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BSEB Bihar Board 12th Business Studies Important Questions Long Answer Type Part 1 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Important Questions Long Answer Type Part 1

Question 1.
Explain the advantages of training of employees and enterprise.
Answer:
Advantages of training of employees:

• Job satisfaction: An employee can find foil satisfaction when he is skillful in his work. So skillness is very necessary for training.
• Minimum accidents: A skillful worker knows that how does operate machinery. This quality can be get by training.
• Increase in capacity and efficiency: Training docs improved capacity and efficiency of workers. A trained workers can be given more output than untrained workers.
• Better chances of promotion: Trained workers get promotion very soon. So training is very necessary for workers (employees).

Advantages of Training of Enterprise:

• Improvement in quality and quantity of output: The quality and quantity of goods can be improved by training. Because it does reduce cost of production,
• No requirement of supervision: Trained employees become skillful in their work. So their is no specific need of supervision.
• Full utilisation of resources: Natural resources are very limited. Trained employees can be full and good use of these for business enterprise. So training of employees is necessary for business concern.

Other advantages:

• Increase in national income
• Increase in per capita income
• Increase in standard of living of society
• Development of society
• Increase in moral.

Question 2.
Every manager has to take three major decisions while performing the finance function. Explain.
Answer:
(i) 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 cam highest possible return for the investors. Investment decision can be long term, also known as capital budgeting where the funds arc 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.

(ii) Dividend decision: It relates to decision regarding distribution of dividend. The decision taken is as to how much dividend is to be retained in business and how much should be distributed to shareholders, after taking into account various factors affecting it.

(iii) Financing decision: It refers to the determination as to how the total funds required by the business will be obtained from various long term sources. Tong term financial sources chiefly include equity share capital, preference share capital, retained earning, debenture, long term loan, etc.

Question 3.
How functional structure differs from a divisional structure?
Answer:
Difference between functional structure and divisional structure:

Question 4.
State objectives of contolling.
Answer:
The following are the important objects of controlling:

• To direct the activities according to planning.
• To find out deviations and try to remove these deviations.
• Proper and symmetrical use of factors of production.
• To motivate employees.
• To establish co-ordination between objects, means and efforts of the organisation.
• To make decentralisation and delegation of authority successful.
• To get the knowledge regarding quality, cost and time of work performed.
• The main object of controlling activity is not to create hurdle but to maintain flow in activities of the business.
• To stop wastage and to minimise the cost.
• To know the progress of the activities on the basis of standards fixed.

Question 5.
Co-ordination is the essence of management. Do you agree with this? Give reasons.
Answer:
Co-ordination is the Essence of Management: Co-ordination is regarded as the very essence of management. A manager seeks to achieve co-ordination through the basic functions of management i.e. planning, organising, staffing, directing and controlling. As a matter of fact, performance of any of these functions is an exercise in co-ordination.

In the words of GR. Terry, “Co-ordination deals with the task of blending efforts in order to ensure successful attainment of an objective. It is accomplished by means of planning, organising, actuation and controlling.”

(i) The planning function facilitates co-ordination by properly integrating various plans through discussion and exchange of ideas. The plans of different departments are co-ordinated for preparing the piaster plan. There should also be co-ordination between the objectives and available resources.

(ii)While organising, there should be a co-ordination between the authority and responsibility of every individual. Same work should not be assigned twice.

(iii) While staffing, co-ordination is achieved by balancing the skills and abilities of the employees with the jobs assigned to them.

(iv) While directing the function of co-ordination is achieved. The very essence of giving orders, instructions, guidance to sub-ordinates means co-ordination of their activities in such a manner that enterprise objectives are achieved efficiently.

(v) While undertaking controlling, a manager assesses the performance of sub-ordinates against the prescribed standards. Remedial measures are taken if performance is less than the standards.

Question 6.
Describe the nature of principles of management.
Or, State the features of principles of management.
Answer:
Following are features which indicate the nature of principles of management.
(i) Universal: The principles of management are universally applicable to alt types of organizations, business, social, political, religious, etc. They are applicable to any kind of organisation whenever there is a need of co-ordinated effort of human being.

(ii) Flexible: The principles of management are flexible guides and provide ample scope for taking into consideration the requirement of a given situation, the principles of management are applied in the light of changing conditions and special situations.

(iii) Evolutionary: The principles of management are developed on the basis of organized quantitative fact or from the accumulated experiences.

(iv) General guidelines: Principles of management arc general guidelines to action and do not provide readymade solutions to managerial problems. Management principles are subject to many limitations since human behaviour is unpredictable and complex.

(v) Mainly behavioural Management principles aim at infiuencing human behaviour in an organization so that people give their best to the organization.

(vi) Contingent: The application of principles of management is dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed according to circumstances.

Question 7.
Management is considered to be both an Art and Science, Explain.
Answer:
Management as an art and Science: It is a matter of discussion whether management should be regarded as a science or an art or both. For this purpose, we have two different views, as given below:

Management as a Social Science: Science is a systematically organised body of knowledge based on proper findings and exact principles and is capable of verification. The generalisations are made on the basis of empirical studies and so they may be applicable studies and so they may be applicable in future also.

In order to be recognised as science, a subject should have the following characteristics:

• A systematised body of knowledge including concepts, principles and theories.
• It should establish cause and effect relationship.
• Methods of enquiry should be scientific.
• Principles should be variable and universally applicable.

Like other social science, management is also related with human beings and it is not an exact science like physics or chemistry. Though inexact, management, like body of knowledge; its practice depends on cause and effect relations; and not on the personal likes and dislikes of managers, Principles of management, as in the case of science, are also derived from observations and experiments.

Management as an art: Art is concerned with the application of knowledge and skills. Desired results are achieved through the application of skill, thus an art has the following characteristics:

• It signifies practical knowledge.
• It signifies personal skills in a particular field of human activity.
• It helps in achieving desired/predetermined results.
• It is creative in nature.

Management is also an art since it involves application of knowledge and personal skills to achieve desired results. Every manager has to apply certain knowledge and skills while dealing with the people to achieve the desired results. As an art, management cells for a group of abilities, skills and judgement and a continuous practive of management concepts and principles.

From the above discussion, it is clear that management is both a science and an art.

Question 8.
What is planning? Explain in features.
Or, “Plainning is looking acead” Explain this statement and state any five features of planning.
Or, What are the features of planning?
Answer:
Meaning of planning: Planning is the process of thinking before doing. It involves determination of goals as well as the activities required to be undertaken to achieve the goals. Planning may be defined as deciding in advance what is to be done in future, In the planning process, managers anticipate the future and accordingly decide what activities must be undertaken. More specifically, planning consists of deciding in advance what to do, when and by whom.

Features of planning: The planning function of management has certain special features which throw light on its nature and scope. The features of planning are enumerated as follows:
1. Planning is goals oriented/Provides direction: Organisations are set up with a general purpose in view. Specific goals are set our in the plans along with the activities to be undertaken to achieve the goals, thus, planning is purposeful. Planning has no meaning unless it contributes to the achievement of predetermined organisational goals.

2. Primacy of planning: Planning lays down the base for other functions of management, all other managerial functions are performed within the framework, of plans drawn. Thus, planning proceeds other functions. This is also referred to as the primacy of planning. The various functions of management are interrelated and equally important. However, planning provides the basis for all other functions.

3. Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department. But the scope of planning differs at different levels and among different departments, for example, the top management undertakes planning for the organisation as a whole. Middle management does the departmental planning.

4. Planning is flexible/works on a changing enviroment: Plans are drawn on the basis of forecasts. Since the future is uncertain, planning must cope with changes in future conditions. Activities planned with certain assumptions about the future may not come true. Under the circumstances the original plan of action must be revised in the light of changing conditions. for example, suppose a firm has planned to sell 2,000 TV sets during 2007 in a particular area and that area is affected by flood.

The company will have to change its plan and prepare itself to achieve the sales target elsewhere. In practice, new situations emerge quite often and quite unexpectedly. to meet these, managers must make changes in the existing plans.

5. Planning is a continuous process: Plans arc prepared for a specific period of time, may be for a month, a quarter, or a year. At the end of that period, there is a need for a new plan to be drawn on the basis of new requirements and future conditions. Hence, planning is a never ending activity. It is a continuous process, continuity of planning is related with planning cycle. It means that a plan is framed, it is implemented and is followed by another plan and so on.

6. Planning is futuristic: Planning essentially involves looking ahead and preparing for the future. The purpose of planning is to meet future events effectively to the best advantage of an organisation. It implies peeping into the future, analysing it and predicting into the future, analysing it and predicting it. Planning is, therefore, regarded as a forward looking function based on forecasting. Through forecasting future events, conditions are anticipated and plans are drawn accordingly. Thus, For example, sales forecasting is the basis on which a business firm prepares its annual plan for production and sales.

7. Planning involves choice/decision-making: Planning essentially involves choice from among various alternatives and activities. If there is one possible goa of only one possible course of action, there is not need for planning because there is no choice. The need for planning arises only when alternatives are available. In actual practice, planning presupposes the existence of alternatives. Planning thus involves thorough examination and evaluation for each alternative an choosing the most appropriate one.

8. Planning is a mental exercise: Planning requires application, of the mind involving foresight, intelligent imagination and sound judgement. It is basically an intellectual activity of thinking rather than doing because planning determines the action to be taken: However, thinking for planning requires logical and systematic thinking rather than guessing or wishful thinking. In other words, thinking for planning must be orderly and based on the analysis of facts and forecasts.

Question 9.
Briefly explain the techniques of Taylor’s scientific management.
Or, Explain any five techniques of ‘Scientific Management’.
Answer:
Following are the techniques of scientific management:
(i) Time Study: It is work measurement technique which is designed to establish the time for a qualified worker to cany out a specified task under specified conditions at a defined rate working. The object of time study is to determine the number of workers to be employed and to frame suitable incentive schemes.

(ii) Motion Study: It aims to Study the workers and machines so as identify and eliminate unnecessary and wasteful motions.

(iii) Standardiszaion: Standardization is a means of achieving economy of production by ensuring that the line of product is restricted to predetermined weight quality, etc, Standards are established as regards quality of manufactured goods and standards of performance are established for the workers ate all levels.

(iv) Functional Forcmanship: Functional foremanship is based on specialization of functions, under functional foremanship, two functions planning and doing are separated. The function of planning should be left to the production planing department comprising expert in different fields. At the factory, workers should only concentrate on carrying out the plans handed out to them.

(v) Differential Piece rate plan : Under this system, efficient workers are paid at a higher rate than the inefficient workers and workers are paid on the basis of number of pieces produced.

Question 10.
Explain any five limitations of planning.
Or, ‘In spite of best effort of managers sometimes planning fails due to its limitations.’ Explain any five such limitations of planning.
Answer:
Following are the limitations of planing:
(i) Planning is an expensive process: Planning depends on an effective system of feedback, transmitting necessary data collection and analysis of data and evaluation of various courses of action. It results in heavy expenditure.

(ii) Planning is a time-consuming process: Planningrequired collection of information, its analysis and interpretation. These activities take considerable time and planning is not practicable when quick decisions are to be made.

(iii) Planning results in rigidity: Planning implies prior determination of policies and procedures while business environments dynamic. This prevents managers from taking initatives and from doing innovative thinking. Blind conformity with pre-determined rules and procedures promotes red-tapism and delay in the performance of work.

(iv) Effectiveness of planning is limited due to external factors: External contingencies are beyond the control of planners and are very difficult to be forecasted. Wat, Government control, natural havocs like flood, political climate, bahaviour of trade unions, technological changes, etc, make the implementation.

(v) Planning creates a false sense of security: Planning may create a false sense in the organization that everything is well taken care of by the plans. A manager may feel that once the plans are formulated, action will automatically be efficient. As a result, he fails to take timely decisions.

Question 11.
Explain why planning is necessary for effective management? Give reasons.
Or, Explain any five points of importance of planning for a large business enterprise.
Or, Why planning is needed?
Answer:
Planning is important for better management of business planning. It determines the objective, decides the course of action, removes uncertainty, the results in economics in operation and makes control possible. Its importance is analysed as below:

(i) Takes care of future uncertainties: The future is full of uncertainties. Planing takes care of all future uncertainties and minimizes business risks since it makes an effective use of forecasting techniques.

(ii) Focuses attention on objective: All planning is directed towards achieving the objectives of an enterprise. Planning makes these objectives more concrete and tangible by determining the programmes, policies and procedures which provide guidelines to the employees to achieve these objectives.

(iii) Facilitates decision-making: Decision-making is the core of planning. It is the process of developing and selecting a course of action from among the various alternatives available. Planning provides a framework for decision making by specifying the organizational objectives and planning premises.

(iv) Facilitates control: Controlling is the process that measures current performance against desired standards to ensure that the objectives are attained according to plans. Control is always exercised in the light of planning which provides performance standards in quantitative terms.

(v) Promotes efficiency: Proper planning ensures better utilization of organizational resources, Planning involves the selection of the best or most profitable course of action. This reduces idle time for worker, machines and so on.

(vi) Helps in co-ordination: Planning is necessary for the organization as a whole. Derivative plans are prepared for each department within the limits of the master plan.Thus, planing leads to co-ordination of activities of all the departments in order to achieve the basic objective of the organization.

Question 12.
What do you mean by marketing mix? Discuss its elements.
Answer:
Marketing mix: Marketing mix refers to the tools which the marketeer mixes in order to interact with a particular market.

Marketing mix is the combination of different marketing decision variable being used by a firm to market its goods and services. The environmental influences are uncontrollable elements whereas the ingredients of marketing mix are controllable elements. The blend or combination of these ingredients constitutes the marketing mix and this marketing mix is expected to be in tune with the environmental influences.

Following are the main definitions of marketing mix given by some eminent experts:

1. “Marketing mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.” -Philip Kotler
2. “The policies adopted by manufactures to attain success in the market constitute the Marketing mix.” -R.S. Davar
3. “The marketing mix is composed of a larger battery of advices which might be employed to include customers to buy a particular product. -Keeley and Lazar
4. “The firm’s task is to find the best setting for its marketing decision variables. The setting constitute its Marketing-mix.” -Philip Kotler

The marketing-mix can be regarded as the core of the company’s marketing system. Kotler has defined it as “the set of controllable variable that the firm can use the influence the buyer’s responses.”

The concept of marketing mix, according to Burden, consists of (i) a list of the important elements or ingredients that make up the marketing programmes; and (ii) a list of the forces that bear on the marketing operations of a firm and to which the marketing manager must adjust in his search for a mix or programme that can be successful.

Every business enterprise has to determine its marketing mix for the satisfaction of needs of the customers. Marketing mix represents a blending of decision in four areas-product, pricing, promotion and physical distribution. These elements are inter-related because decisions in one area usually affect actions in the others.

The basic purpose of determining the marketing mix is to satisfy the needs and wants of the customers in the most effective and economical manner. As the needs of the customers and environmental factors change, the marketing mix also changes. Thus, marketing mix is a dynamic concept. It concentrates on how to satisfy the needs of the customers. If the needs of the customers change, the marketing mix will also be changed. The customer is the point around which all organisational activities revolve.

Elements of Marketing mix: E. J. McCarthy given four elements of marketing mix. These include: 1. Product, 2. Price, 3. Promotion, and 4. Place or Physical Distribution. These elements are popularly called the “Four Ps” of marketing-mix. In each of the elements, decisions are taken as regards certain sub-elements. For instance, in product area, decisions are taken as regards product range and quality, branding, packaging and labelling, after sales services, etc. These elements constitute the product mix of the firm. In the same manner, each firm has to determine its price mix, promotion mix and place mix. As a matter of fact, marketing mix is a mix of product mix. price mix, promotion and place mix.

The element of marketing mix arc briefly discussed below:
1. Product: It involves planning, developing and producing the right type of products and services to be offered by the firm to the customers. It deals with the product range, durability, branding, packaging, colour and other features.

2. Price: The marketing manager should determine the price in such a way that the firm is able to sell its products successfully. The price of the product must cover its cost of production and distribution and also a reasonable margin of profit. Pricing also involves establishing policies regarding credit and discount. The variables that vitally influence princing are demand for the product in question, its cost, actual and potential competition and Government regulation, etc.

3. Promotion: It deals with informing the customers about the firm’s product and persuading them to purchase the same. It involves personal selling, advertising, publicity and sales promotion. Taken together, these elements constitute the promotion-mix of the firm. A brief description of the elements of promotion is given below:

(i) Personal selling of salesmanship: n includes activities both inside and outside the firm conducted on a person-to-person basis with the buyers. It involves oral presentation of the product to the prospective customers.

(ii) Advertising: It appeals to customers through impersonal media like radio, television, newspapers and magazines. Compared, with personal selling which involves personal contact with a customer, advertising is used to communicate simultaneously to a large number of people.

(iii) Publicity: Publicity may be defined as any form of non-paid significant news or editorial comment about ideas, products or institutions in the mass media like newspapers, radio and T. V. It appears primarily in the form of news stories and differs from advertising in that the latter is a paid medium of promotion.

(iv) Sales promotion: It Includes all promotional activities other than personal selling, advertising and publicity that are intended to increase sale of a product. The examples are distribution of samples, discount coupons, freebies, contests, window display, etc.

4. Place or physical distribution: Place in the context of marketing mix refers to a set of decisions that need to be taken in order to make the product available to the customers for purchase and consumption. It involves physical handling and movement of goods from place of production to the place of consumption.

Question 13.
What actions can be taken to make planning more effective?
Or, State any six qualities of a good plan.
Or, Explain the characteristics of a sound plan.
Answer:
Following are the six qualities of a good plan:

• Clear-cut goals and objectives: There should be clear-cut goals and objectives. They must be capable of being converted into specific targets and assignments.
• Resonable: A plan should have reasonable but challenging and achievable targets.
• Sound communication: For implementation of plans, it is necessary to have sound communication system so that plans are communicated clearly and in time.
• Flexible: A plan should be flexible. A plan should not be so inflexible that it cannot be changed when need arises. A plan should be flexible enough to keep the organization in tune with the times.
• Periodic review: A plan should be reviewed periodically. A Plan should be scrutinized at regular intervals to find out their relevance.
• Written: As far as possible, plan should be precise, clear and written. A written plan becomes more specific and clear and. leaves no room for misinterpretation.

Question 14.
What is the meaning of formal organization? State the features of formal organization.
Answer:
Formal organization signifies pre-determined relationships, designed by the top management of the company where superiors and subordinates are linked through duties and authorities and are bound by rules and regulations.

Features of formal Organization:
(a) Creation of management: These are conceived and created after deliberation at top management. These represent official blueprint of an organization.

(b) Division of labour and specialization: Dividing activities among different levels of managers create formal organigation. It tries to rationally distribute work amongst managers. By assigning job to different managers, benefits of specialization are ensured.

(c) Involve rules and procedures: Formal organization follows certain rules that every manager has to abide by. They also prescribe Procedures to perform duties assigned. Rules and procedures are predetermined. These do not change frequently.

(d) Clarifies roles: While delegating authority role of each manager and limits with which he has to work are clearly laid down. These specify the domain or area of authority of every manager.

Question 15.
Define the staffing process and the various steps involved in it.
Answer:
Staffing is the process involved in identifying, assessing, planning, evaluating and developing individuals at work. In other words, staffing may be defined as the managerial function of hiring and developing the required personnel to fill in various positions in the organization.

Steps involved in Staffing Procedure:

(i) Manpower planning: It tries, to assess the manpower requirements in advance keeping the production schedule, market fluctuations, demand forecasts, etc, in the background, It is a part of the overall corporate plan.
(ii) Job Analysis: Itis the careful study of each job to determine the following:

• Tasks and responsibilities involved in a job.
• Relation of one job to other.
• Conditions under which job performance is carried on;and
• Personal capabilities of jobholder must possess for its satisfactory performance.

(iii) Recruitment: It includes right candidates to fill the positions in the organization, structure: This makes it easier to recruit suitable candidates from outside:
(iv) Selection
(v) Placement and orientation
(vi) Training
(vii) Performance appraisal
(viii) Promotion and carrier planning
(ix) Compensation
(x) Separation

Question 16.
Explain the procedure for selection of employees.
Or, State the steps involved in the process of “Staffing”.
Answer:
Following are the steps involved in the selection of employees:
(i) Preliminary screening: The first step is to eliminate the unsuitable candidates based on the information supplied in the applications. The preliminary interview may also be held for this purpose.

(ii) Selection tests: Following tests are undertaken to measure the characteristics of the candidates required for the job:

• Intelligence tests
• Aptitude tests
• Trade tests
• Intrest tests
• Personality tests,

(iii) Interview: Selection interview consists of conversation between candidate and the employer. Its aim is to have an overview of the candidates ability for the job.

(iv) Physical examination: Successful candidates are required to undergo physical examination by medical practitioner. Its aim is to assess the health of candidates in accordance with the requirements of the jobs.

(v) Reference checks: References give detailed information about candidate’s capabilities. From reference, a lot of information is recieved about a candidate.

(vi) Selection decision: Now final decision has to be made from among the candidates who pass the tests, interviews and reference checks.

Question 17.
Briefly explain the different methods of training.
Or, Discuss, in brief, any three methods of training.
Answer:
Methods of Training: In different methods of imparting training to workers are as follows:
(i) Vestibule Training: In this method, workers are trained in a separate workshop away from the job place but the working conditions are some chat similar to that of the actual job place. This is generally used for training employees on sophisticated modem equipment and machinery involving high investment.

(ii) Job Rotation: Under this method, an individual is transfered from one job to another and from one department to other so that they get the knowledge of all types of job in the organization. This type, of training is suitable for newcomers to make them aware of various aspects of job.

(iii) Internship: This programmes is a combinatiuon of theory and practice. It involves practical knowledge of theoretical knowledge. Normally, students of professional courses are imparted such kind of training like in Chartered Accountancy.

(iv) Promotional Training: This type of training is imparted to on existing employees to prepare them for higher post in the organization.

(v) Refresher course: In order to acquaint old employees with latest development in the industry market and production and management techniques courses arc organized to refresh them to meet the challenge of the work.

BSEB Bihar Board 12th Business Studies Important Questions Long Answer Type Part 3 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Important Questions Long Answer Type Part 3

Question 1.
What are the functions of packaging?
Answer:
Functions of Packaging: Packaging is essential because it performs variety of functions such as:
1. Protection: it protects the product from damages which it may suffer in the process of storage and transportation. Appropriate packaging saves the product from sun, rains, moisture, breakage due to handling insects, spoilage, leakage, etc.

For example, airtight containers and packs are used for edible products like chips, biscuits, jams and cola etc. So as a protect them from atmospheric Contact. It enhances the self-life and maintains freshness of the products. Products like television or other appliances need to be protected from damage in transit. Therefore, these are packed in big board cartons with thermocol padding inside.

2. Identification: It enables the customers to identify one product from the other. It is because of identification function that firms develop packages with unique carton shape, colours, size and textures. For example, from the unique bottle of Coke one can easily identify it from others.

3. Convenience: It enhances convenience both for the middlemen and consumer. Middlemen require strong and mobility conveniences and hence demand that packaging should be convenient to store and transport. Customer requires usage convenience and hence demands that packaging should be convenient to use.

4. Promotion: It acts like a silent salesman. In current self-service retailing, an attractive package can attract the attention of customer and can describe product contents and induce him to make a purchase.

5. Innovation: An innovative package enables the marketeer to capture new customer segments. For example, by selling shampoo in small pouches, marketeer could reach the rural or lower income market.

Question 2.
What is the purpose/objective/importance of SEBI?
Answer:
The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. It aims to stimulate competition and encourage innovation. This environment includes rules and regulations, institutions and their inter-relationship, instruments, practices, infrastructures and policy framework.

Objectives of SEBI:
The overall objectives of SEBI are to protect the interest of investors and to promote the development of and regulate the securities market.
This may be elaborated as follows:

• To regulate stock exchange and the securities industry to promote their orderly functioning.
• To protect the rights and interest of investors, particularly individual investors and to guide and educate them.
• To prevent trading malpractices and achieve a balance between self regulation by the securities industry and its statutory regulation.
• To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers, etc. with a view making them competitive arid professional.

Question 3.
Discuss the functions of SEBI.
Answer:
Keeping in mind the emerging nature of the securities market in India SEBI was entrusted with the twin task of both regulation and development of the securities market.
Regulatory functions:

• Registration of brokers and sub-brokers and other player in the market.
• Registration of collective investment schemes and mutual funds.
• Regulation of stock brokers and portfolio exchanges and marchant bankers.
• Prohibition of fraudulent and unfair trade practices.
• Controlling insider trading and takeover bids and imposing penalties for such practices.
• Calling for information by undertaking inspection, conducting enquiries and audits of stock exchange and intermediaries.
• Levying fee or other charges for carrying out the purposes of the act.

Development functions:

• Investors’ educations
• Training of intermediaries.
• Promoting of fair practices and code of conducts of all stock exchanges.
• Conducting research and publishing information useful to alt market participants.

Question 4.
Define the major differences between selling and marketing.
Or, Define marketing? How is it different from selling? Discuss.
Answer:
Marketing is a total system of interacting business activities designed top on promote, and distribute want satisfying goods and service to present and potential customers.
Difference between Marketing and Selling:

1. Part of the process Vs wider term: Selling is only a Part of the process of marketing and is concerned with promoting and transferring, possession and ownership of goods from the seller to the buyer. Marketing as such wider term consisting of number of activities such as identification of the customer’s needs, fixing prices and persuading the potential buyers to buy the same.

2. Transfer of title Vs satisfying customer needs: The main focus of selling if not affecting transfer of title and possession of goods from sellers to consumers or users’. In contrast, marketing activities put greater thrust on achieving maximum satisfaction of the customer’s need and wants.

3. Profit through maximising sales Vs customer satisfaction: All selling activities are directed at maximising sales and, thereby, the profits of the firm. In other words the emphasis is on profit maximisation through maximisation of sales. Marketing, On the other hand, is concerned with customer satisfaction and thereby increasing profit in the long run.

4. Start and end of the activities: Selling activities start after the product has been developed while marketing activities start much before the product is produced and continue even after the product has been sold.

5. Difference in the Emphasis: In selling the emphasis is on bending the customer according to the product while in marketing, the attempt is to develop the product and other strategies as per the customer needs.

6. Difference in the Strategics: Selling involves efforts like promotion and persuasion while marketing uses integrated marketing efforts involving strategics in respect of product, promotion, pricing and physical distribution.

Question 5.
Discuss the various elements of marketing mix.
Answer:
Elements of Marketing mix: “The set of marketing used to achieve its objectives” or ingredients which accompany marketing in accomplishing its objectives is termed as marketing mix:
1. Product: The product is the most important element in the marketing mix. It is the starting point of all marketing activities. The other marketing efforts will prove useless unless the policies pertaining to a product intended for sale are decided and nature of the product is determined.

2. Price: The price of the product of a firm constitutes, an extremely important element in its marketing mix. Pricing is of a great importance to the producer, seller and the consumer. The term ‘price’ may be defined as the money consideration asked for or offered in exchange for a specified units of a goods or service.
The price mix includes the following:

• Determination of unit price of the market
• Pricing policies and strategies
• Discount rebates and level of margins
• Credit policy and
• Terms of delivery payment.

3. Promotion: Promotion means communication with customers to stimulate them to buy goods. Advertising and personal selling are important tools to promote the sale of products of a firm. The use of promotional activities like contests, displays, free distribution of samples, etc. is also significant to fight competition in the market. Usually a business firm uses more, than one type promotionl tools. Promotion mix is the name given to the combination of methods used in communicating with customers.

4. Physical Distribution or place: This element is concerned with making available the goods to the customers at their places. The goods may be sold through wholesalers and retailers. The firm may also distribute the products through its own retail shops.

Question 6.
Give the meaning and elements of promotion mix.
Answer:
The term ‘promotion mix’ is used to depict to the combination of different kinds of promotional tools used by a firm to advertise and sell its products. The main promotion tools or activities which make up promotion mix are personal selling, advertising, publicity and sales promotion. These are also known as elements of promotion mix and are briefly discussed below:

1. Personal selling: Personal selling is the process of assisting and presenting a prospective buyer to buy a commodity in a face-to-face situation. It involves direct and personal contact between the seller or his representative with the prospective buyer. Personal selling is the major promotional tool used to increase the sale by offering want satisfying products to the people.

2. Advertising: Advertising is an important form of promotion. It involves transmitting standard message to a large number of intended receivers. Advertising is any paid form of non-personal presentation and promotion of ideas, goods or services of an identified sponsor. The message which is disseminated is known as advertisement.

3. Publicity: Publicity is any non-paid message of an organisation of its products in the news media. It is non-personal stimulation of demand for a product. By planting commercially significant news about it in a published medium or obtaining favourable presentation of it upon radio, television or stage that is non-paid for by the sponsor.

4. Sales promotion: Sales promotion includes all those activities, other than three discussed above, that stimulate consumer purchasing and dealer effectiveness. The examples of sales promotion are: distribttun of samples, coupons, premium on sales, trading displays, shows and exhibitions, holding contest, increase public relations, etc.

Question 7.
Define advertising. Give its objectives.
Answer:
Advertising: “Advertise” means to “describe” and “praise” in public medium to promote sales. It is, thus viewed as one of the finest tools of promotion mix that are used for directly persuading the target customers and public, at large to buy company’s products. It is defined as “any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified sponsor.”

It is used by not only business organisations but also by nonbusiness, non-profit organisations such as professional associates, social and charitable institutions, etc. Advertising is “organisations of ideas and the subsequent communication of these ideas with the purpose to motivate consumers along the path to purchase.”

Objective of advertising:
The fundamental purpose of advertising is to sell something, a product, a service or an ideas. In addition to this general objective, advertising is also used by the modem business enterprises for certain specific objective which are discussed below:

• To introduce a new product by creating interest for it among the prospective customers.
• To support personal selling programme. Advertising may be used to open customers doors for salesman.
• Enter a new market to attract a new group of customers.
• To fight competition in the market and to increase the sales.
• To enhance the goodwill of the enterprise by promising better quality products and service.
• To improve dealer relations. Advertising support the dealers in selling the product. Dealers are attracted towards a product which is advertised effectively.
• To warn the public against initiation of an enterprise’s product.

Question 8.
Give the functions of Advertising.
Answer:
The main functions of advertising are as follows:
1. Promotion of Sales: It promotes the sale of goods and services by informing and persuading the people to buy them. A good advertising campaign helps in winning new customers both in the national as well as in the international market

2. Introduction of New Product: It helps in introduction of new products in the market. A business enterprise can introduce itself and its product to the public through advertising. A new enterprise can’t make an impact on the prospective customers without the help of advertising.

3. Creation of good Public Image: it builds up the reputation of the advertiser. Advertising enables a business firm to communicate its achievement and its effort to satisfy the customers’ need to the public. This increase the goodwill and reputation of the firm is necessary to fight competition in the market.

4. Mass production: Advertising facilitates large scale production. Advertising encourages production of goods on large scale because the business firm knows that it will be able to sell on large scale with the help of advertising. Mass production reduces the cost of production per unit by making possible the economical use of various factors of production.

5. Research: Advertising stimulates research and development activities. Advertisement has become a competitive marketing activity. Every firm tries to differentiate its product from the substitutes available in the market through advertising. This compels every business firm to do more and more research to find new products and their new uses. If a firm does not engage in research and development activities, it will be out of the market in the near future.

6. Education to People: Advertising educates the people about new products and their uses. Advertising message about the utility of a product enables the people to widen their knowledge. It is advertising which has helped people in adopting new way of life and giving up all habits.

7. Support to Press: Advertisement serves as an important sources of revenue to the publishers of newspapers and magazines. It enables to increase the circulation of their publications by selling them at lower rates. People are also benefited because they get publications at cheaper rates. Advertising is also a source of revenue for TV network.

Question 9.
“Is advertising a social waste.” Comment.
Answer:
Many people feel that money spent on advertising goes waste. They criticise advertising as unnecessary activities and wasteful expenditure because:

1. Multiplication of Needs: Advertising multiples the need of the people by forcing or persuading them to buy them. Since advertising is continuously repeated, it creates a desire in the mind of the public to buy the advertised product. Sometimes, the product advertised is only a slight improvement over the existing product. When the people purchase the new one, they have to discard the old product.

2. Burden of customer: The amount spent by an advertiser on his products advertisement is added to the distribution cost of the product. Thus, the customer have to pay more for the product advertised. But it should also be remembered that advertising facilitates the large scale production which leads to reduction in the cost of production per unit.

3. Shifting of Demand: Advertising does not always increase the demand of the product. When the demand is inelastic, advertising shift demand from one producer to another. That means a large amount of money spend on advertising by all the manufactures goes waste.

4. Creation of Monopoly: Advertising may lead to monopoly of a brand. It is argued that big manufacturers who can afford large amount of money on advertising can create brand monopoly and eliminate the small producers But this monopoly is temporary only because other brands offer strong competition after sometime.

5. Wasteful expenditure: Advertising involves huge wasteful expenditure because a large number of advertisement either escape the attention of the people or are ignored by them.

Question 10.
Define a sales promotion along with its features.
Answer:
Sales promotion is an important method of promotion which has been developed in recent years to supplement and co-ordinate personnel selling and advertising efforts. According to American marketing association, Sales promotion includes those marketing activities, other than personal selling, advertising and publicity, that stimulate consumer purchasing and dealer effectiveness, such as displays, shows and expositions, demonstrations and various non-recurrent selling efforts not in the ordinary routine, “Sales promotion includes free sample, premium on sale, sales and dealer incentives contesting, lair and exhibitions, public relations activities, etc.”

Features of Sales Promotion: The features of sales promotion are as follows:

• Communication: communicate useful information to consumers and gain their attention to buy company’s products.
• Incentives: They provide incentives in the form of concessions or inducements that are valued favorably by consumers and arollse desire in them to try those products.
• Invitation: it invites consumers to make immediate purchase. “Whereas advertising offers reasons to buy a product or service, sales, promotion covers reasons to buy now.”

Question 11.
Explain the rights and responsibilities of a consumer.
Answer:
The Consumer Protection Act, 1986 provides for six rights of consumers. The Consumer Protection councils set up under the act are intended to promote and protect the various rights of consumers.

1. Right to safety: The consumer has a right to be protected against goods and services which are manufactured with substandard products or do not conform to the safety norms might cause serious injury. Thus, consumers are educated that they should use electrical applicances which are ISI marked as this would be an assurance of such products meeting quality specifications.

2. Right to be informed: The consumer has a right to have complete information about the product he intends to buy including its ingredients, date of manufacture, price, quantity, direction for use, etc. It is because of this reason that the legal framework in India requires the manufacturers to provide such information on the package and label of the product.

3. Right to choose: The consumer has the freedom to choose from a variety of products at competitive price. This implies that the marketers should offer a wide variety of product in terms of quality, brand, price size, etc., and allow the consumer to make a choice from amongst these.

4. Right to seek redressal: The consumer has a right to get relief in case the product or service fall short of his expectations. The Consumer protection Act provides a number of reliefs to the consumers including replacement of the product, removal of defect in the product, compensation paid for any loss or injury suffered by the consumer.

5. Right to be heard: The consumer has a right to file a complaint and to be heard in case of dissatisfaction with a good or a service. It is because of this reason that many enlightened business firms have set up their own consumer service and grievance cells.

6. Rights to consumer education: The consumer has a right to acquire knowledge and to be well-informed consumer throughout life. He should be aware of his right and the reliefs-available to him in case of a product or service falling short of his expectations.

Consumer Responsibilities: Although efforts have been made to protect the interest of consumers by both government and non-government organisations but exploitation of consumers will not be stopped till consumers come forward to safeguard their own interest first. Along with government and voluntary organisations, consumers have also to bear some responsibilities. Some such responsibilities are given below:

(i) Consumer must exercise his rights: These rights are rights to safety, right to be informed, right to choose, right to be heard, right to seek redressal and right to consumer education. Consumers must be aware of their own rights with regard to the products or services they buy from the markets.

(ii) Cautious consumers: Before purchasing, consumer must insist on getting foil information on the quality, quantity, utility, price, etc. of the goods or services. This will ensure a better purchase. He should not depend entirely on the seller.

(iii) Filing complaint for the redressal of genuine grievances: Sometimes, consumers ignore the deception of traders believing that the loss is small but this attitude encourages corrupt business practices to continue. On the other hand, some consumers also make excessive claims for compensation for small defect in goods which are not justified.

(iv) Consumer must be quality conscious: This is the only way to eradicate the problems of adulteration and spurious goods. While making purchases, consumers must look for standard quality certification marks like ISI, Agmark, FPO, Wolmark, etc.

(v) Advertisements often exaggerate: Do not be carried away by these. Consumers should compare the uses of the product given in the advertisement copy and the actual product. Any discrepancy should be brought to the notice of the sponsor of the advertisement.

(vi) Insist on cash memo: If there is any defect in the goods purchased and consumer has to make a complaint, the cash memo must be there as proof of purchase. A seller is bound to give a cash memo.

Consumers can be protected from exploitation if the consumer movement gets involved seriously. The educated consumers in society should also raise their voices and fight for the desired changes. Unless the consumers raise these issues, either through active participation in consumer organisations through other groups, the question of consumer right will only remain in textbook materials.

Question 12.
Define Stock Exchange. Discuss its functions.
Answer:
Stock exchange means an organized market where securities issued by companies, Government organization and semi-government organization are sold and purchased, securities include shares, debentures, bonds etc.

Definition of Stock Exchange:

1. According to Pyle, “Stock Exchange are market place where securities than have been listed thereon may be bought and sold for their investment or speculation.”
2. According to the securities contracts (Regulation) Act, 1956-Stock Exchange means any body of buying selling or dealing in securities.
3. According to Huband and Dockeray: Securities or stock exchanges are privately organized markets which are used to facilitate trading in securities.

Function of Stock Exchange: The main functions perfermed by stock exchange are as follows:
1. Providing Liquidity and Marketability to Existing securities: Stock exchange is a market place where market for sale and purchase of securities increase their marketability and enhance the liquidity.

2. Pricing of Securities: A stock exchange provided platform to deal in securities. The force of demand and supply work freely in the stock exchange. In this way, prices of securities are determined.

3. Safety of transaction: Stock exchanges are organized market. They fully protect the interest of investors. Each stock exchange has is own laws and bye-laws. Each members of stock exchange has to follow them and any members found violating them his membership is canceled.

4. Contributes to Economic Growth: Stock exchange provides liquidity to securities. This gives the investors a double benefit-first the benefit to the change in the market price of securities can be taken advantages of and secondary in case of need for money they can be sold at the existing market price at any time.

Question 13.
Explain the process of entrepreneurship.
Or, What role is played by entrepreneur while establishing an enterprise?
Or, Describe briefly the steps involved in starting a new business.
Answer:
The main process of entrepreneurship or role or functions of entrepreneur or the steps involved starting a new business are as follows:
1. Opportunity scouting: Entrepreneurial opportunities have to be actively searched for. One may rely on personal observation, discovery or invention, personal/professional contacts/networks and experience or may also help in identifying business opportunities. Alternatively, one may rely on published reports, surveys and the like, Narayan Reddy of vir chow Laboratories relied on the personal discovery of the molecule during his employment with a pharmaceutical company.

As observation means seeing/hearing/smeliing with a purpose, opportunity spotting pre-supposes tendency to look at the things and phenomenon from an entrepreneural mindset. Most of us have a consumer’s mindset. If we see any object of desire, may be a pen, laptop, latest model of the mobile phone or somebody eating pizza or burger, we crave to have the same thing for ourselves.

The entrepreneurial rond, on the other hand starts working out, what would be the market size, where to procure it from and at what price, will I be able to woo the customers from the existing players and how-by selling it cheaper, by providing more value or by better service and so on.

Entrepreneurial opportunities may also identified through a process of international, domestic, sectoral/industrial analysis.

For example, post WTO, international trade and investment have become freer of restrictions. Textile quotas are being phased out, and, there are greater, opportunities for textile and textile made-ups from India. Global outsourcing is on the rise ancl India offers a huge and varied pool of technical manpower that makes it a cost effective destination for in-bound global outsourcing in manufacturing as well as Information Techonology Enabled Services (ITES).

2. Identification of specific product offering: While the environment scan. leads to the discovery of more generalised business opportunities, there is a need to zero in on to a specific product of service idea. For example, trade liberalisation since WTO’s has resulted in export opportunities, but the question is what to export and where? A country-product matrix may be helpful in deciding.

This way we may arrive at the product-maket combination showing the fastest growing import and from our point of view export potential.

Deciding on the product offering makes the highest demand on the entrepreneur’s creativity and innovativeness. Yet, in a competitive environment, it is possible to differentiate one’s product offering even if the generic product is the same and serves the same need.

Clear decision on specific product offering necessitates decision on who is buying, why, and what are the value expectations. One will be able to succeed when the value delivered not only meets but also exceeds customers’, expectations and create a “vow” impact.

3. Feasibility Analysis: The product offering idea must be technically feasible, that is it should be possible with the available technology to convert the idea into a reality. And this should be possible at a cost that can be covered by the price it will fetch, in other words, the idea must be economically feasible too. The project cost should be within the resources available and the resource providers should be reasonably sure of an appropriate return on (profit) and return of (safety and liquidity) of their investments. That is, the idea must be financially viable as well.

There should be enough sales in the immediate and the prospect of growth in the foreseeable future, there should be adequate assurance on the commercial viability of the chosen product offering. Now-a-day, it is also important to be safe that there aren’t any environmental and other legal restrictions/necessity of prior approvals for setting up the business. It is also to be decided as to whether the business will be organised as a proprietory concern/partnership firm/company or cooperative entity.

Clearly the chosen product offering must be feasible from the diverse perspective. One must compile these findings in the form of a business plan that would have to be submited to the funding authorities, in the Indian context, the funding authorities, in the Indian context, the State finance Corporations. They may be having a prescribed proforma in which the details of the business plan are required to be furnished and, as such there may a need to adopt the contents accordingly.

The busines plan may be appraised by the funding institution and upon satisfying itself about the desirablity of assisting the project and upon furnishing the required margin money, banks may sanction the loan amount. Upon the project approval, the entrepreneur can proceed the project.

Question 14.
Discuss the various functions of management.
Answer:
The main functions of management are as follows:
1. Planning: Planning is the process of thinking before doing. Planning is always the first function. Planning bridges the gap between “where we stand today and where we want to reach”. It involves determinatin of goals as well as the activities required to be undertaken to achieve the goals. It is performed at all levels of management and in every organisation planning consists of deciding in advance.

Planning is a long process for the purpose of which following steps are taken:

• Setting objectives
• Developing premises
• Evaluating alternatives courses
• Identifying alternative courses of action
• Selecting an alternative
• Implementing the plan
• Follow-up-action.

2. Organising: Once the plans are in place, it is time to proceed with other phases of the project. The next step would be to establish an organisation structure setting up organisational structure mean deciding the framework of how many units and sub-units of departments are needed, how many parts or designations are needed in each department, how to distribute the authority and responsibility among different people.

Following steps are taken to determinate the organising functions of management:

• Assignment of duties
• Departmentalization
• Identification and division of work
• Establishing reporting relations.

3. Staffing: Staffing is the selection of employers who have the training and skill to meet the demands of each position. It aims at right man for the right job. It is the third step or function of a manager. It refers to recruiting, selecting appointing the employers, assigning them duties maintaining cordial relations and taking care of grievances of employees.

It also includes training and developing the employees, deciding their remuneration, promotion, increments, etc. evaluating the performance, maintaining personal records of employees.

4. Directing: After the plans are made, the organisation structure is established and the people hired, it is time to move ahead with the project. If the new venture is to be a success leadership is essential directing refers to giving directions or instructions to employers by motivating them, supervising the activities of employees, communicating with them.

5. Controlling: This is last function of manager. In this function managers try to match the actual performance with the planned performance and if there is no match between both of them managers try to find out the reasons of deviation and suggest corrective measures to come on the path of plan controlling functions refers to all the performance on the path of plan.

In the form of conclusion, controlling process has five main elements:

1. Setting of performance standards
2. Comparison of actual performance with standards
3. Measurement of actual performance
4. Analysing deviations
5. Taking corrective action.

Question 15.
What is marketing mix? What are its chief elements? Discuss.
Or, What do you mean by marketing-mix? Discuss its elements.
Or, What is marketing mix? Explain in brief its factions.
Answer:
Marketing-mix: Marketing-mix refers to the tools which the marketeer mixes in order to interact with a particular market.

Marketing-mix is the combination of different marketing decision- variables being used by a firm to market its goods and services. The environmental influences are uncontrollable elements whereas the ingredients of marketing-mix are controllable elements. The blend or combination of these ingredients constitutes the marketing-mix and this marketing-mix is expected to be in tune with the environmental influences. Following are the main definitions of marketing-mix given by some eminent experts:

1. “Marketing-mix is the set of marketing tools that the firm uses to pursue its marketing objectives in the target market.” -Philip Kotler
2. “Marketing-mix is the term used to describe the combination of the four inputs which constitute the core of a company’s marketing system the product, the price structure, the promotional activities, and the distribution system.” -William J. Stanton
3. “The marketing mix is composed of a larger battery of advices which might be employed to include customers to buy a particular product.” -Keelery and Lazar
4. “The firm’s task is to find the best setting for its marketing decision variables. The setting constitute its Marketing-mix.” -Philip Kotler

The elements of marketing-mix are briefly discussed below:
1. Product: It involves planning, developing and producing the right type of products and services to be offered by the firm to the customers. It deals with the product range, durability, branding, packaging, colour and other features.

2. Price: The marketing manager should determine the price in such a way that, the firm is able to sell its products successfully. The price of the product must cover its cost of production and distribution and also a reasonable margin of profit. Pricing also involves establishing policies regarding credit and discount. The variables that vitally influence pricing are demand for the product in question, its cost, actual and potential competition and Government regulation, etc.

3. Promotion: It deals with informing the customers about the firm’s product and persuading them to purchase the same. It involves personal selling, advertising, publicity and sales promotion. Taken together, these elements constitute the promotion-mix of the firm. A brief description of the elements of promotion is given below:

(i) Personal Selling of Salesmanship: It includes activities both inside and outside the firm conducted on a person-to-person basis with the buyers. It involves oral presentation Of the product to prospective customers.

(ii) Advertising: It appeals to customers through impersonal media like radio, television, newspapers and magazines. Compared, with personal selling which involves personal contact with a customer, advertising is used to communicate simultaneously to a large number of people.

(iii) Publicity: Publicity may be defined as any form of non-paid significant news or editorial comment about ideas, products or institutions in the mass media like newspapers, radio and T.V. It appears primarily in the form of news stories and differs from advertising in that the latter is a paid medium of promotion.

(iv) Sales Promotion includes all promotional activities other than personal selling, advertising and publicity that are intended to increase sale of a product. The examples are distribution of samples, discount coupons, freebies, contests, window display, etc.

4. Place or Physical Distribution: Place in the context of marketing- mix refers to a set of decisions that need to be taken in order to make the product available to the customers for purchase and consumption. It involves physical handling and movement of goods from place of production to the place of consumption.

Question 16.
What do you mean by Functional Organisation? What are its characteristics?
Answer:
Functional Organisation functional authority occupies a position in between line and staff authority. It is a means of putting the specialists in top positions throughout the enterprise. It confers upon the holder a limited power of command over the people of other departments concerning their function. Functional authority remains confined to functional guidance of different departments.

Under functional organisation, various activities of the enterprise are Classified according to functions like production, marketing, finance, personnel, etc., and are put under the charge of functional specialists. A functional head directs the subordinates in his particular areas.

Characteristics of Functional Organisation:
The main characteristics of functional organisation are:

• In this organisation planning is separated from production.
• A number of specialists work together and all of them have authority over all the workers.
• Co-existence of two types of authority relationship line authority and functional authority.
• Functional organisation is based upon the principle of specialisation.
• In this organisation each worker receives orders and instructions from a group of specialists.
• Under this organisation every employee has a limited scope of work.

Advantages: The advantages of functional structure are:

• It is easier to organise departments based on functions and sub-functions.
• It gives balanced weightage to the basic functions on which the survival of a firm depends.

Question 17.
Explain the importance of organisation as a function of Management.
Answer:
Organising:
Once the plans are in place, it is time of proceed with other phases of the project. The next step would be to establish an organisation structure. Setting up organisational structure means deciding the framework of how many units and sub-units of departments are needed, how many posts or designations are needed in each department, how to distribute the authority and responsibility among different people.

Following steps are taken to determine the organising function of management:

• Assignment of duties
• Departmentalisation,
• Identification and division of work and
• Establishing reporting relations.

Question 18.
What are advantages of management?
Answer:
The advantages of management are follows:

• Helps in achieving objectives
• Provides effectiveness to human efforts
• Brings order to endeavors
• Critical ingredient in nation’s growth
• Provides judgment and vision
• Acts as balancing force
• Accomplishment of group goals
• Optimum utilisation of resources
• Maximum production at a minimum cost
• Efficient running of business
• Management helps in increasing competition
• Development of the nation
• Beneficial to both business as well as society.

BSEB Bihar Board 12th Entrepreneurship Important Questions Short Answer Type Part 1 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Important Questions Short Answer Type Part 1

Question 1.
Explain the steps involved in investigation of market assessment.
Answer:
The underlined steps involved in investigation of market assessment:

• The first step is to obtain a concept of the product. Then it should be ascertained whether it is already available in the market.
• Secondly it is needed to find out its application and use. If it is a new product, a detailed study is needed to find out its actual use for the consumer.
• It is necessary to find out cost per unit. It is to be examined whether this cost is comparable with that of other competitive products. This will ultimately decided the sale price.
• Every product of service has to face market competition at some stage. So it should be assessed through a study of the trends in demand and supply.
• Technical complexity should be examined and it is needed to find out whether such technology is available locally.
• Ideas should also have to be examined on the basis of expected annual turnover.

Question 2.
Explain the sources for scanning environment.
Answer:
The following are the sources of scaning environment:

• Daily newspapers, such has economic times, Business standard, Financial express, The times of India, The Hindus, International Herald Tribune are the most important sources of scanning environment.
• The other sources are Journals such as Business India, Business world, update, India Today fortline international etc.
• The other sources are census date, R.B.I, Bulletin, Economic Survey, Reports, of Committees Constituted by government of India. Government of India publication of economic, trade Industry and regulatory matters.

Question 3.
Project identification is of great importance. Why?
Answer:
Project identification has got its importance in business for the following reasons:

• Project identification initials the process of development, production employment etc.
• Project identification has consequences which are long term in nature.
• It provides the framework of the future activities of the enterprises.
• Project identification shapes the future pattern of services.
• It usually involves substantial financial outlays.
• Project identification also initiates development of basic infrastructure and environments.
• Project identification brings the necessary changes in society in course of time.

Question 4.
Give the objectives of environment scanning.
Answer:
The following are the main objectives of environment scanning:

• To obtain an effective utilization of resources for improved financial performance.
• To monitor constant changes in consumer behaviour, market competition, government policy etc.
• To identity the threats and opportunities of the business.
• To develop strategies towards emerging problems and safeguarding growth.
• To foresee and predict future events and adjust accordingly.

Question 5.
State infrastructural facilities necessary to help an enterprise.
Answer:
In absence of infrastructure an enterprise can not operate smoothly. The following are the important infrastructure which help an enterprise:

• Suitable size and location of Land.
• Adequate means of transort for incoming and outgoing.
• Appropriate plant and machinery.
• Uninterrupted supply of power.
• Proper availability of water.
• Opportunities of getting trained and skilled workers.

Question 6.
Mention any two reasons to study the environment.
Answer:
The following are the reasons to study environment:

• In getting success: Ensuring his survival, an entrepreneur has to succeed in attaining his objectives. It is possible only when he keeps his eye riveted on the changing scenario and adapts himself according.
• Self, adaptation: The study and scanning of environment inspires and motivates an entrepreneur to adapt himself to the changing conditions and also to real benefit by turning the situation in his favour which is very important.

Question 7.
Explain any two economic factors affection the environment.
Answer:
In business the economic factor extent the maximum impact. In business and industries the economic environment gets affect by some factors which are as under:

1. Stage of economic development: The shape of a business is based on the size and shape of a business enterprise, such as the Colgate company manufactured a low priced washing machine in the areas of developing and undeveloped countries where the market was undeveloped with low income.
2. Economic policies: The industrial policy, revenue policy and trade policy etc. are all includes in govt’s economic policies. The above policies sometimes have favourable or adverse or no effect.

Question 8.
Is management a profession?
Answer:
Management as a profession: Profession means an occupation for which specialised skills are required. These skills are not meant for self-satisfaction, success of these skills is measured not in terms of money alone.

The essential features of a profession are as follows:

• Specialised knowledge
• Acquired knowledge
• Representative body and
• Ethical standards or code of conduct.

Question 9.
What are the main qualities of an entrepreneur?
Answer:
The essential quality of an entrepreneur is his ability to

• take risk of future uncertainty.
• innovate something new as a profitable apportunity.
• create good or services commensurating the existing environement.
• organise for getting the desired result.
• face challenges of a highly competitive market.

Question 10.
Why market assessment is necessary for entrepreneurship?
Answer:
Market assessment guides the exact nature of goods or services which may be sold profitably.
Market assessment includes a study of:

• The size and type of demand, the choice and preference of consumers, the target group of customers.
• The type of competition, existence of other suppliers, the possibility of future changes in market condition.
• The estimated cost of production, margin of profit, selling price, market price of similar products and opportunities of cost effectiveness.
• The on-going innovation and changes owing to technological advancements which are likely to affect future cost and quality of output.

Question 11.
What are the qualities of a successful entrepreneur?
Answer:
The main qualities of a successful entrepreneur are as under:

• Talent to recognise a business opportunity market or product.
• Ability to assemble financial and non-financial resources.
• Zeal to translate ideas into action.
• Commitment and dedication to work.
• Desire to achieve even within adverse conditions.
• Competence to identify the real needs and desires of consumers and the methods to satisfy them effectively.
• Readiness to accept risks and challenges.
• Promptness to take fast and correct decision.
• Skill to foresight, forecast and future planning for growth.

Question 12.
Describe the term ‘Factory cost’.
Answer:
The raw material when to be converted into a finished product with the help of labour has to undergo various process. At this stage or in factory whatever the cost is incurred is known as ‘work overhead’ and when added to the prime cost, it comes to be known as factory cost.

Question 13.
What is Break-Even Analysis?
Answer:
Break even analysis helps in understanding ‘Returns’ and ‘Cost’ in relation to sales of a business enterprise. In case of Break-even returns through sales become equal to the cost of a products.

Question 14.
Management increases efficiency. How?
Answer:
Management helps in increasing efficiency through best possible planning of the activities of the organisation, through co-ordination by appointment of suitable staff and ensuring cost reductions through control.

Question 15.
What is Management?
Answer:
Management is a process by which for efficient end effective undertaking of work group planning, organising, appointment, directions and control are implemented.

Question 16.
Define Social Responsibility.
Answer:
According to Prof. Kountz and O’Donnel, “Social responsibility is the personal obligation of everyone as he acts in his own interest to assure that the righ and legitimate interests of all others are not impinged.”

Question 17.
What is Market Evaluation? Why It is dove?
Answer:
As certaining customers income, their likes and dislikes and details about their educational qualifications through a survey and producing products to match the above is termed as market evaluation. This is undertaken to manufacture and products in accordance with the market requirements.

Question 18.
What is Market Observation?
Answer:
Making an analytical study of, demand and supply of various commodity in the market and on the basis of information so gathered to make a forecast of demand for various products is termed as market observation.

Question 19.
What is opportunity?
Answer:
Opportunity implies reaping of benefits from the existing conditions. Some people get benefited who identity such opportunities whereas the rest achieve nothing. Opportunities are not stable, they come for a short period and then leave.

Question 20.
What are the various factors of sensing an opportunity?
Answer:
Following are the main factors of sensing an opportunity:

• Power of understanding
• An eye on changes taking place
• Knowledge of competition
• Information of data and its analytical study and
• Quality to adapt to change or new techniques of promotion.

Question 21.
What do you understand by promotion?
Answer:
Promotion refers to identification of new business opportunities and thereafter with an object to earn profit organise a business enterprise making full use of the capital, assets and management capabilities.

Question 22.
How would you define a business opportunity?
Answer:
Business opportunity is defined as a project or scheme which is very attractive in reference to rate of return and encourages an entrepreneur to invest in a specific project and give it a concrete shape.

Question 23.
What is the importance of environment?
Answer:
Importance of environment is on account of the following reasons:

• Search for a suitable opportunity,
• Fight for survival or existence,
• In the achievement of success,
• Setting oneself properly adjusted.

Question 24.
What are the main limitations of environmental analysis?
Answer:
Following are the main limitations of environmental analysis:

• Difficulties involved in practical application,
• Uncertain future, and
• No guarantee about the effectiveness of the enterprises.

Question 25.
What is Micro Environment?
Answer:
It refers to those factors which remain under the control of the entrepreneur, which include the targets of the enterprise and its functioning, type of organisation, administration and authority and policies etc.

Question 26.
What is Market Environment?
Answer:
Market environment refers to those external factors and forces which have a direct impact on marketing and managerial capabilities so as to develop the market with the help of desired consumers.

Question 27.
What is the statistical method of demand forecasting?
Answer:
Demand forecasting through statistical method is done by periodical despatches, internal arrivals and through the help of outward despatches.

Question 28.
State any two features of modern concept of marketing.
Answer:

• Modern concept of marketing lays maximum stress on consumers’ satisfaction. According to this concept without customers’ satisfaction neither any profit can be earned nor the business can survive for a long period of time.
• In the modern concept of marketing goods and services are produced keeping in view the desire and requirements of the consumers or customers.

Question 29.
State any four points to be considered while selecting an enterprise.
Answer:
Four main points to be considered while selecting an enterprise are as under:

1. Easy to establish
2. Availability of capital
3. Stability and Continuity
4. Minimum Government control and regulations.

Question 30.
What is plant layout?
Answer:
A good plant layout is one which enables the raw material to pass through the different stages of manufacturing process in the shortest possible period of time. Its main objective is to increase the production capacity and make the production process least expensive.

Question 31.
What is ecological feasibility?
Answer:
Ecological feasibility is especially important for those products and services which have a direct or indirect impact on the environment projects such as; Generation of electricity, irrigation, cement manufacturing and chemical industry etc. The main object of such projects is to prevent environmental pollution.

Question 32.
State any four factors to be considered in promotion of a business enterprise.
Answer:

1. Selection of suitable business
2. Selection of the form of business organisation
3. Financial means or resources, and
4. Size of the business enterprise.

Question 33.
What points would you consider before establishing an enterprise?
Answer:
There is a need to take into consideration the following points before establishing a business enterprise: Availability of labour, raw material, plant and equipments, finance management, market, location, manufacturing process and reporting on progress of the project.

Question 34.
Sate any one definition of business planning.
Answer:
According to Curtiloaf and others, “Business planning is also known as a form of prospectus.” In reality, business planning is a written description of what an industrialist or entrepreneur is doing and what he wants to achieve through this and what else he is thinking of doing?

Question 35.
What are the conditions of good business planning?
Answer:
A good business planning comprises the following essential elements. It should be simple, clear and confidential and should enable completion of the project in time bound framework.

Question 36.
State any two main essentials of a good project planning or preparation.
Answer:

1. Development of a project should be based upon realistic concepts for fulfilment of certain commodity requirements or needs of the market.
2. All aspects of the project should be carefully and impartially reviewed before implementation of the project.

Question 37.
What do you understand by Project Management?
Answer:
Project management is achievement of desired and pre-determined objectives in a given span of time at the pre-estimated cost. Thus project from the beginning till the end is the process of planning and directing the efforts for the achievement of desired objectives.

Question 38.
Give one definition of a project.
Answer:
According to J. S. Citizer, “Project is the whole complex of activities involved in using resources to gain benefits.”

Question 39.
What is project report?
Answer:
project report is a written account of the projects initiated by an entrepreneur or firm giving details of the various activities undertaken by them. It is a written account of technical, financial, commercial and social aspects related to the project.

Question 40.
State any two objectives of project report.
Answer:

1. To make an assessment of the investment opportunities and
2. To submit report for securing financial assistance.

BSEB Bihar Board 12th Business Studies Important Questions Short Answer Type Part 4 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Important Questions Short Answer Type Part 4

Question 1.
Give the meaning of finance.
Answer:
Money required for carrying business activities is called business finance. Almost all business activities require some finance. Finance is needed to establish a business, to run it, to modernise it, to expand to diversity it. It is thus, needed at every stage in the life of a business entity. Availability of adequate finance is thus very crucial for the survival and growth of a business.

Question 2.
Give the meaning of Financial Management.
Answer:
All finance comes at some cost. It is quite imperative that it needs to be carefully managed. Financial management is concerned with optimal procurement well as usage of finance. For optimal procurement different available sources of finance are compared with associated risks. Similarly, the finance; so procured needs to be invested in a manner that the returns for the investment exceed the cost at which procurement has taken place.

Financial managment aims at reducing the cost of funds procured. Keeping the risk under control, and achieving effective deployment of such funds is covered under financial management. It also aims at ensuring availability of enough funds whenever required as well as avoiding idle finance.

Question 3.
What are the main objectives of financial management?
Answer:
The main objectives of financial management are as follow:
1. Profit maximization: It is the chief aim of every investor, while purchasing the share of company, the investor see the profitability of that company. When a company earns maximum profit, chances are that the rate of dividend will be high. Thus the main objectives of financial management is to safeguard the interest of shareholders, creditors, the company, employees and the government at large.

The arguments behind the concept of maximization of profit are:

• Profit is the indicator of economic efficiency of the company.
• Profit leads to efficient allocation of resources and the distribution to the users.

However, it suffers from certain limitations:

• It assumes perfect competition in the economy which may always be not so. Thus it may not lead to optimisation of owner’s interest and society.
• It ignores the impact of dividend policy on market price of the share.
• It is a vague concept and is subject to varied interpretation.

2. Wealth maximisation: It is also known as value maximisation or net present worth maximisation. It is universally accepted as the objective for financial decision. As per this concept the value of an asset should be viewed in terms of benefits it can produce.

Question 4.
What are the characteristics of sound financial plan?
Answer:
The following are the main characteristics which should be kept in mind while making a sound plan:

• Simplicity: The financial plan should be simple so that every one can understand it easily.
• Based on organizational objectives: The financial plans are prepared with a view to cover the main objectives of that organization. Hence, it is suggested that funds should be procured at the lowest cost otherwise the profitability of the organisation will suffer.
• Best utilisation of resources: The best financial plan is the one which utilises its own resources for the benefit of the company. Ploughing back of profit is the best way of financing the business enterprises.
• Flexibility: The financial plan should be flexible, which means due scope for adjustment as and when needed may be incorporated in it.
• Utility: The proper use of capital should be for the development of the organisation.

Question 5.
Define the capital structure.
Answer:
Debt and equity differ significantly in their cost and riskiness for the firm. Cost of debt is lower than cost of equity for a firm because lender’s risk is lower than equity shareholder’s risk, and therefore, they should acquire a lower rate of return. Additionally, interest paid on debt is deductible expense for computation of tax liability whereas dividends are paid out of after tax profits.

Increased use of debt, therefore, is likely to lower the overall cost of capital of the firm provided that cost of equity remains unaffected cost. Hence, capital structure refers to the mix between owner and borrowed funds.

Question 6.
Distinguish between owner’s capital and borrowed capital.
Answer:
Distinction between owner’s capitals and borrowed capital:

Question 7.
What is “Financial Risk”? Why does it arises?
Answer:
Financial risk is the chance that a firm would fail to meet its payment obligations. Increased use of debt increases the financial risk of a business. It arises on account of use of debt in Capital Stricture, any default in meeting these commitments may force the business to go into liquidation. Higher use of debt increases the fixed financial charges of a business.

Question 8.
Define a current asset and gave four examples.
Answer:
Current assets are those assets which are the normal routing of the business, get converted into cash or cash equivalents within one year. Current assets facilitate smoothing day-to-day operations of the business. Current assets are usually more liquid but contribute less to the profits than fixed assets e.g., 1. Cash in hand/Cash at bank, 2. Marketable securities, 3. Bills receivables, 4. Debtors, 5. Finished goods inventory, 6. Work in progress, 7. Raw materials, 8. Prepaid expenses.

These assets are expected to get converted into cash or cash equivalents within a period of one year. There provide liquidity to the business. An asset is more liquid if it can be converted into cash quicker and without reduction in value. Insufficient investment in current assets may make it more difficult for an organization to meet its payment obligations. However, these assets provide little or low returns. Hence a balance needs to be struck between liquidity and profitability.

Question 9.
Give the functions of financial market.
Answer:
Financial market is a merket for the creation and exchange of financial assets. Its functions are as follows:

1. Mobilization of savings and channelising them into the most productive uses.
2. Facilitate price discovery.
3. Provide liquidity to financial assets.
4. Reduce the cost of transactions.

Question 10.
What do you mean by money market?
Or, “Money market is essentially a market for short-term funds.” Discuss.
Answer:
The money market is a market in which short-term money loan or financial assets that are close or near substitute of money are traded. The ‘short term’ means generally for the period upto one year. The term ‘close substitutes for money’ is used to denote financial assets which can be turned into cash quickly. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. It has no physical location, but is an activity conducted over the telephone and through the internet.

It enables the raising of short term funds for meeting the temporary shortage of cash and obligations of the temporary deployment of excess funds for earning returns. The major participants in the market are the Reserve Bank of India (RBI), commercial banks, non-banking finance companies, state governments, large corporate houses and mutual funds.

Question 11.
Discuss the objectives for evolution of money market.
Answer:
There are mainly four objectives of money market:

• It provides an equilibrating mechanism for earning out short term surpluses and deficits.
• The money market provides a focal point for Central Bank intervention for influencing liquidity in the economy.
• It provides reasonable access to users of short-term money to meet their requirements at realistic, price.
• From the point of view of an efficient banking system, the money market should genuinely equilibrate in the short term to provide a viable alternative to default in the maintenance of reserve requirement by banks.

Question 12.
Discuss the functions of money market.
Answer:
There are various functions performed by money market for overall economic development of country, main are as follows:

• It provides outlets to commercial banks, non-banks financial concerns, business corporations and other investors for short-term.
• It also provides short term funds to business man, industrialists, traders, etc. to meet their day-to-day requirement of working capital.
• It enables businessmen with temporary surplus funds to invest them for a short periods.
• By discounting the bills and commercial papers the money market bridges the time limit between the sale and actual payment of money.

Question 13.
What is Capital market?
Answer:
Capital market is concerned with long term finance for industry and government, just as money market is concerned with supply of short-term finance to trade and industry. Capital market consists of series of channels through which the saving of community are made available for industry and government.

It refers to all the facilities and industrial arrangement for the borrowing and lending term funds. It directs savings into most productive uses leading to growth and development of the economy. An ideal capital market is one where finance is available at reasonable cost.

Question 14.
How capital market function?
Answer:
The term capital market refers to facilities and industrial arrangement through which long term funds, both debt and equity are raised and invested. The capital market consists of development banks, commercial banks and stock exchanges.

An ideal capital market is one where finance is available at reasonable cost. The process of economic development is facilitated by the existence of a well-functioning capital market. Infact, development of the financial system is seen as a necessary conditions for economic growth. It is essential that financial institutions are sufficiently developed and that market operations are free, fair, competitive and transparent. The capital market should also be efficient in respect of the information that it delivers, minimize transaction cost, allocate capital most productively.

Question 15.
Explain the two parts of Capital market.
Answer:
The capital market can be divided into two parts:

1. Primary market
2. Secondary market

1. Primary market: The primary market is known as the new issues market. It deals with flow securities being issued for the first time. The essential function of a primary market is to facilitate the transfer of investible funds from savers to entrepreneurs seek to establish new entereprise or to expand existing ones.

2. Secondary Market: The secondary market is also know, as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity arid marketability to existing securities.

Question 16.
What are the features of Indian capital market?
Answer:
The capital market in India has exhibited following special features in the recent years:

• Greater reliance on debt instruments as against equity and in particular borrowing from financial, institutions.
• Issue of debentures, particularly convertible debentures with automatic and compulsory conversion into equity without the normal option given to investors.
• Floation of equity issues for the purpose of takeover, amalgamation, etc. and avoidance of borrowing from financial institutions for fear of their discipline and conversion clause by bigger companies.
• Avoidance of underwriting by some companies to reduce the costs and avoid scrutiny by financial institutions.

Question 17.
Discuss the functions of stock exchange.
Answer:
The functions of a Stock Exchange are as follow:
1. A ready and continuous market for trading: Stock exchange provides a ready market for those who wish to buy and sell securities. Buyers and sellers do not have to search for each other. They come in contact with each other through brokers who provide a quick intermediation between them.

2. Liquidity: It provides quick liquidity to investors who are motivated by liquidity factors. People with surplus cash can invest in securities which provide them a return higher than the bank rate and people with deficit it cash can sell their securities to convert them into cash.

3. Time efficiency: It enables the security holder to dispose off his securities at the best price in the shortest possible time period. So it true for buyers.

4. Source of finance: Government local bodies, financial corporations and corporate enterprises have been able to raise crores of rupees by channelising individuals funds in securities. It thus, provides an effective source of finance to them where by they connect their financial requirements for their day-to-day working, setting up to new ventures, expansion, diversifications and modernisation of their existing units.

5. Pricing of securities: It, prices the securities as close as possible to their net worth. The prices are based on their present and future income earning capacity. Though some degree of speculation is always present, buyers and sellers deals in securities which almost reflect their true “work. Prices are quoted and published daily in the forms of stock market quotations.

6. Equity and safety in dealings: A stock exchange operates in accordance with rules and regulations framed by the government. The government is empowered under the Securities Contracts (Regulations) Act, 1956 to grant and withdraw approval or change bye-laws, demand enquiries on the members of stock exchange, supersede and suspend the governing body of the stock exchange, suspend its business etc.

7. Mobilisation of savings: It provides an outlet for investment of surplus funds of corporates and non-corporates in corporate securities that would fetch them a ratio of return generally higher than the rate offered by banks.

8. Capital formation: By channelising savings in the most productive investment outlets, stock exchanges provides for capital formation and economic growth of an economy.

Question 18.
What is meant by National Stock Exchange of India (NSE)?
Answer:
The National Stock Exchange is the latest, most modem technology driven exchange. It was incorporated in 1992 and was recognised as a Stock Exchange in April 1993. It started operations in 1994, with trading on the wholesale debt market segment. Subsequently, it lanched the capital market segment in November 1994 as a trading platform for equities and the futures and option segment in June 2000 for various derivate instruments. NSE has set f up a nation-wide fully automated screen based trading system.

The NSE was set up by leading financial institutions, banks, insurance companies and other financial intermediaries. It is managed by professional, who do not directly or indirectly trade as on the exchange. The trading rights are with the trading members who offer their services to the investors. The board of NSE comprises of senior executives.

Question 19.
Authority can be delegated but not responsibility. Explain.
Answer:
The power of taking decision in order to guide the activities of others is called authority. Authority can be delegated where the obligation of a subordinate to perform assigned duties. The manager divides some of work and authority among his subordinates. No manager can perform all the function himself. Responsibility can not be delegated in any circumstances.

Question 20.
What are the reasons for the establishment of SEBI?
Answer:
The capital market has witnessed a tremendous growth during 1980’s charactered particularly by the increasing participation of the public. This ever expanding investors population and market capitalization led to a variety of malpractices on the part of companies and others involved in the securities market. The glaring examples of these malpractices include existence of self-styled merchant bankers, unofficial private placements rigging off prices, unofficial premium on new issues, non-adherence of provision of the Companies Act, violation of rules and regulations of stock exchanges and listing requirements, delay in delivery of shares etc. These malpractices and unfair trading of shares etc. These malpractices and unfair trading practices have eroded investors’ confidence and multiplied investors’ grievances.

The government and the Stock Exchange authorities were helpless in redressing the investors problems because of lack of proper penal provision in the existing legislation. This gave rise reasons to establish Securities Exchange Board of India.

Question 21.
Define the Securities and Exchange board of India (SEBI).
Answer:
The Securities and Exchange Board of India was established by the Government of India on 12th April for the orderly and healthy growth of securities market and for investors protections. It was to function under the administrative control of the ministry of finance of the Government of India. The SEBI was given all powers through the ordinance passed in Parliament to redress the investors and to control the malpractices prevailing in stock exchanges, the government of India took initiative to set up a separate regulatory body known as Securities and Exchange Board of India.

Question 22.
What is ‘Treasury Bills’?
Answer:
Treasury Bills: Treasury bills are issued by the Reserve Bank of India on behalf of the Government of India as a short term liability, and sold to banks and to the public, The issue period ranges from 14 to 364 days. Treasury bills are negotiable instrument, i.e,. there are freely transferable. They do not pay any interest but are issued at a discount. Their marketability makes them popular and they are considered a safe investment.

Question 23.
What is marketing? What functions does it play in process of exchange of goods and services? Explain.
Answer:
According to Candiff and Still marketing is the business process by which products are matched with the markets and through which transfers of ownership are affected. If a business organization produces the products after assessing the requirements of prospective customers, it is more likely to be successful to achieve its objective. The process of marketing works through the exchange mechanism.

The individual buyers and sellers obtain what they need and want through the process of exchange i.e. the process of marketing involves exchanges of products and services for money or something considered valuable by the people. Exchange mechanism refers to the process through which two or more parties come together to obtain the desired products or service from someone.

Question 24.
Give the important features of marketing.
Answer:
Features of Marketing:
1. Need and wants: The process of marketing helps individuals and groups in obtaining what they heed and want. Thus, the primary reason for people to engage in the process of marketing is to satisfy some of their needs or wants. Needs are basic to human beings and do hot pertain to a particular product. Wants are culturally defined objects that are potential satisfiers of needs.

2. Creating a market offering: Marketing offering refers to a complete offer for a produce for service, having given features, like size, quality, taste, etc. at a certain price, available at a given outlet or location and soon. A good ‘market-offer’ is the one which is developed after analysing the needs and preference of potential buyers.

3. Customer value: The process of marketing facilitates exchange of products and services between the buyers and sellers. The buyers make buying decision on their perception of the value of the product or service in satisfying their need, in relations to its cost. A product will be purchased only if it is perceived to be giving greatest benefit or value for the money.

4. Exchange mechanism: The process of marketing works through the exchange mechanism. The individuals (buyers and sellers) obtain what they need and want through the process of exchange. In the modem world, goods are produced at different places and are distributed over a wide geographical area through various middlemen, involving exchanges at different levels of distribution.

In short marketing is not merely a business phenomenon or confined only to business organiations but marketing activities are equally relevant to nonprofit organisations such as hospitals, schools, sports-clubs and social and religious organizations.

Question 25.
What are the main objectives of marketing?
Answer:
The main objectives of marketing are:

• Consumer Satisfaction: A business organisation can survive only if its products and services are demanded by customers. Effective marketing makes an effort to supply goods and services to the consumer.
• Identification of consumers’ demand: Marketing is concerned with assessment of consumers’ demand so that the producer can know what goods be produced and in what quantity.
• Co-ordination with other business activities: Marketing makes an effective effort of Co-operation with other aspect’s of business.
• Sales promotion: The aim of marketing is to boost sales through advertisement of mass contact technique. The new and old customers should be kept well informed about the quality and price of product.
• Control on sales areas: Marketing is useful in controlling the sales areas of any business organisation. Every organisation plans its sales according to an area or region, if any variation in sales then it sounds be corrected as soon as possible.

Question 26.
What are the differences between marketing and selling.
Answer:
The differences between marketing and selling are:
Marketing

1. Focuses on customer heeds.
2. Customer enjoys supreme importance.
3. Product planning and development to match products with markets,
4. Inregrated approach to achieve long term goals.
5. Converting customers needs.
6. Caveat vender (let the sellers beware)
7. Profit through customer satisfaction.

Selling:

1. Focuses on seller needs.
2. Product enjoys supreme importance.
3. High pressure selling to sell goods already produced.
4. Fragmented approach to achieve immediate gains.
5. Converting products into cash.
6. Caveat emptor (let the buyers beware).
7. Profit through sales volume.

Question 27.
Define the marketing management.
Answer:
Marketing management involves planning, organising, directing and controlling all marketing activities. It is responsible for developing and executing an appropriate marketing mix so as to achieve the organisational objectives. According to Philip Kotler, marketing management is the analysis, planning, implementation and control of programmes designed to create, build and maintain mutually beneficially exchanges and relationships with target market for the purpose of achieving organisational objectives.

Marketing management is thus marketing concept in action. It is an important functional are a of business. In most of the large concerns it is organised as a separate marketing department under the control of a marketing manager.

Question 28.
Explain the significance of marketing mix.
Answer:
Marketing mix represents a blending off our elements, product, price, promotion and physical distribution. Determination of marketing mix is an important decision which the market manager has to take. If proper marketing mix is determined the following benefits will accure to the organisation:

• Marketing mix serves as the link between the business firm and its customers. It focuses attention on the satisfaction of customers. Thus, it helps in pursuing consumer oriented marketing.
• Since marketing mix takes care of the needs of the customers it helps in increasing.sales and earning higher profits.
• Marketing mix gives consideration to the various elements of marketing system. There is a balanced relation between these elements.
• Marketing mix signifies that its four dements are closely inter-related. Decisions or changes in one element usually affect decisions or changes in the other.
• Marketing mix facilitates melting the requirements of different types of customers, product design, pricing, promotion and distribution will depend upon the needs and purchasing power of the customers.

Question 29.
Define advertising. What arc its main features? Explain.
Answer:
Advertising: Advertising is the dissemination of information, concerning an idea, product or service to induce action in accordance with the intent of the advertiser. According to William J. Stanton, “Advertising consists of all the activities involved in presenting to a group a non-personal oral or visual, openly sponsored message regarding a product, service or idea, this message called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.”

Features of advertising:

• The purpose of advertising is to promote ideas about the products and services of a business firm. It is directed towards increasing the sales of a business.
• Advertising is a non-personal form of presentation and promotion of ideas, goods or services, There is no face to face direct contact with the customers,
• It is also described as non-personal sales-manship. It is complementary to personal selling because it simplifies the task of sales force by creating awareness about the message in the minds of potential customers.
• Advertising is a paid form of communication. The advertisements are communicated through various advertising media and the advertiser has to pay for the space or time hired by him to communicate the message to the present and prospective customers.
• Advertising is done by an identified sponsor.

Question 30.
Give the functions of labeling in the marketing of products.
Answer:
The functions of labeling are as follows:
1. It suggests the product’s usage, cautions in use, etc. and specify its components.
2. It helps in identifying the product or brand. For example, the name Parle, Monaco imprinted on the pack helps us to identify from number of packs which one is Parle’s Monaco Biscuit.
3. It helps in grading the products into different categories. For example, Gamier. Hair conditioner comes in different categories for different hair say for ‘normal hair’ and for other categories.
4. It helps in promotion of the products. A carefully designed level can attract attention and give reason to purchase it. For example, the pack of Dabur Amla hair oil states, “Baalon mein dum, life main fun”. The label for Surf Excelmatic says, “Keep cloth, good look and your machine in top condition.”
5. Labelling performs the functions of providing information required by law. For example, the statutory warning on the package of cigarette or Pan masala is, “Smoking is injurious to health” or “Chewing tobacco is injurious to health”. Such information is required on processed goods, drugs and tobacco products also.

Question 31.
Give the distinction between Advertisement and Personal Selling.
Answer:
Distinction between advertisement and personal selling:

Question 32.
Product is a bundle of utilities. Do you agree?
Or, Product is a mixture of tangible and intangible attributes. Discuss.
Answer:
A product may be defined as a bundle of utilies consisting of various product features and accompanying services. The bundle of utilities or the bundle of psychological satisfaction that the buyer receives is provided by the seller when he sells a particular product. Anything that can be of value to the buyers termed as products.

It can be tangible i.e. which can be felt seen and touched physically such as pencil, a cycle or an intangible such as services rendered by a doctor, hair dresser or a lawyer. Thus, anything that has value to the other can be marketed. It can be a product or a service or a person or a place, an idea or an event or an organisation or experience or properties.

Question 33.
What are your responsibilities as a customer?
Or, State any two points of responsibility of a consumer.
Answer:
As a customer our responsibilities are as follows:

• Do not make hurry in buying.
• Do not make forget to get receipt and Guarantee/Warranty card.
• Do not make compromise with quality.
• Beware from false and misleading advertisement.
• Contact immediately to the concerned officer against grievance/complaint.

Question 34.
What is Recruitment? How it is differ from selection?
Answer:
Recruitment function is concerned with discovering the sources of manpower required and tapping these sources, i.e. attracting the potential employees to offer their services to the working organisation.

Difference between recruitment and Selection:

Question 35.
What is meant by ‘Leadership’?
Answer:
Leadership may be defined as the process of influencing the behaviour of people at work, towards the realisation of specified goals. It involves ability to use non-coercive influence on the activities, goals and motivation of others achieving organisational objectives.

Question 36.
State any two differences between Advertising and Personal Selling.
Answer:
Advertising

1. Advertising is a means of indirect and impersonal communication.
2. It is a means of mass communication.
3. Usually there is no personal contact in case of advertising.
4. Message reaches the customers quickly.

Personal Selling:

1. Personal selling is a means of direct face-to-face communication.
2. Only limited number of people can be contacted.
3. There is personal contact.
4. Message reaches at a very slow speed.

Question 37.
What is meant by on the job training?
Answer:
On the job method: The trainees are asked to do a particular job on a machine or in a workshop or laboratory. They are taught the technique of operating a machine or using tools are equipment by an experienced employee or a special supervisor. In this way, the trainees learn a job and also produce goods. Supervisor examines the work done by them from time to time and in case of any defect suggests the way tomend it.

Question 38.
State two points of importance of Supervision.
Answer:
The term supervision is normally used m management to mean overseeing the employees at work. It implies, instructing, observing, monitoring and guiding the subordinates at work place to ensure that plans and procedure are implemented as intended, (i) It is a universal activity performed at all levels of management, (ii) It is an important part of the directing function of management.

Question 39.
What is Budgetary control?
Answer:
Budgetary control is a technique of controlling based on budgets. A budget is a quantitative statement for a definite future period of time for the purpose of obtaining a given period. Actual results are compared with budgetary standard. An organisation may have a budget for any activity or function.

Question 40.
State any two features of Scientific Management.
Answer:
Two features of scientific management:

1. Systematic approach: Scientific management is a systematic approach to management and its use ensure that all activities are completed in a systematic and scientific manner.
2. Improves the efficiency of workers: The main aim of scientific management is to increase the efficiency of workers. This is done through conducting various kind of studies such as time study, motion study and fatigue study.

Question 41.
How scale of operation affect the requirement of fixed capital?
Answer:
Fixed capital requirements depend on the size of business. If the size is big, it will need more fixed capital. For smaller organisation the need will be less.

Question 42.
How “scale of oprations” affect the requirement of fixed Capital?
Answer:
Fixed capital requirements depend on the size of business. If the size is big, it will need more fixed capital. For smaller organisation the need will be less.

Question 43.
“Sales promotion makes advertising effective.” How?
Answer:
Once the samples of a particular product reach the consumers through sales promotion the advertisement of the same product gets more effective.

Question 44.
Give two advantages of functional Organisation.
Answer:
The advantages of functional structure are:

1. It is easier to organise department based on functions and sub-functions
2. It gives balanced weightage to the basic functions on which the survival of a firm depends.

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 5 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 5

Question 1.
IDBI was established in the year
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 2.
Dividend is
(a) Net profit
(b) Reserve fund
(c) Appropriation of profit
(d) Loss rate
Answer:
(c) Appropriation of profit

Question 3.
Public deposits are the source of
(a) Short term finance
(b) Long term finance
(c) Medium term finance
(d) Social investigator
Answer:
(c) Medium term finance

Question 4.
When is divided given upon cumulative preference share?
(a) In the year of profit
(b) In the year of loss
(c) In the year of profit or loss
(d) None of these
Answer:
(c) In the year of profit or loss

Question 5.
Telephone expenseis
(a) Fixed
(b) Variable
(c) Semi-variable
(d) None of these
Answer:
(c) Semi-variable

Question 6.
The best example of variable cost is
(a) Interest on capital
(b) Rent
(c) Material cost
(d) Wealth tax
Answer:
(c) Material cost

Question 7.
Fixed cost per unit increase when
(a) Production decreases
(b) Production increases
(c) Production remains same
(d) All of the above
Answer:
(a) Production decreases

Question 8.
Which of the following is not factory overhead?
(a) Factory insurance
(b) Depreciation on plant
(c) Drawing office salary
(d) Salary
Answer:
(d) Salary

Question 9.
Which of the following example of fixed cost?
(a) Direct material cost
(b) Chargeable expense
(c) Salary of office management
(d) Direct labour cost
Answer:
(d) Direct labour cost

Question 10.
Price policy is
(a) In favour of consumer
(b) In favour of government
(c) In favour of manufacturer
(d) In favour of all
Answer:
(d) In favour of all

Question 11.
Merger means
(a) Taking over one organisation by another organisation
(b) Combination of two or more business
(c) Acquiring controlling interest in organisation
(d) None of the above
Answer:
(b) Combination of two or more business

Question 12.
Generally diversification is classified in
(a) Two ways
(b) Three ways
(c) Four ways
(d) Five ways
Answer:
(c) Four ways

Question 13.
Conglomeration is a technique to
(a) Develop in the same industry
(b) Diversify in other areas
(c) Taking over other units
(d) Divide the organisation in subunits
Answer:
(b) Diversify in other areas

Question 14.
Modernisation is necessary
(a) To increase export
(b) To received self depend
(c) Increase employment
(d) All of the above
Answer:
(d) All of the above

Question 15.
Main functions of financial management are
(a) Procurement of funds
(b) Utilisation of funds
(c) Allocation of net profits
(d) None of these
Answer:
(d) None of these

Question 16.
Source of trade credit is
(a) Long-term finance
(b) Medium-term finance
(c) Short-term finance
(d) None of these
Answer:
(a) Long-term finance

Question 17.
Fixed capital needed for …………. period.
(a) For short period
(b) For long period
(c) For both
(d) None of these
Answer:
(a) For short period

Question 18.
Bank overdraft facilities are available on
(a) Saving Bank A/c
(b) Current A/c
(c) Term Deposit A/c
(d) All of these
Answer:
(b) Current A/c

Question 19.
Financial management is
(a) Art
(b) Science
(c) Both
(d) None of these
Answer:
(c) Both

Question 20.
Dividentis
(a) net profit
(b) appropralation of profit
(c) reserve fund
(d) past undistributed profit
Answer:
(b) appropralation of profit

Question 21.
The first step to translate ideas into actions is business
(a) Planning
(b) Finance
(c) Organisation
(d) Location
Answer:
(a) Planning

Question 22.
The rate of dividend on preference shares of
(a) Variable
(b) Fixed
(c) Semi-variable
(d) none of these
Answer:
(b) Fixed

Question 23.
Debentures are
(a) unsecured borrowings
(b) fully secured borrowings
(c) Pastly secured borrowings
(d) all of the above
Answer:
(a) unsecured borrowings

Question 24.
The purpose of advertising is
(a) to attract potential buyers
(b) to inform and guide customer
(c) to make publicity of product
(d) all of the above
Answer:
(d) all of the above

Question 25.
According to guidelines issued by government debt equity ration for venture capital fund is
(a) 1.5
(b) 2.0
(c) 0.5
(d) 2.5
Answer:
(a) 1.5

Question 26.
Management is a profession. This statement is of
(a) Lawrance A. Appley
(b) R.C. Davis
(c) Henry Fayol
(d) None of these
Answer:
(b) R.C. Davis

Question 27.
Marketing concept is
(a) Production-oriented
(b) Sales-oriented
(c) Customer-oriented
(d) All of these
Answer:
(d) All of these

Question 28.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 29.
Under franchising
(a) Control on the product remains in the hands of franchise
(b) Control on the product goes in the hands of franchise
(c) Above (a) and (b)
(d) None of the above
Answer:
(a) Control on the product remains in the hands of franchise

Question 30.
Lack of standardisation of the equipment is due to
(a) Internal constraints
(b) External constraints
(c) Government Barriers
(d) Regulatory Barriers
Answer:
(b) External constraints

Question 31.
Project life cycle is not concerned with the following
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilistion stage
Answer:
(d) Stabilistion stage

Question 32.
Modernisation improves
(a) Products
(b) Production
(c) Processes
(d) Capacity
Answer:
(d) Capacity

Question 33.
Gestation period is concerned with
(a) Idea creation period
(b) Incubation period
(c) Implementation period
(d) Commercialisation period
Answer:
(c) Implementation period

Question 34.
What is required for fixed capital and working-capital of any enterprise?
(a) Finance
(b) Marketing
(c) Planning
(d) None of the above
Answer:
(a) Finance

Question 35.
The term “fund” as used in fund flow analysis means
(a) Cash only
(b) Current Assets
(c) Current liabilities
(d) Excess of current assets over current liabilities
Answer:
(d) Excess of current assets over current liabilities

Question 36.
What affects purchase of plant will have on working capital?
(a) Decrease
(b) Increase
(c) No effect
(d) None of the above
Answer:
(a) Decrease

Question 37.
B.E.P. =
(a) \(\frac{\text { Fixed Cost }}{P / V \text { Ratio }}\)
(b) \(\frac{\text { Fixed Cost }}{\text { Contribution }} \times 100\)
(c) \(\frac{\mathrm{P} / \mathrm{V} \text { Ratio }}{\text { Fixed } \cost}\)
(d) None of these
Answer:
(a) \(\frac{\text { Fixed Cost }}{P / V \text { Ratio }}\)

Question 38.
P/V ratio
(a) \(\frac{\text { Contribution }}{\text { Sales }} \times 100\)
(b) \(\frac{\text { Sales }}{\text { Contribution }} \times 100\)
(c) \(\frac{\text { Contribution }}{\text { Sales }}\)
(d) None of these
Answer:
(a) \(\frac{\text { Contribution }}{\text { Sales }} \times 100\)

Question 39.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 40.
Technological Development and Infrastructure Corporation of India was established in the year
(a) 1975
(b) 1986
(c) 1988
(d) 1990
Answer:
(c) 1988

Question 41.
What is management?
(a) Science
(b) Art
(c) Art and Science both
(d) None of these
Answer:
(c) Art and Science both

Question 42.
The foremost need of development in a country is of
(a) Physical Resources
(b) Economic Resources
(c) Efficient management
(d) None of these
Answer:
(c) Efficient management

Question 43.
Present production system in fact is
(a) Direct production
(b) Indirect production
(c) Primary
(d) Secondary
Answer:
(b) Indirect production

Question 44.
Out of the following which is the method of quality control?
(a) Inspection method
(b) Statistical quality central method
(c) Both “a” and “b” above
(d) None of these
Answer:
(c) Both “a” and “b” above

Question 45.
Out of the following which is the method of production?
(a) Direct method of production
(b) Indirect method of Production
(c) Both “a” and “b” above
(d) None of the above
Answer:
(c) Both “a” and “b” above

Question 46.
Marketing Expenditure is a burden
(a) On Industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 47.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All of these
Answer:
(d) All of these

Question 48.
Maximum wide scope is of
(a) Brand
(b) Labelling
(c) Packaging
(d) Trade mark
Answer:
(c) Packaging

Question 49.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 4 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 4

Question 1.
What is net sales?
(a) Gross sales – Sales return
(b) Sales return – Gross sales
(c) Gross sales – Profit
(d) Gross sales + Profit
Answer:
(a) Gross sales – Sales return

Question 2.
The formula of operating profit ratio
(a) \(\frac{\text { Gross profit }}{\text { sales }} \times 100\)
(b) \(\frac{\text { Net profit margin }}{\text { sales }} \times 100\)
(c) \(\frac{\text { Operation profit }}{\text { sales }} \times 100\)
(d) \(\frac{\text { Net profit }}{\text { sales }} \times 100\)
Answer:
(c) \(\frac{\text { Operation profit }}{\text { sales }} \times 100\)

Question 3.
Operating ratio = ?
(a) Gross profit – Sales
(b) Profit – Loss
(c) Net sales – Gross profit
(d) Cost + Profit
Answer:
(c) Net sales – Gross profit

Question 4.
An ideal current ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Answer:
(a) 2 : 1

Question 5.
Current ratio is
(a) Composite ratio
(b) P/L ratio
(c) Balance sheet ratio
(d) None of these
Answer:
(c) Balance sheet ratio

Question 6.
Which of the following is not operating expense?
(a) Advertising expense
(b) Wages
(c) Written of preliminary exp.
(d) Rent
Answer:
(c) Written of preliminary exp.

Question 7.
Formula of the depreciation to sales
(a) \(\frac{\text { Depreciation }}{\text { Net sales }} \times 100\)
(b) \(\frac{100}{\text { Net sales }} \times \text { depreciation }\)
(c) \(\frac{\text { Net sales }}{\text { Depreciation }} \times 100\)
(d) \(\frac{\text { Depreciation }}{100} \times \text { Net sales }\)
Answer:
(a) \(\frac{\text { Depreciation }}{\text { Net sales }} \times 100\)

Question 8.
Contribution
(a) Sales less total cost
(b) sales less variable cost
(c) Sales less fixed cost
(d) None of these
Answer:
(b) sales less variable cost

Question 9.
Break even point
(a) \(\frac{\text { Fixed cost }}{\text { Contribution per unit }}\)
(b) \(\frac{\text { Variable cost }}{\text { Contribution }}\)
(c) \(\frac{\text { Fixed cost }}{\text { Profit }} \times 100\)
(d) \(\frac{\text { Unit cost }}{\text { Loss }} \times 100\)
Answer:
(a) \(\frac{\text { Fixed cost }}{\text { Contribution per unit }}\)

Question 10.
Utility is included in BEP as
(a) Diagnostic tool
(b) Risk valuation
(c) Profit improvement
(d) All of these
Answer:
(d) All of these

Question 11.
The difference between actual sale and break-even sale is called
(a) Net profit
(b) Gross profit
(c) Contribution
(d) Margin of safety
Answer:
(d) Margin of safety

Question 12.
Risk capital foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 13.
Venture capital thought was originated in
(a) India
(b) England
(c) America
(d) Japan
Answer:
(d) Japan

Question 14.
Venture capital was established in SIDBI
(a) 1972 – 73
(b) 1952 – 53
(c) 1992 – 93
(d) 1892 – 93
Answer:
(c) 1992 – 93

Question 15.
Risk capital foundation was established by
(a) IFCI
(b) UTI
(c) IDBI
(d) ICICI
Answer:
(a) IFCI

Question 16.
Venture capital contains
(a) High risk
(b) Venture risk
(c) No risk
(d) None of these
Answer:
(a) High risk

Question 17.
According to guidelines issued by government, debt equity ratio for venture capital is
(a) 1.5
(b) 2.0
(c) 0.5
(d) 2.5
Answer:
(a) 1.5

Question 18.
Indian investment fund was established by
(a) IFCI
(b) SBI
(c) Can Bank
(d) Grindlay Bank
Answer:
(d) Grindlay Bank

Question 19.
Variables are used for technical capability
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(c) 4

Question 20.
Labour intensive technique is appropriate because it relate with
(a) Unstable nature
(b) Movable nature
(c) Constant nature
(d) Advantage in nature
Answer:
(a) Unstable nature

Question 21.
Capital intensive technique is not much useful because it
(a) Helps labour power
(b) Exploit customers
(c) Improves balanced regional developments
(d) Control capitalised resources
Answer:
(b) Exploit customers

Question 22.
Capital intensive technique is favoured due to
(a) Rapid growth
(b) Social influence
(c) (a) & (b) both
(d) None of these
Answer:
(d) None of these

Question 23.
Management is
(a) Art
(b) Science
(c) Art & Science both
(d) None of these
Answer:
(c) Art & Science both

Question 24.
The social responsibility of management is
(a) Towards the government
(b) Towards all
(c) Towards employees
(d) Towards himself
Answer:
(b) Towards all

Question 25.
Management is a profession. This statement is of
(a) Fayol
(b) Terry
(c) Robins
(d) American Management Association
Answer:
(d) American Management Association

Question 26.
Management is the development of men and not the direction of things
(a) Lawrence A. Appley
(b) R. C. Devis
(c) Keith and Gubelline
(d) Henry Fayol
Answer:
(a) Lawrence A. Appley

Question 27.
H. Fayol started the function of management
(a) 1912
(b) 1816
(c) 1916
(d) 1926
Answer:
(a) 1912

Question 28.
Function of management is
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(d) 5

Question 29.
Motivation includes
(a) Directing
(b) Controlling
(c) Staffing
(d) Planning
Answer:
(a) Directing

Question 30.
According to American Management Association, Management is a
(a) Science
(b) Profession
(c) Art
(d) Employment
Answer:
(b) Profession

Question 31.
Steps of product are
(a) Extractive
(b) Genetic
(c) Communication
(d) Extractive and Genetic
Answer:
(d) Extractive and Genetic

Question 32.
Production design includes
(a) Standardisation
(b) Planning
(c) Cost
(d) Control
Answer:
(a) Standardisation

Question 33.
Infact, present production system is
(a) Direct production
(b) Primary
(c) Secondary
(d) Indirect production
Answer:
(d) Indirect production

Question 34.
Use of linear programming
(a) In production method
(b) In market method
(c) In transportation method
(d) All of these
Answer:
(c) In transportation method

Question 35.
Production process includes
(a) Creativity
(b) Price
(c) Warehousing
(d) All of these
Answer:
(a) Creativity

Question 36.
The purpose of advertisement is
(a) To attract potential buyers
(b) To inform and guide customers
(c) To make publicity of product
(d) All of these
Answer:
(d) All of these

Question 37.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 38.
What does affect product mix?
(a) Marketing
(b) Product
(c) Financial
(d) All of these
Answer:
(a) Marketing

Question 39.
Which is the most important scope?
(a) Brand
(b) Labelling
(c) Packaging
(d) Trade mark
Answer:
(c) Packaging

Question 40.
Labelling is
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of money
Answer:
(b) Necessary

Question 41.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All these
Answer:
(d) All these

Question 42.
Importance of marketing concept is for
(a) Society
(b) Consumers
(c) Producers
(d) All the three
Answer:
(d) All the three

Question 43.
Marketing concept is
(a) Production oriented
(b) Sales oriented
(c) Customer oriented
(d) All the three
Answer:
(d) All the three

Question 44.
The advantage of marketing is to
(a) To consumers
(b) To businessmen
(c) To producer
(d) To all
Answer:
(d) To all

Question 45.
For business, marketing is
(a) Compulsory
(b) Necessary
(c) Unnecessary
(d) Luxury
Answer:
(a) Compulsory

Question 46.
Marketing expenditure is a burden
(a) On industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 47.
Money spent on marketing is
(a) Wastage
(b) Unnecessary expenses
(c) Burden on customer
(d) Investment
Answer:
(d) Investment

Question 48.
The rate of dividend on preference share is
(a) Fixed
(b) Variable
(c) Semi variable
(d) All of these
Answer:
(a) Fixed

Question 49.
SFC Act in India was passed in the year
(a) 1948
(b) 1949
(c) 1950
(d) 1951
Answer:
(b) 1949

Question 50.
IFCI was established in the year
(a) 1939
(b) 1948
(c) 1950
(d) 1956
Answer:
(b) 1948

BSEB Bihar Board 12th Business Studies Important Questions Objective Type Part 2 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Objective Important Questions Part 2

Question 1.
Which of the following is not the tool of sales promotion?
(a) Samples
(b) Prize in packet
(c) Coupons
(d) Publicity
Answer:
(a) Samples

Question 2.
Modern approach of financial management is
(a) procurement of funds
(b) utilisation of funds
(c) (a) and (b) both
(d) None of these
Answer:
(c) (a) and (b) both

Question 3.
The functions of Entrepreneur are
(a) To imagine business idea
(b) To study project feasibility
(c) To set up enterprise
(d) all of the above
Answer:
(d) all of the above

Question 4.
Which of the following is function of packaging?
(a) Protection
(b) Convenience
(c) Indentification
(d) All of the above
Answer:
(d) All of the above

Question 5.
Planning is not the remedy of all business evils, because
(a) Planning is generally biased and time consuming
(b) Planning is goal oriented
(c) Planning enables us to face future uncertainties
(d) Planning improves competitive strength Ans. (b)
Answer:
(b) Planning is goal oriented

Question 6.
Which of the following is a determinant of Capital structure?
(a) Cash Flow Statement
(b) Interest Coverage Ratio
(c) Debt Service Coverage Ratio
(d) All of the above
Answer:
(a) Cash Flow Statement

Question 7.
Which of the following is not a characteristic of Entrepreneurship?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 8.
Grapevine Communication is
(a) informal
(b) formal
(c) written
(d) none of these
Answer:
(a) informal

Question 9.
The foremost stock exchange in the world was established in
(a) Delhi
(b) London
(c) America
(d) Japan
Answer:
(b) London

Question 10.
State Commission can settle consumer disputes
(a) up to Rs 5 lakh
(b) up to Rs 10 lakh
(c) up to Rs 20 lakh
(d) Above Rs 20 lakh
Answer:
(d) Above Rs 20 lakh

Question 11.
How many levels of management are?
(a) 3
(b) 4
(c) 5
(d) 6
Answer:
(a) 3

Question 12.
The main function of management according to Koontz O’Donnel are
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(a) 2

Question 13.
The father of Scientific management was:
(a) Gilbreth
(b) Taylor
(c) Robertson
(d) Watson
Answer:
(b) Taylor

Question 14.
Mental Revoultion in the essence of
(a) Scientific management
(b) Combination
(c) Rationalisation
(d) Profession
Answer:
(a) Scientific management

Question 15.
When scientific management was introduced?
(a) 1913
(b) 1832
(c) 1903
(d) 1920
Answer:
(a) 1913

Question 16.
Entrepreneurial Development programme provides?
(a) Self-employment
(b) Education & training
(c) Skill increment
(d) All of these
Answer:
(a) Self-employment

Question 17.
Entrepreneurial Development Institute of India is situated in:
(a) Ahmedabad
(b) Mumbai
(c) New Delhi
(d) Chennai
Answer:
(a) Ahmedabad

Question 18.
Which of the following sentence is not a characteristic of entrepreneurship?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 19.
“Management is a profession.” This statement is of:
(a) George R. Terry
(b) American Management Association
(c) Henry Fayol
(d) Lawrence A Appley
Answer:
(b) American Management Association

Question 20.
The essence of management is:
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) Controlling
Answer:
(a) Co-ordination

Question 21.
Co-ordination is
(a) Function of management
(b) The essence of management
(c) An objective of management
(d) None of the above
Answer:
(b) The essence of management

Question 22.
Henri Fayol was a
(a) Social scientist
(b) Mining minister
(c) Accountant
(d) Production Engineer
Answer:
(b) Mining minister

Question 23.
Which of the following does not characterise the business environment?
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity
Answer:
(b) Employees

Question 24.
Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal organisation
Answer:
(d) Informal organisation

Question 25.
For delegation to be effective it is essential that responsibility be accompained with necessary
(a) Authority
(b) Manpower
(c) incentives
(d) Promotions
Answer:
(a) Authority

Question 26.
Which one of the following is not an element of direction?
(a) Motivation
(b) Communication
(c) Delegation
(d) Supervision
Answer:
(c) Delegation

Question 27.
Which of the following is a financial incentive?
(a) Promotion
(b) Stock Incentive
(c) Tab security
(d) Employee Participation
Answer:
(b) Stock Incentive

Question 28.
Grapevine is
(a) Formal Communication
(b) Barrier of communication
(c) Lateral Communication
(d) Informal communication
Answer:
(d) Informal communication

Question 29.
Controlling function of an organisation is
(a) Forward looking
(b) Backward looking
(c) Forward as well as backward looking
(d) All of the above
Answer:
(c) Forward as well as backward looking

Question 30.
Budgetary control requires the preparation of
(a) Training schedule
(b) Budgets
(c) Network diagram
(d) Responsibility centres
Answer:
(b) Budgets

Question 31.
The cheapest source of finance is
(a) debentures
(b) equity share capital
(c) preference share
(d) retained earning
Answer:
(a) debentures

Question 32.
A fixed asset should be financed through
(a) a long term liability
(b) a short term liability
(c) a mix of long and short term liability
(d) None of these
Answer:
(a) a long term liability

Question 33.
Primary and secondary markets
(a) Complete with each other
(b) Complement each other
(c) Function independently
(d) Control each other
Answer:
(c) Function independently

Question 34.
Total number of stock exchanges in India are
(a) 20
(b) 21
(c) 22
(d) 23
Answer:
(b) 21

Question 35.
National stock exchange of India was recognised as stock exchange in the year
(a) 1992
(b) 1993
(c) 1994
(d) 1995
Answer:
(b) 1993

Question 36.
Entrepreneurs undertake
(a) Calculated risks
(b) Moderate and calculated risks
(c) Low risks
(d) High risks
Answer:
(a) Calculated risks

Question 37.
In economics, which of the following is not a function of the entrepreneur?
(a) Risk taking
(b) Provision of capital and organisation of production
(c) Innovation
(d) Day to day conduct of business
Answer:
(d) Day to day conduct of business

Question 38.
Communication is a
(a) One-way process
(b) Two-way process
(c) Multiway process
(d) None of these
Answer:
(b) Two-way process

Question 39.
The main function of financial management are
(a) Procurement of funds
(b) Allocation of profits
(c) Utilisation of funds
(d) None of these
Answer:
(d) None of these

Question 40.
Which of the following is not a current assets?
(a) Bills Receivable
(b) Stock
(c) Preliminary Expenses
(d) None of these
Answer:
(b) Stock

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 3 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 3

Question 1.
According to George R. Terry planning are of
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(b) 4

Question 2.
Planning is for
(a) Past
(b) Future
(c) Present
(d) For all
Answer:
(b) Future

Question 3.
Planning is
(a) Necessary
(b) Unnecessary
(c) Wastage of time
(d) Wastage of money
Answer:
(a) Necessary

Question 4.
Planning is the of all managerial activities
(a) Beginning
(b) End
(c) Beginning and End both
(d) None of these
Answer:
(c) Beginning and End both

Question 5.
A good plan is
(a) Goal oriented
(b) Objective oriented
(c) Mental process
(d) All of these
Answer:
(b) Objective oriented

Question 6.
Kinds of Planning on the basis of functions
(a) High level
(b) Middle level
(c) Low level
(d) All of these
Answer:
(d) All of these

Question 7.
Project is not concerned with
(a) Innovation
(b) Vision
(c) Risk
(d) Creativity
Answer:
(d) Creativity

Question 8.
A project is
(a) Cluster of activities
(b) Single activities
(c) Family welfare
(d) opportunity
Answer:
(a) Cluster of activities

Question 9.
Project Management is not concerned with
(a) Functional approach
(b) Centralised policy formulation
(c) Decentralised implementation
(d) Decentralised policy formulation
Answer:
(d) Decentralised policy formulation

Question 10.
Project report is a summary prepared
(a) By promoters
(b) By manager
(c) By entrepreneur
(d) All of these
Answer:
(d) All of these

Question 11.
Project report is a summary of
(a) Facts
(b) Informations
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 12.
When project plan fails?
(a) Employee
(b) Wrong data
(c) Forecasting
(d) None of these
Answer:
(b) Wrong data

Question 13.
Project appraisal is a
(a) Export analysis
(b) Expert analysis
(c) Profitability analysis
(d) All of these
Answer:
(c) Profitability analysis

Question 14.
NPV method relates with
(a) Time value of money
(b) Inflated value of money
(c) Present value of money
(d) None of the above
Answer:
(c) Present value of money

Question 15.
All resources are
(a) Money
(b) Export
(c) Production process
(d) Commerce
Answer:
(c) Production process

Question 16.
Required for fixed capital
(a) Money
(b) Finance
(c) Credit
(d) Goodwill
Answer:
(b) Finance

Question 17.
Fixed cost includes
(a) Cost of labor
(b) Cost of power
(c) Coast of factory
(d) Cost of raw materials
Answer:
(c) Coast of factory

Question 18.
Regular working capital is the part of
(a) Permanent working capital
(b) Variable working capital
(c) Net working capital
(d) None of these
Answer:
(a) Permanent working capital

Question 19.
Networking capital means
(a) C. A. – C. L.
(b) C. A. + C. L.
(c) C. L. – C. A.
(d) All the above
Answer:
(a) C. A. – C. L.

Question 20.
Working capital may be classified into
(a) Permanent working capital
(b) Variable working capital
(c) Regular capital
(d) All the above
Answer:
(d) All the above

Question 21.
Long term loan bears
(a) Fixed rate of interest
(b) Zero rate of interest
(c) Flexible rate of interest
(d) All the above
Answer:
(a) Fixed rate of interest

Question 22.
Various public utility undertaking have to invest heavily
(a) Current assets
(b) Fixed assets
(c) Fictitious assets
(d) Factory assets
Answer:
(b) Fixed assets

Question 23.
Commercial paper was implemented in
(a) 1690
(b) 1790
(c) 1890
(d) 1990
Answer:
(d) 1990

Question 24.
NPV method relates with:
(a) inflated value of money
(b) present value of money
(c) time value of money Long term loan bears
(d) none of these
Answer:
(b) present value of money

Question 25.
Long term loan bears
(a) zero rate of interest
(b) flexible rate of interest
(c) fixed rate of interest
(d) None of the above
Answer:
(c) fixed rate of interest

Question 26.
Networking capital
(a) C.A + C.L.
(b) C.A. – C.L.
(c) C.L – C.A.
(d) all of the above
Answer:
(b) C.A. – C.L.

Question 27.
Risk capital foundation established by
(a) UTI
(b) IDBI
(c) IFCI
(d) ICICI
Answer:
(c) IFCI

Question 28.
Labour intensive technique is useful to
(a) back word economics
(b) developing economics
(c) developed countries
(d) none of the above
Answer:
(b) developing economics

Question 29.
Venture Capital available for
(a) technical units
(b) high risks units
(c) institution units
(d) all of the above
Answer:
(d) all of the above

Question 30.
Regular working capital is the part of
(a) Net working capital
(b) Permanent working capital
(c) Variable working capital
(d) None of the above
Answer:
(c) Variable working capital

Question 31.
The term fund means fund flow statement
(a) Cash only
(b) Current assets
(c) Current liabilities
(d) Excess of current assets over current liabilities
Answer:
(d) Excess of current assets over current liabilities

Question 32.
Purchase of goodwill by issuing debenture is
(a) Application of fund
(b) Sources of fund
(c) No flow of fund
(d) None of these
Answer:
(c) No flow of fund

Question 33.
Increase in share premium is
(a) Sources of fund
(b) Application of fund
(c) No flow of fund
(d) All of these
Answer:
(a) Sources of fund

Question 34.
Closing stock is
(a) No flow of fund
(b) Sources of fund
(c) Application of fund
(d) None of these
Answer:
(b) Sources of fund

Question 35.
Increase in fixed assets due to cash purchase
(a) Sources of fund
(b) Application of fund
(c) Inflow of fund
(d) Not come of fund
Answer:
(b) Application of fund

Question 36.
Current liabilities is
(a) Prepaid expenses
(b) Creditors
(c) Cash Balance
(d) Investment
Answer:
(b) Creditors

Question 37.
Non-current liabilities is
(a) Share
(b) Capital
(c) Debenture
(d) All of these
Answer:
(d) All of these

Question 38.
Depreciation is in operation fund
(a) added
(b) lessen
(c) not included
(d) (a) & (b)
Answer:
(a) added

Question 39.
How does purchase of plant affect working capital
(a) Increase
(b) Decrease
(c) Change
(d) Fund flow
Answer:
(b) Decrease

Question 40.
Which knowledge is necessary before preparation of fund flow statement?
(a) Of balance sheet
(b) Meaning of fund
(c) Meaning of flow
(d) All of these
Answer:
(d) All of these

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 2 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 2

Question 1.
Break-even point indicates
(a) Zero profit, zero loss
(b) Cost revenue relation
(c) Minimum sale price
(d) All of these
Answer:
(a) Zero profit, zero loss

Question 2.
Modernisation improves
(a) Products
(b) Processes
(c) Capacity
(d) Labours
Answer:
(a) Products

Question 3.
Aspects of project evaluation is
(a) Technical evaluation
(b) Financial evaluation
(c) Managerial evolution
(d) All of these
Answer:
(d) All of these

Question 4.
Printing expenses are
(a) fixed
(b) variable
(c) semi-variable
(d) None of these
Answer:
(c) semi-variable

Question 5.
The type of shares are
(a) Equity share
(b) Preference share
(c) Both
(d) None of these
Answer:
(c) Both

Question 6.
Expenses on Marketing is
(a) Wastage
(b) Unnecessary expenses
(c) Burden on customers
(d) Investment
Answer:
(d) Investment

Question 7.
Debit the receiver and credit the giver rule apply
(a) In Personal A/c
(b) In Real A/c
(c) In Nominal A/c
(d) In Trading A/c
Answer:
(a) In Personal A/c

Question 8.
Project report is a summary of
(a) Facts
(b) Informations
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 9.
An entrepreneur must be conscious to protect
(a) Environment
(b) Shareholders
(c) Employees
(d) Customers
Answer:
(a) Environment

Question 10.
In view of growing global competition, an entrepreneur must ensure adequate of goods and services.
(a) quality
(b) price
(c) standard
(d) publicity
Answer:
(c) standard

Question 11.
The necessary quality of leadership is
(a) greatness
(b) wealth
(c) behaviour
(d) popularity
Answer:
(c) behaviour

Question 12.
One of the major causes of business failure is
(a) unskilled labour
(b) inadequate capital
(c) small market
(d) poor management
Answer:
(d) poor management

Question 13.
The major achievement of an entrepreneur is
(a) profit
(b) growth
(c) quality
(d) market
Answer:
(b) growth

Question 14.
The most important factor of business development is
(a) relations
(b) sales
(c) purchases
(d) power
Answer:
(a) relations

Question 15.
Which of the following is a element of sensing the opportunities?
(a) Ability to perceive
(b) Insight into the change
(c) Innovative quality
(d) All of these
Answer:
(d) All of these

Question 16.
Which of the following is a kind of opportunities?
(a) First opportunity
(b) Created opportunity
(c) Last opportunity
(d) None of these
Answer:
(b) Created opportunity

Question 17.
The factor identifies business opportunities
(a) Form of external assistant
(b) Possibility of export
(c) Volume of internal demand
(d) All of these
Answer:
(d) All of these

Question 18.
Learning process involves
(a) Drive
(b) Cue
(c) Response
(d) All of these
Answer:
(d) All of these

Question 19.
Subsidy is
(a) Concession
(b) Discount
(c) Repayment
(d) None off these
Answer:
(c) Repayment

Question 20.
Incentives are not concerned with
(a) Rebate
(b) Exemption from Tax
(c) Lump-sum payment
(d) Provision of seed capital
Answer:
(c) Lump-sum payment

Question 21.
Social behaviour is not conceded with
(a) Production of public goods
(b) Avoidance of unethical behaviour
(c) Fulfilment of social obligation
(d) Profit earning process
Answer:
(d) Profit earning process

Question 22.
Market demand is also known as
(a) supply
(b) real demand
(c) demand forecasting
(d) None of these
Answer:
(c) demand forecasting

Question 23.
Which of the following factors affect market assessment?
(a) Micro environment
(b) Production cost
(c) Demand
(d) None of these
Answer:
(a) Micro environment

Question 24.
Short forecast involves period
(a) 24 months
(b) 15 months
(c) 12 months
(d) 6 months
Answer:
(c) 12 months

Question 25.
Nature of marketing includes
(a) Product planning
(b) Classification of product
(c) Customer
(d) None of these
Answer:
(a) Product planning

Question 26.
Demand forecasting includes
(a) Consumer forecasting
(b) Short term forecasting
(c) Long term forecasting
(d) All of these
Answer:
(b) Short term forecasting

Question 27.
Which of the following factors is to be considered while selecting a product/services?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) All of the above
Answer:
(d) All of the above

Question 28.
Which of the following factors is not to be considered while selecting a product/services?
(a) Market asscssment
(b) Practicability
(c) Competition
(d) Product planning
Answer:
(d) Product planning

Question 29.
Feasibility study is a ractor
(a) Study
(b) Questionnaires
(c) Production
(d) Identification
Answer:
(b) Questionnaires

Question 30.
Selection of an enterprise depends upon
(a) Sole trading
(b) Partnership firm
(c) Self ability
(d) None of these
Answer:
(c) Self ability

Question 31.
The point which is considered while selecting an enterprise
(a) Product
(b) Marketing
(c) Availability of capital
(d) All of these
Answer:
(c) Availability of capital

Question 32.
Product selection is affected by
(a) Technical knowledge
(b) Availability of Market
(c) Position of Competition
(d) All of the above
Answer:
(b) Availability of Market

Question 33.
Essential elements while selectioning an enterprise
(a) Promotion
(b) Area of operation
(c) Secrecy
(d) All of these
Answer:
(b) Area of operation

Question 34.
Which form of organisation is preferred by an entrepreneur if production is to be undertaken on small scale basis?
(a) Sole trade
(b) Partnership
(c) Company
(d) None of these
Answer:
(a) Sole trade

Question 35.
Create perfection in the market to increase sales and profit
(a) Promotion
(b) Innovation
(c) Marketing
(d) Location
Answer:
(b) Innovation

Question 36.
A successful entrepreneur must possess the following quality
(a) Leadership
(b) Control
(c) Innovation
(d) All of the above
Answer:
(d) All of the above

Question 37.
Determines the form of organisation
(a) Size
(b) Innovation
(c) Study
(d) Location
Answer:
(a) Size

Question 38.
Implementation of Industrial licensing Act
(a) 1931
(b) 1941
(c) 1951
(d) 1961
Answer:
(c) 1951

Question 39.
Planning is done
(a) Short term
(b) Middle term
(c) Long term
(d) All terms
Answer:
(d) All terms

Question 40.
Planning is a trap to capture the future
(a) Newman
(b) Hurley
(c) Alen
(d) Terry
Answer:
(c) Alen

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 1 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 1

Question 1.
It is necessary to give due consideration on internal resources before initiating a particular decision
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for External Resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 2.
Which of the following is a factor affecting identification of business opportunities?
(a) Volume of Internal demand
(b) Created opportunity
(c) Existing opportunity in the Environment
(d) None of the above
Answer:
(a) Volume of Internal demand

Question 3.
Learning processes involves
(a) Drive
(b) cue
(c) Response
(d) Drive, Cue and Response
Answer:
(d) Drive, Cue and Response

Question 4.
Subsidy is
(a) Concession
(b) Discount
(c) Repayment
(d) None of these
Answer:
(d) None of these

Question 5.
Business regulatory frame work is concerned with what?
(a) Direction of business
(b) Volume of business
(c) Regulation
(d) None of the above
Answer:
(c) Regulation

Question 6.
What is the Economic policies determined?
(a) Direction of Business
(b) Volume of Business
(c) Direction & Volume of Business
(d) None of the above
Answer:
(c) Direction & Volume of Business

Question 7.
Short-term forecast involve a period of how many months?
(a) Twelve months
(b) Twenty four months
(c) Eighteen months
(d) Thirty six months
Answer:
(a) Twelve months

Question 8.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) Market demand
(c) Demand and supply
(d) All of the above
Answer:
(d) All of the above

Question 9.
Which of the following factors is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) All of the above
Answer:
(d) All of the above

Question 10.
Out of the following what is essential to study in feasibility study?
(a) Cost
(b) Price
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Market demand is known as
(a) Demand forecasting
(b) Real demand
(c) Supply
(d) None of those
Answer:
(a) Demand forecasting

Question 12.
What creates imperfection in the market which ultimately increases the volumes of sales and profit
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(a) Innovation

Question 13.
How will you formulate general plan of Business?
(a) By production planning
(b) By cost planning
(c) By financial planning
(d) By doing all the above
Answer:
(d) By doing all the above

Question 14.
Which of the following is a problem connected with Business?
(a) Profit
(b) Money
(c) Sales
(d) Risk Management
Answer:
(d) Risk Management

Question 15.
On which out of the following the formulating of the general plan of business depends?
(a) Project report
(b) Plant & production planning
(c) Marketing planning
(d) Financial planning
Answer:
(b) Plant & production planning

Question 16.
A successful entrepreneur must possess the quality of
(a) Leadership
(b) Control
(c) Innovation
(d) All of the above
Answer:
(d) All of the above

Question 17.
An entrepreneur
(a) serves as an economic man
(b) applies problem solving for projects
(c) undertakes to act as an intermedia between labour and capital
(d) All of the above
Answer:
(d) All of the above

Question 18.
Business is a game of
(a) Competition
(b) Challenge
(c) Skill
(d) None of these
Answer:
(c) Skill

Question 19.
The major achievement of an entrepreneur is
(a) profit
(b) growth
(c) quality
(d) market
Answer:
(a) profit

Question 20.
An entrepreneur is both a worker and
(a) Manager
(b) Owner
(c) Investor
(d) All of the above
Answer:
(b) Owner

Question 21.
Entrepreneurship involves
(a) Creations of a business unit
(b) Use of skill to earn profits
(c) decision to accept risks
(d) All of the above
Answer:
(d) All of the above

Question 22.
The success of an entrepreneur lies mainly in his ability to
(a) collect resources
(b) appoint staff
(c) sell products
(d) None of these
Answer:
(c) sell products

Question 23.
Market demand is also known as
(a) supply
(b) real demand
(c) demand forecasting
(d) None of the above
Answer:
(c) demand forecasting

Question 24.
Which factors affects market assessment?
(a) demand
(b) supply
(c) demand supply
(d) micro environment
Answer:
(d) micro environment

Question 25.
Which of the following factor is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) all of the above
Answer:
(d) all of the above

Question 26.
Which of the following is to be consider at the time of selection of enterprise?
(a) Situation
(b) Capability
(c) Nature of Product
(d) all of the above
Answer:
(d) all of the above

Question 27.
Planning is
(a) long term
(b) short term
(c) middle term
(d) all of the above
Answer:
(d) all of the above

Question 28.
A good plan is
(a) Rigid
(b) Flexible
(c) Expensive
(d) None of these
Answer:
(b) Flexible

Question 29.
Project identification deals with
(a) logical opportunity
(b) Viable products
(c) effective demand
(d) all of the these
Answer:
(b) Viable products

Question 30.
DPR is
(a) action plan
(b) implement plan
(c) working plan
(d) none of these
Answer:
(b) implement plan

Question 31.
Projects is prepared
(a) by promoters
(b) by entrepreneur
(c) by manages
(d) all of these
Answer:
(d) all of these

Question 32.
Money spent on the preparation of project is
(a) wastage
(b) expenditure
(c) investment
(d) none of these
Answer:
(c) investment

Question 33.
Project report is a summary of
(a) information
(b) facts
(c) analysis
(d) all of these
Answer:
(d) all of these

Question 34.
“A plan is a trap to capture the future.” This statement is of:
(a) Newman
(b) Hurley
(c) Allen
(d) Terry
Answer:
(c) Allen

Question 35.
Of all managerial activities planning is the
(a) Beginning
(b) End
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 36.
Planning is
(a) Past
(b) Future
(c) Present
(d) All time
Answer:
(d) All time

Question 37.
Planning is the function of management
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these
Answer:
(b) Secondary

Question 38.
Planning is
(a) Goal-oriented
(b) Objective-oriented
(c) Mental process
(d) All the above
Answer:
(d) All the above

Question 39.
A good plan is
(a) Expensive
(b) Flexible
(c) Rigid
(d) Time consuming
Answer:
(b) Flexible

Question 40.
The best method of Business growth is
(a) Customer satisfaction
(b) Maximum price
(c) Both
(d) None of these
Answer:
(a) Customer satisfaction