Sample Question Paper Business Studies 12" (code 054) Genera Instruct 1. This question paper contains 34 questions. All questions are compulsory. 2, Marks are indicated against each question, 3. Answers should be brief and to the point. 4. Answers to the questions carrying 3 marks may be from 50 to 75 words. 5, Answers to the questions carrying 4 marks may be in about 150 words, 6. Answers to the questions carrying 6 marks may be in about 200 words. 7. Attempt all parts of the questions together. Time:3 Hrs. Max. Marks : 80 1, The earlier approach of caveat emptor which ‘means ‘Let the buyer beware’, has now been ‘changed to o (@) caveat venditor _(b) caveat marketer (©) caveat buyer (a) None of these 2, BISis a seal certified by Bureau of Indian Standards that the goods confirm to the prescribed ...... standards, o (@) quantity () quality (Ojenviconmental (4) Both (a) and () 3. Assertion (A) Financial market reduces the cost of transactions. Reason (R) Financial market helps in saving time, effort and money of buyers by providing, them valuable information. 0 Alternatives (@) 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 (a) Assertion (A) is false, but Reason (R) is true 4, Harish bought a pain relieving ointment after seeing it being displayed in the chemists shop. The ointment tube is packed in a cardboard box. ‘The tubes were received by the chemist from the wholesaler in corrugated boxes containing 30 units. Identify the level of packaging involved in the above mentioned case. © (@) Primary packaging, (©) Secondary packaging (©) Transportation packaging (4) All of the above .. Which of the following statements are incorrect? o (a) Organising clearly defines the authority and responsibility of each job (&) Responsibility can be delegated (©) Organising minimises duplication of efforts (4) Organising and planning go hand-in-hand . In an organisation, the functional head and marketing director directs the subordinates throughout the organisation in his particular area. This means that subordinates receive orders from several specialists or managers ‘working above them. Identify the type of organisation discussed above. 0 () Divisional organisation (©) Functional organisation (© Staff organisation (@)Matrix organisationBusiness Studies Class 12 T. Assertion (A) Depository holds securities inelectronic form. Reason (R) Depository is formed for the purpose of free transferability of securities with speed, accuracy and security. o Alternatives {@) Both Assertion (A) and Reason (R) are true and Reason (R) isthe correct explanation of Assertion (A) (©) Both Assertion (A) and Reason (R) are true, but Reason (R) isnot the eorrect explanation of Assertion (A) (6) Assertion (A) is true, but Reason (R) is false (Assertion (A) is false, but Reason (R) is true 8. Anemployee shared the information about the future rise in the share prices of his company with one of his friend and asked him to buy these stocks. For this, he also demanded a share in the profits. Identify what will this act of his called a) (a) forgery (b) embezzlement (C)insider trading (4) None of these 9. Raghvendra, a successful businessman in the paper industry, during his recent visit to his friend’s place in Mysore, was fascinated by the exclusive variety of incense sticks available there. Hiis friend tells him that Mysore region in Known asa pioneer in the activity of Agarbathi manufacturing because it has a natural reserve of forest products especially sandalwood to provide for the base material used in production. ‘Moreover, the suppliers of other types of raw material needed for production follow a liberal credit policy and the time required to manufacture incense sticks is relatively less. Considering the various factors, Raghvendra decides to venture into this line of business by setting up a ‘manufacturing unit in Mysore, 10... 1. 12. In context of the above case, identify which decision is taken by Raghvendra? «) (@) Financial decision (Investment decision (© Financing decision (€) None of the above refers to finding right person for the right job. a (2) Organising (©) Human resource management (© Staffing (€)None of the above Statement I In order to survive, an ‘organisation must earn enough revenues to cover cost. Statement If Management increases effectiveness by reducing cost and increasing productivity. o Alternatives (@) Statement [is true and Statement Il is false () Statement Tis false and Statement TI true (©) Both the statements are true (@) Both the statements are false ‘Madhuban Oils Ltd. has the largest share ‘of 60% in the market. The company’s policy is to sell only for cash. In 2021, for the first time company’s number ‘one position in the industry has been threatened because other companies started selling oil on credit also. But, the manager of Madhuban Oils Ltd. continued to rely on its previously tried and tested successful plans, which didn’t work because the environment is not static. This led to decline in sales of Madhuban Oils Ltd. The above said case highlights the limitation(s) of planning which led to decline in its sales. Identify such limitation(s) 0 (@) Planning does not guarantee success () Planning may not work in dynamic environment (©) Planning leads to rigidity (2) Both (a) and (b)Sample Question Paper 13. Match the Column I with Column Ion the basis of organising process. o Column I Column It ‘A. Identification and) Identify and divide division of work the total work B. Departmentalistion (i) Allocation of responsibility (ii) Separation of, products Codes AB @ a Gi © @) Gi 14, Lorenz industries is involved in the production of spare parts for trucks and buses, Sharad is working there as a foreman alongwith 20 more workers. The targets are constantly achieved by the foremen. There is orderliness and coordi- nation in the work environment and all the workers are happy and satisfied. At which level of management, Sharad is working? o (@) Top (©) Middle (©) Lower (€) Shop floor 15. What are the key elements involved in the controlling function of management? A. Setting performance standards . Measuring actual performance Determining organisational objectives ). Identification of motivational needs Leading and motivating the team ’. Taking corrective actions Choose the correct alternative from the following, o (@)A,BandF (©B,CandF (©A,Dand E (a) A, Dand F 16. India’s population is expected to grow under 0.5 per cent during 2031-41 due to decline in fertility rate and increase in life expectancy. These changes in India’s demography will also have implications such as the proportion of elementary school going children will witness significant declines, lack of hospital beds and increase in retirement age. melas ‘The related feature of business environment being described in the above lines is o (@) totality of external forces (©) dynamic nature (©) inter-relatedness (@) relativity 17. Identify the method of staffing illustrated in the picture in which Wipro Lid. is taking interview. a (@) Direct recruitment () Placement agencies and management consultants (©) Campus recruitment (4) Employment exchange 18. Which of the following statements is, incorrect? 0 (@) Investment decisions are long-term decisions and are irreversible () Financial planningisablue printof finance (©) Interest paid on debt is not a deductible ‘expense for tax liability (@) Dividends are paid out of profit ater tax 19. Statement I Unity of command means ‘one employee getting orders and instructions from one supervisor. Statement II Functional foremanship is the extension of principle of unity of ‘command, a Alternatives (@) Statement [is true and Statement Ils false () Statement [is false and Statement Tis true (6) Both the statements are true (@) Both the statements are false 20. Yash worked in business development unit of an Edtech start-up. He always achieve the targets on time and recently achieved his sales target one week in advance.Business Studies Class 12 Or 24. ‘This achievement was displayed on the notice-board and the CEO of company awarded a certificate for the best performance to him. Due to his consistent performance, he was promoted to the post of sales manager. He encourages his team to form their own objectives and take decisions. He respects their opinions and support them. He also promotes informal group within the department so that the team members develop a sense of belongingness. What was the leadership style followed by Yash? o (2) Authoritative (6) Democratic (©) Both (a) and (&) (A) Laissez Faire Anita went to a grocery shop to buy some ready-to-eat food products. She wanted to be assured that the packets are of good quality. She also wanted to know the expiry dates of the packets. She took the ‘opinion of a fellow customer and bought the products (i) Instead of asking the fellow customer, what should have Anita checked for quality assurance? o (ii) Also, how could she have checked the expiry date? @ ‘What do you understand by exchange ‘mechanism? ° Explain the societal marketing concept. Explain (i) Benefits of specialisation and (ii) Development of personnel, as importance of organising o What are derivative plans and why they are formulated? With an aim to compete with its competitors, Seerat Ltd. made its annual plan for the year on the assumption that the sales of its products will rise in near future. Seerat Ltd. manufactures 1,000 ens in a week with the help of existing ‘machine. But due to changes in technology, a new machine with low cost and more production was launched in the market 26. 28. of management, ° . What are the responsibilities of a consumer? « . Write a short note on organising, « and the competitors captured the market. Due to this, Seerat Ltd. could not achieve the objectives. Identify and explain the limitation of Seerat Ltd. discussed in the above para which is related to one of the functions Explain the following types of sources capital (i) Fixed capital (ii) Working capital) Explain the following types of securities markets, (Capital market (ii) Money market Define planning and discuss any three limitations of planning “Some learning opportunities are designed and delivered to improve the skills and abilities of employees, whereas some others are designed to help in the ‘growth of individuals in all aspects.” Identify and explain the two concept mentioned above. « Sana is a young professional employed in a multinational company. Her annual package is of £6 lakh. Since she lives with her parents, therefore she is able to save a ‘major part of her earnings. Her friends are constantly advising her to invest in shares. But, she is not aware about the nitty-gritties regarding the functioning of the stock exchange. So, she decided to invest in equity through the primary market, assuming that this will help her to earn stable dividends. But her father, who was a retired bank officer told her that even dividends are not stable as they are affected by several factors. (@ Is Sana’s father right in his assertion? a i) Explain the following as factors affecting ‘dividend decision’. (a) Stability of dividend (b) Legal constraints (6) Access to capital market °Sample Question Paper 30. Ankuris the finance head of a company ‘manufacturing sarees. One day, in the morning while parking his car he had a quarrel with a person on some issue. ‘That person was a criminal and could abuse his family members too. On the same day, a meeting was held in the afternoon by the team of finance experts to ensure that whatever is procured and spent according to the finance and loans available. But Ankur between them. (@) Identify and explain the type of (i) Explain any two such barriers to communication, 31. Glam Ltd. is a lifestyle brand which ‘manufactures garments, shoes and ago. Ithas around 10 stores all over the country. Recently, it got a venture capital brand, It may also enter into cosmetics and perfumes manufacturing in future. Itis thinking of restructuring the organisat- and departments. ‘The CEO plans to appoint a separate divisional head for each of the divisions helps them to grow, ‘The CEO is of the opinion that in such form of organisational structure, divisional heads can easily be held accountable for poor performance of a particular to put the blame on others. ‘This type of structure will also give flexibilty to the divisional head. In this type of organisational structure, any On that day, Ankur was very worried and angry too on the behaviour of that person. could not pay attention to the discussion barriers to communication mentioned, accessories. It was established only 2 years funding of 100 crore. Thus, it now wants to expand its business and become a global ional functions as well as all its divisions i.e. Garments division, shoes division and accessories division. The divisional head gain experience in all the functions which ision and they won't be able further divisions can also be added easily. Or ‘Quoting lines from the above paragraph, explain the type of organisational structure and its advantages. 6 “Understanding the business environment enables a manager to identify opportunities and threats, guiding the decision-making process. Without it, the ‘manager may overlook crucial external factors impacting the organisation.” In light of the above statement, explain how a manager's understanding of the business environment helps the organisation in achieving its objectives. (6) Distinguish between top level, middle level and lower level of management. Briefly explain any three of the following techniques of management given by Taylor (@) Time study (i) Motion study ii) Fatigue study 6 Briefly explain any three of the following principles of management given by Fayol (i) Unity of direction (ii) Equity (iii) Esprit de corps Asa project workin marketing ‘management, the MBA students of IIM thought of preparing apple jam from the apples grown in their school premises and sell it in the school annual fete. They approached the principal who not only appreciated them but also gave his consent for the same. ‘The school decided to donate 50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the school also decided to extend this project by providing employment to ually challenged and disadvantaged sections of society on regular basis. () Explain any two product related decisions which the students had to take ° (i) Suggest any two functions that the ‘abel’ of the jam bottle must perform. @ (iii) State the meaning of brand. aAnswers i# Topper sive ‘My Commitment affirm that Iam reviewing these answers only after Thave solved the Sample Question Paper on my own. ‘My purpose of looking the answers is solely to verify whether my answers were corrector not and to identify my mistakes in case my answers were wrong or Leould not answer that. 1. (@) caveat venditor 2. ( quality 3. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion ay 4, (@ All ofthe above 5. (&) Responsibility cannot be delegated only authority can be delegated. 6. (@) Functional organisation T. (@) Both Assertion (A) and Reason (R) are truc and Reason (R) is the correct explanation of Assertion ry) 8. (¢)insider trading 9. (0) Investment decision 10. (¢ Staffing 11. (@) Management increases efficiency by reducing costs and increasing productivity. 12. (Both(a) and) 13. (Gai) 14, (Lower 15. (@) A, Band F 16. (¢ inter-relatedness 17, (¢) Campus recruitment 1B. (¢ Interest paid on debt is a deductible expense for tax liability 19. (a) Functional foremanship is the extension of Principle of division of work, 20, (6) Democratic 21. (i) Anita should have purchased only standardised goods as they provide quality assurance. For that she should have checked the FPO mark that ensures quality of the product. (i) She should have read the labels carefully so as tohave information about prices, net weight, manufacturing and expiry dates, etc. 22, The process of marketing works through the ‘exchange mechanism. Exchange refers to the process through which two or more parties come together to obtain the desired product or service from someone, offering the same by giving something in return. The individuals (buyers and sellers) obtain what they need and want through the process of exchange. In other words, the process of marketing involves exchange of products and services for money or something, considered valuable by the people (Or The societal marketing concept states that the task of any organisation is to identify the needs and wants ofthe target market and deliver the desired satisfaction in an effective and efficient manner so that the long-term well-being of the consumers and the society is taken care of. Thus, the societal ‘marketing concept is the extension of the marketing, concept as supplemented by the concem for the long-term welfare of the society. Apart from the ‘customer satisfaction, it also pays aitention to the social, ethical and ecological aspects of marketing, (i) Benefits of Specialisation Organising facilitates systematic allocation of work amongst people. ‘Aseach task is repetitively performed by a worker, it helps him to gain experience and achieve specialisation. {) Development of Personnel Organising stimulates creativity amongst managers. This helps subordinates to develop newer skills and ability to deal with emerging challenges, This helps in development of personnel. Or Derivative plans are the supporting plans, which are formulated for executing the primary plan. When the primary plan is decided, the next logical step is to increase the sale of a product, the derivative plans would be to recruit and train employees, launch an advertising campaign, procure funds, etc. 24. In the given case, one ofthe imitations of planning function of management is discussed, In many situations, changes in environment may make the plans inoperative and ineffective. Plans have to operate in an external environment, which is beyond the control of an organisation. For instance, itis very difficult to make accurate forecasts about economic conditions, government policies, human behaviour or natural calamities. It does not provide positive esults when such changes are not accurately forecasted. 25. The responsibilities of a consumer are () Awareness A consumer should be well aware of the availability of various goods and services. This enables him to make an informed and wise choice. (8) Looking for Quality Marks A consumer mast always look forthe quality certification marks before the purchase of goods such as ISI in case of electrical goods, AGMARK in case of agricultural goods, ete. (ii) Asking for Cash Memo A consumer should always ask for cash memo or bills for the goods and services purchased.Sample Question Paper ‘The ill acts a proof of purchase and can be used for Future references in case of a complaint. (Gv) Reading Labels Labels on goods provide information regarding price, weight, expiry date ofthe product. “The consumer must read these labels careflly before purchasing the goods. (©) Honest Transactions A consumer must always choose legal dealings and discourage illegal trade practices such as black marketing and hoarding. (i) Enoure Safety A consumer must carefully read the manwals and instructions provided by the manufacturer soas to ensure safe use of the product. eg. Instrictions provided on the electrical appliances must be carefully read before using them, (vii) Filing Complaint Incase the product is found defective or any deficiency is found in the duality of the product, a complaint must be fled in the appropriate forum (vii) Consumer Societies Consumer organisations and societies such as Consumer Coordination Council, Common Cause, Karnataka Consumer Service Society, etc. must be formed to work towards consumer education and awareness 26. () Fixed Capital It refers to investment in long- term assets, Management of fixed capital involves allocation of firms capital to different projects or assets with long-term effects on the business. These decisions are called investment decisions of capital budgeting decisions and affect the growth, profitability and risk of the business in the long-run. “These long-term assets last for more than one year and must be financed through long, term Sources of capital such as equity or preference shares, debentures, long-term loans and retained earnings of the business, Investment in assets also includes expenditure on acquisition, expansion, modemisation and their replacement. (a) Working Capital Every business organisation also needs to invest in current assets. This investment facilitates smooth day-to-day operations of the business. Current assets are Usually mote liquid but contabute less to the profits than fixed assets eg, Current assets are cash-in-handjcash at bank marketable securities, bills receivable, debtors, finished goods inventory, work-in- progress, raw materials and Prepaid expenses. “These assets are expected to get converted into cash or cash equivalents within a period of one Year. These provide liquidity to the business Current liabilities are those payment obligations which aze due for payment within one year, hich as bills payable creditors, outstanding expenses and advances received from customers. ‘The net working capital may be defined as the ‘excess of current assets over current liabilities. Or (i) Capital Market It refers to whole network of all orgenisations, institutions and instruments that provide medium and long-term funds. Capital market consists of a series of channels, ‘through which savings of the community are made available for industrial and commercial ‘enterprises and for the public in general Irencourages people to invest their small savings into the most productive way. Itleads to growth and development of the economy. Capital market consists of development banks, ‘commercial banks and stock exchanges. Long- term funds aze raised and invested in the form ‘of both debt and equity. (Gi) Money Market It refers to market for short- torm funds, which deals in monetary assets whose period of maturity is upto one year. It ‘has no physical location and most of the activi- ties are conducted over telephone and intemet. Money market satisfies short-term financial requizements of a business (like working capital requirement) and the temporary deployment of ‘excess funds for earning returns. Major participants of money market are Reserve Bank of India (RBI), Commercial Banks, Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), Non-banking Finance Companies, State Governments, Large Corporate Houses and ‘Mutual Funds 21. Organising can be defined as “Identifying and grouping different activities in the organisation and bringing together the physical, financial and ‘human resources to establish the most productive relations for the achievement of specific goals.” The process of organising include (i) Tentification and division of work Departmentalisation (Gi) Assignment of duties Gv) Establishing reporting relationships Some of the advantages of organising are ( Benefits of specialisation (ii) Clarity in working relationships Or Planning is a process of deciding in advance what to do and how to do. Its a basic function of a involves setting up of objectives and developing the best possible course of action to achieve these objectives. Three limitations of planning are discussed below () Planning is a Time-consuming Process Sometimes, plans to be drawn up take so much of time that there is not much time left for theic implementation. This leads to failure of planning(ii) Planning does not Guarantee Success Success of planning rests on its implementation. Lack of proper implementation may lead to failure of planning, Even ifa plan has worked earlier, it ‘may not work again due to changes in the external environment. (iii) Planning involves Huge Cost It usually involves a lot of time, effort and cost of the ‘managers. Collection of data, boardroom meetings, investigations and discussions with ‘experts involve a lot of expenditure of the organisation. Sometimes, the cost incurred may not justify the benefit derived from the plans. 28. The two concepts discussed are training and development () Training It is the process of improving the job knowledge and skills of employees s0 as to ‘enable them to perform well. Its a two-way process because there must be someone to learn and someone to teach. The purpose of training is to shape the behaviour of people so that they can do their jobs in a better way. It isa continuous process because there is zno end to learning and a person has to learn continuously new technology, new patterns of behaviour and new lifestyles. It is necessary for both new as well as existing ‘employees so that they may perform their jobs ‘properly. Several on-the-job and off-thejob methods are used for training employees. New employees need training to adapt themselves to the new environment and to perform theis jobs efficiently. Existing require in-service training to update their knowledge and to learn new methods and techniques. (Gi) Development It is the process of not only building up the skill and abilities for specific purpose but also the overall competence of employees to undertake more difficult and challenging tasks, It seeks to prepare employees for handling more responsible and challenging, jobs and developing their hidden qualities and talents. 29, () Yes, Sana’s father is right in his assertion. @) Factors affecting dividend decision are (@) Stability of Dividend Every company adopts the policy of maintaining the stability of dividend per share. From this point of view, alittle change in profit should not be allowed to increase or decrease the dividend. (©) Legal Constraints Certain provisions of the Companies Act put restrictions on payouts as dividend, Such provisions must be adhered to while declaring the dividend. Business Studies Class 12 (©) Access to Capital Market Large and reputed companies generally have easy access to the capital market and therefore ‘may be depended less on retained earnings to finance their growth. These companies tend to pay higher dividends than the smaller companies 30, (tn the given case, psychological barriers are being discussed. Emotional or psychological factors acts as barriers to communication, ‘eg. A worried person cannot communicate properly and an angry receiver cannot tunderstand the real meaning of message. The state of mind of both sender and receiver of communication reflects in the effective communication. (ii) The psychological barriers are (@) Premature Evaluation Some times people ‘evaluate the meaning of message before the sender completes his message. Such, premature evaluation may be due to pre- conceived notions or prejudices against the communication, (b) Lack of Attention The pre-occupied mind of receiver and the resultant norlistening of message acts as a major psychological barrier. For instance, an employee explains about his problems to the boss who is pre-occupied with an important file before him, The boss does not grasp the message and the employee is disappointed. 31. This is a divisional organisation structure. The CEO plans... vere division, Dividing the whole enterprise according to the ‘major products to be manufactured (like garments, shoes, accessories) is known as divisional organisation structure. In a divisional structure, each unit has a divisional manager responsible for performance and who has authority over the unit. nis multifunctional because within ision functions like production, marketing, finance, purchase, etc. are performed together to achieve a common goal. Advantages of divisional organisation structure () Product Specialisation ‘The divisional heads .. grow. Product specialisation helps in the development of varied skills in a divisional head and this prepares him for higher positions. This is ‘because he gains experience in all functions related to a particular product. }) Accountability of Divisional Heads ‘The CEO is . on others, Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified andSample Question Paper assigned to them. This provides a proper basis for performance measurement. It also helps in fixation of responsibility in cases of poor performance of the division and appropriate remedial action can be taken. (ii) Promotes Flexibility This type vrvnsnenneneeinonsesen ead, It promotes flexibility and initiative because each division functions as an autonomous unit ‘which leads to faster decision-making, (iv) Facilitates Expansion In this type added easily It facilitates expansion and growth as new divisions can be added without interrupting the existing operations by merely adding another divisional head and staff for the new product ine. 32. In the present day of competitive market, itis essential for a business manager to remain alert and aware of its environment, because of the following points () Identify Opportunities and Getting the First Mover Advantage Awareness of environment helps an enterprise to identify the opportunities prevailing in the market and they can make strategies to capitalise such opportunities at the earliest, e.g. Maruti Udyog became the leader in the small car market because it was the first company who recognised the need for small cars in the environment. (i) Identify Threats and Early Warning Signals Environmental awareness helps an enterprise in identifying possible threats in future, so that the enterprise can take timely measures to minimise the threats and its adverse effects, if any, eg. When the new firms entered in the mid segment cars (threat), Maruti Udyog increased the production ofits esteem car. Increase in production enabled the company to ‘make faster delivery. Asa result the company ‘captured a substantial share of the market and became a leader in this segment (ii) Assist in Planning and Policy Formulation Environment awareness helps a business unit to identify opportunities and threats in the market ‘These serve asa basis fr planning future course of action and making policies for the same. (iv) Tapping Useful Resources A business ‘environment is an open system which gets resourees such as capital, labour, machines, materials etc, from the environment, converts them into goods and services desired by the ‘customers and then supplies its output to the ‘environment. Thus, a business firm depends on its external environment for tapping various resources and forthe sale of its output. ‘Common Students sometimes get confused Mistake between importance of business environment and features of business environment. Here, ‘question asks about importance of business environment ie. tapping useful resources, coping with rapid changes, ete. r Ditference between top level, middle level and lower level or supervisory level of management. Basis ‘Top Level Management Middle Level Management _ Supervisory Level Management ‘Time Range __It covers long span of period. It covers intermediate range. _Itis concemed with short period, ‘Skills Te requires creative sklls, Te nceds persuasive skills Tt is concemed with operative sills, Evaluation Its difficult to evaluate its It is less dificult to evaluate It is easy to evaluate its performance. achievement. its performance. Number of It involves few persons, It involves moderate number It is concerned with large number of Persons of persons. persons. Policy Ie is concerned with the Itis moderately concerned It is least concerned with policy Formulation formulation of policies toa with policy formulation. formulation. ‘greater extent. Nature It is determinative. It is more Itis more executory and _Itis operative. It is more supervisory administrative than ‘managerial than than managerial. managerial, administrative 33. Techniques of Taylor's scientific management (i) Time Study It determines the standard time taken to perform a well-defined job. Time measuring devices ‘were used to conduct this study. This type of study is helpful in deciding the time required to perform a job. Gi) Motion Study Motion study refers to an in-depth study of movements of a worker while doing a task. Taylor recognised three types of movements (@) Productive (©) Unproductive (©) Incidental10 ‘The objective of motion study is to eliminate ‘unproductive movements in doing a task to achieve efficiency and reduce the time required to do the task. (ii) Fatigue Study Fatigue study seeks to find out the amount and frequency of rest intervals to be given to workers in completing a task, ‘This would help the worker to regain his stamina and work with the same efficiency again. (Or (i) Unity of Direction It implies that there should, be one head and one plan for a group of activities having the same objective. All the related activities should be put under one group and they should be in the control of fone manager, (i) Equity This principle emphasises kindliness and justice in the behaviour of managers towards workers ‘There should be no discrimination against anyone on account of sex, religion, language, caste or belief and equal opportunities should be available forall ii) Esprit De Corps It means union is strength Fayol emphasised on team work. This spirit brings harmony in the groups and they strive to work hard to achieve the targets of an organisation. For this, managers should replace ‘W/ with ‘We’ in all his conversations. Business Studies Class 12 34. (i) The two product related decisions which the students had to take are (@) Branding A brand is a name, term, sign, ‘or some combination of them the produets and differentiate it from that ofits competitors. ‘Thus, branding isthe process of assigning a distinctive name or symbol toa product, by which it can be remembered. (©) Packaging It refers to the act of designing and producing the container or wrapper of a product. Various kinds of goods are placed into appropriate containers for protection and convenient handling. ‘Ths, packaging implies placing products in suitable packages for delivery ofthe product to customer or for the purpose of storage and transport. (Gi) The two important functions thatthe label of the jam bottle must perform are as follows (@) To describe the product and specify its contents. (©) Tohelp in identification ofthe product or brand. A brand isa name, term, sig, symbol, design ‘or some other combination of them used for the identification ofthe product and differentiate it from those of the competitors.