EXAM HANDBOOK BUSINESS STUDIES-XII TERM-II EXAM PAS) lol ee aS) Ded ra reel) ee ee ema] SYNOPSIS -— Chapter-wise Revision Notes HOTS - High Order Thinking Skills Based Questions CASE STUDY - Case/Situation/Source Based Questions fae Reet tT eee) THIRD EDITION Shree Radhey PublicationsCO OA Cue Ceca Curt eo ye EU tolen Qu Qn Qs 4 as qr Qs as Quo Qui Cac) Sample Paper 4 (for March 2022 Term-II Exam) "A control technique should keep a check on each and every activity in an organisation.” Do you agree with the given statement? Give a valid reason in support of your answer (2 marks) Manali Jain isthe Senior Manager in the Advisory Services Department of Kodes Ltd. She regularly prepares performance reports of her subordinates as a part of the appraisal. Identify and explain the step of the controlling process performed by heer (2 marks) ‘The Trading Procedure on Stock Exchange has been replaced by on-line screen based electronic trading system, This is mainly done to eliminate problems like theft, fakelforged transfers, transfer delays and paper work associated with share certificates fr debentures in physical form. This isa process where securities held by che investor in the physical form are cancelled and the investor is given an electronic entry or number so that ho/she can hold it as an electronic balance in an account. This has increased the equity cule among the people (@)_ Identify and stare the process mentioned above. (b) What is the most importane requirement forthe process identified in (a)? Explain. (2 marks) ‘Madhav purchased a smart phone for 30,000 from a mobile phone seller on his verbal commitment that the smart phone will be replaced in ease of any defect, within a span of six months. The phone seared creating technical issues in spite of proper maintenance and upkeep of che phone. The seller denied raking any action on the complaine made by Madhay. Name the redressal agency under Consumer protection Act, 2019 where Madhav can fil his complint. Give reason in support of your answer. (2 marks) 5 If right kind of employees are nor available, it will lead to wastage of materials, time, effort and energy, resulting in lower productiviey and poor quality of products The enterprise will noc be able to els product profitably Is therefor, escent that right kind of pople mast be available in right number at the right time. They should he given adequate training so that ‘wastage is minimum. They must ako be induced to show higher productivity and quality by offering them proper incentives (3). densify the two Functions of management highlighted above (©) Identify and explain the evo concepts of management highlighted above, which Delp the management increase its efficiency by minimising wastages an increasing employee producti G marks) oR ‘A public tsansport corporation has hired 2000 buses for the different routes for the passengers of metropolitan city. In order to fll vacances, it advertised in the newspaper and numberof applicants applied for the same. (2) Kdeniy the step of staffing function highlighted here. State its essential objective {b)_ Enumerate the various atvidessteps involved with the proces of the step of staffing fnetion identified Explain briefly che dhrce styles of kadership based on the use of authority 6 marks) Prcksha purcha%ed a food processing machine for £10,000 ftom ‘Shrejt Machinery Pvt Led” She found that the machine was ror working propery: Despite many complaints, the defect was noe rected by Shrceji Machinery Pe. Led (2) Identify the consumer right that has been violated by Shreeji Machinery Pvt. Led. {)_ Suggest the appropriate forum where Preksha can ile her complaint (€) Can she appeal to the Supreme Court if she is not satisfied with the order of che appropriate forth? Give reason in support of your answer 6 marks) Poonam Bhasin, the Finance Manager and Raji Son, the Managing Director of Ghokemns Led wete discussing regarding the source of finaice to be fag for modefantion of thir exiting plane. QuatNy chat Saxoeg ae Yared by 5O7E poina’ inthe last thee years Poonan Bhasin stgents that equity should be preferred while Raji Sonf wanted co opt fr debt Keeping in mind the high operiting css nf che company, sagget the source of nance that shold he we for modernization of existing plant. Abo explain the rw aieahighlghted above which shold be Kepe i tind for taking chis decision, marks) Explain in brief the diflait ages in eaflgg pioBa ssCe(aaish Rakpower eGuirements, searching for prospective employes and taking a series of employment est ad iterviews. (5 mars) OR Explain briefly che important rss used fr selection of employes he stock exchange can pla vial role in ensuring wider share ownership by regulating new asus, better trading practices and taking effeccve ses in educating the public about invesoment. Identify the function of stock exchange highlighted abowe. Also, explsn any four other fanctions of tock exchange, (5 marks) A Public rangport corporation has hired 1000 buses for the diferent routes fr the pastengers of metropolitan city. Most of the 3000 crewinen (drivers, conductors, helpers etc) of these buses have been found to be unsatisfactory dealing with public and daily commuters. They scem tobe le interested inthe job and he job scem to have lose all meaning co chem. As tanger ofthe public transport company what fnancal and non-financial incentives will you use to improve the working of crewman in question? Explain (5 marks)Qu ETS Wy WMD i Ceca eek res )) aac mo) oR Surya is working in a multinational company in Gurgaon. He was running temperature forthe lst many days. When his blood was tested, he was found positive for dengue with avery low platelet count. Therefore, he was admited in the hospital and blood transfusion was advised by che dctors. One of his colleagues sent a text message about itt his immediate superir “Mr Shiv "Me. Shiv’ in eurnsene a text message to the employees ofthe organisation requesting them ro donate blood for Surya ‘When the General Manager came to know about i, he ordered for Fumigation in che company premises and cleanliness of the sorroundings (3) From the above para quote lines that indicate formal and informal communication. (©) State any dee features of informal communication. 6 marks) Shubh Stationery Ltd’ want to raise funds of 840,00,000 fr is new project. The management i considering the following nic of debe and equity tore this amount Capital ‘Alternative Structure 1@) Lis TH) Equity 45,00,000 313,00,000 10,00,000 Debe D 10,00,600 30,00,000 Other deal ar as follow’ Interest Rate on Debt 3% Face Va of Equi Shans @100.ach Tox Rate 30% Earning Before Interest and Tax (BIT) @) 8,00,000 {@) Under which of che three alternatives will dhe company be able o ake advantage of Tading on Equity? {b) Docs Eaening Per Share always rise with increas in debe?Poa Ce cu Cuet ed Answers 1 ‘The given statement is incormect. It is neither economical nor easy to keep a check on each and every activity in an organisation. A control technique should, therefore, focus on Jey result areas (KRAs) which are critical to the succes of an ‘organisation, If anything goes wrong atthe critical points.the entire organisation suffers. For instance, in a manufaccuring organisation, an increase of 5 per cent in the labour cost may bhe more troublesome than a 15 per cent inerease in postal charges. This is called Critical Point Control - Measurement of Actual Performance (a) Dematerialsation: This is a process where securities held by the investor in the physical form are cancelled and the investor is given an electronic entry of number so thar shefhe can hold it ae an electronic balance in an account. (b) The investor has to open a demat account or ‘beneficial ‘owner’ (BO) account with a depository participant (DP) for holding and transfering sccurities in the demat form, He must have ot open a bank account for cash transactions in the securities market. No, Madhav cannot fle a complaine against the seller in the consumer coure as he does not have cashememo, He had purchased mobile phone on the verbal commitment only. = Option: (@) Staffing and Directing Cron Sy huts WU trd Cac) 10. Spreading of Equity cule 11, T Option: Financial incentives: (0) Productive linked wage incentives Gi) Retirement benefits i) Perquisies Explain any nue) Non-Financial incentive (0) Career Advancement Opportuniy i) Job Enrichment {i) Employee Recognition Programmes () Job Security Explain any tree) 11 Option: (@) Informal communication — employees of the organisation requeting them to donate blood for Aran. Formal communication— ene a tet mestaget0 the andered for frigatin in the company premises and eleantines of ze iurrounding. (©) Features of informal communication takes place following the formal lines ofeommunication, + Informal system oF communication is generally referred toss he ‘grapevine’ because it spreads ‘through our the organisation with its branches going out in all directions in utter disregard eo the levels ofaathoriy + The informal communication. arises out of needs of cmployees toexchange their views, which cannot be + Informal communication without by the State CDRC. Appeals from the State CDRC will bie heard by the National CDRC. Final appeal will ie before the Supreme Court = Bauity Factors {Stock marker conditions! State ofeapital marker. (ii) Fixed operating costs! Risk considerations. Option: Hine: (i) Placement and Orientation (i) Training and Development (il) Performance Appraisal (iv) Promotion and Career Planning (¥) Compensation (b) Training and Motivation (Explain) Tine Ea channels Option 2.) (© Racine Thea gpa aL — = off agp Le scence Poem _Abcernative I | Alvernastve II | Alcornaetve IIT suitable applicants to apply for avilable jobs. Equity 40,00,000 | 30,00,000 | 10,00,000 (b) The various acivinies involved with the proccss of }2*Dee 3 10,00,000 | _30,00,000 hulp ely Goal Foren t00 40.00.00] 4000.0 i Mentificaton of the different sources of labour | Emslored beet Eamiogbeiee [Bonn gf” sobs | Teno el Esai i Ascent thal ra Ta - iii, Choosing the most suitable source or sources eee = ae a eo a iv. Inviting applications — from: srospective ierning bee 7 5,30,00 we ee oe Len tex@30%- | c24n000) | asowy | _1:39:000 ~ (a). Right to be heard Exning Atewtad | 5.6000 497,000 [3.7.00 (0) Disice Commision: bate the Disuiee CDR win Hele Aa crea comline whe ibe posh ad vs Fase] S| po ‘Share 40,000 30,000 10,000 (©) Yes; because appeals from a District CRC will be heard wed ots Beart "Thus, under Alternative Il, the company will be able e take advantage of Trading on Equity. (6) No, Earning Per Share (EPS) does not always rise with increase in debe, When cost of debt is greater than ROI, use ‘of more deb decreases the EPS.