Chapter Wise Important Question | Class 12th Business Studies Check Here 

Hello friends, today in this article we will tell you important questions for CBSE Class 12 Business Studies Chapter Wise. Which will help you a lot, by reading these you can get good marks in board exams. Friends, all the questions given below are important for your exam, you must go through them.




Important Questions Class 12 Part A Principles and Functions of Management

PART - 1

A. Nature and Significance of Management

Ques 1 Meaning of Management

Ans. Management is the process of planning, organizing, staffing, directing and controlling enterprise resources efficiently and effectively to achieve the goals of the organization.

Ques 2 Definition of Management

Ans. According to Harold Koontz, 'Management is the art of getting things done through others and with formally assigned groups.'

Ques 3 Characteristics of management

Ans.

  • Goal-oriented process
  • Group activity
  • Intangible forces
  • All pervasive
  • Multi-dimensional
  • Continuous process
  • Dynamic function

Ques 4 Objectives of Management

Ans. (i) Organizational objectives: Survival, profit and growth

(ii) Social objectives: Using eco-friendly methods of production, creating employment opportunities for the underprivileged sections of the society, etc.

(iii) Personal objectives of employees: competitive pay, growth, recognition etc.

Ques 5 Importance of Management

Ans.

  • Helps in achieving group goals.
  • Creates a dynamic organization.
  • Increase efficiency.
  • Helps in achieving personal goals.
  • Helps in development of society.

B. Principles of Management

Authority and Responsibility: Authority and responsibility should have a logical relation with each other.

Discipline: Discipline means obedience, application, good superiors at all levels, clear and fair agreements and judicious application of punishment.

Unity of command: A subordinate should receive orders from only one superior at a given point of time.

Unity of Direction: A unit and a plan for a group of activities having the same purpose.

Subordination: Common interest pf individual interest. The interest of the organization must prevail over the individual interests of the individuals.

Remuneration of personnel: The employees should be remunerated fairly for their services.

Centralization and Decentralization: According to Fayol, in an organization, there is a need to balance subordinate participation through decentralization with managers' retention of ultimate authority through centralization.

Scalar chain: Top to bottom management at all levels should be connected by a distinct chain of authority, and this chain should be followed.

Order: People and materials must be at the right places at the right times for maximum efficiency.

Equity: A sense of fairness and justice for all the employees working in an organization.

Stability of tenure: There should be proper security of jobs, and personnel should get proper time off to show results.

Initiative: The managers of an undertaking should encourage their subordinates to take initiative in thinking of plans and executing them. Suggestion system should be established, where good suggestions are rewarded.

Esprit de corps: It means that there is strength in unity. The management should promote unity and harmony among the employees.

C. Business Environment

Ques 1. Define privatization in one sentence as the process of economic reforms.

Ans. Privatization means giving more role to private sector and reducing the role of public sector in the process of nation building.

Ques 2. Describe the process of economic reforms known as liberalization.

Ans. Liberalization refers to the abolition of licenses, quotas and various other restrictions and controls that were imposed on industries prior to 1991.

Ques 3. Explain any two effects of change in government policy on trade and industry.

Ans. The effects of government policy in India are:

Increased competition: As a result of changes in industrial licensing rules, the entry of foreign firms creates competition for Indian firms, especially in service industries such as telecom, airlines, banking, insurance etc. that were earlier kept in the public sector.

More Demanding Customers: Customers today have become more demanding as they are well informed. The fierce competition in the market gives wide choice to the customers in buying better quality of products and services.

PART - 2

D. Financial Management

Ques 1. Meaning of Financial Planning

Ans. It is the preparation of financial blueprint, which forecasts the overall fund requirement in terms of quantity as well as timing.

Ques 2. Importance of Financial Planning

Ans.
  • Helps in forecasting alternative business plans.
  • helps in avoiding trade shocks.
  • Helps in co-ordination of various business functions.
  • Helps connect the present with the future.
  • Helps in eliminating wasted efforts.
  • establishes a connection between investments and financial choices.
  • Facilitates financial control.
  • Helps in avoiding wastage of finance.
  • Helps in proper utilization of funds. ,
  • Helps in operational activities.

Ques 3. Objectives of Financial Planning

Ans.
  • To ensure availability of funds when required.
  • to prevent the raising of needless funds.

E.  Financial Markets

Ques 1. Meaning of stock exchange

Ans. According to the Securities Contracts (Regulation) Act, 1956, 'Stock Exchange means any body of persons, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the buying and selling of securities or trading in You have gone.

Ques 2. Functions of Stock Exchange

Ans.
  • provides for the existing securities' liquidity and marketability
  • Pricing of securities
  • Contributes to economic development
  • Spread of Equity cult
  • Provides scope for speculation
  • Security of Transaction

Ques 3. Trading Process in Stock Exchange

Ans.
  • Selection of a broker
  • Opening of Demat Account with the Depository
  • placing orders
  • Execution of order
  • settlement

Ques 4. Stock Market Terminology

(i) Bear A bear is a speculator who takes a pessimistic view of the stock market and expects prices to decline.

(ii) Bull A bull is a speculator who has an optimistic view of the stock market and expects prices to rise.

(iii) Stag A speculator, who subscribes to a new issue at the opening of trading, expecting an immediate rise in the price of the stock.

(iv) Lemedak This is another form of bear. When a bear is unable or feels that it is having difficulty meeting its commitment, it is said to struggle with a limp.

(v) Dematerialization of securities (Demat Account) Conversion of physical certificates into electronic form.

Ques 5. Sensex

Ans. It is the benchmark of the Bombay Stock Exchange (BSE), as BSE is a major stock exchange of the Indian stock market, Sensex is an important indicator of the Indian stock market.




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