Model Paper 4 Business Studies - Model Paper 4

Controlling is related to ________.

The firm’s ability to borrow at a lower rate increases its capacity to employ higher debt. The factor affecting choice of capital structure referred to is:

Match the following activities in column I with their respective levels of management in column II:

(a) Top Management	(i) Introducing a new product line and deciding the capital structure of the company.
(b) Middle Management	(ii) Recruitment of casual labourers.
(c) Supervisory or Operational Management	(iii) Devise a suitable advertising campaign to sell a new product/service a company is launching.

In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others.
Identify the type of plan being described in the above lines.

Consumer protection has a wide scope. Justify the statement.

Govind purchased a book from a book-seller and got the cash memo of ₹400 which he paid for the book. Later, he found that the actual price of the book is ₹380 but the book-seller had put a sticker of ₹400 on the original price. Can Govind recover the extra money that he paid? What other options are available to him against book-seller if he is refused to give the extra money he paid?

State any three factors that determine the requirements of working capital of a company.

Explain any three measures to overcome the barriers to improve communications effectiveness.

Explain Supervision and Communication as elements of directing function of management.

Explain the following rights of a consumer as per the provisions of Consumer Protection Act, 2019:
i. Right to safety
ii. Right to be heard

Differentiate between Primary Market and Secondary Market on the following basis:
a. Company involvement
b. Price determination
c. Location
d. Capital formation

‘Supervision is an important element of directing function’. Explain any four reasons in support of the above statement.

Devender and Rakhi both are friends. Both have completed their MBA course. Currently, they are employed, at an equal level, in a multi-national company. Devender is Deputy Manager in Kidswear Division and Rakhi is Deputy Manager in Ladieswear Division. Mr. Raghu Parsad is their boss. In order to please his boss, Devender always plays the role of Yes Man. On the other hand, Rakhi says Yes only for reasonable matters. She unhesitatingly refuses any wrong action of her boss. At the end of the year, when the performance of both of them was evaluated, then Rakhi s performance stood better than that of Devender. In spite of all this, Mr. Parsad decided to promote Devender. Behind this decision, the consideration of the boss was: being a lady, Rakhi will not be able to take as yet the responsibility of a higher post. So, let her stay where she is at present.
a. Identify which Principle of Management has been violated by the company.
b. Quoting the lines, identify those values which have been ignored in the above paragraph.

PQR Ltd. is engaged in manufacturing machine components. The target production is 200 units per day. The company had been successfully attaining this target until two months ago. Over the last two months, it has been observed that daily production varies between 150 - 170 units.
a. Identify the management function to rectify the above situation.
b. Briefly state the procedure to be followed so that the actual production may come up to the target production.

Advertisement is an important business activity. On the one hand, it makes available to the people information regarding different new and old products and on the other, it is also a source of living for many persons. Impressed by these traits of advertisement Tanu, Manu and Sanchit, three students of Class-XII made up their mind to go ahead with project work on an advertisement. All the three conversed with the people about advertisement. Each one of them, on the basis of his survey, concluded as under:
i. Tanu opined that advertisement costs get transferred to consumers in the form of high prices.
ii. Manu was of the opinion that advertisement showed reality in a twisted form.
iii. Sanchit maintained that advertisement was turning people from reality to artificiality.
a. What do the above remarks about advertisement hint at? Clarify it.
b. Identify two values that advertisement presents to society.

A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels, which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it. Give reasons in terms of benefits it will derive from the changes suggested by you.

On Your Marks is a good shoe manufacturing company. The company is the first to start a shoe having a unique technology giving it a long life. However the company knows that it exists in an environment where everything around it counts; so everything around it matters. Therefore, it is trying to observe every small aspect of the business environment. There are various factors which are closely related to each other and can't be understood in isolation like change in lifestyle which can be linked to the improved demand of technologically advanced shoes. However, the company can't be self satisfied. It will have to adjust to rapidly changing technology, fragmentation of market, changing brand loyalties, etc. It has got good man power and a very well established production department. It knows that various resources in the form of inputs have to be transformed into the best products and sold for increasing its revenue. However, there are various challenges which the company is facing. These are in the form of protests done by labour unions throughout the country which sometimes assume the form of strikes. The board of directors is keen to adapt to this difficult situation. Government is playing a very positive role, like it did a few years back, and is freeing the business environment from unnecessary restrictions and government controls. The company is hopeful of emerging as a winner under such government support.
i. Which features of business environment are highlighted in the above case?
ii. Identify the importance of business environment highlighted in the above case?
iii. Which dimension of business environment is highlighted above?
iv. Which economic reform is discussed in the last part of the case?

‘Singhal Printers Limited’ is a famous company of Printing Industry. Its main business is to print the Greeting Cards of Deepavali, Eid, Christmas, Gurpurb and other festivals. The Greeting Cards of this company are well known throughout India. The Government made such changes in its Tax Policy recently which have had a positive impact on the Printing Industry. One negative factor noticed with regard to this Industry is that now people have started preferring internet and mobile to Greeting Cards on festivals and other occasions. Similarly, it has also been noticed that in Printing Industry only those companies are earning profits which have adopted modern technology.
Recently, the new Central Government of the country decided to establish Industrial Estate in the name of Printing Club’ for the development of this industry. Also a decision to simplify the process of Industrial Disputes of Printing Industry in the country was taken. The Managing Director of ‘Singhal Printers Limited’ made a through study of the business environment. He arrived at the conclusion that the business environment is a group of not one but several factors. All these factors affect business in some or the other form. Business has no control over them. Business has to mould itself in accordance with them. The companies which follow this principle stay in the market for a long time and the remaining ones disappear from the market gradually.
a. Identify the different dimensions of business environment described in the paragraphs given above by quoting the relevant lines.
b. Which particular feature of business environment is being hinted/referred to here?

Nishant, the director of a garment company, is planning to manufacture bags for the utilization of waste material from one of his garments unit. He has decided that his manufacturing unit will set-up in a rural area of Odisha where people have very few job opportunities and labour is available at very low rates. He also thought of giving equal opportunities to men and women. For this, he wanted four different heads for sales, accounts, purchase, and production. He gave an advertisement and shortlisted ten candidates per post after conducting different selection tests.
a. Identify and state the next three steps for choosing the best candidate out of the shortlisted candidates.
b. Also, identify two values that Nishant wants to communicate to society by setting up this manufacturing unit.