Financial Management — Business Studies STD 12 Commerce — Question

Why does the principle of unity of command not hold good in an organisation using technique of functional foremanship?

With the help of a suitable example, explain the meaning of informal organisation.

Metlapp Networks and Technologies Ltd. is a leader in technology innovation in the United States, creating products and solutions for connecting the world. It has,, a large research and development team which invented the first smart watch, named as W-7. The watch besides showing the time, also monitors few health parameters like heart beat, blood pressure etc.
While in search of markets abroad, the company found that in India, the reform process was underway with the aim of accelerating the pace of economic growth. The company decided to take advantage of simplified export procedure and removal of quantitative as well as tariff restrictions in India.
It set up its office in Jamnagar with a view to capture the Indian market. In a short span of time, the company emerged as a market leader. Success of the company attracted many other players to enter the market. Competition resulted in reduction in prices, thereby benefiting the customers.

1. In the above paragraph, two major concepts related to government policy have been discussed. Identify and explain these concepts.
2. Also, explain briefly any three impacts of these concepts on Indian business and industry.

Mr Sourabh, who is an M.B.A., has been appointed at the post of General Manager in Sa-re-ga-ma Ltd. Company. Just after his appointment, he took a decision to set up a chemical plant near a residential colony. (The chosen location to set up the plant was favourable for many reasons to the company). After some time, another important decision to the amount of charity been given annually to educational institutions and religious institutions was withdrawn giving the justification that it was an unnecessary burden on the company. More emphasis was given to the share of company in the market and in search of modern procedures. Apart from this, a long time labour-dispute was resolved by taking a balanced decision.

1. Tell whether Mr Sourabh is at fault?
2. If yes, the fault is in which context?
3. How can the mistake be amended?

Explain briefly any three functions of management.

Microgarments Ltd. is dealing in export of garments. The performance of the company has been upto the expectations in the past. Keeping up with the latest technology, the company decided to upgrade their machinery. For this, the Finance Manager, David, estimated the quantitative requirements of funds and their timings. This will help him in linking the investment and the financing decisions on a continuous basis.
So, he began with the preparation of a sales forecast for the next four years. He also collected all possible data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds within the business. For the remaining funds he is trying to find out the viable sources from outside.
Identify the financial concept discussed in the above para. Also, state the objectives to be fulfilled by the financial concept, so identified.

A firm wants to increase its sales by 25% in the coming year. Suggest two steps which should be examined critically by a manager.

“Organisation is a machine of management”. Comment.

ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibilities between workers and the management. The management even takes workers into confidence before taking important decisions. All the workers are satisfied as the behaviour of the management is very good.

1. State the principle of management described in the above paragraph.
2. Identify any two values which the company wants to communicate to society.

A manufacturer of food products uses bad quality material for packing the product resulting in spoiling goods in reaching the consumers.
Which value is being ignored here?