2nd PUC Business Studies Model Question Paper 2 with Answers

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Karnataka 2nd PUC Business Studies Model Question Paper 2 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.
Which function in management is known as ‘the essence of Management’?
Answer:
Co-ordination

Question 2.
What is the objective of Method Study according to Taylor?
Answer:
According to Taylor, the objective of Method Study is to find out the best way of doing the job.

Question 3.
Which of the following does not characterize the business environment?
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity
Answer:
(b) Employees

Question 4.
Which is a Standing Plan?
Answer:
A plan which can be repeatedly used over a period of time is known as a Standing Plan.

Question 5.
What does span of management refer to?
Answer:
Span of management refers to the number of subordinates working under a sperior.

Question 6.
Recruitment is a positive process where as is a negative process.
Answer:
Selection

Question 7.
Status comes under the following type of barriers
(a) Semantic barrier
(b) Organizational barrier
(c) Non-Semantic barrier
(d) Psychological barrier
Answer:
(b) Organizational barrier

Question 8.
What is Ratio Analysis?
Answer:
Ratio Analysis refers to analysis of financial statements through computation of ratios

Question 9.
The Settlement cycle in NSE is
Answer:
T + 2

Question 10.
What is a Brand?
Answer:
A brand is a name, term, sign, symbol design or some combination of them, used to identify the products.

Question 11.
Who is a Consumer?
Answer:
Consumer is a person who buys any product or service for final consumption by paying a price.

Question 12.
Expand N-Pow
Answer:
Need for Power

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.
Justify the importance of Coordination by any two factors
Answer:

Coordination integrates group efforts into purposeful work activity.
Coordination ensures unity of action.

Question 14.
Give the meaning of Mental Revolution.
Answer:
Mental revolution involves a change in the attitude of workers and management towards one another from competition to cooperation.

Question 15.
Give the meaning of Globalization.
Answer:
Globalization means the integration of the various economies of the world leading towards the emergence of a cohesive global economy.

Question 16.
What is a Strategy?
Answer:
Strategies are the specific programmes of action for achieving the objectives of the orgainisation. It is a comprehensive plan which acts as a guide line to handle specific problems. An example for strategy is how to establish the demand of our existing product when the competitor has introduced a similar new product into the market.

Question 17.
State any two differences between Authority and Accountability
Answer:

Authority	Accountability
Authority is the power to command employees and instruct them to perform a job	Accountability means being answerable for the final results.
Authority can be delegated	Accountability cannot be delegated
Authority arises from formal position of individuals.	Accountability arises from responsibility.
Authority flows from superior to subordinates	Accountability flows from subordinates to superior.

Question 18.
What is Orientation?
Answer:
It is a process of introducing the new employee in the organization to the existing employees and familiarizing him with the rules and policies of the organization.

Question 19.
State any two Psychological barriers to communication.
Answer:

Perception
Filtering

Question 20.
Define Managerial Control.
Answer:
Controlling is the according to Koontz and O’Donnell. Measuring and correcting of activities of subordinates to ensure that events confirm to plans. Koontz and O’Donnell.

Question 21.
State the twin objective of financial planning.
Answer:

To ensure availability of funds whenever required.
To see that the firm does not raise resources unnecessarily.

Question 22.
What do you mean by Dematerialization?
Answer:
Securities held by the investor in the physical form are canceled 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 Dematerialization.

Question 23.
State any two differences between Selling and Marketing.
Answer:

Selling	Marketing
It is only a part of the process of marketing. It is concerned with promoting and transferring possession and ownership of goods from the seller to the buyer. It is merely a part of marketing.	It is a wider term consisting of number of activities such as identification of the customer’s needs, developing the products to satisfy these needs, fixing prices and persuading the potential buyers to buy the same.
The main focus of selling is on transfer of title and possession of goods from sellers to consumers.	The main focus of marketing activities is on achieving maximum satisfaction of the customer’s needs and wants.
All selling activities are directed at maximizing the sales, and therefore the profits of the firm.	The objective of marketing is concerned with customer satisfaction and thereby increasing profits in the long run.
Selling activities start after the product has been developed.	Marketing activities start much before the product is produced and continue even after the product has been sold.

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.
Explain any four grounds to say Management is important.
Answer:
Management is considered important due to the following reasons:

Management helps in achieving group goals: Management is required to give a common direction to the individual effort, in order to achieve the group goals of the organisation.
Management increases efficiency: The main aim of every manager is to Increase efficiency i.e., to maximise output with minimum cost. This is achieved through better planning, organising, directing and controlling the activities of the organisation.
Management creates a dynamic organisation: All organisations have to function In an environment which is constantly changing. Resistance to change Is often observed with individuals management helps people adapt to these changes. so that an organisation is able to maintain its competitive edge.
Management helps for achieving personal objectives: A manager motivates and leads his team in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Through motivation and leadership the management helps individuals to develop team spirit, cooperation and commitment to group success.

Question 26.
Explain briefly four challenges that were faced by business and industry due to changes in government policy.
Answer:
The policy of liberalization, privatization and globalization of the Government has made a significant impact on the working of enterprises in business and industry. The Indian corporate sector has come face-to-face with several challenges due to government policy changes. These challenges can be explained as follows:

Increasing competition: As a result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased. This trend is more seen in service industries like telecommunications, airlines, banking, insurance etc. which were earlier in the public sector.
More demanding customers: Customers today have become more demanding because they are well-informed. Increased competition in the market gives the customers wider choice in purchasing better quality of goods and services.
Rapidly changing technological environment: Increased competition forces the
firms to develop new ways to survive and grow in the market. New technologies make it possible to improve machines, process, products and services. The rapidly changing technological environment creates tough challenges before smaller firms.
Necessity for change: In a regulated environment of pre-1991 era, the firms could have relatively stable policies and practices. After 1991, the market forces have become turbulent as a result of which the enterprises have to continuously modify their operations.
Need for developing human resource: Indian enterprises have suffered for long with inadequately trained personnel. The new market conditions require people with higher competence and greater commitment. Hence the need for developing human resources.

Question 27.
Distinguish between formal and informal organisation.
Answer:

Formal Organization	Informal Organization
1. It refers to the structure of well-defined authority and responsibility relationships.	It refers to the personal relationships which develop automatically when people work together.
2. Formal organization is created to achieve pre-determined goals.	Informal organization has no predetermined objectives.
3. It is planned and created deliberately.	It is unplanned and originates automatically.
4. The structure is well-defined and has authority and tasks.	There is no clear-cut structure as the emphasis is on people and relationships.
5. The relationship of people is impersonal.	The relationship of people is interpersonal.

Question 28.
Explain the internal sources of recruitment.
Answer:
Internal Sources of Recruitment methods include:
1. Promotions: Promotion is the vertical movement of an employee within the organization.
It refers to the upward movement of an employee from one job to another higher one, with increase in salary, status and responsibilities.
2. Transfers: Transfer means lateral movement of employee in the same grade, from one job to another, without any change in his status, responsibility and salary.

Merits of Internal Sources of Recruitment:

It is economical
It motivates the existing employees
Through transfer employees get training also in the form of job rotation

Demerits of Internal Sources of Recruitment

No fresher new ideas will come into the organization
There will be limited choice.
Not suitable for new organization
Frequent transfer may reduce the productivity of the employee.

Question 29.
Explain the qualities of a good leader
Answer:

Physical features: Physical features like height, weight, health, appearance determine the physical personality of an individual. It is believed that good physical features attract people.
Knowledge: A good leader should have required knowledge and competence. Only such person can instruct subordinates correctly and influence them..
Integrity: A leader should possess high level of integrity and honesty. He should be a role model to others regarding the ethics and values.
Initiative: A leader should have courage and initiative. He should not wait for opportunities come to his way, rather he should grab the opportunity and use it to the advantage of organization.
Communication skills: A leader should he a good communicator. He should have the capacity to clearly explain his ideas and make the people to understand his ideas. He should be not only a good speaker but also a good listener, teacher, counsellor and persuader.
Motivation skills: A leader be an effective motivator. The should understand the needs of people and motivate them through satisfying their needs.
Self-Confidence: A leader should have high level of self-confidence. He should not loose his confidence even in most difficult times. In fact, if the leader lacks self-confidence, he cannot provide confidence to his followers.
Decisiveness: Leader should be decisive in managing the work. Once he is convinced about a fact, he should be firm and should not change opinions frequently.
Social skills: A leader should be sociable and friendly with his colleagues and followers.He should understand people and maintain good human relations with them.

Question 30.
Write any four advantages of Electronic Trading System in Stock Exchanges.
Answer:
Electronic trading systems or screen-based trading has the following advantages:

It ensures transparency as it allows participants to see the prices of securities in the market while business is being transacted. They are able to see the full market during real time.
It increases efficiency of information being passed on, thus helping in fixing prices efficiently. The computer screens display information on prices and also capital market developments that influence share prices.
It increases the efficiency of operations. since there is reduction in time cost and risk of error.
People from all over the country and even abroad who wish to participate in the stock
market can buy or sell securities through brokers or members without knowing each other. This system has enabled a large number of participants to trade with each other, thereby improving the liquidity of the market.

Question 31.
Explain the limitations of controlling.
Answer:
Controlling suffers from the following limitations:

Difficulty in setting quantitative standards: Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. This makes measurement of performance and their comparison with standards a difficult task. Employee morale, job satisfaction and human behavior are such areas where this problem might arise.
Little control on external factors: Generally an enterprise cannot control external factors such as government policies, technological changes, competition etc.
Resistance from employees: Control is often resisted by employees. They see it as a restriction on their freedom.
Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system.

Question 32.
Explain with any four points on the importance of Financial Planning.
Answer:
Controlling suffers from the following limitations:

Difficulty in setting quantitative standards: Control system loses some of its effectiveness
when standards cannot be defined in quantitative terms. This makes measurement of
performance and their comparison with standards a difficult task. Employee morale, job
satisfaction and human behavior are such areas where this problem might arise.
Little control on external factors: Generally an enterprise cannot control external
factors such as government policies, technological changes, competition etc.
Resistance from employees: Control is often resisted by employees. They see it as a
restriction on their freedom.
Costly affair: Control is a costly affair as it involves a lot of expenditure, time and effort.
A small enterprise cannot afford to install an expensive control system.

Question 33.
Explain briefly any four objections against advertising.
Answer:
The major objections to advertising include:

Adds to cost: Some argue that advertising unnecessarily adds to the cost of the product, which is ultimately passed on the buyers in the form of high prices.
Undermines social values : Another important criticism of advertising is that it undermines social values and promotes materialism. It breeds discontent among people when they come to know about new products and feel dissatisfied with their present state of affairs.
Confuses the Buyers: So many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon.
Encourages sale of inferior goods: Advertising does not distinguish between superior and inferior products. Hence it persuades people to buy even the inferior products.
Some advertisements are in bad taste: some advertisements are in bad taste. These show something which is not approved by some people. They also distort the relationship like employer employee and are quite offensive.

Question 34.
State any four responsibilities of consumer while purchasing, using and consuming goods and services.
Answer:
The following are the responsibilities of the consumer:

Awareness of Rights: A consumer must be fully aware of various rights available to him while purchasing the products or availing of any services, such as right to safety; right to be heard etc.
Quality Conscious: A consumer must be cautious in respect of quality of the product like AGMARK, BIS, HALLMARK etc.
Not to be misled by false advertisements: Normally, the seller exaggerates the quality in their products, but the consumer must compare the actual quality with that stated in the advertisement. He should not be misled through false advertisement in order to safeguard his interest.
Cautious Consumer: A consumer must be honest in his dealings, choose only from legal goods and services and discourage unscrupulous practices like black-marketing, hoarding etc
Ask for cash memo: A consumer must ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchases made.

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 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 types of plans.
Answer:
In order to accomplish the targets, the management of a business organization chalks out different types of plans. The important types of plans are explained below:

Types of plans
1. Single-use plans: A single-use plan is developed for a one-time event or project. The examples are

Budgets
Programmes
Projects

2. Standing Plans: A standing plan is used for activities that occur regularly over a period of time. The examples are

Policies
Procedures
Methods
Rules

3. The other plans Include strategies and objectives.

Brief explanation of the various types of plans are as follows:

1. Objectives: Objectives are the end points towards which the activities of an organization are directed. They are said to be the desired future position that the management would like to reach.
Objectives are very basic to the organization which the organization wants to achieve by its operations.
Objectives are set by the top management. They lay down guidelines for the activities and serves as a bench mark for measuring the performance of an organization.
Objectives need to be expressed in specific terms. They should he expressed in quantitative and measurable terms. They are also to he put in the form of written statements and they represent the desired results to be achieved in a given period.

2. Strategies: A strategy provides the broad contours of an organization’s business.
Strategies are the specific programmed of action [or achieving the objectives o the organization by employing the organizations resources efficiently and effectively.
A strategy is a comprehensive plan which acts as a guideline to handle specific problems. Major strategic decisions will include decisions like whether the organization will continue to be in the same line of business, or combine new lines of activity with the existing business or seek to acquire a dominant position in the same market.

3. Policy: Policies are general statements that guide thinking.
Policies provide a basis for interpreting strategy.
Policy is a guide to managerial action and decision in the implementation of strategy

Strategies are formulated by the top management. Formulation of strategy involves the following aspects:

Determination of the long term objectives
Adopting a course of action to achieve the objectives and
Allocating resources necessary to achieve the objectives.

4. Procedure: Procedures are routine steps on how to carry out activities. They detail the exact manner in which any work is to be performed. Procedures are the guidelines to action and they are usually intended to the works which are repetitive in nature. Examples of procedure include procedure for execution of the customer’s order for supply of goods and procedure for recruitment of employees in an organisation.

5. Methods: Methods provide the prescribed ways in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. Method has a limited scope compared to the procedure. Examples of methods include training the employees under off the job training method. remunerating the sales men under bonus and commission method etc.

6. Rules: Rules are specific statements that inform what is to be done.
Every organization likes to operate in an orderly way. For this purpose ¡t is necessary for
the business organization to lay down certain rules.
Rules are the specific statements which prescribe the code of behavior to the people of an
organization. Rules are rigid. Their violation attracts penalty and disciplinary action. An example of a rule is ‘wear identity cards compulsorily at the work placet

7. Programmes : Programmes are detailed statements about a project which outlines the objectives, policies, procedures, rules, tasks, human and physical resources required. A program is a precise plan which lays down the operations to be carried out to accomplish a given task within a specified period of time. Programmes are framed for the works which are non – repetitive in nature. An example for a programme includes sale of 5000 cars in the month of March, 2019.

8. Budget: Budget is a statement of expected results expressed in numerical terms.
Budget is a plan which expresses the future facts and figures in quantitative terms for a specified period.
Budget is considered a control device. An example for a budget is a sales budget which forecasts the sales of different products in each area for a particular period.

Conclusion: The success of the business depends to a large extent on the effective planning. Thus, the logical and scientific planning must go through the above steps.

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 recruitments 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. Interestests

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
L. 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 in terms of the requirements of the job. The following tests are usually conducted to measure the intelligence, aptitude, proficiency, personality etc

a. 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

b. 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

c. 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

d. 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.

e. 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 personalite, 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 for a 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 honesty, 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.

7. Job Offer: Candidates finally selected are offered to join the organization, for which a formal appointment order is issued by the organization. It contains the nature of the job, the remuneration, pay scale and other terms and conditions relating to employment. Usually a reasonable time is given to the candidates to join the organization.

8. Contract of Employment: If the selected candidate decides to join the organization, he has to report to the concerned authority and formally join the organization by giving his consent in writing. This is known as acceptance of job offer. Then, the organization will open a service register in the name of the candidate and records all details like qualification, particulars of employment, pay scale etc.

Conclusion: Workers are essential, active and sensitive factor of production. Utmost care should be taken in their selection. The above process assists in proper selection of the workers who will remain the permanent assets of the organization.

Question 38.
What are barriers to communication? Suggest the suitable measures to improve communication effectiveness.
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. Organisational barriers: These arise from the organizational goals, regulations, structure and culture. Organisational barriers include:

Poor planning
Structure complexities
Status differences
Organisation at 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

Following are the ways to overcome barriers to effective communication:
1. Clarity of ideas: The problem to be communicated to subordinates should be clear in all aspects. The entire problem should be studied in depth, analysed and stated in such a manner that is clearly conveyed to subordinates.

2. Communicate according to the needs of receiver: The level of understanding of receiver should be crystal clear to the communicator. Manager should adjust his communication according to the education and understanding levels of subordinates.

3. Consult others before communicating: Before actually communicating the message, it is better to involve others in developing a plan for communication. Participation and involvement of subordinates may help to gain ready acceptance and willing cooperation of subordinates.

4. Be aware of languages, tone and content of message: The contents of the message, tone, and language used, manner in which the message is to be communicated are the important aspects of effective communication. The language used should be understandable to the receiver and should not offend the sentiments of listeners.

5. Convey things of help and value to listeners: While conveying message to others, it is better to know the interests and needs of the people with whom you are communicating. the message relates directly or indirectly to such interests and needs it certainly evokes response from communicate.

6. Ensure proper feedback: The communicator may ensure the success of communication by asking questions regarding the message conveyed. The receiver of communication may also be encouraged to respond to communication. The communication process may be improved by the feedback received to make it more responsive.

7. Communicate for present as well as future: Generally, communication is needed to meet the existing commitments to maintain consistency; the communication should aim at future goals of the enterprise also.

8. Follow up communications: There should be regular follow up and review on the instructions given to subordinates. Such follow up measures help in removing hurdles if any in implementing the instructions.

9. Be a good listener: Manager should be a good listener. Patient and attentive listening solves half of the problems. Managers should also give indications of their interest in listening to their subordinates.

Question 39.
Explain the functions of Stock Market.
Answer:
Stock Exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying and selling or dealing in securities. The following are the important functions of stock exchange:

i. Providing liquidity and marketability to existing securities: The basic function of a stock exchange is the creation of a continuous market where securities are bought and sold. It gives investors the chance to dis-invest and reinvest. This provides both liquidity and easy marketability to already existing securities in the market.

ii. Pricing of Securities: share prices on a stock exchange are determined by the forces of demand and supply. A stock exchange is a mechanism of constant valuation through which the prices of securities arc determined. Such a valuation provides important instant information to both buyers and sellers in the market.

iii. Safety of Transaction: The membership of a stock exchange is well regulated and its dealings are well defined according to the existing legal framework. This ensures that the investing public gets a safe and fair deal on the market.

iv. Contributes to Economic Growth: A stock exchange is a market in which existing securities are resold or traded. Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues. This leads to capital formation and economic growth.

v. Spreading of Equity Cult: The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices and taking effective steps in educating the public about investments.

vi. Providing scope for speculation: The stock exchange provides sufficient scope within the provisions of law for speculative activity m a restricted and controlled mannet. It is generally accepted that a certain degree of healthy speculation is necessary to ensure liquidity and price continuity in the stock market.

vii. Regulates company management: Listed companies have to comply with rules and regulations of concerned stock exchange authorities. Thus. stock exchanges put the burden on the company to have healthy practices.

Question 40.
Explain the elements of 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 Il Borden. It refers to aggregate of strategies formulated to achieve various marketing objectives. Marketing mix is the combination of four inputs that revolve around the consumer satisfaction as the focal point. These four element are product, price, promotion and the place physical distribution.

These elements are popularly known as 4 Ps of marketing.

Element of marketing mix:

The marketing mix consists of various elements, which have been broadly classified into four
categories popularly known as four Ps of marketing which are as follows:
i. Product mix : Product means anything of value’ which is offered to the market for sale.Product is one of the main elements of marketing mix. In marketing terms, product refers to anything that satisfies the needs of the consumers. It may be a good, a service or an idea.
The product mix has the following important components:
Brand, Style, colour, design, product line, Package, warranty etc.
The concept of product also include the extended product or what is offered to the
customers by way of after sale services, handling complaints, availability of spare parts etc

ii. Price mix : Price represents the value of a product expressed in terms of money it is the amount of money customers have to pay to obtain the product. The price mix is concerned with fixing a reasonable price to the product or services that covet’s the cost and distribution expenses as well gets reasonable profits to the manufacture. The basic variables related to price mix include pricing strategy, pricing policy, credit terms. discounts, allowances etc,

iii. Promotion mix : Promotion of product and services include activities that communicate availability, features, merits etc, of the products to the target customer and persuade them to buy it. The promotion mix includes personal selling, publicity, advertising and sales promotion. Most marketing organisations, undertake various promotional activities and spend money on the promotion of their goods using promotional tools such as advertising, personal selling etc, the success of a market offer will depend on how well these ingredients are mixed to create superior value for the customers and also achieve
their sale and profit objective.

iv. Place : Place or physical distribution include activities that make firm’s products available to the target customers. It is concerned with making available of the goods and services at right time, at right place, in right quantity. It enables for the smooth flow of goods and services from the producers to the customers. It creates place, time and possession utilities. The place mix includes distribution channels like agents, wholesalers retailers etc. and physical distribution which includes transport, warehousing, inventory etc.

Conclusion: The process of marketing involves creating a market offering, to satisfy the needs and wants of the present and potential buyers. From a number of alternatives available a firm chooses a particular combination to develop a market offering the combination of variables chosen by a firm to prepare its market offering is called as marketing mix.

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 neat diagram of levels of management
Answer:

Question 42.
Mention any ten sources of Recruitment
Answer:

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