Business Studies Question No 13 to 18

13. State any three functions performed by non-governmental organisations for consumer
protection.                                                                                                                         [3]
Ans. Three functions performed by non-governmental organisations for consumer protection are 
explained below:
1. Awareness: Educating the general public about consumer rights through training 
programmer, seminars and workshops.
2. Defending Consumers: Filing complaints in appropriate consumer courts on behalf of 
the consumers.
3. Legal assistance: Providing legal assistance in the form of legal advice, aid, etc. to 
consumers seeking legal remedy.


14. Explain any four points of importance of management. [4]
Ans. Management is a very crucial part of every organisation and its importance can be described 
with the help of the following points:
(i) Helps in achieving group goals: Positive direction of a manager unites the efforts of 
individuals and helps to achieve the targets effectively and efficiently.
 (ii)  Increase efficiency: Effective process of management maximizes the productivity and 
minimize the cost.
 Example: The purchase manager of Sohan stationery does stock taking every week. It 
helps him to place orders well in advance. Thus he may save money on delivery cost and 
maintaining stock levels.
(iii) Helps in the development of society: While fulfilling the aim of greater profits and bigger 
market share, it also provides goods quality products at reasonable prices. Business 
also contributes to the growth and development of the nation by creating employment 
opportunities.
Example: Azim Premji chairman of Wipro runs Azim Premji foundation a NPO with an 
aim to provide quality and equity of education in India.
(iv) Creates a dynamic organisation: Being dynamic is one of the important functions of 
management. With the changing business environment, management remains its goals, 
changes its business strategies and adopts new technologies.
 Example: Ultra-fast, a Pvt. Ltd. company introduced mobile chargers. Soon they realized 
that there was tough competition in the market. The production head Mr. Kumar made 
changes in the basic design and offered them in the form of soft toys to attract young girls 
and boys. The sales team focused on selling the products to young generation in no time. 

15. A recent rate cut in the interest on loans announced by the Banks encouraged Amit, a science
student of Progressive School to take a loan from State Bank of India to experiment and develop
cars to be powered by fuel produced from garbage. He developed such a car and exhibited it
in the Science Fair organised by Directorate of Education. He was awarded first prize for his
invention.
Identify and explain the dimensions of business environment discussed in the above case. [4]

Ans. The dimensions of business environment which are discussed in the given case are:
1. Economic Environment
2. Technological Environment
Economic Environment: It refers to the nature of economy (capitalist, socialist or mixed), 
economic policies of the government, markets for material, labour, capital, etc., business 
firms and institutions such as banks, insurance companies, transport companies, etc., 
and level of income of the people.
The economic environment of a firm also includes all markets in which it buys and sells 
raises funds, gets labour, etc.
 Technological Environment: It refer to the state of technology in the areas of 
manufacturing, mining construction materials handling, transportation, etc. and also 
information technology. Advancement in technology leads to greater productivity, higher 
quality and lower cost of production for the business. However, introduction of advanced 
technology requires higher capital investment.


16. ‘Steelo Ltd.’ decided to set-up its steel manufacturing factory in the backward area of Orissa
where very less job opportunities were available. People of that area welcomed this effort of
‘Steelo Ltd.’ To attract people to work in its factory it also decided to provide many other
facilities like school, hospital, market etc. in the factory premises.
‘Steelo Ltd.’ started earning huge profits. Another competing company asked its production
manager ‘Aslam’ to investigate the reasons of earning huge profits by ‘Steelo Ltd.’
Aslam found that in both the companies there was systematic co-ordination among the various
activities to achieve organisational goals. Every employee knew who was responsible and
accountable to whom. The only difference was that in his organisation communication took
place only through the scalar chain whereas ‘Steelo Ltd.’ was allowing flow of communication
in all the directions as per the requirement which lead to faster spread of information as well
as quick feedback.
(a) Identify the type of organisation which permits ‘Steelo Ltd.’ they flow of communication in
all the directions.
(b) State another advantage of the type of organisation identified in (a) above.
(c) State any two values which ‘Steelo Ltd.’ wanted to communicate to the society. [4]

Ans. (a) Informal organization
(b) Advantage of informal organisation:
(i) It leads to faster spread of information as well as quick feedback since fixed lines of 
communication are not followed.
(ii) It helps to fulfil the social needs of members.
(c) Values communicate to the society:
(i) Social welfare (ii) Employment opportunity
(iii) Promotion backward area
(iv) Optimum utilisation of natural resources

17. ‘Alfa Ltd.’ was dealing in renewable energy. To get the business, the team leader and his team
used to travel to different states to give presentation to their clients. As per the policy of the
company, the leader used to travel by air, whereas his team travelled by road / train. It was not
only time consuming but also at time forced female team members to travel alone.
As a result, the subordinates were not acting in a desired manner to achieve organisational
goals. The CEO came to know about it. He called the team leader, discussed the matter with
him and decided to change the travel policy of the company. It was decided that all the members
including the leader would travel together in future and would usefully utilise the travelling
time in discussion with the subordinates about presentation to be given to the clients. This
made a positive impact and every member of the team started acting in a manner as desired by
the team leader.
State the features of the element of the function of management used by the CEO. [4]

Ans. Motivation means inspiring the subordinates with a zeal to work for the accomplishment 
of organisational objectives. The manager should motivate the subordinates to work for the 
achievement of organisational goals. 
Features of motivation:
(i) Motivation is an internal feeling: The urge, desires, aspirations or needs of people, 
which are internal, influence human behaviour.
(ii) Motivation produces goal-directed behaviour: For example, if the employee is interested 
in promotion, it helps to produce a behaviour to improve performance.
(iii) Motivation can be either position or negative: Positive motivation provides positive 
rewards like increase in pay, promotion, recognition, etc. Negative motivation uses 
negative means like punishment, stopping increments, threatening, etc.


18. A company was marketing ‘water purifiers’ which were very popular due to their quality and
after sales services provided to the customers. The company was a leading company in the
market and earning huge profits. Because of huge profits the company ignored the after sales
services. As a result its relations with the customers got spoiled and the image of the company
was damaged in the public. Top management became concerned when the profits for the
current quarter fell steeply. On analysis it was revealed that ignoring the after sales services
was its reason. Therefore the company took all possible measures to protect and promote its
favourable image in the eyes of the public. As a result the goodwill of the company improved in
the society.
(a) Name the state the communication tool used by the marketer in the above case to improve
its image.
(b) Also explain role of the tool as identified in part (a). [4]

Ans. (a) Public Relation: 
(b) Role of Public Relation:
 1. Press relations: PR department is in contact with the media to present the 
organisation’s picture in a positive manner in the press.
 2. Product publicity: PR department management the sponsoring of sports and 
cultural events to create publicity of the new products to be launched.
3. Building corporate image that affects favourably on its products e.g., upkeep of 
parks and gardens, sponsoring sports and cultural events.
4. Helps in facing adverse publicity.
5. Counselling the top management to contribute money and time to certain causes 

like environment children’s right, education, etc.