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2351.

Name four important methods used for training.

Answer»

(i) Orientation Training, 

(ii) Job Training,

(iii) Refresher Training 

(iv) Promotional Training

2352.

Justify either for or against by giving two reasons for each of the following:(a) Aggressive selling is the only way a company can survive in a highly competitive market.(b) Real costs must be recorded in the books of accounts.(c) Training reduces employee turnover.(d) Tea and coffee can be sold on sale-on approval or return basis.(e) Increased advertising in recent times has resulted in lower prices of newspapers.

Answer»

(a) For: Yes, it is true because through agressive selling only you can get more customers to exchange their money for your products and services by proving yourself superior among the competitors. To achieve this, new marketing and selling techniques are used to explore the needs of customers, to get their maximum satisfaction. 

(b) Against: Real cost cannot be recorded in the books of accounts because value of this cannot be measured in terms of money. It means sacrifice, discomfort and pain involved in doing the business. 

(c) For: Yes, training reduces employee turnover as it increases the efficiency of worker which boosts the morale of the employees. This ensures employee loyalty, long term growth and a lifetime association with the organisation. 

(d) Against: Tea and coffee cannot be sold or sale on approval or return basis because under this arrangement of sale an individual or a company interested in purchasing a specific item is allowed to use the item for a given length of time. At the end of that time if the individual is satisfied with the item they agree to purchase otherwise it has to be returned, but in the case of tea and coffee nothing could be returned, after the consumption (if not satisfied) and if, consumed partially it will be difficult to do the valuation of the consumed portion. 

(e) For: Yes, increased advertising in recent times has resulted in lower prices of newspapers, as now a days advertising has become a great source of income for newspapers which has resulted in increase in its circulation.

2353.

(a) On the basis of ownership, distinguish between a Product and a Service. (b) Explain in brief the term ‘Parity Princing’. (c) How does the Central Bank control credit through Statutory Liquidity Ratio. (d) Explain the terms Surplus and Deficit in an Income and Expenditure Account. (e) With reference to the Bhopal Gas Tragedy: (i) Name the company responsible for the tragedy. (ii) Identify the poisonous gas that caused this ghastly man made disaster.

Answer»
ProductService
Ownership of a product is transferable.
e.g- When a T.V is bought, the ownership  is transferred from the seller to a buyer
Ownership of service is not transferable 
e.g - Taking house on a rent, won't transferred to ownership from the seller to you.

(b) Parity Pricing: Parity Pricing concept that the selling price of a product or produce should.go up in the same account as the peices of the inputs used in product. It means adjustment of price according to the competitors. It is best suitable for a highly competitive market. 

(c) Statutory Liquidity Ratio (SLR): Statutory liquidity ratio refer amount that the commercial banks require to maintain in the form of gold or government approved securities before providing credit to the customers. SLR is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit. 

(d) Surplus: If the income of a non-trading concern exceeds over its expenditure, it is known as surplus. 

Deficit: If the expenditure exceeds the income, it is known as deficit. 

(e) (i) The company responsible for the Bhopal Gas Tragedy – Union Carbide India Limited. 

(ii) Methyl Isocyanate (MIC).

2354.

Distinguish between A Trading Account and a Profit and Loss Account.

Answer»
Trading AccountProfit and loss Account
Trading account is prepared to calculate the gross profit (or loss).The result of the trading account in the form of gross or gross loss is transferred to profit & loss account.Profit & Loss account is prepared to calculate net profit made or net loss incurred by a business enterprise for a given accounting period. The form of transferred to capital account.

2355.

(a) What is Food Adulteration? Give an example.(b) Mention the elements of Public Relations.(c) Why should an Income and Expenditure Account be prepared? (d) Give two basic differences between Informaive advertising and Persuasive advertising. (e) What are ‘contingent liabilities’?

Answer»

(a) Food Adulteration: It means deliberate mixing of foreign particles of low quality which are undesirable in the food items, to increase the quantity. e.g. —Mixing of stone pieces identical to Wheat, Rice and Pulses. 

(b) Public Relation Elements: 

(1) Human Relations, (2) Empathy, (3) Persuasion, (4) Dialogue. 

(c) Income and Expenditure account is prepared to know the surplus or deficit arising from the activities of a non-trading concern during a year.

(d) 

Informative AdvertisingPersuasive Advertising
1. Informative advertising is commonly used to drive “primary demand” for new product and service categories.1. The goal of persuasive advertising is to drive selective demand for specific products or service
2. It is used to emphasize the product name, product benefits and its possible uses to the prospective market.2. It is used after product introduction to customers. Its main goal is to enhance selective demand for the product.

(e) Contingent Liabilities: These are those liabilities which become payable on the’happening of an event. 

e.g. — bills discounted but not matured, guarantee for a loan. These are also known as anticipated liabilities.

2356.

Distinguish between Capital Receipts and Revenue Receipts.

Answer»
Capital ReceiptsRevenue Receipts
1. Capital receipts refer to the receipts of a nonrecurring nature such as additional capital from owners, loans raised by the firm and money obtained from a sale of fixed assets.Revenue receipts are the receipts obtained during the normal course of business operation and are of a recurring nature. Sale proceeds of goods and services, interest received, dividend received, rent received are examples of revenue receipts.
2. Capital receipts are shown on the liabilities side of the Balance Sheet.Revenue receipts are credited to the Trading or Profit and Loss Account.

2357.

Distinguish between Shareholders and Customers.

Answer»
StakeholdersCustomers
1. Stakeholders supply financial capital or human capital.Customer do not supply any capital
2. Stakeholder do not buy goods or services from the organisation.Customers buy goods or services from organisation.

2358.

Distinguish between Direct Costs and Indirect Costs.

Answer»
Direct CostsIndirect Costs
1. Direct Costs are those costs which an be easily, directly an wholly related to a particular cost unit or cost centre.Indirect costs are those costs which cannot be identified easily, directly and wholly with a particular cost unit or cost centre.
2. These consist of direct material coast direct labour cost and direct expenses.These comprise indirect materials, indirect labour and indirect expenses. Indirect costs are also known as over heads.

2359.

Give one difference between Direct labour costs add Indirect labour costs.

Answer»
Direct Labour CostsIndirect Labour Costs
Labour which is directly consumed in the process of production. It is also known as productive or operating labour.
e.g.—Wages
Labour which indirectly helps in the production process, which cannot be easily traced.
e.g. —Salesman Salary.

2360.

Describe the role of Trade Union in a business concern.

Answer»

Trade Union play role in business firms by following ways : 

1. Protection : Trade union resist retrenchment of their members and help to ensure steady employment for workers. It safeguard workers against all sorts of exploitation by the employer and political parties. Union serve as a check on arbitrary action by employers. 

2. Representation : Trade union represent working class in various national and international forums such as Indian Labour Conference and International Labour Organisation. 

3. Sense of Belongingness : Trade unions generate a spirit of self respect and self-reliance among workers. A ordinary worker has little sense of belongingness in modem industry. He can gain social respect by joining a union. 

4. Participation : Trade unions work for achieving a better say of workers in the management of matters which directly influence the interests of workers. 

5. Education : Unions make workers conscious of their rights and duties and aware of the need for technological changes. Trade unions make arrangements for the education of workers and their family members.

2361.

Explain any five advantages of air transport over water transport. 

Answer»

The following are advantages of air transport over water transport : 

1. Natural gift : The sky is a gift of nature and an aeroplane can fly through space without any hindrance. Air transport does not require large investment for construction of tracks. 

2. Highest speed : Air transport is best suited for perishable and other goods requiring immediate or prompt delivery. It is by far the fastest mode of transport. People can easily move from one place to other place which saves the valuable time for busy businessmen. 

3. Suitable : Air transport is suitable for light goods of high value. During natural calamities such as earthquakes, floods, it is the only mode of transport which can provide relief assistance to the victims. 

4. Efficient Service : Air transport provides regular and efficient service. Dining emergencies, deviation from normal route can be made. 

5. Shortest Route : An Air transport adopts shortest route and can reach places inaccessible by. other means of transport. It can fly over deserts, high seas, forests and mountains.

2362.

The system of Teacher Education holds the key responsibility in the making of professionally qualified and competent teachers. An effective teacher must have a positive attitude towards teaching as a profession, commitment and dedication towards teaching as a function. A profession is a specialized occupation involves specific orientation and training. The purpose of a code of professional ethics for academic staff is to provide guidance in exercising the ethical responsibilities inherent in a profession.(a) Suggest any two types of training to enhance teachers’ proficiency.(b) Suggest any two primary professional obligations of school teachers towards students.

Answer»

(a) The two types of training to enhance teacher proficiency are: 

1. Job Training: Such training is given to make the employees proficient in performing the operations of the job. The new entrants are trained to handle the equipments and raw-materials correctly and perform the job operations efficiently. Old employees are acquainted with the latest methods of executing the jobs. 

2. Induction Training: Induction or orientation training refers to the training given to the new employees. The training is imparted by a competent and experienced executive, who provides knowledge about the work, tools, equipments, techniques and situational problems or total infra-structure. The object is to make the employee aware and believe in the ideologies of the working.

(b) The two primary professional obligations of school teachers towards students are: 

1. To train the students in the least possible way to face the world. 

2. Effective education system improves the self-confidence of the students. They take greatest interest in their work and feel a sense of security. Effective education improves the personality and motivate all other students.

2363.

What do you mean by Group Life Insurance ? Explain three main features of Group Life Insurance.

Answer»

Group Life Insurance is a scheme which provides insurance cover on the lives of several persons under one insurance policy. It is provided to all employees without any evidence of insurability. For the insurance company, cost of administration is low as only one policy is issued for several persons. In case of injury or death to an employee, the claim received by the employer is paid to the employee. 

The main features of Group Life Insurance are : 

1. Group Life Insurance is basically a contract between the insurance company and employer. The policy issued to the employer is called master contract.

2. The amount of premium is payable at a flat rate without any regard of the age and salary of the employees. 

3. It provides risk coverage to the employees as long as they remain in the service of the employer.

2364.

Distinguish between Direct Costs and Indirect Costs

Answer»
Basis of DifferenceDirect CostsIndirect Costs
1. RelationshipDirectly and wholly related to a particular unit or centre of cost.Not directly and wholly related to a parituclar unit or centre of cost.
2. Components(a) Direct Meterial ;
(b) Direct Labour;
(c) Direct Expenses.
(a) Indirect Meterials;
(b) Indirect Labor ;
(c) Indirect Expenses.
3. ExamplesSugarcane used in a sugar mill etc.Fuel, wages of store keeper etc

2365.

Distinguish between Public Warehouses and Bonded Warehouses.

Answer»
Public WarehousesBonded Warehouses
1. The warehouses which are run to store goods of the general public are known as public ware-houses.These warehouses are used to store imported goods for which import duty is yet to be p
2. An individual, a partnership firm or a company may own these warehouses.These are generally owned by dock authorities and found near the ports.

2366.

Distinguish between A Private Warehouse and a Public Warehouse.

Answer»
Basis of DifferencePrivate Ware housePublic warehouse
1. MeaningPrivate warehouse are owned by manufactured and traders to store the goods produced or purchased by them until they are sold out.Public warehouses may be owned by Government public trusts and other public authorities.
2. LocationPrivate warehouses are generally located in rural and sub- urban areas where space is available at low cost.Public warehoses are located in places which are well connected by roads, railways etc.
2367.

Distinguish between  Overdraft and Cash credit

Answer»
Basis of DifferenceOverdraftCash  credit
1. EligibilityOnly current account holders are eligible for overdraftPersons/ organisations not holding current accounts are eligible for cash credit.
2. PeriodIt is for few days.It is for a longer period.

2368.

Distinguish between  Recruitment and Selection

Answer»
Basis of DiffernceRecruitmentSelection
1. MeaningIt involves searchingfor prospective  employees and stimulating them to apply for jobs.It involves comparing and choosing suitable candidates.
2. ObjectiveTo create a pool of candidates.To choose the right person for every jobs

2369.

Distinguish between  Internal and External stakeholders

Answer»
Basis of DifferenceInternal StakeholdersExternal Stake holders
1. MeaningInternal Stakeholders are those individuals and groups who influence the enterprise form inside or within. They are the members of the organisation.External stakeholders are those individuals are groups who are a part of teh firms eternal enviroment. They are not it members.
2. ConstituentsThey consits of employess and employers (owners and managers).They consist of suppliers customers, competitors government etc.

2370.

Distinguish between Private warehouse and Public warehouse

Answer»
Basis of DifferencePrivate Ware housePublic warehouse
1. MeaningPrivate warehouse are owned by manufactured and traders to store the goods produced or purchased by them until they are sold out.Public warehouses may be owned by Government public trusts and other public authorities.
2. LocationPrivate warehouses are generally located in rural and sub- urban areas where space is available at low cost.Public warehoses are located in places which are well connected by roads, railways etc.

2371.

State any two expectations of suppliers from a business organisation.

Answer»

Expectations of suppliers from the organisation are as given below: 

1. Suppliers expect that the organisation is going to make purchases from them on reasonable terms and not to exploit them. 

2. Suppliers expect that reasonable time should be given to them by the organisation for the supply of goods as the processing and packing of order consumes time before they: aye delivered to the buyer.

2372.

 Distinguish between Savings Account and Current Account

Answer»
Saving AccountCurrent Account
1. To develop habit of saving.To carry on business dealings.
2. Restrictions on number of withdrawl.No restrictions on number of withdrawls

2373.

Explain any five measures taken to overcome barriers of communication.

Answer»

Following are the measures taken to overcome the barriers of communication : 

1. Well Drafted Message : The message to be transmitted must be clear and concise. It is very essential to know the audience for whom the message is meant. The message should be adequate and appropriate for the purpose of communication. 

2. Proper language : The message should be expressed in simple and easily understood language. The words and symbols used to convey the message should match the reference and understanding of the receiver. This will help to minimise the semantic barrier. 

3. Consistency : Communication should be consistent with the goals and policies of the organisation. There should be no contradiction between words and actions. 

4. Gestures and tone : Words in the message must be reinforced through appropriate gestures or facial expressions. The tone used should take into account the physical environment and human conditions. 

5. Feedback : Communication is complete when the response or reaction of the receiver becomes known to the sender. Therefore, the receiver should be encouraged to express his reactions. The feedback should be analysed and used to improve future communications.

2374.

(a) Mention any two advantages of wind energy. (b) State any two uses of Balance Sheet. (c) Mention any two circumstances when a Bank can refuse payment of a cheque. (d) What is meant by consumer education ? (e) Mention the form elements of Marketing mix.

Answer»

(a) Advantages of wind energy : 

• It is a pollution free, clean energy source. 

• It is totally free source of energy. 

(b) Uses of balance sheet are : 

• A balance sheet reflects the capital of the company showing its strength or weakness. One can use a balance sheet to gain insight of a company and its financial operations. 

• Tell you about company’s worth; that is, how much would be left if all assets were sold and debts were paid off. 

(c) A bank can refuse a payment of cheque in the following circumstances : 

• If the signatures of the borrower on the cheque differ from the signatures done by him in the account opening form. 

• If the cheque issued date is more than 3 months old. 

(d) Consumer education means : 

• providing resources and information to the consumers like price and trade practices, educating customers as how to make better buying decisions that directly affect the functioning 

(e) Elements of marketing mix are : 

1. Product 

2. Price 

3. Promotion 

4. Place

2375.

(a) Explain any two types of deposit accounts.(b) Explain five main characteristics of Communication.

Answer»

(a) 

1. Savings bank account: For savings deposits an account is opened with the bank which is called savings account. This account is opened for non-trading customers with small amounts, say Rs. 300 without cheque facility, Rs. 500 with cheque facility. The main aim of these accounts is to develop the saving habit among common people. Such an account can also be opened by two persons in joint names. The account holders are allowed to withdraw money by cheque or by withdrawal form subject to the condition that they maintain a minimum balance in their accounts. Interest is paid on minimum monthly balances and credited to the respective accounts yearly or half yearly. 

2. Recurring deposit account: This deposit has been started to encourage those people to save who cannot give large deposit in lumpsum. Recurring deposit can be opened with small amount over a specified period. The depositor keeps on depositing a certain sum of money every month. The number of monthly installments may be 12, 24, 36, 48, 60 and so on. After the expiry of the period, the depositor gets back his money along with interest thereon. Cheques cannot be drawn to withdraw money from a recurring deposit account. 

(b) Five main characteristics of communication are: 

1. Continuous process: Communication is an on-going process. Group activity requires regular flow of information and ideas among the members of the group. 

2. Pervasive function: Communication is essential in all organisations and at all levels of authority. It is all pervading. 

3. Circular process: Communication involves a circular flow of messages. The response to the message, called feedback, requires another message to be transmitted by the receiver of the original message. The response indicates the impact of communication. 

4. Influencing human behaviour: The main purpose of communication is to influence human behaviour. It is a means of creating interpersonal relations. A manager creates motivation and loyalty among his subordinates by sharing information, opinions and feelings with them. 

5. Mutual understanding: The basic purpose of communication is to create mutual understanding. Managers communicate to influence human behaviour and to obtain the desired response from employees. Communication is a means and not an end itself.

2376.

Explain expectations of the Government from a business organisation.

Answer»

Every Stakeholder group expects something from a business organisation. 

The expectations of Government are as follows : 

1. They expect to follow the laws and regulations of the country. 

2. They expect to pay all taxes honesty, regularly and in time. 

3. They expect to avoid corrupting public servants. 

4. They expect to make proper use of scarce resources. 

5. They expect to assists in solving national problems, like poverty, unemployment, unbalanced regional growth etc. 

6. They expect to avoid monopoly and concentration of economic power.

2377.

Distinguish between Variable Cost and Semi-Variable Cost. 

Answer»
Variable CostSemi-Variable Cost
1. Variable costs are those costs which vary in amount which changes in the level of output or activity. Such costs increase and decrease in same proportion in which the level of output increases or decreases.Semi variable costs are those costs which vary but not in direct proportion to changes in the volume of production. They are a combination of fixed and variable costs.

2378.

(a) Explain any two types of deposit accounts. (b) Explain five main characteristics of Communication.

Answer»

(a) 

1. Savings bank account: For savings deposits an account is opened with the bank which is called savings account. This account is opened for non-trading customers with small amounts, say Rs. 300 without cheque facility, Rs. 500 with cheque facility. The main aim of these accounts is to develop the saving habit among common people. Such an account can also be opened by two persons in joint names. The account holders are allowed to withdraw money by cheque or by withdrawal form subject to the condition that they maintain a minimum balance in their accounts. Interest is paid on minimum monthly balances and credited to the respective accounts yearly or half yearly. 

2. Recurring deposit account: This deposit has been started to encourage those people to save who cannot give large deposit in lumpsum. Recurring deposit can be opened with small amount over a specified period. The depositor keeps on depositing a certain sum of money every month. The number of monthly installments may be 12, 24, 36, 48, 60 and so on. After the expiry of the period, the depositor gets back his money along with interest thereon. Cheques cannot be drawn to withdraw money from a recurring deposit account. 

(b) Five main characteristics of communication are: 

1. Continuous process: Communication is an on-going process. Group activity requires regular flow of information and ideas among the members of the group. 

2. Pervasive function: Communication is essential in all organisations and at all levels of authority. It is all pervading. 

3. Circular process: Communication involves a circular flow of messages. The response to the message, called feedback, requires another message to be transmitted by the receiver of the original message. The response indicates the impact of communication. 

4. Influencing human behaviour: The main purpose of communication is to influence human behaviour. It is a means of creating interpersonal relations. A manager creates motivation and loyalty among his subordinates by sharing information, opinions and feelings with them. 

5. Mutual understanding: The basic purpose of communication is to create mutual understanding. Managers communicate to influence human behaviour and to obtain the desired response from employees. Communication is a means and not an end itself.

2379.

(a) What is food adulteration ? Give an example. (b) State the importance of ‘persuasion’ as an element of Public Relations. (c) Explain two advantages of opening a bank account. (d) What is meant by parity pricing ? (e) What do you mean by Office and Administrative Overhead ?

Answer»

(a) Food Adulteration refers to the process by which the quality or the nature of a given food is reduced through addition of adulterants or removal of vital substance. Food adulterants are inferior chemical substances present in food that cause harm or is unwanted in the food. A common example of food adulteration is mixing of papaya seeds in pepper. Mixing of sweet potato in ghee is another common example of food adulteration. 

(b) Persuasion refers to the process by which a person’s attitudes or behaviour are influenced by communication. Persuasion helps in changing the hostile opinion. It helps in understanding the needs and expectations of customers from a particular product and also addressing their queries. 

(c) Advantages of opening a bank account : 

• There is no need to keep huge cashes in business place or home.

• The cash deposited in the bank earns an interest. 

(d) Parity pricing means increasing selling price of a product or service proportionately or rather by the same amount as the increase in the prices of raw materials or inputs. 

(e) Office and Administrative overheads are those costs which are incurred for the overall administrative work of the organization. 

They include : 

• Indirect materials such as office supplies, stationery and printing items, brooms etc. 

• Indirect labour such as salaries payable to staff. 

• Indirect expenses such as lighting, rent/insurance of office.

2380.

Explain any two leading money functions of the commercial bank.

Answer»

Primary functions of commercial banks in money lending : Money deposited by the customers in the banks is disbursed to the needy persons for productive purposes. This function is very important because the economic development of the country mainly depends on the credit schemes of banks. Banks lend money in different forms. 

The most popular forms of lending are : Overdraft An overdraft is an arrangement by which the customer is permitted to draw money over and above the credit balance in his account. The customers have to pay interest for the overdrawn amount. 

Cash Credit 

Cash credit is a short-term credit given to the businessmen for meeting their working capital requirements. It is normally made against certain security. The banker opens the cash credit account in the name of the borrower and permits him to withdraw money from time to time up to a certain limit fixed by the value of stocks available in the business premises of the borrower. The borrower withdraws money from the cash credit account as per his requirements. Interest is charged only on the amount actually withdrawn by the account holders from the account. This type of loan is very popular among businessmen in India. 

Loans and Advances 

These are direct loans given to all type of customers. These loans are given against the security of the movable and immovable properties. The amount of loan is paid as cash, or customer’s account is credited with it so that he can withdraw the amount from his account at any time.

2381.

Explain three professional and two social significance of Human Resource Management.

Answer»

Professional significance : 

(i) HRM provides maximum opportunities for personal development of each employee in the organization. 

(ii) It helps in maintaining healthy relationships among individuals, and different work groups. 

(iii) Allocates work properly to the employees. 

Social Significance : 

(i) Provides suitable employment that provides social and psychological satisfaction to people. 

(ii) Maintains a balance between the jobs available and the job seekers in terms of numbers, qualifications, needs and aptitudes.

2382.

(a) Human Resource Management is a challenging function. (b) Every transactions has two effects. (Answer with reference to the Concept of Accounting) (c) Ethics has no role in Public Relations. (d) Today’s Marketing Concept is known as Consumer Oriented Concept. (e) A distribution channel serves as a link between producers and consumers.

Answer»

(a) Yes. Human Resource Management is a challenging function. One of the challenges for the HRM is related to the factors that are located inside the organization. These factors include competitive position and flexibility organizational restructuring and issues of downsizing, the exercise of self-managed teams, development of suitable organizational culture etc. 

(b) Yes, every transaction has two effects. The dual effect principle is the foundation or basic principle of accounting. It provides the very basis for recording business transactions into the records of a business. This concept states that every transaction has a dual or double effect and should therefore be recorded in two places. This is the beginning of the double entry book keeping system. The basis of this principle is that every transaction that a business does has two effects. 

If we take a basic transaction, A buys a vehicle for ₹ 5,00,000, we can break this down to see that there is two effects. 

Effect 1 – A has ₹ 5,00,000 less in his bank. 

Effect 2 – A has an asset that has a cost of ₹ 5,00,000. 

(c) Ethics has a role in public relations. Ethics are important to help gain public trust, retain employees and can lead to greater innovation in the industry. Ethics include the professional values of advocacy, honesty, expertise, independence, loyalty and fairness. Ethical values include the free-flow of information, competition, disclosure of . information, safeguarding confidence, conflicts of interest and enhancing the profession. While we often deal with the provisions of conduct as PR professionals, understanding the underlying values is a key to successful ethical practice. 

(d) Yes, marketing concept is consumer oriented concept. The marketing concept is the use of marketing data to focus on the needs and wants of customers in order to develop marketing strategies that not only satisfy the needs of the customers but also accomplish the goals of the organization. 

The marketing concept is oriented toward pleasing customers (be those customers organizations or consumers) by offering value. Specifically, the marketing concept involves focusing on the needs and wants of the customers so the organization can distinguish its product(s) from competitors’ offerings. 

(e) A distribution channel serves a link between producers and consumers. A channel of distribution is the route or path along which goods move from producers to ultimate consumers. If there is no channel of distribution, the goods cannot reach from manufacturer to wholesaler and wholesaler to retail and retailer to consumers.

2383.

Briefly explain any five utilities of a budget.

Answer»

Utilities of a budget are: 

1. Operationalise plans: Budget makes business plans operational. They serve as a means of implementary different plans, goals of an organisation and its basic plans cannot be concerted into performance without budgets and other operational plans. 

2. Higher efficiency: Budget bring efficiency and economy in the working of a business firm. They help management in obtaining the most profitable combination of different factors of production. 

3. Sense of responsibility: Budget puts a sense of responsibility on the shoulders of management. Budget motivates them to act responsibly and escape from extravagance. 

4. Source of motivation: The projected cost cuts results into the profit expansion. This acts as the motivation and leads an enterprise to stick to the budget. 

5. Co-ordination: The various budgets made in the organisation are to be coordinated and should follow the same objectives. Hence it makes co-ordination mandatory. 

6. Delegation of authority: The budget is prepared by the management but the responsibility to carry on the budget is vested to the respective department. Thus the budget helps to delegate the authority and fix the responsibility. 

7. Effective control: Management keeps effective control and help the various departments in the organisation to keep an effective control and check on extravagance. 

8. Sound planning: The good budget helps to have sound planning. This is also necessary for the organisation to have a sound planning structure. (any five)

2384.

Beauty Solutions Ltd., a reputed firm producing cosmetics chose the simplest channel of distribution. It opened its own retail shops throughout the country to sell a wide range of cosmetics and beauty products. This channel of distribution has become very popular toddy as producers experience several benefits. With reference to the above:(a) State the type of distribution channel used by Beauty Solutions Ltd. and explain why this channel has become increasingly popular? (b) Discuss any three methods that can be used as channels of distribution other than retail outlets.(c) Mention five factors that Beauty Solutions Ltd. must consider while deciding its channel of distribution.

Answer»

(a) The type of distribution channel used by Beauty Solutions Ltd. is Direct Selling i.e., short-channel. Direct selling means the producer directly sells goods to ultimate consumers and there is no middleman or intermediary. Short channel of distribution has become increasingly popular because this provides an ease base to the manufacturers to promote their goods to a large bunch of customers. This channel helps them to get direct contact with their customers through their address and telephones and through this they get a proper and an appropriate feedback. The maximization of profit also becomes possible because no other handling or transportation costs are included. Therefore, short channel distribution is good for the market-competition as well and helps the customers to find their perfect choice. 

(b) The other three methods that can be used as channels of distribution other than retail outlets are: 

1. Door-to-Door Salespersons: The producer employs sales force who approach customers at their residences/offices, book orders and deliver the goods. Sales call is the original and the oldest form of direct marketing. Many companies such as Avon, Amway are also using this method. 

2. Tele marketing: The product is heavily advertised on T.V. The custo-mers who watch the advertisements and feel interested can place their orders by telephone, mail or fax. It has become a major direct marketing tool. 

3. Catalogue Selling: In this method, the seller mails one or more product catalogues to selected persons who are likely to place an order. Direct mail is a popular medium because it permits high degree of selectivity. 

(c) The five factors are: 

1. Perishability: The cosmetics are of perishable nature, that is they get destroyed soon and cannot handle repeated handling. So for this, the Beauty Solution Ltd. should choose short channels i.e., selling channel of distribution. 

2. Bulk and Weight: Beauty Solution Ltd. will choose short channel for distribution, because cosmetic goods are bulky and weighted because they are manufactured on large stock basis. This also minimized handling costs. 

3. Promotion: Beauty Solutions Ltd. can promote its products well among the customers. With the short channel of distribution, promotion of cosmetics becomes easier. Maximizing the Profit: Short channel of distribution i.e., direct selling helps to maximize the profit by not including any expenses. 

4. Financial Resources: A large and reputed firm like Beauty solution Ltd. with sufficient funds can established its own retail shops to sell directly to consumers. But a small or weak enterprise which cannot invest money in distribution has to depend on middlemen for marketing its product.

2385.

Harish Sharma and Surendra Doshi have decided to start a Private Limited Company to carry out repairs andjrenovation of buildings. They call their company ‘S D Renovators (P) Ltd. Company. For their investment in tools, equipments and office space they have decided to take a loan for 8 years. They also approach a bank to open an account in the name of the company. They need a manager to oversee their operations efficiently. They place an advertisement in the newspaper for this purpose. They also need to hire a labour force for execution of repair work. With reference to the above: (a) What type of account should be opened? Explain any four features of that Account.(b) Explain any two external sources of recruitment that are required to hire labour.(c) On receiving applications for the manager’s post, describe the procedure to select the right candidate.

Answer»

(a) The type of account should be opened is current A/c. Current A/c is one into which money may be deposited and out of which it may be drawn at any time. Current A/c is basically operated by the business houses. 

Features of Current A/c: 

1. Deposits in current account are payable on demand. Money from these deposits can be withdrawn by cheques without any restriction on the amount and number of withdrawls made. 

2. Generally, banks do not provide interest on these accounts. 

3. Overdraft facilities are available only on this type of account. 

4. Banks provide various services to the current account holders, such as making payment through cheques, collection of cheque payments, issuing drafts on behalf of the account holders, etc. For providing these services, bank charged services charges. 

(b) The two external sources of recruitment that are required to hire labour are: 

1. Gate Hiring: Small firms make recruitment at the factory gate. Workers gather at the factory gate after reading the notice of vacancies. The suitable candidates are selected. This method is used to fill temporary and casual vacancies. 

2. Unsolicited Applicants: Persons in search of employment visit offices of companies. They carry their resume and certificates. These persons may be considered if there is a vacancy. Unsolicited applicants are also known as casual callers. 

(c) After receiving application for the manager’s post, the procedure to select the right candidate is as follows: 

1. Preliminary Interview: Preliminary interview is the first occasion when candidates come into the contact with the company’s officials. The list of jobseekers are received by the receptionist or some other official who conducts a brief interview of the candidates to determine whether it is worthwhile for the candidate to fill up the application form. The candidates who dte unfit for the job are rejected. 

2. Application form: The candidates who succeed in preliminary interview are asked to fill in the prescribed application form. The application form provides a written record of the name, address, age, qualifications, work, experience etc. of a candidate. 

3. Employment Tests: These tests are based on the assumption that work behaviour of a person can be practised by sampling it. Tests are more useful for identifying unsuitable candidates than for selecting appropriate candidates. 

4. Selection Interview: Interview serves as a means of checking the information obtained through application form and tests. It also provides an opportunity to the candidate to get information about the job and the company. 

5. Checking References: Candidates are generally required to give names and addresses of two or three persons from whom information about the candidate may be obtained. These persons are called ‘references’. 

6. Medical Examination: A physical examination of the candidates is necessary to ensure that they are physically fit for the job. Such an examination also helps to protect the employer against the risk of claims for compensation from individuals who already suffer from disabilities and disease. 

7. Final Approval: The candidates who are short listed after medical examination are finally approved by the head of the department in which they are to work.. 

They are issued appointment letters and/or service agreements are made with them.

2386.

Define‘cognitive development’.

Answer»

Cognitive development: It is basically the development of the brain of a child. It develops the ability of the brain to think and find answer or we can say solution of problems. This type of development is very necessary for the child.

2387.

State any two differences between growth and development.

Answer»
GrowthDevelopment
• Growth is measurable.• Development is not measurable. It can be felt and observed only.
• It stops after a certain age.• It continues till death.

• Growth and development are related to each other. When a body grows in size, there is an increase in his capacity to do work. But sometimes development takes place without growth. e.g., if the physical growth is stunned, the person may have better mental, social and other developments.

2388.

Give two differences between growth and development.

Answer»

Difference between Growth and Development: 

• Growth is measurable while development is not measurable. Development can be felt and observed only. 

• The growth stops after a certain age whereas development of the body continues till death. 

• Growth and development are related to each other. When a body grows in size, there is an increase in his capacity to do work. But sometimes development takes place without growth, e.g., If the physical growth is stunned, the person may have better mental, social and other developments.

2389.

What is meant by positive peer pressure ?

Answer»

Positive Peer Pressure: Positive peer pressure in general mean the positive energy given by the peers to the adolescent. It is the ability which is used to develop a healthy friendship and a good peer relationship. This all depends upon the adolescent’s self-reliance and self-identity. Peers can often listen, accept and understand the challenges, frustration of the adolescent.

2390.

Define cognitive development in a child.

Answer»

Cognitive development: Cognitive development is basically the development of the brain of a child. It develops the ability of the brain to think and find answer or solution of problems. This type of the development is very necessary for the child.

2391.

Mention any two characteristics of a pay-in-slip.

Answer»

Characteristics of Pay-in-slip : 

(i) Pay-in-slip is a type of slip or form which is used by a person to deposit his money/cash or cheque in the bank. 

(ii) It contains some useful information which should be filled by the person. 

These are :

• Date 

• Account Number 

• Name of the Account holder 

• Branch name/Bank 

• Signature

2392.

What are convenient foods?

Answer»

Convenient foods: Convenient foods is another food category in which food is semi processed and stored. This method increase the life and ease of preparation of the food. These types of the food include juices, jams, pickles and frozen peas. Do not use such foods in routine because such food are heavily processed and lost their nutritional value.

2393.

What are food fads ?

Answer»

Food fads: Food fad is an pattern of food behaviour which is unusual and which has no factual basis. People interest for a short time.

2394.

Name two important chemical preservatives permitted for food preservation.

Answer»

Chemicals prevent the growth of the microorganisms. Jam, Pickles also preserved by adding chemicals like salt, vinegar, spices, sugar. 

Potassium metabisulphite and sodium benzoate are used as preservatives for ketchup and squashes.

2395.

(i) What is understood by biodegradable waste ? (ii) State one source of gaseous waste.

Answer»

(i) Biodegradable waste is a type of waste which can be broken down in a reasonable amount of time, into its base compounds by micro organisms and other living things regardless of what those compounds may be. 

(ii) Release of smoke, ashes and aerosols from chimneys of factories, increase CO2. Methane comes out from cattle shed. Swamps, coal mines etc. Volcanic erruptions gives out SO2.

2396.

(i) Mention any two sources of waste. (ii) What are Biodegradable waste ?

Answer»

(i) Two sources of wastes are : 

1. Domestic Waste 

2. Industrial Waste 

(ii) Biodegradable Waste: Waste produced by plants and animals, kitchen, paper, green waste etc that can be broken down in a reasonable amount of time through microbial activities of fungi and bacteria.

2397.

How can waste be reused? Explain with the help of an example.

Answer»

Waste can be reused by recycling. 

For example, old paper can be recycled and used again.

2398.

Mention one way in which waste accumulation has an effect on the following:1. Aquatic life2. Terrestrial life3. Landscape

Answer»

1. Plastics dumped into ocean can affect the marine life seriously. Plastic items such as bottles and bags could choke and suffocate the sea animals, as they eat them thinking that they are food. Plastics are known to be a major cause for the death of turtles, as they swallow the floating bags, mistaking them for jelly fish. 

2. Pollutants of waste enter the environment and become a part of food chain which accumulates in the bodies of organisms at different levels. For example, insecticides and pesticides used by the farmer mix with the water. Animals drinking that water may get infected. Plants growing in that area may absorb these chemicals and get infected. Humans consuming these plants may also get infected. 

3. (i) When the waste is dumped in an improper way, the landscape of the area gives unpleasant look. 

(ii) The uncontrolled dumping of urban waste damages the beauty of the countryside.

2399.

Explain briefly the meaning of the following terms: (i) Composting. (ii) Incineration. (iii) Segregation.

Answer»

(i) Composting: It is a process that involves decomposition of organic waste into humus known as compost which is a good fertilizer for the plants. 

(ii) Incineration: It is a process of controlled high temperature oxidation of primary organic compounds that release thermal energy and produce carbon dioxide and water. 

(iii) Segregation: The waste from residential areas, hotels and restaurants, office complex and commercial areas must be segregated at source into different categories of biodegradable and non-degradable waste, this process is called Segregation.

2400.

What do you mean by the following terms?1. Segregation. 2. Composting. 3. Dumping.

Answer»

1. Segregation refers to the separation of waste into different categories of waste. Segregation depends upon the waste disposal technique. The most popular segregation is biodegradable and non-biodegradable. 

2. Composting is a biological process in which micro-organisms, mainly fungi and bacteria, convert degradable organic waste into humus-like substance. 

3. Dumping is an activity of depositing waste in an area.