Directing — Business Studies STD 12 Commerce — Question

Answer the following question.Distinguish between Capital Market and Money Market.

Leena has been appointed as the Operations Manager in a small trading company dealing in garments, with growing online sales. The company has recently rented space in a warehouse to store garments and mail out orders. In order to take over the responsibilities of order fulfilment, Leena promotes an associate, Kushagra to the post of Inventory and Order fulfilment Supervisor. Kushagra has been given the task to assess whether it is best to process orders as they come in or let them accumulate and then to process them in batches. He concludes that accumulating and then processing them in batches is the best way of fulfilling orders, in order to minimise cost and maximise customer satisfaction.
Through several readings Leena finds that the standard time taken from the placement of order to the delivery of garments for a batch of 100 pieces is 72 hours. This helped her to determine the labour cost.
On the basis of the understanding of concepts of scientific management, identify and explain the techniques used by Leena and Kushagra to improve the performance of the employees.

Explain elements of delegation of authority.

Pranav is engaged in ‘Transport-Business’. Identify the working capital requirements of Pranav stating the reason in support of your answer. Pranav also wants to expand and diversify his Transport-Business. Explain any two factors that will affect his fixed capital requirements.

Differentiate between ‘capital-market’ and ‘money-market’ on the following basis:

1. Participants.
2. Instruments.
3. Investment outlay.
4. Duration and.
5. Liquidity.

"Delegation of authority is based on the elementary principle of division of labour". Explain this statement.

Aman, Avneesh and Amrish have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:

1. Purchase of raw materials.
2. Purchase of machinery.
3. Production of toys.
4. Arrangement of finance.
5. Sale of toys.
6. Identifying the areas where they can sell their toys.
7. Selection of employees

In order to facilitate the work they thought that four managers should be appointed to look after:

1. Production.
2. Finance.
3. Marketing.
4. Personnel.

1. Identify the function of management involved in the above mentioned para.
2. Quote the lines from the above para which help you in identifying this function.
3. State the steps followed in the process of this function of management.

Decentralisation is an optional policy. Explain why an organisation would choose to be decentralised.

What is staffing? Explain any five points of importance of this function.

What is meant by ‘Delegation’? State any four points which highlight the importance of delegation in an organisation.