Showing posts with label Business Studies. Show all posts
Showing posts with label Business Studies. Show all posts

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:

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

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.

Wednesday, November 19, 2025

CBSE Class 12th Business Studies Revision Notes - N8

Free Business Studies - Class 12th (CBSE) - Revision Notes - N8 - Controlling

Students who are studying in class 12th need to learn the concepts of Controlling as mentioned in their CBSE Business Studies book.
So, the time has come to read free revision notes for CBSE class 12th, mainly focused on Chapter 09: Controlling.
These exclusive revision notes are built by expert CBSE teachers to increase your knowledge level to score higher in your upcoming board exams.
Here are the quick details:
  • Subject: Business Studies
  • Class: 12th (CBSE)
  • Chapter Name: Controlling

Revision Notes for CBSE Class 12th - Business Studies

Controlling

  • The comparison of actual performance with the planned performance.
  • If there is any difference (deviation) then finding the reasons for such difference and taking corrective measures (action) to stop those reasons so that in future there is match between actual and planned performance.
  • Controlling means ensuring that activities in an organization are performed as per the plans.

Importance of Controlling

An image of Margo soap for Controlling process
Learn the below content it in a fun way: MARGO (Motivation, Accuracy, Use, Goals, Order)
  1. Improving Employees Motivation- An effective control system communicates the goals and standards of appraisal for employee in advance. It thus, motivates them and helps them to give better performance.
  2. Judging Accuracy of Standards- Through controlling we can easily judge whether the standard or target set are accurate or not.
  3. Making Efficient Use of Resources- Like traffic signal, the controls guides the organization and keeps it on the right track. Each activity is performed according to predetermined standards. As a result, there is the most effective use of resources.
  4. Helps in Achieving Organizational Goals - When the plans are made in the organization these are directed towards the achievement of organizational goals. The controlling function ensures that all the activities in the organization take place according to plan.
  5. Ensures Order And Discipline- Control keeps the subordinates under check and makes sure they perform their functions efficiently. It can check over dishonesty and fraud of employees by keeping a close check on their activities.

Relationship between Planning & Controlling

Planning and controlling are inseparable twins of management.
  • Planning is the basic function of every enterprise as in planning we decide what is to be done, how it is to be done when it is to be done and by whom it must be done.
  • Controlling means keeping a check that everything is under the plan and if there is any deviation, taking preventive measures to stop that deviation.
  • Planning and controlling functions always exist together as one function depends on the other.
  • The controlling function compares actual performance with the planned performance and if there is no planned performance then controlling cant take place. 
  • The planning function is also dependent on controlling function as plans are not made only on papers but these have to be followed and implemented in the organization. The controlling functions make sure that everyone follows the plan strictly.
Planning and Controlling both are Backward and Forward Looking
  • Planning is forward looking because plans are prepared for future.
  • Planning is also backward looking because planning is guided by past experiences and feedbacks.
  • Controlling is also forward-looking because controlling does not end only by comparing past performance with standard. It involves finding the reasons for deviations and suggests the measures so that these deviations do not occur in future.
  • Controlling is backward looking because like a postmortem of past activities, the managers look back to the previous year's performance to find out its deviation from the standard.
Steps in the Controlling Process
  1. Setting Performance Standards
  2. Measurement Of Actual Performance
  3. Comparing Actual Performance with standards
  4. Analyzing Deviations
  5. Taking Corrective Action
Here is the explanation:
  1. Setting Performance Standards:
    • Standards are the criteria against which actual performance would be measured. Thus, standards serve as benchmarks towards which an organization strives to work. Standards can be set in both quantitative as well as qualitative terms. Standards should be flexible enough to be modified whenever required.
  2. Measuring of Actual Performance:
    • Measurement of performance of an employee may require preparation of performance report by his superior. Measurement of a company's performance may involve calculation of certain ratios like gross profit ratio, return on investment etc. Progress of work in certain operating areas like marketing may be measured by considering the number of units sold, increase in market share etc.
  3. Comparing Actual Performance with Standards
    • The manager compares the actual performance with the planned performance and standard. If there is a match in both then the controlling functions end there only. But if there is a mismatch or deviation then the manager tries to find out the extent of the deviation. If the deviation is minor then it should be ignored. But if the deviation is more, then timely actions must be taken.
  4. Analyzing Deviations
    • All deviations need not be brought to the notice of top management. A range of deviations should be established and only cases beyond this range should be brought to the knowledge of top level management.
      • Critical Point Control : It means keeping a focus on some key areas (KRAs) and if there is any deviation in these key areas, then it must be attended urgently. Key areas are those which have an impact on whole organization. For example: In a manufacturing organization, an increase of 5% in the labor cost may be more troublesome than a 15% increase in postal charges.
      • Management By Exception : It means a manager who tries to control everything may end up controlling nothing. The deviations which are beyond the specific range should only be handled by managers and minute or minor deviations can be ignored. For example: If production cost increases by Rs 20, it can be ignored but if it increases more than Rs 20, then managers must try to find out the reasons for deviations which need immediate attention.
  5. Taking Corrective Action
    • On comparing the actual performance with the planned performance, then the next step is to know the reasons for such deviations and try to remove deviations in future. The managers take measures to bring back everything on track, i.e. according to plan.

The End

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Tuesday, November 18, 2025

CBSE Class 12th Business Studies Revision Notes - N12

Free Business Studies - Class 12th (CBSE) - Revision Notes - N12 - Consumer Protection

We have heard slogans on the television, radio, and other mediums that "Jaago Grahak Jaago". This campaign by the Indian Government shows the importance of consumer protection in India.

Students who are studying in class 12th also have a Business Studies chapter on Consumer Protection.

So, time has come to read free revision notes for CBSE class 12th mainly focused on Chapter 12: Consumer Protection.

These exclusive revision notes are built by expert CBSE teachers to increase your knowledge level to score higher in your upcoming board exams.

Here are the quick details:
  • Subject: Business Studies
  • Class: 12th (CBSE)
  • Chapter Name: Consumer Protection

Revision Notes for CBSE Class 12th - Business Studies

Consumer Protection

Definition of Consumer (As Per Consumer Protection Act 2019)

A consumer is defined as a person who buys any goods or avail any services for a consideration, which has been paid or partly paid or partly promised or promised to pay, under any scheme of deferred payment.

It also includes the person, who is using the goods or beneficiary of service with the approval of the buyer. It applies to both offline and online transactions through electronic means or by teleshopping or direct selling or multilevel marketing.

Note: Any person who obtains good and avails services for resale or commercial purpose is not treated as consumer.

Importance of Consumer Protection

From Consumer Point of View

  • Consumer Ignorance
    • Consumer protection provides information to the ignorant customers regarding the rights and remedial available to them. It spreads awareness so that consumer can know about their rights and various redressal agencies.
  • Unorganized Consumer
    • In developing countries like India, consumers are not organized. Consumer protection provides power and rights to the organizations as these organizations can file case on behalf of customers.
  • Widespread Exploitation of Consumers
    • Although nowadays consumer is the king of the market, but even then there is a lot of exploitation of consumers. Consumer protection provides a safeguard to consumers from such exploitation.

From Businessmen's Point of View

  • Long-Term Interest of Business
    • In the race of competition, the businessmen can win and capture a big share in the market only when they are able to satisfy its customers by designing the products keeping in mind the requirements of customers. So, it is in the interest of the business itself to keep its customers satisfied.
  • Businessmen Uses Society's Resources
    • Businessmen earn profit by supplying goods and services to the members of society, so it must do something for society. Businessmen are merely trustees of resources; they must use these resources for the benefits of consumers.
  • Social Responsibilities
    • A businessman has social obligations towards various groups and customers. It is the responsibility of businessmen to provide quality goods at a reasonable price. Consumer protection guides businessmen to provide social responsibilities.
  • Moral Justification
    • In today's environment, business without ethical value is no more than a criminal activity and no civil society can tolerate and allow the existence of unethical business.
  • Government Intervention
    • If businessmen want to avoid intervention of government then they shouldn't involve in unfair trade practices. Businessmen should voluntarily involve in the activities which protect the interest of the consumer.

Consumer Rights 

The six fundamental consumer rights are:

  1. Right to Safety
  2. Right to Information
  3. Right to be Assured / Right to Choose
  4. Right to be Heard or Right to Representation
  5. Right to Seek Redressal
  6. Right to Consumer Education

Following are the details:

  1. Right to Safety
    • According to this right, the consumers have a right to be protected against the marketing of goods and services which are hazardous to life and property. This right to safety protects the consumer from sale of such hazardous goods or services. Thus, consumers are educated that they should use electrical appliances which are ISI marked as this would be an assurance of such products meeting quality specifications.
  2. Right to Information
    • According to this right, the consumer has the right to get information about the quality, quantity, purity, standard and price of goods or services to protect himself against the unfair practices. The law in India also requires the manufacturers to provide such information on the package and label of the product.
  3. Right to be Assured / Right to Choose
    • The right to choose means an assurance of availability, ability and access to a variety of products and services at fair price. The producer or supplier or retailer should not force the customer to buy a particular brand only. Consumer should be free to choose the most suitable product from his point of view.
  4. Right to be Heard or Right to Representation
    • According to this right, the consumer has the right to represent himself or to be heard or the right to advocate his interest. In case a consumer has been exploited or has any complaint against the product or service, then he has the right to be heard and be assured that his/her interest would receive consideration. Under this right, the companies must have complaint cells to attend to the complaints of customers.
  5. Right to Seek Redressal
    • According to this right, the consumer has a right to get compensation or seek redressal against unfair trade practices or any other exploitation. The right to redressal includes compensation in the form of money or replacement of goods on repair of defect in the goods as per the satisfaction of the consumer.
  6. Right to Consumer Education
    • According to this right, it is the right of the consumer to acquire the knowledge and skills to be an informed consumer. This right assures that literate and illiterate both consumers can seek information about the rights and the reliefs available to him.

Consumer's Responsibilities

  • Be aware about various goods and services available in the market so that an intelligent and wise choice can be made.
  •  Buy only standardised goods as they provide quality assurance. Thus, look for ISI mark on electrical goods, FPO mark on food products, Hallmark/BIS Mark on jewellery, WOOLMARK on 100% Pure Wool etc.
  • Learn about the risks associated with products and services, follow manufacturer’s instructions and use the products safely.
  •  Read labels carefully to have information about prices, net weight, manufacturing and expiry dates, etc.
  •  Assert yourself to ensure that you get a fair deal.
  • Be honest in your dealings. Choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding etc.
  • Ask for a cash memo/Invoice on purchase of goods or services. This would serve as a proof of the purchase made.
  • File a complaint in an appropriate consumer forum in case of a shortcoming in the quality of goods purchased or services availed. Do not fail to take an action even when the amount involved is small.
  •  Form consumer societies which would play an active part in educating consumers and safeguarding their interests.
  • Respect the environment. Avoid waste, littering and contributing to pollution.

Who can File a Complaint?

  1. Any consumer.
  2. Any voluntary consumer association, registered under any law.
  3. The central Government or any state government.
  4. One or more consumers, where there are numerous consumers having the same interest.
  5. In case of the death of the consumer, his legal heir or legal representative.
  6. In case of a consumer being minor, his parents or legal guardian.

Who are not Considered as a Consumer under Consumer Protection Act 2019?

  1. The person who obtains goods for resale.
  2. The person who uses the goods without the approval of the buyer.
  3. The person who avails of the services without the approval of the hirer.
  4. The person who obtains goods without any consideration (i.e., payment).
  5. The person who hires or avails of any services without consideration.

Relied or Remedies/Solution Available to Consumers on Complaints Filed by Him

  • To remove the defects or deficiency in the service.
  • To replace the defective product with a new one free from any defect.
  • To refund the price paid for the product or the charges paid for the services.
  • To pay a reasonable amount of compensation for any loss or injury suffered by the consumer due to the negligence of the opposite party.
  • To pay extra compensation as a corrective measure for damage to the consumer due to the opposite party (It is called to pay punitive damages).
  • To discontinue unfair/restrictive trade practice and not to repeat it in the future.
  • No to offer hazardous goods for sale.
  • To withdraw hazardous goods from the market.
  • To cease manufacture of hazardous goods and to desist (abstain/cease/stop) from offering hazardous services.
  • Compensate for any loss or injury suffered by the consumer under product liability action and withdraw hazardous products from being offered for sale, etc.
  • Payment of adequate cost to the grieved party.
  • District Commission, State Commission, and National Commission have the power to declare a contract null and void, if it is unfair.
  • To cease and restrict from issuing any misleading advertisement.

Redressal Agencies and Their Jurisdiction

Every order of the District Commission, State Commission, or the National Commission is deemed final if no appeal for such order is made by any of the parties involved in the dispute.

Redressal Agencies under the Consumer Protection Act, 2019

  • District Forum (now District Commission)
  • State Commission
  • National Commission

District Forum (District Commission)

  • District Commission consists of a president and two other members.
  • The president can be a retired or working judge of the District Court. They are appointed by the state government.
  • The complaints for goods or services worth ₹ 1 crore or less can be filed in this agency.
  • District forum may give grieved parties five days for settlement.
  • The agency sends the goods for testing in a laboratory if required and gives decisions based on facts and laboratory report.
  • If the aggrieved party is not satisfied by the jurisdiction of the district commission, then they can file an appeal against the judgement in the State Commission within 45 days.

State Commission

  • It consists of a president and at least four other members.
  • The president must be a retired or working judge of the high court. They all are appointed by the state government.
  • The complaints for the goods worth more than ₹ 1 crore and less than ₹ 10 crore can be filed in State Commission.
  • On receiving a complaint, the State Commission contacts the party against whom the complaint is filed and sends the goods for testing in a laboratory if required.
  • In case the aggrieved party is not satisfied with the judgement, then they can file an appeal in the National Commission within 30 days.

National Commission

  • The National Commission consists of a president and four members, one of whom shall be a woman.
  • They are appointed by the Central Government.
  • The complaint can be filed in the National Commission if the value of goods exceeds ₹ 10 crore.
  • On receiving the complaint, the National Commission informs the party against whom the complaint is filed and sends the goods for testing if required and gives judgement.
  • If the aggrieved party is not satisfied with the judgement, then they can file a complaint in the Supreme Court within 30 days.

Role of Consumer Organizations and NGOs

  1. Educating the public about consumer rights by organizing training programmes, seminars, and workshops.
  2. Publishing periodicals and other publications to impart knowledge about consumer problems, reliefs available, and other matters of interest.
  3. Carrying out comparative testing of consumer products in accredited laboratories to test relative qualities of competing brands and publishing the test results for the benefit of consumers.
  4. Encouraging consumers to strongly protest and act against exploitative and unfair trade practices of sellers.
  5. Providing legal assistance to consumers by way of providing aid, legal advice, etc., in seeking legal remedy.
  6. Filing complaints in consumer courts on behalf of consumers.
  7. Taking an initiative in filing cases in consumer courts in the interest of the public.
  8. Helping government agencies to resolve cases of consumer exploitation and to carry on consumer awareness programs.
  9. Motivating people to ask for quality marks such as ISI mark, AgMark, etc.

Consumer Protection Act, 2019

The new Consumer Protection Act was passed by Parliament in 2019. It came into force in July 2020 and replaced the Consumer Protection Act, 1986.

Need for the new act

  • The Digital Age has led to a new era of commerce. Digitisation has provided easy access, a large variety of choices, convenient payment mechanisms, improved services and shopping as per convenience. However, there are also associated challenges related to consumer protection.
  • To help address the new set of challenges faced by consumers in the digital age, the Indian Parliament passed the landmark Consumer Protection Bill, 2019 which aims to provide timely and effective administration and settlement of consumer disputes.

Central Consumer Protection Authority (CCPA)

  • The Act proposes the establishment of the Central Consumer Protection Authority (CCPA) as a regulatory authority.
  • The CCPA will protect, promote and enforce the rights of consumers and regulate cases related to unfair trade practices, misleading advertisements, and violation of consumer rights.
  • The CCPA will have the right to recall products, order reimbursement of the price of goods/services, cancel licenses, impose penalties and file suits.

E-Filing of Complaints

  • The new Act provides flexibility to the consumer to file complaints with the jurisdictional consumer forum located at the place of residence or work of the consumer. This is unlike the earlier condition where the consumer had to file a complaint at the place of purchase or where the seller has its registered office address.
  • The new Act also contains enabling provisions for consumers to file complaints electronically and for hearing and/or examining parties through videoconferencing.

The End

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