Business Environment — Business Studies STD 12 Commerce — Question

Amit is running an 'Advertising agency' and earning a lot by providing this service to big industries. State whether the working capital requirement of the firm will be 'less' or 'more'. Give reason in support of your answer.

Volvo’s Ltd. target is to produce 10,000 shirts per month at a cost of Rs. 100 per shirt. The production manager achieved this target at a cost of Rs. 90 per shirt. Do you think the production manager is effective? Give one reason in support of your answer.

Which component of capital structure determines the overall financial risk in an organisation?

Why is secondary market considered as market for second hand securities?

Why is it said that ‘planning is looking ahead’?

Name the factor due to which a petro chemical company requires much higher investment in fixed capital than an information technology company. However both may generate same amount of revenue. Explain any two factors affecting fixed capital requirement.

Match the following networks of informal communication network with the feature that best describes them.

S. No.	Colum I	S. No.	Colum II
1.	Single strand network	(i)	One person simultaneously communicates with all
2.	Gossip network	(ii)	Trust
3.	Probability network	(iii)	Sequential communication
4.	Cluster network	(iv)	Random

'Haldiram is selling its product directly to the customers'. State which channel of distribution is used by the company.

Is controlling backward looking?

At which level of management directing takes place?