SUNIL PANDA COMMERCE CLASSES (SPCC)

BUSINESS STUDIES TERM 2

MOCK TEST 02
Q.1) Mr. Murthy is the Human Resource Manager of jai Hind Hospital in Vellore. He has to appoint
nurses for the hospital. Since patients in the hospital are of different types, he wants to find out the
maturity and emotion in dealing with the patients. He also wants to know about the
. Explain two types of tests that Mr. Murthy can use to meet his
requirements. (2)

Q.2) A company require 2 crore for inventory, payments of wages, salaries, maintaining bank
balance, etc:

i) suggest which financial market company may approach and why?

ii) State the instruments to raise finance in the market. (2)

Q.3) Alpha Enterprises is a company manufacturing water geysers. The company has a functional
structure with four main function- production, marketing, finance and Human Resource. As the
demand for the product grew, the company decided to hire more employees. Identify the concept
which will help the Human Resource Manager in deciding the actual number of persons required in
each department. (2)

Q.4) Mr. Ankit is the Chief manager in a well-known MNC, producing shoes. He called the production
manager of his unit and told him to keep a constant watch on all the activities of his respective unit
so that there is no possibility of adverse result. As long as the company runs its operation,
employees at all levels will adopt it to achieve results.

a) identify the function of management referred above

b) describe its three features. (2)

Q.5) Sadaf is the chief Executive Officer of a reputed company. She introduced appropriate skill
development programmes and a sound promotion policy for the employees of her company. To
motivate and retain the best talent in the company, she designed the jobs of the managers to
include greater variety of work content. Identify and explain the two incentives introduced by Sadaf
to motivate the employees of her company. (3)

Q.6)

OR

-financial incentives. How do they

motivate employees? (3)

Q.7) Define financial management & Explain Briefly its objectives. (3)

Q.8) Engineer India Ltd. is engaged in manufacturing machine components and the target production
is 300 units per day. The company had been successfully attaining the target three months ago. Over
the last months, it has been observed that daily production varies between 220 and 250 units.
Identify the management functions to rectify the above situation. Briefly state the procedure of this
function. (3)
Q.9) Enumerate any 5 rights of a consumer under consumer protection Act 2019

OR

List any five remedies are available to consumer on complaints filed by him (5)

Q.10) State any five Development functions of securities exchange Board of India. (5)

Q.11) Atul- The assistant manager, vikas the marketing head and leena- The human resource
manager of Montac Enterprises Ltd. decided to leave the company.

The chief Executive officer of the company called the human resource manager, Leena requested
her to fill up the vacancies before leaving the organization. Leena suggested that her subordinate
miss Rama Wadhwa is very competent and trust worthy, if she could be moved up in the hierarchy,
she would do the needful. The chief executive officer agreed for the same. Miss Rama Wadhwa
contacted smith Recruiters who advertised for the post of marketing head of Montac Enterprises
Ltd. they were able to recruit a suitable candidate for the company. Atul vacancy was filled up by
screening the database of unsolicited applications lying in the office.

a) Name the internal/external sources of recruitment used by Montac Enterprises Ltd. to fill up
the above stated vacancies.
b) Also state any one merit of each of the above identified source of recruitment. (5)

Q.12) Sunita had been working as an assistant manager with Johnson enterprises for the last ten
years. She was very popular amongst her colleagues because of her commitment and dedication
towards the work. When the senior manager to her retired, all her colleagues thought that now
Smita would be promoted. But to everyone surprise the vacant post was filled by an outsider, Mrs.
Rita. Smita felt demoralised and her performance started declining. She would abstain herself often
and could not meet her targets.

Mrs. Rita was a good leader, who would not only instruct her subordinates but would also guide and
inspire them. She noticed Smita behaviour and felt that her performance could be improved. She
started involving Smita in decision-making issues related to the organization and made her a part of
high level joint-management committee. Smita was now punctual in office and her performance
started improving.

i) identify the function of management being performed by Rita

ii) name the element of the above function of management which helped Rita to improve
Smita behaviour
iii) state any three features of the element identifies in (ii) above.

OR

Smart Stationery Ltd. wants to raise funds of 40,00,000 for its new project. The management is
considering the following mix of debt and equity to raise this amount.

Capital structure I II III

Equity 40,00,000 30,00,000 10,00,000
Debt 0 10,00,000 30,00,000

Other details are as follows:

Interest rate on debt 9%

Face value of equity shares 100 each

Tax rate 30%

Earning before interest and tax (EBIT) 8,00,000

a) under which of the three alternatives will the company be able to take advantage of trading
on equity?
b) Does earning per share always rise with increase in debt? (5)