KSLU Solved Question Papers
Principles and Practice of Management
Previous Year Question Paper with Solution
B.Com. LL.B. (Five Years) · Sem 2
2019 Dec (100 marks) Examination
munotes.in
Mumbai
B.Com. LL.B. (Five Years) Sem 2 Principles and Practice of Management 2019 Dec (100 marks) Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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Contents
The questions below are the paper as Karnataka State Law University set it at the 2019 Dec (100 marks) examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2019 Dec (100 marks) examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 100 · 13 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Explain functional areas of management.[16]
Answer
For full marks, cover: what is meant by the functional areas of management and how they differ from the functions of management; each functional area explained with its meaning, objectives, main activities and an example (production or operations, marketing, financial, human resource, materials and purchase, research and development, office and information management, logistics); how the areas depend on one another and the need to co-ordinate them; a table; and a conclusion.
Meaning
An enterprise performs many different kinds of work: it makes goods, sells them, raises money, employs people, buys materials and develops new products. Each major field of work is called a functional area, and the management of that field is a branch of management. Most businesses organise their departments along these lines.
The functional areas must not be confused with the functions of management. The functions, namely planning, organising, staffing, directing and controlling, are the activities every manager performs. The functional areas are the fields in which those activities are performed. The marketing manager, for instance, plans sales, organises the sales force, recruits salesmen, directs them and controls results. The areas tell us where management works; the functions tell us what managers do there.
1. Production (operations) management
Meaning. Production management deals with turning inputs, such as materials, labour and machines, into goods and services. The aim is the right quality and quantity, at the right time and at the lowest cost. In service firms it is called operations management.
Objectives. Efficient use of resources, low cost, consistent quality, and delivery on time.
Main activities
- Product design for easy and economical manufacture.
- Plant location and layout, deciding where to produce and how to arrange machines.
- Production planning and control: what to produce, how much, when and in what sequence.
- Quality control: checking materials and output against standards.
- Maintenance of plant and machinery.
- Inventory control of materials and work in progress.
- Work study: method study and time study to improve efficiency.
Example: a scooter maker plans daily output for each model, schedules the assembly line, inspects finished scooters and keeps machines in repair.
2. Marketing management
Meaning. Marketing management deals with identifying what customers need and satisfying those needs at a profit. It starts before production, by finding out what will sell, and continues after the sale, through service.
Objectives. Customer satisfaction, growth in sales and market share, and a strong brand.
Main activities
- Market research into customers, competitors and trends.
- Product planning: deciding what products to offer, their features, packaging and branding.
- Pricing: fixing prices that customers will accept and that cover costs with a profit.
- Distribution: choosing channels such as wholesalers, retailers and online platforms.
- Promotion: advertising, personal selling, sales promotion and public relations.
- After-sales service and handling complaints.
These are often summed up as the four Ps: product, price, place and promotion.
Example: a biscuit company studies tastes and launches a low-sugar variety. It prices it slightly above its regular brand, supplies it to supermarkets and advertises it as a healthy snack.
3. Financial management
Meaning. Financial management deals with planning, raising, using and controlling the funds of the enterprise.
Objectives. Adequate funds at the right time and at reasonable cost, and profitable use of those funds. Enough liquidity to pay bills, and growth in the value of the business.
Main activities
- Estimating fund requirements for fixed assets and working capital.
- Deciding the capital structure: the mix of owners' funds and borrowed funds.
- Raising funds from shares, loans, banks and retained profits.
- Investment decisions: choosing projects and assets that give the best return.
- Working capital management: cash, receivables and stock.
- Dividend decisions: how much profit to distribute and how much to retain.
- Financial control through budgets, accounts and ratio analysis.
Example: a company planning a new plant estimates the cost and raises part through a bank loan and part from retained profits. It checks the expected return before approving the plant.
4. Human resource (personnel) management
Meaning. Human resource management deals with obtaining, developing, using and keeping a capable and willing workforce.
Objectives. The right number of the right people, trained and motivated, with good relations between management and employees.
Main activities
- Manpower planning.
- Recruitment and selection.
- Training and development.
- Performance appraisal.
- Wage and salary administration, incentives and benefits.
- Welfare, health and safety.
- Industrial relations: dealing with trade unions, grievances and discipline.
- Compliance with labour laws.
Example: a hospital plans its nursing staff, recruits and trains nurses, appraises them yearly and runs a welfare scheme.
5. Materials and purchase management
Meaning. Materials management deals with buying, storing and controlling the materials an enterprise needs.
Objectives. Materials of the right quality and quantity, at the right price, from the right source and at the right time. All this with the lowest investment in stock.
Main activities
- Purchasing: selecting suppliers, negotiating prices and placing orders.
- Receiving and inspecting materials.
- Storekeeping: safe storage and issue of materials.
- Inventory control: fixing reorder levels and economic order quantities to avoid both shortages and excess stock.
Example: a furniture maker buys timber from approved suppliers, inspects each lot, stores it properly and reorders when stock falls to a set level.
6. Research and development
Meaning. Research and development (R and D) deals with creating new products and processes and improving existing ones.
Objectives. Innovation, lower costs, better quality and a lead over competitors.
Main activities: basic and applied research, product development, testing and process improvement.
Example: a medicine maker researches a new formulation, tests it and develops a cheaper process for an existing drug.
7. Office and information management
Meaning. Office management deals with the records, correspondence, documents and information on which all other departments depend. Today it includes information management, using computers and networks.
Main activities: record keeping, communication, office systems and procedures, data processing and management information reports.
Example: an insurance company keeps policy records on computer and gives managers daily reports on new policies and claims.
8. Logistics (transport and warehousing)
Meaning. Logistics deals with moving materials into the firm and finished goods out to customers, and with storing goods on the way.
Main activities: transport planning, warehousing, order processing and delivery.
Example: an online retailer runs warehouses in major cities and arranges delivery within two days.
How the areas depend on one another
The functional areas are not separate islands. Marketing tells production what and how much to make. Production needs materials from purchasing. Finance provides the funds for all of them. Human resource management supplies the people. R and D gives marketing new products to sell. Office and information management links them all. A failure in one area harms the others. Top management must therefore co-ordinate the areas through common plans, budgets, committees and regular communication.
Summary table
| Functional area | Main concern | Key activities |
|---|---|---|
| Production | Making goods efficiently | Planning, quality, maintenance, inventory |
| Marketing | Satisfying customers profitably | Research, product, price, place, promotion |
| Finance | Funds | Raising, investing, controlling funds |
| Human resource | People | Recruitment, training, pay, relations |
| Functional area | Main concern | Key activities |
|---|---|---|
| Materials | Inputs | Buying, storing, stock control |
| R and D | Innovation | New products and processes |
| Office and information | Records and data | Records, communication, reports |
| Logistics | Movement and storage | Transport, warehousing, delivery |
Newer functional areas
As businesses have grown more complex, some activities have become functional areas of their own.
- Information technology management runs the computers, networks, software and data on which every department now depends.
- Quality management sets quality standards for the whole firm, not only the factory, and checks that they are met.
- Customer service handles queries, complaints and support after the sale.
- Corporate communication manages the firm's relations with the media, investors and the public.
These newer areas also need planning, organising, staffing, directing and controlling.
Conclusion. The functional areas of management are the fields in which management works. They are production, marketing, finance, human resources, materials, research and development, office and information management, and logistics. In each, managers plan, organise, staff, direct and control. Each area has its own objectives and activities, but all depend on one another. An enterprise succeeds when every area is well managed and all are co-ordinated towards common goals.
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