Comprehensive CBSE Question Bank in Business Studies XII (Term-II)

CBSE II Question Bank in Business Studies CLASS 12 Features Short Answer Type Questions Long Answer Type Questions Strictly Based on the Latest CBSE Term-wise Syllabus Case Study Based MCQs Chapter Summary Very Short Answer Type Questions



Comprehensive CBSE Question Bank in Business Studies Term–II (For Class XII)



Comprehensive CBSE Question Bank in Business Studies Principles and Functions of Management and Business Finance and Marketing Term–II (FOR CLASS XII) (According to the Latest CBSE Examination Pattern) By S. GUPTA   LAXMI PUBLICATIONS (P) LTD (An ISO 9001:2015 Company) BENGALURU • CHENNAI • GUWAHATI • HYDERABAD • JALANDHAR KOCHI • KOLKATA • LUCKNOW • MUMBAI • RANCHI NEW DELHI

Comprehensive CBSE QUESTION BANK IN BUSINESS STUDIES–XII (TERM-II) Copyright © by Laxmi Publications Pvt., Ltd. All rights reserved including those of translation into other languages. In accordance with the Copyright (Amendment) Act, 2012, no part of this publication may be reproduced, stored in a retrieval system, translated into any other language or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise. Any such act or scanning, uploading, and or electronic sharing of any part of this book without the permission of the publisher constitutes unlawful piracy and theft of the copyright holder’s intellectual property. If you would like to use material from the book (other than for review purposes), prior written permission must be obtained from the publishers. Printed and bound in India Typeset at : Goswami Associates, Delhi. New Edition ISBN : 978-93-93738-19-6 Limits of Liability/Disclaimer of Warranty: The publisher and the author make no representation or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties. The advice, strategies, and activities contained herein may not be suitable for every situation. In performing activities adult supervision must be sought. Likewise, common sense and care are essential to the conduct of any and all activities, whether described in this book or otherwise. Neither the publisher nor the author shall be liable or assumes any responsibility for any injuries or damages arising here from. The fact that an organization or Website if referred to in this work as a citation and/or a potential source of further information does not mean that the author or the publisher endorses the information the organization or Website may provide or recommendations it may make. Further, readers must be aware that the Internet Websites listed in this work may have changed or disappeared between when this work was written and when it is read. All trademarks, logos or any other mark such as Vibgyor, USP, Amanda, Golden Bells, Firewall Media, Mercury, Trinity, Laxmi appearing in this work are trademarks and intellectual property owned by or licensed to Laxmi Publications, its subsidiaries or affiliates. Notwithstanding this disclaimer, all other names and marks mentioned in this work are the trade names, trademarks or service marks of their respective owners. & Bengaluru 080-26 75 69 30 & Chennai 044-24 34 47 26 Branches & Guwahati 0361-254 36 69 & Hyderabad 040-27 55 53 83 & Jalandhar 0181-222 12 72 & Kochi 0484-405 13 03 & Kolkata 033-40 04 77 79 & Lucknow 0522-430 36 13 Published in India by & Ranchi 0651-224 24 64 Laxmi Publications (P) Ltd. C—00000/021/12 Printed at : Ajit Printing Press, Delhi. (An ISO 9001:2015 Company) 113, GOLDEN HOUSE, GURUDWARA ROAD, DARYAGANJ, NEW DELHI - 110002, INDIA Telephone : 91-11-4353 2500, 4353 2501 www.laxmipublications.com [email protected]

Contents 1. Staffing ............................................................................................ 1–18 2. Directing ........................................................................................ 19–37 3. Controlling .................................................................................... 38–51 4. Financial Management ................................................................. 52–65 5. Financial Markets ......................................................................... 66–85 6. Consumer Protection .................................................................... 86–98











Chapter 2: Directing SUMMARY OF THE CHAPTER  Direction Direction is the practical aspect of management, involving motivation, supervision, communication and effective leadership of human energies.  Features/Nature of Direction (1) Management function (2) Direction is pervasive function of management at all levels (3) Direction is a continuous process (4) Directing flow from top to bottom (5) Direction deals with the human elements in the business (6) Direction facilitates other managerial functions.  Importance of Direction (1) Direction initiates actions (2) Direction integrates employees efforts (3) Direction is the means of motivation (4) Direction facilitates changes (5) Direction provides stability (6) Direction enhances efficiency.  Principles of Directing (1) Principle of harmony of objectives (2) Principle of unity of command (3) Principle of appropriateness of direction technique (4) Principles of effective communication (5) Principle of informal relations (6) Principle of effective leadership (7) Principle of supervision (8) Principle of maximum individual contribution (9) Principles of follow through.  Elements of Direction (1) Supervision (2) Motivation (3) Leadership (4) Communication.  Supervision Supervision is effective guidance, direction and intelligent utilisation of the human energies of the enterprise.  Role and Importance of Supervision (1) Maintain friendly relation (2) Effective communication (3) Maintaining harmonious relations (4) Effective supervision of employees and their work (5) Maintaining discipline (6) Improves motivation (7) Feedback.  Functions of a Supervisor (1) Planning and Organising (2) Leadership and Guidance (3) Motivation (4) Linking Pin (5) Controlling (6) Grievance Handling (7) Introduction of New Techniques.  Motivation Motivation is the process of generating enthusiasm among subordinate to dedicate their best of worth towards achieving the desired objective of the business enterprise.  Types of Motivation (1) Positive Motivation (2) Negative Motivation (3) Extrinsic Motivation (4) Intrinsic Motivation (5) Financial Motivation and (6) Non-financial Motivation. 19























70 Business Studies—XII 11. Ramesh’s company has paid up capital of ` 50,000. he wants to list his company in National Stock Exchange. Can he do so? Ans. No. Because to get listed in NSE, the minimum paid up capital required is ‘ 3 crore. 12. Name the two components of capital market. Ans. Primary market and secondary market. 13. List any three major objectives of capital market. Ans. (i) Mobilize resources for investments (ii) Facilitate process of efficient price discovery. (iii) Facilitate buying and selling of securities. 14. List two buyers of commercial paper. Ans. Banks and insurance companies. 15. What is a commercial paper? Ans. It is a short-term unsecured promissory note, negotiable and transferable by endorsement and delivery with a fixed maturity period. 16. What do you mean by Certificate of Deposit (CD)? Ans. It is an unsecured, negotiable short-term instrument in bearer from, issued by commercial banks and development financial institutions. 17. Name two advisory committees set up by SEBI. Ans. (i) Primary market advisory committee. (ii) Secondary market advisory committee. 18. What is price rigging? Ans. It is the manipulation of prices of the securities by companies or their agents for their own profits. 19. What do you mean by financial market? Ans. It refers to the market which creates and exchanges financial assets. 20. Define stock exchange. Ans. The stock exchange is a market in which existing securities are bought and sold. 21. What do you mean by depository services? Ans. It refers to that service through which the transfer of ownership in shares takes place by means of book entry without the physical movement of shares. 22. Name the types of capital market. Ans. Primary market and capital market. 23. What do you mean by zero-coupon bond? Ans. ‘Zero-Coupon Bond’ is a debt security that doesn’t pay interest (a coupon) but is traded at a deep discount, rendering profit at maturity when the bond is redeemed for its full face value. 24. Why is secondary market considered as market for second hand securities? Ans. It is because in this market existing and second hand securities are sold among investors.