7. Name the marketing function which is concerned with informing the customers about the
firm’s products. [1]
Ans. Promotion
8. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given
on the label were not legible. He complained about it to the company. The company sent a
written apology stating that they will make sure that existing packets are withdrawn from the
market and new packets with legible labels are soon made available.
State the consumer right which Manuj exercised. [1]
Ans. Right to be heard
9. Explain any three points of importance of planning. [3]
Ans. Three features of planning are:
1. Planning focuses on achieving objectives: Process of planning beings with setting of
general and specific goals for the organisation.
2. Planning is a primary function of management: Planning gives directions for actions
and lays down the framework regarding how work is to be done.
3. Planning is a mental exercise: Planning requires foresight, intelligence, ability to analyse
the given situation or further possibilities to determine the best cause of action to be
taken.
10. Mr. Shubhendu Bose is the owner of ‘Bikmac Enterprises’ carrying on the business of
manufacturing various kinds of biscuits. There was a lot of discontentment in the organisation
and the targets were not being met. He asked his son, Naval, who had recently completed his
MBA, to find out the reason.
Naval found that all decision making of the enterprise were in the hands of his father. His father
didn’t believe in his employees. As a result both the employer and the employees were not able
to understand each others massages in the same sense. Thus, the employees were not happy
and targets were not met.
(a) Identify any two communication barriers because of which Bikmac Enterprises was not
able to achieve its target.
(b) State one more barrier each of the types identified in (a) above.
Ans. (a) Two communication barriers because of which Bikmac enterprises was not able to achieve
its target are:
(i) Psychological Barriers: Distrust
(ii) Personal Barriers: Lack of confidence of superior on his subordinates.
(b) Fear of Challenge to authority: If a superior has a fear, that sharing of specific
information with his / her authority adversely then he / she may withhold or suppress
such information
11. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human Resource
Manager or ‘Senor Enterprises Ltd.’ decided to leave the company.
The Chief Executive Officer of the company called Jyoti the Human Resource Manager and
requested her to fill up the vacancies before leaving the organisation. Informing that her
subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti suggested that if
she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer
agreed for the same. Miss Alka Pandit contacted ‘Keith Recruiters’ who advertised for the post
of marketing head for ‘Senor Enterprises Ltd.’ they were able to recruit a suitable candidate for
the company.
Raman’s vacancy was filled up by screening the database of unsolicited applications lying in
the office.
(a) Name the internal / external sources of recruitment used by ‘Senor Enterprises Ltd.’ to
fill up the above stated vacancies.
(b) Also state any one merit of each of the above identified source of recruitment. [3]
Ans. In the question Jyoti, HR Manager of Senor Enterprises Ltd. filled the vacancies by internal
source of recruitment i.e., by “promotion’.
Promotion: Involves filling higher positions by promoting employees from lower jobs.
It motivates employees and provides job satisfaction.
In the case Ashish company used external source of recruitment by:
Placement Agencies and management consultants: Placement companies are the private
bodies or professional agencies which provide details of candidates with desirable profiles to
their clients to fill in the vacant positions.
In case of Raman company used ‘casual callers’ as a source of recruitment.
Advantages
1. Internal Source:
Motivate Employees for better performances: Company policy of filling higher positions
by promoting people within the organisation motivates employees to improve their
performance and augment their knowledge and skills to prepare themselves for higher
positions.
2. External Source:
Fresh talent: The external sources facilitate organisations to appoint people with fresh
talent, newer ideas and experience from different fields. Employees coming from outside
world infuse new blood in the organisation, introduce newer or better means of doing
things resulting in better performance.
12. Mr. Sanjay Nehra was the Chairman of ‘Taran Bank.’ The bank was earning good profits.
Shareholders were happy as the bank was paying regular dividends. The market price of their
shares was also steadily rising. The bank was about to announce taking over ‘Vena Bank.’ Mr
Sanjay Nehra knew that the share price of ‘Taran Bank’ would rise on this announcement.
Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his
rich friends Sudhir and asked him to invest ` 5 crores in shares of his bank promising him the
capital gains.
As expected the share prices went up by 40% and the market price of Sudhir’s shares was now
` 7 crores. He earned a profits of ` 2 crores. He gave ` 1 crore to Mr. Sanjay Nehra and kept ` 1
crore with himself. On regular inspection and by conducting enquiries of the brokers involved,
Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI
imposed a heavy penalty on Mr. Sanjay Nehra.
By quoting the lines from the above para identify and state any two functions that were
performed by SEBI in the above case. [3]
Ans. The two functions that were performed by SEBI in the given case are:
1. Regulatory function:
Regulatory function of SEBI includes:
– Registration of brokers, sub-brokers and other intermediaries in the market.
– Prohibition of fraudulent and unfair trade practices.
– Controlling insider trading and takeover bids and imposing penalties for such
practices.
2. Protective functions
SEBI also protects the interest of investors by:
– Prohibition of fraudulent and unfair trade practices like price rigging, misleading
information while issuing new securities etc.
– Controlling insider trading and imposing penalties do discourage such practices.
– Undertaking steps to educate and protect the investor.
firm’s products. [1]
Ans. Promotion
8. Manuj bought a packet of chips from a local shopkeeper and found that the ingredients given
on the label were not legible. He complained about it to the company. The company sent a
written apology stating that they will make sure that existing packets are withdrawn from the
market and new packets with legible labels are soon made available.
State the consumer right which Manuj exercised. [1]
Ans. Right to be heard
9. Explain any three points of importance of planning. [3]
Ans. Three features of planning are:
1. Planning focuses on achieving objectives: Process of planning beings with setting of
general and specific goals for the organisation.
2. Planning is a primary function of management: Planning gives directions for actions
and lays down the framework regarding how work is to be done.
3. Planning is a mental exercise: Planning requires foresight, intelligence, ability to analyse
the given situation or further possibilities to determine the best cause of action to be
taken.
10. Mr. Shubhendu Bose is the owner of ‘Bikmac Enterprises’ carrying on the business of
manufacturing various kinds of biscuits. There was a lot of discontentment in the organisation
and the targets were not being met. He asked his son, Naval, who had recently completed his
MBA, to find out the reason.
Naval found that all decision making of the enterprise were in the hands of his father. His father
didn’t believe in his employees. As a result both the employer and the employees were not able
to understand each others massages in the same sense. Thus, the employees were not happy
and targets were not met.
(a) Identify any two communication barriers because of which Bikmac Enterprises was not
able to achieve its target.
(b) State one more barrier each of the types identified in (a) above.
Ans. (a) Two communication barriers because of which Bikmac enterprises was not able to achieve
its target are:
(i) Psychological Barriers: Distrust
(ii) Personal Barriers: Lack of confidence of superior on his subordinates.
(b) Fear of Challenge to authority: If a superior has a fear, that sharing of specific
information with his / her authority adversely then he / she may withhold or suppress
such information
11. Ashish, the Marketing Head, Raman, the Assistant Manager and Jyoti, the Human Resource
Manager or ‘Senor Enterprises Ltd.’ decided to leave the company.
The Chief Executive Officer of the company called Jyoti the Human Resource Manager and
requested her to fill up the vacancies before leaving the organisation. Informing that her
subordinate Miss Alka Pandit was very competent and trustworthy, Jyoti suggested that if
she could be moved up in the hierarchy, she would do the needful. The Chief Executive Officer
agreed for the same. Miss Alka Pandit contacted ‘Keith Recruiters’ who advertised for the post
of marketing head for ‘Senor Enterprises Ltd.’ they were able to recruit a suitable candidate for
the company.
Raman’s vacancy was filled up by screening the database of unsolicited applications lying in
the office.
(a) Name the internal / external sources of recruitment used by ‘Senor Enterprises Ltd.’ to
fill up the above stated vacancies.
(b) Also state any one merit of each of the above identified source of recruitment. [3]
Ans. In the question Jyoti, HR Manager of Senor Enterprises Ltd. filled the vacancies by internal
source of recruitment i.e., by “promotion’.
Promotion: Involves filling higher positions by promoting employees from lower jobs.
It motivates employees and provides job satisfaction.
In the case Ashish company used external source of recruitment by:
Placement Agencies and management consultants: Placement companies are the private
bodies or professional agencies which provide details of candidates with desirable profiles to
their clients to fill in the vacant positions.
In case of Raman company used ‘casual callers’ as a source of recruitment.
Advantages
1. Internal Source:
Motivate Employees for better performances: Company policy of filling higher positions
by promoting people within the organisation motivates employees to improve their
performance and augment their knowledge and skills to prepare themselves for higher
positions.
2. External Source:
Fresh talent: The external sources facilitate organisations to appoint people with fresh
talent, newer ideas and experience from different fields. Employees coming from outside
world infuse new blood in the organisation, introduce newer or better means of doing
things resulting in better performance.
12. Mr. Sanjay Nehra was the Chairman of ‘Taran Bank.’ The bank was earning good profits.
Shareholders were happy as the bank was paying regular dividends. The market price of their
shares was also steadily rising. The bank was about to announce taking over ‘Vena Bank.’ Mr
Sanjay Nehra knew that the share price of ‘Taran Bank’ would rise on this announcement.
Being a part of the bank, he was not allowed to buy shares of the bank. He called one of his
rich friends Sudhir and asked him to invest ` 5 crores in shares of his bank promising him the
capital gains.
As expected the share prices went up by 40% and the market price of Sudhir’s shares was now
` 7 crores. He earned a profits of ` 2 crores. He gave ` 1 crore to Mr. Sanjay Nehra and kept ` 1
crore with himself. On regular inspection and by conducting enquiries of the brokers involved,
Securities and Exchange Board of India (SEBI) was able to detect this irregularity. The SEBI
imposed a heavy penalty on Mr. Sanjay Nehra.
By quoting the lines from the above para identify and state any two functions that were
performed by SEBI in the above case. [3]
Ans. The two functions that were performed by SEBI in the given case are:
1. Regulatory function:
Regulatory function of SEBI includes:
– Registration of brokers, sub-brokers and other intermediaries in the market.
– Prohibition of fraudulent and unfair trade practices.
– Controlling insider trading and takeover bids and imposing penalties for such
practices.
2. Protective functions
SEBI also protects the interest of investors by:
– Prohibition of fraudulent and unfair trade practices like price rigging, misleading
information while issuing new securities etc.
– Controlling insider trading and imposing penalties do discourage such practices.
– Undertaking steps to educate and protect the investor.