Financial Management — Business Studies STD 12 Commerce — Question

Advertisement is an important business activity. On the one hand, it makes available to the people information regarding different new and old products and on the other, it is also a source of living for many persons. Impressed by these traits of advertisement Tanu, Manu and Sanchit, three students of Class-XII made up their mind to go ahead with project work on an advertisement. All the three conversed with the people about advertisement. Each one of them, on the basis of his survey, concluded as under:
i. Tanu opined that advertisement costs get transferred to consumers in the form of high prices.
ii. Manu was of the opinion that advertisement showed reality in a twisted form.
iii. Sanchit maintained that advertisement was turning people from reality to artificiality.
a. What do the above remarks about advertisement hint at? Clarify it.
b. Identify two values that advertisement presents to society.

The Government of India has recently come up with an amendment to Section 6 of the Payment of Wages Act 1936, to allow employers of certain industries to make payment through various electronics modes of payments. The amendment will be applicable to all the public sector undertakings for wages disbursement using e-payment options. This is another milestone in the direction to further push to cashless economy. Identify and explain any two dimensions of business environment which relate to the above mentioned case.

Explain the process of staffing.

Explain why planning is necessary for effective management.

"Sound financial planning is essential for the success of any business enterprise". Explain this statement by giving any six reasons.

Puneet, the finance manager of Sahara Ltd., is involved in preparation of the financial blueprint for future operations. He is directed by the seniors to ensure that enough funds are available at right time. Because if surplus/ excess funds are available, it will add to the cost and may encourage wasteful expenditure. On the other hand, if funds are short, then firms will not be able to honour their commitments and carry out plans.
He is taking into consideration the growth, performance, investments and requirement of funds for a given period. He is working on both short-term and long-term plans. After completing the process of estimating the funds requirement of the company, he specifies the source of funds also. Last year also, he got lot of appreciation for his successful effort.

1. In which process, Puneet is currently involved?
2. Is the above concept equivalent to or substitute for financial management? Why?
3. Mention two importance of the concept in which Puneet is involved.

‘Control is considered important for many reasons’. Explain any five such reasons.

Explain any four points that highlight the importance of controlling.

Clarify, how ‘staffing’ is termed as a part of ‘human resource management’.

Physical distribution includes some components for physically moving the goods from manufacturers to the customers. Explain these components.