Maharashtra HSC Board : Organization Of Commerce And Management (51): (Q.P. February 2025 with Solution)

 

Maharashtra HSC Board : 

Organization Of Commerce And

 Management (51): 

(Q.P. February 2025 with Solution)

Note: (i) All questions are compulsory

(ii) Figures to the right indicate full marks for the questions.

(iii) Figures to the left indicate question numbers.

(iv) Answer to every question must be started on a new page.

Q1 . (A) Select the correct option and rewrite sentence:         (5)[20]

(1) __________ is regarded as the Father of Scientific Management.

(a) Henry Fayol

(b) F.W. Taylor

(c) Philip Kotler

Ans: (b) F.W. Taylor

(2) _________  creates time utility.

(a) Warehouse

(b) Transport

(c) Communication

Ans: (a) warehouse 

3) Businessmen are _________ of the society

(a) representatives

(b) members

(c) trustees

Ans: (c) trustees

(4) The term 'Market' is derived from the ________ word "Mercatus'. 

(a) French

(b) Latin

(c) Italian

Ans: (b) Latin

(5) Principle of indemnity is not applicable to insurance.

(a) life

(b) marine

(c) fire

Ans: (a) Life 

(B) Give one word /phrase/term for the following statements:            (5)

(1) The right person at the right job with right pay.

Ans: Staffing 

(2) The first step in online transaction.

Ans: Registration 

(3) An activity motivated by profit.

Ans: Business 

(4) One who consumes or uses any commodity or service.

Ans: Consumer 

(5) Giving of distinct name to one's product.

Ans: Branding 

(C) State whether the following statements are true or false.    (5)

(1) Every function of management is not based on planning.

Ans: False

(2) E-business allows you to work across the globe in any field.

Ans: True

(3) Business ethics is a code of conduct.

Ans: True

(4) Consumer Protection Act provides protection to the producer.

Ans: False

(5) Air transport is the cheapest mode of transport.

Ans: False

(D) Find the odd one:                        (5)

(1) District Commission, State Commission, NGO, National Commission.

Ans: NGO

(2) NABARD, RBI, SIDBI, EXIM

Ans: RBI

(3) Debit card, Credit card, Aadhar card, ATM card

Ans: Aadhar card 

(4) Writing. Planning, Organising. Staffing

Ans: Writing 

(5) Price, People, Promotion, Product

Ans: People 

Q. 2. Explain the following terms/concepts (Any FOUR):

(1) Motion Study

Ans: 

The study of required motion means movement of an employee as well as of machine while completing a particular task is very important. 

It is helpful in eliminating unnecessary motions and finding the best method of doing a particular job. It also helps in improving the efficiency of the employees. 

Motion technique is used to know whether some elements of a job can be eliminated or their sequence can be changed for smooth flow of task.

(2) Controlling

Ans:

Controlling is the process of taking steps to bring actual results and desired results closer together.

Controlling is a function of comparing the actual performance with the predetermined standard performance. It measures deviation, if any, identifies the causes of deviation and suggests corrective measures. The process of controlling helps in formulation of future plans also.

 Philip Kotler: "Control is the process of taking steps to bring actual results and desired results closer together."

(3) Bonded Warehouses

Ans: 

Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of custom duty. These warehouses work under the control of custom authorities. 

The warehouse keeper is required to give an undertaking or 'Bond' that it will not allow the goods to be removed without the consent of the custom authorities. The goods are held in bond and cannot be withdrawn without paying the custom duty. 

If an importer is unable or unwilling to pay customs duty immediately after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the goods in installments by paying the customs duty proportionately.

(4) Consumer Protection

Ans:

Generally, safeguarding the rights and interests of consumers is known as consumer protection. It includes all the measures aimed at protecting the rights and interests of consumers. In modem competitive market, consumer is regarded as the 'King of Market

(5) E-mail

Ans: 

Electronic mail (email or e-mail) is a method of exchanging mail between people using electronic devices. Today's email systems are based on a store-and-forward model. 

Email servers accept, forward, deliver, and store messages. Neither the users nor their computers are required to be online simultaneously; they need to connect only briefly, typically to a mail server or a webmail interface for as long as it takes to send or receive messages.

(6) Co-ordinating

Ans: 

Co-ordination between different functions and all levels of employee is the essence of organization success. It is an integration of different activities· which is essential for their smooth flow. 

It establishes harmony among all the activities of an organization in achieving desired goal. In an organization, a number of persons are working together to achieve a common goal. Their work is closely linked with each other. 

Therefore, it becomes necessary to bring together the group efforts and harmonise them carefully. Co-ordination will not exist unless efforts are taken to achieve it. 

Co-ordination is the integration and synchronization of the efforts of a group so as to provide unity of action for organizational goals. It is a hidden force which binds all other functions of management.

Q. 3. Study the following case / situation and express your opinion (Any TWO):    (6)

(1) Mr. Sharad is a businessman. He has his own factories in Pune and Nashik. He lives in Pune with his wife and 2 daughters aged 5 and 8 years old:

(a) Can Mr. Sharad take a life insurance policy for his wife and 2 children?

Ans:

Mr. Sharad can take whole life policy or term insurance policy for his wife and child insurance policy or money back policy for his daughters.

(b) Can Mr. Sharad take a marine insurance policy for his factories?

Ans:

Mr. Sharad cannot take marine insurance policy for his factories.

(c) Which types of insurance should Mr. Sharad take for protecting his factories from loss due to fire?

Ans:

Mr. Sharad can take Floating Fire Insurance Policy for protecting his factories at Pune and Nashik

(2) Mr. Suresh made his payment by cheque. At the same time Mr. Saksham made his payment by fund transfer

(a) Whose payment is faster?

Ans: 

The payment made by Mr. Saksham by fund transfer is faster than the payment made by Mr. Suresh through cheque.

(b) Whose payment is related to traditional business?

Ans: 

The payment made by Mr. Suresh by cheque is related to traditional business.

(c) Whose payment is related to e-business?

Ans: 

The payment made by Mr. Saksham by fund transfer is related to e-business

(3) An organisation manufacturing paints has been enjoying a prominent market position since many years. It has been dumping its untreated poisonous waste on the river bank, which has created many health problems for the nearby villages:

(a) Which responsibility is neglected by manufacturing organisation?

Ans: 

Responsibility toward the protection of environment is neglected by manufacturing organisation

(b) What kind of pollution they are doing?

Ans:

They are creating water pollution by dumping is untreated poisonous waste on the river bank 

(c) State any one precautionary measure they need to take.

Ans:

Proper waste management techniques should be adopted by the organization under which waste should be reduced, effort should be made to reuse the waste. Waste that cannot be reduced or reused should be recycled.

Q. 4. Distinguish between the following (Any THREE):                (12)

(1) Road Transport and Water Transport

	Road Transport	Water Transport
1. Speed	Road transport has limited speed due to bad road condition, accidents, etc.	It is the slowest mode of transport
2. Carrying capacity	It has limited carrying capacity	It has very huge carrying capacity
3. Cost	It requires limited capital investment in terms of construction of roads, vehicles and there maintenance.	It uses waterways which are natural highway and hence there is no cost involved. However there is high cost involved for construction of ships and parts and also maintenance of ships and parts.
4. Distance	Recommended for short distance.	Suitable for long distance specially across countries and continents
5. Charges	Transport charges are not fixed due to increased fuel prices	Transport charges are low.
6. Door to door service	It provides door to door services.	It does not provide door to door services
7. Means of Transport	It uses animals, animal carts, motor-cycles, three and four wheelers.	It uses boats, big ships, liners, tankers etc.
8. Suitability	It is suitable for transporting the goods in relatively smaller quantities for short distance.	It is suitable for transporting way heavy goods, machineries in large quantities to any part of the world.

(2) Life Insurance and Fire Insurance

	Life Insurance	Fire Insurance
1. Meaning	A contract where by the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium)	A contract in which insurer promises to pay compensation to insured if something happens to the subject matter due to fire or related events
2. Policy taken by	It can be taken by an individual for his own life or for his family members.	It can be taken by individual for their properties or by businessman. For their goods, properties business liabilities.
3. Subject matter	In life insurance, the life of the insured is a subject matter	In Fire insurance, the goods and assets or property of the insured is the subject matter.
4. Tenure	The policy can be issued for any number of years, even until the death of the assured.	It is generally for a short period like one year.
5. Compensation	It is paid either on death or maturity whichever is earlier.	It is paid only if there is loss due to fire during the term of policy.
6. Principle of Indemnity	It is not applicable as a human life cannot be valued in terms of money for calculating the actual loss.	It is applicable as insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.
7. Number of policies	Insured can take any number of policies on the same life.\ Compensation is paid on all hte policies	Generally only one policy can be taken but double insurance is possible. However, compen sation does not exceed the ac tual loss.
8. Beneficiary	The beneficiary can be insured (if he survives the selected term) or else the nomine or the legal heir on the death of the assured.	The beneficiary is the insured who has insured the property or goods.
9.Surrender of policy	The policy can be surrendered before the expiry of the term subject to certain conditions.	It cannot be surrendered.

 

(3) Organizing and Staffing

	Organizing	Staffing
1 Meaning	Organising is the process of defining and grouping the activities of the enterprise and establishing the authority relationships among them.	The staffing function pertains to the recruitment, selection, development, training and compensation of subordinate managers.
2 Objective	To identify and bring together all required resources.	To appoint right type of people at the right positions and the right time.
3. Area of function	It includes identification and grouping of activities, assigning the work and establishing the authority relationship.	It includes recruitment, selection, training, development and compensation of human resources.
4. Factors	Internal and external factors are considered in arrangement of resources.	Staffing is mostly concerned with internal factors.
5. Order	It is based on planning.	It follows organizing function.
6. Resources	All available resources i.e. men, money, material, machine and method are arranged in a systematic manner.	It is the process relating to organization of human resources.
7. Nature	It takes place till the time all the resources are collected and arranged.	It is a continuous process as it deals with employees i.e. human resources.
8. Level of Management	Top and middle level management s related with organizing the required resources.	Middle level management is related with recruitment, training and selection Top level is concerned with promotion and compensation.

 

(4) District Commission and State Commission

	District Commission	State Commission
1) Meaning	A consumer dispute redressal forum at the district level established by the State Government is known as District Commission.	A consumer dispute redressal forum at the State level established by the State Government is known as State Commission.
2) President	A person who is sitting or retired or qualified to be District Judge.	A person who is sitting or retired or Judge of High Court, shall, be appointed by the State Government as the President of State Commission.
3) Member	Not less than two and not more than such number of members as may be prescribed, in consultation with the Central Government	Not less than four or not more than such number of members as may be prescribed in consultation with the Central Government.
4) Membership Tenure	The members can have the membership for a term of five years or upto the age sixty five years, whichever is earlier.	The members can have the membership for a term of five years or up to the age sixty seven, whichever is earlier.
5) Area covered	It covers particular district	It covers particular state
6) Monetary Jurisdiction	To entertain com plaints where the value of the goods or services paid as consideration does not exceed Rs. one crore.	To entertain com plaints where the value of the goods or services paid as con sideration, exceeds Rs. one crore, but does not exceed Rs. ten crore.
7) Appeal	Appeal against the District Commission can be made to the State Commission.	Appeal against the State Commission can be made to the National Commission.

Q. 5. Answer in brief (Any TWO):                [8]

(1) Explain any four principles of management of Henry Fayol.

Ans: 

1) Principle of Division of Work:

According to this principle, the work is divided into different kinds such as technical, financial, commercial, security operations, accounting and managerial. It is assigned to employees as per their qualities and capabilities. It helps in improving efficiency and expertise of employees which ultimately turns into expected productivity level.

2) Principle of Authority and Responsibility:

Authority is the right to take decisions. It is necessary to get the things done appropriately from subordinates. Authority always comes with the responsibility. If the manager is given the authority to complete a task within a given time, he should be held responsible if he does not complete the work in given time. Manager should have proper authorities to take managerial decision on his own in respect to the goal.

3) Principle of Discipline:

According to Fayol, discipline is the most essential thing in the organisation. Employees must obey and respect the rules that govern the organisation. Discipline helps to achieve the goals in the organisation. Good discipline is the result of effective leadership. There must be a clear understanding between the management and workers regarding the organisation's rules. Basic discipline should be observed at all levels of management.

4) Principle of Unity of Command:

Each member of organization should receive orders from only one superior. This principle helps in managing conflicts and solving disputes among people in organization. It also helps in avoiding confusion. If an employee receives commands from more than one authority, he will get confused and will not be able to take decision about whose orders should be followed.

This is wrong approach. For this organizational hierarchy should be well defined. Each employee should know his immediate superior and should receive orders from him only

5) Principle of Unity of Direction:

This principle states that 'there should be one head and one plan' in every organization. Each group in the organization should have the same objective and the group should be directed by one manager using single plan.

6) Principle of Subordination of Individual Interest to Organisational Interest:

According to this principle the interest of an individual must be given less importance than the interest of the organisation. While taking decision in the organisation the manager should always consider the interest of the whole group rather than the interest of a single employee.

Similarly the employee should protect the interest of the organisation first and his personal interest should be subordinated. For example, in every game, the players are always thinking about winning the match as a team rather than their individual records.

7) Principle of Centralization:

Centralization refers to the concentration of powers and authorities. In some organisations this power is vested in one hand or few hands. This situation occurs in the small organisations. But, if the size of organisation is large then there is a decentralization of the power or authority. 

According to this principle there must be a proper balance between centralization and decentralization in the organisation. This is to be done according to the size of the organisation, nature of the activity etc.

8) Principle of Remuneration:

Appropriate remuneration to staff or employees is the principle to keep them satisfied financially as well as retain them for long span of time within the organization. The fair remuneration affects on the productivity and efficiency level in total. The remuneration should be fixed by taking into consideration the skill, expertise, knowledge, tenure, cost of living, market trend, profitability of organization etc.

9) Principle of Scalar Chain:

Scalar chain means the hierarchy of authority from the top level to the lower level for the purpose of communication. This helps to ensure the orderly flow of information and communication. Traditionally, organizations used to frame large scalar chain which is time consuming. For example, a General Manager informs the decision to respective Functional Manager, then Functional Manager will pass it to supervisor, the supervisor will inform it to Foreman and so on according to level of authority. For avoiding this longer chain and to take speedy decisions cross communication or direct communication is followed by various organizations which is known as Gang Plank. For direct communication, proper permission of the authorities is necessary

In the above diagram, the communication between 'D' and 'G' should flow through proper hierarchy.

But to avoid delay or in emergency situation there will be direct communication. It is termed as Gang Plank.

10) Principle of Order:

This principle is based on 'A place for everything and everything in its place'. Human resources and materials should be in the right place at the right time for maximum efficiency. Human resources should be placed at right place and on right job. The principle focuses on the proper utilization of physical and human resources.

11) Principle of Equity:

Management should be fair as well as friendly to the subordinates. While dividing the work, delegating the authorities, deciding the monetary terms etc.. there should not be any discrimination between the employees. It is also suggested that the remuneration should not depend on the department but at the level on which subordinates are working. The employees working on the same level but in different departments should be paid same wages. This equity will help in avoiding conflicts in the organisation.

12) Principle of Stability of Tenure:

At the time of recruitment of employees, the management should assure them about stability of tenure or job security. It plays very important role in creating sense of belongingness among the employees. Insecurity in job always affect the efficiency of employees adversely whereas job security minimizes employee turnover ratio.

13) Principle of Initiative:

Initiative refers to volunteering to do the work in an innovative way. The freedom to think and work on new ideas encourages employees to take initiative while working on given task. This initiative should be welcomed by the manager through discussion on the new ideas. It also helps in creating healthy organizational culture.

14) Principle of Esprit de corps: (Team work)

Henry Fayol has given emphasis on team work. Esprit de corps means union is strength. Running any organization is a group activity and human resources are the valuable asset of the organization. If all employees are working as a union and with mutual trust, the difficulties can be solved quickly. Therefore, as a leader, manager should create a spirit of team work and understanding among employees to achieve organizational goal easily

(2) Explain any four responsibilities of consumer.

Ans: 

The consumer is the king of the market but in reality experience is different. Business cannot work without consumer. The survival and growth of business depends on consumer satisfaction, service and support. The commercial organization should win the confidence of the customers.

This is possible by following positive attitude towards customers and fulfilling following social responsibilities towards them -

1) Good Quality Products:

The organization should produce quality goods. Every organization should have its quality control department so inferior and substandard products can be rejected. International Standard Organization (ISO), is the latest trend towards quality control. This ensures customers about quality product.

2) Fair Prices:

The consumers should not be cheated by charging high prices. It is not possible to fool the customer at all the time. Fair prices convert a one time consumer into permanent consumer. 

Maximum Retail Price (M.R.P.) inclusive of all taxes should be printed on every packet. Retailer should not charge any extra amount.

3) Customer's Safety:

The business must ensure that the product supplied will not adversely affect the life and health of the customers. Unsafe products should not be marketed. Consumer should be warned of any unsafe goods.

4) Honest Advertising:

The consumers want to know the facts, features, advantages, side-effects etc. of the products. 

The advertisement conveys this information. So the organization must be sure that the advertisement is not being misleading. False, misleading and vulgar advertisement should be avoided. Consumers will appreciate only honest advertisements in the long run.

5) After Sales Service:

The organization is expected to provide after sales service for maintenance of goods during the period of warranty. Efficient and effective after sale service helps to establish good relation between the consumers and the organisation.

6) Research and Development:

Organization should conduct research and development to improve the quality of goods and to reduce the cost of production. This will minimize final prices charged to consumers. It must provide quality standards such as BIS or AGMARK on respective products.

7) Regular Supply:

Consumers should be supplied with the goods regularly as and when required by them. The commercial organization should not create artificial shortage of goods by hoarding and black marketing.

8) Attend Complaints:

The consumer complaints must be attended immediately. Quick and effective grievances redressal system should be implemented. Suggestions of customers should be welcomed.

9) Training:

The business organisation should arrange training for their consumers either free or by charging reasonable fees.

10) Avoid Customer Exploitation:

Business should avoid unfair trade practices which lead to exploitation of consumers. Also they should avoid monopolistic competition in the interest of consumers.

(3) Explain any four functions of marketing.

Success of business is difficult without effective marketing. Marketing deals with exchange of goods and services to satisfy needs of consumers. Marketing functions help to study the needs of the consumers and facilitate to satisfy it. Following are some of the important functions of marketing :

1) Marketing Research

Effective marketing is possible when business takes initiative to identify the needs and wants of the consumers in the market. To identify the needs of the consumers, there is a need to collect information from the consumers and analyse the same is known as Market Research. 

Analysis of the information helps in the assessment of the need in the market. It helps to find out what do consumers want to buy, when do consumers buy, in what quantity they want to buy and at what price. Marketing Research helps to take various decisions regarding successful marketing of products.

2) Buying and Assembling:

It involves collecting raw material from different sources at one place for production. This function is important as quality and price of raw material determine cost and quality of the final product.

3) Market Planning:

After assessing the need of the marketing, business needs to chalk out the marketing plan and strategies to achieve the desired objective. Market planning is the process of organizing and defining the marketing objectives of the business and creating strategies to achieve them. It is the comprehensive blueprint that will help to draw outline of business's overall marketing efforts.

4) Product Development

Product development and design play an important role in the selling of the product. There is a need to develop the product that suits the needs of the consumer. Product design includes decision related to quality, standards, shape, design, packing, colour etc. of the product. Consumer always prefer better and attractively designed product. Good design of the product gives competitive advantage to the business. Product development is continuous process as the requirements of the customer change from time to time.

5) Standardisation and Grading:

Standardisation means to determine standards related to process, size, quality, design, weight, colour etc. of the product. It helps in ensuring uniformity in the quality of the product. It helps in achieving customers' loyalty towards the product.

Grading is the process of classification of products according to similar characteristics and/or quality. Grading is done on the basis of their features like size, shape quality etc. Generally grading is done in case of agricultural products like wheat, rice, potatoes etc.

6) Packaging and Labelling:

Package and Label creates the first impression on the consumer about the product. Attractive package and label can help to make product successful. Packaging means designing the package for the product. It helps to avoiding breakage, damage and destruction of the product. 

Packing material includes bottles, container, plastic bags, tin, wooden boxes, jute bags, bubble bags, packing foam etc. 

Label is a slip which is found on the product and provides all the information regarding the product and its producer. The slip on which all this information is provided is called as label and its process is called as labeling. Packaging and labelling not only provide protection to the product but also act as an effective tool of marketing

7) Branding :

Every businessman wants to have special identity in the market for his product. Branding is a process of giving special identity to a product through unique brand name to differentiate it from competitor's products. In simple words giving of distinct name to one's product is called as branding. Registered brands are known as Trademarks.

Trademarks can not be copied. Branding helps to get recognition among the consumers. It can help to get new business and increase brand awareness in the market. 

8) Customer Support Service:

Customer is the king of the market hence business needs to take necessary steps for the satisfaction of the customer. Business needs to take every possible effort to provide support services to the customer. Timely support services help to gain customer's loyalty. 

The business can provide the support services like Pre-sales service, consumer helpline, after sales service, technical assistance, product demo etc. to the customers. These services help in getting, retaining and growing the customers.

9) Pricing of Product:

Pricing is one of the most important as well as challenging function of the marketing. Many times price of the product decides the success or failure of the product. Pricing plays an important role in the market where there is cut throat competition. While determining the price of the product businessman needs to consider factors like cost, desired profit, price of the competitor's product, demand for the product, market condition etc. 

Business needs to change prices as per the need of the market. If prices are too high, it might lose customers but if prices are too low, it might suffer losses. So deciding the right price needs extensive market research.

10) Promotional Channels

Promotion is the process of informing the consumers about the products, their features, uses, prices etc and encouraging them to buy these products. Advertising, Personal selling, Publicity and Sales Promotion are some of the important tools of promotion. Business uses combination of all or some of these four methods for promotion as per the need of the business. Promotional activities help to increase brand awareness in the market.

11) Distribution:

Distribution is the set of activities which is concerned with efficient movement of finished goods from the place of production to the consumer. It includes transportation, warehousing, material handling, inventory control, order processing, market forecasting, packaging, plant and warehouse location and customer service. Distribution accounts for a major part of marketing budget of the business. Importance of physical distribution for a firm depends on the type of product and level of customer satisfaction desired.

12) Transportation:

Transportation means physical movement of goods from the place of production to the place of consumption. Transportation includes transportation of finished goods as well as of raw material. Production, sale and consumption-all the three activities need not be at one place hencethere is a need of transportation. Place utility is created by transportation activity. Analysis of geographical boundaries, nature of product, cost, target market, speed, reliability, frequency,safety etc. help in deciding modes of transportation. Road, air, water, railways, pipelines are some of the important modes of transportation used by business.

13) Warehousing:

There is a time-lag between the purchase or production of goods and their sale. It is important to store the goods at a safe place during this time-lag. Any negligence during this period may damage the stock. Warehouse helps to maintain a smooth flow of goods. It also helps in stabilizing prices in the market. Function of warehousing is performed by retailers, wholesalers and manufacturers. Warehousing creates time utility. 

Q. 6. Justify the following statements (Any TWO):            [8]

(1) Organising facilitates administration as well as operation of the organisation.

Ans:

1. Organizing function is also called as doing function' i.e. putting the plan into action.

Administration and operation both are doing function as organizing is the process of putting together various resources and activities of the organization into a system.

2. Organizing involves identifying the activities and grouping of relative activities of the administration and operational department.

3. The organizing function defines. departmentalized. and assigns activities so that they can be most effectively executed for the smooth flow of administration.

4. Due to the proper grouping of the tasks and the employees, there is an increase in production and reduction in wastage. The duplication of work can be avoided and effective delegation becomes possible.

(2) Consumer organisations and Non-Government organisations play an important role in consumer education.

Functions performed by consumer organizations and non-government organizations are as follows:

(1) Accelerating Consumer Awareness/Educating Consumers:

The first priority of a consumer organisation is to accelerate consumer awareness towards their rights. To accomplish this task following efforts are made:

(i) To publish brochures, journals and monographs.

(ii) To arrange conferences, seminars and workshops.

(iii) To educate consumers to help themselves.

(iv) To provide special education to women about consumerism.

(v) To encourage to follow desirable consumption standards.

(2) Collecting Data on Different Products and testing them:

These organisations collect samples of different products from time to time and test them. After that the results of the tests are declared to public. In this way, these organisations provide prior information to consumers about the authenticity of product and protect them. Apart from this, these organisations also work in conducting investigation/ research on consumer’s problems.

(3) Filing Suit on Behalf of Consumers:

Whenever a consumer fails to raise his voice of protest regarding his complaints, these consumers’ organisations come to his rescue and file a case in the court. By rendering this service to the consumers, the consumers get a feeling that they are not alone in their struggle. They also run voluntary complaint centres for the guidance of consumers.

(4) Organising Protests against Adulteration etc.:

The consumers’ organisations play a significant role in eliminating the evils of adulteration, hoarding, black- marketing, and under-weight selling. Whenever there is an unnecessary rise in the prices of certain things, the consumers’ organisation raise a voice of protest against it. Consumer organisations prepare films and cassettes related to adulteration in food products, ill effects of medicines and Acts related to consumer protection. Many a times exhibitions are arranged to bring awareness among the consumers against spurious and adulterated products. Nowadays consumer organisations are playing a major role in encouraging consumers to raise their voice against faulty and inferior products.

(5) Helping Educational Institutions:

These organisations tell the educational institutions the way to prepare courses of study keeping in view the interests of the consumers. They stress the fact that a special article on consumers’ interest should always be added to the courses on general study.

(6) Promoting Network of Consumer Associations:

Consumer organisations are trying to grow their numbers. They want to cover all the regions of the country so that consumers of all the regions are benefited by their services. Their effort is to form a federation at the apex level and then through the medium of the federation reach state and district level.

(3) It is easy to set up e-business as compared to traditional business.

1. E-business, or electronic business, is the process of conducting business over the internet. This would entail purchasing and selling goods or services, as well as offering technical or customer support over the internet.

2. Traditional business requires time to travel, convince, bargain, and communicate with customers. This method wastes a lot of time, energy, and money. E-business expedites the delivery and approval of necessary information, including terms and conditions.

3. In traditional companies, a considerable physical space is required to arrange and exhibit a wide choice of products. It requires a significant amount of capital to provide the infrastructure, staff, and other necessary amenities. The internet allows e-businesses to be founded, managed, and run from managed, and run from anywhere, including one's own house. Naturally, it requires little capital.

4. Establishing a traditional business is challenging; however, starting an e-enterprise is quite simple. As a result, E-business is easier to set up than traditional businesses.

(4) Expectations of society towards business are changing.

i. Society's expectations from business firms have undergone drastic change over time.

ii. Earlier, businesses were viewed just as provider of goods and services.

iii. Now, they act as a responsible citizen besides providing goods and services.

iv. Businesses are also expected to contribute towards social welfare.

Hence, expectations of society towards business are changing

Q. 7. Attempt the following (Any TWO):            [10]

(1) Explain the functions of an Entrepreneur.

Ans:

1) Innovation:

An entrepreneur is basically an innovator. He introduces new combinations of means of production. He must introduce new products or bring changes in the existing products. Customers are satisfied with new products or new features in the existing products. Innovation is also necessary to solve problems that arise in the business.

2) Determination of Objectives:

An entrepreneur has to determine the aims and objectives of the business. There may be difference between primary and secondary objectives of the enterprise. He can change these objectives as per the market situations.

3) Development of Market:

The entrepreneur has to find out different ways for marketing the products and services of his enterprise. He can conduct surveys or research to understand the customer's demand. When the markets are developed constantly, the demands of the consumers will increase.

4) New Technology:

In global world, everyday there is an invention of new technology. Introduction of new technology will always result in growth of business e.g. new machinery, advanced technology, new and scientific methods of production, etc.

5) Good Relations:

It is necessary to maintain healthy working atmosphere in an organization. It depends upon the efficient relations between subordinates and superiors. Co-ordination among the employees is the key of success.

6) Organizing Funds:

Entrepreneur needs to find out different financial resources because adequate and continuous finance is always necessary for business. Good and honest relations with the investors is necessary for every business.

7) Taking Decisions:

An entrepreneur has to take wise decisions for his enterprise. Timely and correct decisions are also important and necessary for a proper business plan. He should always consider the pros and cons before taking any business decision.

(2) Explain importance of marketing to the consumers.

Ans: 

1) Promotes Product Awareness:

Through different marketing activities companies promote their products and services. This helps consumers to know about different products and services available in the market. It helps the consumer in making buying decision. It also creates awareness among the consumers about different brands and features of the product available in the market. Consumer can compare product features, price, availability and other essentials because of marketing. Marketing helps to improve the quality of life of the consumer.

2) Provides Quality Products

There is increasing competition in the market. Consumers are getting easy access to the information about the products and services available in the market. It creates moral pressure on the businesses to provide quality goods to the consumers. Supplying defective products may create negative image of the business which affects the consumer's loyalty.

3) Provides Variety of Products

Marketing creates awareness among the consumers about the product. At the same time, it attracts the consumers to buy the same. With the customer population and preferences becoming wider, and the competitive options becoming more available, market segmentation has become critical in any business or marketing plan. In fact, business launch products keeping the market segmentation in mind. Businessman needs to provide variety of goods to cater to the needs of the different market segments of the consumers. Variety may change according to the price, size and quality of the product.

4) Helps in Selection

Variety of products with different brands are available in the competitive markets. Marketing helps the consumer to choose the best products and services from the different options available.

5) Consumer Satisfaction

The first and foremost objective of any sound marketing policy is to satisfy the consumers by assurance of good quality product. When an offering meets the customer's expectations, the customer is satisfied. Marketing leads to consumer satisfaction through honest advertising, assurance of quality products and availability of innovative products. Thus, marketing takes every effort to satisfy the consumer.

6) Regular supply of goods:

Through efficient distribution channel of marketing regular supply of goods is possible. It helps to maintain the balance between demand and supply. It results into stable prices.

(3) Explain nature of principles of management.

Management principles are formed to guide and influence the behavior of employees. These principles insist on improving efficiency of organizational resources in terms of profit. These principles also focus on best coordination between superior, subordinates and all the members of organization.

The nature of management principles is given below:

1) Universal application:

The principles of management are universal in nature. That means they can be applied to all types of organizations, irrespective of their size and nature. Their results may vary and application may be modified but these are suitable for all kinds of organizations. Similarly, they are applicable to all levels of management.

2) General guidelines:

Management principles provide general guidelines in tackling the organizational situations wisely as well as in solving the problems. They are not rigid. Which management principles are to be applied depends upon the situation, size and nature of organisation. For example, when we say fair remuneration, then the term 'fair' can vary as per the nature, size and financial condition of the organisation.

3) Principles are formed by practice and experiments:

The management principles are developed gradually with thorough research work. Systematic observations and experiments are conducted before developing them. The results of such experiments have been developed as a principle after its practice in organizations. 

4) Flexibility:

Management principles are flexible in nature. It means they can be changed or modified according to the situation. Managers can be flexible while implementing principles to suit the requirement. The business situations keep on changing. Management principles can be adjusted or modified and can be used in the organisation according to its need.

5) Behavioral in nature:

Management is group activity. Management aims at achieving certain goal through a group of human being. Management principles are designed to influence human beings. These principles control a group of persons and direct them to achieve the objectives.

6) Cause and effect relationship:

Principles of management are the base for taking decisions. They determine the cause or reason for particular effect. For example, payment of good wages and incentives helps in increasing the output of workers or making effective advertisement increases the sale of a product.

7) All principles are of equal importance:

All principles of management are of equal importance. Those are to be practiced simultaneously to get best results in the form of achievement of predefined goals. If any specific principle is focused more and others are not followed with same focus, then it affects the working of organization. Management principles are the principles of social science. The nature of principles of management is not absolute like pure sciences i.e. Chemistry, Mathematics etc.

With some modifications according to requirement, organization needs to apply the principles of management

Q. 8. Answer the following question in detail (Any ONE):            [8]

(1) What is Marketing Mix? Explain 7 Ps of Marketing Mix.

Ans: 

1) Product:

Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible, as it can be in the form of services or goods. The business need to decide the right type of product through extensive market research. Success of the business depends on the impact of the product in the minds of the customer

2) Price:

The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product. The business needs to take utmost care to decide the price of the product. Cost of the product and willingness of the customer to pay for the product play an important role in pricing the product. Too high price may affect the demand for the product and pricing too low may affect the profitability of the business. While deciding the prices, the value and utility of the product to its customers are to be considered. 

3) Place:

Place is also known as distribution channel. Placement or distribution is a very important part of the marketing. Making a right product at the right price is not enough. Businessman needs to make the product available to potential customer at the right place too. Business needs to distribute the product in a place that is accessible to potential buyers. It covers location, distribution and ways of delivering the product to the customer. Better the chain of distribution higher the coverage of the product in the market.

4) Promotion:

Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication which helps to publicise the product to the customer. It helps to convey product features to the potential buyer and inducing them to buy it.

Promotion mix includes tools such as advertising, direct marketing, sales promotion, personal selling, etc. Combination of promotional strategies depend on budget, the message business wants to communicate and the target market.

The above four P's of marketing are associated with the product marketing mix. In addition to the 4Ps, when there is consumer-oriented or service marketing, there are 3 more P's are taken into consideration namely - People, Physical Evidence and Process.

5) People:

People inside and outside the business directly or indirectly influence the business. People comprise of all the human beings that play an active role in offering the product or service to the customer. The people include employees who help to deliver services to the customer. Right people at right place add value to the business. For the success of the business, it is necessary to recruit right people, train them, develop their skill and retain them.

6) Process:

Process refers to the steps involved in delivering products and services to the customer. Processes are important to deliver a quality service. Good process helps to ensure same standard of service to the customer as well as save time and money by increasing efficiency. The advancement of technology helps businesses in effective monitoring of the process of the business and take corrective action wherever necessary.

7) Physical Environment:

Physical Environment refers to the marketing environment wherein the interaction between customer and firm takes place. Since services are intangible in nature service providers try to incorporate certain tangible elements into their offering to enhance customer experience. In the service market, the physical evidence is important to ensure that the service is successfully delivered. Through physical evidence customers know the brand leaders in the market. Physical evidence affects the customer's satisfaction. It includes location, layout, interior design, packaging, branding, dress of the staff and how they act, waiting area etc.

(2) What is Bank? Explain in detail primary functions of commercial banks.

Ans:

Meaning:

A bank is a financial institution which deals with deposits and advances and other related services. Bank provides various services related to money or financial requirements of consumers.

As per The Indian Banking Regulation Act, 1949 banking company means "any company which transacts the business of banking in India" and the word banking has been defined as "accepting for the purpose of lending or investment of deposits of money from public, repayable on demand or otherwise, and withdrawable by cheque, draft and order or otherwise. 

1) Primary Functions:

The primary functions of commercial banks are known as core banking functions. The primary functions are as follows:

A) Accepting Deposits:

Commercial banks collect deposits from individuals and organizations. The deposits can be classified into two types i.e. Time Deposits and Demand deposits.

a) Time Deposits:

Time deposits are called as time deposits because they are repaid to the customers after the expiry of decided time.

1) Fixed Deposit:

Fixed deposit account is an account where fixed amount is kept for fixed period of time bearing fixed interest rate. Rate of interest is more as compared to saving bank account and varies with the deposit period.

Normally, withdrawal of amount is not permitted before maturity date. However, depositor can withdraw amount before maturity date for which bank will reduce the interest rate. For amount deposited in this account, a fixed deposit receipt (FDR) is issued by the bank. Against this receipt loan can be taken from the bank

2) Recurring Deposit:

It is operated by salaried persons and businessmen having regular income. A certain fixed sum of money is deposited into the account every month. Withdrawal of accumulated amount along with interest is paid after the maturity date. Rate of interest is higher which is similar to fixed deposit account. Separate passbook is provided to know the position of RD account.

b) Demand Deposits:

Demand deposits are those which are repaid to customers whenever they demand. That means, money can be withdrawn as per the wish of the customer through withdrawal slips, Cheques, ATM cards, online transfer etc.

1) Saving Account:

It is generally operated by those who earn regular or fixed income such as salary or wages. The main aim of this deposit account is to encourage habit of savings among people. These deposit accounts are meant for the purpose of maximum savings. There are restrictions on withdrawal limits from these accounts. These accounts carry low interest rates. Interest is credited monthly, quarterly, half-yearly and yearly basis on this account. Passbook facility, balance on SMS, account statement etc. facilities are provided to account holders to ascertain financial position

2) Current Account:

This account is operated by business firms and other commercial organizations such as hospitals, educational institutions etc. who have regular banking transactions. In this account there is no restriction on deposits and withdrawals of amounts. No interest is paid by the bank on this account. Overdraft facility is available for this account. For current account, banks provide statement of account every month.

B) Granting loans and advances:

Banks grant loans and advances to business firms and others who are in need of bank funds. The loans are provided for longer period of time from 1 year and more. Advances are provided for shorter period from 4 months to 1 year. The advances are in the form of cash credit, overdraft and discounting of bills etc.

1) Loans:

Commercial banks provide loan to businessman and others. The borrowers can use entire amount sanctioned or can withdraw in installments. Interest is charged on the amount sanctioned.

The loans are as follows:

a) Short Term Loans are for a period upto 1 year to meet working capital requirements of the borrower.

b) Medium Term Loans are for a period of 1 year to 5 years to meet working capital as well as fixed capital requirements of the borrower.

c) Long Term loans are for a period of 5 years or more to meet long term capital requirements of the borrower.

2) Advances:

Advances are small term fund provided to businessman to satisfy different financial requirements of the business. Advances are as follows:

a) Cash Credit:

The cash credit advances are provided to current account and savings account holders. It provides working capital for longer period of time. Interest rate is higher on CC. Separate CC account has to be maintained by the borrower.

b) Overdraft:

This facility is offered to current account holders to meet their working capital requirements. The period can vary from 15 to 60 days. Interest is charged on actual amount withdrawn. No separate account is maintained, and entries are shown in current account. It is a temporary arrangement for a short period.

c) Discounting of bills of exchange:

The drawer of bills of exchange or beneficiary can discount the bill with bank and obtain an advance. On the due date of the bill, the bank will recover the amount from the drawee.