Business Environment — Business Studies STD 12 Commerce — Question

The principles of Taylor and Fayol are mutually complementary. One believed that management should not close its ears to constructive suggestions made by the employees while the other suggested that a good company should have an employee suggestion system whereby suggestions which result in substantial time or cost reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred to in the above paragraph.

"Directing is the function of all managers of the organisation. " Do you agree with this statement? Give any three reasons in support of your answer.

Mita has a successful ice cream business at Bikaner, namely ‘Smartflavours’. Her ice creams are utterly delicious. She makes ice creams from fresh milk and the same are available in a wide range of flavours and packs. She sets viable business objectives and works with the same in mind in order to ensure that the customers will come back for purchasing.
Having the first mover advantage, her business was doing well. To earn higher profits, she started cutting costs. This would sometimes lead to delay in delivery and the ice cream was not reaching the market in time. Over a period of time, the demand for her ice cream declined and because of it the competitors entered the market. She lost some of her market share to competitors.
At the beginning of summer season, she got back to back orders for supply of 4,000 ice cream packs of different flavours for special occasions. To ensure that the task was completed and orders delivered in time she hired additional workers. She was, thus able to produce and deliver the ice cream packs but at a high production cost. While completing activities and finishing the given task for achieving goals, Mita realised that she was ignoring one of the important aspects of management.
Identify the aspects of management that has been ignored by Mita. Also explain the same with the help of an example.

What do you mean by insider trading?

Explain any four functions of financial market.Or"A financial market is for the creation and exchange of financial assets." Explain any two of its functions.

After completing a diploma course in Wedding Planning Sunidhi plans to start her own business under the name 'Heart Beat.' She plans to hire a team of experts to give her clients a unique and unforgettable wedding experience keeping in mind their preferences and budget. Since childhood she has been admiring her grand father's financial skills, so she decides to visit him in Mewar to seek his guidance and blessings. Her grandfather tells her that the success of business depends on how well finance is invested in assets and operations and how timely and cheaply the finances are arranged, from outside or from within the business. He warns her that she should always invest time in identifying different available sources of finance and comparing them in terms of their costs and associated risks. Similarly, the finance needs to be invested in a manner that the returns from the investment exceed the cost at which procurement has taken place.
In the context of the above case:
a. Identify and explain the financial concept being discussed above which has a direct bearing on the financial health of a business.
b. Name any two financial statements which reflect the financial health of a business.
c. Briefly outline the key objective of the concept as identified in part (a) of the question.

‘Accent Electronics Ltd.’ was operating its business in Malaysia. The company started exporting its products to India when the Prime Minister announced relaxation in import duties on electronic items. The company appointed retailers in India who had direct online links with the suppliers to replenish stocks when needed.
Identify and explain the dimensions of business environment discussed in the above case.

Davinder is a class twelfth commerce student in a reputed school in Punjab. Satinder is his elder brother who is doing his Masters in Hospital Administration from Delhi after completing his B.Sc course. During vacations when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic ‘Principles of Management’. Satinder tells him that these principles are also a part of MBA course curriculum at the beginner’s level as they form the core of management in practice. But he finds these principles different from those of pure science.
In context of the above case :

1. Outline the concept of principles of management.
2. Why does Satinder find the principles of management different from those of pure science ?
3. Why do the principles of management form the core of management in practice? Explain by giving any two points highlighting the importance of principles of management.

What are the three categories of objectives of management?

'If we delegate authority, we multiply it by two; if we decentralise it, we multiply it by many. How? Hongkol.