HOTS Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Case Study - 1

Q1: “Team C is responsible for maintaining quality and safety standards and minimising wastage.”
Which level of management is highlighted in this context?
(a) Top Level Management
(b) Middle Level Management
(c) Lower Level Management
(d) None of these
Ans: (c)

Lower Level Management The context refers to Team C, which is tasked with:

• Maintaining quality and safety standards
• Minimising wastage

This indicates that they operate at the lower level of management, where direct supervision of workers occurs. Their role is crucial for:

• Implementing plans from higher management
• Ensuring the quality of output
• Overseeing daily operations

Q2: “Team A immediately discusses the change to be brought about in the company’s plan”
Which level of management is highlighted in this context?
(a) Top Level Management
(b) Middle Level Management
(c) Lower Level Management
(d) None of these
Ans: (a)

• The context highlights Top Level Management.
• This level includes senior executives responsible for the overall direction of the company.
• They discuss and implement significant changes in the company's plans.

Q3: “Team B explains the policies of superiors to the employees”
Which level of management is highlighted in this context?
(a) Top Level Management
(b) Middle Level Management
(c) Lower Level Management
(d) None of these
Ans: (b)

The context highlights the role of Middle Level Management in an organisation. Here are the key points:

• Middle management acts as a link between top management and lower-level managers.
• They are responsible for implementing policies set by top management.
• Middle managers oversee the activities of first-line managers and ensure that departmental goals align with the organisation's objectives.
• They play a crucial role in communication, ensuring that instructions from top management are conveyed to employees.

Management consists of a series of interrelated functions that are performed by all managers, for example, managers have to plan the objective of the firm, organize resources to achieve that objective, and recruit and select employees who can implement these objectives. Giving directions, communicating and motivating these employees to achieve objectives effectively and efficiently and ultimately checking whether everything is going as per plan or not. 
Q4: “Ultimately checking whether everything is going as per plan or not”, this line indicates which function of management?
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
Ans: (d)

Controlling is a key management function that involves:

• Monitoring the performance of an organisation.
• Ensuring that activities align with the established plans.
• Setting performance standards and measuring actual performance.
• Taking corrective actions when necessary to address any deviations.

This function helps in achieving organisational goals by ensuring that everything is on track.

Q5: By recruiting and selecting employees for implementing the objectives, the Manager performs which function?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Ans: (c)

Staffing is the management function that focuses on:

• Finding the right people for the right jobs.
• Ensuring that individuals with the appropriate qualifications are available.
• Involving activities such as recruitment, selection, placement, and training.

This function is crucial for achieving the organisation's goals effectively.

Q6: By communicating and motivating, the manager performs which function of management?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Ans: (d)

Directing is a key management function that involves:

• Leading employees to achieve goals.
• Influencing team members to perform their tasks effectively.
• Motivating staff to create a positive work environment.
• Communicating clearly to ensure everyone understands their roles.

The purchase manager of a leading bookshop maintains stock on a continuous basis. It helps him to place orders well in advance, thus avoiding facing the situation of stock shortage. This way he is able to save on delivery costs and maintain his stock levels. He is already ready to fulfil customer’s need well in time.
Q7: By setting up of objective, management performs which function?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Ans: (a)

• Planning is the management function that involves setting objectives and determining the best course of action to achieve them.
• Effective planning ensures resources are allocated efficiently to meet organisational goals.

Q8: A company’s target production is 1000 bicycles in a year. To achieve this target the manager has to operate a double shift due to power failure most of the time. The manager is able to produce 1000 bicycles but at a higher production cost. In this case the manager is:
(a) Effective
(b) Efficient
(c) Neither efficient nor effective
(d) Efficient as well as effective
Ans: (a)

• The manager is effective because they achieved the target of producing 1000 bicycles.
• However, the production was done at a higher cost due to operating double shifts.
• This indicates a lack of efficiency, as more resources were used to achieve the same output.
• In summary, the manager is effective but not efficient.

Q9: Which of the following is not a characteristic of a profession?
(a) Restricted Entry
(b) Service Motive
(c) Well-defined body of knowledge
(d) Based on creativity
Ans: (d)

While creativity is important in many fields, it is not a defining feature of a profession. Professions are generally characterised by:

• Restricted entry
• Well-defined body of knowledge
• Service motive

These elements ensure that professions maintain standards and serve the public effectively. 

Q10: Which managerial function ensures that the right people with the right qualifications are available at the right place and time to accomplish the goals of the organisation:
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Ans: c

• Staffing is the managerial function that focuses on ensuring the right people are in the right roles.
• It involves:
  1. Recruitment
  2. Selection
  3. Placement
  4. Training of personnel
• The goal is to align skills and qualifications with the needs of the organisation.

Q11: Identify the importance of management highlighted in the above case.
(a) Management creates a Dynamic Organisation
(b) Management Helps in Achieving Personal Objectives
(c) Management helps in Achieving Group Goals
(d) Management Increases Efficiency
Ans: d

• Management plays a crucial role in enhancing the efficiency of an organisation.
• It focuses on reducing costs and boosting productivity through effective planning, organising, directing, and controlling of activities.
• By streamlining processes, management ensures that resources are used optimally.
• This leads to better performance and helps the organisation achieve its overall goals.

Q12: The subject of management is taught at different institutions. Some of these have been set up with the specific purpose of providing management education such as the Indian Institutes of Management (IIMs) in India. Entry to different institutes is usually through an examination. Which aspect of management is highlighted in the aforesaid statement?
(a) Management as a science
(b) Management as an art
(c) Management as a science and an art
(d) Management as a profession
Ans: (d)

The statement highlights that management is recognised as a profession. Here are the key points supporting this view:

• Management education is provided by dedicated institutions, such as the Indian Institutes of Management (IIMs).
• Entry to these institutes typically requires passing an examination.
• Management involves a structured body of knowledge and skills that can be taught and learned.
• Despite its professional characteristics, management does not have strict entry requirements like some other professions.

Case Study - 2

Read the following text and answer the following questions on the basis of the same:
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, and ready-made and household items are made out of traditional Indian fabrics.
Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appointed a team of designers and craftspeople in the company, who developed some prints for bed covers in bright colours on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer.
Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.

Q13:  “She appoints a team of designers and craftspeople in the company, who developed some prints for bed covers in bright colour on silk.”
Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Planning
(d) Directing
Ans: (b)

The highlighted function of management in this context is Staffing. This involves:

• Finding the right people for specific roles.
• Recruiting and selecting suitable candidates.
• Ensuring that skilled individuals are available to achieve organisational goals.

In this scenario, the appointment of a team of designers and craftspeople illustrates the importance of Staffing in the management process.

Q14: In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.”
The above line focuses on which feature of management?
(a) Management is an intangible force
(b) Management is a goal-oriented process
(c) Management is pervasive in nature
(d) Management is a continuous process
Ans: (b)

The statement highlights that the company's aim is to boost sales of Indian handloom and handicraft products. This reflects the following aspects of management:

• Goal-oriented: Management focuses on achieving specific objectives.
• Direction: It guides efforts towards fulfilling the company's mission.
• Performance: Success is measured by how well these goals are met.

Q15: With reference to the above case, at which level of management Sana is working?
(a) Lower level
(b) Top level
(c) Middle level
(d) Shop floor
Ans: c

Sana is working at the middle level of management. This level is crucial as it:

• Acts as a link between top management and lower-level managers.
• Implements and controls plans set by top management.
• Oversees the activities of first-line managers.
• Ensures that organisational goals are achieved through effective coordination.

Q16: “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.”
Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Organising
(d) Planning
Ans: (c)

The management function highlighted in this context is Organising. This involves:

• Assigning specific duties to team members.
• Grouping tasks effectively to manage resources.
• Establishing authority and reporting relationships.
• Allocating resources to implement plans efficiently.

By suggesting the use of silk bed covers for special occasions and cotton bed coversfor regular use, Sana is effectively organising resources to maintain cost control while ensuring quality.