Coordination in Managerment Class 12 Business Studies Case Studies | CBSE PYQs | How to Solve Cases

'Global Tech Ltd.' was a multinational company that manufactured

modern electronics devices and employed nearly 10,000 people from

across the world. The company had a well-defined organisational

structure with separate departments for finance, marketing and

production. Every department had its own objectives, policies and style of

working. As each department performed its activities in isolation from

others, conflicts arose within the organisation.

Further, due to complex technology involved in producing modern

electronic devices, 'Global Tech Ltd' relied heavily on specialists, The

specialists were confident of their professional knowledge and often did

not consider suggestions from others in matters pertaining to their area

of specialisation. This resulted in conflict among different specialists and

others in the organisation. As the company continued to grow, more

employees from different backgrounds and work habits joined the

organisation. The increasing size of workforce, along with departmental

differences and dependence on specialists, made it difficult to ensure that

everyone worked towards the same organisational goals. Therefore it

became necessary for the management to harmonise individual goals

with organisational goals and integrate the efforts of departments and

specialists to achieve common objectives.

(i) Identify and state the concept which would help 'Global Tech Ltd.' in

bringing together the efforts of employees and specialists to achieve

common goals of the organisation.

(ii) Quoting lines from the given case, state any three points of

importance of the concept identified in (i) above.

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 Retirement of Partner New Profit Sharing Ratio Gain Ratio | Partnership Accounts | Class 12 | PYQs

Vani, Vanya and Ajay were partners in a firm sharing profits and losses

in the ratio of 5:3:2. Vani retired and her share was taken over by Vanya

and Ajay in the ratio of 2:3. The new profit sharing ratio between Vanya

and Aiay after Vani's retirement was : click here for solution

Admission of Partner New Profit Sharing Ratio | Class 12 Partnership Accounts | CBSE PYQs Commerce

Devki and Neena were partners in a firm sharing profits and losses in the

ratio of 4:3. Amar was admitted as a new partner for 1/5th share in the

profits of the firm. Amar acquired 1/3rd of his share from Devki. How

much share did Amar acquire from Neena ?

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Guarantee Of Profits | Partnership Accounts | Class 12 | CBSE Board Exam Previous Years Questions 

Navya, Kartik and Samir were partners in a firm sharing profits and losses in the ratio of 4:3:1. Samir was given a guarantee that his share of profit in any year will not be less than ₹ 57,000. Any deficiency on this account was to be borne by Navya and Kartik equally. The firm earned a profit of ₹ 4,00,000 during the year ended 31st March, 2025. The amount of deficiency borne by Kartik was 

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 Interest on Loan CBSE Question 2026 Accounting for Partnership PYQs

Partnership Accounts: Interest on Loan & No Partnership Deed Rules

Shiv, Riya and Rohit were partners in a firm. On 1st October, 2024 Rohit

had given a loan of ₹ 2,00,000 to the firm, at an interest rate of 10% p.a.

as per the partnership agreement. The accountant of the firm is

emphasizing that interest on loan will be paid at 6% p.a. The amount of

interest on loan paid to Rohit for the year ended 31st March, 2025 will be :

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Interest on Drawings Question CBSE 2026

 Nandita and Prabha were partners in a firm manufacturing furniture.

They were sharing profits and losses in the ratio of 8:7. During the year

ended 31t March 2025, Nandita withdrew ₹ 80,000 in cash and ₹ 20,000

as furniture for her personal use. The partnership deed provided for

charging interest on partner's drawings @ 6% p.a. The amount of interest

on Nandita's drawings for the year ended 31st March 2025 was : click here for solution

CBSE Business Studies Revision Notes Chapter-4 Planning 

Planning: - Planning refers to deciding in advance what to do and how to do.

Features of Planning are as follows:

1. Planning focuses on achieving objectives: Planning has no meaning unless it contributes to the achievement of organisational goals.
2. Planning is pervasive: Planning is required at all levels of management as well as in all departments of the organisation.
3. Planning is continuous: Planning is not a single time activity. It is required regular and ongoing basis.
4. Planning is futuristic: Plans are prepared for the future and not for the past.
5. Planning is a mental exercise: Planning involves thinking rather than doing. 
6. Planning involves decision making: Planning helps in decision making because it involves selection of the best alternative of various alternative. 
7. Planning is a primary function of management: Planning is a primary function. It provides basis for all other functions of management.

Planning process are as follows:

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1. Setting objectives: The first and foremost step is setting objectives. Objectives or goals specify what the organisation wants to achieve.
2. Developing premises: Planning is concerned with the future which is uncertain. Manager is required to make certain assumptions about the future. These assumptions are called premises.
3. Identifying alternatives courses of action: There may be many ways to achieve objectives and all the alternatives courses of action should be identified. 
4. Evaluating alternative courses: After making the list of various alternatives, the manager starts evaluating the pros and cons of each alternative.
5. Selecting an alternative: The next step is to select the best alternative. The ideal plan would be the most feasible with less negative consequences.
6. Implementing the plan: The step is concerned with putting the plan into action. i.e. doing what is required.   
7. Follow up action: To see whether plans are being performed according to schedule. 

Importance of planning are followed as:

1. Planning provides directions: Planning provides the directions to the efforts of employees. Planning makes clear what employees have to do, how to do etc.
2. Planning reduces the risks of uncertainty: Planning helps the manager to face the uncertainty because planners try to foresee the future by making some assumptions. The plans are made to over come uncertainties. 
3. Planning reduces over lapping and wasteful activities: Planning evaluates useless and superfluous activities and helps in avoiding confusion and misunderstanding.
4. Planning promote innovative ideas: Planning requires high thinking and it is an intellectual process. so, it makes the manager innovative and creative. 
5. Planning facilitates decision making: Planning helps to make a choice from amongst various alternative courses of action.
6. Planning establishes standards for controlling: Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with some standard. 

Limitations of planning are as follows:

1. Planning leads to rigidity: Once plans are made; the manager may not be in a position to change them.
2. Planning may not work in a dynamic environment: Business environment is very dynamic as there are continuous changes. It becomes very difficult to forecast these future changes.
3. Planning reduces creativity: Planning is usually done by top level management. As such, middle or lower level managers are not allowed to deviate from the plans. Therefore, their creativity is hampered. 
4. Planning involves huge costs: Planning process involves lot of cost because it is in an intellectual process and companies need to hire the professional experts to carry on this process.
5. Planning is a time-consuming process: Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation.
6. Planning does not guarantee success: There is no guarantee of success of a well-drawn plan. Proper implementation of plan is also necessary.

Types of plan

Single Use Plan: It is developed for a one-time event or project. It is used for non-recurring situations.

   Single-use plans includes:

2. Programme: Programmes are detailed statements about a project which outlines the objectives, policies, procedures and rules.
3. Budget: A Budget is a statement of expected results expressed in numerical terms.

2. Standing plan:  It is used for activities that occur regularly over a period of time. It is recurring in nature.

Standing plans includes:

1. Procedure: Procedures are required steps established in advance to handle future conditions.
2. Policy: Policy are general statements that guide thinking or channelize energies towards a particular direction.
3. Methods: Methods provide the prescribed ways or manner in which a task has to be performed considering the objectives.
4. Rule: Rules are specific statements that inform what is to be done. They do not allow for any flexibility. 

These plans are not classified as single-use or standing plans

1. Objectives: are the end towards which the activities are directed. They are the end result of every activity. e.g. increase in sale by 10%.

ii. Strategy: A strategy is a comprehensive plan to achieve the organisational objectives.

Business Environment Class 12

 

Business Environment

Business Environment

Meaning of Business Environment

The term ‘business environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance.

Features of Business Environment

Video on Trick to remember Features of Business Environment: 

 

1. Sum total of all forces: Business environment is a sum total of all the forces external to business firms.
2. Specific and general forces: Business environment consists of both specific forces such as investors, customers, competitors and suppliers which affect individual firm directly and general forces such as social, political, legal and technological conditions which have impact on all business enterprises and thus may affect an individual firm only indirectly.
3. Interrelated: All the elements of business environment are closely interrelated to each other.
4. Dynamic: Business environment is dynamic because it keeps on changing. For e.g. customers' tastes, government policies, competitors' moves and technology keep on changing. 
5. Uncertain: Business environment is uncertain because it is difficult to predict changes taking place in it. 
6. Complex: It is complex in nature as it is relatively easier to understand in parts but difficult to comprehend in its totality because it consists of numerous interrelated and dynamic forces. 
7. Relative: Business environment is a relative concept because it differs from region to region and country to country. For e.g. in India there will be more demand for dosa and in US there will be more demand for pizza.

Importance of Understanding Business Environment

Video on Trick to remember Importance of Business Environment: 

1. It enables the firm to identify opportunities and getting the first mover advantage instead of losing them to its competitors. For e.g. Maruti Udyog in small car market, Volvo in luxury buses etc. 
2. It helps the firm to identify threats and early warning signals which are likely to hinder a firm’s performance and take timely actions. For e.g. if an Indian firm finds that a foreign multinational is entering India, it should act as a warning signal and the Indian firm should prepare itself. 
3. It helps in tapping useful resources: Understanding of business environment helps in obtaining and assembling resources as per the demand in the market. For e.g. with demand for flat screen coloured televisions, producers are collecting resources needed to produce flat screen coloured televisions and not the resources needed for black and white televisions.
4. It helps in coping with rapid changes: Business environment is dynamic and it keeps on changing. Understanding of business environment helps in adapting to the changes taking place.
5. It helps in assisting in planning and policy formulation: Business environment is a source of both opportunities and threats. Therefore, proper understanding of business environment helps in making plans and deciding future courses of action.
6. It helps in improving performance of an enterprise: Continuous monitoring of the environment and adopting suitable business practices helps in improving the performance of an organisation.

Dimensions of Business Environment

Following are the main dimensions/components of Business Environment:

1.  Economic Environment: It includes interest rates, inflation rates, changes in disposable income of people, stock market indices, value of rupee etc.
2. Social Environment: It includes the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.
3. Technological Environment: It includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating business.
4. Political Environment: It includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business.
5. Legal Environment: It includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and government agencies.

DEMONETISATION: 

On November 8, 2016, the Government of India made an announcement to demonetize two largest denomination notes Rs 500 and Rs 1000 with immediate effect. 

Aim of demonetisation was to curb corruption, use of money for illegal activities and accumulation of black money. 

Features of Demonetisation:

1. It is a measure of tax administration. Those who were holding black money had to declare their wealth and pay penalties. 
2. It is a means of indicating that government will no longer tolerate tax evasion. 
3. It has led to increase in digital transactions. 
4. It has tendency to increase savings because people will deposit their cash in bank rather than keeping at home

NEW INDUSTRIAL POLICY OF 1991

Three Major Components of New Industrial Policy of 1991

1. Liberalisation - removing unnecessary controls and restrictions on businesses and industries. 
2. Privatisation - increasing the role of private sector and reducing the role of public sector 
3. Globalisation - integrating economies of different nations with the world economy

Impact of Government Policy Changes on Business and Industry

1. Increasing competition: Due to liberalisation and entry of foreign firms, competition for Indian firms has increased.
2. More demanding customers: Customers are becoming more demanding as they are more aware and have a wider choice.
3. Rapidly changing technological environment: To face the challenges of rising competition and satisfying demanding customers, firms need new and better technology.
4. Necessity for change: The firms can’t stick to old practices and policies. They need to continuously modify their operations to survive in the market.
5. Need for developing human resource: There is a need to develop human resources because the new market conditions require people with higher competence and greater commitment. 
6. Market orientation: Firms need to shift from production orientation (sell whatever has been produced) to market orientation (produce according to customers’ needs).
7. Loss of budgetary support: Government’s budgetary support to the public sector has declined over the years. Now in order to survive, public sector enterprises need to be more efficient and independent.

Summary Video

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Quiz

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Case Studies

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Mind Map