Bihar Board 12th Business Studies Important Questions Short Answer Type Part 1 are the best resource for students which helps in revision.
Bihar Board 12th Business Studies Important Questions Short Answer Type Part 1
Does mere planning ensure success?
Sometimes the managers think that planning solve all their problems. Such a thinking makes them neglect their real work and the adverse effect; of such an attitude has to be faced by the organisation. In this way, planning offers the managers a false sense of security and makes them careless. Hence we can say that mere planning does not ensure success, rather efforts have to be made for it.
What is meant by lay-off?
Lay-off refers to the temporary separation, of the employee from a employer on the initiative of the later. In most cases, the lay-off takes place due to lack of work. There is clear understanding between the employer and the employee that the preference will be given to that employee as and when the work will be available. Thus, by recalling the laid off employees vacant position may be filled up.
What is meant by investment decision?
Investment decision: It relates to as how the funds of a firm are to be invested into different assets, so that the firm is able to earn highest possible return for the investors. Investment decision can be long term, also known as capital budgeting where the funds are committed into long term basis.
Short term investment decision also known as working capital decision and it is concerned with the levels of cash, inventories and debtors.
Why NSEI is known as Model Exchange?
National stock exchange of India is known as model exchange because it is a unique stock exchange of its own kind. The first exchange in the country to provide a modem, fully automated screen based electronic trading system.
The word communication has been derived from Latin word ’Communis’. What does it mean?
Communication is a process which involves a sender of message and a receiver. Communication is complete only when the receiver is able to interpret the message as desired by the sender and responds to it.
Communication is regarded as a two way process. The process of communication begins when one person (the sender) wants to transmit a fact; idea, opinion or other information to someone else (the receiver). This fact, idea or opinion has meaning to the sender, whether it be simple and concrete or complex and abstract. The next step is to translate or convert the message into a language which reflects the idea. That is the message must be encoded.
“Management is a soft science.” How?
Management as a Science: Science may be defined as a systematic body of knowledge pertaining to a particular field, consisting universally accepted principles, which are based on observation and experiments.
Thus, following are the essential features of science:
- Existence of systematized body of knowledge
- Use of scientific methods of observation
- Principles based on experiments
- Established cause and ef feet relationship
- Universal validity of principles.
What is meant by Authority?
Authority: The power of taking decision in order to guide the activities of others is called ’authority’. In other words, ’authority’ is that power which influence the conduct of others. In this way authority, has the following three elements: (i) To use one’s wisdom and take decisions, (ii) To get the decision implemented, (iii) To influence the conduct of the subordinates.
Why is it said that ’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. It is, therefore, said that control is blind without planning or it is without any base.
What is meant by channels of Distribution?
Channel of distribution refers to that path through which the products reach the consumers. In this path many people and firms participate. They are called Middleman/Intermediary. It includes mainly Agents, Wholesalers and Retailers. Channels of distribution can be small or large. For example, when we purchase sweets from a local sweet shop then there is no middleman between the manufacturer and the consumer. This is the smallest distribution channel. This is also called Direct Trade.
Why it is said that principles of Management are universal?
Management is an essential element of every organised activity irrespective of its zero or type. All type of organisations e.g. family, club, university, government, army, cricket team or business, require organisation. The basic function of management are same in every group activity.
Given definitions of Management.
According to Koontz and O’Donnell. “Management is the art of getting things done through and with people in formally organised groups. It is the art of creating an environment in which people can perform as individuals and yet co-operate towards attainment of group goals. It is the art of removing blacks to such performances, a way of optimising efficiencey in reaching goals.”
According to Peter F. Drucker, “Management is a multipurpose organ that manages a business, manages managers and manages workers and work.”
“Planning is a mental process.” Explain in brief.
Planning is a mental process: Planning is known as mental process as it is related to thinking before doing. A planner has mainly to think – (i) What to do? (ii) How to do? (iii) When to do? and (iv) Who is to do?
Explain the importance of management.
Management is a universal activity that is integral to any organisation. We now examine some of the reasons that have made management so important.
1. Management helps in achieving group goals: Management is required not for itself but for achieving the goals of the organisation, the task of a manager is to give a common direction to all.
2. Management increases efficiency: The aim of a manager is to reduce costs and increase productivity through better planning, organising directing, staffing and controlling the activities of organisation.
3. Management creates a dynamic organisation: All organisations have to function in an environment which is constantly changing.
4. Management helps in 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.
5. Management helps in the development of society: An organisation has multiple objective to serve the purpose of the different groups that constitute it. In the process of fulfilling all these management helps in the dcyelopHtobt of the organisation and through that it helps in the development of society it helps to provide good quality products and services, creates employment opportunities and leads the path towards growth and development.
Explain the level of management and their main functions.
Level of Management:
Generally speaking there arc three, levels in the hierarchy of an organisation:
1. Top management: They consist of the seniormost executives of the organisation by whatever name they are called. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. Top management is a term consisting of managers from different functional levels. Their basic task is to integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation. They are responsible for the welfare and survival of the organisation. Their job is complex and stressful.
2. Middle Management: It is the link between top and lower level management. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, operation managers or plant superintendent. They are responsible for implementing and controlling plans developed by top management. At the same time they are responsible for all the activities of first line management. Their main task is to carry out to plans formulated by the top management and at the same time they are responsible for all the activities of first line managers.
Name important characteristics of management.
After knowing about management we find some elements that may be called the basic characteristics. They are as follows:
- Management is a goal oriented process.
- Management is all pervasive.
- Management is multidimentional.
- Management is a continuous process.
- Management is a group activity.
- Management is a dynamic function.
- Management is an intangible force.
Write limitations of planning.
Following are the limitations of planning:
- Uncertainty of future conditions.
- Misuse of time and money.
- Required flexibility.
- Frustration work etc.
What do you mean by staffing?
Staffing is concerned with filling various positions or job in the organisation with the suitable personnel. Staffing basically involves maintaining job and individuals. This may requires a number of functions like man power planning recruitment selection, training, promotion, transfer etc. Various authors took of staffing as one of the elements of the organizing process. We can say in brief, staffing refers to filling and keeping fixed the posts with people.
“Management is a group activity”. Why?
Management is a group activity since management is essential to undertake any organised activity, one may infer that management is concerned with a group activity. It involves the use of group efforts in the pursuit of predetermined objectives.
“Management increases efficiency.” How?
Management reduces costs and increases productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.
“Management helps in development of society.” How?
By providing good quality products and services, creating employment opportunities, adopting new technology and leading the path towards growth and development.
“Management creates a dynamic organisation.” How?
Management helps people adapt to the changes so that the organisation is able to maintain its competitive edge which results in creating a dynamic organisation.
Why is it said that “management is all pervasive”?
Because the activities involved in managing an enterprise are common to all organisations whether economic, social or political.
Why are the principles of management called contingent?
Management principles are not absolute or state in nature. They cannot be applied blinding in all situation. They have to be applied keeping in view the prevailing situations.
State the principle of ‘Order’.
It states a place for everything (everyone) in its (her/his) place for increasing productivity and efficiency.
What is meant by Scientific management?
Scientific management refers to the use of scientific methods in decision, making to resolve management problems rather than depending on rule of thumb or trial and error-methods.
How is planning a pervasive function? State.
Planning is required at all levels of management as well as in all departments of the organisation.
Planning reduces the risks of uncertainty. How?
Planning enables a manager to look a head and anticipate changes and develop responses to them.
Planning is a time consuming process. Why does this become a limitation?
There is not much time left for implementation of plan as sometimes much of time is consumed in drawing up the plans.
State first two steps in the process of planning.
- Setting objectives
- Developing premises
What is meant by ‘policy’ as a type of plan?
Policy is a general statement that guides thinking or channelises ‘ energy towards a particular direction.
Define ‘objectives’ as type of plans.
Objectives are the ends which the management seeks to achieve by its operations, e.g., increasing sales by 10%.
Enumerate difference types of organisational structure.
Different types of organisational structure:
- Functional structure
- Divisional structure
When is the functional structure more suitable?
Functional structure is most suitable when the size of the organisation is large has diversified activities and operations require a huge degree of specialization.
Why is it easy to fix responsibility in formal organisation?
Because rules and responsibilities as wen as the inter relationship of different job positions are made clear.
Selection is the process of carefully screening the candidates who offer themselves for appointment so as to Choose the most appropriate person for the job.
What is an interview?
Interview is a phase of testing on the basis of face to face interaction between the interview and applicant with a view to finding the suitability of candidate keeping in view the job requirements.
Define job rotation.
It involves shifting the trainee from one department to another or form one job to another.
What is meant by directing?
Directing as a function of management is concerned with instructing, guiding and inspiring people in the organisation to achieve its objectives. It involves overseeing people at work, making provisions for necessary facilities and creating a work environment whereby employees may perform to the best of their abilities.
Supervision means overseeing the subordinates at work. It is an important function of every manager. It implies observing the subordinates at the work to see than they are working according to the plan and policies of the organisation and keeping the time schedule and do help them in solving their work problems.
Motivation may be defined as the process of stimulating people to action to accomplish designed goals. It involves arousing needs and desires in people to initiate and direct their behavior in a purposive manner. According to Koontz and O’ Donnell, “To motivate is to induce people and to act a desired manner.”