Business Studies Class 12th Term 2nd -2021-22 | Question-Answer

Business Studies Class 12th Term 2nd -2021-22 | Question-Answer 

Business Studies Class 12th Term 2nd -2021-22 | Question-Answer
Business Studies Class 12th Term 2nd -2021-22 | Question-Answer

Business Studies Class 12th Term 2nd: 

All of you are reading on DM Sonu's website, inside which all questions and answers for Term 2nd issued by CBSE are written in this post by CBSE which has given you easy access to this. You will know after reading the post

Que. 1. Identify and explain the two sources of the source of recruitment that cannot be used when the existing staff is either insufficient or does not fulfill the eligibility criteria of the jobs to be filled.

Ans.1 Two sources of internal recruitment:

1. Promotion refers to shifting of an employee to a higher position, carrying higher responsibilities, facilities, status, and pay.

2. Transfer involves shifting of an employee from one job to another, one department to another, without substantive change in the responsibilities and status of the employee. 

Que. 2 ‘MYKAA Limited ‘is dealing in all types of cosmetic products. It is enjoying increased demand for its product during the last few years. For the purpose of expansion the company needs ₹ 100 crores as additional capital. The company decides to raise funds through equity shares. Chirag Kapoor, the finance manager of the company recommended that the shares may be sold through issuing houses or brokers. Identify and explain the method recommended by Mr.Kapoor through which the company can raise additional funds for expansion purposes. 

Ans. Offer for Sale: Under this method, securities are not issued directly to the public but are offered for sale through intermediaries like issuing houses or stockbrokers. In this case, a company sells securities embolic at an agreed price to brokers who, in turn, resell them to the investing public.

Que. 3 Explain the two concepts which are part of the exercise which would reveal whether a company is understaffed, overstaffed or optimally staffed. 


1. Workload analysis: This would enable an assessment of the number and types of human resources necessary for the performance of various jobs and the accomplishment of organizational objectives.

2. Workforce analysis: This would reveal the number and type available. 

Que. 4 “Measurement of a company’s progress may involve calculation of certain ratios like gross profit ratio, net profit ratio, and return on investment, etc. at periodic intervals”. Identify the function of management involved in the above context. Also briefly explain the step in the process of the identified function discussed above.


a) Controlling

(b) Measurement of actual performance Once performance standards are set, the next step is the measurement of actual performance. Performance should be measured in an objective and reliable manner. There are several techniques for the measurement of performance. These include personal observation, sample checking, performance reports, etc.  

5 Mr. Pawan Kumar, the CEO of an E-Commerce start-up, which was facing the problem of huge employee turnover, decided to hold a meeting with the managers to discuss the issue. While addressing the managers in the meeting, he advised them to take certain measures which focus on psychological, social and emotional factors, in order to motivate employees. Explain any two such measures discussed by him, when he suggested that job should be made interesting so that the job itself becomes a source of motivation, employees should be congratulated for good performance, also, stability regarding future income and work should be provided to employees, in order to develop a positive attitude among the subordinates.  


Non-monetary incentives: (Any two) 

1. Job enrichment: It is concerned with designing jobs that include a greater variety of work content, require a higher level of knowledge and skill, etc,. 

2. Employee recognition programs: Recognition means acknowledgment with a show of appreciation. 

3. Job security: Employees want their job to be secure. They want certain stability about income and work so that they do not feel worried about these aspects and work with greater zeal.

Que. 6 State any three points of importance of Directing.


Importance of Directing: (Any three) 

1. Directing helps to initiate action by people in the organization towards the attainment of desired objectives. 

2. Directing integrates employees' efforts in the organization in such a way that every individual effort contributes to organizational performance. 

3. Directing guides employees to fully realize their potential and capabilities by motivating and providing effective leadership.

4. Directing facilitates the introduction of needed changes in the organization. 

5. Effective directing help to bring stability and balance to the organization since it fosters cooperation and commitment among the people and helps to achieve balance among various groups, activities, and departments.


Que. 6 Define leadership as an element of Directing? Enumerate any two styles of Leadership.  


Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organizational objectives. 

(or any other correct definition) Styles of leadership (Any two):

(i)Autocratic or Authoritarian leader gives orders and expects their subordinates to obey those orders. 

(ii) Democratic or Participative leaders will develop action plans and make decisions in consultation with their subordinates.

(iii) Laissez-faire or Free-rein leader does not believe in the use of power unless it is absolutely essential.  

Que. 7 List any three factors affecting the Working Capital requirement of a company. 


Factors affecting working capital requirement of the company (Any three): 

1. Nature of Business influences working capital requirements in a trading organization which usually needs a smaller amount of working capital compared to a manufacturing organization, while service industries that usually do not have to maintain inventory require less working capital. 

2. Scale of operations influences working capital requirements in large organizations which require a large amount of working capital as compared to the organizations which operate on a lower scale.

3. Business cycle affects the requirement of working capital by a firm, as in the case of a boom a larger amount of working capital is required as compared to the period of depression. 

4. Seasonal Factors affect the working capital requirement, as in peak season large amounts of working capital is required and lower amount is required in the lean season. 

5. Production cycle affects the working capital requirement, as it is higher in firms with longer processing cycles and lower in firms with shorter processing cycles. 

6. Credit allowed in a firm with liberal credit policy results in a higher amount of debtors, increasing the requirement of working capital. 

7. Credit availed by a firm, to the extent to which the firm avails the credit on purchases the working capital requirement is reduced. 

8. Operating efficiency may reduce the level of raw materials, finished goods and debtors resulting in lower requirement of working capital. 

9. Availability of raw material influences the working capital requirement as larger the lead time, larger the quantity of material to be stored and larger shall be the amount of working capital required. 10. If the growth potential of a concern is perceived to be higher, it will require a larger amount of working capital. 

11. Higher level of competitiveness may necessitate larger stocks and increases working capital requirement. 

12. The working capital requirement of a business becomes higher with higher rate of inflation.

Que. 8. Priya is a regional manager of XYZ. Ltd. She is a hardworking employee and is trying to reduce the wastage of resources in her company. She has set standards for the performance of different activities and is ensuring that targets are met according to these standards with minimal wastage of resources. She has set up CCTV cameras which helps her to keep a close check on the activities of the subordinates and know how the employees are performing. She also rewards the employees with a bonus when these standards are met. She is trying her best to ensure a good performance of her team this year through the application of an important function of management. Explain any two benefits of the function of management highlighted above.


Importance of controlling (Any two): 
1. Accomplishing organizational goals: The controlling function measures progress towards the organisational goals and brings to light the deviations, if any, and indicates corrective action. 

2. Ensuring Order and discipline: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour by keeping a close check on their activities. 

3. Making efficient use of resources: Each activity is performed in accordance with predetermined standards and norms. This ensures that resources are used in the most effective and efficient manner. 

4. Improving employee motivation: A good control system ensures that employees know well in advance what they are expected to do and what are the standards of performance on the basis of which they will be appraised. It, thus, motivates them and helps them to give better performance. 


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