Business Studies Solved Question Paper
2023
AHSEC Class 12 Solved Question Paper
For New Course Students
Full Marks: 80
Pass Marks: 24
Time: Three hours
The figures in the margin indicate
full marks for the questions.
1. (a) What is meant by profession? 1
Ans:
Profession is an occupation for which specialized skills and training are
required and these skills are used not for private profit but for the larger
interests of the society.
Or
What function of management ensures
work accomplishment according to plan?
Ans:
Controlling function
(b) Give the meaning of time study. 1
Ans:
Time study helps in determining the time required by an average skill worker to
efficiently perform a particular job. Time study helps in determining the
standard time for the job.
(c) Under which environmental factor
does fiscal policy fall? 1
Ans:
Economic environment
Or
What is disinvestment?
Ans:
Disinvestment means government selling its profit or loss making venture's
stack to public through an IPO or to private company on auction basis.
(d) What is meant by apprenticeship
training? 1
Ans:
The workers seeking to enter skilled jobs are sent for apprenticeship training
programme which is an on-the-job method of training. In the Apprenticeship
Programme, a master worker or a trainer is appointed who guides the worker or
learner regarding the skill of job. It is suitable for people seeking to enter
skilled traits for example – plumbers, electricians, iron worker etc.
(e) What is the other name of long
term investment decision? 1
Ans:
Capital budgeting
(f) What is Treasury bill? 1
Ans:
Treasury bills are instruments of money market issued by the Government of
India. They are freely transferable. They are issued in the multiples of 25000.
These are in the form of Zero coupon bond that is issued at a discount
redeemable at par. No interest is given on such securities.
2. What is right issue? 2
Ans:
Equity shares of a company are issued to the existing equity shareholders at
discounted price is called the right issue. In this issue additional securities
are offered to the existing shareholders.
Or
Write two features of new issue
market.
Ans: Primary
Market (New issue market) Features
1. It is a
market for the new long term capital. It helps new company in capital
formation.
2. It is
the market where the securities are issued for the first time. It is also
referred as new issue market.
3. What is meant by management by
exception? 2
Ans:
Management by exception is an important principle of management control based
on the belief that an attempt to control everything results in controlling
nothing. Thus, only significant deviations which go beyond the permissible
limit should be brought to the notice of management.
4. Write two objectives of training. 2
Ans:
Objectives of training:
(1)
To improve Performance: Training helps in increasing productivity of workers
and thus leads to reduction in cost and increase in profit.
(2)
To reduce wastage of resources: Through the superior level training, the
problem of wastage of materials can be avoided.
5. What is the role of budget in a
plan? 2
Ans:
A budget is a quantitative expression of the plan of action. It is a statement
of expected results and expected cost expressed in numerical terms. Budget is a
statement which helps us to know the future results and to achieve these
results how much we will have to spend. There are different types of budgets for
example, production budget, sales budget, cash budget, fixed and flexible
budget, overheads budget etc.
6. Write three differences between
training and development. 3
|
Training |
Development |
|
It
is a process of imparting knowledge for doing specific job. |
It
is a process of learning opportunities designed to help employees grow. |
|
It
is a job oriented process. |
It
is a carrier oriented process. |
|
It
focuses on technical skills. |
It
focuses on conceptual and human ideas. |
Or
Briefly explain three internal sources
of recruitment.
Ans:
Methods of recruitment under internal source:
a)
Transfer: Transfer means shifting of employees from one job to another at the
same level of authority. Generally, with the transfers there is no change in
the rank, responsibilities and prestige. Only the place of working is changed.
b)
Promotion: Promotion refers to shifting of employees from one job position to
other with higher level of authority. In promotion the authority level, the
rank, responsibilities and prestige improve or increase. Generally, with the
promotions there is increase in salary also.
c)
Recommendation by Present Employees: The present employees of an enterprise may
be informed about likely vacant position. The employees recommend their
relations or persons intimately known to them. Management is relieved of
botheration for looking out prospective candidates. The persons recommended by
the employees will be suitable for the job because they know the needs &
requirement of various positions.
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ALSO READ: AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS
BUSINESS STUDIES SOLVED QUESTION PAPERS 2012
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7. Write three importance of
controlling. 3
Ans: Advantages (Importance) of
Controlling:
(i)
Accomplishing organisational goals: The controlling function measures progress
towards the organisational goals and brings to light the deviations, if any,
and indicates corrective action.
(ii)
Judging accuracy of standards: A good control system enables management to
verify whether the standards set are accurate or not. An efficient control
system keeps a careful check on the changes taking place in the organisation
and in the environment and helps to review and revise the standards in light of
such changes.
(iii)
Making efficient use of resources: By exercising control, a manager seeks to
reduce wastage and spoilage of resources. This ensures that resources are used
in the most effective and efficient manner.
Or
Write a note on ‘return on investment’
as a modern technique of control.
Ans:
Return on Investment (ROI): Investment consists of fixed
assets and working capital used in business. Profit on the investment is a
reward for risk taking. If the ROI is high, then the financial performance of a
business is good and vice-versa. ROI is a tool to improve financial
performance. It helps the business to compare its present performance with that
of previous years' performance.
8. What is the significance of the
concept called ‘consumer welfare’? 3
Ans: Consumer welfare refers to the well-being and
satisfaction of consumers in the marketplace. It encompasses various factors
such as product quality, safety, affordability, choice, and access to
information. Essentially, it revolves around ensuring that consumers are able
to make informed decisions, receive value for their money, and are protected
from unfair or harmful business practices.
The significance of the concept of consumer welfare:
1. Protection of Rights: Consumer welfare emphasizes the protection of consumer
rights, ensuring that consumers are treated fairly and honestly by businesses.
This includes safeguarding against fraud, deception, and exploitation.
2. Enhanced Competition: Prioritizing consumer welfare fosters healthy competition
among businesses. When consumers have access to transparent information and a
variety of choices, it incentivizes businesses to improve their products and
services to meet consumer demands effectively.
3. Social Welfare: Consumer welfare contributes to overall social welfare by
ensuring that essential goods and services are accessible and affordable to all
segments of society. This helps to reduce inequality and improve the standard
of living for individuals and communities.
Or
Briefly write three importance of
consumer protection from the point of view of consumers.
Ans:
Importance of Consumer Protection from the point of view of consumer:
a)
Consumer’s ignorance: Most of the consumers are ignorant about their light and
relief’s available to them. So it was essential to create awareness among
consumer for their lights.
b)
Unorganized consumers: Consumer are not much organized so us to protect their
interest. Until their organization become strong and powerful, proper
protection has to be provided.
c)
Wide Spread Exploitation of Consumer: the balance sheet man through various
unfair trades. Practice like loading, black-marketing, adulteration etc.
9. Why entrepreneurship is regarded as
a creative activity? Briefly explain. 3
Ans:
Out of syllabus
Or
Explain the role of consumer
organisations and NGOs in protecting the interest of consumers.
Ans:
Functions of Consumer organisation and Non-Government Organisations (NGO):
a) Creating consumer awareness: They publish periodicals brochures
journals etc. for creating consumer awareness.
b) Encourage the consumer: They encourage and educate the consumer
to protect against exploitative, unfair trade practice of the seller.
c) Focus on consumer problem: They arrange seminars, workshops and
conference for the purpose of focusing on problem of consumer.
d) Problem legal assistance: They provide legal assistant for
getting legal remedy against the damage caused to consumer.
10. ‘Management is not considered as a
fully-fledged profession.’ Discuss. 5
Ans: Management is a Profession:
Profession is an occupation for which specialized skills and training are
required and these skills are used not for private profit but for the larger
interests of the society. There is a
professional body to control the behaviour of its members. At present management is not a full-fledged
profession but it is heading towards becoming a profession. Management is by and
large becoming a profession. Management is emerging now as a profession because
it has the following essential features of process:
a) Management is a
specialised body of knowledge having its own principles, concepts and theories.
b) Proper training
and education is essential for managers to improve managerial skills.
c) Indian Management
Association and All India Management Development Association is set up in India
to lays down the standards of education and training for that entering
management profession.
d) Manager must
strictly observe code of conduct and ethics.
e) There is dominance
of service motive in any profession. Management aims at providing maximum
efficiency at eh lowest cost so as to serve the interests of employers,
consumers, society and nation at large.
In
conclusion, it may be said that managers at the top level do not satisfy all
the requirements of profession but management is becoming a profession.
Or
Explain the nature of coordination.
Ans: Coordination is defined as the process of
bringing about unity and harmony of functioning amongst the various elements of
an organisation. In the words of Henry Fayol,”
To co-ordinate is to harmonise all the activities of a person in order to
facilitate its working and its success.”
The key features of coordination are as
follows:
a)
Coordination is not a distinct function but the very essence of management.
b)
It is the result of conscious and concerted action by management.
c)
Coordination is a continuous, never ending or on-going process. It is also a
dynamic process.
d)
Coordination is required in group efforts not in individual effort.
e)
Coordination has a common purpose of getting organizational objectives
accomplished.
11. Discuss the principle of unity of
command and unity of direction. 5
Ans:
Unity of command: According to this principle of Fayol, every employee should
receive orders and instructions from one boss and he should be responsible and
accountable to him only. This principle will be violated if an employee is
asked to receive orders from more than on superior.
Unity
of Direction: According to this principle “One unit means objective and one
plan. There must be one plan for an organization at a time and should be
directed by one manager using the same plan. This principle leads to good
coordination in the organisation.
Or
Distinguish between scientific
management and general management.
Ans: Difference between scientific and general
administrative management are given below:
1. Scientific management theory considers employee
efficiency, whereas administrative management theory
considers human and behavioural determinants of the organization.
2. Administrative theory emphasizes on
activities like planning and controlling, whereas scientific theory
emphasizes on work study and time of study of workers.
3. Administrative management theory has more
emphasis on top management, whereas scientific management theory has
an emphasis on low-level management in an organization.
4. Administrative management theory can be
applied to any organization, because it is universally applicable, but
scientific management theory is applied only to specialized organizations.
12. Give five impacts of globalization
on Indian economy. 5
Ans:
Liberalisation and Globalisation of Indian economy through industrial policy
change in 1991 have created both challenges and opportunities for the Indian
business. Impact of Government Policy Changes on Business and Industry
(Significance of liberalisation and globalisation) can be studied under the
following heads:
a)
Increasing competition: As a result of changes in the rules of industrial
licensing and entry of foreign firms, competition for Indian firms has
increased especially in service industries like telecommunications, airlines.
b)
More demanding customers: Customers today have become more demanding because
they are well-informed. Increased competition in the market gives the customers
wider choice in purchasing better quality of goods and services.
c)
Rapidly changing technological environment: Increased competition forces the
firms to develop new ways to survive and grow in the market. New technologies
make it possible to improve machines, process, products and services.
d)
Necessity for change: In a regulated environment of pre-1991 era, the firms
could have relatively stable policies and practices. After 1991, the market
forces have become turbulent as a result of which the enterprises have to
continuously modify their operations.
e)
Threat from
13. Write five limitations of
planning. 5
Ans:
Limitations of Planning: The success of enterprise is possible only when plans
are properly drawn up and implemented. The business environment is dynamic,
nothing is constant. The organisation has to constantly adapt itself to the
changes of in business environment. I agree with the statement” Though Planning
is an important tool of management, yet it is not a remedy in business
environment. Planning can’t prevent problem. It can only product them to
prepare contingency plans to deal with them if and when they occur. Planning
fails in spite of efforts of management because of its limitations which are
stated below:
1.
Planning does not work in dynamic
environment: The business environment is dynamic, nothing is constant.
The environment consists of a number of dimensions— economic, political,
technological, legal and social dimensions. The organisation has to constantly
adapt itself to the changes in business environment. However, it is not always
possible to accurately assess future trends in the environment.
2.
Planning is a time consuming process: Planning
is a time consuming process. It requires collection of information, its
analysis and interpretation. These activities may take considerable time.
3.
Planning involves huge costs: Planning
is an expensive process in terms of money. When plans are drawn up, huge costs
are involved in the formulation of plans. If the costs are not justified by the
benefits derived from the plan, it may have adverse effect on the enterprise.
4.
Planning creates rigidity: Planning
leads to rigid mode of functioning for managers. This has adverse effect on the
initiative to be taken by them.
5.
Planning does not guarantee success: The
success of an enterprise is possible only when plans are properly drawn up
implemental. Managers have a tendency to rely on previously tried and tested
successful plans. But it is not always true that a plan which has worked
before, will work effectively again.
**********************************
ALSO READ (AHSEC ASSAM BOARD CLASS 12)
1. AHSEC CLASS 12 BUSINESS STUDIES CHAPTERWISE NOTES
2. AHSEC CLASS 12 BUSINESS STUDIES QUESTION PAPERS (FROM 2012 TILL DATE)
3. AHSEC CLASS 12 BUSINESS STUDIES SOLVED QUESTION PAPERS (FROM 2012 TILL DATE)
4. AHSEC CLASS 12 BUSINESS STUDIES IMPORTANT QUESTIONS
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14. What are the different sources of
working capital? Briefly discuss. 5
Ans: Various Sources of Working Capital
1) Trade credit is
a short term credit facility extended by suppliers of raw materials and other
suppliers. It is a common source. It is an important source. Trade credit is an
informal and readily available credit facility. It is unsecured. It is flexible
too; that is advance retirement or extension of credit period can be
negotiated. Trade credit might be costlier as the supplier may inflate the
price to account for the loss of interest for delayed payment.
2) Commercial banks are the next important source of
working capital finance commercial banking system in the country is broad based
and fairly developed. Straight loans, cash credits, hypothecation loans, pledge
loans, overdrafts and bill purchase and discounting are the principal forms of
working capital finance provided by commercial banks. They provide loan in the following form:
a)
Straight
loans are given with or without
security. A onetime lump-sum payment is made, while repayments may be
periodical or one time.
b)
Cash credit is an arrangement by which the customers (business concerns) are
given borrowing facility upto certain limit, the limit being subjected to
examination and revision year after year. Interest is charged on actual
borrowings, though a commitment charge for utilization may be charged.
c)
Hypothecation
advance is granted on the hypothecation of
stock or other asset. It is a secured loan. The borrower can deal with the
goods.
d)
Pledge loans are made against physical deposit of security in the bank's
custody. Here the borrower cannot deal with the goods until the loan is
settled.
e)
Overdraft
facility is given to current account
holding customers t^ overdraw the account upto certain limit. It is a very
common form of extending working capital assistance.
f)
Bill
financing by purchasing or discounting bills
of exchange is another common form of financing. Here, the seller of goods on
credit draws a bill on the buyer and the latter accepts the same. The bill is
discounted per cash will the banker. This is a popular form.
3) Finance companies abound in the country. About 50000
companies exist at present. They provide services almost similar to banks,
though not they are banks. They provide need based loans and sometimes arrange
loans from others for customers. Interest rate is higher. But timely assistance
may be obtained.
4) Indigenous bankers also
abound and provide financial assistance to small business and trades. They
change exorbitant rates of interest by very much understanding.
5) Public deposits
are unsecured deposits raised by businesses for periods exceeding a year but
not more than 3 years by manufacturing concerns and not more than 5 years by
non-banking finance companies. The RBI is regulating deposit taking by these
companies in order to protect the depositors. Quantity restriction is placed at
25% of paid up capital + free services for deposits solicited from public is
prescribed for non-banking manufacturing concerns. The rate of interest ceiling
is also fixed. This form of working capital financing is resorted to by well
established companies.
15. Briefly outline any five
regulatory functions of SEBI. 5
Ans: Regulatory Functions:
These functions are performed by SEBI to regulate the business in stock
exchange. To regulate the activities of stock exchange following functions are
performed:
(i)
SEBI has framed rules and regulations and a code of conduct to regulate the
intermediaries such as merchant bankers, brokers, underwriters, etc.
(ii)
These intermediaries have been brought under the regulatory purview and private
placement has been made more restrictive.
(iii)
SEBI registers and regulates the working of stock brokers, sub-brokers, share
transfer agents, trustees, merchant bankers and all those who are associated
with stock exchange in any manner.
(iv)
SEBI registers and regulates the working of mutual funds etc.
(v)
SEBI regulates takeover of the companies.
(vi)
SEBI conducts inquiries and audit of stock exchanges.
Or
Briefly explain five money market
instruments.
Ans:
Money market is the short term security market. Following are the instruments
dealt in money market.
a)
Treasury bills: T-bills short term government security ranging from 14 days to
364 days issued by RBI on behalf of the government to meet its short-term
financial needs. No fixed interest in payable on Treasury bills. Normally TBs
are issued at the lowest interest rate agreed on competitive bidding. These
bills are negotiable instruments and freely transferable.
b)
Commercial Paper: Commercial papers are unsecured promissory notes issued by
highly creditworthy companies to raise funds for short term. It usually has a
maturity period of 15 days to one year. CPs are normally issued at a discount
and redeemed at par. The commercial
banks and mutual funds are the main investors of commercial papers.
c)
Call money and short notice money: Call money refers to money given for a very
short period ranging from 1 day to 7 days. Surplus funds of the commercial
banks and other institutions are usually given as call money. Banks are the
borrowers as well as lenders for the call funds. If the loan is given for one
day and can be called back on demand, it is called money at call but if the
loan cannot be called back on demand and will require 3 days’ notice, it is
called money at short notice. Money at short notice can be of maximum 14 days.
d)
Certificate of deposit (CD): Certificate of deposit is a time deposit having a
maturity period from 91 days to 12 months. CDs are issued only by a bank. It is
a bearer certificate which is freely transferable and can be sold in secondary
market. Banks are not allowed to discount these documents.
e)
Commercial bills: These are the trade bills which are drawn at the time of
credit sales by the Drawer (Supplier) and accepted by the Drawee (Debtor). It
is an acknowledgment of debt normally having a maturity period of 90 days. It
is a negotiable instrument and can also be endorsed from one person to another. It can also be discounted with the bank
before maturity.
16. What is formal organisation?
Briefly write advantages of formal organization. 3+5=8
Ans:
Formal organisation is that type of organisation in which the authority and
responsibility relationship amongst various people working in an enterprise are
clearly defined. It is an official framework for taking up every activity. In
the words of Chester Barnard, "An organisation is formal when the
activities of two or more persons are consciously coordinated towards a common
objective".
Advantages
of Formal Organisation
a)
As definite duties and responsibilities of each employee are clearly fixed, it
tends to reduce conflicts among employees.
b)
Over lapping of authority and responsibility is avoided.
c)
Entire organisation is systematically controlled.
d)
On account of classification of tasks, right person in place at a right place,
hence job satisfaction and security is experienced by the employees.
e)
It makes organisation less dependent on one man.
Or
Discuss the principles of effective
delegation.
Ans:
Principles of Effective Delegation of Authority or How barriers can be removed
or Elements of delegation:
a)
Knowledge of Objectives: Before delegating authority, the subordinates should
be made to understand their duties and responsibilities. In addition, knowledge
of objectives and policies of the enterprise should be provided to them.
b)
Parity of Authority and Responsibility: This principle of delegation suggests
that when authority is delegated, it should be commensurate with the
responsibility of the subordinate.
c)
Unity of Command: This principle of delegation suggests that everyone should
have only one boss. A subordinate should get orders and instructions from one
superior and should be made accountable to one superior only.
d)
The Scalar Principle: The scalar principle of delegation maintains that there
should be clear and direct lines of authority in the Organisation, running from
the top to the bottom. The subordinate should know who delegates authority to
him and to whom he should contact for matters beyond his authority.
e)
Clarity of Delegation: The principle of clarity of delegation suggests that
while delegating authority to subordinates, they should be made to understand
the limits of authority so that they know the area of their operation and the
extent of freedom of action available to them. Such clarity guides subordinates
while performing their jobs.
17. Discuss the significance of
motivation in business. 8
Ans:
Motivation is a process of stimulating people to action to achieve desired
goal. It is psychological term. It comes automatically from inside the
employees as it is the willingness to do the work.
In
the words of Dubin,” Motivation is the complex of force starting and keeping a
person at work in an organisation.”
Features of Motivation:
a)
It is a psychological phenomenon which generates within an individual.
b)
Motivation can be positive or negative. Positive motivation is done giving
incentives, rewards or promotions. Negative motivations are based on force or
fear.
c)
Motivation produces goal directed behaviour.
d)
Motivation is dynamic and continuous process.
e)
Motivation is mainly based on needs.
Importance of motivation within
organisation is given below:
a)
Motivation sets in motion the action of people: Motivation bridges the gap
between the ability to work and willingness to work. It enables the management
to secure the best utilization of physical and financial resources.
b)
Motivation improves the efficiency of work performance: As motivation builds
the willingness to work among the employees, the persons work with
imitativeness thereby increasing their work performance.
c)
Motivation leads to stability in the employees: Motivation helps in reducing
the labor turnover and absenteeism. It creates confidence among the employees
and secures their loyalty to the organization.
d)
Helps in achieving the organisational goals: The motivated employees always try
to achieve the organisational goal and contribute their best efforts for the
realisation of organisational goals.
e)
Motivation held the managers to introduce changes: Motivated employees are
always supportive and co-operative in accepting changes in the organisation.
Or
What is communication? Explain the
different barriers to effective communication.
Ans:
Communication means exchange of messages between two or more persons. These
messages could mean idea, opinions, facts, information, instructions and
anything that conveys a meaning. These may be conveyed in words, pictures, and
actions or gestures.
In
the words of Newman,
Summer & Warren, “communication
is an exchange of facts, ideas, and opinions by two or more persons.”
According
to Keith
Davis, “Communication is the process
of passing information and understanding from one person to another.”
The barriers to communication in an
organization may be broadly categorized into following groups:
a) Physical Barriers: There are
the environmental factors that also reduce the sending and receiving of
communication, such as physical distance, noises and other interferences
difficulty arises in communicating a message.
b) Socio-psychological or personal Barriers: There
are certain socio psychological factors which restrict the free flow of
communication. They are the attitude and opinions, status consciousness, one’s
relations with fellow workers, seniors, and junior’s etc. family background.
c) Organizational Barriers: Organisational
barriers arise due to defects in the organization structure and the
communication system of an organization. Such barriers include hierarchical distance, diversion, status
barriers, goal conflicts etc.
d) Semantic Barriers: Semantic
means the relationships of signs of their reference. Semantic barrier arises
from the disadvantages of the symbolic system. Symbols have got number of
meaning and one has to choose any one of them according to the requirement of
communication.
e) Mechanical Barriers: Mechanical
barriers include inadequate arrangement for transmission of news, facts and
figures. Example poor office layout and defective procedure and the use of
wrong media led to poor communication.
18. What is marketing? Explain the
role of marketing in present day business. 2+6=8
Ans:
Marketing is the process of exchange of goods and services and includes all
those activities which helps in exchange of goods and services. In the words of
Philip Kotler, “Marketing is human activity directed at satisfying needs and
want through exchange process.”
Marketing
is a unique function of business which satisfies social values, needs and wants
of an individual. It serves as the springboard for all industrial production.
The importance of marketing can be studied under the following heads:
A. Uses to the Society
(1) Employment of Various Persons: Since
the things are manufactured or produced due to marketing, hence many people get
employment through the production activities. Transport, storage and wholesale
and retail services cover many persons. In this way, it might be said that by
marketing the employment is created.
(2) Availability of Various Products for Use: Today,
the sphere of marketing has become worldwide or international. Due to it, the
products manufactured in the foreign lands too become available for
consumption. All this could become possible due to the growth of the marketing
and its development.
(3) Increase in the National Income of Country: If
the marketing activities are efficiently undertaken and things are produced in
accordance with the needs or requirements of the customers, there must be some
increase in the demand of the things. The production goes up which leads to the
increase in the national income.
(4) Protecting the Economy against the Evil
Effects of Depressions: If the produced goods are not sold, there
shall be piled up the unsold materials with the producers and they will fall
victim to the depression effects. Thus the marketing keeps the economy
safeguarded against the evil effects of the depressions.
(5) Increase in the Standard of Living: By
an efficient system of marketing, there is a fall in the prices of the
products which ultimately leads to the enhancement in the consumption capacity
of the society which ultimately brings reforms and improvement in the standard
of living of the society.
B. Uses to the Producers
(1) Helpful in Earning More Profits: Whenever
any manufacturer produces some commodity, he has to seek the help of so many
people in letting the same reach the hands of the consumers. For instance,
there is the need of the middlemen, the godown owners, the traders, the owners
of transport companies, etc. By establishing proper distribution channel, more
profits can be earned.
(2) Getting Information Regarding Demand. By
the study of marketing, the producers are able to get information regarding
the changing demands.
(3) Reduction in Distribution Costs. By
the wide studies of distribution, it is also known that the products be passed
on to the consumers on the minimum possible costs.
(4) Helpful in Production Planning. The
producer, by studying the marketing, could plan his various policies pertaining
to production.
C. Uses to the Consumers
While
purchasing the products, the consumers must have full knowledge of the things.
This can be possible only through marketing. By the study of marketing, the
consumer is able to acquire knowledge as to how the middlemen resort to their
exploitation. For avoiding the middlemen's exploitation, the consumer
co-operative societies are being promoted and developed.
D. Uses to the Middlemen
By
the 'middlemen' is meant those persons who send the products from the producer
to the consumer. The lower are the expenses of the middlemen, the greater is
their profit. By studying the marketing, they get the knowledge as to how the expenses
of distribution be kept lower. Unless the middlemen possess sufficient
knowledge of marketing, they can't become successful.
Or
What is publicity? Distinguish between
advertising and publicity. 2+6=8
Ans:
In simple word, Publicity is the public visibility or awareness for any
product, service or company. Publicity is considered more effective then
advertising since it is designed to familiarise the general public with the
product s characteristics and advantages. Publicity may be effected through a
newspaper, a magazine and some other informative media.
Community
involvement can enhance a business s image and offer wonderful opportunities
for mission marketing. It may involve sponsoring a local youth sports team, a
summer camp for needy youngsters, or a scholarship.
Difference
between advertising and publicity
|
Basis |
Advertising |
Publicity |
|
Meaning |
The
activity of generating advertisements of products and services to
commercialize them is known as Advertising. |
The
activity of providing information about an entity, i.e. a product, an
individual or a company to make it popular is known as Publicity. |
|
Given
by |
It
is done by company and its representative. |
It
is done by third party. |
|
Cost
|
It
is a paid form of communication. |
It
is unpaid form of communication. |
|
Credibility
and reliability |
Credibility
and reliability is more as compared to publicity. |
Credibility and reliability is less. |
|
Control |
There
is complete control over advertisement. |
There
is no control over publicity. |
***
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