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)

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.