Commerce (English Medium) Class 12 - CBSE Important Questions for Business Studies

Answer the following question:
In the paint industry, various raw materials are mixed in different proportions with petroleum for manufacturing different kinds of paints. One specific raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paints Company is also facing this problem and because of this, there is a time lag between placing the order and the actual receipt of the material. But once it receives the raw materials, it takes less time in converting it into finished goods.

Identify the factor affecting the working capital requirements of this industry.

Answer the following question:
The Return on Investment (ROI) of a company ranges between 10 - 12% for the past three years. To finance its future fixed capital needs, it has the following options for borrowing debt:
Option ‘A’: Rate of interest 9%
Option ‘B’: Rate of interest 13%

Which source of debt, ‘Option A’ or ‘Option B’, is better? Give reasons in support of your answer. Also, state the concept being used in taking the decision.

Explain the following as factor affecting the requirement of working capital:

Business cycle

Explain the following as a factor affecting the requirement of working capital: 

Level of competition

State any four factors affecting the decision that determines the overall capital and the financial risk of the enterprise.

Answer the following question:
An investor wanted to incest RS. 20,000 in Treasury Bills for a period of 91 days. When he approached the Reserve Bank of India for this purpose he came to know that it was not possible.
Identify the reason why the investor could not invest in the Treasury Bill.

Differentiate between 'capital-market' and 'money-market' on the basis of:

Safety;

Answer the following question:
Why is the understanding of ‘Marketing Management Philosophies’ important?

Answer the following question:
‘Buy one get one free’ is printed on the label of the package of a mosquito repellant. State the labelling function being performed by this statement.

Answer the following question:
After acquiring the necessary knowledge and skills on starting an Aloe vera Farm. Ashok wanted to be the leading manufacturer of Aloe vera products worldwide. He observed that the products were expensive as the demand of the products was more than supply. He was also keen to promote methods and practices that were economically visible, environmentally sound, and at the same time protecting public health.
Ashok's main consideration was about the amount of money paid by the consumers in consideration of the purchase of Aloe vera products. He also thought that competitors' prices and their anticipated reactions must also be considered for this.
After gathering and analysing information and doing correct marketing planning, he came to know that the consumers compare the value of a product to the value of money which they are required to pay. The consumers will be ready to buy a product when they perceived that the value of the product is at least equal to the value of money which they would pay.
Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew that in the long run, the business will not be able to survive unless all costs are covered in addition to a minimum profit.
He examined the quality and features of the products of the competitors and the anticipated reactions of the consumers. Considering the same he decided to add some unique features to the packaging and also decided to provide free home delivery of the products.

The above case relates to a concept which is considered to be an effective competitive marketing weapon. In conditions of perfect competition, most of the firms compete with each other on this concept in the marketing of goods and services.
(1) Identify the concept.
(2) Explain briefly any four factors discussed in the above case related to the concept so identified.

Explain the following function of marketing:

Gathering and analysing market information

Explain the following function of marketing: 

Physical distribution

What is meant by 'Personal Selling'?

Explain Physical Distribution major components

Answer the following question:
Give the constitution of the District Consumer Disputes Redressal Forum under the Consumer Protection Act, 1986.

Answer the following question:
Sumit purchased an ISI marked washing machine of a famous brand ‘MG’ from TG Electronics Ltd. The shopkeeper asked him to wait for two days for the installation of the machine. His friend, Vivek, was very fond of experimenting with new electronic products. He told Sumit that there is no need to wait for the company’s representative to install the machine and that he could do it. So, both of them installed the machine without following the manufacturer’s instructions. Initially, the machine worked effectively and the wash was good. But after two days, the machine stared stopping in between the wash cycle. Sumit and Vivek tried their best to start the machine but failed in their efforts. Sumit, therefore, approached TG Electronics Ltd., which refused to provide any service on the plea that the installation of the machine was not done by the company.

1) State the responsibility which Sumit had to fulfill as an aware consumer to get the services of the company.
2) Explain briefly any two rights which Sumit could have exercised had he fulfilled his responsibility identified in part (a).

Explain the following rights of a consumer as provided under Consumers Protection Act 1986 :

Right to be informed;

Explain the following rights of a consumer as provided under Consumers Protection Act 1986

Right to seek redressal

Explain the following rights of a consumer as provided under Consumer Protection Act 1986:

Right to Safety;

Explain the following rights of a consumer as provided under Consumer Protection Act 1986:

Right to be Heard.