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Business Studies
BUSINESS STUDIES 
QUESTION PAPER

Time : 3 Hours  Maximum Marks : 80

Q.1.

Define ‘capital structure.

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Q.2. A2Z Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day. To achieve this, the efforts of all departments are coordinated and interlinked and authority-responsibility relationship is established among various job positions. There is clarity on how is to report to whom. Name the concept.

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Q.3. Mohit is running an ‘Advertising agency’ and earning a lot by providing this service to big industries. State whether the working capital requirement of the firm will be ‘less’ or ‘more .Give reason in support of your answer.

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Q.4. Ramesh after completing his graduation started working with a multinational company in Delhi. But due to ill health of his parents he had to go back to his village. There he noticed that the villagers were literate but ignorant about their rights. Many vegetable vendors were using stones as weights to sell their vegetables. Some shopkeepers were selling food items without having ‘FPO mark’. Villagers did not find anything wrong with these practices. So to create awareness among villagers Ramesh decided to publish a weekly Journal ‘Jag Jagriti’. State the ‘Right’ which Ramesh has exercised by doing so.

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Q.5. Explain key results area.

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Q.6. Explain any one responsibility of a consumer.

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Q.7. Explain recruitment.

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Q.8. Explain budget as a type of plan.

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Q.9. Rajeev, the owner of Pathways constructions decided to start a campaign to create awareness among people for developing clean surroundings in their area. He formed a team of 10 members to list the different ways for cleaning the surroundings. One suggested to take the help of local residents, another suggested that they may involve school going children in their venture. One more suggestion was to take the help of unemployed youth. On evaluation of different ways, it was decided to take the help of local residents. To achieve the desired goal various activities were identified like :
a) Purchase of necessary items like dustbins, garbage bags, brooms, etc.
b) Collection of garbage;
c) Disposal of garbage, etc.

After identification of different activities the work was allocated to different members.
1) Identify the concepts of management involved in the above situation and quote the lines which help in Their identification.
2) Also identify the values which the company wants to communicate to the society.

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Q.10. Explain objectives of financial management.

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Q.11. Explain any 3 importance of controlling.

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Q.12. Explain any 3 importance of financial planning.

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Q.13. Vinod was a supervisor at ‘Annapurna Aata’ factory. The factory was producing 200 quintals of aata every day. His job was to make sure that the work goes on smoothly and there was no interruption in production. He was a good leader who would give orders only after consulting his subordinates and work out the policies with the acceptance of the group. Identify and describe the leadership style being adopted by Vinod.

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Q.14. Sunil Gupta started a telecommunication company, ‘A2Z Ltd.’ to manufacture economical mobile phones for the Indian rural market with 15 employees. The company did very well in its initial years. As the product was good and marketed well, the demand of its products went up. To increase production the company decided to recruit additional employees. Sunil Gupta, who was earlier taking all decisions for the subordinates are competent, capable and resourceful and can assume responsibility for effective implementation of their decisions. This paid off and the company was not only able to increase its production but also expanded its product range.
(a) Identify the concept used by Sunil Gupta through which he was able to steer his company to greater heights.
(b) Also explain any three points of importance of this concept.

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Q.15. Explain 4 limitations of planning.

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Q.16. Explain any 2 rights of consumer.

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Q.17. Explain any 4 factors affecting capital structure decision.

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Q.18. Give the difference between three forums.

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Q.19. Give the difference between primary & secondary market

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Q.20. A2Z Ltd. purchased a new hi-tech machine from Germany for manufacturing high quality auto components in a cost effective manner. But during the production process, the manager observed that the quality of production was not as per standard. On investigation it was found that there was lack of knowledge amongst the employees of using these hi-tech machines. So, frequent visit of engineers was required from Germany. This resulted in high overhead charges. 
(i) Suggest what can be done to develop the skills and abilities of employees for producing high quality products by using these hi-tech machines. Also state how the employees or the organization will benefit from your suggestion.

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Q.21. Explain any 4 factors affecting dividend decision.

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Q.22. A2Z Limited is a bank functioning in India. It is planning to diversify into insurance business. Lately, the government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other companies have been given licenses to start insurance business under the regulation of ‘Insurance Regulatory and Development Authority’. A2Z Limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business. Questions.
1) Give a model of formal communication system that the company can follow.
Identify the barriers in this model. How can they be removed?

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Q.23. A2Z 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 Raman said that he was introduced by the present Sales manager, Mr. Joy Benu said that he had applied through the newspaper and was appointed as H.R Manager. Risabh 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. 
a) The above discussion is indicating an important function of management. Name the function of management. 
b) 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.

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Q.24. A company manufacturing sewing machines set up in 1945 by the British promoters follows formal organisation culture in totality. It is facing lot of problems in delays in decision making. As the result it is not able to adapt to changing business environment. The work force is also not motivated since they cannot vent their grievances except through formal channels,which involve red tape. Employee turnover is high. Its market share is also declining due to changed circumstances and business environment. 
1) You are to advise the company with regard to change it should bring about in its organisation structure to overcome the problems faced by it.
2) Give reasons in terms of benefits it will derive from the changes suggested by you.
3) In which sectors can the company diversify keeping in mind the declining market for the product the company is manufacturing?

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Q.25. Energy Supply Ltd. is a newly established company. The company needs fixed capital to buy fixed assets like land, building, plant machinery, etc. 
(i) Name the market from where the company can raise the funds. Also explain any two methods of issuing securities in this market.
(ii) Explain any 3 factors which affect the requirements of fixed capital.
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