GRADE XII - BUSINESS STUDIES (054)

SUMMER ASSIGNMENT WORKSHEET (Part - II)

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Chapter 9 - Financial Management

1. Temptations' is a food joint in Imperial Mall in Bengaluru. It is becoming popular among 1

students and working people due to healthy, on-the-go dishes on its menu like 'Paneer
Wrap', 'Chickpeas Salad', 'Grilled Sandwiches', etc. It has now decided to open two new
branches in other parts of Bengaluru. Which financial decision has been discussed in the
above case?

(a) Long-term investment decision (b) Short-term investment decision

(c) Dividend decision (d) Financing decision

2. Assertion (A) : During the boom period, it is difficult to raise funds through equity. 1
Reason (R) : When the stock market is rising, more people invest in equity shares.

(a) Both (A) and (R) are true and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true but (R) is not the correct explanation of (A).
(c) Assertion (A) is true but Reason (R) is false.
(d) Assertion (A) is false but Reason (R) is true.

3. Indian equity markets are going through a phase of boom. There is a huge growth 3
potential for innovative technologies. This has resulted in lots of new ventures vying for a
market share and old enterprises trying to keep up with the pace with which changes are
taking place in the economy. This technological innovation has helped even smaller
businesses to compete on a global scale.
Identify and explain the three factors highlighted above which affect the working capital
requirements of such enterprises.

4. Pixon Technologies is one of the leading information technology outsourcing services 6

providers in India. The company provides business consultancy and outsourcing services
to its clients. Over the past five years, the company has been paying dividends at a high
rate to its shareholders. However, this year, although the earnings of the company are
high, its liquidity position is not so good. Moreover, the company plans to undertake new
ventures in order to expand its business.
(a) State any three reasons because of which you think Pixon Technologies has been
paying dividends at a high rate to its shareholders over the past five years.
(b) Comment upon the likely dividend policy of the company this year by stating any two
reasons in support of your answer.

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 Chapter 10 - Financial Markets

5. SEBI recently called for information and issued a show cause notice to NSE and its 3
officials seeking explanation on the Preferential Access allegations at the exchange’s
co-location facility. State the function that SEBI performed by doing so and also bring out
any two other functions which come under the same.

6. Differentiate between capital market and money market on the following basis :- 4
(a) instruments; (b) duration; (c) liquidity; (d) expected return;

7. Gurlain wants to buy shares of Akbar Enterprises, through her broker Lokesh Ghar. She 6
has a Demat Account and a bank account for cash transactions in the securities market.
Discuss the subsequent steps involved in the screen-based trading for buying and selling
of securities in this case.

Chapter 11 - Marketing Management

8. Read the text given below and answer the questions (i-iv) based on it.
The General Manager of Jain Udyog Limited Mr Ashok Jain called a meeting of the
concerned officials to fix the price of different products of the company. In the meeting it
was unanimously decided that the company would make an attempt at obtaining market
share leadership. In this context, it was also decided that this could be possible only when
the existing prices were reduced a little. Present in the meeting, one of the senior
members said that their products were such that if their prices were changed a little, there
would be a big change in their demand and that this was not the situation to fix high
prices, so they would have to keep the prices low. Another member, laid stress on
providing the facility of ‘After-Sale-Service', even though the prices may be increased a
little. Last of all, the Chairperson of the meeting, Mr Jain also gave a suggestion. He said
that along with other things, they would have to keep in mind the prices of their
competitors also.

(i) Identify the factor of fixation of prices with which is concerned the obtaining of
market share leadership.
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(a) Utility and demand (b) Extent of competition in the market
(c) Pricing objectives (d) Marketing methods used

(ii) 'Present in the meeting, one of the senior members said that their products were such 1
that if a little change was made in their prices, there would be a big change in their
demand." Identify the factor of price fixation with which this statement is concerned.
(a) Utility and demand (b) Extent of competition in the market
(c) Pricing objectives (d) Marketing methods used

(iii) Identify the factor of price fixation with which is concerned the provision of facility
of ‘After-Sale-Service'. 1

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 (a) Utility and demand (b) Extent of competition in the market
(c) Pricing objectives (d) Marketing methods used

(iv) Identify the factor of price fixation with which is concerned the suggestion of Mr
Jain, the Chairperson of the meeting. 1
(a) Utility and demand (b) Extent of competition in the market
(c) Pricing objectives (d) Marketing methods used

9. 'My Bakery', a biscuit manufacturing company, launched biscuits with different flavours 3
based on quality and features like 'Crunchy biscuits', 'Sweet potato', 'Coffee Jolly' etc. The
labels on the package of the biscuits are with pictures and different colours indicating and
specifying the flavours of the biscuits and their contents. Identify the two functions of the
product mix discussed above.

10. 'Energy Drinks India Ltd.' have scanned a profitable opportunity for marketing of soft 6
drinks with Indian Traditional Flavour. The company wants to market its products in
India and in neighbouring countries. A Board meeting of the company was held on
14.12.2015 wherein the marketing manager was asked to give a presentation to develop
this market offering. The marketing manager chooses a combination of variables to
prepare its market offering. He used a set of marketing tools that the firm will use to
pursue its marketing objectives in the target market.
(a) Name and state the concept of marketing used by the marketing manager for creating
its market offering.
(b) Also, state the various elements of this concept.

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