Unit-2 includes chapter-4,5and 6

Business Studies CLASS-XII

MM: 39​                          Ch- 4,5                                                               Time 1 hour 20min​

1. How should a manager select the best possible course of action? (1)                    

2. Planning requires logical and systematic thinking rather than guess work. Which feature of planning is highlighted here? (1)

3. Starbucks made divisions in its organizational structure in following way

i. Division for Coffee and related products

ii. Division for Baked products

iii. Division for Merchandise like mugs

Each division is multifunctional and self-contained. Identify the organisation structure stated above (1)

4. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs its market share is declining. To cope up with the situation CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organization. Identify the concept of management discussed above. (1)

5. State any three advantages that a functional structure offers to an organization. (3)

6. “If we delegate the authority, we multiply it by two. If we decentralise it, we multiply it by many.” How ?(3)

7. Aditya Lumba, director at Eco-Rent-A-Car, knows future is uncertain. But making assumptions about the future, he forecasts that self-drive business will thrive because of increase in number of tourists, NRIs visiting India, corporate employees spending weekends out of the city etc.

I. Name the function of management discussed in the above case.

II. Name the step of that function mentioned in that case.

III. List any two features of that function.  (3)       

8. The directors of Gunjan Ltd., an organisation  manufacturing colour televisions, have asked their production manager to achieve a target production of 150 televisions per day. The production manager has asked his foreman to achieve this target, but he did not give him the authority for the requisition of tools and materials from the stores department. The foreman could not achieve the desired target. Can the directors blame the production manager, and can the production manager blame his foreman for not achieving the target? Explain in brief the relevant principles relating to this situation in support of your answer(3)

9. The central government has taken the initiative ‘Startup India’, to boost entrepreneurship in the country. Many have come forward to participate in it. Explain any two reasons why inspite of intense planning many have failed. (3)

10. A company is manufacturing washing machines. There is a well defined system of jobs with a clear and definite authority, responsibility and accountability in the company. But people are not allowed to interact beyond their officially defined roles. As a result the company is not able to adapt to the changing business environment. The workforce is  also not motivated due to lack of social interaction. The company is facing problems of procedural delays and inadequate recognition to creative talents.

(i) Suggest how the organization can overcome the problems faced by it.

(ii) Give any two benefits it will derive from your suggestion. (3)

11. Om reported at his office at 9 a.m. as usual. He received a telephonic message from his wife at 10 a.m. informing him about accident of his father.Om rushed to his manager, Ashok. Ashok offered him seat and water to drink. He told Om not to worry about medical expenses as the same would be borne by the company. Om left immediately for hospital on one week's leave.Later Dheer, assistant manager reminded Ashok of a circular put on notice board stating ' No leave will be allowed before prior sanction'. Ashok replied that his decision was based on ensuring employees' welfare, fulfilling their needs and addressing their grievances without disturbing company's operations.  

(a)Identify the two types of plans referred to by Ashok and Dheer respectively. Distinguish between them on any one basis.

(b)State and explain the limitation of planning highlighted above. 

(c)Identify two values displayed by Ashok.(5)

12. Name the function of management which examines the activities and resources required to implement the plan and explain its steps (5)

Test- Unit-1 includes chapter 1,2 and 3

Test Unit 1(Ch- 1, 2, 3)

MM: 47​Time 1 hour 30 min

1. Sahni garments produce 20000 shirts a month at a cost of 170 per shirt. Due to a sudden rise in the labour cost due to Diwali season, the cost of production went up to 190 per shirt. The production manager had the option of making less than the target to save cost but he decided to meet the target at the higher cost because they didn’t want to loose sales. Which concept of management has the manager followed and which has he ignored? (1)

2. In an organisation sales department wants to increase the sale by 20% so sales department planned to offer extra discounts to customers.  Finance department raised objection on it as they say it will result in loss of revenue and company may face liquidity problem. What quality of management is lacking in the above case? (1)

3. X Ltd, a tyre manufacturing concern has been established for more than ten years. Having made good profits in the past, company wanted to expand further and hence did not declare bonus for the previous year. With this decision the workers got agitated but management promised that the bonus will be declared once the projects achieves a stable position. State relevant management principle of Fayol used by management.​(1)

4. Which level of managers are responsible for coordination?(1)

5. Alia Enterprises, a company was initially producing grinders and mixers. Now,  with the changing scenario and emerging trends of working women there is a greater demand for a  product which is more efficient and a multi-tasker. On analyzing the situation, the company decided to penetrate into the market for producing Food Processor. 

a. Which feature of management is highlighted here?

b. Which level of management will take this decision?  (1)                                                            

6. Successful organisations do not achieve their goals by chance but by following a process. Name the process. (1)

7. The aim of this study is to eliminate unnecessary movement so as to ensure timely completion of work”. Which study is emphasized in above statement?(1)

8. What changes were made in the industrial policy in the recent past?(3) 

9. Soni Traders is a chain of retail stores engaged in buying and selling of electronic gadgets in India. Due to increased competition, dynamic technology, ever-changing tastes and preferences of customers and of course turbulent political and legal environment, the survival of business is at stake. Discuss what the managers of Sony Traders should do in response to such dynamic business environment.(3)

10. Why is it said that knowledge of  principles of management are essential for the success of an organization?(3)

11. It is common now to see CD-ROM’s, computerized information   kiosks, and Internet/ World Wide Web multimedia pages highlighting the virtues of products. Identify dimension of business environment related to following situations and explain (4)

12. Kolkata rice foods ltd is a big rice manufacturing firm. From the beginning of the year its sales are falling. Being worried about the situation, the MD appointed a research committee to find the reasons. They submitted the following report after the survey:

a. Due to increase in export duty by the government the foreign demand has gone down.

b. Due to substitutes available the attention of people has shifted from rice.

c. Some other rice manufacturing firms have imported machines which are producing better quality rice.

d. Also the relations of their country have turned bitter with one main importing country.

Identify the dimensions of business environment identified above, by quoting the relevant lines.

Which importance of business environment has the manager missed out? (4)

13. Simmi Ltd. manufactures fashionable and designer clothes. Recently it finds that the demand for its products has been declining. After market research it was discovered that fashion and tastes of the consumers is changing at a fast pace. Customers' demand is increasing. New competitors have entered the market with new designs. It is very difficult for the company to predict future happenings. Also, it is difficult to know the extent of the relative impact of the social, economic, political, technological or legal factors on decrease in demand of its products in the market.

A meeting was held in which managers from different functional levels heading Production, Marketing, Finance etc, e.g. CEO, CFO, VP (Marketing) were present to discuss how to deal with the situation. After a long discussion, it was decided that they would study and analyse the market first to identify customer tastes and fashion and then manufacture garments accordingly. It was also decided to increase expenditure on advertising, after- sales services etc.

a. Identify any two features of business environment by quoting the lines from the above case.

b. Identify any two impacts of government policy changes on business, quoting lines from the above case.

c. State the importance of understanding of environment by business managers in the light of the above para.(5)

14. (a)One of technique given by F.W. Taylor is extension of   principle given by Henry Fayol. Identify that and explain 

(b) Mohan always comes 1 hour late in the office and leave half an hour before the scheduled time. No penal action is taken against him. Other employees also started coming late in the office. Management is very disturbed with this and has started scolding the employees.
(1) Which management principle is being violated in the given case?
(2) Explain the principle.
(3)  Mention one probable adverse consequence of violation of the given principle (3+3)

15. (a)Explain the principle of management which advocated paternalistic style of management.

(b)Suresh is working under supervisor Ramesh. Suresh always give useful ideas which have resulted in gains for organisation but Suresh never acknowledges him and he also use to take credit for suggestions given by Ramesh. Which Principle of management is being violated and what values are ignored by Ramesh and what will be the consequences.(2+4)

16. M Ltd was manufacturing water heaters. In the first year of its operations, the revenue earned by the company was barely sufficient to meet its costs.  The firm had also taken no steps to ensure proper arrangement of things, i.e. materials, tools etc and also did not have a fixed place for every employee. This led to a fall in productivity and efficiency and wastage of time and cost. To increase the revenue, the company analysed the reasons for less revenue. After this analysis, the company decided to: 

• To reduce labour costs by shifting the manufacturing unit to a backward area where labour was available at a low rate.

• To start manufacturing solar water heaters and reduce the production of electric water heaters slowly. This will not only help in covering risks, but will also help in meeting other objectives too. • It also decided to ensure proper arrangement of things, i.e. materials, tools etc and a fixed place for every employee to increase productivity and efficiency and minimization of wastage of time and cost.  

a. Identify and explain the objectives of management discussed above giving 3 examples of each. b. Identify the principle of Fayol that has not been followed in M Ltd. What are the benefits of following this principle and the adverse effects of not following this principle?   (6)

Share capital- practice questions

Q.1 X Ltd issued 5000 equity shares of rupees hundred each at Rs.120,face value was Rs.100 company received applications for6000 equity shares allotment was made to the applicants of 5500 shares remaining applicants sent a letter of regret. A shareholder who was having 500 shares failed to pay the allotment and calls. Amount was paid Rs.50 on application Rs.40 on allotment and balance on call. The shares were reissued at the rate Rs.90 per share.pass necessary journal entries in the books of the company.

Q.2 X Ltd purchase running business of while Ltd for a consideration of Rs.16 lakh. Company paid the amount Rs.5 lakh but draft and the balance amount by issuing equity shares of rupees hundred eachat 10% security premium. Company acquired the following assets and liabilities machinery Rs.3 lakh, plant Rs.5 lakh, debtors Rs.2 lakh, Furniture Rs.5 lakh, creditors Rs.2 lakh, outstanding expenses Rs.2 lakh. Pass necessary journal entries.
Q.3 Rajesh Ltd took over the assets of Rs.7 lakh 20,000 and creditors of Rs.1 lakh offRohan Ltd for a sum of Rs.6 lakh payable 10% by a cheque and the balance by issue of fully paid equity shares of Rs.10 each. Pass necessary journal entries.

Q.4 be limited issued shares of Rs.10 lakh of Rs.10 each at a premium of Rs.10 per share. Amount was payable 20% on application 40% on allotment and balance with call. Half of the premium Call with allotment and balance with call. Company received application for 1.6 lakh shares.Pro rata allotment was made to the applicant of 1.4 lakh applicants. Remaining applications rejected. Shareholder having 500 shares fail to pay allotment call. A shareholder who applied for 700 sharesfail to pay allotment. His shares were forfeited before the call was made. All the shares were issued at Rs.12 per share. Pass necessary Journal entries.

Q.5 J Ltd invited application for issuing 50,000 equity shares of Rs.10 each at par the amount was payable as follows.
On application – Rs.2 per share, on allotment – Rs.4 per share, and on the first and final call – balance amount the issue was oversubscribed three  times. Application for 30% shares what reject it and money refunded. Allotment was made to the remaining applicants as follows,
(1)Applications 80,000–40,000 allotted, (2)applications 25,000–10,000 allotted.
Exes money paid by applicants who were allotted shares was adjusted to words Sam due on allotment.
Deepak, a shareholder belonging to category one who had applied for 1000 shares, failed to pay the allotment money. Raju, a shareholder holding 100 shares, also failed to pay allotment money. Raju belong to category second. Shares of both Deepak and Raju were forfeited immediately after allotment. Afterwords first and final call was made and duly received.The forfeited shares of the plane Raju worry issued at Rs.11 per share fully paid-up pass necessary journal entries for the about transactions in the books of the company.

Q.6 do you Limited made an issue of one lakh equity shares of Rs.10 each at a premium of 20% payable as follows, on application – Rs.2.5 Per share, on allotment Rs.4.5 per share and on the first and final call balance. Application was received for two lakh equity shares and the directors madePro  Rata allotment. Rae know who had applied for 800 shares did not pay the allotment and final call money. As a result of shares were forfeited. Later on all the shares were reissued at Rs.8 per share fully paid up. Pass necessary journal entries.

Q.7 while Ltd acquired running business of Black Ltd consideration was payable in cash Rs.6 lakh, and the equity shares of rupees hundred eachat 20% premium. Assets and liabilities were acquired as follows,
Machinery Rs.5 lakh, plant Rs.3 lakh, patents Rs.2 lakh, trademark Rs.1 lakh, furniture Rs.7 lakh, debtors Rs.3 lakh, creditorsRs.5 lakh, there was a provision for doubtful debts Rs.50,000 in the books of accounts. Pass necessary Journal entries in the books of company for the acquisition and payment. Show your working clearly for the calculation of purchase consideration.

Chapter-12 Consumer protection

Case Studies and Application based questions

Ch-12( CONSUMER PROTECTION)

1. On Sonika’s birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated buy the shopkeeper. So, she filed a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further. Can Sonika appeal against the decision of the district forum? Give reason in support of your answer. [1] CBSE,DELHI 2015

2. Himanshu purchased a new car from 'Galaxy Motors' for ` 25 lakhs. He was offered free insurance for the first year and three free servicing to be availed after the car had covered 5,000 km, 10,000 km and 15,000 km respectively. When Himanshu took the car for the first free servicing, he was told that the car was not new and first service had already been availed on this car. He felt cheated and filed a complaint in the State Commission. Being not satisfied with the decision of the State Commission, after two months he decided to file an appeal against it. Can Himanshu appeal against the decision of the State Commission? Give reason in support of your answer. . [1] CBSE,DELHI 2015

3. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given on the label were not legible. He complained about it to the company. The company sent a written apology stating that they will make sure that existing packets are withdrawn from the market and new packets with legible labels are soon made available. State the consumer right which Manuj exercised. [1] CBSE,DELHI 2016

4. Suman bought a box of cheese of a reputed brand from a local shopkeeper. On opening the box she found a piece of stone in the cheese. She reported the matter to the shopkeeper who forwarded her complaint to the concerned company. Within a week the representative of the company visited Suman’s residence with an apology and as a replacement offered her a new cheese pack with four other varieties of cheese as compensation for the inconvenience to her. State the consumer right which Suman exercised. [1] CBSE,OD 2016

5. Manvendra always went to a specific shop to buy all consumable and non-consumable goods. In this shop variety of products of different brands were displayed nicely and the sales person available also gave good sales presentation if required. But this shop was quite far off from his residence. His friend Annant always wondered why Manvendra wastes so much time in. going to that shop where as there were many big brand shops situated near his residence having consumable and non-consumable goods. Annant asked Manvendra the reason of going to that particular shop. Manvendra told that he was exercising one of his ‘Rights’ which he could not exercise in nearby big brand shops. State the consumer's right which Manvendra had exercised. [1] CBSE,FOREIGN 2016

6. On the eve of Diwali Ravi purchased two kilograms of sweets from Nandan Sweets. On consumption of sweets his wife fell sick and was to be hospitalized. Ravi wanted to file a case in the consumer forum but could not do so because he did not have any proof of buying the sweets from Nandan sweets. Name the document that Ravi could had obtained for filing the complaint in the consumer forum. . [1] CBSE, DELHICOMPTT. 2015

7. Pankaj purchased a car from 'Abhishek Motors' for Rs. 50 lakhs. The company offered many attractive gifts to Pankaj like - free insurance for first two years, free pick-up and drop facilities for free servicing up to 20,000 km, etc. But after a few days Pankaj noticed that the pick-up of the car was not good and there was some problems in the engine. The company serviced the car free of cost but even then Pankaj was not satisfied with its performance. 'Abhishek Motors' is not giving him the due response. So he filed a complaint in the State Commission but was not satisfied with its decision also. He was very much disturbed and after two months decided to appeal against it. Can Pankaj appeal against the decision of the State Commission? Give reason in support of your answer. [1] CBSE,FOREIGN 2015

8. On Sonika's birthday her mother gave her a pair of gold earrings. After one month Sonika observed that the ear-rings are losing their shine. She checked the mark on the ear-rings and found that it was not a proper Hallmark and her mother had been cheated by the shopkeeper. So, she find a complaint in the district forum which rejected it. Not satisfied by the decision of district forum, she was very much disturbed and after two months decided to appeal further.
Can Sonika appeal against the decision of the district forum? Give reason in support of your answer. [1] CBSE,DELHI 2015

9. The consumer has the right to acquire knowledge and to be a well informed consumer throughout life.’ State what type of knowledge is required by the consumer in the above stated ‘Right’. [1] CBSE, DELHI. 2014

10. Under three-tier machinery where can a legal heir or representative of a deceased consumer file a complaint where the compensation claim is Rs 25 lakhs? [3] CBSE, DELHI. 2011

11. Pragya bought an iron of a reputed brand for Rs 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her “Right”. Identify the “Right” under which she can be protected. [1] CBSE,OD 2011

12. Reena purchased one litre of pure Deshi Ghee from a shopkeeper. After using it she had a doubt that it is adulterated. She sent it for a laboratory test which confirmed that the Ghee is adulterated. State any six reliefs available to Reena, if she complaints and the consumer court is satisfied about the genuineness of the complaint. [3] CBSE, DELHI. 2011

13. .Prakhar purchased an ISI mark electric iron from 'Bharat Electricals'. While using he found that it is not working properly. He approached the seller and complained for the same. The seller satisfies Prakhar by saying that he will ask the manufacturer to replace this iron. The manufacturer refused and Bharat Electricals decided to file complaint in the customer court.

Can 'Bharat Electricals' do this? Why? Also explain 'who is the consumer as per Consumer Protection Act, 1986 [3] CBSE, DELHI. 2011

14. Mukul purchased a house for Rupees 30 lakhs from a housing company and found it being defective. Despite many complaints the defect was not rectified. He filed a complaint in the state commission but was not satisfied with the order. Where can be appeal and in how many days.

15. A farmer purchased seeds worth Rs. 20,000 from Bharat Fertilisers” for agricultural purposes. The seeds were very costly as they were of hybrid variety. After 6 months he noticed that the agricultural produce was not up to expected standard. He reported this matter to the seller, but he refused to accept the liability. Mention the redressal agency in which he can file a complaint.

16. On securing 95% marks in class XII, Ram’s father gifted him a gold chain. But after 2 months, Ram noticed that the gold chain was losingthe shine. He checked the mark on chain was losing the shine. He checked the mark on chain and found that it was not a proper hall mark (BIS). He lodged a complaint in the district forum, which rejected it. Not satisfied by the decision of district forum, he was very much disturbed and after 45 days, he decided to appeal further.

Can Ram appeal against the decision of the district forum? Give reasons in support of your answer.

17. Tanya purchased some household goods from a “General Store’  onreaching home, she found that one face cream, (Rs. 250) had not been billed. She became happy that, she got it without paying for. After checking the expiry date and other details, she started using it. Her face burnt due to the use of cream.

(1) Where should Tanya file the complaint for the for the cream? Justify. 

(2) Which values have been violated here?

18. ‘Sehaj bought Teak wood furniture for his drawing room from “Akshay Decors” of Kirti Nagar, Delhi for Rs. 4 lakhs. At the time of purchase the firm assured sehaj about the best quality of the said furniture and gave 2 years warranty starting that if anything goes wrong, the firm shall replace it with a new one or refund the purchase amount. But the dining table and chairs started developing cracks at various places and the polish’ became very dull within 30 days of purchase. Sehaj reported the matters to the firm and requested a number of times to replace the furniture. The firm neither paid attention to these requests nor replaced the furniture.

(1) Identity the consumer rights which have been violated by the furniture manufacturer.

(2) Where can Sehaj lodge complaint for this?

(3) Mention the values (2) which have been violated by the firm.