Financial Management — Business Studies STD 12 Commerce — Question

When are the market terms 'going public' and 'water the equity' used?

‘Home Creations Ltd.’ is a well known chain of large department store offering various types of products under one roof. The company owns fifty stores in various parts of the country. Each store is placed under the charge of a manager who is allowed to run their stores autonomously by deciding about the products which may be promoted, appointment of staff, ways to handle customer complaints etc. As these managers have a deeper knowledge of the local situations, it enables them to take these decisions effectively keeping in view the local circumstances and consumers’ needs. This approach helps to improve customer service and at the same time serves to boost morale and increase the job satisfaction of the store managers as it empowers them to innovate and use their initiatives.
In the context of above case :

1. Identify and explain the policy followed by ‘Home Creations Ltd.’ to run their stores successfully.
2. Also, give any three points highlighting the importance of the approach followed as identified in part (1) of the question.
3. List any two values that ‘Home Creations Ltd.’ wants to communicate to its employees.

Mr Axe, one of the directors of XYZ Ltd, knew that bonus shares were to be announced in the next meeting and he expected the price to rise. He bought 10000 shares from the stock market. By the end of few months, price rose by ₹ 9. He sold his shares and made huge profit.

1. Name the act of Mr Axe.
2. Is it permitted?

How directing helps in efficient and effective functioning of the organisation? Explain by giving any three points.

The directors of a company want to modernise its plant and machinery by making a public issue of shares. They wish to approach stock exchange, while the finance manager prefers to approach a consultant for a new public issue of shares.
Advise the directors whether to approach stock exchange or a consultant for new public issue of shares and why? Also advise about the different methods which the company may adopt for the new public issue of shares.

You are asked to draw a label for a company's product (chocolate). Mention what things will you keep in mind and furnish the information on the label of a product.

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.

Ramnath Ltd. is dealing in import of organic food items in bulk. The company sells the items in smaller quantities in attractive packages. Performance of the company has been up to the expectations in the past. Keeping up with the latest packaging technology, the company decided to upgrade its machinery. For this, the Finance Manager of the company, Mr. Vikrant Dhull, estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis.
Therefore, Mr. Vikrant Dhull began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources. For the remaining funds he is trying to find out alternative sources.
Identify the financial concept discussed in the above paragraph. Also, state any two points of importance of the financial concept, so identified.

'Selection is a negative process'. Do you agree?

'Packaging has acquired great significance in the marketing of goods.' In the light of this statement state any three functions of packaging.