Model Paper 3 Business Studies - Model Paper 3

Controlling function of an organisation is:

________ are essential ingredients of sound working capital management.

Match the functions of management in Column I with their explanation in Column II:

(a) Planning	(i) Setting goals in advance and developing a way of achieving them effectively and effectively.
(b) Organising	(ii) Establishing an atmosphere that encourages employees to do their best.
(c) Directing	(iii) Determining what activities and resources are required.
(d) Controlling	(iv) Determining what activities and outputs are critical to success.

Vimal Masala and Sons is a manufacturer of tobacco products. It decided to increase profits by at least 20% in the next quarter. It has many options.
i. To increase the working hours of labourers without additional payment.
ii. To employ children from the local community.
iii. To sell its products outside the schools and colleges.
It opted the (ii) and (iii) options to achieve the target.
Identify the function of management described in the above para.

State any three points which highlight the importance of consumer protection from consumer’s point of view.

Under the Consumer Protection Act 2019, a consumer is a person who uses or consumes goods or avails of any service. Comment.

Explain the following as factors affecting Financing Decision:
i. Fixed operating costs and
ii. Cash flow position of the company

After completing his bachelor's in computer science, Abhijeet joined an IT consultancy firm. He observed there that the senior management more often communicated failures than successes. They rarely shared any good news related to the growth of the firm or give any recognition to its employees for their extraordinary contributions towards the firm. As a result, Abhijeet never felt encouraged enough to work up to his full potential and started exploring other avenues for employment.
In context of the above case:
a. Identify and explain the element of directing in the absence of which the employees don't feel encouraged to work.
b. State the importance of this element as identified in part (a) by giving any two suitable points.

State the role of supervisor in the directing function of management.

As a well-informed consumer, what kind of quality certification marks you will look for before buying 'products? Specify and 6 points.

Aditya Khosla, the Managing Director of ‘D.L.W. Ltd.’ and Rajesh Puri, the Finance Manager were discussing about avenues of investing the idle funds of the company. Aditya Khosla was of the opinion that money should be invested in the capital market whereas Rajesh Puri, being more conservative, felt that it would be better if the investment was made in the money market. Since the economy was buoyant, the Managing Director convinced Rajesh that they should take advantage of it and invest in the capital market to get good returns. Ultimately it was decided to invest the idle funds in the capital market.
i. What kind of instruments should the company buy?
ii. Why is the capital market expected to give a better return in a buoyant economy? State the reason.
iii. Why and how safe are the securities in this market as compared to the money market?

Explain the concept of ‘Motivation’ and ‘Leadership’.

D&D Ltd. Co. is a large manufacturing unit. Recently, the company had conducted the 'time' and 'motion' studies and concluded that on an average a worker could produce 120 units per day. However, it has been noticed that average daily production of a worker is in the range of 80-90 units. What steps will you suggest to ensure that the actual performance is in accordance with the performance as per time and motion studies?

State the meaning of controlling.

After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to be the leading manufacturer of Aloevera products worldwide. He observed that the products were expensive as the demand of the products was more than the supply. He was also keen to promote methods and practice that were economically viable, environmentally sound and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloevera product. He also thought that competitors prices and their anticipated reactions must also be considered for this. After gathering and analysing information and doing correct marketing planning, he came to know that the consumers compare the value of a product to the value of money they are required to pay. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay.
Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run the business will not be able to survive unless all costs are covered in addition to a minimum profit.
He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products.
The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition most of the firms compete with each other on this concept in the marketing of goods and services.
i. Identify the concept.
ii. Explain briefly any four factors discussed in the above case related to the concept so identified.

What is meant by formal organisation? Explain any three features of formal organisation.

Bright Services is a taxi service provider. The company is targeting a revenue of 50 crore rupees this year. However with the passage of time it has found entrance of new service providers in the market which were not expected at one stage of time. It has a good team of technicians, drivers, software providers, etc. The company has decided to adopt to such continuously changing circumstances. It knows that if it has to expand in new countries it will have to learn the basic differentiating factors like traffic rules, technological aspects, etc. Thus it understands that conditions are different in different countries.
Which features of Business Environment are discussed in the above case? Which force is discussed above?

Explain, with examples, the various dimensions of business environment.

What is staffing? Explain any five points of importance of this function.