Principles of Management — Business Studies STD 12 Commerce — Question

According to you, which is the cheapest source of finance?

Sharda Ltd. is pursuing diversified activities which require a high degree of specialisation. Identify the type of structure that should be followed by Sharda Ltd.

In case of high fixed operating cost, company should prefer debt or equity?

Mr. Anil has been appointed by Suntech Ltd. to ensure that the performance of employees is going as per the plans made. In the report which he submitted to the management, he mentioned that carriage charges had risen by 8% however labour absenteeism had increased from the previous year from 5% to 15%. He felt that this increase in absenteeism required immediate action of management on priority basis.

1. Identify the step of one of the management functions referred above.
2. Identify the principle due to which increase in absenteeism required immediate action of management.

Give the name of environment that provides the framework, within which the business has to function?

Fayol points out the danger and cost of unnecessary labour turnover in one of his principles of management. Name that principle.

Why is "management called a group activity”?

Dabur India has decided to increase credit limit and duration of credit to its customers to boost its sales. Name the type of decision involved.

Karan, Kartik and Kunal are best friends. They decided to enter into a partnership business of constructing a mall. Which function of management is referred here?

Identify the decision taken in financial management which affects the liquidity as well as the profitability of business.