Business Studies: CUET Mock Test - 7

Principles of Management and Principles of Pure Science are different in the following ways:
(i) Principles of management are not as rigid as Principles of pure sciences.
(ii) Principles of management deal with human behaviour and cannot be tested in laboratories like the principles of pure science.
(iii) Principles of management are general guidelines whereas Principles of pure sciences are specific.

During the organizing process, managers coordinate employees, resources, policies, and procedures to facilitate the goals identified in the plan. Organizing is highly complex and often involves a systematic review of human resources, finances, and priorities.
Organizing is a very broad term, it actually a very complex term and often misinterpreted.

Time study is work derived by F.W. Tyler. In this method by using a device to check time, continuous observation is done for the task given. Such observations are then used to either increase or decrease the efficiency the worker.

Esprit de Corps This means team spirit. Since "union is strength", the management should create team spirit among the employees. Only when all the personnel pull together as a team, there is scope for realising the objectives of the concern. Harmony and unity among the staff are a great source of strength to the undertaking. To achieve this. Fayol suggested two things. One. the motto of divide and rule should be avoided, and two, verbal communication should be used for removing misunderstandings. Differences grow more bitter when cleared through written communication.

Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer who sought to improve industrial efficiency. He was one of the first management consultants. Taylor was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era (1890s-1920s). Taylor summed up his efficiency techniques in his 1911 book The Principles of Scientific Management, which in 2001 Fellows of the Academy of Management voted the most influential management book of the twentieth century. His pioneering work in applying engineering principles to the work done on the factory floor was instrumental in the creation and development of the branch of engineering that is now known as industrial engineering. Taylor made his name in, and was most proud of his work in, scientific management; however, he made his fortune patenting steel-process improvements. Taylor was also an athlete who competed nationally in tennis and golf.

The technique of scientific management that is the extension of ‘principle of division of work and specialisation’ is ‘Functional Foremanship’. Like Fayols ‘Principle of management and specialisation’, F.W.Taylor felt that it was not possible  to get in one man ‘the combination of brain, education, technical skill and other qualities necessary to handle all the requirements of an operating job’. He advocated functional foremanship to supervise workers. 

Taylor paid importance to division of work in such a way that every person is utilised to hi full potential for this he divided the lower level into two parts
1.The ones who will lay stress on plans prepared by top level...and decide its validity and implementation on ground level
2. The ones who will execute the plans on ground level

 FW Taylor conducted a number of experiments in various areas of production.Time study It refers to determining the standard time required to complete a particular activity.

Motion study This is the analysis of physical movements in doing a work.Method study It refers to identify the most suitable way to do a particular activity.Fatigue study Study of the nature of work to determine the standard time for finishing the job and to find out when the workers need rest.

All these techniques and studies are concerned with F.W.Taylor

F.W Taylor is the father of scientific management. F. W Taylor was born in USA. He was primarily considered about the efficiency of workers and optimum utilisation of resources. Taylor published books and research papers explaining his scientific view on industrial organisation and management. Taylor set out scientific studies and techniques. Taylor was publishing of "shop management", "price rate system ",and" principles of scientific management ".

It's because like the body of science where every thing has to go through the process of experiment and testing to make it prove that it establish the cause and effect relationship regarding any statement which one is experimenting in laboratory. Unlike the principle used in science,the principle of management couldn't be tested in laboratory because it's a matter of human behaviour and thus also called behavioural science...Any statement can only be given the tag of principle,when it would be tested in the practical life by observing on the humans or any situation as the matter demand so.

Henri Fayol developed the concept of general theory of administration through 14 principles of management and he was a practitioner explained what must be included as managerial tasks to improve overall administration. Information based on personal experience while working in various managerial positions.

Unity of direction and unity of command are quite similar but there is main difference that in unity of command there should be one boss of a employe that can give order to him but in unity of direction there should be one plan that is most important and head can order to that employees that are related to that plan only.

Communication through the scalar chain may involve delays when two subordinates or employees at the same level want to exchange ’ information. Thus, Fayol suggested the concept of ‘Gang Plank’ to avoid delays and allow direct communication between two subordinates at the same level. Gang Plank is useful as it helps in making direct contact in case of emergency. This idea of Fayol shows that his principles are flexible and can be modified as per the situation.

The Managers aims to eliminate unnecessary motions of the workers. Motions refer to sitting bending etc. By identifying those motions which are not required and making a standard set of motions to be performed while completing a task. Therefore motion study refers to refining of motions of labourers.

Liberalisation means removal of trade barriers & restrictions made by the government

Globalization means interaction of a company or an organization with world economy. Importing and exporting is one of the major factor of globalization, hence export promotion is concerned with globalization.

Tax is paid by the owners of the business or a company to the government, such taxes are included in the cost of production. Production costs can include a variety of expenses, such as labor, raw materials, consumable manufacturing supplies, and general overhead. 
Therefore, an increase in taxes will definitely increase the cost of production and will reduce the profits.

Changes in fashions and tastes of consumers will shift the market demand from existing product to new ones because the demands of people changed, so they don't want to buy old-fashioned products. They were fascinated by new modern products. Now, they buy new-fashioned products which has good quality and price than other products.

Legal environment is the environment which is governed by the legal system of the country. The laws which are passed by the government for business operation is called legal environment. Non-implementation of legal policies results in heavy fines, penalties & punishment &therefore every organization must follow all these regulations.
So in this case cigarettes carrying the statutory warning is an implementation made by the government which has to be followed which makes it the factor of legal environment.

Enacted in 1986, this Consumer Protection Act protects the interests of consumers in India against deficiencies and defects in goods or services. It makes provision for the establishment of consumer councils and other authorities for the easier and quicker settlement of consumers' disputes and related matters.

Business Environment can be defined as ‘’the forces, factors and institutions with which the businessman has to deal with to achieve its objectives’’. In general words we can say business environment is surroundings in which business exists. Environment Scanning: Complete awareness and understanding of business environment is known as environment scanning.

All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.All outside factors that may affect an organization make up the external environment. Such factors are uncertain factors which increases risk in the business. The external environment is divided into two parts: Directly Interactive and Indirectly Indirective.

Yes booking ticket through internet from home or office is example of technological environment.......... it is technology because it is done through internet

Privatization means conversion of public sector enterprises into private ownership by selling the shares of the company to private person or an organization, which means the shares cannot be sold to the public.
As the control and management transferred to private ownership, the role of public sector is reduced.

Uncertainty of future is risk in the investment. There is no clue that when the government policies will change and what it will do the rate of return for the long-term investors. Hence, there is always a fear of political uncertainties.

Because increase in competion in the market will give more choices to the consumer to consume whichever goods they want, resulting in decrease of fixed customers for a particular product line.

Political uncertainty threatens the investors the most because different political parties has different policies in case of political uncertainity the government changes very quickly hence investors fears for investing their money.

The economic environment deals with the economic factors in the environment they could affect the consumer behavior. Since, value of money is one of the major factors in the economy, the increase and decrease its value is an example of economic environment.

The social environment, refers to the immediate physical and social setting in which people live or in which something happens or develops. It includes the culture that the individual was educated or lives in, and the people and institutions with whom they interact.
And the Technological environment refers to the state of science and technology and related aspects such as rate of technological progress, institutional arrangements for development and application of new technology, etc.
So, the correct answer is definitely technological environment.

National disposable income is estimated as the sum total of net domestic income at factor cost ,net indirect tax ,net factor income from abroad and net of current transfer from rest of the world because of rise in disposable income

Environmental scanning means gathering information about all the market which could affect the product or service. By gathering information, the business can find out if there is any competitor already in the market, if not they could be the first one in the market.
A first mover is a service or product that gains a competitive advantage by being the first to market with a product or service. Being first typically enables a company to establish strong brand recognition and customer loyalty before competitors enter the market.

Globalisation refers to promoting trade relations with the rest of the world. this is possible only through export promotion, liberalising import restrictions and bringing about changes in foreign exchange reforms.