BUSINESS STUDIES; CLASS 12 TERM 1 PRACTICE CASE STUDIES:
Q1. AB Ltd. has sold 1 lakh equity shares of Rs.
10 each at Rs. 12 per share to an investment banker, who offered them to the
public at Rs. 20 each. Identify the method of flotation.
(1)
(1)
Q2. Your grandfather has retired where he is
responsible for implementing the plans developed by the top management at which
level of management was he working? State one more function of this level of
management. (Answer: Middle level management) (Write any one function of this
level). (1)
Q3. Just after declaration of Lok Sabha Elections
2009 results, the Bombay stock exchange s price index (Sensex) rose by 2100
points in a day. Identify the environmental factor which led to this rise. (1)
Q4. Mr Rahul was holding 1,000 equity shares of Infosys Limited. To
raise the funds, the company offered shares in the ratio 5:1 against the shares
held by him at a price below the market price, which he accepted. As the shares
were in physical form, he contacted a depository participant to convert them
into electronic form. Later, after few years, he needed money for his child’s
education and decided to sell the shares.
(a) Name the method of issuing further equity shares by the company.
(b) Name the term used to convert the shares into electronic
form.
(c) Advice Mr. Rahul how he can sell his shares to arrange the
funds .
(3)
Q5. Identify the type of dimension of environment
to which the following are related :
i)
Banks reducing interest rate on housing loans.
ii)
An
increasing number of working women.
iii)
Booking of
air tickets through internet.
iv)
Alcohol beverages are prohibited to be advertised
on Door Darshan.
(4)
Q6. On
27th September, 2015, PM NarendraModi visited the headquarters of
‘Facebook’ in California. This news
was covered by ABP News Channel. The news item highlighted the following unique
features of Facebook’s office:
Office
spread over 4.5 lakh sq feet area of land. Within the office, the employees use
skates to move from one place to another.10, 000 employees working in the
office, all at same level. No cabin or separate room for any employee. There is
open work place to ensure mutual understanding and team work.All meeting are
held in a conference room having walls made of glass. Anyone can see with whom
the manager is meeting or interacting.Focus is not on working hours, rather on
quality of work. There is ample provision for leisure activities, rest rooms,
widespread clean and green environment and beautiful nursery at the terrace for
the employees.
On
the basis of above information, answer the following questions:
a) Name
one principle of Fayol followed in the Facebook’s office.
b) State
any two values followed by the Facebook’s office.
(4)
Q7. Mr. Nath, a recently appointed production
manager of Suntech Ltd. has decided to produce jute bags instead of plastic
bags as these are banned by the government. He set a target of producing 1000
jute bags a day. It was reported that the employees were not able to achieve
the target. After analysis he found that employees were demotivated 5 and not
putting in their best for achieving the target. Mr. Nath’s behavior is good
towards the employees. His attitude is always positive. So he announced various
incentive schemes for the employees like:
(5)
·
Installing award or certificate for best
performance
·
Rewarding an employee for giving valuable suggestions
· Congratulating the employees for good
performance
a) Identify the functions of management
highlighted in the above paragraph.
b) State
the‘ incentive’ under which the employees are motivated.
c) State
any two values which the production manager wants to communicate to the society
by his work and behaviour.
Q8.
a) 'New Delhi Ltd.’ is a famous services providing
company. Mr.Aman Malhotra is its Managing Director. He continuously motivates
his Research and Development department that new and latest methods of doing
work be explored. The provisions has also been made to give reward to those
employees who will participate in a particular exploration. He also believes
that two groups working on managerial and non-managerial posts are similar to
two wheels of an organisational vehicle. If this vehicle (organisation) is to
be driven in a right way then both the wheels should be property aligned.
Mr.Aman is a successful leader. Among his employees, he has instilled the
feeling that no decision will be taken without consulting the subordinates. To
excel in this field, is the main motive of Mr.Amanand he paid lot of attention
to training of employees
Identify the principles of scientific management discussed above by
quoting the lines
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.
(a) Which management principle is being violated in the given case?
(b) Mention one probable adverse consequence of violation of the given principle
(c) State the value being ignored by employees in above case. (3+3=6)
(a) Which management principle is being violated in the given case?
(b) Mention one probable adverse consequence of violation of the given principle
(c) State the value being ignored by employees in above case. (3+3=6)
Q8. Tata International Ltd. earned a net profit
of Rs.50 crores. Ankit the finance manager of Tata International Ltd. wants to
decide how to appropriate these profits. Identify the decision that Ankit will
have to take and also discuss any five factors which help him in taking this
decision.
(6)
Q9. Distinguish between capital market and money
market on the following basis.
a) Participants
b) Instruments Traded.
c) Duration of Securities Traded.
d) Expected Return
e) Safety
f) Liquidity
Q10. Distinguish between
‘Unity of command’ and ‘Unity of direction’ on the basis of:
1. Meaning
2. Aim
3. Implications (3)
Q11. Khandelwal 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. The workers got agitated and trade
union declared strike and demanded bonus and other facilities. The management decided not to give into their
demands.
1. Which
principle of scientific management is overlooked
in the given case?
2. State
any two values overlooked by the management in the above case. (3)
Q12. How does planning ‘Lead to rigidity’ and Reduce creativity’?
Explain. (3)
Q13. Kiran industries is a company manufacturing office
furniture. The company chose to
diversity its operations to improve its growth potential and increase market
share. As the project was important many
alternatives were generated for the purpose and were thoroughly discussed
amongst the members of the organization.
After evaluating the various alternatives Sukhvinder, the managing
director of the company decided that they should add ‘Home interiors and
Furnishings’ as a new line of business activity.
1. Name
the framework, which the diversified organization should adopt, to enable it to
cope with the emerging complexity?
2. State
any two limitations of this framework. (3)
Q14. Zenith Ltd. is a highly reputed company and many people wanted
to join this company. The employees of
this organization are very happy and they discussed how they came in contact
with this organization.
Aman said that he was introduced by present sales manager, Mr. John.
Benu said that he had applied through the newspaper and was
appointed as H.R manager.
Vaibhav said that he was neither related to any of the employee of
the organization nor there was any advertisement in the newspaper even then he
was directly called from IIM Ahmedabad from where he was about to complete his
MBA.
1. The
above discussion is indicating an important function of management. Name the
function of management.
2. The
management function identified in part (a) follows a particular process.
Explain the step of this process which is being discussed in the above para. (3)
Q15. Amit and Mikki are
working in the same organization but in different departments. One day at lunch
time Mikki informed Amit that due to computerization some people are going to
be retrenched from the organization.
Name which type of communication is this. State any two limitations of this type of
communication.
(3)
Q16. ‘Process of planning involves certain logical steps’. Explain the first four steps of this process. (4)
Q17.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.
1. Suggest
how the organization can overcome the problems faced by it.
2. Give
any two benefits it will derive from your suggestion. (4)
Q18. A company X Ltd. is setting up a new plant in India for
manufacturing auto components. India has highly competitive and cost effective
production base in this sector. X Ltd.
is planning to capture about 40% of the market share in India and also export
to the tune of at least 50 lacks in about 2 years of its planned
operations. To achieve these targets, it
requires a highly trained and motivated workforce. You have been retained by
the company to advise it in this matter.
1. Which
sources of recruitment the company should rely upon?
2. Which
methods of training should company initiate? (4)
Q19. Mr. Neelesh is working as a production manager in Vohra Ltd.
His subordinates are mostly engineers and qualified technicians.
As a manager, he is very strict, does not listen to any suggestions
or feedbacks given by his subordinates.
He expects them to follow his instructions without any questions and
does not allow them to give suggestions.
1. What
leadership style does the manager follow?
2. Is
such a leadership style beneficial for the company? Explain.
3. State
any one value being overlooked by him? (4)
Q20. “A supervisor is not at all required in an organization.” Do
you agree? Give four reasons in support of your answer. (4)
Q21. Sonali is the manager of a large company manufacturing garments
for kids. She plans her winter
collection in the month of August itself.
Then, she ensures that there is adequate workforce. She continuously monitors whether production
is proceeding according to plans. She
asks the marketing department to prepare their promotional and advertising
campaigns also.
1. Identify
and explain the concept of management explained
in the above para.
2. What
characteristics feature does the above para highlight? State. (5)
Q22. Principles of Taylor and Fayol are mutually complementary. One
believed that the management should share the gains with the workers, while the
other suggested that employees compensation should depend on the earning
capacity of the company and should give them a reasonable standard of living.
Identify
and explain the principles of Fayol.