JUSTIFY

(1) Principles of management are flexible in nature

Ans. Justification:
(a) The principles of management are not rigid, they are flexible in nature.
(b) The business situations keep on changing. Therefore, principles can be changed or modified according to the
business situations, but their application differs from situation to situation.
(c) Hence, they can be used in the organisation according to its needs.
(d) Thus, it is rightly justified that, principles of management are flexible in nature.

(2) Management principles are helpful in optimum utilization of resources.

Ans. Justification:
(a) In every organization, two types of resources are used, i.e. physical resources (material, machines, money, etc.) and
human resources (manpower). The basic function of management is to keep proper balance between them.
(b) For these, principles of management guide the managers about handling the human resource, reducing the wastage,
making optimum utilization of resources, etc.
(c) This will help lead to increase efficiency and productivity of the organization and employees.
(d) Thus, it is rightly justified that, principles of management are helpful in optimum. utilization of resources.

(3) Principle of equity is important.

Ans. Justification:
(a) According to principle of equity, every employee must be treated equally.
(b) There should not be any discrimination between the employees while dividing the work, delegating the authorities,
deciding the monetary terms, etc.
(c) This principle is essential to ensure good and healthy relation and to avoid conflicts in the organization.
(d) Thus, it is rightly justified that, principle of equity is important for smooth functioning of the organization.

(4) Taylor emphasized on standardization tools and equipments.

Ans. Justification:
(a) On the basis of result of experiments conducted at work place, Taylor advocated standardization of tools and
equipments.
(b) Efforts should be made to provide standardised working environment and methods of production to the workers.
(c) Standardisation will help to reduce spoilage and wastage of materials, improve quality of work, reduce cost of
production and reduce fatigue among the employees.
(d) Thus, it is rightly justified that, Taylor emphasized on standardization of tools and equipments so that goals can be
achieved effectively and efficiently.

(5) Differential piece wage rate plan is necessary.

Ans. Justification:
(a) Taylor has advised the adoption of differential wage systems. According to this system, wages are paid on the basis of
work done and not on the basis of time spent in doing the work.
(b) In this system two different wage rates are used one is the high wage rate and the other is the low wage rate.
(c) Higher rates are offered to those employees who perform the work more than the standard quality and lower rates
are offered to those employees who perform the work below the standard quality.
(d) Thus, it is rightly justified that, differential piece wage rate plan is necessary so as to motivate the employees to
attain higher standard performance and earn high wages.

(6) Planning is the first/basic function of management.

Ans. Justification:
(a) Planning plays a vital role in business management. It is a basic and fundamental functions of management.
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(b) It includes deciding the things to be done in advance. It is a starting point of management and all the other functions
of management depend upon planning.
(c) Without planning, it would be difficult to organise, direct, coordinate and control. It precedes the execution of all
other functions.
(d) Thus, it is rightly justified that, planning is the first function of management.

(7) Controlling is the last function of management.

Ans. Justification:
(a) Controlling is an important function of management. Management function starts with planning and ends at
controlling.
(b) Controlling is the process of ensuring that activities are producing the desired results. The function of controlling
helps to achieve the desired goals by planning.
(c) Controlling function comes to an end, if all the desired objectives are achieved. But if there are any deviations then
control measures are exercised and this will lead to plan.
(d) Thus, it is rightly justified that, controlling is the last function of management.

(8) Organising facilitates administration as well as operation of the organisation.

Ans. Justification:
(a) Organising is a process of identifying and integrating all the resources as men, money, material, machine and
method, so that objectives of an organisation can be easily achieved.
(b) The framework of organising defines role of each and every employee. It defines the right job for right person.
(e) This make the administration easy and smooth which lead to efficient and effective administration.
(d) Thus, it is rightly justified that, organising facilitates administration as well as operation of the organisation.

(9) Right person at right job with right pay is the basic principle of staffing.
Ans. Justification:
(a) Staffing is a part of process of management which is concerned with obtaining, utilising and maintaining a
satisfactory and satisfied work force.
(b) In simple words, staffing is "putting right man for right jobs". Thus, right man for right job is the basic principle of
staffing.
(c) It begins with workforce planning and includes other functions such as recruitment, selection, training, development,
promotion, compensation and performance appraisal of workforce.
(d) Thus, it is rightly justified that, right person at right job with right pay is the basic principle of staffing.

(10) Coordination between different functions and all levels of management is the essence of organisational
success.
Ans. Justification:
(a) Coordination means establishing link between various departments of the organisation and also bringing out
harmony and integrating the group efforts to accomplish common goals of an organisation.
(b) In an organisation, number of persons are working together to achieve a common goal. Their work is closely linked
with each other. It becomes necessary to bring together the group efforts and harmonise them carefully.
(c) Hence, coordination is the hidden force which binds all other functions of management, therefore it is known as
'Essence of Management.'
(d) Thus, it is rightly justified that, ordination between different functions and all levels of management is the essence of
organisational success.

(11) Air transport is fastest mode of transport.

Ans. Justification:
(a) Air transport is classified as Domestic and International air transport.
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(b) Air transport is not obstructed with traffic jams and conjestion as it uses air ways.
(c) Due to its highest speed, as compared to other modes, it is considered as fastest mode of transport.
(d) It is a suitable mean where time is an important factor.
Thus, it is rightly justified that, air transport is the fastest mode of transport.

(12) Communication is essential for growth of business.

Ans. Justification:
(a) Communication is a process of sharing. exchanging, or imparting the messages between or among the people to
create common understanding.
(b) Entrepreneurs are the self-starter, they don't require to wait for anybody to start business enterprise.
(c) This is because, they know that if something needs to be done, they should start it by themselves.
(d) They are individualists and self-starters who prefer to lead rather than follow.
Thus, it is rightly justified that, entrepreneurship is the best source for self. employment.

(13) Successful calculated risk. businessman takes

Ans. Justification:
(a) Every business involves risk and uncertainties. A risk-taking ability is essential for an entrepreneur.
(b) Entrepreneurs have a differentiated approach towards risks. They are always ready to invest their time and money.
(c) They are also ready to face challenges and always seeks new and more opportunities.
(d) Thus, it is rightly justified that, successful entrepreneur takes calculated risk and not extreme risk.

(14) Entrepreneur must be a good communicator.

Ans. Justification:
(a) An entrepreneur needs to communicate with different people for the sake of the business. For instance, customers,
suppliers, creditors, employees, etc.
(b) Effective communication skills are vital in the functioning of the enterprise. It is important that information is
correctly.
(c) Therefore, an entrepreneur needs to communicate effectively with all these parties for the smooth functioning of the
organisation.
(d) Thus, it is rightly justified that, entrepreneur must be a good communicator.

(15) An entrepreneur must be an innovator.

Ans. Justification:
(a) An entrepreneur is basically an innovator. Entrepreneurs constantly creates new methods and means of production
to make enterprise more profitable.
(b) Through innovations, they can solve problem that arise in the business. They can introduce new products or brings
changes in the existing products.
(e) Hence, customers are satisfied with new products or new features in the existing products.
(d) Thus, it is rightly justified that, an entrepreneur must be an innovator.

(16) With creativity, farmers can expand their Agro-tourism business.

Ans. Justification:
(a) Agro Tourism' or 'Agri tourism' is the latest concept in the Indian tourism industry, which normally occurs on farms.
(b) It gives tourists the opportunity to experience the real enchanting and authentic contact with the rural life, taste the
local genuine food and get familiar with the various farming tasks during the visit.
(c) Farmers can add value to the guests experiences by offering them refreshments. They can select products that
compliment what they produce on farm, such as milk or butter samples, fresh food, fresh fruit juice, etc.
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(d) With time and creativity, farmers can expand their recreation enterprise, through fun, entertaining activities such as
contests. adult and children's classes, or games. Thus, it is rightly justified that, with creativity, farmers can expand their
Agro- tourism business.

(17) Entrepreneurship is the best source for self-employment.

Ans. Justification:
(a) Self-employment is the first step to become an entrepreneur. Self-employment leads to entrepreneurship.
(b) Communication plays a vital role in today's life. It is an important aid to trade for the organisation.
(c) This is because, various parties such as customers, suppliers, creditors, employees. etc. are involved in the
communication.
(d) Therefore, it is important that information is correctly understood by receivers and must act accordingly.
Thus, it is rightly justified that. communication is essential for growth and smooth functioning of the organisation.

(18) Principle of subrogation is applicable to all contracts of indemnity.

Ans. Justification:
(a) Subrogation means 'transfer of rights and remedies from insured to insurer. According to the principle of
subrogation, when the insured is compensated for the losses due to damage to his insured property, then the ownership
right of such property shifts to the insurer.
(b) This principle is applicable to all insurances except life and personal accident contracts. But this principle is applicable
only when the damaged property has any value after the event causing the damage.
(c) The insurer can benefit out of subrogation rights only to the extent of the amount he has paid to the insured as
compensation.
(d) Thus, it is rightly justified that, Principle of subrogation is applicable to all contracts of indemnity.

(19) Warehousing is important.

Ans. Justification:
(a) Warehouse is a place where goods are kept on a large scale in systematic manner. The process of storing goods in
warehouse in systematic manner is called 'Warehousing'
(b) Warehousing is important because, it provides protection to the stocks, ensures their safety and prevents wastage,
(c) It also minimises losses from breakage, deterioration in quality, spoilage, etc.
(d) Warehouses usually adopt latest technologies to avoid losses, as far as possible.
Thus, it is rightly justified that, warehousing is important.

(20) Cash can be withdrawn from ATM at any time.

Ans. Justification:
(a) ATMs or Automated Teller Machines are an electronic devices that enables the customers to conduct financial
transactions on their own without the help of bank staff.
(b) The customer is not required to visit the bank physically. It enables the customers to do their banking transactions at
any hour of the seven days of week.
(c) As ATMs operate 24 hours, it enables the customers to withdraw the cash up to certain limit with the help of an ATM
card.
(d) Also, ATM can accept bank deposits, transfer fund from one bank account to another, etc, and hence provide easy
access of bank account to the customers.
Thus, it is rightly justified that, cash can be withdraw from ATM at any time.

(21) It is easy to set up compared to traditional business.

Ans. Justification:
(a) E-business refers to buying and selling over internet. While, traditional business (bricks and mortar) refers to local
business which offers its services or products to its local customers.
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(b) The setup of E-business is easy as compared to traditional business. This is because there is no requirement for
physical space for store, only an effective website for transaction and easy displaying of goods and services is required.
(c) However, traditional business requires physical space and employees to run the business. This is absent in E-business.
(d) Thus, it is rightly justified that, it is easy to set up E-business as compared to traditional business, as it only requires
technical professionals and it also eliminate the cost of business.

(22) E-business allows user to work across the globe in any field.
Ans. Justification:
(a) E-business helps in facilitating wide reach of goods and services to customers. It helps the marketers to attract
customers over the globe.
(b) It helps in communicating and selling the products to large size of customers in any part of the world.
(c) It also connects and integrates IT system that companies can manage their business effectively and efficiently.
(d) Thus, it is rightly justified that, E-business allows user to work across the globe in any field.

(23) Online transaction is done with the help of the internet.

Ans. Justification:
(a) Online transactions occur when a process of buying and selling takes place through the internet.
(b) When a consumer purchases a product or a service online, they are required to pay for it through online transaction.
(c) Online transaction involves a payment method in which the transfer of fund or money happens online over electronic
fund transfer. It is secured and password protected.
(d) Thus, it is rightly justified that, online transaction is done with the help of the internet. It cannot take place without a
proper internet connection.

(24) Role of media has major influence on business organisation.

Ans. Justification:
(a) Media plays important role in public life. Media can reach to common people and has power to speak against wrong
policies of business.
(b) Media helps in connecting with people. Media can also influence masses in society. They spread awareness among
the people.
(c) Therefore, it is important for a businessman to understand the social values.
(d) Thus, it is rightly justified that, role of media has major influence on business

(25) Business should allow workers participation in management.

Ans. Justification:
(a) Allowing workers to participate in management helps in improving the relationship between management and
labour.
(b) The workers must be encouraged to take part in management by forming workers committee, suggestion scheme,
profit sharing, co-partnership, etc.
(c) It will create sense of belonging and raise morale of workers.
(d) Thus, it is rightly justified that, business should allow workers participation in management.

(26) Expectations of society towards business are changing.

Ans. Justification:
(a) Nowadays the needs and expectation of society is changing rapidly. Awareness about rights is also increasing among
people.
(b) Social Responsibility helps the business in such a way that, it meets the needs and requirements of the societies. In
addition, business should not do anything which is harmful to the society.
(c) Earlier business was viewed only as a provider of goods and services. But today, society expects business to be
responsible and contribute towards the welfare of the society.
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(d) Thus, it is rightly justified that, expectations of society towards business are changing.

(27) Business organisations should avoid environmental pollution and ecological imbalance.
Ans. Justification:
(a) Businesses have always been dependent and had an impact on environment. Business uses raw materials and other
natural resources.
(b) (b) Businesses also create an imbalance in nature through release of wastage and by - products. Thus, various
business activities results in air, water, noise pollution and degradation of environment.
(c) (c) Rapid industrialisation also results in degradation of the environment and increases the risk of the environment.
(d) (d) So, businesses should always be committed to protecting and environment. Businesses are also expected
preserving the to perform activities that aim for benefit of environment and human beings.
(e) Thus, business organisations should avoid environmental pollution and ecological imbalance.

(28) All sorts of unfair practices related to stock exchange should be avoided.
Ans. Justification:
(a) The organisation should not involve themselves in unfair practices in stock
exchange.
(b) All sorts of unfair practices related to stock exchange like insider trading, providing wrong and secret information ete,
should be avoided
the
(c) Also, the organisation should not manipulate the price of the shares. This is because, confidence of owners will be
affected, if organisation uses unfair practices.
(d) Thus, it is rightly justified that, all sorts of unfair practices related to stock exchange should be avoided.

(29) Business ethics contains moral and social values for doing business.
Ans. Justification:
(a) Business ethics is based on moral and social values. It contains moral and social principles (rules) for doing business.
(b) Moral values are based on the right and wrong doing of the persons whereas social values may also include ideas
about thingy being socially acceptable.
(c) This includes self-control, consumer protection and welfare, service to society, fair treatment to social groups, not to
exploit others, etc.
(d) Thus, it is rightly justified that, business ethics contains moral and social values for doing business.

(30) Business ethics can be considered as a tool for social development.

Ans. Justification
(a) Business ethics is a code of conduct and thus business must adhere to it during daily business dealing.
(b) it deals with morality in business environment and contains moral and social principles for doing business.
(c) It involves fair treatment of the different sections of the society like employees, consumers, government,
shareholders, etc.
(d) Business ethics also result in welfare of the society and enhance the values of the society.
Thus, it is rightly justified that, business ethics can be considered as a tool for sociai development.

(31) The Consumer Protection Act was passed in the interest of consumers.
Ans. Justification:
(a) Consumer Protection Act, 2019 is a law to protect the interests of the consumers. This act was inevitable to resolve a
large number of pending consumer complaints in consumer courts across the country.
(b) This Act, made provision for the establishment of consumer dispute redressal agencies, known as District
Commission at the district level, State Commissions at the state level and National Commission as an apex body at the
central level.
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(c) The Act covers all complaints with relevant merchandise or services, and unfair trade practices. It has ways and
means to solve the consumer grievances speedily.
(d) Thus, it is rightly justified that, the Consumer Protection Act was passed in the interest of consumers.

(32) Consumers have many responsibilities.

Ans. Justification:
A consumer is one who purchases goods for direct consumption. In ay's competitive today's world, consumer is
regarded as a 'King of Market'. Consumer Responsibilities are as follows:
1. Consumers should use their rights:
Consumers have many rights with regard to goods and services. They must be aware of their rights while buying.
2 . Cautious consumer:
Consumers should understand their responsibilities while buying goods and services. While buying, the consumer should
enquire about the quality, quantity,
price, utility of goods and services, etc.
3. Filing of complaint:
It is the responsibility of a consumer to approach the officer concerned if consumers have some complaints about the
goods and services.
4. Consumers must be quality conscious:
Consumers should never compromise on the quality of goods. They should not bu inferior stuff out of greed for less
prices. If consumers behave like this, there canno be any protection for them from any sector.

(33) Aim of consumer organization is to protect the rights of the consumers.

Ans. Justification:
(a) NGO's work for various social causes, of which, Consumer Protection is one such cause. The NGO's working for
consumer protection, can also be addressed as Consumer Organisation.
(b) These organisations, are voluntary group of people whose main aim is to protect the rights of the consumers.
(c) They have their own rules and regulations and collect funds in the form of donations. They create awareness among
the people and advice consumers on legal matters.
(d) Thus, it is rightly justified that, the main aim of consumer organization is to protect the rights of the consumers.

(34) Marketing is significant to the consumers.

Ans. Justification:
Marketing is significant to the consumers, due to the following reasons:
(a) Marketing helps to create awareness about the product among the consumers a helps them in decision making
(b) It creates a moral pressure on the business to provide quality goods to the consumers.
(c) It ensures that businesses provide variety of goods to cater to the needs of different market segments.
(d) Marketing takes every effort to satisfy the customer.
(e) It helps to maintain a balance between demand and supply
Hence, marketing is significant to the consumers.

(35) Promotion plays an important role in marketing.

Ans. Justification:
(a) Promotion is a tool of marketing communication which helps to publicise the product to the customer.
(b) It aims at grabbing the attention of customers and inducing them to buy it.
(c) There are four methods of promotion such as advertising, personal selling, public relations, direct marketing and
sales promotion. These four methods of promotion are called as promotion mix.
(d) Promotion mix implies the promotional tools used by the marketers to reach the target audience.
Thus, it is rightly justified that, promotion plays an important role in marketing.
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(36) Market can be classified on the basis of competition.
Ans. Justification:
(a) Market refers to a place where goods and services are exchanged between buyers and sellers at a particular price.
(b) On the basis of competition, market can be classified as Perfect Market and Imperfect Market.
(c) In perfect market, the number of buyers and sellers are large, homogeneous products are bought and sold.
(d) Imperfect market is the market where there is no perfect competition between. buyers and sellers.
Thus, it is rightly justified that, market can be classified on the basis of competition.

(37) Marketing helps consumer awareness.

Ans. Justification:
(a) Marketing refers to activities a company undertakes to promote the buying or selling of a product or service.
(b) Marketing includes advertising, selling and delivering.
(c) Because of marketing, it is possible to make awareness among the consumer, regarding new product or services
available in the market.
(d) Therefore, marketing provides satisfaction to the society by supplying relevant information, goods, and services to
the people of society according to their demand and taste.
Thus, it is rightly justified that, marketing helps in increasing consumer awareness

(38) There is a need of branding to get recognition among the consumers.

Ans. Justification:
(a) For any company, branding plays an important part.
(b) Branding denotes the brand and effective branding creates a goodwill in the minds of consumers.
(c) Branding is a process of giving special identity to a product. This helps the target audience to identify the
manufacturer.
(d) It also helps in creating product differentiation and allow customers to choose the product as per their desire.
Thus, it is rightly justified that, there is a need of branding to get recognition among the consumers