Business Studies

(Test)
Marks: 40
Q- 1. Explain briefly ‘casual callers’ and ‘labour contractors’ as external sources of recruitment. (2
marks)
Q- 2. How does controlling help in “Judging accuracy of standards” and “Ensuring order and discipline”?
(2 marks)
Q- 3. Explain how the following factors affect the working capital requirements of a business :
(i) Inflation. (ii) Business cycle
(iii) Level of competition (iv) Nature of business. (2 marks)

Q- 4. Mrs. Rajlaxmi is working as the Human Resource Consultant in a firm manufacturing cosmetics,
which is facing a problem of high employee turnover. The CEO of the company has invited suggestions
from her for retaining the talented employees and reducing the employee turnover. Mrs. Rajlaxmi
recommends that the good employees be rewarded in a way that it creates a feeling of ownership among
the employees and at the same time, makes them contribute towards the growth of the organisation.
Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi to the CEO of the
company. (2 marks)

Q- 5. Stock exchange acts as a regulator of the securities market. It creates a continuous market where
the securities are bought and sold. It gives chance to the investors to disinvest and reinvest.
Through this process of disinvestment and reinvestment, savings get channelised into their most
productive investment avenues.
To ensure that the investing public gets a safe and fair deal in the market, the membership of the stock
exchange is well regulated and its dealings are well defined according to the existing legal framework. It
also ensures wider share ownership by regulating new issues, better trading practices and taking effective
steps in educating the public about investments.
Various functions performed by stock exchange are discussed in the above paragraph. By quoting lines
from the above paragraph, state any three functions of stock exchange. (3 marks)
Q- 6. You are a management guru. You have been asked by a business firm to make its managers
understand the importance of controlling. Give any three arguments.
(3 marks)
Q- 7. Give the meaning of motivation and state any two features of motivation. (3
marks)
Q- 8. Aditya Rubbers is thinking of knowing the worth of its employees but it is unable to do so yet. The
firm now has decided to include a step in its staffing process through which it can judge the performance
of its employees. Name the step the organisation will include. Name two more other steps in the staffing
process which precede this step. (3 marks)
Q- 9. Explain any five methods of floating new issues in the primary market (5 marks)
Q- 10. State any three limitations and three advantages of external source of remuneration. (5
marks)
Q- 11. Kay Ltd. is a company manufacturing textiles. It has a share capital of Rs. 60 lakhs. In the previous
year, its earnings per share was Rs. 0.50. For diversification, the company requires additional capital of
Rs. 40 lakhs. The company issued funds by issuing 10% Debentures for the same. During the year, the
company earned profit of Rs. 8 lakhs on capital employed. It paid tax @40%. State whether the
shareholders gained or lost, in respect of earning per share on diversification. Show your calculations
clearly. (5 marks)
Q- 12. How are consumer grievances redressed by the three-tier machinery under Consumer Protection
Act, 1986 ? Explain. (5 marks)