Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

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Bihar Board 12th Business Studies Model Papers

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Time : 3 Hour 15 Min
Full Marks : 100

Instructions

  1. Candidates are required to give their answers in their own words as far as practicable.
  2. Figures in the right hand margin indicate full marks.
  3. 15 minutes of extra time has been allotted for the candidate to read the questions carefull.
  4. This question paper has two sections : Section -A and Section-B.
  5. In Section-A, there are 50 objective type questions which are compulsory, each carrying 1 mark. Darken the circle with black/blue ball pen against the correct option on OMR Sheet provided to you. Do not use Whitener/ Liquid/Blade/Nail on OMR Sheet, otherwise the result will be treated as invalid.
  6. In Section-B, there are 25 Short answer type questions, out of which any 15 questions are to be answered. Each question carries 2 marks. Apart from this, there are 08 Long answer type questions, out-of which any 04 of them are to be answered. Each question carries 5 marks.
  7. Use of any electronic device is prohibited.

Objective Type Questions

Question No. 1 to 50 have four options provided, out of which only one is correct. You have to mark, your selected option, on the OMR-Sheet. Each question carries 1 (one) mark. [50 x 1 = 50]

Question 1.
The essence of management is :-
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) All of these
Answer:
(a) Co-ordination

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 2.
New Economic Ploicy is :-
(a) Liberalisation
(b) Privatisation
(c) Globalisation
(d) All of these
Answer:
(d) All of these

Question 3.
The organization steps are :-
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(b) 4

Question 4.
Training is a process
(a) Current
(b) Regular
(c) Continuous
(d) All of these
Answer:
(d) All of these

Question 5.
Controlling is necessary in :-
(a) Small enterprise
(b) Medium Enterprise
(c) Large Enterprise
(d) All of the above
Answer:
(d) All of the above

Question 6.
Characteristics of a sound financial planning are: –
(a) Simplicity
(b) Liquidity
(c) Economy
(d) All of these
Answer:
(d) All of these

Question 7.
First Function of financial management is :-
(a) Procurement of fund
(b) Financial forecasting
(c) Financial Control
(d) None of these
Answer:
(a) Procurement of fund

Question 8.
Co-ordination is :-
(a) Voluntary
(b) Necessary
(c) Unecessary
(d) Wastage of time
Answer:
(b) Necessary

Question 9.
By Scientific Management profits are :-
(a) Increased
(b) Decreased
(c) Not affected
(d) Revival
Answer:
(a) Increased

Question 10.
Economic Environment ofbusiness is influenced by :
(a) Economic policy
(b) Economic system
(c) Economic development
(d) All of these
Answer:
(d) All of these

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 11.
Staffing is the responsibility of.
(a) Lower management
(b) Middle management
(c) Top management
(d) All of these
Answer:
(d) All of these

Question 12.
According to George R. Terry, The type of planning are :-
(a) 08
(b) 06
(c) 04
(d) 02
Answer:
(d) 02

Question 13.
An organization is not helpful lor :-
(a) Co-ordination
(b) Contributes to morale
(c) Increase in corruption
(d) Incentive to growth
Answer:
(c) Increase in corruption

Question 14.
Employees Training is :-
(a) Necessary
(b) Unnecessary
(c) Compulsory
(d) Wastage of Money
Answer:
(c) Compulsory

Question 15.
Direction is related to employees :-
(a) Top level
(b) Middle level
(c) Lower level
(d) All level of above
Answer:
(d) All level of above

Question 16.
Organising process involves :-
(a) Grouping of indentical work
(b) Division of a work
(c) Assigning work to appropriate persons
(d) All of these
Answer:
(d) All of these

Question 17.
Fixed-capital is required for :-
(a) Payment of routine expenses
(b) Purchase of land
(c) Depositing in bank
(d) Payment to creditors
Answer:
(b) Purchase of land

Question 18.
SEBI is controller of :-
(a) Production
(b) Insider trading
(c) Capital marketing
(d) Government
Answer:
(c) Capital marketing

Question 19.
Entrepreneurship is an effort to create :-
(a) Risk
(b) Profit
(c) Jobs
(d) Business
Answer:
(c) Jobs

Question 20.
Working non-government organization in India is :-
(a) VOICE
(b) Common Cause
(c) A and B both
(d) None of these
Answer:
(c) A and B both

Question 21.
The Advantage of marketing is to :-
(a) Consumers
(b) Businessmen
(c) Manufacturers
(d) All of these
Answer:
(d) All of these

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 22.
Onwner’s Fund does not indued :-
(a) Share Capital
(b) Bank Loan
(c) Reserve Fund
(d) Share Premium
Answer:
(b) Bank Loan

Question 23.
Labelling is :-
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of Money
Answer:
(a) Compulsory

Question 24.
Consumer rights under Consumer Protection Act. are :-
(a) 08
(b) 07
(c) 06
(d) 10
Answer:
(a) 08

Question 25.
Social and economic development of a nation is the result of :-
(a) Entrepreneur
(b) Planning
(c) Operation
(d) Government
Answer:
(a) Entrepreneur

Question 26.
Advertising is done for :-
(a) Development of business
(b) Financial management
(c) Sales promotion
(d) Public relations
Answer:
(c) Sales promotion

Question 27.
Maximum period of treasury bill is :-
(a) One year
(b) Two years
(c) Five years
(d) Ten years
Answer:
(a) One year

Question 28.
Supervision is :-
(a) Necessary
(b) Unnecessary
(c) Wastage of time
(d) None of these
Answer:
(a) Necessary

Question 29.
Controlling is the function of
(a) Supervisor
(b) Sales man
(c) Mariager
(d) Employee
Answer:
(a) Supervisor

Question 30.
Steps Involved in selection process :-
(a) 07
(b) 09
(c) 06
(d) 10
Answer:
(a) 07

Question 31.
Depends on the sweet will of employees :-
(a) Divisional organisation
(b) Formal organisation
(c) Functional organisation
(d) Informal organization
Answer:
(d) Informal organization

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 32.
Planning is not :-
(a) Mental exercise
(b) Forward looking
(c) Wastage of time
(d) Choosing process
Answer:
(d) Choosing process

Question 33.
The need in development of a country is :-
(a) Physical resources
(b) Economic resources
(c) Efficient management
(d) All of these
Answer:
(d) All of these

Question 34
14 principles of management is propounded by :
(a) Henary Feyol
(b) F. W. Taylor
(c) Peter Drucker
(d) A. H. Maslo
Answer:
(a) Henary Feyol

Question 35.
Liberalisation policy in India has been :-
(a) Successful
(b) Unsuccessful
(c) Normal
(d) None of these
Answer:
(a) Successful

Question 36.
Planning is helpful to :-
(a) Achieving objectives
(b) In co-ordination
(c) Effective controlling
(d) All of these
Answer:
(d) All of these

Question 37.
Wages given to workers in Traditional Management are :-
(a) Low
(b) High
(c) Normal
(d) Maximum
Answer:
(d) Maximum

Question 38.
Which of the following is not features of organization : –
(a) Group of Individuals
(b) Group of Machine
(c) A Structure
(d) A process
Answer:
(b) Group of Machine

Question 39.
Objective of employee’s development is :-
(a) Increase in knowledge
(b) Better performance
(c) opportunity of promotions
(d) All of these
Answer:
(d) All of these

Question 40.
Which of the following is not external sources of recruitment: –
(a) Transfer of employees
(b) Direct recruitment
(c) Campus recuitment
(d) Contractual recruitment
Answer:
(a) Transfer of employees

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 41.
Type of communication are :-
(a) Written
(b) verbal
(c) Formal
(d) All of these
Answer:
(c) Formal

Question 42.
The leader possess :-
(a) Intelligence
(b) Foresightness
(c) Self-confidence
(d) Ail of these
Answer:
(d) Ail of these

Question 43.
In- effective communication language should not be :-
(a) Express
(b) Impressive
(c) Ambiguous
(d) Courtesy
Answer:
(d) Courtesy

Question 44.
Control is by employees.
(a) Opposed
(b) Supported
(c) Liked
(d) None of these
Answer:
(a) Opposed

Question 45.
The sources of working capital are :-
(a) Debtors
(b) Bank overdraft
(c) Cash sales
(d) All of these
Answer:
(a) Debtors

Question 46.
Capital market deals in
(a) Short term funds
(b) Medium term funds
(c) Long term funds
(d) None of these
Answer:
(c) Long term funds

Question 47.
Financial manager takes decision as to
(a) Finance
(b) Investment
(c) Dividend
(d) All of above
Answer:
(d) All of above

Question 48.
Consumer Protection Act was passed
(a) In 1886
(b) In 1986
(c) In 1996
(d) In 1997
Answer:
(b) In 1986

Question 49.
In India, entrepreneurial development programmer has been
(a) Successful
(b) Unsuccessful
(c) Need of improvement
(d) None of these
Answer:
(c) Need of improvement

Question 50.
Importance of Marketing concept is for
(a) Society
(b) Consumers
(c) Producers
(d) All of above
Answer:
(d) All of above

Non-Objective Type Questions

Short Answer Type Questions

Question no. 1 to 25 are Short answer type questions. Answer any 15 out of them. Each question carries 2 marks. (15 x 3 = 30)

Question 1.
Write the name of the level of manage-ment.
Answer:
Following are the level of management :

  1. Top Level Management
  2. Middle Level Management
  3. Lower Level Management.

Question 2.
Write any three points of the nautre of principles of management.
Answer:
Management of Principles : These are the statement of fundamental truth based on creation and systematic analysis which provides guidlines for managerial decision making and action.
Nature and charecteristics of management Principles are the same which are following :

  1. Flexibility
  2. Univarsal application
  3. lack of humanimity
  4. Beharourial.

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 3.
Write the name of any four factors of business environment.
Answer:
Principles of Management :

  1. Division of work : This means assigning the work to a person for which he is best suited. This principle is equally applicable to all hands of work managerial as well as technical.
  2. Unity of command : This means that sub-ordinates should be receive orders from one senior only. A sub-ordinate receiving orders from two or more bosses can satisfy none.
  3. Dicipline : Disciplines mean the observance of rules and regulations this principle emphasises the obedience on the part of the sub-ordinates.

Question 4.
Write name of any four merits of scientific management.
Answer:
Following are the merit of scientific management :

  1. Reduction in the cost of production.
  2. Better quality products.
  3. Benefits of division of labour.
  4. Avoidance of disputes between labour and management.

Question 5.
State any two types of planning on the basis of level of management.
Answer:
Types of planning on the basis of level of management are discussed below :

  1. Operational plan
  2. Tactical plan.
  3. Strategical plan

Question 6.
State any four points of importance of organization.
Answer:
Importance of organisation are discussed below :

  1. Makes the management simple and efficient.
  2. Encourage specilization.
  3. Improves constructive tainking.
  4. Increase productivity.

Question 7.
Write the name of any five advantage of organization in business.
Answer:
Advantages of organisation are following :

  1. Specilization
  2. Role clarity
  3. Clarifies authority and responsibility.
  4. Avoiding duplication of work.
  5. Co-ordination.

Question 8.
State any three qualities of a good leader.
Answer:
Qualities of a good leader are mention below:

  1. Physical features
  2. Knowledge
  3. Integrity
  4. Communication skills.
  5. Motivation skills.
  6. Initiative
  7. Self confidence
  8. Decisiveness
  9. Social skills.

Question 9.
State name of any two methods of ‘on-the- job training.
Answer:
Following are the two methods of “on job training”.

  1. Internship training method.
  2. Case study method.

Question 10.
State any three barriers of. communication.
Answer:
Effective communication is essential for effective and efficient management of an organisation.
There are a number of barriers to effective communications,
such as :

  1. Semantic barriers,
  2. Psychological or Emotional barriers,
  3. Organisational barriers
  4. Personal barriers.

Question 11.
State any two headings of the importance of supervision.
Answer:
Following are the two importance of supervision :

  1. Optimum utilization of Resoures : Supervision develops work skills which help in optimum utilization of resources.
  2. Controlling performance : Supervision insures performance of work as per the targets.
    Supervisior assumes responsibility for the accomplish ment of task. Undertaken and motivates his fellow workers.

Question 12.
Write any four headings of the importance of control in management.
Answer:
Following are the four heading of importance of control in management :

  1. Control is basis of planning.
  2. Facilitates decision making.
  3. Helps in improving efficiency.
  4. Appraisal of performance.

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 13.
Write name of any three methods/ techniques of control.
Answer:
Following are the methods/Techniques of control :

  1. Budgetary control.
  2. Break-even analysis.
  3. Statistical Data.
  4. Special reports and Analysis.
  5. Operational Audit or Internal Audit.
  6. Personal Observation.
  7. Policies, Procedures and Instructions.
  8. Ratio Analysis.
  9. Other Techniques.

Question 14.
Write the name of any three financial decisions taken by management.
Answer:
The three main financial decision which are generally taken by a finance manager are as under.,

  1. Investment Decision.
  2. Financial Decision.
  3. Dividend decision.

Question 15.
Write the name of any four factors which include in capital structure.
Answer:
Following are the four factors which include in capital structure :

  1. Position of cash flow.
  2. Cost of capital.
  3. Return on investment.
  4. Risk consideration.

Question 16.
Name the two factors affecting capital structure.
Answer:
Following are the two factors affecting capital structure.

  1. Cost of capital.
  2. Risk consideration.

Question 17.
State any four functions of financial market.
Answer:
Following are the four important functions of financial market :

  1. Mobilisation of savings and channelising them into most productive uses.
  2. Informational role for price recovery.
  3.  Providing liquidity to financial assets.
  4. Reducing the cost of transactions.

Question 18.
Write the two headings of the function of SEBI.
Answer:
Following are the two heading of SEBI functions :

  1. Protective functinsz.
  2. Development functions.

Question 19.
Name any four media of advertisement.
Answer:
Following are the four medium of advertising:

  1. Newspapers
  2. Magazines
  3. Television
  4. Radio.

Question 20.
State any two characteristics of a good brand.
Answer:
Following are the two features of good brand :

  1. It should be distinctive.
  2. It should be appropreate.

Question 21.
State any two objectives of consumer protection programme.
Answer:
The main two objectives of consumer protection act are as below :

  1. To ensure fair, competitive and responsible markets that work well for consumers and promote ethical business practice.
  2. To promote and protect the economics interests of consumers.

Question 22.
State any two characteristics of entrepreneurship.
Answer:

  1. Innovation : Any innovative work is entrepreneurship. New resources, new products, new technology, new utilities, new managerial skills etc., come in the perview of entrepreneurship. Thus, the basic feature of entrepreneurship is innovation.
  2. A high achievement function : Achievement orientation is the most important factor for explaining economic behaviour. ‘Doing things in a new and a better way’ and ‘decision-making under uncertainty’, can be regarded as two important features of entrepreneurship.

Question 23.
Name the needs which should be satisfied first.
Answer:
Following are five basic needs which should be satisfied first.

  1. Physological needs.
  2. Safety needs.
  3. Love and belongingness needs.
  4. Esteem needs.
  5. Self actualization needs.

Question 24.
Write any three merits of advertising.
Answer:
Following are the merits of Advertising :

  1. Introduces new product in the market.
  2. Expansion of the market.
  3. Increased sales.
  4. Fight competition.
  5. Enhance goodwill.
  6. Elimination of middlemen.
  7. Better quality products.
  8. Educate the consumers.

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 25.
Name any three sourcess of raising fixed capital.
Answer:
Following are the three sources of raising fixed capital :

  1. Issue of equity and preference shares.
  2. Issue of Debentures.
  3. Issue of Right shares.
  4. Retained Earning.

Long Answer Type Questions

Question no. 26 to 33 are Long answer type questions. Answer any 4 of them. Each question carries 5 marks. (4 x 5 = 20)

Question 26.
What is divisional organization ? State its main characteristics.
Answer:
Divisional Organisation/Departmentation: A department is a work group or unit which is created for performing certain functions of .similar nature. The process of division of the enterprise into different parts is broadly called departmentation.

The various parts or divisions are called as departments. It leads to grouping of both functions and personnel who are assigned to carry out allocated functions. It helps in creating a sound organisation structure. There can be many methods of departmentation. Every enterprise choose the appropriate basis or method depending upon its objectives, size, etc.

Merits :

  1. This arrangement makes effective control possible
  2. This arrangement is based on the principle of specialisation
  3. It estrablishes co-ordination on the departmental level.

Demerits :

  1. The weakness of one department affects the other departments
  2. All the departments function according to their sweet will making inter-departmental co-ordination difficult
  3. This system is q hurdle in the way of the complete development of the employees.

Question 27.
Explain the importance of decentralization.
Answer:
Decentralisation refers to the systematic effort to delegate to the lowest level all authority except which can be exercised at the central point.

The following factors highlight its importance :

  1. Greatern Motivation : Decentralisation improves the morale and motivation of Subordinates which is reflected in better work performance.
  2. Develops initiative among subordinates : Decentralisation helps to promote self-reliance and confidence amongst the subordinates. This is because when lower managerial levels are given freedom to take their own decisions, they learn to depend on their own judgement. It helps to promote initiative and creativity among them.
  3. Develops managerial talent for the future : As a result of decentralisation, employees get more opportunities to develop new skills. It makes them better future managers.
  4. Quick decision making : Decentralisation in an organisation, provides more freedom to lower level managers to take their own decisions. There is no need to get approval from higher level. It helps in quick and better decision making.
  5. Facilitates growth and expansion : Decentralisation facilitates organisational growth through expansion and diversification.

Question 28.
Explain in brief the various methods of training.
Answer:
There are various methods of training. These are broadly categories into two groups :

  • On the job.
  • off-the job methods.

On the job methods :

  1. Apprenticeship programmes: Apprenticeship programmes put the trainee under the guidance of master worker. These are designed to acquire a higher level of skill.
  2. Coaching : In this method, the superior guides and instructs the trainee as a coach. The coach or counseler sets mutually agreed upon goals.
  3. Internship training : It is a joint programme of training in which educational instigutions and business firms cooperate.
  4. Job rotation : This kind of training involves shifiting the trainee from one department to another of from or one job to another.

Off the job methods:

  1. Class room lectures/conferences: The lecture or conference approach is well adapted to conveying specific information rules, procedures or methods.
  2. Films : They can provide information and explicitly demonstrate skills that are not easily represened by the other techniques.
  3. Case study : Taken from actual experiences of organisations, cases represent attempts to describe,
    as accruetly as possible real problems that managers have faced.
  4. Computer modelling: It simulates the work environment by programming a computer to imitate some of the realities of the job and allows learning to take place without the risk or high costs.
  5. Vestibule training : Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor.
  6. Programmed instruction : The method incorporates a prearranged and proposed acuisition of some specific skills or general knowledge.

Question 29.
Discuss the importance of directing.
Answer:
Following are the importance of Directing :

  1. Managerial function : Directing is a managerial function. It is through directing, the managers guides, inspires and leads the employees to perform the task assigned.
  2. Continuing function : Directing is a continuous function. The managers continuously guide, inspire and lead the employees to get the work done.
  3. Integrating process : Directing is an integrating process. It integrates the efforts of the employees to achieve the organisational objectives. It provides direction to their efforts. In the absence of direction, their efforts may not focus or concentrate on the objectives of the organisation and may remain inactive.
  4. Pervasive function : Directing is a responsibility of all managers. It is performed at all levels of the organisation. Directing flow from top to lower levels of management.
  5. Creative function : Driecting is a creative function. It converts paper plans into reality by initiating, guiding, leading and supervising.

Question 30.
Explain any four needs that motivate an employee to work.
Answer:
Froms of Non-financial Incentives: In order to motivate the employees management may use the following forms of non-financial incentives :

(i) Praise of appreciation of work done : Recognition of satisfactory performance acts as non- financial incentive since it satisfies one’s ego needs. However, this incentive should be used with great care because praising an incompetent employee creates resentment among competent employees.

(ii) Workers’ participation in management : Participation in management provides strong motivation to the employees. Gives them psychological satisfaction if there voice is header participants in management provides for two ways communication and so imbibes a sense of importance.

(iii) Suggestion system : Suggestion system is an incentive with satisfies many needs of the employees. Many organisations which use the suggestion system make use of cash awards for useful suggestion. They sometimes publish the workers name with the photograph in the company magazine. This motivates the employees to be in search for something which may be of greater use to the organisation.

(iv) Competition : If there is healthy competition among individual employees, group of employees, it leads them to achieve their persoanl or group goals. Hence, competition acts as none financial incentives.

(v) Opportunity for growth : Opportunity for growth is another kind of intensive. If the employees are provide opportunity for their advertisement and growth to develop their personality, they feel very much satisfied and more communicate to organisation goals.

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 31.
Explain the functions of financial manager.
Answer:
Finances are the cornerstone of every business. The prime goal of my organization would be to garner huge profits and this is only possibe withh proper management of the finance. Therefore, effectual finance Management is imperative for every organization as it leads to enhanced profits are reduction in the operational cost.

A finance manger plays an impoertant role in the mangement of a business organbization as he manges all the activites related to finance. There are many functions that a financial manager is expected to perform .
These include.

1. Estimating the amount of capital required for the proper functioning of the business : The most basic function of a finance manager is the estimation of the capital because funds are required for both long term and short term. The firm requires capital so that it can its liability with no delay, benefit from early business opportunites, pay for resources, op-erational cost etc.

2. Devising a capital structure : For the determining the capital structure, the finance manager must ensure that the earning rate is higher than the rate of interest on the borrowed amount.

3. Sources to raise funds : For proper financial management, it is imperative to find can raise funds. The organisatiion can raise funds through different sources including equity and preference shares, debentures, banks, financial institutions other souces.

4. Acquisition of funds : While acquiring funds, the financial manager needs to follow some basic step such as legal formalities and documentation’ required.

Question 32.
What is working capital ? How is it calculated ?
Answer:
Meaning of Working Capital : Working capital refers to that capital which is utilized for meeting current liabilities by cash payments in the ordinary course of business. In other words, the working capital is invested in raw materials, in stock of partly finished goods in meeting day-to-day or current exenditure on salaries, wages, rent, rates, taxes, insurance, advertisement etc. in cash.
Determinants of Working Capital
(1) Size of Business : Larger of the business enterprise, greater would be the need for working capital. The size of a business may be measured in terms of scale of its business operations.

(2) Production Cycle : Production cycle means the time-span between the purchase of raw materials and its conversion into finished goods. The longer the production cycle, the larger will be the need for working capital.

(3) Production Policy : The need for working capital is also determined by production policy. The demand for certain products (such as woolen garments) is seasonal. Two type of production policies may be adopted for such products.

(4) Availability of Raw Material : If the raw material required by the firm is available easily on a continuous basis, there will be no need to keep a large inventory of such materials and hence the requirement of working capital will be less. On the other hand, if the supply of raw material is irregular, the firm will be compelled to keep an excessive inventory of such materials which will result in high level of working capital.

(5) Availability of Credit from Banks :If a firm can get easy bank credit facility in case of need, it will operate with less working capital

Bihar Board 12th Business Studies Model Question Paper 1 in English Medium

Question 33.
Explain any five functions of marketing.
Answer:
Function of Marketing:
(i) Gatrhering and analysing market information : An important function of a marketer is gather and analyse market information. It is necessary to identify the needs the customers and to take various decisions for the successful marketing of the products and services.

(ii) Marketing planning : Marketing manager has to develop appropriate marketing plans to achieve the marketing objectives of the firm.

(iii) Customers support services : Another very important function of marketing management relates to developing customers support serves such as procuring credit service after sales services, handling customer complaints, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers.

(iv) Physical distributions : A very important function of marketing is to arrange for distribution o f goods and services. Physical distribution includes decisions regarding choice of channels of distribution, maintaining inventory, storange, warehousing etc.

(v) Utilising funds : It is the task of the finance manager to ensune that the funds are inuested wisely so as to garner maximum roll.

(vi) Disposing of Profits : Effectcial finance management involves Inalysing the funds that can be invested for proper working of the organization and distributing the rest amoung the shareholders.

(vii) A financial manager needs to manage the cash in such a way that there its neither shortage nor surplus and decily expenses can be met without any hassles.

(viii) Finance Management involves avaluation and control of the financial perform once of an organization