Model Paper 4 — Business Studies STD 12 Commerce — Question

State the disadvantages of labelling.

Voltech India Ltd. is manufacturing LED bulbs to save electricity. However, it is running under heavy losses. To revive from the losses, the management shifts the unit to a backward area where labour is available at a low cost. The management also asks the workers to work overtime without any additional payments and promises to increase the wages of the workers after achieving its mission. Within a short period, the company starts earning profits because both the management and workers honour their commitments.

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

"Money market is essentially a market for short-term funds". In the light of this statement, state any three features of money market.

How does the control of existing shareholders get affected? How this situation can be avoided?

Gurpreet is running a retail mart in Varanasi to provide various types of products of daily use under one roof to the buyers. The employee turnover in his business is very high and he is perpetually on a look out for new staff. The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis without letting them settle down in a specific work. This approach of his creates a sense of insecurity among the employees and they tend to leave the job very quickly. However, he is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.
In context of the above case :

1. Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually on a look out for new staff.
2. “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable standard of living.” Name and explain the relevant principle of management will has been brought into effect by Gurpreet.

After completing his MBA from the USA, Mr. Ajay came to India to start a new business under the banner Ecom Creations Ltd. He launched a new product in e-learning for senior secondary school students in the commerce stream which already had an established market in the UK and the USA but not in India. His business started flourishing in India. As a result, more Indian companies entered into the market with other subjects also.
Identify and quote the lines from the above paragraph which highlight the significance of understanding business environment.

How does the technique of time study help in improving the efficiency level?

If an organisation does not provide the right place for physical and human resources, which principle is violated? What are the consequences of it?

Explain briefly ‘Discipline’ and ‘Unity of Command’ as general principles of management.

How does 'Risk Consideration' affect the Capital Structure Decision?