TyroCity: Business Studies Notes

Qualities of good indexing

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Some qualities of good indexing:

1. Simple: It should be easy and simple to be understood by the entire employees.

2. Economy: Indexing should be cheap and must come under the budget of the organization. The installation and operation cost should be low.

3. Flexible: It should be flexible enough. It must be dynamic and changeable according to the needs of an organization

4. Compactness: It should be compact and should not take unnecessary space

5. Safety: A good indexing system must preserve all the necessary documents from insects, dust, fire, water and so on.

6. Accessibility: Files and folders must be preserved for future and must be easily accessible.

Importance of direction

Business Studies XII — Sun, 18 Aug 2013 05:41:42 +0000

1. Integrative force: direction integrates the activities of employees. It is mainly concentrated about what, when, where and who to do the work. Without integration none of the activities can be fulfilled. Effective operation can be achieved only when the efforts of all employees are integrated.

2. Initiate the action: in direction, a manager motivates the subordinates to perform the activities. When an employee receives the direction, his or her initiative will be started to do work.

3. Improves efficiency: direction consists of motivation, leadership and communication. When all these managerial tools are implemented the potentiality of employees is fully utilized from which they perform high performance.

4. Facilitates change: change always comes in an organization. Healthy change is important. Some people do not want the condition of change. But change is inevitable. Direction is an important function of management that gives the orders and motivates the personnel for change.

5. Helps in stability and growth: direction is an integrated activity of motivation, leadership and communication. These activities help in stability of the organization. When these activities are used, the capabilities are utilized which helps in flexibility and growth of the organization.

6. Helps to achieve the organizational goals: the manager gives the direction to do work and it gives knowledge, information and goals of the organization. When all people know about the goals it helps on achieving the organizational goals effectively.

7. Means of motivation: when direction is effective and meaningful, the employees are properly motivated. Direction works for motivating people to contribute maximum efforts. It brings positive feeling towards the organization.

Concept of public enterprises

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Public enterprise is an organization which is owned, managed and controlled by the government. It is necessary for the active participation of government in individual and commercial level. It is financed and operated by the government. It provides service to the public. It provides goods and services to the public at reasonable price. It is guide by service motive but it can earn nominal profit. It helps in maintaining the state of ownership and operation of industrial, agricultural, financial and commercial undertaking. It is one autonomous body which is managed and owned by government and which provide goods/ services for public.

Concept of office management

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Office management is the process of planning, organizing, staffing, directing and controlling the administrative functions of an office in order to achieve the objectives of the organization. It is the process o utilizing the office resources efficiently o obtain the best result with less effort and cost. It helps in receiving, recording and processing, supplying and retaining information. It is the branch of management which deals with performance of these functions

Elements of office management

1. Personnel
An office provides wages, salaries to their employees. They also keep records of workers attendance, leave due, provident fund, and calculation of overtime. They also help to maintain the relationship between management and workers. It is the main element of office management. Success of office depends upon the employee.

2. Means
They are the tools which help to perform different activities efficiently. The means are material, methods, money and machines. They are vital for office works. Office must use right types of means. If office doesn’t provide right means then it will be difficult to manage all the activities.

3. Environment
Office should perform efficient and effective work for the good and effective management interior design, lighting, ventilation and cleanliness should be maintained. The location, government policy, customer should be managed. There must be proper working environment.

4. Purpose
In this element, office has to set up definite purpose. It has definite objective, personnel, means and other elements. It helps to provide guideline and direction to office activities. It helps in planning, organizing, staffing, directing, controlling, staffing and other office work etc.

Importance of business communication

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Importance of business communication are listed below:

1. Managerial efficiency: Communication helps in the smooth operation of management. A managerial task can only be performed when the communication system is effective.

2. Enhance morale and relations: Effective communication emphasizes the employee’s participation in management. It helps to build the employees morale and cordial industrial relations between management and employees

3. Effective leadership: Effective leadership depends on effective communication. Two-way communication helps in effective communication. A managerial leader must handle the subordinates. For ordering qualitative leadership is essential. And that can be obtained from a proper system of communication.

4. Mutual trust and confidence: Mutual trust and confidence between labor and management are necessary for the effective movement of the organization. When there is effective communication, it helps to reduce misunderstanding and develop mutual trust.

5. Better decision: The success of an organization can be measured in better decisions. When the information, data and other fact are not effectively communicated, it hampers the decision-making. So, when the facts are communicated to concerned department, organization and person. It is easy to make decisions promptly.

6. Staffing: When the information are correctly communicated in time, it helps in the function of selection, placement, socialization, promotion, and transfer.

7. Better managerial concern: All managerial functions such as planning, organizing, directing, controlling, etc can’t be conducted without communication.

Characteristics of joint stock company

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Compulsory incorporation:
A company is a voluntary association of persons formed and incorporated under the existing Corrine law. Only when it gets certificate o incorporation it comes into existence as a body corporate.

Artificial person:
A company is an artificial person created by law. It is created by legal process and not by natural birth. Even though it has no natural personality, it has legal personality. Therefore, it can enter into contracts, sue and can be sued, own property, appoint employees and borrow money like any other natural person.

Common seal:
Since a company is an artificial person having no physical features like a natural person, it cannot sign. Hence, every company by law must have a common seal in which its name is engraved. The common seal can serve as its signature. The common seal is fixed on all important documents and contracts which is witnessed by signature of two directors and countersigned by secretary where ever required. The common seal is kept under the custody of directors.

Perpetual succession:
Since every company has separate existence from its members, directors and employees, their death, insolvency or insanity will not affect its life and existence. Men may come, and they may go but a company remains forever. It can be wound up under the provision of the act.

Limited liability:
Usually the liability of members of a company is limited to the extent of uncalled or unpaid shares held by them. Their personal property cannot be seized to meet the company’s liability beyond the above mentioned liability.

Share capital:
The capital required by the company is raised by the issue of its shares. The share is a document that acknowledges the ownership of the company. The members who hold the share of a company can transfer its ownership to any other person, without the company’s permission.

Separation of ownership and capital:
In company organization the ownership and management are separate. The shareholders who are the owners do not take active part in the everyday affairs of the company. Instead, they elect their representative known as directors, who with the help of managers and employees manage the company. Thus, there is division of labor and specialization.

Legal entity:
Since the company is created by law, it has separate legal existence compared to its members. Therefore, the members cannot be personally held responsible for the acts of company and company cannot be held liable for the acts of the members.

Large membership:
The Company is owned by many members- maximum of 50 in the case of private limited company and unlimited number of member in the case of public limited company.

Functions of managerial leader

Business Studies XII — Sun, 18 Aug 2013 05:41:42 +0000

Leader is true representative of the organization who represents the organization to those working for it as well as to the outside world. A leader functions as a chain between management and staff. S/he represents management before the workers and work before the management
A leader must establish organizational goals. It is the primary function of the leader. S/he also should participate with superior to get it done
When the skill and knowledge of the subordinates are not used properly a managerial leader must provide the guideline and effective path as motivational factor to them
A leader must act like a captain to the team, must win the confidence of most of the colleagues and encourage team work.
The leader must design proper system of communication and communicate authority and responsibility to its subordinates so that they can know about their work
A managerial leader must understand problems and feelings of the subordinates and try to solve them tactfully
A leader must maintain good relationship with subordinates and other people
A good managerial leader must facilitate change in the organization whenever and wherever necessary.
A leader has the responsibility to control, supervise and see different departments to achieve organizational goals
A leader should be able to evaluate the performance of subordinates. There must be provision of both reward and punishment.

Model Question of Business Studies – Class 11

TyroCity.com — Sun, 18 Aug 2013 05:41:42 +0000

CLASS : 11
FOR : 2070
Time : 3hrs
F.M = 100
P.M. = 32

Attempt any TEN questions, Eight from Group and Two from Group.

Group - Short Answer Questions [8 × 8 = 64]

What is business environment? Explain the component of internal environment. (3 + 5)
What is company meeting? Describe the annual general meeting of a public limited company. (3 + 5)
Examine the role of cooperatives in developing countries. (8)
Elaborate the concept of multinational company. Explain the importance of multinational company. (3 + 5)
What are business support agencies? Explain the functions of Nepal Chamber of Commerce. (3 + 5)
What is office layout ? Describe the principle of good office layout. (3 + 5)
State and explain the various types of traditional filing systems. (2 + 6)
What is indexing ? What are the qualities of good indexing ? (3 + 5)
What factors should you consider for selecting furniture for your office ? Explain. (8)
Draft an order letter in English to M/S Ananda Brothers, New Delhi for the supply of 20 dozen Popular Linen Office Shirts Size No. 40, 10 dozen Smart Drill Trousers (white) waist size 3o and 20 dozen Quick Linen Shirts Size No. 25 .(8)

Group Long Answer Questions [2 × 18 = 26]

What is business ? Discuss the social responsibilities of business towards different stakeholders. (5 + 13)
What are the characteristics of partnership firm ? Discuss the procedure of registration of partnership firm in Nepal. (8 + 10)
What is record management? What are the types of records? Discuss the principles of records management. (4 + 4 + 10)

Types and means of business communication

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Types of communication on the basis of formality

Formal communication

Formal communication refers to interchange of information officially. The flow of communication is controlled and is a deliberate effort. This makes it possible for the information to reach the desired place without any hindrance, at a little cost and in a proper way. This is also known as ‘Through Proper Channel Communication.’ It can be both written and oral. Daily works are handled through oral communication, while the policy matters require written communication. This communication is adopted among those employees where formal relations have been established by the organization. The sender and the receiver have some sort of organizational relations. The communication has to pass through a definite channel while moving from one person to another. For example, to convey the feelings of a worker to the manager, the foreman’s help has to be sought. This channel is concerned with the authorized organizational messages only and the personal messages are out of its jurisdiction. This channel of communication is not established automatically but effort has to be made for its creation. It is decided keeping in view the objectives of the organization.

Informal communication

Informal communication refers to interchange of information unofficially. This communication is based on informal relations (like friendship, membership of the same club, the same place of birth, etc.) And, therefore, is free from all the organizational formalities. The exchange of informal messages usually takes place on the occasion of community meals, social occasions, parties, etc. On such occasions, the superiors gather such information from their subordinates as may be difficult to get through formal communication. Such communication includes comments, suggestions, etc. For example, a superior wants to complain against his subordinate to his higher officer and at the same time he is afraid of giving it in writing. This can be conveyed to the higher officer through informal communication, say during the course of a conversation. There is no definite channel of communication. This communication is born out of social relations who mean that it is beyond the restrictions of the organization. No superior-subordinate relationship figures therein. A more sociable superior can gather much information through this channel. Through this communication, information about the work and the individual can be collected. It moves in a zigzag manner.

Communication on the basis of direction of flow

1. Horizontal communication:
It is the process of lateral flow of information in order to coordinate work activities at the same level of management hierarchy. It helps in coordination of task, share information and minimize the conflict. In other words, it is the flow of information between the activities and to solve the organization problems, this can be shown by following figure.

2. Vertical communication:
It is the process of upward and downward flow of information in order to coordinate work activities at the different level of management hierarchy. It helps in task directives, share information about rules and regulations, responsibility, problem, achievement and suggestions and minimize the conflict between subordinates and superior. There are two types of vertical communication

Downward communication: It is the flow of information from top to bottom through formal lines of authority. Top-level management transmits the information to subordinates about objectives, policies, strategies and responsibility.

Upward communication: It is the flow of information from bottom to top in an organization. Middle and low level management transmits the information to superior about problems, suggestions Upward communication

3. Diagonal communication:
It is the flow information between the superior and subordinates who are neither in the same department nor at the same level. It violates the principle of chain of command and unity of command.
Diagonal communication

Means of communication

1. Oral communication
The method of exchanging information through spoken word is known as oral communication. The information is passed from one place to another place by speaking. It helps to save time and provide immediate response and feedback. In oral communication, human voice is used. There are many means of oral communication. Some of them are telephone, radio, television.

It is economical. It is quick and fast. It helps to save time. It is more effective in comparison to written communication. It helps to give immediate feedback or response. It is the best method of solving problems. Ti is flexible. Decisions also can be changed on the spot. But it is less reliable and not good for evidence. It cannot provide future reference. It is not suitable for long message. Sometimes, there is language problem. It is not so suitable if sender and receiver are in different places.

2. Written communication
The method of exchanging information by writing is called written communication. It is important when message is complicated, accuracy and authentic. It is reliable source. It helps in future reference. It can be shown as evidence in court. The means of written communication are letter, order, report etc. It is authentic. It can be provided as proof in court. It can provide future reference. It is suitable for long message. It is suitable if sender and receiver are in different places. It is not economical. It is not quick and fast. It is time-consuming. It is not so effective in comparison to oral communication. It doesn’t help to give immediate feedback or response. It doesn’t help to solve problems. It isn’t flexible. Decisions also can’t be changed on the spot.

Concept of business communication

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

Meaning of business communication

The word communication is derived from the word “communis” which means to inform or tell information. Communication is the process of transformation of information from one person to another. It is a process of exchanging opinions ideas, feelings, information, views and other fast between or among two or more people. It involves the systematic and continuous process of telling, listening and understanding. Communication skill means conveying the message to others and understanding the message from others. Business communication is a bridge of passing information between the management and the employees.

Business Studies XI Questions

TyroCity.com — Sun, 18 Aug 2013 05:41:42 +0000

Question Collection

Model Question of Business Studies – Class 11

Types of cooperative organization

Business Studies XI Notes — Sun, 18 Aug 2013 05:41:42 +0000

1. Producer co-operatives: Some co-operatives process and market their members’ products and services directly while others may also sell the input necessary to their members’ economic activities. Examples: Agriculture co-operatives, pooling of equipment, advisory services, etc.

2. Multi-stakeholder co-operatives: The membership of these co-operatives is made of different categories of members who share a common interest in the organization. Examples: home care services, health services, community services, etc.

3. Worker co-operatives: The purpose of these co-operatives is to provide their members with work by operating an enterprise. The co-operatives are owned by their employee members. Examples: forestry, leisure, production and manufacturing, tourism, communications and marketing, etc.

4. Worker-Shareholder co-operatives: These are incorporated co-operatives that hold partial ownership of the business in which the co-op’s members are employed. Because of its share capital, the co-operative may participate in the management of the business and the workers may influence work organization. Examples: production and manufacturing, technology, etc.

5. Consumer co-operatives: They provide their members with goods and services for their personal use. Examples: Food, credit unions, housing, insurance co-operatives, etc.