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.

"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.

Planning, Coordinating and Controlling

Planning, Staffing, Training and Controlling

Planning, Organising, Staffing, Directing and Controlling

Planning, Organising, Coordinating and Controlling

✅ Correct Option: 3

Option 1 -> Planning, Coordinating and Controlling - This lists only three functions and omits key management functions like Organising, Staffing, and Directing, so it doesn't represent all management functions.

Option 2 -> Planning, Staffing, Training and Controlling - Training is not a primary function of management; it's a component of Directing or Staffing. This option also misses Organising and Directing.

Option 3 -> Planning, Organising, Staffing, Directing and Controlling - This includes all five primary functions of management as per classical management theory, covering the complete scope of management activities.

Option 4 -> Planning, Organising, Coordinating and Controlling - While Coordinating is important, it's typically integrated within other functions rather than being a standalone primary function. This option omits Staffing and Directing.

Hence, Option 3: Planning, Organising, Staffing, Directing and Controlling -> Since the question states Shilpa performs "all the functions of business management herself," we need the complete list of primary management functions. The five fundamental functions of management are: Planning (setting objectives), Organising (arranging resources), Staffing (recruiting and managing people), Directing (leading and motivating), and Controlling (monitoring performance). Option 3 comprehensively covers all these functions. -> 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 43

"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:

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?

"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.

Solution

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