Business Studies Question No 1 to 6

* Please check that this question paper contains 11 printed pages.
* Code number given on the right hand side of the question paper should be written on the title
page of the answer-book by the candidate.
* Please check that this question paper contains 25 questions.
* Please write down the Serial Number of the questions before attempting it.
* 15 minutes time has been allotted to read this question paper. The question paper will be
distributed at 10.15 a.m. From 10.15 a.m. to 10.30 a.m., the student will read the question
paper only and will not write any answer on the answer script during this period.

                                             Business Studies (Core)
[Time allowed : 3 hours]                                                   [Maximum marks : 80]
General Instructions:
(i) All questions are compulsory.
(ii) You may attempt any section at a time.
(iii) All questions of that particular section must be attempted in the correct order.

1. ‘Management is the process of getting things done.’ State the meaning of
the term ‘process’used in this statement. [1]
Ans. The “process” in this definition, means the primary functions or activities 
that a manager performs to get things done.


2. Give the meaning of ‘authority’ as an element of delegation.                                                 [1]
Ans. It refer to the right of an employee (individual) to command his subordinated 
and to take action within the scope of this / her position.


3. Name the type of ‘organisational structure’ which promotes efficiency in utilisation
of manpower. [1]
Ans. Functional structure.


4. State the role of ‘gang boss’ in ‘functional foremanship.’                                                      [1]
Ans. Keeping machines and tools etc. ready for operation by workers.


5. The size of assets, the profitability and competitiveness are affected by one
of the financial decisions. Name and state the decision.                                                            [1]
Ans. Investment decision


6. Radhika and Vani who are young fashion designers left their job with a famous fashion designer
chain to set-up a company ‘Fashionate Pvt. Ltd.’ They decided to run a boutique during the
day and coaching classes for entrance examination of National Institute of Fashion Designing
in the evening. For the coaching centre they hired the first floor of a nearby building. Their
major expenses was money spent on photocopying of note4s for their students. They thought
of buying a photocopier knowing fully that their scale of operations was not sufficient to make
full use of the photocopier.
In the basement of the building of ‘Fashionate Pvt. Ltd.’ Praveen and Ramesh were carrying on
a printing and stationery business in the name of ‘New Prints Pvt. Ltd.’ Radhika approached
Praveen with the proposal to buy a photocopier jointly which could be used by both of them
without making separate investment, Praveen agreed to this.
Identify the factor affecting fixed capital requirements of ‘Fashionate Pvt. Ltd.’                                      [1]
Ans. Level of collaboration