Business Studies

Nature & Significance

Easy

Shilpa Rai is a 37-year old entrepreneur who grew up in a rural district of South Kannada. She was very good at art and craft, particularly wax molds. She loved to make candles. Often she makes toys and small pieces of art with wax and uses them as a gift for her friends and relatives. She is always involved in helping poor women of the area by providing them with jobs after imparting necessary skills. She believes that she is getting her work done as well as helping the needy section of society. Since it is a small business, she performs all the functions of business management herself. But she knows that the workers are not from a sound background, and they need motivation to perform efficiently and effectively. Slowly, the business is growing noticeably as the number of orders is increasing. As the orders are increasing, the production cost is declining. Based on the knowledge and experience that Shilpa acquired in her business, she smartly handles all the critical situations.

"Based on the knowledge and experience that Shilpa acquired in her business, she smartly handles all the critical situations". This statement suggests that management is based on:

Flexibility

Practice and Creativity

Systematised body of knowledge

Relativity

✅ Correct Option: 2

Option 1 -> Flexibility refers to the ability to adapt management principles to changing circumstances, but the statement emphasizes knowledge and experience rather than adaptability.

Option 2 -> Practice and Creativity highlights that management is an art acquired through experience and applied creatively. Shilpa's "knowledge and experience" represents practice, while "smartly handles" shows creative application.

Option 3 -> Systematised body of knowledge refers to management as a science with established principles and theories, but doesn't explain the creative application aspect mentioned in the statement.

Option 4 -> Relativity means management principles are applied differently in different situations, but the statement focuses on how experience enables smart handling rather than situational variance.

Hence, Option 2: Practice and Creativity -> The statement demonstrates that management is an art that combines learned knowledge with practical experience. Shilpa's acquired knowledge and experience (practice) enable her to smartly handle critical situations (creativity). This shows management requires both the systematic application of learned concepts and the creative skill developed through practice -> correct

Question 41

"She believes that she is getting her work done as well as helping the needy section of society." Identify the concept reflected in the above statement.

Question 42

"She is always involved in helping poor women of the area by providing them with jobs after imparting necessary skills". Which objective of management is reflected in this statement?

Question 44

"Since it is a small business, she performs all the functions of business management herself". Identify the functions of management performed by Shilpa in the above case.

Question 45

"Slowly the business is growing as the number of orders are increasing, and the production cost is declining." Which of the following concept is causing the decrease in production cost here?

"Based on the knowledge and experience that Shilpa acquired in her business, she smartly handles all the critical situations". This statement suggests that management is based on:

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)