Business Studies

Management is a behavioural science. The management has to deal  with people  at every stage and it is very difficult to predict accuratly the behaviour of people. Since it has to deal with the behaviour of human beings, it is behavioural science.

As overcapitalsiation arises when actual profits are not sufficient to provide a fair return on share capital over a period fo time. So when profits are low in comparison to capital invested by investors, the company pays lower dividends on shares than previous years to its investors due to less profits.

Intercom is not an example of face to face conversation but it is a mechanical device of communication. In intercom all the lines are interconnected through a telephone line in an organization and when some message is to be communicated to a person who is far away or sitting in another cabin, it is used. So intercom is not an example of face to face conversation.

Right answer because it is a remedy for correcting overcapitalisation.In overcapitalisation the actual profits are not sufficient to provide a fair rate of return on share capital, the capital has to be decreased in this case, redemption of debentures decreases the capital invested and also increases earnings as interest is not to be paid.

Right answer because informal communication is not authentic, it cannot be said that it is genuine. People add their own interpretations and the information is distorted, so it does not remain genuine or true.

When people interpret the same message in different ways it is, semantic barrier. Words and symbols used to communicate facts and feelings may mean different things to different persons. For instance profit may mean one thing to a manager and quite another to a worker.

Right answer becasue Vestibule training is given in the class room outside the actual work place. In this, training is given with the same equipments to be used in the job. It may be given when the equipments to be used are expensive, so that trainee knows in advance how to use them.

Under variable price strategy, a product is sold to similar buyers at different prices. Variable price strategy is followed in consumer durables like televisions, refrigerators, automobiles where a seller may charge lower prices from old customers and a high price from a new customer. The old or regular customers can bargain, as the profit margin in consumer durables is also high.

Right answer because publicity is mention of a company, a brand or product in newspapers, radio etc.. As publicity is not paid for by the seller and media mentions the message about the product, the seller has no control over it.

Demonstration is explaining the actual use of the product. Its purpose is to generate the interest and desire of the customer in the product. For example a salesman of Maharaja Whiteline mixergrinder explains its use and operation to the consumer.

It is the right answer because it does not help in determining unit value or price per unit. It is the total cost of production that helps in determining or fixing per unit value. For example, if the total cost of production is Rs. 1 lakh and number of units produced is 10,000, then the value per unit would be Rs. 10.

Signs is not an audio-visual media of advertising, but outdoor or display media. Sign Boards are displayed on buses, railway coaches, street crossings etc.. The message is not heard and the product is also not shown, but the message is to be read.

Gilt-Edged Securities are issued by government or firm. It has a consistent record of good earnings and high dividends (on shares) or regular interest (on bonds) and so goodwill is naturally high.

Right answer because manufacturers distribute free of cost articles such as diaries, wall clocks, purses etc. to their customers. The names of the manufacturer and products manufactured by them are printed on these articles. It reminds the user of the brand name of the firm because of their daily use.

When a product is given free along with the product purchased by a customer, it is offered in with-pack premium. For example, one spoon is given free inside one kilogram packet of detergent Rin.

It is branding which is the process of assigning a distinctive name to a product. The product is known and remembered by the name of brand. A brand is a name, term, symbol etc. For instance there is a symbol made on Rath Vanaspati which differentiates it from other products.

Advertising and sales promotion can only bring in customers. In personal selling a good salesman informs and demonstrates about the product .Therefore a customer is induced to buy a product. So it converts demand into sales, so it is right answer here.

Magazine advertising must not be used for illiterate people. As message is imparted through a magazine, advertisement has to be read.

In this the companies or various organizations, visit the college to recruit students who are in last year of their professional courses and select suitable candidates by interview etc.. For instanc, Reliance Industries Ltd. recruits managers by visiting Indian Institute of Management at Ahmedabad.

An industry is a group of firms. One of them controls the large share of the market that change in its supply will effect the market price. Such a dominant firm acts as a price leader and the other firms have to follow the pattern of price set up by the leader. So follow the leader pricing is also known as pattern pricing.

It is derivatives market in which forward contracts are made. In order to cover the loss of the decrease in the price of shares, purchase of shares at the current price but for delivery after a month is undertaken. So it is a forward contract that is delivery is after a month.

All of these, product mix, price mix, physical distribution mix and promotion mix are elements of marketing mix, so it is the correct answer.
All of these, product mix, price mix, physical distribution mix and promotion mix are elements of marketing mix, so it is the correct answer.

The process in which a trainee is trained through different positions or departments for a specified period of time is known as job rotation. It involves systematic transfer of a employee from one type of job to another or from one type of position to another so as to broaden his knowledge and outlook. For instance an administrative employee may look after the reception area dealing with customers and enquiries.

Transportation is not a facilitating function, but function of physical supply. As transportation helps in physical movement of goods from one place to another that is from the place of production to the place of consumption, it creates place utility.