Staffing — Business Studies STD 12 Commerce — Question

'An ideal control technique is the one that checks every bit of performance'. Comment.

Manak Chand and Co., dealing in copper and other metals, has earned a profit of ₹ 1,200 crores. Manak Chand and Co. is a renowned name in the market and investors like to invest in the company. Company has explored its potential fully and is on the top, thus, it has no plans for growth or expansion in the next few years. Also, earnings of the company are consistent and stable over the years. Tax on dividends is also levied at a low rate by the government on the company. Guide the company on the decision of distribution of dividend to shareholders.

'Financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.' Explain any three such functions.

Rajiv, a consumer purchased medicines without noticing the date of expiry. He also did not obtain the cash memo. Do you think he will be able to protect himself by the loss caused due to expired medicine? Give reasons to support your answer.

How does decentralisation motivates employees and promotes initiative and creativity?

Even after opening up of our economy in 1991, foreign companies found it extremely difficult to cut through bureaucracy and red tapism.' Identify the element of business environment and explain it with the help of an example.

Explain the following principles of management given by Fayol:

Discuss the role of ‘sales promotion’ as an element of promotion mix.

State two advantages and disadvantages of free-rein leadership.

Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by the company was just sufficient to meet its costs. To increase the revenue, the company analysed the reasons behind the less revenues. After analysis, the company decided :

1. to reduce the labour costs by shifting the manufacturing unit to a backward area where labour was available at a very low rate.
2. to start manufacturing solar water-heaters and reduce the production of electric water- heaters slowly.

This will not only help in covering the risks but also help in meeting other objectives.

1. Identify and explain the objectives of management discussed above.
2. State any two values which the company wanted to communicate to society.