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12th Commerce English Medium 2nd Assignment July 2021 Answerkey

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12th Commerce English Medium Tamilnadu Stateboard 2nd Assignment July 2021 Answerkey :- Here is the full answerkey for 12th standard commerce students, we shared all asignment answerkey in our website ,please use the direct link given in the below section

Assignment

Standard – XII Subject:Commerce

Unit – 1

Chapter-2 Functions of Management.

Part – A

I. Multiple choice questions

1.Functions of management are mainly classified into……


a) Two

b) Three

c) Four

d) Five

Answer:- a) Two

2.”Think before you act “its related to ………


a) Organising

b) Staffing

c) Planning

d) Directing

Answer:- c) Planning

3.Pick out the correct pair?


a) Newsletter- directing
b) Selection of competent person -directing
c) Favorable climate conditions to work- controlling
d) To evaluate the performance of employees- Co-ordinating

Answer:-

4.Which is the main functions of management?


a) Innovating

b) Controlling

c) Planning

d) Decision making

Answer:- c) Planning


5.Which of the following is not a main function?


a) Co-ordinating

b) Controlling

c) Directing

d) Innovating

Answer:- d) Innovating


6………is included in every managerial function


a) Co-ordinating

b) Controlling

c) Staffing

d) Organising

Answer:- a) Co-ordinating

7.Which of the following is not a subsidiary function of management?


a) Representation

b) Decision-making

c) Communication

d) Planning

Answer:- d) Planning

8.Which is a primary function of management?


a) Innovating

b) Controlling

c) Planning

d) Decision-making

Answer:- c) Planning


9.Which of the following is verification function?


a) Planning

b) Organising

c) Staffing

d) Controlling

Answer:- d) Controlling


10……….is the transmission of human thoughts, views are opinions from one person to another person.


a) Decision-making

b) Communication

c) Planning

d) Innovation

Answer:- b) Communication


Part – B

II.Very Short Answer.


11.Write a short note about planning.

Planning is the primary function of management. Nothing can be performed without planning. Planning is a constructive review of future needs so that present actions can be adjusted in view of the established goal.


12.What is meant by motivation?


13.What is meant by controlling?

14.List out the subsidiary functions of management.


15.What is the traditional proverb used in planning?

“Thinking before doing” or “Look Before you Leap” are some of the usual traditional proverbs.


Part – C

III. Short Answer.

16.List out the main functions of management.

17.What is mean by stopping?


17.What is mean by Staffing?

Staffing function comprises the activities of selection and placement of competent personnel.

Staffing refers to the placement of the right persons in the right jobs. Staffing includes a selection of right persons, training to those needy persons, promotion of best persons, the retirement of old persons, performance appraisal of all the personnel, and adequate remuneration of personnel. The success of any enterprise depends upon the successful performance of the staffing function.


18.What is meant by innovating?


19.What is meant by Coordinating?

Coordination is the synchronization of the actions of all individuals, working in the enterprise in different capacities. So as Lo leads the most successful attainment of the common objectives.
Co-ordination is included in every managerial function.

Eg:


20.How the employees are informed about important matters in a company?

Employees are kept informed of all necessary matters by circulars, instructions manuals, newsletters, notice – boards, meetings, participative mechanisms, etc.

Part – D

IV.Write in detail.


21.Explain the main functions of management.

Main Functions:

  1. Planning:- Planning is the primary function of management. Planning is a constructive review of future needs so that present actions can be adjusted in view of the established goal.
  2. Organising:- Organising is the process of establishing harmonious relationships among the members of an organization and the creation of a network of relationships among them.
  3. Staffing:- Staffing function comprises the activities of selection and placement of competent personnel.
  4. Directing:- Directing denotes motivating, leading, guiding, and communicating with subordinates on an ongoing basis in order to accomplish pre-set goals.
  5. Controlling:- Controlling is performed to evaluate the performance of employees and deciding increments and promotion decisions.
  6. Co-ordination:- Co-ordination is the synchronization of the actions of all individuals, working in the enterprise in different capacities.
  7. Motivating: The goals are achieved with the help of motivation. Motivation includes increasing the speed of performance of a work and developing a willingness on the part of workers.


22.Explain the subsidiary functions of management

Subsidiary Functions:

  1. Innovation:- Innovation includes developing new material, new products, new techniques in production, new package, the new design of a product, and cost reduction.
  2. Representation:- A manager has to act as a representative of a company. It is the duty of every manager to have good relations with others.
  3. Decision-making:- Every employee of an organization has to take a number of decisions every day. Decision-making helps in the smooth functioning of an organization.
  4. Communication:- Communication is the transmission of human thoughts, views or opinions from one person to another person. Communication helps the regulation of the job and co-ordinates the activities.

Chapter- 3 Management By Objectives

Management By Objectives (MBO) and Management By Exception (MBE)

Part – A

I.One Mark Questions


1.——– system gives full scope to the individual strength and responsibility.


a) MBO

b) MBE

c)MBM

d) MBA

Answer:- a) MBO

2.Which is the first step in process of MBO?


a) Fixing key result area

b) Appraisal of activities

c) Matching resources with activities

d) Defining organisational objectives

Answer:- d) Defining organisational objectives

3.———-keeps management alert to opportunities and treats by identifying critical problems.


a) MBA

b) MBE

c) MBM

d) MBO

Answer:- b) MBE


4.Delegation of authority is easily done with the help of———


a) MBM

b) MBE

c) MBO

d) MBA

Answer:- c) MBO

5.MBO is popularised in the USA by …..


a) Professor Reddin

b) George Odiorne

c) Hentry Foyal

d) Tailor

Answer:- b) George Odiorne


6 .Which is the final step in the process of MBO?


a) Matching resources with objective

b) Periodical review meetings

c) Reappraisal of objectives

d) Appraisal of activities

Answer:- c) Reappraisal of objectives


7 .: MBE keeps management alert to opportunities and threats by identifying critical problems.
Reason: It can avoiduninformed and impulsive action.


a)Assertion- Correct, reason- incurrent

b) Assertion and reason- incorrect

c) Assertion and re ent – correct

d) As rtion incorrect, reason- rrect

Answer:-

8.Which of the following is/an example of KRA?


a) Profitability

b) Market Standing

c) Innovation

d)All these

Answer:-

9.Assertion(A) : Decision is taken by the management very quickly.
Reason(R): Each worker knows the purpose of taking a decision and does not oppose the decision.


a) Assertion- Correct, Reason- incorrect
b)Assertion and reason – incorrect
c) Assertion and reason- Correct
d) Assertion -incorrect, Reason- correct

Answer:-

10.”Exception has occurred” this issue needs to be passed to ———.


a) The senior manager

b) Director

c) Employee

d) Owner

Answer:-


Part – B

II.Very Short Answer.

11.What are the objectives of MBO?

12.Bring out the meaning of MBE.

Management By Exception is an important principle of managerial control suggested by the classical writers on management. It is based on the belief that an attempt to control everything results in controlling nothing. Management by exception is a style of business management that focuses on identifying and handling cases that deviate from the norm

13.What is MBO?

MBO is popularised in the USA by George Odiome. According to him, “MBO is a system wherein the superior and the subordinate managers of an organisation jointly identify its common goals, define each individual’s major area of responsibility in terms of the result expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members”.

14.What is known as KRA?


15.What are the disadvantages of MBE?

  1. The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level.
  2. Furthermore, it takes time to pass the issues to managers. Managing employees who deviate from the normal procedures. Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed/ terminated.

Part – C

III. Short Answer.

16.Write the features of MBO.

17.What are the process of MBE?

18.What are the advantages of MBE?

  1. The main disadvantage of MBE is, only managers have the power over really important decisions, which can be demotivating for employees at a lower level.
  2. Furthermore, it takes time to pass the issues to managers. Managing employees who deviate from the normal procedures. Because of compliance failures are considered difficult to manage and typically find themselves with limited job duties and ultimately dismissed/ terminated.


19.Define MBO.

MBO is popularised in the USA by George Odiome. According to him, “MBO is a system wherein the superior and the subordinate managers of an organisation jointly identify its common goals, define each individual’s major area of responsibility in terms of the result expected of him and use these measures as guides for operating the unit and assessing the contribution of each of its members”.

20.What are the disadvantages of MBO?

Part – D

IV.Write in detail.

21.What are the process of MBO?

22.What are the advantages of MBO?

Unit – 2

Chapter – 4 Introduction to Financial Markets

Part – A

I.One Mark Questions

1.Financial market facilitates business firms ———-


a) To rise funds

b) To recruit workers

c) To make more sales

d) To minimize fund requirement

Answer:- a) To rise funds


2.Capital market is a market for ——-


a) Short Term Finance

b) Medium Term finance

c) Long Term Finance

d) Both short Term and Medium
Term finance

Answer:- c) Long Term Finance

3.Primary market is also called as——-


a) Secondary market

b) Money market

c) New Issue Market

d) Indirect Market

Answer:- c) New Issue Market

4.Spot Market is a market where the delivery of the financial instrument and payment of cash occurs———


a) Immediately

b) In the future

c) Uncertain

d) After one month

Answer:- a) Immediately


5.How many times a security can be sold in the secondary market——-


a) Only one time

b) Two time

c) Three times

d) Multiple times

Answer:- d) Multiple times

6.Short term financial market is called————


a) Money market

b capital market

c) Debt market

d Equity Mark t

Answer:- a) Money market

7.Which market calle NIM Ma ——


a) Secondary Ma ket

b Prim y Ma et

c) Capital market

d) Money Market

Answer:-

8.A Market where the delivery of the financial instrument and payment of cash occurs immediately ——–


a) Forward Market

b) Spot market

c) Primary Market

d) secondary market

Answer:- b) Spot market

9.A Market for securities that are already sold ——


a) Primary Market

b) Secondary Market

c) capital market

d) Money Market

Answer:- b) Secondary Market

10.A Market for trading in Debt Instrument———-


a) Equity market

b) Debt Market

c) Primary Market

d) Secondary Market

Answer:- b) Debt Market

Part – B

II.Very Short Answer.

11.What are the components of organized sectors?

  1. Regulators
  2. Financial Institutions
  3. Financial Markets
  4. Financial Services

12.Write a note on Financial Market.

A market where Financial Instrument such as Financial Claims, Assets, Securities and Traded is known as “Financial Market”

13.What is Spot Market?

14.What is Debt Market?

Debt Market is the financial market for trading in Debt instruments (i.e. Government Bonds or Securities, Corporate Debentures or Bonds).

15.Give the meaning for the term Marketable Assets.

Marketable Assets are those which can be easily transferred from one person to another.


Part – C

III. Short Answer.

16.Give the meaning and definition of Financial Market.

Meaning: A market wherein financial instruments such as financial claims, assets and securities are traded is known as a financial market’.

Definition: According to Brigham, Eugene F, “The place where people and organizations wanting to borrow money are-brought together with those having surplus funds is called a . financial market.”

17.Differentiate Spot Market from Future Market.

18.Write a note on Secondary Market.

A Secondary Market is a market for securities that are already issued. Stock Exchange is an important institution in the secondary market.

19.Bring out the scope of Financial Market in India.

The Financial Market provides short-term and long-term financial assistance to

The above-stated individuals, institutions and Government can get the required funds in time.
It leads to overall economic development.

20.Write any 3 functions of Financial Market.

(I) Intermediary Functions:

  1. Transfer of Resources: Financial markets facilitate the transfer of real economic resources from lenders to ultimate borrowers.
  2. Enhancing Income: Financial markets allow lenders to earn interest/dividends on their surplus investible funds and thus contributing to the enhancement of the individual and the national income.
  3. Productive Usage: Financial markets allow for the productive use of the funds borrowed and thus enhancing the income and the gross national production.
  4. Capital Formation: Financial markets provide a channel through which new savings flow to aid the capital formation of a country.
  5. Price Determination: Financial markets allow for the determination of the price of, the traded financial asset through the interaction of buyers and sellers.
  6. Sale. Mechanism: Financial market provides a mechanism for selling a financial asset by an investor so as to offer the benefits of marketability and liquidity of such assets.
  7. Information: The activities of the participants in the financial market result in the generation and the consequent dissemination of information to the various segments of the markets, so as to reduce the cost of the transaction of financial assets.

(II) Financial Functions:

  1. Providing the borrowers with funds so as to enable them to carry out their investment plans.
  2. Providing the lenders with earning assets so as to enable them to earn wealth by deploying the assets in productive ventures.
  3. Providing liquidity in the market so as to facilitate the trading of funds.

Part – D

IV.Write in deta .

21 Distinguish beween New Issue market and Secondary Market


22.Enumerate the different kinds of Financial Markets.

Financial Markets can be classified in different ways.
(A) On the Basis of Type of Financial Claim

  1. Debt Market is the financial market for trading in Debt instruments (i.e. Government Bonds or Securities, Corporate Debentures or Bonds).
  2. Equity Market is the financial market for trading in Equity Shares of Companies.

(B) On the Basis of Maturity of Financial Claim

  1. Money Market is the market for short-term financial claim (usually one year or less) E.g. Treasury Bills, Commercial Paper, Certificates of Deposit.
  2. Capital Market is the market for long-term financial claim more than a year E.g. Shares, Debentures.

(C) On the Basis of Time of Issue of Financial Claim

  1. Primary Market is a term used to include all the institutions that are involved in the sale of securities for the first time by the issuers (companies). Here the money from investors goes directly to the issuers.
  2. A secondary market is a market for securities that are already issued. Stock Exchange is an important institution in the secondary market.

(D) On the Basis of Timing of Delivery of Financial Claim

  1. Cash/Spot Market is a market where the delivery of the financial instrument and payment of cash occurs immediately, i.e. settlement is completed immediately.
  2. Forward or Futures Market is a market where the delivery of assets and payment of cash takes place at a pre-determined time frame in the future.

(E) On the Basis of the Organizational Structure of the Financial Market

  1. Exchange-Traded Market is a centralized organization (stock exchange) with standardized procedures.
  2. Over-the-Counter Market is a decentralized market (outside the stock exchange), with customized procedures

Chapter- 5 Capital Market

Part – A

I.One Mark Questions


1.When the NSEI was established …….


a) 1990

b) 1992

c)1998

d)1997

Answer:- b) 1992

2.Capital market do not provide


a) Short term funds

b) Debenture funds

c) longterm funds

d) Equity funds

Answer:- a) Short term funds

3.Assertion A): Financial institutions that provide facilities for channeling savings of small investors
into avenues of productive investments are called “Mutual funds”.
Reason (R): “Small drops of water makes a Big Ocean”.


a) A is correct but R is in correct
b) A is in correct but R is correct
c) A and R Correct and R is the correct explanation of A
d) A and R Correct and R is not the correct explanation of A

Answer:-

4.Participants in the capital market includes


a) Individuals

b) Corporate

c) Financial institutions

d) All of the above

Answer:- d) All of the above

Match the following


1) securities market – a) companies
2) Price o securities – b) long term fu ds
3) partici nts – company se uri s
4) capital market d) dem nd and upp y


a) 1 , 2- c 3 -a, -b
b) 1 -c, 2- a, 3 -d, 4 -b
c) 1 -c, 2 -d, 3 -b, 4 -a
d) 1 -c, 2 -d, 3 -a, 4 -b

Answer:-

6.Primary market is a market where securities are traded in the


a) First time

b) Second time

c) Several times

d) Three times

Answer:- a) First time

7.Which one is incorrect pair


a) Hard commodities market – Gold
b) Commodity market – Securities
c) Soft commodities market – Cotton
d) Derivatives market – Financial instruments

Answer:-

8.The ………. was setup by a premier financial institution to allow the trading of securities across the
electronic counters throughout the country


a) Factoring

b) OTCEI


c) Mutual funds

d) Venture fund institution

Answer:-

9.Capital Market deals _

a

a) Securities

b) Shares

c) A and B

d) None of these

Answer:-

10.Find the right one


a) Mutual funds greatly change the savings of large investors
b) Canara bank caring out Mutual Fund business
c) The company cannot get an exemption through Mutual Fund
d) Mutual funds provide less return to investors

Answer:-


Part – B

II.Very Short Answer.

11.Give some companies carry out Mutual Fund business?

12 What is capital market?

13 Who are the participants in a capital market)

The participants of the Capital Market are Individuals and Institutions such as the corporate sector, Government, and other financial institutions [Banks]

14.Write a note on OTCEI?

15.How is price determined in a capital market?

The price of the securities is determined based on the demand and supply prevailing in the capital market for securities

Part – C

III. Short Answer

16.What are the various kinds of capital market? Explain

Primary Market:

Secondary Market:

17.What is commodity market?

18.Explain any two functions of the Capital Market

Ready and Continuous Market: The stock Exchange provides a central and convenient place where Buyers and Sellers can easily Buy and Sell securities.

A reliable guide to performance: The capital market serves as a reliable guide to the performance and financial position of corporate and thereby promotes efficiency.

19.Write a note on foreign exchange market?

The foreign exchange market abets foreign exchange trading. It is the largest, most liquid market in the world with an average traded value of more than $5 trillion per day. It includes all of the currencies in the world and any individual, company or country can participate in it.

20.Explain about Factoring and Venture Capital institutions

“Factoring” is an arrangement whereby a financial institution provides financial accommodation on the basis of assignment/sale of account receivables. The factoring institutions collect the book debts for and on behalf of its clients. Some of the factoring institutions operating in India are SBI Factors and Commercial Services Private Limited, a subsidiary of State Bank of India and Canbank Factors Limited, a subsidiary of Canara Bank.

Venture capital financing is a form of equity financing designed especially for funding new and innovative project ideas. Venture capital funds bring into force the hi-technology projects which are converted into commercial production.


Part – D

IV.Write in detail.

21.Briefly explain the functions of Capital market (any five).

  1. Savings and Capital Formation: In capital market, various types of securities help to mobilize savings from various sectors of the population (Individuals, Corporate, Govt., etc.). The twin features of reasonable return and liquidity in stock exchange are definite incentives to the people to invest in securities. This accelerates the capital formation in the country.
  2. Permanent Capital: The existence of a capital market/stock exchange enables companies to raise permanent capital. The investors cannot commit their funds for a permanent period but companies require funds permanently.
  3. Industrial Growth: The stock exchange is a central market through which resources are transferred to the industrial sector of the economy.
  4. Beady and Continuous Market: The stock exchange provides a central convenient place where buyers and sellers can easily purchase and sell securities.
  5. Reliable Guide to Performance: The capital market serves as a reliable guide to the
    performance and financial position of corporate, and thereby promotes efficiency.

22.Discuss the characteristics of a Capital market?

Price : The price of the securities is determined based on the demand and supply prevailing in the capital market for securities.

Market for Financial Assets : Capital Market provides a transaction platform for long term financial assets.

Securities Market : The dealings in a capital market done through shares, Debentures etc. [Securities]
The capital market is thus called securities market.

Participants : The participants of capital market include individuals, corporate sectors, government, banks and other financial institutions.

Location : Capital Market is not confined to certain specific locations, although it is true that parts of the market are concentrated in certain well-known centres known as Stock Exchange.

Chapter- 6 Money Market

Part – A

I.One Mark Questions

1.Government Securities can be bought and sold in ———— market and sold.


a) Commercial paper market

b) Treasury Bill market

c) Gilt- edged securities

d) Capital market.

Answer:-

2.Money market provides ———–.


a) Medium term funds

b) Short term funds

c) Long term funds

d) Shares

Answer:- b) Short term funds

3.Money market institutions are ————.


a) Investment houses

b) Mortgage banks

c) Reserve Bank of India

d) Commercial banks and discount houses

Answer:- d) Commercial banks and discount

4.Risk in the money market is ——–.


a) High

b) Market risk

c) Low credit and market risk

d) Medium risk

Answer:- c) Low credit and market risk

5.Treasury bills commands ———–


a) High liquidity

b) Low liquidity

c) Medium liquidity

d) Limited liquidity

Answer:- a) High liquidity

6.Government securities are issued by agencies such as ———–


a)Central Go ernment

b) State Government

c)Semi- govrnmen authoriti s

d) all of th above

Answer:- d) all of th above

7.———– money market is the oldest highly developed and leading money market in the world.


a) London

b) Mumbai

c) New York

d) Delhi

Answer:- a) London


8 .Select the correct pair


a) Treasury bills – Liquidity
b) Certificate of deposits – Self fluidity
c) Commercial bills – Bill of exchange
d) Money market – short- term financial market.

Answer:-

9.Match the following .


List-I List -II
I. Treasury bills – (a) 90 days.
II. Commercial bills – (b) 364 days.
III. Certificate of deposit – (c) Gilt – edged securities
IV. Government securities – (d) Usance promissory notes


a) 1(b) 2(a) 3(d) 4(c)
b) 1(d) 2(c) 3( b) 4(a)
c) 1(c) 2(d) 3(a) 4(b)

d) 1(b) 2(d) 3(c) 4(a)

Answer:-

10.Money market participants are —————.


a)Commercial banks

b) State Governments

c) Public

d) All of the above

Answer:- d) All of the above

Part – B

II.Very Short Answer.

11.Define the term Money Market.

According to Crowther, ’’the money market is the collective name given to the various firms and institutions that deal in the various grades of near money”.

12.What is Government securities market?

Certificate of Deposits is a short-term deposit instrument issued by banks and financial institutions to raise large sums of money. The Certificate of Deposit is transferable from one party to another. Due to their negotiable feature, they are also known as negotiable certificates of deposit.

13.What do you mean by Switching?

  1. Treasury Bills in the Treasury Market
  2. Money at Call and Short Notice in the Call Loan Market
  3. Commercial Bills and Promissory Notes in the Bill Market

14.State any two Money market instruments.

Treasury Bills:

Commercial Bill:

15.Write any two oldest Money markets in the world.


Part – C

III. Short Answer.

16.What are the features of Treasury bill?

17.Explain the types Treasury bills.

Treasury Bills may be classified into three. They are:

  1. 91 days Treasury Bills
  2. 182 days Treasury Bills
  3. 364 days Treasury Bills

18.What are the types of Commercial bill?

  1. Demand and Usance Bills
  2. Clean bills and documentary Bills
  3. Inland bills and Foreign Bills
  4. Indigenous Bills
  5. Accommodation and supply Bills

19.What are the participants of Money market?

20.What are the features of Commercial bills?

The features of the Commercial Bills are as follows:

  1. Drawer
  2. Acceptor
  3. Payee
  4. Discounter
  5. Endorser
  6. Assessment
  7. Maturity
  8. Credit Rating

Part – D

IV.Write in detail.

21.Differentiate between the money Market and Capital market.

Money Market – Definition :
“The Money Market is the collective name given to the various firms and institutions that deal in the various grades of near money”. – CROWTHER

Capital Market – Definition :
“A complex of institutions investments and practices with established links between the demand for and supply of different types of capital gains”. – ARUN K. DATTA RURALD

22.Explain the characteristics of Money market.

  1. Short-term Funds: It is a market purely for short-term funds or financial assets called near money.
  2. Maturity Period: It deals with financial assets having a maturity period upto one year only.
  3. Conversion of Cash: It deals with only those assets which can be converted into cash readily without loss and with minimum transaction cost.
  4. No Formal Place: Generally, transactions take place through phone, i.e., oral communication. Relevant documents and written communications can be exchanged subsequently.
  5. Sub-markets: It is not a single homogeneous market. It comprises several sub-markets each specialising in a particular type of financing.
  6. Role of Market: The components of a money market are the Central Bank, Commercial Banks. Commercial banks generally play a dominant role in this market.
  7. Highly Organized Banking System: The Commercial Banks are the nerve centre of the whole money market. They are the principal suppliers of short-term funds.
  8. Existence of Secondary Market: There should be an active secondary market for these instruments.
  9. Demand and Supply of Funds: There should be a large demand and supply of short-term funds.
  10. Wholesale Market: It is a wholesale market and the volume of funds or financial assets traded in the market is very large.
  11. Flexibility: Due to greater flexibility in the regulatory framework, there are constant endeavors for introducing new instruments.
  12. Presence of a Central Bank: The central bank keeps their cash reserves and provides them financial accommodation in difficulties by discounting their eligible securities.
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