Important Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Important Questions with Answers for CBSE Class 12 Business Studies Chapter 1 – Nature and Significance of Management which is outlined by expert Business Studies teachers from the latest version of CBSE (NCERT) books.

CBSE Class 12 Business Studies Chapter-1 Important Questions:

Question 1

What is meant by management?

Answer: Management is a skill of getting the work done through others. The term management can also be defined as the procedure of getting the thing done with the aim of accomplishing goals effectively.

Question 2

Explain the features of management that do not establish it as a profession.

Answer: The features of management that do not establish it as a profession are mentioned below:

• Restriction to entry: The entry to a profession is defined through a prescribed capacity. But there is no constraint on anyone being elected as a manager in any trading concern.
• Professional association: All the professions are affiliated to a professional organisation which controls entry and grants certificate of practice. There is no requirement for managers to be members of such a corporation.
• The ethical code of conduct: All professions are bound by a code of conduct which supervises the behaviour of its divisions. AIMA has regulated code of conduct for the Indian managers; however, there is no lawful advocacy for this code.
• Service motive: The idea of a profession is service to their client’s businesses by providing applied and bound service. The fundamental purpose of management is to help the business achieve the declared goal, which may be profit maximisation. Nevertheless, profit maximisation as the goal of management does not hold valid and is quickly changing.

Question 3

‘Management provides judgement and vision.’ Explain.

Answer: Management perpetuates to adjust to the complex and changing external surroundings. It assists in making wise decisions. It envisions the future and the apt course of action and accurate decisions become feasible. Hence, its insight furnishes vision and judgement.

Question 4

A company manufacturing laptops is facing the problems of decreasing sales in the market. You can imagine any product about which you are familiar with. What steps, each level of management should take to give effect to this decision?

Answer: Modernisation of the product is required to raise its market share. Hence, to modernise the product, each level must work as follows:

Top-level management

• Concentrate on research and development and add new features to their products or begin a new product line
• Drafting sales plan, sales targets and sales incentives
• Increase promotional and marketing pursuits

Middle-level management

• Implementation of the plans that are outlined by the top level
• Recruiting candidates with required qualifications
• Continuously assess all the activities and take corrective actions for any deviations and keep the top-level management informed

Lower or Supervisory level

• Analysis of targets and plans to the workforce of an enterprise
• Assign the task relying upon the qualification and efficiency of the employees
• Maintain the stability of the quality of work and decrease wastage by efficient utilisation of the obtainable resources

Question 5

State any 2 points that prove that the management is a multi-dimensional.

Answer:

• Management of work
• Management of people

Question 6

How does coordination integrate group efforts? State briefly.

Answer: Coordination integrates group efforts by unifying distinct interests hereby giving them a common focus to assure that the performance is according to the plans and strategies.

Also Check: Business Studies MCQs

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