Solution: Organisation of Commerce and Management (51)
Q. 1. (A) Select the correct options and rewrite the sentences [5]
(a) Henry Fayol (b) F.W. Taylor (c) Philip Kotler
(a) Warehouse (b) Transport (c) Communication
(a) representatives (b) members (c) trustees
(a) French (b) Latin (c) Italian
(a) life (b) marine (c) fire
Q. 1. (B) Give one word /phrase/term [5]
Q. 1. (C) State whether True or False [5]
Reason: Planning is the primary function and all other functions are based on it.
Reason: It provides protection to the consumers.
Reason: It is the costliest mode of transport.
Q. 1. (D) Find the odd one [5]
Q. 2. Explain the following terms / concepts (Any FOUR) [8]
(1) Motion Study: Motion study is the study of the movement of a worker or a machine while completing a specific task. It helps in eliminating unnecessary motions and finding the best method of doing a job to increase efficiency.
(2) Controlling: Controlling is the final function of management. It involves measuring actual performance against standards, finding deviations, and taking corrective actions to ensure organizational goals are met.
(3) Bonded Warehouses: These are warehouses licensed by the government to accept imported goods for storage until customs duty is paid. They work under the control of customs authorities.
(4) Consumer Protection: It refers to the steps taken to protect consumers from unfair trade practices, exploitation, and providing them with their rights and remedies through legal mechanisms like the Consumer Protection Act.
(5) E-mail: Electronic mail (E-mail) is a method of exchanging messages between people using electronic devices. It is a fast and cheap mode of written communication used extensively in business.
(6) Co-ordinating: It is the integration and synchronization of the efforts of group members so as to provide unity of action in the pursuit of common goals. It binds all other functions of management together.
Q. 3. Study the following case / situation and express your opinion (Any TWO) [6]
Yes, Mr. Sharad can take a life insurance policy for his wife and children as he has an insurable interest in their lives.
(b) Can Mr. Sharad take a marine insurance policy for his factories?
No, marine insurance covers risks related to sea transport (cargo/hull). For factories (immovable property), he needs Fire or General insurance.
(c) Which types of insurance should Mr. Sharad take for protecting his factories from loss due to fire?
Mr. Sharad should take a Fire Insurance policy to protect his factories from loss due to fire.
Mr. Saksham's payment (fund transfer) is faster.
(b) Whose payment is related to traditional business?
Mr. Suresh's payment (cheque) is related to traditional business.
(c) Whose payment is related to e-business?
Mr. Saksham's payment (electronic fund transfer) is related to e-business.
The organization has neglected its Social Responsibility towards the Society (Protection of Environment).
(b) What kind of pollution they are doing?
They are causing Water Pollution and Soil Pollution.
(c) State any one precautionary measure they need to take.
They should install an Effluent Treatment Plant (ETP) to treat the waste before disposing of it.
Q. 4. Distinguish between the following (Any THREE) [12]
(1) Road Transport vs Water Transport
| Point | Road Transport | Water Transport |
|---|---|---|
| Speed | It is faster than water transport. | It is the slowest mode of transport. |
| Door-to-door | It provides door-to-door service. | It does not provide door-to-door service. |
| Cost | Cost is moderate; higher than water transport. | It is the cheapest mode of transport. |
| Suitability | Suitable for short distances and perishable goods. | Suitable for bulky goods over long distances. |
(2) Life Insurance vs Fire Insurance
| Point | Life Insurance | Fire Insurance |
|---|---|---|
| Subject Matter | Subject matter is Human Life. | Subject matter is Property/Assets. |
| Indemnity | Principle of indemnity does not apply. | Principle of indemnity applies. |
| Duration | Long-term contract (years). | Short-term contract (usually 1 year). |
| Loss Measurement | Loss of life cannot be measured in money. | Loss is measurable in money. |
(3) Organising vs Staffing
| Point | Organising | Staffing |
|---|---|---|
| Meaning | It is the process of defining and grouping activities and establishing authority relationships. | It involves recruiting, selecting, developing, and compensating the workforce. |
| Objective | To identify and bring together resources. | To appoint the right person for the right job. |
| Factors | Deals with internal and external factors. | Deals mostly with human factors (internal). |
| Order | It follows the planning function. | It usually follows the organizing function. |
Q. 5. Answer in brief (Any TWO) [8]
(1) Explain any four principles of management of Henry Fayol.
- Division of Work: Work should be divided into small tasks and assigned to employees based on their skills to improve efficiency and specialization.
- Authority and Responsibility: Authority is the right to give orders, and responsibility is the obligation to perform. There must be a balance between the two.
- Discipline: Employees must obey and respect the rules of the organization. Good discipline is essential for smooth functioning.
- Unity of Command: Each employee should receive orders from only one superior to avoid confusion and conflict.
(2) Explain any four responsibilities of consumer.
- Critical Awareness: Consumers should be aware of the price, quality, and quantity of goods before buying.
- Quality Consciousness: Consumers should look for quality marks like ISI, AGMARK, Hallmark, etc.
- Ask for Cash Memo: Always insist on a valid proof of purchase (bill/invoice) to file complaints later if needed.
- Filing Complaints: If cheated, consumers must not remain silent but file a complaint with the appropriate consumer forum.
(3) Explain any four functions of marketing.
- Marketing Research: Collecting and analyzing information about consumer needs and market trends.
- Product Development: Designing the product according to consumer requirements.
- Pricing: Determining the value of the product in monetary terms.
- Promotion: Communicating with customers to inform and persuade them to buy the product (advertising, sales promotion).
Q. 6. Justify the following statements (Any TWO) [8]
(1) Organising facilitates administration as well as operation of the organisation.
Justification: Organising identifies and groups activities. It assigns roles and responsibilities to specific individuals (Staffing). It clearly defines who is to do what and who is responsible to whom (Hierarchy). This clarity prevents duplication of work and confusion. It ensures resources are used effectively for production (operation) and ensures smooth management (administration). Therefore, organizing bridges the gap between administration and operations.
(2) Consumer organisations and Non-Government organisations play an important role in consumer education.
Justification: Many consumers are unaware of their rights. NGOs and Consumer organizations conduct awareness programs, workshops, and campaigns to educate consumers. They publish magazines and journals (e.g., Grahak Shakti) to spread information. They also provide legal aid and help consumers file complaints in courts. They act as a pressure group on the government to enact consumer-friendly laws. Thus, they play a vital role.
(3) It is easy to set up e-business as compared to traditional business.
Justification: Traditional business requires a physical location (shop/office), which involves high setup costs, registration, and legal formalities. E-business can be started from home with just a computer and internet connection. The procedural requirements are fewer. It does not require maintaining huge inventory initially. The reach is global instantly. Hence, setting up e-business is faster, cheaper, and easier.
Q. 7. Attempt the following (Any TWO) [10]
(1) Explain the functions of an Entrepreneur.
- Innovation: Introduction of new products, methods, or markets.
- Determination of Objectives: Setting clear goals for the business.
- Development of Market: Finding new customers and marketing strategies.
- New Technology: Adopting latest technology to improve production.
- Good Relations: Maintaining good relations with employees and stakeholders.
(2) Explain importance of marketing to the consumers.
- Promotes Product Awareness: Informing consumers about new products.
- Provides Quality Products: Ensures supply of quality goods.
- Variety of Products: Offers choices to meet different needs.
- Consumer Satisfaction: Main aim is to satisfy consumer needs.
- Regular Supply of Goods: Maintains flow of goods in the market.
(3) Explain nature of principles of management.
- Universal Application: Applicable to all types of organizations everywhere.
- General Guidelines: They provide solutions to problems but are not rigid laws.
- Formed by Practice and Experimentation: Developed over years of research.
- Flexibility: Can be modified according to changing situations.
- Behavioral in Nature: Influence human behavior to achieve goals.
Q. 8. Answer the following question in detail (Any ONE) [8]
(1) What is Marketing Mix? Explain 7 Ps of Marketing Mix.
Meaning: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market. It is a set of marketing tools.
The 7 Ps of Marketing Mix (Extended Mix for Services):
- Product: The goods or services offered to the customer to satisfy a need. It includes design, features, quality, and packaging.
- Price: The amount of money customers pay to obtain the product. It must be competitive and affordable while covering costs.
- Place: The distribution channels used to make the product available to the customer at the right time and location.
- Promotion: Activities used to communicate the product's features to the target audience, such as advertising, sales promotion, and personal selling.
- People: All people involved in the service delivery (employees, management, and customers). Skilled staff is crucial for service businesses.
- Process: The procedures, mechanisms, and flow of activities by which the service is delivered (e.g., the ordering process in a restaurant).
- Physical Evidence: The environment in which the service is delivered and any tangible goods that facilitate the performance (e.g., ambiance of a hotel, tickets, brochures).
(2) What is Bank? Explain in detail primary functions of commercial banks.
Meaning: A Bank is a financial institution that deals with money and credit. It accepts deposits from the public and grants loans to those in need.
Primary Functions of Commercial Banks:
A. Accepting Deposits: This is the main function.
- Demand Deposits:
- Current Account: Opened by businessmen, unlimited transactions, no interest.
- Savings Account: For general public to encourage saving, limited withdrawals, low interest.
- Time Deposits:
- Fixed Deposit (FD): Money deposited for a fixed period, higher interest rate.
- Recurring Deposit (RD): Fixed amount deposited monthly for a fixed period.
B. Granting Loans and Advances:
- Loans:
- Short/Medium/Long term loans: Given for specific periods (1 year to 5+ years).
- Advances (Short term):
- Cash Credit: Overdraft facility against security.
- Overdraft: Allowed to current account holders to withdraw more than the balance.
- Discounting of Bills: Bank pays the bill amount before due date after deducting discount charges.