2nd PUC Business Studies Model Question Paper 1 with Answers

   

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Karnataka 2nd PUC Business Studies Model Question Paper 1 with Answers

Time: 3 Hrs 15 Min
Max. Marks: 100

SECTION – A

I. Answer any ten of the following questions in a word or a sentence each.
Each questions carries one mark. (10 × 1 = 10)

Question 1.
Management is _____________

  1. an art
  2. a science
  3. both art and science
  4. neither

Answer:
3. both art and science

Question 2.
Who is known as the Father of General Management?
Answer:
Henry Fayol is known as the Father of General Management.

Question 3.
Give the meaning of ‘Rule’.
Answer:
Rule is a specific statement that informs what is to be done.

Question 4.
A network of social relationship that arise spontaneously due to interaction at work is called _________

  1. Formal Organization
  2. Informal Organization
  3. Decentralization
  4. Delegation

Answer:
2. Informal Organization

KSEEB Solutions

Question 5.
State any one internal source of recruitment.
Answer:
Transfer

Question 6.
Grapevine is ____________

  1. Formal Communication
  2. Barrier to Communication
  3. Lateral Communication
  4. Informal Communication

Answer:
4. Informal Communication

Question 7.
What is ‘Standard’?
Answer:
Standards are the criteria against which actual performance would be measured.

Question 8.
Give the meaning of Capital Structure?
Answer:
Capital structure refers to the mix between owners and borrowed funds.

Question 9.
The settlement in NSE is __________

  1. T+5
  2. T+3
  3. T+2
  4. T+l

Answer:
3. T+2

Question 10.
State any one marketing philosophy.
Answer:
The production concept.

Question 11.
State any one regulation which provides legal protection to the consumers.
Answer:
The consumer protection Act, 1986.

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Question 12.
Who is an ‘Entrepreneur’?
Answer:
The person who set- up his business is called an entrepreneur.

SECTION – B

II. Answer any ten of the following questions in two or three sentences each.
Each question carrier two marks: (10 × 2 = 20)

Question 13.
Define Management.
Answer:
According to Harold Koontz, “Management is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims”.

Question 14.
What is Scalar Chain?
Answer:
The formal lines of authority from highest to lowest ranks are known as a scalar chain.

Question 15.
Give the meaning of Business Environment.
Answer:
The term business environment means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.

Question 16.
State any two features of planning.
Answer:

  1. Planning focuses on achieving objectives
  2. Planning is a primary function of management.

KSEEB Solutions
Question 17.
Differentiate between Delegation and Decentralization by taking any two factors as a basis.
Answer:
2nd PUC Business Studies Model Question Paper 1 with Answers Sec B img 1

Question 18.
What do you understand by Supervision?
Answer:
Supervision is an element of directing. It means overseeing what is being done by subordinates and giving instructions to them. It is also considered an important function to be performed by supervisor.

Question 19. What is Budgetary Control?
Answer:
Budgetary control is a technique of managerial control in which all operations are planned in advance in the form of budgets and actual results are compared with budgetary standards.

Question 20.
State the twin Objectives of Financial Planning.
Answer:

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

Question 21.
How do you describe Marketing Mix?
Answer:
The 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 H Borden. It is the combination of four inputs namely product, price, promotion and place.

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Question 22.
Write any two Rights of Consumers.
Answer:

  1. Right to Safety
  2. Right to be informed

Question 23.
State any two characteristics of Entrepreneurship.
Answer:

  1. Systematic activity
  2. Innovation

Question 24.
Expand KASH as explained in the context of Entrepreneurship.
Answer:
K = Knowledge
A = Attitude
S = Skills
H = Habits

SECTION – C

III. Answer any seven of the following questions in 10 – 12 sentences.
Each question carrier 4 Marks: (7 × 4 = 24)

Question 25.
Explain F.W. Taylor’s Scientific Management Principles.
Answer:
Scientific management refers to the use of scientific and standardized tools, methods and trained workers in all organisational activities in order to increase the total production with minimum cost and wastage. Following are the principles of scientific management contributed by FW Taylor.

1. Science not Rule of Thumb:
Taylor was the first person to introduce the method of scientific inquiry into the domain of management practice. He believed that there was only one best method to maximise efficiency i.e., by scientific way. Scientific management includes scientific selection of workers, placement and training, work-study motion study fatigue study, time – study, gradation of equipments and machinery, payment of wages according to work done, etc.

2. Harmony, Not discord:
There should be harmonious relationship between management and workers. Both should realise that each one is important. This avoids class-conflict. To achieve this, Taylor introduced mental revolution. Both management and workers should transform their thoughts in order to achieve harmonious relationship amongst them.

3. Cooperation, Not individualism:
There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation. Both should realise that they need each other. To achieve this fact, the management should consult their employees while taking important decisions.

There should be a two way communication between management and workers. According to Taylor, there should be almost equal division of work and responsibility between workers and management.

4. Development of each and every person to his or her greatest efficiency and prosperity:
Industrial efficiency depends on personnel competencies. According to Taylor, efficiency could be achieved from the beginning i.e., from the time of selection of employees.

Each person must be scientifically selected. Work should be assigned according to his mental and intellectual capabilities Proper training should be given to improve his/her skill. This will contribute to their greatest efficiency and prosperity for both organisation and workers.

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Question 26.
Explain any four points to explain how important the understanding of business
environment is for the managers.
Answer:
The importance of business environment can be explained in the following points:

1. Identification of opportunities:
Business environment enables the firm to identify opportunities and getting the first mover advantage. Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors.

2. Identification of threats:
The study of business environment helps the firm to identify threats and helps to know early warning signals.

3. Helps in tapping useful resources:
Environment is a source of various resources for running a business. To engage in any type of activity, a business enterprise assembles various resources called inputs like finance, machines, etc from its environment. The business enterprise supplies the environment with its outputs such as goods and services for customers etc.

Because the enterprise depends on the environment as a source of inputs and as an outlet for outputs, the enterprise designs policies that allow it to get the resources that it needs so that it can convert those resources into outputs that he environment desires. This can be done better by understanding what the environment has to offer.

4. Coping up with rapid changes:
Today’s business environment is getting increasingly dynamic. All business enterprises are facing increasingly dynamic environment. In order to effectively cope with these significant changes, managers must understand and examine the environment and develop suitable courses of action.

5. Assistance in planning and policy formulation:
Since environment is a source of both opportunities and threats for a business enterprise, its understanding and analysis can be the basis for deciding the future course of action or training guidelines for decision making.

6. Improved performance:
The future of an enterprise is closely bound up with what is happening in the environment. And the enterprises that continuously monitor their environment and adopt suitable business practices are the ones which not only improve their present performance but also continue to succeed in the market for a longer period

Question 27.
Explain any two types of plans.
Answer:
Types of plans:
1. Single-use plans:
A single-use plan is developed for a one-time event or project. The examples are

  1. Budgets
  2. Programmes
  3. Projects

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

  1. Policies
  2. Procedures
  3. Methods
  4. Rules

1. Policy:

  1. Policies are general statements that guide thinking.
  2. Policies provide a basis for interpreting strategy.
  3. Policy is a guide to managerial action and decision in the implementation of strategy.
  4. Strategies are formulated by the top management.

Formulation of strategy involves the following aspects:

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

2. Procedure:
1. Procedures are routine steps on how to carry out activities. They detail the exact manner in which any work is to be performed.

2. Procedures are the guidelines to action and they are usually intended to the works which are repetitive in nature.

3. 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.

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Question 28.
Explain any four important tests used for the selection of employees.
Answer:
After screening the applications, eligible candidates are asked to appear for selection tests. 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.

Question 29.
Explain briefly the steps involved in Controlling Process.
Answer:
Controlling is a systematic process involving the following steps:

1. Setting performance standards:
The first step in the controlling process is setting up of performance standards. Standards are the criteria against which actual performance would be measured. Standards can be set in both quantitative as well as qualitative terms.

2. Measurement of Actual Performance:
Once performance standards are set, the next step is measurement of actual performance. It is generally believed that measurement should be done after the task is completed.

3. Comparing actual performance with standards:
This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms.

4. Analysing deviations:
Some deviation in performance can be expected in all activities. After identifying the deviations that demand managerial attention, these deviations need to be analysed for their causes. These causes may be unrealistic standards, defective process, inadequacy of resources, structural drawbacks, etc. It is necessary to identify the exact cause of deviation, failing which an appropriate corrective action might not be possible.

5. Taking corrective action:
The final step in the controlling process is taking corrective action. No corrective action is required when the deviations are within acceptable limits. When the deviations go beyond the acceptable range, it demands immediate managerial attention. Corrective action might involve training of employees if the production target could not be met.

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Question 30.
Explain any four factors that affect the Working Capital requirements of a business.
Answer:
The factors affecting the working capital requirement of a business are as follows:

a. Nature of Business:
The basic nature of business influences the amount of working capital required. A trading organization usually needs a smaller amount of working capital compared to a manufacturing organization. Similarly, service industries which usually do not have to maintain inventory require less working capital.

b. Scale of Operations:
for organizations which operate on a higher scale of operation, the quantum of inventory and debtors required is generally high. Such organizations, therefore, require large amount of working capital as compared to the organizations which operate on a lower scale.

c. Business Cycle:
Different phases of business cycles affect the requirement of working capital by a firm. In case of a boom, the sales and production are likely to be larger and therefore larger amount of working capital is required. Working capital requirement will be less during the period of depression as the sales and production will be small.

d. Seasonal Factors:
Most business have some seasonality in their operations. In peak season, because of higher level of activity, larger amount of working capital is required. When the level of activity is less, working capital requirement will be less.

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31. Briefly explain any four differences between Capital Market and Money Market.
Answer:

Money Market Capital Market
It is a market where short-term funds are borrowed and lent. It is a market where long-term funds are borrowed and lent.
The participants in the capital market are financial institutions, banks, corporate entities, and foreign investors. The participants in the money market are RBI, banks, financial institutions, and finance companies.
Individuals can take part in the trading of capital market Individuals cannot directly trade in the money market.
The instruments involved for transaction are treasury bills, calls money, certificate of deposit, commercial papers, commercial bills, etc. The major players are companies, Individual investors, Institutional Investors, foreign investors, banks and financial institutions.

Question 32.
Explain any four factors that affect the fixation of price of a product.
Answer:
1. Cost of the product:
Cost of the product includes the cost of producing, distributing and selling the product. The cost sets the floor price at which the product may be sold. The firm aims at earning a margin of profit over and above the costs. Total costs are the sum total of the fixed, variable and semi-variable costs for the specific level of activity.

2. The Utility and Demand:
While the product costs set the lower limits of the price, the utility provided by the product and the intensity of demand of the buyer sets the upper limit of the price, which a buyer would be prepared to pay. According to the law of demand, consumers usually purchase more units at a low price than at high price. The price of a product is also affected by the elasticity of demand of the product. If the demand of a product, is inelastic, the firm can fix higher prices and vice versa.

3. Extent of competition in the market:
Price is affected by the nature and the degree of competition. If less competition is there in the market, prices can reach the upper limit. Thus, competitors prices and their anticipated reactions must be considered before fixing the price of a product.

4. Government and legal regulations:
In order to protect the interest of public against unfair practices in the field of price fixing, Government can intervene and regulate the price of commodities. Government can also declare a product as essential product and regulate its price.

Question 33.
Explain any two advantages and any two limitations of Advertising.
Answer:
Advertising is the most commonly used tool of promotion. It is an impersonal form of communication, which is paid for by sponsors to promote some goods or service.

Merits of Advertising:
1. Mass Reach:
Advertising is a medium through which a large number of people can be reached over vast geographical area.

2. Enhancing customer satisfaction and confidence:
Advertising creates confidence amongst prospective buyers as they feel more comfortable and assured about the product quality and hence feel more satisfied.

Limitations of advertising:
1. Less Forceful:
Advertising is an impersonal form of communication. It is less forceful than personal selling as there is no compulsion on the prospects to pay attention to the message.

2. Lack of feedback:
The evaluation of the effectiveness of the advertising message is very difficult as there is no immediate feedback mechanism of the message that is delivered.

KSEEB Solutions

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

1. 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.

2. Quality Conscious:
A consumer must be cautious in respect of quality of the product like AGMARK, BIS, HALLMARK, etc.

3. 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.

4. 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.

5. 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 × 8 = 32)

Question 35.
Explain the Characteristics of Management.
Answer:
Features of Management:

a. Management is a goal oriented process:
Every organisation has a set of basic goals to achieve. Management unites the efforts of different individuals in the organisation towards achieving these goals:

b. Management is all pervasive:
Management activities are universally applicable to all organisations, social, economic and political. Hence, management is all pervasive and a universal phenomenon.

c. Management is multidimensional:
Management is a complex activity and involves three dimensions namely.

  1. Management of work
  2. Management of people (and)
  3. Management of operations

d. Management is a continuous process:
Management consists of a series of functions like planning, organising, staffing and controlling which are continuous and composite in nature. These functions are simultaneously performed by all managers all the time. Hence, management is considered a continuous process.

e. Management is a group activity:
An organisation is a collection of number of individuals with different needs. Every member of the group has different purpose to join the organisation. But, as members of the organisation, they work towards fulfilling the common organisation goal. This requires team work and coordination. Hence, management is a group activity.

f. Management is a dynamic function:
Every organisation works in an environment which keeps on changing. The external environment which consists of various social, economic and political factors keep changing. In order to be successful, an organisation must change itself and its goals according to the needs of the environment. Hence, management is a dynamic environment.

g. Management is an intangible force:
Management cannot be seen but its presence can be felt in the operations of the organisation. The effect of management is noticeable in an organisation where targets are met according to plans, when employees are happy and satisfied. So management is an unseen force but reflects in the collective efforts.

KSEEB Solutions

Question 36.
What is Organizing? Explain its importance.
Answer:
Organising is the process of identifying and grouping the work to be performed, defining and delegating authority and responsibility and establishing relationships for the purpose of enabling people to work most effectively together in accomplishing objectives.

The following points highlight the importance of organizing:

a. Benefits of specialization:
Organizing leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhances productivity. Right man is placed for the right job. Repetitive performance of a specific job on regular basis helps worker to gain experience and leads to specialization.

b. Clarity in working relationships:
The establishment of working relationships and clarifies lines of communication and specifies who is to report to whom. This further helps in fixation of responsibility and also specifies the dimensions of authority which an individual can exercise.

c. Optimum utilization of resources:
Organising leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoiding duplication of work prevents confusion and minimizing the wastage of resources.

d. Adaptation to change:
The process of organizing allows a business enterprise to accommodate changes in the business environment. It allows the organization structure to be suitably modified. It provides stability to the organization.

e. Effective administration:
Organising provides clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in work relationship enables proper execution of work. Thus, it provides effective administration in the enterprise.

f. Development of personnel:
organizing stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates. This reduction in the work load allows the manager to develop new methods and ways of performing tasks for the growth of an organization. It also develops ability among the subordinates to deal effectively with the challenges.

g. Expansion and growth:
Organising helps in the growth and diversification of an enterprise by enabling it to deviate from existing norms and taking up new challenges.

Conclusion:
Thus, organizing is a process by which the manager brings order out of confusion, removes conflict among people over work or responsibility sharing and creates an environment suitable for team work.

Question 37.
Explain the four methods of ON-the -job and any four methods of off-the -job Training.
Answer:
Training:
Training is the process of teaching the new or present employees, the basic skills they need to effectively perform their job.

Importance of training:

  1. Improves employee’s ability and skills.
  2. Leads to high morale among the employees.
  3. The chances of accidents are very less.
  4. Become more eligible for promotion.
  5. Maintain industrial peace in the organization.

Methods of Training
2nd PUC Business Studies Model Question Paper 1 with Answers Sec D img 2

On the job-training
It is a method, where workers learn by doing the work. The following are the important methods of on the job training:

  1. Apprenticeship training
  2. Coaching
  3. Internship training
  4. Job-rotation

Off the job training

  1. Classroom lecture
  2. Case-study
  3. Vestibule training
  4. Computer modeling

On the job means learning while doing. The following are the popular on the job training methods:
1. Apprenticeship Programmes:
Apprenticeship programmes put the trainee under the guidance of a master worker. These are designed to acquire a higher level of skill. People seeking to enter skilled jobs like plumbers, electricians, etc., are required to undergo apprenticeship training.

2. Coaching:
In this method, the superior guides and instructs the trainee as a coach. The coach or counselor sets mutually agreed upon goals, suggests how to achieve these goals periodically reviews the trainees progress and suggests changes required in behavior and performance. The trainee works directly with a senior manager and the manager takes full responsibility for the trainee’s coaching.

3. Internship training:
It is a joint programme of training in which educational institutions and business firms cooperate. Selected candidates carry on regular studies for the prescribed period. They also work in some factory or office to acquire practical knowledge and skills.

4. Job Rotation:
This kind of training involves shifting the trainee from one department to another or from one job to another. This enables the trainee to gain a broader understanding of all parts of the business and how the organization as a whole functions. Job rotation allows trainees to interact with other employees.

When employees are trained by this method, the organization finds it easy at the time of promotions, replacements or transfers.

Off the job training means learning before doing. The popular off the job methods of training include:
1. Class room lecture/Conferences:
The lecture or conference approach is used to convey specific information effectively. The use of audio-visuals or demonstrations can often make a formal classroom presentation more interesting.

2. Case Study:
Cases represent attempts to describe, as accurately as possible the real problems faced by the managers. They are generally taken from actual experiences of the organization and its managers.

Trainees study the cases to determine problems, analyse causes, develop alternative solutions, select what they believe to be the best solution and implement it.

3. Computer Modeling:
It stimulates the work environment by programming a computer to initiate some of the realities of the job. It also allows learning to take place without the risk or high costs that would be incurred if a mistake occurs in real life situation.

4. Vestibule Training:
Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a class room and employees use the same materials, tools and equipment. This is usually done when employees are required to handle sophisticated machinery and equipment.

Conclusion:
In order to perform well in an organization, an employee must have the theoretical and practical knowledge of the work. Training provides the practical knowledge that is required of an employee. Thus training is necessary to make the workers alert and active.

KSEEB Solutions

Question 38.
Suggest suitable measures to improve communication effectiveness.
Answer:
Perfect and complete communication does not take place many 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:

  1. Distance
  2. Noise
  3. 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:

  1. Language
  2. Jargons.

3. Organisational barriers:
These arise from the organizational goals, regulations, structure, and culture. Organisational barriers include:

  1. Poor planning
  2. Structure complexities
  3. Status differences
  4. Organisational distance
  5. Information overload
  6. 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. If 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:
The 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.

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Question 39.
Explain the steps involved in the Screen based Trading and Settlement Procedure of Securities.
Answer:
The procedure for purchase and sale of securities on a stock exchange involves the following steps:

a. Selection of a broker:
The first step is to select a broker who will buy or sell securities on behalf of the investor as trading of securities can be done only through a broker registered under SEBI.

b. Opening Demat Account:
The investor has to open a demat account or beneficial owner account with a depository participant for holding and transferring securities in the demat form. He will also have to open a bank account for cash transactions in the securities market.

c. Placing the Order:
The investor then places an order with the broker to buy or sell securities. Clear instructions have to be given to the broker on the number of shares, price etc. An confirmation slip is issued to the investor by the broker on placing the order.

d. Executing the Order:
According to the instructions of the investor, the broker will go on¬line and buys or sells the securities. Then, he issues a contract note and a copy of it is sent to the investor. A unique order code number is assigned to each transaction by the stock exchange is printed on the contract note.

e. Settlement:
Now, the investor has to deliver the shares sold or pay cash for the shares bought. This should be done immediately after receiving the contract note or before the day when the broker shall make payment or delivery of shares to the exchange. This is called the pay-in-day.

Question 40.
Explain any eight functions of Marketing.
Answer:
Marketing is concerned with exchange of goods and services from producers to consumers in such a way that maximises the satisfaction of customers’ needs. The various functions of marketing include:

1. Gathering and Analysing marketing information:
One of the important functions of a marker is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the product and services.

2. Marketing planning:
Another important area of work of a marketers is to develop appropriate marketing plans so that the marketing.objectives of the organisation can be achieved A complete marketing plan covering aspects like plan for increasing production, promotion of the products etc, and action programmes to achieve these objectives are to be developed.

3. Product Designing and Development:
The design of the product contributes to making the product attractive to the target customers: A good design can improve performance of a product and also give it a competitive advantage in the market.

4. Standardisation and Grading:
Standardisation refers to producing goods of Predetermined specifications, which helps in achieving uniformity and consistency in the output. Standardisation ensures the buyers that goods confirm to the pre-determined standards of quality, price, and packaging.

Grading is the process of classification of products into different groups, on the basis of some of the important characteristics such as quality, size, etc., Grading ensures that goods belong to a particular quality and helps in realising higher prices for high quality output.

5. Packaging and Labeling:
Packaging refers to designing and developing the package for the products. Labeling refers to designing and developing the label to be put on the package. Packaging and labeling have become so important in marketing that these are considered as the pillars of marketing. Packaging protects the products and also acts as an effective promotion tool.

6. Branding:
brand name helps in creating product differentiation. It provides basis for distinguishing the product of a firm with that of the competitor. Branding also helps in building customer’s loyalty and promotes sales of a product.

7. Customer support services:
These include after sales services, handing customer complaints, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers. Which is the key to marketing success in modern days.

8. Pricing of product:
Price of product refers to the amount of money customers have to pay to obtain a product the marketers have to properly analyse the factors determining the price of a product and then take several other decision such as setting the pricing objectives, determining the pricing strategies, determining the price and changing the prices etc.

9. Promotion:
It involves informing the customers about the firms product, its features etc, and persuading them to buy these products. The four important methods of promotion include advertising, personal selling, publicity and sales promotion. Deciding the budget for promotion, promotional tools to be used etc, are important decisions to be taken by a marketer in this area.

10. Physical Distribution:
The two major areas under this function include

  1. Decision regarding channels of distribution.
  2. Physical movement of the product from the place of its production to the ultimate consumer’s place.

Managing Inventory, storage, and warehousing, transportation, etc, are key areas under this physical distribution function.

Conclusion:
The modern functions of marketing emphasises more on customer satisfaction. Customer satisfaction itself leads to survival and growth of an organisations. From the view point of management function, the above activities are referred to as the functions of marketing.

SECTION – E

V. Answer any two of the following questions.
Each question carrier five marks: (2 × 5 = 10)

Question 41.
Assuming that you are manager of an organization, draw the neat diagram of different Levels of Management to specify that authority – responsibility relationships create different levels of management.
Answer:
2nd PUC Business Studies Model Question Paper 1 with Answers Sec E img 3

KSEEB Solutions

Question 42.
Draw the neat diagram of Maslow’s Need Hierarchy.
Answer:
2nd PUC Business Studies Model Question Paper 1 with Answers Sec E img 4

Question 43.
As an exploited consumer, write a complaint letter to your nearest District Consumer Forum claiming reasonable redressal.
Answer:
Bangalore
1st March, 2019

From
xxxx
No. 74, I cross,
M.L. Layout Bangalore – 560 086

To
The Registrar
Karnataka State Consumer Dispute Redressal Commission
Cunningham Road
Bangalore
Dear Sir,

Sub: Complaint regarding service of two wheeler-Regarding
On 1st February, 2019, I had bought a kinetic Honda Two wheeler [Model No.] I made this purchase at Mahalakshmi lay out Raveesh showroom on 1st February, 2019 by paying an amount of Rupees
[Bill Enclosed]
Unfortunately, the two-wheeler is not working properly and the Pick-up is not proper. The brake – systems are also not up to the mark.

To resolve the problem, I approached the show – room authorities who in turn guided me to the authorized service centre. But, the service centre authorities are not ready to do the needful free – of – cost though the warranty period is still on for the vehicle

I look forward to your reply and a resolution to my problem. I am enclosing herewith the receipts, warranty card details, model details of the vehicle bill and other details of the vehicle] Please lodge a complaint against the seller and kindly ensure that timely action is taken in this regard.

Thanking you
Yours faithfully
xxxx

Enclosures:
1. Bill
2. Warranty card
3. Model details

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