[Class 12 Business Studies Solved question Paper, AHSEC, 2015, Assam Board]
BUSINESS STUDIES SOLVED QUESTION PAPERS
AHSEC CLASS 12 BUSINESS STUDIES' 2015
BUSINESS STUDIES
Full Marks: 100
Time: 3 hours
The figures in the margin indicate full marks for the questions.
1. Answer the following questions: 1*10=10
a) At which level business policy is farmed? 1
Ans: Top Level
b) Who defined management as the art of getting things done through others? 1
Ans: Harold Koontz
c) Which principle of management promotes team spirit? 1
Ans: Esprit de Corps
d) Which technique of scientific management does provide of eight specialist foremen over workers? 1
Ans: functional foremanship
e) Name the function by which managers build an organization through the recruitment, selection and development of individual as capable employees. 1
Ans: Staffing
f) Which is the most costly capital for a company? 1
Ans: Working Capital
g) In which year NSE came into existence? 1
Ans: 1992, NSEI was recognized in 1992.
h) Which marketing philosophy gives more importance to ‘Consumer Welfare’ instead of ‘Consumer Satisfaction’? 1
Ans: Societal marketing
2. Mention two features of planning. 2
Ans. Following are the features of Planning:
A) Planning contributes to objectives: Planning starts with the process of setting up the objectives. We cannot think of planning without objectives. After setting up the objectives various activities are decided which would help in the achievement of the same.
B) Pervasive: Planning is required at all levels of management. It is not a function restricted to top level managers only but planning is done by managers at every level.
3. What do you mean by organisation structure? 2
Ans: Organisational structure can be called as a framework within which managerial and operational tasks are performed by various managers. It specifies the relations between people, work and resources.
Points to be taken while framing organisational structure:
a) Job design and expected result of the job.
b) Departmentation of various jobs.
c) Span of management i.e., How many subordinates are under one superior.
d) Delegation of authority.
4. Why internal source of recruitment is considered to be more economical? 2
Ans. Advantages of Internal Source of Recruitment:
a) Less costly and time consuming: Time and costs of training will be low because employees remain familiar with the organisation and its policies.
b) Less training: As the persons in the employment of the company are fully aware of, and well acquainted wit, its policies and know its operating procedures, they require little training, and the chances are that they would stay longer in the employment of the organisation than a new outsider would.
It is due to the above mentioned advantages, internal source of recruitment is more preferable as compared to external source of recruitment.
5. Name four elements of directing. 2
Ans: Supervision, leadership, Motivation and communication.
6. Write two features of money market. 2
Ans. Features of Money Market:
(a) It is a collection of market for following instruments: Call money, notice money, repos, term money, treasury bills, commercial bills, certificate of deposits, commercial papers.
(b) It is a market for short term funds.
(c) It has no fixed geographical location.
7. State three importance of controlling. 3
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ALSO READ (AHSEC ASSAM BOARD CLASS 12)
1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES
2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)
3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)
4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS
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Ans. A good control system helps an organization in the following ways:
(i) Accomplishing organizational goals: The controlling function measures progress towards the organizational goals and brings to light the deviations, if any, and indicates corrective action.
(ii) Making efficient use of resources: By exercising control, a manager seeks to reduce wastage and spoilage of resources. This ensures that resources are used in the most effective and efficient manner.
(iii) 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 appreciated.
8. Discuss the relationship between planning and controlling. 3
Ans. The relationship between planning and controlling can be divided into the following two parts.
(i) Interdependence between Planning and Controlling.
(ii) Difference between Planning and Controlling.
(i) Interdependence between Planning and Controlling. Planning is meaningless without controlling and controlling is blind without Planning. Both the aspects of the interdependence of planning and control have been discussed below:
(a) Planning is meaningless without Controlling: if the process of controlling is taken away from management no person working in the enterprise will take it seriously to work according to the plans and consequently, the plans will fail.
(b) Controlling is blind without Planning: Under the system of controlling actual work performance is compared with the standards. Hence, if the standards are not determined there is no justification left for control and the standards are determined under planning.
(ii) Difference between Planning and Controlling: Yes, planning and controlling are incomplete and ineffective without each other but it doesn’t mean that both are not independent. Reasons are:
(a) Planning is looking Ahead whereas Controlling is Looking Back: Plans are always formulated for future and determined the future course of action for the achievement of objectives laid down. On the contrary, controlling is looking back because under it a manager tries to find out, after the work is completed, whether it has been done according to the standards or not.
(b) Planning is the first function and Controlling is the last function of Managerial Process: the managerial process moves in a definite sequence- like planning, organizing, staffing, directing and controlling happens to be the last step.
9. State in brief the three decisions involved in financial management. 3
Ans: a) Investment decision b) Financing decision c) Dividend decision
a) Investment decision: Funds procured from different sources have to be invested in acquiring fixed assets as well as current assets. When decision regarding fixed assets is taken it is called capital budgeting decision.
b) Finance decision: The second important decision which finance manager has to take is deciding source of finance. Under this decision finance manager has to decide how much to raise from owner’s fund and how much to raise from borrowed fund. This type of decision is also known as capital structure decision.
c) Dividend decision: Dividend Decision: This decision is concerned with distribution of surplus funds. The profit of the firm is distributed among various parties such as creditors, employees, shareholders, debenture holders etc. Under this decision the finance manager decided how much to be distributed in the form of dividend and how much to keep aside as retained earnings.
10. State five leading functions of middle level management. 5
Ans: Middle management consists of departmental heads and other executive officers of different departments. They execute the policies framed by the top management. They are a link between the top management and supervisory or lower level of management. Functions of middle level management
a) They explain the main plans and policies framed by the top management to the lower level.
b) They prepare the organizational set up of their department.
c) They find out suitable personnel and assign duties to them for execution of their department functions.
d) They offer various incentives to employees so that they get motivated and perform to their best ability.
e) They control and instruct the lower level management and also prepare their performance appraisal reports.
11. State five leading techniques of scientific management. 5
Ans: Techniques of Scientific Management are given below:
a) Fatigue study: It refers to the duration and frequency of rest intervals to complete a particular job. The rest refreshes the workers. They work again with full energy and stamina. Long working hours, poor working conditions, unsuitable work can also be the causes of fatigue. It should be reduced.
b) Method study: It refers to identify the most suitable, economical way of doing a particular activity. To conduct this study, process chart, operation research technique can be used. The main objective is to minimize the cost of production and maximize the quality of the work.
c) Motion Study: Motion study is designed to eliminate unnecessary motions and to reinforce necessary motions. It is a close observation of analyzing the body movements of the worker performing the job. This study helps in analyzing that if any element of the job can be eliminated or not.
d) Time study: This study helps in determining the time required by an average skill worker to efficiently perform a particular job. Time study helps in determining the standard time for the job. This standard time is then fixed for the workers for performing the job. So, time study is used to measure precisely the time required in doing every element of a job with the purpose of deciding the fair day’s work.
e) Mental Revolution: Taylor emphasized the mutual cooperation between the workers and the management as the human element comprising of worker and management is essentially a very sensitive factor of production. The basic idea behind the mental revolution is to change the mental attitude of the workers and the management towards each other. Mental revolution requires that there should be perfect cooperation and coordination between the efforts of labour and the management.
f) Functional foremanship: In this technique Taylor suggested the division of factory in two departments: planning department and production department as Taylor felt that workers must be free from the burden of planning and they must concentrate on work and production.
12. How a business is influenced by political and legal environment? 5
Ans: Political Environment: This includes the political system, the government policies and attitude towards the business community and the unionism. The political environment has immediate and great impact on the business transactions so businessman must scan this environment very carefully. All these aspects have a bearing on the strategies adopted by the business firms.
Legal Environment: This refers to set of laws, regulations, which influence the business organisations and their operations. Every business organisation has to obey, and work within the framework of the law. The important legislations that concern the business enterprises include Companies Act, 1956; Foreign Exchange Management Act, 1999; The Factories Act, 1948 etc.
Besides, the above legislations, the following are also form part of the legal environment of business.
(i) Provisions of the Constitution
(ii) Judicial Decisions
Or
How globalization has affected business in India?
Ans: Impact of Globalisation on business in India:
a) Increasing competition: As a result of changes in the rules of industrial licensing and entry of foreign firms, competition for Indian firms has increased especially in service industries like telecommunications, airlines.
b) 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.
c) 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.
d) 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.
e) Threat from MNC Massive entry of multi-nationals in Indian marker constitutes new challenge. The Indian subsidiaries of multi-nationals gained strategic advantage. Many of these companies could get limited support in technology from their foreign partners due to restrictions in ownerships. Once these restrictions have been limited to reasonable levels, there is increased technology transfer from the foreign partners
13. Discuss any five limitations of planning. 5
Ans: Limitations of Planning:
1. Planning does not work in dynamic environment: The business environment is dynamic, nothing is constant. The environment consists of a number of dimensions— economic, political, technological, legal and social dimensions. The organisation has to constantly adapt itself to the changes in business environment. However, it is not always possible to accurately assess future trends in the environment.
2. Planning is a time consuming process: Planning is a time consuming process. It requires collection of information, its analysis and interpretation. These activities may take considerable time.
3. Planning involves huge costs: Planning is an expensive process in terms of money. When plans are drawn up, huge costs are involved in the formulation of plans. If the costs are not justified by the benefits derived from the plan, it may have adverse effect on the enterprise.
4. Planning creates rigidity: Planning leads to rigid mode of functioning for managers. This has adverse effect on the initiative to be taken by them.
5. Planning does not guarantee success: The success of an enterprise is possible only when plans are properly drawn up implemental. Managers have a tendency to rely on previously tried and tested successful plans. But it is not always true that a plan which has worked before, will work effectively again.
6. Planning reduces creativity: Planning is an activity which is done by top management. As a consequence, middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own.
14. Explain briefly the process of staffing. 5
Ans: Steps involved in Staffing Process:
1) Enumerating man power requirement: Staffing process begins with the estimation of man power requirement which means finding out number and type of employees need by the org. in future.
2) Recruitment: After man power planning, the manager tries that more and more people should apply for the job so that the org. can get more choice and select better candidates.
3) Placement and Orientation: Placement refers to placing the right person on the right job for which he is selected. Orientation refers to introducing the new employees with the existing employees.
4) Selection refers to choosing the most suitable candidate to fill the vacant job position. It is a negative process because a number of candidates are rejected under it.
5) Training and Development: The process of training helps to improve the job knowledge and skill of the employees. Training and Development not only motivate the employees but these improve efficiency of work also.
6) Performance Appraisal: At this step the capability of the employees is judged and for that his actual work performance is compared with the work assigned to him. Performance and career planning: It is a process through which employees get better salary, status, position and also get promotion to higher post.
7) Compensation: For deciding the compensation the works are evaluated. Compensation must be reasonable and related with the work.
Or
Distinguish between recruitment and selection.
Ans. The difference between Recruitment and selection are:
Basis
|
Recruitment
|
Selection
|
Meaning
|
It is the process of searching and Motivating candidates to apply for Job.
|
It is that process of staffing which rejects the unsuitable candidates and choose the suitable candidates.
|
Purpose
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The basic purpose is to create a large pool of applicants for the jobs.
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The basic purpose is to eliminate as many candidates as possible until the most suitable candidates get finalized.
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Scope
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Recruitment is restricted to the extent of receipt of application.
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Selection includes sorting of the candidates.
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Positive /Negative process
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Recruitment is a positive process. As more and more applicant are sought to be attracted.
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Selection is a negative process as more applicants are rejected than selected.
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Criteria
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It gives freedom to applicants. Any one is free to apply.
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It gives very little freedom to applicants. Applicants must meet the selection criteria.
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15. Define financial market. Explain four functions of financial market. 1+4=5
Ans: Meaning of Financial Market: A financial market is an institution that facilitates exchange of financial instruments including deposits, loans, corporate stocks, government bonds, etc.
According to Brigham "The place where people and organizations wanting to borrow money, are brought together, with those having surplus funds is called a financial market".
This definition makes it clear that a financial market is a place where those who need money and those who have surplus money are brought together. They may come together directly or indirectly. Financial market in India performs an important function of mobilization of savings and channelizing them into most productive uses.
Role and Functions of financial market
a) It encourages savings and facilitates mobilization of savings by financial intermediaries.
b) It enhances the liquidity of financial assets by providing ready market.
c) It helps in the allocation of credit to productive investments.
d) It meets the various credit needs of the business houses.
e) It serves as intermediaries in the process of mobilization of savings in the economy.
Or
Explain five instruments of money market.
Ans: Money market is the short term security market. Following are the instruments dealt in money market.
a) Treasury bills: It is a short term borrowing by the Government of India. It is also called a zero coupon bond as no interest is paid on such bills but they are issued at a discount redeemable at par. These are issued by the RBI on behalf of government of India. They are issued in the form of promissory note.
b) Commercial Paper: These are unsecured promissory notes issued by highly creditworthy companies. These are negotiable instrument that can be transferred by mere delivery with a fixed maturity period. It usually has a maturity period of 15 days to one year. The purpose of commercial paper is to meet the short term needs.
c) Call money: It is short term finance repayable on demand, with a maturity period of one day to 15 days. It is required to meet the requirements of CRR determined by Reserve bank of India. Commercial banks require minimum balance to be kept with RBI as CRR. When the cash reserve ratio increases, banks fall short of reserve so the need for call money arises.
d) Certificate of deposit (CD): CD is unsecured negotiable short term instruments in the bearer form issued by the commercial banks and financial institutions. These can be issued to the individuals or corporations during periods of tight liquidity when the demand for credit is high.
e) Commercial bills: These are the trade bills issued to meet the working capital requirement. The trade bill issued by the Drawer (Supplier) and accepted by the Drawee (Debtor) can be discounted with the bank for meeting short term requirements. It is a negotiable instrument and can also be endorsed from one person to another.
16. Discuss in brief the factors that are taken into consideration while taking decision on pricing the product. 5
Ans: It refers to all those decisions which are concerned with the price fixation of any product or service. Factors determining Fixation of price:-
i) Cost of the product: Cost of the product is the main component of the price. No company can sell its product or service at less than the cost of the product. A Fixed and variable cost are to be considered for determining the price.
ii) The utility and demand for the product: Intensive study for the demand for product and service in the market is to be undertaken before the fixation of the price of the product. If demand is relatively more than supply, higher price can be fixed.
iii) Extent of competition in the market: It is necessary to take into consideration prices of the product of the competing firms prior to fixing the price. In case of cut throat competition it is desirable to keep price low.
iv) Government & Legal Regulation: If the price of the commodity and service is to be fixed as per the regulation of the govt., it should also be borne in mind.
v) Pricing objective: Usually at the time of price fixation a certain amount of profit is added to the cost of the product. Objective is to earn higher profit, it may it may add amount of it.
vi) Marketing method used: Price also influenced by the marketing method used by the company. Example – Commission which is to be paid to the middlemen for the sale of the goods is also added to the price.
17. What is divisional organisational structure? Outline three merits and demerits of such structure. 2+3+3=8
Ans: When the organisation is large in size and is producing more than one type of product then activities related to one product are grouped under one department. This type of organisation is called divisional structure organisation.
Advantages/Merits
a) Product specialisations as one type of product are grouped under one department.
b) Fast decision making since there is no dependence of one department on other department.
c) Fast decision making leads to flexibility.
d) Expansion of new department without disturbing existing departments.
Disadvantages\Demerits
a) Each department will require all the resources as every division will be working as an independent unit.
b) Conflict on allocation of resources.
c) Each department focuses on their product only.
Or
Mention the four steps in the process of organisation. How centralization differs from decentralisation? 4+4=8
Ans: Steps in Organising:
a) Identification and Division of Work: The first step in the process of organizing involves identifying and dividing the total work to be done into specific activities (called jobs) in accordance with previously determined plans. Such division of work into jobs is necessary because one individual cannot perform the entire work.
b) Grouping jobs and Departmentalisation: The second step in organizing is to combine or group similar/related jobs into larger units called departments, divisions or sections. This grouping process is called “Departmentalisation”.
c) Assignment of Duties: It is necessary to allocate work to various employees. Once departments have been formed, each of them is placed under the charge of an individual, called departmental head. Jobs are then allocated to the members of each department according to their skills and competencies.
d) Establishing Reporting Relationships: Merely allocating work is not enough. Each individual should also know from whom he has to take orders and to whom he is accountable. The establishment of such reporting relationships helps in coordination amongst various departments.
Difference between cetralisation and decentralisation:
Centralisation refers to concentration of power or authority in few hands i.e., top level. An organisation is centralised when the decision-making authority is in the hands of top level management only.
Decentralisation is defined as systematic distribution of authority at every level of management. Under decentralisation every employee working at different levels gets some share in the authority.
Basis
|
Centralisation
|
Decentralisation
|
1. Meaning
|
It refers to concentration of power at higher level only.
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It refers to distribution of powers at every level of management.
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2. Suitable
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It is suitable for small size organisations.
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It is suitable for large scale organisation.
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3. Freedom of actions
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Managers have less freedom of actions. (2017)
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Managers have more freedom of actions.
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4. Authority at different levels
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Top management retains maximum authority. (2017)
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The authority is systematically divided at every level.
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ALSO READ: AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS
BUSINESS STUDIES SOLVED QUESTION PAPERS 2012
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18. Discuss in detail eight fundamental principles of directing. 8
Ans: Principles of Directing are given below:
a) Maximum Individual contribution: According to this principle, directing must help every individual employee to contribute his Best towards the achievement of organizational goal.
b) Harmony of objectives: Directing must ensure that the individual goals of employees and that of organization do not conflict with each other. Directing must aim at bringing harmony among them.
c) Follow through: Managers must continuously review whether the instructions are being understood and followed by the employees or not.
d) Unity of Command: According to this principle an employee should receive orders from one boss only to avoid confusion. If there are more bosses it can create problem amongst superiors.
e) Effective leadership: A manager must possess the qualities of a good leader. He must guide his subordinates not only on work problems but also on their personal problems.
f) Principle of Use of Informal Organisation: According to this principle, there must be a free flow of information between the seniors and the subordinates. The success of direction depends upon effective exchange of information to a great extent.
g) Principle of Appropriateness of Direction Technique: According to this principle, appropriate direction techniques should be used, e.g., to supervise effectively, to provide able leadership, to adopt free communication and to motivate through right medium.
h) Principle of Managerial Communication: According to this principle, it should be monitored by the management that the subordinates get the same meaning for what has been said. This simplifies the job of the subordinates and they need not go to the managers repeatedly for enquiring.
Or
Distinguish between formal and informal communication. State three barriers to communication. 5+3=8
Ans: The difference between formal and informal communication are:
Basis
|
Formal Communication
|
Informal communication
|
Channel
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It follows formal or established line of command.
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It is a based on informal relationship and arises as a result of personal social or group relations between People.
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Nature
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Rigid.
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Flexible.
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Speed
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The speed of communication is usually slow.
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It transmits information swiftly.
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Need
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It serves organizational need.
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It serves organizational as well as individual needs to socialize with others.
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Records
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Its record is kept for future reference.
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No record can be kept.
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Types of Barriers: The barriers to communication in an organization may be broadly categorized into following groups:
a. Physical Barriers: There are the environmental factors that also reduce the sending and receiving of communication, such as physical distance, noises and other interferences difficulty arises in communicating a message.
b. Socio-psychological or personal Barriers: There are certain socio psychological factors which restrict the free flow of communication. They are the attitude and opinions, status consciousness, ones relations with fellow workers, seniors, and junior’s etc. family background.
c. Organizational Barriers: Organisational barriers arise due to defects in the organization structure and the communication system of an organization. Such barriers include hierarchical distance, diversion, status barriers, goal conflicts etc.
19. What are the three aspect of financial planning? State two objectives and three importance of financial planning. 3+2+3=8
Ans: Financial Planning is the process of estimating the capital required and determining its composition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise. In simple words, it refers to determination of firm’s financial objectives, financial policies and financial procedure.
Three aspects of financial planning:
a) Creation of wealth: It Includes Setting financial goals and constructing a savings and investment plan. This aspect of financial planning talks all about wealth building, tax planning and budgeting.
b) Protection of wealth: Primarily this is about insurance. A proper risk protection strategy will protect us from the most common risks.
c) Succession of wealth: Wealth succession is about realising our goals and managing for the future. This means retirement planning and estate planning.
Objectives of Financial Planning: Financial planning is done to achieve the following two objectives:
1. To ensure availability of funds whenever these are required: The main objective of financial planning is that sufficient fund should be available in the company for different purposes. It ensures timely availability of finance.
2. To see that firm does not raise resources unnecessarily: Excess funding is as bad as inadequate or shortage of funds. If there is surplus money, financial planning must invest it in the best possible manner.
Importance of Financial Planning
Financial Planning is required to avoid shortage or surplus of finance. It is important because:
a) It facilitates collection of optimum funds: The financial planning estimates the precise requirement of funds which means to avoid wastage and over-capitalisation situation.
b) Basis for financial control: Financial planning helps in setting up standard performance and thereafter it is compared with the actual performance. The deviations, if any are analysed, Causes found out and corrective action is taken.
c) Link between investment and financing decisions: Financial planning helps in deciding debt/equity ratio and by deciding where to invest this fund. It creates a link between both the decisions.
d) Helps in investing finance in right projects: Financial plan suggests how the funds are to be allocated for various purposes by comparing various investments proposals. Selecting right projects is the key of success for any organisation.
e) Helps in coordination of various business activities: It helps in coordinating the various business activities such as sales, purchases, production, finance etc.
Or
Distinguish between fixed and working capital. Explain the factors that determine the amount of fixed-capital need. 4+4=8
Ans: The difference between fixed capital and working capital is as follows:
a) Purpose: Fixed capital is used to buy fixed assets like land and building whereas Working capital is used to carry out day to day operations.
b) Assets included: Fixed capital consists of land, building, tools, machines etc. whereas Working capital consists of cash, marketable securities, accounts receivable, stock etc.
c) Time period: Fixed capital includes long term financial decisions whereas Working capital includes short term financing decisions.
d) Activities: Fixed capital is mainly required for operational activities whereas Working capital is required for trading activities.
e) Calculation: Fixed capital is calculated by deducting long term liabilities from total fixed assets whereas working capital is calculated by deducting current liabilities from current assets.
Following factors are to be considered before determining the amount of fixed capital need:
1. Scale of operations: There is a direct link between the scale of business and fixed capital. Larger business needs more fixed capital as compared to the small organizations.
2. Nature of Business: If a firm is a manufacturing fir, it requires to purchase fixed assets for the production process. It needs investment in fixed assets, so require more fixed capital. Similarly if it is a Trading firm where the finished goods are only traded i.e. purchased and sold, it needs less fixed capital.
3. Choice of technique: The Manufacturing firm using the modern, latest technology machines has to invest more funds in the fixed assets, so they require more fixed capital. On the other hand, firms using the traditional method of production where the task is performed manually by the labourers, it requires less fixed capital.
4. Diversification: There are few firms and organizations who deal in a single product. These investments in fixed assets is low, whereas the firms dealing in number of products (Diversification) requires more investment in purchasing different fixed assets, it requires more fixed capital.
5. Financing alternatives: If the manufacturing firm actually buys the assets and blocks huge funds in the fixed assets, it requires more fixed capital.
20. Discuss eight leading functional areas of marketing. 8
Ans: Marketing is a social process whereby people exchange goods & services for money or for something of value to them.
Functional areas of Marketing / Marketing activities
a) Marketing research : It means application of resource of research process in solving the marketing problem. Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantities do they buy, from where do they buy etc.
b) Marketing planning: Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives.
c) Product designing and development; Marketer must take decision like, what-product? Which model / size? Brand name? Packaged? Quality level? So that customer needs are satisfied.
d) Buying & assembling: e.g. car. Raw material like steel, tyres, batteries, seats, stearing wheels etc are bought & then assembled in the form of a complete product.
e) Packing / labeling: Packaging is defined as a set of tasks or activities which is concerned with the design and production of an appropriate container for the product. A label identity is the product or brand. Labels are attached one to the product package to help the identification and provide some identity to the customer.
f) Branding: It can be designed as the process of using a name term, symbol or design to identify a product. It is simply giving a name / a sign / a symbol etc to a product. For example: Pepsi, Nike etc.
g) Advertising: Individuals working in this field focus on creating advertisements with the correct messaging for the target audience. Additionally, advertisers must decide on the best way to display these advertisements in the mass media with an end goal to reach the correct customer/audience.
h) Sales: This subject area includes the efforts needed to effectively to convert prospects into customers, or mining-the-vault with current customers. Individuals working in sales step in to find innovative solutions to prospects’ problems and brings in a human aspect of doing business with a particular company.
Or
What are the elements of promotion mix? Discuss any two of them. 2+3+3=8
Ans: Promotion mix: Promotion means communication with customers to stimulate them to buy goods. The nature of promotion mix is determined by the marketing environment. There are various dimensions of promotion mix are:
a. Advertising and publicity
b. Personal selling techniques
c. Sales promotion measures
d. Public relation techniques etc.
a. Advertising: It is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid by the marketers (sponsors) to promote goods or services. Common mediums are newspaper, magazine, television & radio.
Advertisements play a very important role in offering innumerable benefits to the manufacturers, customers and to the society in general. Following are the benefits of Advertisements:
1. Advertisements attracts new buyers and maintains existing customers and to the society in general.
2. Advertisements inform the consumers about the quality and uses of the product.
3. Advertising also acts as an information service and educates the consumer. It enables him to know exactly what he wants and where to get it.
4. Advertising stimulates production and reduces the cost per unit. This reduction in the cost is generally passed on to the consumer.
5. Advertising also makes it possible to sell direct to the consumer by Mail Order Business.
6. Advertising helps in creating goodwill, brand image and brand loyalty.
7. Advertisements help the retailers in selling the advertised products.
8. It is also helpful in getting better employees and executives.
b. Personal selling: Personal selling is the act of presenting of product or services so that the consumer appreciate the need for it and mutually satisfactory sales follows.
Features of Personal selling:
a) Personal contact is established under personal selling.
b) Oral conversation.
c) Quick solution of queries.
d) Receipt of Additional Information.
e) Development of relationship.
Qualities of a Good salesman:
a) Physical Qualities : Physical qualities include personality health, stamina and tolerance
b) Mental Qualities: These include mainly skill, mental alertness, imagination and self confidence.
c) Social Qualities: These include social-abilities tact, sound character, and sweet nature.
d) Vocational Qualities: It includes mainly knowledge of product, knowledge of competitive product, training and aptitude.
21. Explain any three responsibilities of consumer to safeguard his interest. 3
Ans. Main responsibilities of consumer are given as under:
a) Be aware about their right: Consumer must be aware of their own rights.
b) Quality conscious: while making purchase, consumer should look for quality certification.
c) Must obtain cash memo: Consumer must insist on cash memos as cash memo act as proof of purchase.
d) Be Assertive: The consumer must be assertive in his dealings.
e) Be Honest: Consumer must act honestly and choose goods/services, which are legitimate.
Or
Why entrepreneurship is regarded as a creative activity? 3
22. Explain the role of consumer organizations and NGO’s in protecting and promoting consumer interests. 3
Ans: Functions of Consumer organisation and Non-Government Organisations (NGO):
a) Creating consumer awareness: They publish periodicals brochures journals etc for creating consumer awareness.
b) Encourage the consumer: They encourage and educate the consumer to protect against exploitative, unfair trade practice of the seller.
c) Filing complaints: They file suits, complaints, on behalf of consumer.
d) Focus on consumer problem: They arrange seminars, workshops and conference for the purpose of focusing on problem of consumer.
e) Problem legal assistance: They provide legal assistant for getting legal remedy against the damage caused to consumer.
Or
Outline three basic forces of entrepreneurial motivation.
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