II YEAR PUC BUSINESS STUDIES 2023-24

HOTS QUESTIONS (COMPETENCY BASED QUESTIONS)

4 MARKS QUESTIONS

Chapter 3 - BUSINESS ENVIRONMENT

1. The project of Nano car re-established in Gujrat is indicated by which factors of
environment? write a note on it.
ANS: Political Environment. ---------(1 marks)
(for note on political environment, 3 marks it includes brief explanation)

2. Parents are focusing on girls education number of working women has in all fields.
State the dimension of business environment with which it is related. Write a note on
it.
ANS: Social Environment. ----------(1 marks)
(for note on social environment, 3 marks it includes brief explanation)

3. The court passed an order that all schools must have water purifier for the school
children as
a. Society in general is more concerned about quality of life.
b. Innovative techniques are being developed to manufacture water purifiers at
competitive rates.
c. Incomes are rising and children at home are also drinking purified water.

ANS: The court passed an order that all schools must have water purifier for the school
children as ---this line depicting the legal environment. Business as to functioning with
in the frame work of laws and regulations.
a. Society in general is more concerned about quality of life - this line depicting the
social environment. As this environment consists of all the social and cultural force
with in which business firm operated.
b. Innovative techniques are being developed to manufacture water purifiers at
competitive rates - this line depicting the technological environment. It includes
forces relating to scientific improvements and innovation.
c. Incomes are rising and children at home are also drinking purified water - this line
depicting the economic environment. It consists of the factors and forces
concerning means of production and distribution of wealth.

4. The court passed on order to ban polythene bags as

 a. These bags are creating many environmental problems.
b. Society in general is more concerned about quality of life.
c. The government decided to give subsidy to jute industry to promote this business.
ANS: The court passed on order to ban polythene bags as - this line is depicting the
legal environment.
a. These bags are creating many environmental problems - this line is depicting Social
environment.
b. Society in general is more concerned about quality of life - this line is depicting
social environment.
c. The government decided to give subsidy to jute industry to promote this business -
this line is depicting the political environment.

5. Management of every enterprise can be benefited from being aware of different

dimensions of business environment. explain any four such dimension.
ANS: 1) economic environment
2) Social environment
3) Political environment
4) Legal environment
(Any four points with brief explanation, each point 1 marks.)

6. Show the different elements of business environment that influence the success of
business enterprises with a neat diagram.
ANS: Elements of business environment diagram.

Chapter 6 - STAFFING
1. Suppose you are the General Manager of Surya and Co. Ltd. you have been directed
by the Directors of the company to select a charactered Accountant for the company.
Explain the first four Selection procedure you will follow for the same.
a) Preliminary screening
b) Selection tests
c) Employment interview
d) Reference and Background checks
(with explanation)

2. Which source of recruitment is needed to bring new blood in the organization? Explain
briefly any three advantages of this sources.
ANS: External source---- 1marks
Advantages of external source---- 3 marks with brief explanation.
 3. The quality of production is not as per standards. On investigation it was observed that
most of the workers were not fully aware of the proper operation of the machinery.
what could be the way to improve the accuracy? Briefly explain any three benefits to
the organization.
ANS : Training----------(1marks)
Benefits to the organization any three (3 marks)

4. As a HR manager, list out any eight sources of recruitment to fill in the vacancies in
your organization.
a) Direct Recruitment
b) Casual callers
c) Advertisement
d) Employment Exchange
e) Placement agencies and Management consultants
f) Campus recruitment
g) Recommendation of employees
h) Labour contractors
i) Advertising on television
j) Web publishing

Chapter 9 - FINANCIAL MANAGEMENT

1. Identify the decision taken in financial management which affects the liquidity as well
as the profitability of business and explain briefly any three factors affected in this
decision.
ANS: Capital budgeting decision ----(1marks)
Factors affecting capital budgeting decision (any three with explanation 3 marks)

2. To avoid the problems of shortage and surplus of funds what is required in financial
management? name the concept and explain its any three importance.
ANS: Financial planning (1marks)
Importance of financial planning (any three 3 marks)

3. You are the finance manager of a newly established company. The directors of the
company have asked you to plan the capital structure of company. State any four
factors that you would consider while planning the capital structure.
a) Cash flow position
 b) Interest coverage ratio
c) Debt service coverage ratio
d) Return on investment
e) cost of debt
f) Tax rate
g) Cost of equity
h) Floatation costs
i) Risk consideration
j) Flexibility
k) Control
l) Regulatory framework
m) Stock market conditions
n) Capital structure of other companies
(any 4 factors with explanation)

4. The board of Directors has asked you to design the capital structure of the company.
Explain any four factors that you would consider while doing so.
ANS: For design the Capital Structure of the company four factors are as following:
a. Cash flow position
b. Interest coverage ratio
c. Debt service coverage ratio
d. Return on investment (any other four factors)

5. What do you call the capital needed for day-to-day operations? Explain any 3 factors
affecting such capital needs.
ANS: Capital needed for day-to-day operations is called working capital (1marks)
Working capital factors (any three factors)

6. State whether the working capital requirements of business manufacturing the

following items are big or small. Justify you statement
a) Coolers b) Sugar c) Furniture manufacturing against orders
b) Bread
ANS: a) coolers: working capital required for manufacturers of coolers will be more
because it is seasonal product.
b) Sugar: working capital required for manufacturers will be more as ration of
raw material cost of total cost is more.
c) Furniture: Requirements of working capital for a manufacturers of furniture
manufactured against specific order is less as it does not require large tock.
 d) Bread: requirements of working capital will be less because it has quick cash
turnover.

7. As a financial consultant, give the list of any 8 factors which affect the choice of capital
structure.

Chapter 10 - MARKETING
1. As a publisher, you have published a new book on marketing management. How will
you determine the price of this book? Explain any four factors.
ANS: a. Cost of production
b. Demand of the book
c. Price of other competitive books
d. Government regulation
e. Purchasing power of the customer
(any 4 points with brief explanation)
2. List the promotional message given on the package of any three consumer products
of your choice and comment how can these promotional messages helps in the sale
of these products.
Promotional messages given on the package helps in promotion of the product. These
messages give reason to purchase the product. Some promotional messages are-
a. Tomato Ketchup - 20% extra free.
b. Boost – Boost is the secret of all energy.
c. Amla Hair oil – Baalon mein dum, life mein fun.
(any other examples with comment )3+1

3. The manager or impact enterprises dealing in cosmetics is facing the problem of poor
sales? Suggest and explain any four promotional measures that he can undertake to
improve the sales.
a) Rebate
b) Discount
c) Refunds
d) Product combinations
e) Quantity gift
f) Instant draws and assigned gift
g) Lucky draw
h) Usable benefit
i) Full finance @ 0%
j) Sampling
 k) Contests
(any four promotional activities with explanation)

4. Packaging has acquired great significance in the marketing of goods. In the light of this
statement state any four functions of packaging.
a) Product identification
b) Product protection
c) Facilitating use of the product
d) Product promotion
(with brief explanation.)

5. As a Marketing manager suggest any five sales promotion activities to boost up the
sales.
a) Rebate
b) Discount
c) Refunds
d) Product combinations
e) Quantity gift
f) Instant draws and assigned gift
g) Lucky draw
h) Usable benefit
i) Full finance @ 0%
j) Sampling
k) Contests

MATCH THE FOLLOWING

CHAPTER 3
1. Totality of external force – characteristics of business environment.
2. Social Values – Social Environment
3. Consumption habits – Elements of social environment
4. The level of political morality – Elements of political environment
CHAPTER 5
5. Departmentalization - Steps in the process of organizing
6. Right to order – Authority
7. Delegation of authority- Decentralization
8. Clarity in work relationship – Importance of organizing
9. Identification and Division of work – Steps in the process of organizing

CHAPTER 6
10. Placement – Staffing process
11. Training –Staffing process
12. Recruitment – Aspects of staffing
13. Transfer – Internal Source
14. Direct recruitment – External Source
15. Aptitude Tests – Important test used for selection
16. Development – career-oriented process
17. Training - Job oriented process.

CHAPTER 8
18. Controlling – Management function
19. Backward looking function – controlling
20. Setting performance standards – controlling process

CHAPTER 10
21. Selling concept – concept of marketing
22. Branding – Marketing functions
23. Place – Marketing mix
24. Cooker – Durable product
25. Raw material – Industrial products