Business studies class XII Quiz-14

'Vanguard Inc.', a company manufacturing footwear for men, women and children has been earning consistent profits for the last many years. It has a democratic style of working. Workers are encouraged to develop and carry out plans for improvement in the organisation. Varun who is working in the production department gave a suggestion which resulted in 10% reduction in the cost of production of shoes. He was rewarded for his suggestion.  Identify the principle of management followed by 'Vanguard Inc.' in the above case:

• Esprit De Corps

• Subordination of Individual Interest to General Interest

• Initiative

• Equity

'Child-O' is a garment manufacturing company which makes clothes with unique and stylish designs for children. Naisha was working as the Human Resource Manager with 'Child-O'. Inspite of good pay and many other benefits offered, the company is facing problem of high turnover of its employees. Naisha tried to find out the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out the reason. It was found that other organisations were giving more autonomy and authority to their employees which made them feel that their jobs were important. This was attracting the employees of 'Child-O' to other organisations. The incentive which attracted the employees of 'Child-O' to other organisations is

• Employee recognition programmes

• Employee participation

• Career Advancement Opportunity

• Employee empowerment

Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment'. Thus it is relatively easier to understand the environment in parts but difficult to grasp in its totality. Identify the feature of business environment highlighted above:

• Uncertainty

• Complexity

• Relativity

• Dynamic nature

Naman and Vineet were childhood friends and both were working in 'Sunshine Crockery.' Naman was working as the Chief Executive Officer while Vineet was the Production Manager. They would generally discuss company related issues over lunch-time or while travelling together. The company had recently received an order for supply of 5,000 dinner sets from Shaurya Hotel. It was an unexpected order and would increase the revenue of the company. This order was communicated by Naman to Vineet over intercom. Vineet executed the order within the given time period. For this, he was appreciated by Naman. The type of communication used by Naman to communicate the order to Vineet was:

• Formal Communication

• Informal Communication

• Online Communication

• Visual Communication

Statement-I: The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold. 

Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. Choose the correct option from the following:

• Statement-I is true and Statement-II is false.

• Statement-II is true and Statement-I is false.

• Both the Statements are true.

• Both the Statements are false.

As per Plastic Waste Management Rule 2022, single use plastic items were prohibited in Delhi from 1st July, 2022. The dimension of business environment referred to here is:

• Economic environment

• Legal environment

• Technological environment

• Political environment

Statement-I: Motivation can be either positive or negative.

Statement-II: Motivation is a complex process as the individuals are heterogeneous in their expectations, perceptions and reactions. Choose the correct option from the following:

• Statement-I is true and Statement-II is false.

• Statement-II is true and Statement-I is false.

• Both the Statements are true.

• Both the Statements are false.

Navya went to a supermarket for grocery shopping. She bought one kg of bajra flour from the supermarket. On reaching home when she opened the packet she found worms inside it. She was disappointed and told her son about the same. Her son asked her to check the label. When she checked the label of the packet, she found that bajra flour was stale and beyond the expiry date. She approached the sales-person at the supermarket who replaced the bajra flour immediately. When she thanked the sales-person, she was told that it was the policy of the supermarket to satisfy the customers. He further told that satisfied customers not only lead to repeat sales but they also provide good feedback to prospective customers which helps in increasing the customer base of business.  Identify the point of importance of consumer protection from the point of view of the supermarket which is helping them to increase the customer base:

• Long term interest of the business

• Moral justification

• Social responsibility

• Government intervention

Which of the following is not an element of social environment?

• Composition of family

• Consumption habits

• Rates of saving and investment

• Educational system and literacy rates

Assertion (A): Availability of leasing facilities may reduce the funds required to be invested in fixed assets thereby reducing the fixed capital requirements.

Reason (R): When an asset is taken on lease, the firm pays lease rentals to use it and avoids to invest huge sums required to purchase it.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is true but Reason (R) is false.

• Assertion (A) is false but Reason (R) is true.