2nd PUC Business Studies Model Question Paper 1 with Answers

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Karnataka 2nd PUC Business Studies Model Question Paper 1 with Answers

Time: 3.15 Hours
Max Marks: 70

Instructions :

1. Write the serial number of questions properly as given in the question paper while answering.
2. Answer for a question should be continuous.

Section – A

I. Answer any ten of the following questions in a word or a sentence each. Each questions carries one mark. 10 x 1 = 10

Question 1.
Give one example for top level management.
Answer:
Chief Executive Officer

Question 2.
Who advocated separation of planning and execution functions in any organization?
Answer:
F W Taylor

Question 3.
Liberalization means
a. Integration among economies
b. Reduced government controls and restrictions
c. Policy of planned disinvestments
d. None of the above
Answer:
b. Reduced government controls and restrictions.

Question 4.
……………… provides direction to the organization.
Answer:
Planning

Question 5.
Which of the following does not follow the scalar chain?
a. Functional Structure
b. Divisional Structure
c. Formal Organisation
d. Informal Organization
Answer:
d. Informal Organization

Question 6.
Which of the following is not a function of staffing?
a. Recruitment
b. Training
c. Compensation
d. Directing
Answer:
d. Directing

Question 7.
The process of converting the message into communication symbols is known as
a. Media
b. Encoding
c. Feedback
d. Decoding
Answer:
b. Encoding

Question 8.
Which of the following is not applicable to responsibility accounting?
a. Investment Centre
b. Accounting Centre
c. Profit Centre
d. Cost Centre
Answer:
b. Accounting Centre

Question 9.
What do you understand by capital structure?
Answer:
Capital Structure refers to the mix between owners and borrowed funds

Question 10.
What is the bench mark index of BSE?
Answer:
The BSE Index also known as Bombay Stock Exchange Sensitive Index is the bench mark index of BSE.

Question 11.
What is Publicity?
Answer:
Publicity is an unpaid form of communication and the sponsor is not identified. The message goes as a news item

Question 12.
Name any one consumer grievances redressal agencies.
Answer:
The District Consumer Disputes Redressal Agency

Section – B

II. Answer any ten of the following questions in two or three sentences each. Each question carrier two marks: 10 x 2 = 20

Question 13.
Define Management.
Answer:
According to Harold Koontz, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”.

Question 14.
Bring out any differences between standardization and simplification according to Taylor.
Answer:

Standardisation	Simplification
It refers to the process of setting standards for every business activity.	It aims at eliminating unnecessary diversity of products.
It implies devising new varieties.	It implies savings of cost.

Question 15.
Why is a good understanding of environment by business manager’s necessary?
Answer:
A good understanding of environment by business managers enable them not only to identify and evaluate but also react to the forces external to their firms. So, a good understanding of environment is necessary for the business managers.

Question 16.
What do you mean by objectives?
Answer:
Objectives are the end points towards which are activities of an organisation are directed, objectives are set by the top management.

Question 17.
Give the meaning of organizing.
Answer:
Organising is the process of defining and grouping the activities of the enterprise and establishing authority, responsibility relationships among them.

Question 18.
State any two demerits of external sources of recruitment.
Answer:
Demerits of External Sources:

• The morale of existing employees goes down.
• Lengthy process

Question 19.
What do you understand by supervision?
Answer:
Supervision is an element of directing. It means overseeing what is being done by subordinates and giving instructions to them. It is also considered an important function to be performed by supervisor.

Question 20.
State any two traditional techniques of managerial control.
Answer:

• Personal observation
• Break even analysis.

Question 21.
What is Financial Leverage? Write the formula to calculate Financial Leverage.
Answer:
The proportion of debt in the overall capital is called financial leverage.
Financial leverage is computed as D/E or D/D+E where D is the Debt and E is the Equity.

Question 22.
Give the meaning of De materialization.
Answer:
Securities held by the investor in the physical form are cancelled and the investor is given an electronic entry so that she / he can hold it as an electronic balance in an account. This process of holding securities in an electronic form is called dematerializations.

Question 23.
What is marketing mix?
Answer:
Marketing mix is described as the set of marketing tools that a firm uses to pursue its marketing objectives in a target market. This term marketing mix is given by Neil H Borden. It is the combination of four inputs namely product, price, promotion and place.

Question 24.
Write any two consumer rights.
Answer:

• Right to Safety
• Right to be informed

Section – C

III. Answer any seven of the following questions in 10 – 12 sentences. Each question
carrier 4 Marks : 7 x 4 = 24

Question 25.
What is Entrepreneurship?
Answer:
Entrepreneurship is the process of setting up one’s own business as distinct from pursuing any other economic activity.

Question 26.
Discuss the significance of Principles of Management by explaining any four points.
Answer:
The principles of management dense their significance from their utility. The following is the importance of principles of management:

(1) Provide managers with useful insights into reality :
The principles of management provide the managers with useful insights into real world situations. Following these principles will add knowledge ability and understandability to the managers of the situations and circumstances. It will also enable managers to learn from their past mistakes and save time by solving repeated problems quickly.

(2) Optimum utilisation of resources and effective administration :
Both human and material resources are limited. These resources should be used in such a manner that the company is able to derive maximum benefit with minimum cost Principles equip the managers to foresee the cause and effect relationships of their decisions and actions. Wistage is also avoided.

(3) Scientific decisions:
Decisions must be based on facts. They must be timely, realistic and subject to measurement and evaluation. Management principles help in thoughtful decision – making and these decisions will be free from bias and prejudice

(4) Meeting changing environment :
Although the principles of management are in the nature of general guidelines, hut they are modified and help the managers to meet changing requirements of the environment.

Question 27.
Explain any four features of Business Environment.
Answer:
Business environment has the following features:

1. Totality of external forces: Business environment is the sum total of all things external to business firms and, as such, is aggregative In nature.
2. Specific and general forces: Business environment includes both specific and general forces. Specific forces such as investors, customers, etc, affect individual enterprises directly and immediately in their day-to-day working. General forces such as social.
   political conditions have impact on all business enterprises and thus may affect an individual firm only indirectly.
3. Inter-relatedness: Different elements of business environment are closely interrelated. One element of the environment affects the other. For example, new health aware products such as diet coke, fat-free cooking oil etc changed people’s life styles.
4. Dynamic nature: Business environment Is dynamic. It keeps on changing whether in terms of technological improvement, shifts in consumer preferences etc.
5. Uncertainty: Business environment Is largely uncertain because it is difficult to predict future happenings.
6. Complexity: Since business environment consists of numerous interrelated and dynamic forces which arise from different sources, it is relatively easier to understand in parts but difficult to grasp in its totality.
7. Relativity: Business environment is a relative concept. It differs from country to country and even from region to region.

Question 28.
State any four features of informal organization.
Answer:
Interaction among people at work gives rise to a network of social relationships among employees. This relationship is known as informal organization.
Features of Informal Organisation are as follows:

• An informal organization originates from within the formal organization as a result of personal interaction among employees.
• The standards of behavior evolve from group norms rather than officially laid down rules and regulations.
• Independent channels of communication without specified direction of flow of information are developed by group members.
• It emerges spontaneously and is not deliberately created by the management.
• It has no definite structure or form because it is a complex network of social relationships among members.

Question 29.
Explain any four types of test used for the selection of employees.
Answer:
After screening the applications, eligible candidates are asked to appear for selection tests. The following tests are usually conducted to measure the intelligence, aptitude, proficiency, personality etc.

• Intelligence tests: These tests are used to judge the mental capacity of the applicant. Intelligence tests evaluate the ability of an individual to understand instructions and make decisions.
• Aptitude tests: Aptitude means the potential which an individual has for learning new skills. Aptitude test indicate the person’s capacity and his potential for development.
• Trade or proficiency tests: These tests are designed to measure the skills already acquired by the individuals. They measure the level of knowledge and proficiency in the area of profession or technical training.
• Personality tests: These tests probe for the overall qualities of a person as a while. They provide clues to a person’s emotional reactions, maturity level, value system etc.
• Interest tests: These tests identity the areas in which a candidate has special concern, fascination; involvement etc. These tests suggest the nature of job liked by a candidate which may bring him job satisfaction.

Question 30.
Explain any four benefits of Motivation.
Answer:
a. Increase in the performance levels of the employees :
Motivation helps to improve performance levels of employees as well as the organization. Since proper motivation satisfies the needs of employees, they in turn devote all their energies for optimum performance in their work. A satisfied employee can always turnout expected performance.

b. Negative attitudes made positive :
Motivation helps to change negative or indifferent attitudes of employee to positive attitudes so as to achieve organizational goals.

c. Helps to reduce employee turnover :
Motivation helps to reduce employee turnover and thereby saves the cost of new recruitment and training.

d. Helps to reduce absenteeism :
Motivation helps to reduce absenteeism in the organization. Through sound motivational system, the deficiencies like bad working conditions, inadequate rewards, lack of recognition etc can be covered. If motivation is adequately provided, work becomes a source of pleasure and workers attend to the work regularly.

e. Helps managers to introduce changes smoothly :
Motivation helps managers to introduce changes smoothly without much resistance from people. Generally, resistance to change is present among the employees. If the manager can convince the employees that proposed changes will bring additional rewards to employees, they may readily accept the change.

Question 31.
Explain briefly any four factors affecting the fixed capital requirement of an organization.
Answer:
Factors affecting the requirement of Fixed Capital:

• Nature of Business: The type of business has a bearing upon the fixed capital requirement. A trading concern needs lower investment in fixed assets compared with a manufacturing organization.
• Scale of Operations: A larger organization operating at a higher scale needs bigger plant, more space etc and therefore, requires higher investment in fixed assets. A smaller organization requires less fixed capital.
• Choice of Technique: Some organizations are capital intensive which require higher investment in plant and machinery. Therefore the requirements of such capital intensive business units are more. Labour intensive organizations require less fixed capital comparatively.
• Technology Up gradation: Higher investment in fixed assets requires more fixed capital.
  The organizations which use assets which are prone to obsolescence require higher fixed capital to purchase such assets repeatedly.

Question 32.
Distinguish between primary market and secondary market.
Answer:

Primary Market	Secondary Market
There is a sale of securities by new companies or new issues of securities by existing companies directly to the investors.	There is trading of existing shares only.
Securities are sold by the company to the investor directly.	Ownership of existing securities is exchanged between the investors. The company is not involved at all.
The flow of funds is from savers to investors. Thus, it helps in capital formation.	It only promotes liquidity among the share-holders.
It is also known as new-issue market.	It is also known as stock exchange.
There is no fixed geographical location.	These are located at specified places.
Only’ buying of securities takes place, securities cannot be sold in a primary market.	Both the buying and the selling of securities can take place on the stock exchange.

Question 33.
State any four considerations to be kept in mind which choosing a brand name.
Answer:
Following are some of the considerations, which should be kept in mind while choosing a brand name:

• The brand name should be short, easy to pronounce, spell, recognize and remember.
  Eg: Ponds, Rin, Vim etc.
• A brand should suggest the product’s benefits and qualities. It should be appropriate to the product’s function. Eg: Promise, My Fair Lady etc.
• A brand name should be distinctive. Eg: Liril, Safari etc.
• The brand name should be adaptable to packing or labeling requirements, to different advertising media and to different languages

Question 34.
Explain any four rights of consumers.
Answer:
The consumer protection council set up under the Act is intended to promote and protect the various rights of consumers which are as follows:

1. Right to Safety: The consumer has a right to be protected against goods and services which are hazardous to life and health.
2. Right to be Informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price,and directions for use etc.
3. Right to Choose: The consumer has the freedom to choose from a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products to allow the consumer to make a choice.
4. Right to be Heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service.
5.  Right to seek Redressal: The consumer has a right to get relief in case the product or service falls short of his expectations.
6. Right to Consumer Education: The consumer has a right to acquire knowledge and to be a well informed consumer throughout life.

Section – D

IV. Answer any four of the following questions in 20 – 25 sentences each. Each question carrier 8 marks:
4 x 8 = 32

Question 35.
Explain in detail the functions of Business Management.
Answer:
Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using the resources of the organisation to achieve specific goals.
Luther Gulick has given a keyword PODSCORB’.

P → Planning
O → Organising
S → Staffing
D → Directing
Co → Coordination
R → Reporting and
B → Budgeting

The most widely accepted classification of management functions is given by Koontz and O’ Donnell which includes planning, organizing, staffing, Directing and Controlling.

1. Planning; Planning is the basic and first [unction of management. It is the function of determining in advance what is to be done and who is to do it. A plan is a future course of action. Planning implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning is necessary to ensure proper utilisation of human and non-human resources.

2. Organisaing: It is the process of bringing together, physical, financial and human resources. ¡t develops productive relationship amongst them for achievement of organisational goals. Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.
Organising as a process involves,

• Identification of activities
• Classification of activities
• Assignment of duties
• Delegation of authority and creation of responsibility
• Coordinating authority and responsibility relationships.

3. Stalling:
It includes finding the right people for the right job. This is also known as the human resource function and has assumed greater importance in the recent years
staffing involves.

• Man – power planning
• Recruitment, selection and placement
• Training and Development
• Remuneration
• Performance appraisal
• Promotions and Transfer

4. Directing : Directing function involves leading, influencing and motivating employees to perform the tasks assigned to them. It is that part of managerial function that actuates the organisational methods to work efficiently for achievement of organisational objectives
Directing has the following elements:

• Supervision
• Motivation
• Leadership
• Communication
• Delegation
• Coordination

5. Controlling : It is the management function of monitoring organisational performance towards the attainment of organisational goals. It implies the measurement of actual performance against the set standards and connecting the deviations if any so as to ensure the achievement of organisations goals.
Controlling has the following steps:

• Establishment of standards
• Measurement of actual performance
• Comparison of actual performance with the set standards and finding out deviations if any
• Taking corrective action.

Conclusion : Theoretically, the management functions can be separated but practically these functions are overlapping in nature. Hence they are inseparable. Each function blends into the other and each function affects the performance of other functions.

Question 36.
Explain the importance and limitations of planning.
Answer:
Planning is very important as it tells us where to go; it provides direction and reduces the risk of uncertainty by preparing forecasts. The importance of planning is explained as follows:

a. Planning provides direction: Planning provides direction for action. Planning ensures that the goals are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. Planning ensures coordination in the work of individuals and various departments of the organization.

b. Planning reduces the risk of uncertainty Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding ¡n advance, the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes cannot be eliminated but they can be anticipated and managerial responses to them can be developed.

c. Planning reduces overlapping and wasteful activities: Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding. Planning ensures clarity in thought and action, work is carried on smoothly. It helps to detect the inefficiency arid unwanted repetition in work and to take corrective measures to minimize the wasteful activities.

d. Planning promotes Innovative ideas: Planning is the first function of management. New ideas can take the shape of concrete plans. Planning is basically the thinking function of management. It encourages the managers for innovative and creative thinking. Thus, planning helps the managers to be more creative and innovative in shaping new courses of action.”

e. Planning facilitates decision making: Planning helps the manager to look into the future and make a choice from amongst various alternative courses of action. Decision making is a process of selecting the best course of action from various available alternatives after evaluating each one of them.

f. Planning establishes standards for controlling: Planning facilitates control. It determines goals and standards for every individuals and departments of the organization. This makes it easy to compare the actual performance of the individuals and departments with the standards fixed. In case, there are deviations, corrective measures are taken to remove them. Thus, planning is a prerequisite of controlling.

The major limitations of planning are given below

a. Planning leads to rigidity: In an organization, a well-defined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action. The managers may not be in a position to change these plans. This kind of rigidity in plans may create difficulty. This rigidity restricts the individual freedom, initiative and creativity.

b. Planning may not work in a dynamic environment: The business environment is dynamic. Planning anticipates future. It takes into consideration the possible changes in economic, political, legal and social dimensions. But it becomes difficult to accurately assess the future trends. Competition in the market can also upset the plans. Planning cannot foresee everything and thus, there may be obstacles to effective planning.

c. Planning reduces creativity: Planning is an activity which is done by the top management. Usually the rest of the members just implement these plans. Middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own. Thus, much of the initiative or creativity inherent in them also gets lost or reduced.

d. Planning involves huge costs: When plans are drawn up, huge costs are involved in their formulation. These may be in terms of time and money. The cost incurred sometimes may not justify the benefits derived front the plans.

e. Planning is a time-consuming process: Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.

f. Planning does not guarantee success: The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action. Managers have the tendency to. depend on the previously tested and
successful plans. But it is not always true that the plans which were successful early will be successful again. Therefore, planning does not guarantee success but provides a base for analysis of future course of action.

Question 37.
Describe the steps involved in selection process.
Answer:
Employee selection is the process of putting right men on right job. It is a procedure of matching organizational recruitment with the skills and qualifications of people. The following steps are generally followed by all business organizations during selection process:

Steps in selection process:

a. Preliminary Screening
b. Selection Tests

1. Intelligence tests
2. Aptitude tests
3. Trade or proficiency tests
4. Personality tests
5. Interes tests

Interview

a. Direct Interview
b. Indirect Interview
c. Patterned or structural Interview
d. Stress Interview
e. Board or Panel Interview
f. Group Interview
g. Reference and background checks
h. Selection Decision
I. Medical Examination
j. Job offer (Issue of Appointment Letter)
k. Contract of Employment (Acceptance of job offer)

1. Preliminary Screening :
After receiving the applications from the candidates through recruitment process, the same must be examined to decide, which ones deserve to be considered and followed up. The main purpose of screening is to prepare a list of eligible candidates who are to be evaluated further. Screening exercise involves checking the contents of the application, so as to find out whether or not the minimum eligibility conditions are fulfilled by the applicants.

2. Selection Tests :
Selection tests are given to discover and measure, the skill and abilities of the candidates ¡n terms of the requirements of the job. The following tests are usually conducted to measure the intelligence, aptitude, proficiency, personality etc.

• Intelligence tests: These tests are used to judge the mental capacity of the applicant. Intelligence tests evaluate the ability of an individual to understand instructions and make decisions.
• Aptitude tests: Aptitude means the potential which an individual has for learning new skills. Aptitude test indicate the person’s capacity and his potential for development.
• Trade or proficiency tests: These tests are designed to measure the skills already acquired by the individuals. They measure the level of knowledge and proficiency in the area of profession or technical training.
• Personality tests: These tests probe for the overall qualities of a person as a while, They provide clues to a person’s emotional reactions, maturity level, value system etc.
• Interest tests: These tests identify the areas in which a candidate has special concern, fascination: involvement etc. These tests suggest the nature of job liked by a candidate which may bring him job satisfaction.

3. Interview :
Interview is a face to face conversation and observation. Interview helps the employer to evaluate the candidate regarding the personality, smartness, intelligence, attitude etc. There are different kinds of interviews conducted by the employers. Some of them are as follows:

a. Direct Interview :
Under this method, direct questions are asked to the applicant,to identify his skills, character, area of interest, attitudes etc,. The in-depth knowledge of applicant Is not observed under this type of Interview.

b. Indirect Interview :
Under this method, the applicant is asked to express his opinion on any topic he likes. Here the interviewer listens to the views of the applicant without any intervention. This interview helps the interviewer to assess the personality of the applicant.

c. Patterned or Structural Interview :
In this type of interview, the interviewer is looking for information in a particular area of interest of the organization. A number of standard questions are framed in advance which is to be answered by the applicant. These questions focus on the experience, skills and personality of the ideal candidate would possess.

d. Stress Interview :
In this interview, the interviewer will intentionally try to upset the applicant, to see his reactions under pressure. Uncomfortable or irritating questions may be asked to the applicant to test his patience. This type of interview may be more commonly used in high stress jobs.

e. Board or Panel Interview :
In this interview a group of persons called interviewers ask the applicant, questions in different subjects or area of interest of the candidate. Immediately after the interview, they meet, discuss and evaluate the performance of the applicant on the basis of answers given by him. This type of interview is common in case of professional jobs.

f. Group Interview :
A group interview occurs when several candidates fora position are Interviewed simultaneously. A common topic presented before the candidates for discussion. Group interview offers candidates to express their leadership potential and style.

4. Reference and Background checks :
In addition to the required educational qualifications, skill and experience, the candidates must also possess other qualities liked honest 3 loyalty etc, These qualities can be judged by the information obtained from the heads of educational institutions where the candidates have studies or from the persons whose names are given by the candidates as reference or from their previous employers.

5. Selection Decision :
After a candidate has cleared all the hurdles in the selection procedure, the employer may take a decision of selection after consulting the concerned manager who is responsible for the performance of the new employee.

6. Medical examination :
Candidates finally selected for the job are asked to undergo medical examination to see whether they are physically fit for the job. The physical fitness of employees reduces labour turnover, absenteeism, accidents etc, and ensure higher standard of health of employees in the organization.

Question 38.
What are the common barriers to effective communication suggest measures to overcome them.
Answer:
Perfect and complete communication does not take place many a times due to certain obstacles which are known as barriers to communication. Following are the barriers to effective

communication:

1. Physical barriers: Internal structure of the organization and layout of office machines and equipments creates physical barriers in communication. Physical barriers include:

• Distance
• Noise
• Physical arrangement

2. Semantic barriers: The use of difficult and multiple uses of languages, words, figures, and symbols create semantic barriers. Some semantic barriers are:

• Language
• Jargons.

3. Organisatlonal barriers: These arise from the organizational goals, regulations, structure and culture. Organisational barriers include:

• Poor planning
• Structure complexities
• Status differences
• Organisational distance
• Information overload
• Timing

4. Psychological barriers: These are the barriers to effective communication created due to lack of interest in the people for whom the communication is meant. People do not pay attention to the communication in which they are not interested.
Examples for psychological barriers are:

• Perception
• Filtering
• Distrust
• Emotions
• Viewpoint

Question 39.
Briefly explain the steps in the screen based trading and settlement procedure in a stock exchange.
Answer:
The procedure for purchase and sale of securities on a stock exchange involves the following steps:

a. Selection of a broker: The first step is to select a broker who will buy or sell securities on behalf of the investor as trading of securities can be done only through a broker registered under SEBI.

b. Opening Demat Account: The investor has to open a demat account or beneficial owner account with a depository participant for holding and transferring securities in the demat form. He will also have to open a bank account for cash transactions in the securities market.

c. Placing the Order: The investor then places an order with the broker to buy or sell securities. Clear instructions have to be given to the broker on the number of shares, price etc. An confirmation slip is issued to the investor by the broker on placing the order.

d. Executing the Order: According to the instructions of the investor, the broker will go on line and buys or sells the securities. Then, he issues a contract note and a copy of it is sent to the investor. A unique order code number is assigned to each transaction by the stock exchange is printed on the contract note.

e. Settlement; Now, the investor has to deliver the shares sold or pay cash for the shares bought. This should be done immediately after receiving the contract note or before the day when the broker shall make payment or delivery of shares to the exchange. This is called the pay-in-day.

Question 40.
Explain briefly any eight differences between advertising and personal selling.
Answer:
Difference between advertising and personal selling

Advertising	Personal selling
1. Advertising is an impersonal form of communication	Personal selling is a personal form of communication.
2. Advertising  involves mass communication.	Personal selling involves face to face direct personal communication.
3. Advertising involves transmission of standard messages i.e, same message is sent to all the customers in a market segment.	In personal selling the sales talk is adjusted keeping view customer’s back ground and needs.
4. It involves one way communication	It involves two way communication
5. Advertising is inflexible because the message cannot be adjusted to the needs of the buyer.	Personal selling is highly flexible as the message can be adjusted.
6. It has a wider coverage at a time it reaches masses.	It covers only individual or a small group of people at a time.
7. In advertising the cost per person reached is very low.	The cost per person is quite high in the case of personal selling
8. It covers the market in a short – time	Personal selling takes a lot of time to cover the entire market.
9. Advertising does not provide feedback immediately.	It provides feed back immediately.
10. The object of advertising is to create customers.	It aims at selling the product or service.
11. Doubts cannot be clarified early.	Here, doubts can be clarified easily
12. Advertising user media /tools such as TV, Radio, Newspapers, magazines etc.	Sales representatives are the only tool her.

Section – E
(Partical oriented Questions)

V. Answer any two of the following questions. Each question carrier five marks: 2 x 5 = 10

Question 41.
Draw a chart representing the elements of Business Environment.
Answer:

Question 42.
Draw a neat diagram of Maslow’s Hierarchy of Needs?
Answer:

Question 43.
Draw the neat diagram of Efficiency-Desirability matrix to check the ability and willingness of Entrepreneurs.
Answer: