Bihar Board 12th Business Studies Model Question Paper 3 in English Medium

Bihar Board 12th Business Studies Model Papers

Bihar Board 12th Business Studies Model Question Paper 3 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 = 50]

Question 1.
“A Plan is a trap to capture the future.” This statement is of
(a) Newman
(b) Hurley
(c) Allen
(d) Terry
Answer:
(c) Allen

Question 2.
According to George R. Terry, the types of planning are-
(a) 08
(b) 06
(c) 04
(d) 02
Answer:
(c) 04

Question 3.
Planning is for
(a) Present
(b) Future
(c) Past
(d) All
Answer:
(b) Future

Question 4.
Planning is
(a) Necessary
(b) Un necessary
(c) Wastage of time
(d) Wastage of money
Answer:
(a) Necessary

Question 5.
Of all mangerial activites planning is the
(a) Beginning
(b) End
(c) Beginning and End
(d) None of Those
Answer:
(a) Beginning

Question 6.
Father of scientific management was-
(a) Taylor
(b) Urbick
(c) Henry Fayol
(d) Kimbell
Answer:
(a) Taylor

Question 7.
Which of the following statement is inconsistent ?
(a) Management is purposeful
(b) Instinct process
(c) Universal
(d) Not separate from ownership
Answer:
(b) Instinct process

Question 8.
Henry Fayol’s principles of management are-
(a) 05
(b) 10
(c) 14
(d) 16
Answer:
(c) 14

Question 9.
When scientific management was introduced ?
(a) 1913
(b) 1832
(c) 1903
(d) 1920
Answer:
(a) 1913

Question 10.
By scientific management workers get-
(a) Advantage
(b) Disadvantage
(c) None
(d) Both Advantage & Disadvantage
Answer:
(a) Advantage

Question 11.
Wages given to workers in traditional management was-
(a) Low
(b) High
(c) Maximum
(d) Normal
Answer:
(a) Low

Question 12.
The experiment done by Taylor under scientific management were-
(a) Motion Study
(b) Fatigue Study
(c) Time Study
(d) All
Answer:
(d) All

Question 13.
Mental revolution is the essence of-
(a) Scientific Management
(b) Combination
(c) Rationalisation
(d) Profession
Answer:
(a) Scientific Management

Question 14.
Henry Fayol was born in-
(a) Japan
(b) France
(c) Germany
(d) America
Answer:
(b) France

Question 15.
Principles of management are-
(a) Universal
(b) Flexible
(c) Dynamic
(d) All of these
Answer:
(c) Dynamic

Question 16.
Development of employees involve-
(a) Transfer
(b) Promotion
(c) Training
(d) All
Answer:
(d) All

Question 17.
Methods of Training are-
(a) Conference
(b) Lectures
(c) Apprenticeship
(d) All of the above
Answer:
(d) All of the above

Question 18.
Employees training is-
(a) Unnecessary
(b) Necessary
(c) Compulsory
(d) Luxury
Answer:
(c) Compulsory

Question 19.
Money spent on staffing is-
(a) Necessary
(b) Wastage
(c) Investment
(d) None of these
Answer:
(c) Investment

Question 20.
Human Resource Development includes-
(a) Recruitment
(b) Selection
(c) Training
(d) All of these
Answer:
(d) All of these

Question 21.
Main elements of direction are-
(a) 02
(b) 03
(c) 04
(d) 06
Answer:
(c) 04

Question 22.
Direction is related to employees
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) All Level
Answer:
(d) All Level

Question 23.
Direction is
(a) Compulsory
(b) Necesssary
(c) Unnecessary
(d) Wastage of time
Answer:
(a) Compulsory

Question 24.
Supervision is
(a) Necessary
(b) un nesessary
(c) Wastage of time
(d) None of these
Answer:
(a) Necessary

Question 25.
For Stock exchange the service of SEBI is
(a) Volntary
(b) Nessary
(c) un necessary
(d) Compulsory
Answer:
(d) Compulsory

Question 26.
Marketing includes-
(a) Purchase
(b) Sale
(c) Warehousing
(d) All of the above
Answer:
(d) All of the above

Question 27.
Which one is not the consumer product among the following ?
(a) Raw materials
(b) Refrigerator
(c) Old statues
(d) Shoes
Answer:
(c) Old statues

Question 28.
Essentials of a good brand are-
(a) Short name
(b) Easy to remember
(c) Attractive design
(d) All of these
Answer:
(d) All of these

Question 29.
Labelling is compulsory in packed consumer products- ”
(a) All
(b) A Few
(c) None
(d) None of the above
Answer:
(a) All

Question 30.
Co-ordination is-
(a) Voluntary
(b) Necessary
(c) Unnecessary
(d) Wastage of time
Answer:
(b) Necessary

Question 31.
Co-ordination is established by-
(a) Highest level management
(b) Medium level management
(c) Low level management
(d) None of these
Answer:
(c) Low level management

Question 32.
According to George R. Terry the functions of management are-
(a) 02
(b) 04
(c) 06
(d) 07
Answer:
(b) 04

Question 31.
Co-ordination is established by-
(a) Highest level management
(b) Medium level management
(c) Low level management
(d) None of these
Answer:
(c) Low level management

Question 32.
According to George R. Terry the functions of management are-
(a) 02
(b) 04
(c) 06
(d) 07
Answer:
(b) 04

Question 33.
The essence of management is-
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) Controlling
Answer:
(a) Co-ordination

Question 34.
The nature of management is-
(a) As an inborn ability
(b) As an acquired ability
(c) As inborn ability & as an acquired Ability both
(d) None of these
Answer:
(a) As an inborn ability

Question 35.
Management is,
(a) Art
(b) Science
(c) Art and science both
(d) Profession
Answer:
(c) Art and science both

Question 36.
Which of the following attitudes is not generally associated with successful entreprenenship ?
(a) Competition and co-operation
(b) Desire to influence others
(c) Innovation and product improvements
(d) Staticity in business
Answer:
(b) Desire to influence others

Question 37.
Physical distribution does not include-
(a) Transportation
(b) Financing
(c) Warehousing
(d) Inventory control
Answer:
(b) Financing

Question 38.
Which is not an element of promotion mix ?
(a) Advertisements
(b) Personal selling
(c) Sales promotion
(d) Product development
Answer:
(a) Advertisements

Question 39.
Advertisement is deemed as-
(a) Wastage
(b) Investments
(c) Luxury
(d) None of these
Answer:
(b) Investments

Question 40.
Objectives of sales promotion are-
(a) To introduce with new products only
(b) To attract new customers only
(c) To counter competitor only
(d) All the above
Answer:
(d) All the above

Question 41.
New economic policy was declared in
(a) July 1990
(b) July 1991
(c) July 1992
(d) July 2001
Answer:
(b) July 1991

Question 42.
National Commission can settle disputes
(a) up to Rs.5 lakhs
(b) up to Rs.10 lakhs
(c) up to Rs.15 lakhs
(d) above Rs.l crore
Answer:
(c) up to Rs.15 lakhs

Question 43.
Management is a profession.” This statement is of
(a) George R. Terry
(b) American Management Association
(c) Henry Fayol
(d) None of these
Answer:
(b) American Management Association

Question 44.
Control is the _________ function of the management.
(a) first
(b) Last
(c) Third
(d) second
Answer:
(b) Last

Question 45.
Which of the following is related with social environment ?
(a) Composition of families
(b) Consumer Protection Act
(c) Business Law
(d) Privatisation
Answer:
(a) Composition of families

Question 46.
The feature of a good plan is
(a) Expensive
(b) Time consuming
(c) Flexible
(d) Rigid
Answer:
(b) Time consuming

Question 47.
Co-ordination is established by
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) none of these
Answer:
(b) Middle level management

Question 48.
Marketing concept is
(a) Production co-oriented
(b) Sales – oriented
(c) Customer- oriented
(d) All of these
Answer:
(d) All of these

Question 49.
Fixed capital is needed for period.
(a) short period
(b) long period
(c) both (a) and (b)
(d) none of these
Answer:
(b) long period

Question 50.
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

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.
What is meant by recruitment ? How is it different from selection ?
Answer:
Recruitment-This means to search prospective candidates and to stimulate them to apply for jobs in an organisation.
Distinction between selection and recruitment :

1. Recruitment is inviting and procuring application where as selection is processing and screening applicants
2. Recruitment is a medium while selection is the end results
3. Recruitment is a positive process, while selection is a negative one.
4. The process of selection starts, where the process of recruitment ends.

Question 2.
What is critical point control ?
Answer:
Critical point control-Control can not be excercised at all points of an activity, as it may be time-consuming and very expensive. Managers should identify the important or critical points which must be looked after. If these critical points or Key Results Areas (KRAs) are properly controlled, the entire activity would be deemed to have been controlled. In a labour-oriented industry, for example, 10% increase in wages will be more deterimental for the enterprise than .the amount to be spent for the purchase of furniture and crockery for the worker’s canteen.

Question 3.
What are the objectives of SEBI ?
Answer:
The followings are the objectives of SEBI:

1. To protect the investers’ interest in securities
2. To promote and develop securities market
3. To develop code of conduct for intermediaries like brokers, merchant bankers etc.
4. To mobilise and allocate resources through securities market
5. To provide facilitate of competitive, professionalized and expanding market to the intermediaries.

Question 4.
How does planning make controlling possible ?
Answer:
Planning make controlling possible by using these types of plans :

1. Corporate plans
2. Functional Plans
3. Short – term plans
4. Long – term plans
5. Standing plans

Question 5.
Give suggestions to make advertising ‘ more effective.
Answer:
Advertising is the preparation and communication of some message to the desired population through a medium/media,regarding a product, service or idea for some consideration.
Consider following term to making advertising more effective :

1. Maintenance of quality
2. Helps in making decision
3. Educating customers
4. Aids press
5. Encouragement to research
6. Higher standard of living
7. Creation of goodwill

Question 6.
Indian Government has made many laws to secure the interests of consumers. Discuss.
Answer:
Some important Consumer Protection Act made by Indian Government as discussed below-

1. The Prevention of Black Marketing and Maintenance of Supplies of Essential Commodities Act., 1980-This Act prevents social and economic evil of black marketing. Any person engaged in black marketing can be detained under this Act.
2. The Essential Commodities Act, 1956-This Act provides for the control of production, supply, price and distribution of essential commodities, like wheat, rice, sugar, oil etc.
3. The Standard of Weights and Measures Act, 1956-This Act lays down that standards of measurement must be set whenever required. Inspection of weights and measures should be undertaken as some traders find ways of weighing or measuring less or weighing the containers along with the goods.
4. The Competition Act, 2002-This Act has been substituted with the Monopolies and Restrictive Trade practices Act, 1969 (MRTP Act, 1969).
5. The Contract Act, 1982-This Act binds the people to fulfill their promises with respect to a valid contract.
6. The Consumer Protection Act, 1986-The object of this Act to protecting the consumers from anti trade practices making profit.

Question 7.
What is the importance of management ?
Answer:
If the administration of the organised sector is left to generalists, having no knowledge of management theory and practice, the activities of business and non-business organisations will be Jeopardised and there will be chaos all around. If a nation wants to be prosperious, it will have to produce efficient managers.

The following are the importance of efficient management:

1. Maximum results with minimum Resources
2. Realisation of Personal objectives,
3. Economic Growth
4. System in place of Rule of Thumb
5. Protection of Investor’s Interests.

Question 8.
“Planning is a mental process.” Explain.
Answer:
Let us examine some of the parts of definition of planning in regard “Planning is a mental process”.-
“Planning is deciding in advance what to do, how to do it, when to do it and who is to do it. It makes possible for things to occur which would not otherwise happen : we can also say that planning is the excercise of creative thinking in the solution of business problems. It involves the determination of what is to be done, how and where it is to be done, and who shall be responsible. We conclud the above fact that The act of thinking and determining a course of action, spelt out in detail, is called planning.

Question 9.
What do you mean by ‘training’ ? How does it differ from ‘education’ ?
Answer:
Training is the process of improving the attitudes, skills, performance and knout edge of the employees to make them enable for the job. Training is different from education on the basis of following grounds –

1. Education focuses on creating lifelong independent thinkers where as training focuses on skills sought after by employers.
2. Training has its roots in the guid system while education’s origins lie in universities.
3. Training uses textbooks and prescriptives methods.
4. In today’s universities highly specialized areas of training are being bassed off as education.

Question 10.
State the objectives of controlling.
Answer:
The purpose of managerial control is to ensure the desired level of efficiency in business. It helps the manager to achive the desired goals of business efficiently and effectively. The objectives of controlling are briefly stated below :

1. To develop suitable control techniques and to diagnose critical control points
2. To ensures that the performance is in accordance with the predetermined plans or targets, and to know the actual level of performance,
3. To find out deviations from the planned schedule and targets
4. To analysis deviation for knowing causes there of.
5. To consider and take whatever correchive measure are necessary and to redefine standards, if deviations are uncontrollable.

Question 11.
Distinguish between marketing and selling.
Answer:
Marketing and selling can be distinguished on the basis of the following points :
Marketing :

1. It creates demand, products goods and services, supplies the same and satisfies the consumers.
2. It includes creation of demand, pricing, promotion, sales and after sale services.
3. It aims at optimizing profit by optimizing consumers’ satisfaction.
4. It start much earlier than that of selling and it continues even after selling has come to an end.

Selling :

1. It just transfers the ownership of goods and services to the consumers.
2. It involves giving of goods and services for some consideration.
3. It’s main objective is to maximising profits by maximising sale.
4. It start when the goods and services are ready for exchanging; it comes to an end when the owner ship is passed on to the buyer.

Question 12.
What do you mean by levels of Management ?
Answer:
‘Levels of Management’ means different categories of managers having different quanta of authority form the lowest to the highest. There is no hard and fast rule about the number of levels in an enterprise. Small organisations have less levels and the number of levels, generally, increases as the size of organisation expands. It is also not necessary that the enterprises of the same size should have equal or identical levels.
From the study point or view the various managers may be grouped into the following thrice levels.

1. Top level management.
2. Middle level management.
3. Lower level management or super-visory or operational level management.

Question 13.
Write the different steps in the process of organising.
Answer:
Organising as a process includes the following steps:

1. Identification of Activities and their division : The process of organising starts with the identification of various activities. These activities are divided into various homogeneous units, which is called job and these jobs are assigned to the employees in a manageable-and systematic manner.
2. Grouping the activities into departments : Each Cluster of homogeneous activities is eammarked as a department and it gets a name according to the activities under taken there.
3. Assigning Duties : Once departments have been created, employees working in different departments get the work to be done by them. Each employees gets the work according to his/her specialisation and skills.
4. Establishing work Relationship : Under this step various work relation ships are established. These may be senior subordinate or lateral relationship.

Question 14.
What is meant by capital structure ?
Answer:
Capital structure is the composition or mix of different types of long term capital whether owned or borrowed. These may be in the form of share capital, debentures and long term loans from financial institutions. Like the plan of capitalisation, capital structure should be also planned. Share capital is an important component of the capital structure.

Question 15.
Distinguish between Centralisation und Decentralisation.
Answer:
Centralisation & Decentralisation : Centralisation & Decentralisation are relation terms. An organisation is said to be centralised when the authority relation to decesion making is remained with top level while it is called decentralised when these authorities are delegated.

In the words of Henri fayol, Everything which goes to increase the sub-ordinate’s role, is decentralisation, everything that goes to reduce, it is centralisation.

Question 16.
Discuss in brief, any three principles of Scientific Management.
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. Discipline : Disceplines mean the observance of rules and regulations this principle emphasises the obedience on the part of the sub-ordinates.

Question 17.
Give three advantages of budgetary control.
Answer:
There are following Advantage of Budgetory control:

1. Availcibility of yardsticks : Under budgetory control, budgets are used as yardsticks for determining the legitimacy of the task performed.
2. Maximum Utilisation of Resources : Various resources, like men, material, money etc. Can be optimally utilised through budgetory control.
3. Improvement in Co-ordination : It improve Co-ordination in the concerned activities for example, sale and production activities are interrelated.

Question 18.
Why is entrepreneurship regarded as a creative activity ?
Answer:
There are following reasons of entrepreneurship regarded as creative ativities as

1. It is necessary to management efficiently for its organisational ability and development.
2. For starting any new production.
3. For modify the organisation.
4. It is necessary for entrepreneur to development and competite their competitors.

Question 19.
Planning is a continuous process. How ? Explain.
Answer:
Planning is a continuous process : Plans need continuous review with a view to take cognisance of nature of economics to keep an equilibrium in changing pattern of demand and supply involving co-ordination of different function of management and thus to keep the business in perfect running conduction. So planning is a dynamic & continuous concept or process.

Question 20.
What do you mean by Promotion mix ?
Answer:
Promotion Mix : Promotion is an important element of marketing mix. It helps in boosting sales through its sub components.
There are four major promotion mix are :

1. Advertising
2. Personal selling
3. Sales promotion
4. Publicity.

The purpose of each is to popularize the product and services and help in boosting sales.

Question 21.
Distinguish between formal and informal communications.
Answer:
Distinguish between formal & informal communication
Formal communication :

1. It takes place in the formal fashion.
2. Communication takes place among officials or with outsiders in their capacity.
3. Parties involved in communication have formal relations.
4. Message is more reliable as the communication take place officially.
5. It consist information technology like cellphones, computers etc.

Informal communication :

1. It take place unofficially.
2. Communication takes place among official or with outsiders in unofficial capacity.
3. Here they have social or friendly relations.
4. Members communicate in their personal capacity sometimes inaccurate information may be passed on.
5. it consist face-to-face communication.

Question 22.
State any two functions of top level management.
Answer:
Following are the two function of top level management :

1. The main function of top level management is that to explain the objectives; determination of policy and directing.
2. It’s function to determine short-term or long term objectives of organisation.

Question 23.
Explain any two elements of delegation of authority.
Answer:
Following are the two elements of delegation of authority.

1. Assignments of tasks and duties : In the process of delegation every superior has to define the jobs to be performed by his subordination.
2. Grant of Authority : Grant of authority implies giving the rights to subordinates to decide and act, to use necessary resources and represents the superior.

Question 24.
What is Recruitment ?
Answer:
Recruitment functions is concerned with discovering the sources of man power required and tapping these sources, i.e. attracting the potential, employees to offer services to the working organisation.

Question 25.
Enumerate any four non-monetary incentives.
Answer:
Four-non-monetary incentive :

1. Safe services
2. Opportunity to promotion,
3. Eligibility, praise
4. Justice
5. Top enrichment
6. job security.

Long Answer Type Questions

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

Question 26.
What is financial planning ? What are the element/factors which affect financial planning ?
Answer:
13. Financial planning-Financial planning means deciding in a advance how much to spend, on what to spend, according to the funds at your disposal. Walker and Baughn have defined financial planning in the following words-

“Financial planning pertains only to the function of finance and includes the determination of the firm’s financial objectives, formulating and promulgating financial policies and developing financial procedures.”
This definition is considered to be the best definition of financial planning. It includes three main aspects of financial planning-

1. Determination of financial objectives
2. Formulation of financial Policies
3. Development of financial procedures.

Factors Affecting Financial Planning Or, Elements Determining Financial Planning-A financial plan should be prepared very carefully because it has long-term impact on the working of an enterprise. Financial plan is affected by a number of factors. All these factors should be taken into consideration while preparing a financial plan-

(i) Nature of industry – The nature of industry of business plays a decisive role in drafting of financial plan. A capital-intensive industry like cement, paper or fertilizer requires more capital while a labour
intensive enterprise requires less amount of capital. In addition to it, the stability and regularity of income, future prospects of growth, the fluctuations in the demand of the product being manufactured by the firm, the extent of automation, etc., play a dominant role in determining the capital needs as well as capital structure.

(ii) Status of unit – This step includes the evaluation of increment characteristics of the unit like age, size, market area, scope and nature of the field, then reputation of management etc.

(iii) Flexibility – Flexibility and not the rigidity should be the main principle to be followed in the financing planning. If there is no flexibility in financial plans it would be very difficult later on, to carry on its expansion or diversification programmes due to lack of funds.

(iv) Plans for the future growth – Firms expect to grow larger in size as they grow old. So while undertaking current financing decisions, the factors of future growth should be suitable weighed. Capital structure must be of high grade securities.

(v) Capital structure – The capital structure of the company must be of high grade securities. It should be diversified but balanced. No permanant charge should be created on the capital of the industry. Fair rate of dividend should also be maintained.

(vi) Amount of risk – The risk involved in the business should also be discussed while planning the sources of funds. For business having more risks should issue ownership securities only while enterprise with stable earning expectation can take advantage of trading on equity.

(vii) Magnitude of external capital requirement – It would be a good policy for the industry to finance its expansion or diversification programmes through internal resources such as ploughing back of profits, reserves and surplus, etc., but short-term finances may be obtained from external sources by issuing redeemable preference shares or debentures if they are urgently needed.

(viii) Attitude of management – The attitude of management and management policies regarding trading on equity, capital earning ratio, the desire and extent to converse the control of enterprise, etc., affect in no small amount of pattern of financing.

(ix) Appraisal of alternative sources of finance – A study of the potential suppliers of fund has to be made and then Only a firm can expect to obtain funds suited to its advantage.

(x) Government policies and control – In preparing financial plan, the promoter should invariably take into account the governmental policies, financial controls and other monetary and fiscal policies of the government.

Question 27.
Explain various money market instruments.
Answer:
The main tools of money market have been described below-
(i) Treasury bills-These instruments are issued Reserve Bank of India. These are short-term securities with moturities of one year or less. These bills bear on interest. However they are issued at less than their face value and redeemed at for – the difference bring the interest on investment.

(ii) Interbank call money-This is a technique of lending and borrowing by banks on short-term basis. There may be situations when banks may come across shortage of money due to excessive withdraws or beary loan demands. In such cases banks can take loans from others banks as emergency solutions such loans are usually given for one day.

(iii) Commercial paper-This is a debt instrument issued by a company to meet its short-term financing needs. This is normally in the form of a promissory note. The issuing company promises to pay back the amount of the commercial paper within a stipulated period which is usually less than 270 days.

(iv) Certificates of deposit (CDs)-These were introduced in India in 1989 as a short-term unsecured promissary note, these are relatively low-risk debt instruments issued by banks. They mention that the named party has a specified sumon deposit, usually for a given period of time, at a fixed rate of interest, the period of CDs generally range from one month to five years. It implies that this sources in useful for short and medium-terms. Howevers, the permissible periodical range, at present, in India money market is from 7 to 365 days.

(v) Commercial bill/Trade bill – It is the bill of exchange drawn by the creditor on his/her debtors, extending credit for a short-term, it is a written order for a certain period to boy a specific sum for which the debtors has received value. After it has been signed by the debtors, it becomes a negotiable instruments. It can be discounted in a bank dr endorsed to a person against receipt of equivalent value or be kept till maturity and then getting the amount stated in it.

Question 28.
What do you mean by ‘Delegation’ ? Explain any four points which highlight the importance of delegation in an organisation.
Answer:
The need of delegation of authority arises when the volume is work of a manager increased and
be becomes over burdened. In order to reduce his work load, he follows a process by which some tasks within his Jurisdiction are assigned to his sub ordinates on a selective basis. For during the assigned work/ task, appropriate authority is also given. Such authority is known as delegation of authority.

Definitions : “Delegation is the process of a manager follow in dividing the work assigned to him so that he performs that part which only he, because of his unique organisational placement, can perform effectively and so that he can get others to help him what remains.”

Importance of delegation can be explained through the following points.

1. Relief to over burdned managers : As the business expand, seniors may become too heavily occupied. They may need the services of someone who can share their burden. They find the remedy by adapting the technique of delegation.
2. Improvement is the Quality and Quantity of works : When a single person has to do voluminous work, he does it at he cost of its quality and quantity. He can take care of both if he shares their work with someone. Delagation provides on opporunity to seniors for sharing their work with subordinates.
3. Source of Enhancing Job satisfactions : Delegation provides opportunities of Job-enlargement and Job-enrichment to sub-ordinates.
4. Seniors’ focus on more important Tasks : Seniors, generally, delegate the routine type of tasks to their delegates. This enables them to devote more time and energies to more important tasks.
5. Training ground for the sub-ordinates : Delegation provides opportunities to the sub-ordinates for doing higher level job.
6. Quick Decesion making : Since delegatees get limited tasks through delegation, they are able to take decisions quickly.
7. Effective co-ordination : Delegation stream lines the co-ordination and makes it more effective. All this makes co-ordination more effective.

Question 29.
“Money spent on advertisement is a social waste” Do you agree with this ?
Answer:
No ! the money spent on advertisement is not social waste, but it is an investment. Advertising plays a beneficial role for boosting up the sale, profit and reputation of the modern business. It provides benefits not only traders but to the customers and society also, which have been discussed below:

1. Increase Sales : The mein objective of advertisement is to increase sales production on a large scale, makes it necessary to sell on a large scale. Advertisement helps to create a wide base to facilities sales on large scale.
2. Steady demand : In the absence of personal touch between the buyers and the sellers, it is necessary to keep customers constantly aware and informed of the product so that there could be a steady demand for the products. This continuous information is provided through advertisement.
3. Helps in making decesion : Customers get the required information types of product available in the market to satisfy their demand their relative advantage or disadvantages, price and utility, etc. On the basis of this information a customer finds it easy to arrive at any decision. Selection becomes essay for him.
4. Educating customers : Advertisement educate people about various products and their diverse uses. It tells consumers about better ways of living there by increasing living standards.
5. Provide Employment : Advertisement is a source of employment for many persons. Making advertising copies dicussion with sponsors, printing the Advertisement etc require the services of many persons.
6. Higher standard of living : It helps to raise the standard of living by educating people, by providing them more job opportunities and facilitating in production on a large scale.

Question 30.
What do you mean by staffing is it a part of Human Resource Management ? Clarify.
Answer:
Staffing : ‘Staffing’is the term used when recruitment and selection, training and development, compensation and relesstion, etc. functions are performed for appointing and retaining managers. According to koontz, O’ Donnell and Weihrich “Staffing is the executive function which involves the recruitment, selection, compensating, training, promotions and retirement of subordinate managers.”

Yes ! It is a part of human resource management. Human resource management is a broad concept. “HRM is the art of processing, developing and maintaining suitable persons to acheive the goals of an organisation in on effective way. It is the way of optimising human competence at the work place. So that the goals of an organisation are accomplished effectively.” According to Ivancevich and Glueck, “HRM is concerned with the most effective use of people to acheive organisational and individuals goals. It is a way of managing people at work, so that they give their best to the organisation.”

Question 31.
“Co-ordination is the essence of management” Explain this statement.
Answer:
Co-ordination is the essence of management : Co-ordination is required at every step of management. It exist with each function of management planning presupposes application of the princeiples of Co-ordination for achieving objective of the fullness, managers have to ensure proper Co¬ordination among various persons and departments.

While establishing the organisational structure Co – ordination among varions positions must be given due consideration. The absence of Co-ordination weakens the effect of authority, responsibility relationship in the organisational structure. Like planning and organizing

Co-ordination has a relevance to other functions of management also. The importance of directing components, viz., communication leadership motivation and supervision increase if the Co – ordination principles have been interwoven with them. Similarly, Co-ordination enhances the importance of staffing & controlling.

Question 32.
Why is delegation necessary for an effective organisation.
Answer:
Delegation of authority is an important function of organisation, it helps in improving the managerial effectiveness. It is essential for effective organisation due to following reasons :

1. Relief to overburdened managers : As the business expand, seniors may become too heaving occupied. They may need the services of someone who can share their burden. They by the remedy by adopting the technique of delegation.
2. Improving in the quality & Quantity of work : When a single person has to do locuminous work the does it at the cost of its quality and quantity. He can take care of both if he shares it with someone. Delegation provides an opportunity to seniors for sharing their work with subordinates.
3. Sources of Enhancing job satisfaction : Delegation provides opportunities of job enlargement and job enrichment to sub-ordinates get more job satisfaction when they get additional challenging assignments.
4. Quick Decision making : Delegation also implies that delegatees will get the authority of decesions making in prescribed field. Since delegates get limited take through delegation they are able to take decesion quickly.
5. Facilitation of organisational Growth : The delegates get an exposure of doing higher level jobs. When organisation expands, the delegatees may he asked to take up the higher level positions resulting due to the expansion of the organisation.
6. Effective Co-ordination : Delegation stream lines the co-ordination and make it more effective.

Question 33.
Define Financial Management and discuss its objectives.
Answer:
Financial Management: If is the process of decision making and implementing it in all respects for the inflows and outflows of funds.
According to weston & Brighan, Financial management is an area of financial decision making, harmonising individuals motive and enterprise goals.
Objective of Financial Management :

(i) Profit Maximisation : Finance manager tries to augment the earning of profit. This may be done by procuring the optimum amount of finance by creating minimum liability on the company and by utilising the finance in the best possible way.

(ii) Wealth Maximisation : Along with the objective of profit maximisation, importance to wealth maximisation should also be attached. Both the objective should be considered side-by-side. In fact, wealth maximisation is increasingly being accepted as the goal of finance function.

Wealth of the company = No. of share X market price pershare
Wealth maximisation is a better goal of finance function since it represents the long term interest of shareholders.