Archive for the ‘Business Studies’ Category

Business Studies-1997-Set I

Q 1 What is meant by management? (2 marks)
Ans. 1 Management may be defined as creating the internal environment of an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals.

Q 2 Explain, in brief, the principle of parity of authority and responsibility. (2 marks)
Ans. 2 Authority is the right to give orders to the subordinate, take decision on specified matters, use resources of the organisation and guide and regulate the behaviours of the subordinates.

Responsibility means the duty which the subordinate is expected to perform by virtue of his position in the organisation. The principle states that authority and responsibility should bear a logical relation to each other. Sufficient authority should be delegated to a subordinate to enable him to discharge his duties. If authority is less, the subordinate will not be able to perform his duties well. If he is given excessive authority he may misuse.

Authority ½, Responsibility ½ , Parity 1 (1/2 +1/2+1=2 marks)

Q 3 Give two functions of a supervisor. (2 marks)
Ans. 3 Any Two functions :
1. Planning the work.
2. Issuing orders.
3. Providing guidance or leadership.
4. Motivation.
5. Preserving Records.
6. Controlling output.
7. Grievance handling or liaison between management and workers.
8. Introducing new work methods.
9. Enforcing safety.
10. Linking pin.
11. Scheduling.
12. Reporting. (1×2=2)

Q 4 Explain briefly the meaning of “organisation structure”.
(3 marks)

Ans. 4 The process of organising leads to the creation of the structure of an organisation. The term organisation structure may be defined as a system of job positions, the roles assigned to them and the authority relationships among the various positions. The structure provides basis or frame work for managers and other employees for performing their respective functions. The structure also facilitates work flow in the organisation. If a chart is prepared, the organisational structure looks like a pyramid with a narrow top and broad bottom. (3 Marks)

Business Studies-1997-Set II

Q 1 What is meant by management? (2 marks)
Ans. 1 Management may be defined as creating the internal environment of an enterprise where individuals working together in groups can perform efficiently and effectively towards the attainment of group goals.
Note : If the student has given a definition other than this, full credit may be given. (2 marks)

Q 2 Explain, in brief, the principle of Esprit de Corps. (2 marks)
Ans. 2 Principle of Esprit de Corps :
It refers to team spirit that is harmony in group work and mutual understanding among workers. Managers must take steps to develop a sense of belonging among the members of a work group. If there is team spirit, everyone comes forward to help others. It helps in developing an atmosphere of mutual trust and understanding. People them enjoy working in an organisation. It inspires them to work harder and improve the quality of work. When esprit de corps is present, the need to use penalties for default is minimised. (2 marks)

Q 3 Give any two elements of directing. (3 Marks)
Ans. 3 Any two of the following elements of direction :
(i) Leadership
(ii) Communication
(iii) Motivation
(iv) Supervision (1×2 marks)

Q 4 Explain briefly the steps in the process of organising. (3 Marks)
Ans. 4 The steps in the process of organising with brief explanation :
(i) Division of work.
(ii) Grouping jobs and departmentation.
(iii) Establishing authority relationship. (1×3 marks)

Q 5 Give any three main features of the line organisation. (4 Marks)
Ans. 5 Any three of the following main features of line organisation :
(i) It is simple type of organisation.
(ii) Only one form of authority, viz.; line authority exists in this form of organisation.
(iii) The authority relationships are clearly established.
(iv) All managers in a line organisation have full authority to decide things and to act with respect to their respective functions.
(v) In a line organisation departments are created for basic activities each of which is self-contained as the related services are also part of the activities of the departmental head.
(vi) Specialised, supportive activities are not specifically recognised and distinguished in a line organisation. (1×3 marks)

Business Studies-1999-Set II

Q 1 Give any two points of distinction between administration and management. (1*2=2 marks)
Ans. 1 Any two of the following distinctions :

1. Concerned with formulation of objectives.
2. Thinking function (Policy and decision-making).
3. More important at higher level.
4. Applicable more to govt. and non-business.

1.Concerned with getting work done with others.
2.Executive function.
3.More important at middle and lower levels
4.More applicable to business enterprises.

Q 2 What is meant by motion study? (2 marks)
Ans. 2 Study of the movements of body/machine required to perform a job.

Q 3 Define ‘direction’, as a function of management. (2 marks)
Ans. 3 Directing as a function of management is concerned with instructing, guiding and inspiring people in the organisation to achieve its objectives. It includes the process of motivating the subordinates and providing leadership.

Q 4 Why is line and staff organisation considered better than line organisation? Give any three reasons. (1*3=3 marks)
Ans. 4 (a) Line manager’s burden is shared.
(b) More specialisation and division of labour.
(c) Line manager gets advisory and supportive services.

Q 5 Distinguish between authority and responsibility on the basis of :
(i) Delegation,
(ii) Origin, and
(iii) Direction of flow. (1*3=3 marks)

Ans. 5




Direction of flow


Can be delegated.

Arises from superiors.

Flows downwards.


Cannot be delegated.

Arises out of authority.

Moves upwards.