Match the Situations in Column I with the dimensions of Business Environment in Column II. (1 Mark)

Column I		Column II
(a)	The #MeToo movement has brought about a greater awareness of sexual harassment and gender inequality.	(1) Economic Environment
(b)	The government banned the sale of Chinese goods	(2) Legal Environment
(c)	Due to the launch of 5G mobile phones now come with a 5G spectrum	(3) Social Environment
(d)	The tax rates were increased from 5% to 10%	(4) Technological Environment

1. (a) (3), (b) (2), (c) (4), (d) (1)
2. (a) (4), (b) (3), (c) (2), (d) (1)
3. (a) (4), (b) (1), (c) (3), (d) (2)
4. (a) (3), (b) (4), (c) (2), (d) (1)

Q14. ‘Yamuna Ki Bhujia’ offered its products at competitive prices, even while offering customer services like gift packaging and free home delivery to become a household name. Choose the factor affecting the element of the marketing mix being discussed above. (1 Mark)

1. Marketing methods used
2. Objectives
3. Extent of competition in the market
4. None of these

Q15. Choose the correct statement that highlights the development of SEBI: (1 Mark)

1. Registration of players in the market.
2. Conducting research and publishing information
3. Levying fees
4. Prohibition of unfair trade practices

Q16.

• Statement I: The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold.
• Statement II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. (1 Mark)

1. Statement I is correct, and Statement II is wrong.
2. Statement II is correct and Statement I is wrong.
3. Both statements are correct.
4. Both statements are wrong.

Q17. From the following, identify the channel of distribution in which goods pass from the manufacturer to the retailers who, in turn, sell them to the final users. (1 Mark)

1. One-level channel
2. Two-level channels
3. Three-level channels
4. Zero-level channel

Q18. Feather Loom Ltd. has been doing a great job in the area of clothes designing. Within two years, the company has reached among the top performers in the textile industry. The company has made a lot of profit and decided to distribute its profits to the shareholders who stood with it during the hard times. Identify and explain the type of decisions mentioned in the above case. (1 Mark)

1. Investment decision
2. Budgeting decision
3. Dividend decision
4. Financing decision

Q19. 'Technogadget Inc.' is launching a new smartwatch designed to offer unique features. The company focuses on various strategies to ensure the product stands out in the competitive market. Which of the following functions of marketing is the company utilising to enhance the product's performance and give it a competitive edge? (1 Mark)

1. Marketing planning
2. Product designing and development
3. Promotion
4. Branding

Q20. For holding securities in an electronic form, the investor has to open a Demat account with an organisation called ______ (1 Mark)

1. Depository
2. Securities and Exchange Board of India
3. Stock Exchange
4. Mutual Fund

Q21. "The overall objective of SEBI is to protect the interests of investors and to promote the development of, and regulate the securities market." In light of the given statement, state any three objectives of SEBI. [3] 

OR

List any three tasks that Mr. Armstrong needs to do, as a production manager, in his firm, to carry out the plans laid down by the top managers. [3]

Q22. Unsparked Limited started as an electric wire manufacturer. After a few years, it also started manufacturing other electric appliances like electric bulbs, tube lights, and fans. The decision-making authority rested in the hands of a few top executives. Now, Unsparked Limited is planning to diversify its operations and start the manufacture of other household appliances like food processors, washing machines, and air fryers. For this, they want to change their organisational structure and introduce new levels of management, which will be responsible for different functions for each of these products. It also wants to empower its middle management with the decision-making authority to help in the smooth operations of the organisation.

1. Which organisational structure should Unsparked Limited adapt? Write any two advantages of that organisational structure. (1 Mark)
2. What should be done to empower the middle management with the decision-making authority? (2 Marks)

Q23. From the following information regarding Nanocom Ltd., which is in the business of manufacturing organic skincare products, calculate the Return on Investment (ROI) of the company. (Show working). (3 Marks)

• Earnings before Interest and Tax (EBIT): ₹25,00,000
• 12% Debentures: ₹10,00,000
• Equity Share Capital (₹ 10 each): ₹20,00,000
• Tax Rate: 35%

Q24. Dhaval Acharya, after acquiring a bachelor’s degree in Hotel Management, joined his father's chain of vegetarian restaurants in Ahmednagar. Being young and enterprising, he suggested his father add a new section of vegetarian bakery items, which required an investment of ₹ 5 crores. His father, Mr. Aariketh Acharya, suggested he decide with caution and understand everything comprehensively, as a bad decision may damage the financial fortune of the business.

1. Identify the decision suggested by Mr. Aariketh Acharya. (1 Mark)
2. State by giving any two reasons as to why he must have advised his son to decide with caution. (2 Marks)

Q25. Vinber Ltd. set up a manufacturing unit at Bhiwadi, 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 a variation in production of 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 that the fluctuation in production was due to an irregular supply of electricity.

1. Identify and explain the steps of the management function exercised in Vinber Ltd. (1 Mark)
2. Explain the step(s) of the management function that are not discussed in the paragraph. (3 Marks)

26. SEBI protects investors by ensuring market transparency, fairness, and preventing fraud and manipulation. Explain any four functions of SEBI that support this statement. (4 Marks)

OR

Understanding economic shifts and regulatory changes helps businesses like Apple adapt their strategies, manage risks, and seize new opportunities effectively. Explain any four features of the business environment. (4 Marks)

27. 'Filling vacancies for various job positions from within the organisation has many limitations.' State any four such limitations. (4 Marks)

OR

State any four features of an organisation that is an aggregate of interpersonal relationships and is formed without any conscious purpose. (4 Marks)

28. Mayank purchased a pack of chocolates from a renowned brand for his daughter from a shop in the nearby market. After consuming the chocolates, his daughter fell sick. He filed a case with the District Forum against the renowned brand. He lost the case because of a mistake that he could not provide proof of purchase. What responsibilities should be kept in mind by a consumer while purchasing, using and consuming goods and services, apart from avoiding the mistake committed by Mayank, to enable him/her to achieve the objective of consumer protection? Enumerate any four points. (4 Marks)

29. The workers of 'Vyam Ltd' are unable to work on new and hi-tech machines imported by the company to fulfil the increased demand. Therefore, the workers are seeking extra guidance from the supervisor. The supervisor is overburdened with frequent calls from workers.

1. Suggest how the supervisor, by increasing the skills and knowledge of workers, can make them handle their work independently. (1 Mark)
2. Also state any four benefits that the workers will derive from the decision of the supervisor. (3 Marks)

30. Give any four points of difference between financial and non-financial incentives. (4 Marks)

31. Analyze the importance of the four elements of the marketing mix in achieving a company's marketing objectives. How do these elements work together to enhance overall marketing effectiveness? (6 Marks)

OR 

Discuss the key factors that influence the pricing of a product or service, and explain how each factor impacts pricing decisions with relevant examples. (6 Marks)

Q32. Explain 'Objectives' and 'Budget' as types of plans. (6 Marks)

OR

Explain any four functions performed by a Stock Exchange and discuss how they contribute to the overall financial system. (6 Marks)

Q33. Explain the following characteristics of the Principles of Management: (6 Marks)

1. General guidelines
2. Flexible
3. Cause and effect relationship

OR

Explain the following techniques of Scientific Management: (6 Marks)

1. Method Study
2. Differential Piece Wage System
3. Fatigue Study

Q34. 'Memo Builders' was constructing a five-star hotel for a leading hotel chain. The hotel had to be given possession by next year, but the construction of the hotel was running six months behind schedule. The Chief Executive Officer of 'Memo Builders' was concerned, as Memo Builders was known for its quality and timely completion of projects. He asked Nitin, the senior of the Project Head for a thorough investigation. Nitin investigated and reported to the Chief Executive Officer that, despite the huge absenteeism of workers, additional workers were not called. Nitin also reported to the Chief Executive Officer that three of the ten machines being used by the workers were defective. Nitin ordered the repair of the machines and asked the Project Head to appoint additional workers with attractive wages to ensure that the deadline was met. (6 Marks)

1. Identify the function of management. Quoting the lines from the above para, explain the steps of the process of the function of management discussed.
2. Also explain any two points of importance of the function of management identified in (a) above.

The End

Below are the links to more sample papers:

• Sample Paper 1
• Sample Paper 2
• Sample Paper 3

CBSE Class 11th Business Studies Revision Notes - n9

Free Business Studies - Class 11th (CBSE) - Revision Notes - n9 - Internal Trade

Here are the quick details:

• Subject: Business Studies
• Class: 11th (CBSE)
• Chapter Name: Internal Trade

Internal Trade

• Buying and selling of goods and services within the boundaries of a nation.
• Payments are made and received in the home currency.
• The local mode of transport can be used.

Types of Internal Trade

Wholesale Trade

• Wholesale trade refers to buying and selling goods and services in large quantities for resale or intermediate use.
• The person who carries on wholesale trade is known as a wholesaler.
• Wholesaler acts as a link between the manufacturer and the retailer.
• He purchases goods in bulk from the manufactures and sells them in small and lot to retailers.

Services of Wholesaler

Services to Manufacturers

1. Storage - Wholesalers take delivery of goods after production and keep them in their godown. This reduces the burden of manufacturers of providing storage facilities for the finished goods.
2. Help in Marketing Function - The wholesalers take care of the distribution of goods to several retailers and retailers sell these goods to customers. Ø This relieves the manufacturers from many of the marketing activities and enable them to concentrate on production activity.
3. Expert Advice- As the wholesalers are in direct contact with the retailers, they can advise the manufacturers about various aspects like customers’ tastes and preferences, market conditions, competitive activities etc.
4. Facilitating Large Scale Production - Wholesalers collect small orders from various retailers and pass such orders to the manufacturers. This enables the producers to undertake production on a large scale and take advantage of the economies of scale.
5. Financial Assistance- The wholesalers provide financial assistance to the manufacturers that they generally make cash payment for the goods purchased by them. Even sometimes they also advance money to the producers for bulk orders placed by them.
6. Bearing Risk- The wholesale merchants deal in goods in their own name and kept the goods purchased in large lots in their warehouses. In this process, they bear variety of risks such as the risk of a fall in prices, theft, pilferage, spoilage, fire etc.

Services to Retailer

1. Marketing Support - The wholesalers perform various marketing functions like advertising and other sales promotional activities and provide support to the retailers. The retailers got benefits as it helps them in increasing the demand for various new products.
2. Specialized Knowledge - The wholesalers specialize in one line of products and know the pulse of the market. They pass on the benefit of their knowledge to the retailers about new products, their quality prices etc.
3. Risk Sharing - The wholesalers purchase in bulk and sell in relatively small quantities to the retailers. Hence, retailers can avoid the risk of storage, reduction in prices and fluctuation etc.
4. Grant of Credit - The wholesalers generally extend credit facilities to their regular customers. This enables retailers to manage their business with relatively small amount of working capital.

Retail Trade

• The retailer buys goods in large quantities from the wholesalers and sells them in small quantities to the ultimate consumers.
• The retails represent the final stage in the distribution where goods are transferred from the hands of the manufacturers or wholesalers to the final consumers or users.

Services of the Retailer

Services to the Manufacturers and Wholesalers

• Help in the Distribution of Goods: A retailer’s most important service to the wholesalers and manufacturers is to provide help in the distribution of their products by making these available to the final consumers in different areas.
• Collecting Market Information: As retailers are in direct touch with the buyers. As a result, they are in the best position to gather market information & provide that information to the wholesaler as well as manufacturers. So that they can produce the product as per the needs and wants of the customers.
• Enabling Large-scale Operations: The retailer provides the market sale to the wholesalers as well as manufacturers. The burden of selling is completely taken by the retailer which receives the manufacturers and hence they can focus on producing the product at a large scale.
• Personal Selling: In the process of the sale of most consumer goods, some amount of personal selling effort is necessary. Retailer undertakes personal selling and relieves the producers of this activity. As a result, the producer can focus only on producing the goods.
• Promotion – The retailer uses various techniques like sales promotion, advertisement, coupons etc to attract the consumers.

Services to Customers

• Regular Availability of Products : The most important service of a retailer to consumers is to maintain the regular availability of various products produced by different manufacturers. This enables the buyers to buy products as and when needed. 
• Wide Selection : Retailers generally keep stock of a variety of products from different manufacturers. This enables the consumers to make their choice out of a wide selection of goods. 
• Provide Credit Facilities :The retailers sometimes provide credit facilities to their regular buyers. It helps to increase their level of consumption and standard of living. 
• After-sales Services : Retailers also provide after-sale services in the form of home delivery, supply of spare parts, return and refund etc. This becomes an important factor in the buyer’s decision for repeat the purchase of the products.

Types of Retail Trade 

Itinerant Retailers 

• Itinerant retailers are traders who do not have a fixed place of business to operate from. 
• They keep on moving with their goods from street to street or place to place, in search of customers.
• They are small traders operating with limited resources. 
• The emphasis of such traders is on providing products available at the very doorstep of the customers.  

Types of Itinerant Retailers  (PMCS)

Peddlers and Hawkers

• Oldest form of retailers in the market. 
• They are small traders who carry their products on a bicycle, hand cart, and cycle rickshaw or on their heads. 
• They move from place to place to sell their goods at the doorstep of the customers. 
• Provide goods at the doorstep of customers but one should always be careful in dealing with them as the products they deal in are not always reliable in terms of quality and price. 
• They are mainly found in streets of residential areas, outside schools, colleges etc. They normally deal in goods of value such as toys, fruits and vegetables, fabrics, snacks ice creams. 

Market Traders 

• Small retailers who open their shops at different places on fixed days or dates, such as every Saturday or alternative Saturdays etc. 
• They are mainly catering to a lower-income group of customers and deal in low-priced consumer goods. 
• They mainly deal in a single-line product like fabrics, ready-made garments, toys, etc.

Cheap Jacks 

• Small retailers that have independent shops of a temporary nature in a business locality. 
• They keep on changing their business from one locality to another, depending upon the area. 
• They deal in consumer items as well as services such as the repair of watches, shoes, buckets etc. 

Street Vendors 

• Commonly found at places where a huge floating population gathers, for example: Near railway stations and bus stands. 
• They sell consumer items of common use like stationery items, eatables, readymade garments, newspapers and magazines etc. 
• They are different from market traders in the sense that they do not change their place of business so frequently.  

Fixed Shop Retailers 

• These are retail shops that maintain permanent establishment to sell their merchandise/Goods. 
• They do not move from place to place to serve their customers. 
• They have greater resources and operate on a relatively large scale as compared to itinerant traders. 
• This category of retailers has greater credibility/trust in the minds of customers. 
• They also provide various services such as home delivery, guarantees, repairs, credit facilities, availability of spares, etc.  

Types of Fixed-shop Retailer 

Small shopkeepers

General Stores 

• Found in residential areas and local markets. 
• Deal in a variety of products which are required to satisfy the day-to-day needs of the consumers (soft drinks, stationery and toilet products). 
• These stores remain open for long hours at convenient timings and often provide credit facilities to their regular customers. 
• The owners behavior plays an important role in the success of general stores. 

 Specialty Shops

• Very popular in urban areas. 
• They are specialized in the sale of a specific line of products, instead of selling a variety of products of different types. 
• These shops are generally located in a central place where a large number of customers can be attracted and provide a wide choice to the customers in the selection of goods. 
• For example: Shops selling children’s garments, men’s wear, ladies’ shoes, toys and gifts, school uniforms or college books etc. 

Street Stall Holders 

• Found in places where the flow of traffic is heavy like street crossings. 
• They attract floating customers and mainly deal in goods of cheap variety like hosiery products, toys, cigarettes, soft drinks, etc. 
• The area covered by a stall is very small and they handle goods on a very small scale. 

Second-hand Goods Shop 

• These shops deal in second-hand or used goods.
• Example - books, clothes, automobiles, furniture and other household goods. 
• The goods are provided to the customers at very lower prices. 
• Customers from lower income group usually visit such shops.
• These shops may also stock rare objects of historical value and antique items which are sold at rather heavy prices to people who have an interest in antique goods. 

Large Retailers

Departmental Stores

•  A departmental store is a large establishment offering a wide variety of products, classified into well-defined departments, aimed at satisfying practically every customer’s need under one roof. 
• For example: There may be separate departments for toiletries, medicines, furniture, groceries, electronics, clothing and dress material within a store. 
• Also knows as  a place that can offer a ‘needle to an Aeroplan’ or ‘all shopping under one roof’.
• The most common example of departmental stores in India ‘Spencers’ in Chennai.
•  A modern departmental store may provide all facilities such as a restaurant, telephone booth, restrooms etc. as their main aim is to provide maximum services to customers. 
• These stores are generally located in the heart of a city where a large number of customers gather. 
• They are generally formed as a joint stock company managed by a board of directors. 
• They have centralized purchasing arrangements. All the purchases in a department store are made centrally by the purchasing department, whereas sales are decentralized in different departments.

Chain Stores or Multiple Shops

• Chain stores are networks of retail shops that are owned and operated by manufacturers or intermediaries. 
• Under this, a number of shops with similar appearances are spread over different parts of the country. These different shops normally deal in standardized and branded consumer products. 
• These shops have identical products and displays.
• These shops are located in fairly populous localities, where a sufficient number of customers can be approached.
•  Each retail shop is under the direct supervision of a branch manager, who is held responsible for its day-to-day management. 
• All the branches are controlled by the head office, which is concerned with formulating policies and getting them implemented.
• The prices of goods in such shops are fixed and all sales are made on a cash basis.

The differences between Departmental Stores and Multiple Shops

Mail Order Houses 

• Mail-order houses are the retail outlets that sell their products through mail.
• There is generally no direct personal contact between the buyers and the sellers.
• For obtaining orders, customers are approached through advertisements in newspapers or magazines, circulars, price lists etc. and all the information about the products like price, features, terms of payment etc. are described in the advertisement.
• The goods are delivered at the doorstep of the customers.
• The biggest advantage of mail-order business for consumers is that unnecessary middlemen between the buyers and sellers are eliminated.

Goods and Services Tax (GST) 

• GST is a destination-based single tax on the supply of goods and services from the manufacturer to the consumer and has replaced multiple indirect taxes levied by the central and the state government, thereby converting the country into a unified market. 
• It came into existence on July 1, 2017, and its main aim is to make life easier for manufacturers, producers, investors and consumers.  
• Among other benefits, GST is expected to improve the ease of doing business in tax compliance, reduce the tax burden by eliminating tax-on-tax, improve tax administration, mitigate tax evasion, broaden the organized segment of the economy and boost tax revenues.
•  The GST has replaced 17 indirect taxes ( 8 central + 9 state levels) and 23 cesses of the Centre and the states.
• The territorial spread of GST is the whole country, including Jammu and Kashmir.
• CGST, SCST and IGST are levied at rates mutually agreed upon by the central and the states. 
• There are various modes of payment of tax available to the taxpayer, including Internet banking, Debit / Credit card and National Electronic Funds Transfer (NEFT)/ Real Time Gross Settlement (RTGS).