ST BRITTO’S ACADEMY SENIOR SECONDARY SCHOOL

CLASS – XII BUSINESS STUDIES

ASSIGNMENT QUESTIONS - CHAPTER -1

Question 1:
Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits
has started declining from the last six months. Profit has an implication for the survival of the firm, so he
analysed the business environment to find out the reasons for this decline.

1. Identify the level of management at which Ashutosh Goenka was working.

2. State three other functions being performed by Ashutosh Goenka.

Question 2:
Rishitosh Mukerjee has recently joined AMV Ltd, a company manufacturing refrigerators. He found that his
department was under-staffed and other departments were not cooperating with his deparment for smooth
functioning of the organisation. Therefore, he ensured that his department has the required number of
employees and its cooperation with other deparments is improved.

1. Idenfity the level at which Rishitosh Mukerjee was working.

2. Also, state three more functions required to be performed by Rishitosh Mukerjee at
this level.

Question 3:
Sridhar’s father is working as a section in-charge in a government office. Identify the level of management at
which he is working? State any five functions that he has to perform at this level.

Question 4:
Mega Ltd. manufactured water-heaters. In the first year of its operations, the revenue earned by the company
was just sufficient to meet its costs. To increase the revenue, the company analysed the reasons behind the less
revenues. After analysis, the company decided:

1. to reduce the labour costs by shifting the manufacturing unit to a backward area where labour was
available at a very low rate.
2. to start manufacturing solar water-heaters and reduce the production of electric water- heaters slowly.

This will not only help in covering the risks but also help in meeting other objectives.

1. Identify and explain the objectives of management discussed above.

2. State any two values which the company wanted to communicate to society.

Question 5:
XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable
supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the
risks. As the demand of lanterns was increasing day- by-day, the company decided to increase production to
generate higher sales. For this/they decided to employ people from a nearby village as very few job
opportunities were available in that area. The company also decided to open schools and creches for the
children of its employees.

1. Identify and explain the objectives of management discussed above.

 2. State any two values which the company wanted to communicate to the society.

Question 6:
Your grandfather has retired as the Director of a manufacturing company. At what level of management was he
working? What functions do you think he was performing at that level? State any two,

Question 7:
Ritu is the manager of the northern division of a large corporate house. At what level does she work in the
organisation? What are her basic functions?
OR
Your grandfather has retired from an organisation in which he was responsible for implementing the plans
developed by the top management. At which level of management was he working? State one more function
performed at this level.
OR
Deepak’s father has retired as a purchase manager of a company. At what level of management was he
working? What function do you think he was performing at that level of management?
OR
Dheeraj is working as an Operations Manager in Tifco Ltd. Name the managerial level at which he is working.
State any four functions he will perform as the Operations Manager in this company.
OR
Rajat is working as a Regional Manager in Tifco Ltd. Name the level at which he is working. State any four
functions he will perform as the Regional Manager in this company.

Question 8:
Vaibhav Garments Ltd/s target is to produce 10,000 shirts per month at a cost of ?150 per shirt. The production
manager could achieve this target at the cost of ?160 per shirt. Do you think the production manager is
effective? Give reasons for your answer.

Question 9:
Mr. Nitin Singhania’s father has a good business of iron and steel. He wants to go to the USA for his MBA but
his father thinks that he should join the business. On the basis of emerging- trends, do you think that Mr.
Singhania should send his son to the USA? Give any three reasons in support of your answer.

Question 10:
Jayant is working as Head Relationship Manager in the wealth management division of a private sector bank.
He has created an internal environment which is conducive to an effective and efficient performance of his team
of ten relationship management executive” A typical day at work in Jay ant’s life consists of a series of
interrelated and continue functions. He decides the targets for his department which are in line with the
objectives of the organization as a whole. The future course of action for his team members is laid out well in
advance. The various resources required by the relationship managers like an iPad with GPS system, account
opening forms, brochures, details of account holders etc. are made readily available to them. The executives are
given sufficient authority to carry out the work assigned to them. Jayant works in close coordination with the
Human Resource Manager in order to ensure that he is able to create and maintain a satisfactory and satisfied
workforce in his department.Through constant guidance and motivation, Jayant inspires them to realise their full
potential. He offers them various types of incentives from time to time keeping in view their diverse individual
needs.Moreover, he keeps a close watch on their individual performances in order to ensure that they are in
accordance with the standards set and takes corrective actions whenever needed.
In context of the above case:
 1. Identify the concept being referred to in the following line, “He has created an internal environment
which is conducive to an effective and efficient performance of his team of ten relationship management
executives.”
2. Identify and describe the various functions of the concept as identified in part (a) of the question by
quoting lines from the paragraph.

Question 11:
Sooraj works as a salesman in a company selling pet accessories and food. He has been given a target of selling
1200 units of the food packets in a month by offering a maximum of 10% discount to his customers. In order to
meet his monthly sales target, on the last two days of the month, he offers 15% discount to his customers.
In the context of the above case:
Is Sooraj effective in his work? Explain by giving a suitable reason in support of your answer.

Question 12:
Sujata works as a designer in an export house. As per the terms of an order received by the export house, she
has to get 1000 units of denim jackets made in 15 days @ ? 2000 per jacket. She is able to complete her target
production in 20 days because in order to complete the order in 15 days she would have made the workers work
over time. As a result, the cost of production per jacket may have increased by ? 100.
In the context of the above case:
Is Sujata efficient in her work? Explain by giving a suitable reason in support of your answer.

Question 13:

Anju and Manju are good friends. Considering the fact that the activities involved in managing an enterprise are
common to all organizations, after completing their masters in business management, both of them take up a job
at managerial level in different organizations as per their individual areas of interest. Anju takes up a marketing
job in a retail company and strives to increase sales whereas Manju joins an NGO and works diligently to
realize its objective related to providing employment to specially abled persons. Both of them have to perform a
series of continuous, composite, but separate functions. On some days, Anju may spend more time in planning a
future display layout and on another day, she may spend time in sorting out an employee’s problem. Both Anju
and Manju make conscious efforts to build a feeling of team spirit and coordination among diverse individuals
with different needs who work under them. The effect of their management is noticeable in their respective
departments as the targets are met according to plans, employees are happy and satisfied, and there is
orderliness in its functioning rather than chaos.
In context of the above case:
Identify the various features of management highlighted in the above paragraph by quoting lines from it.

Question 14:
Real Alliance Ltd. is a well-known cement company in India. It is able to earn adequate revenues to cover costs.
Its capital base, number of employees and production turnover has increased manifolds over the years. The rate
of profitability of the business is also creditable. The employees of the company are happy and satisfied with
their remuneration, working conditions, promotion policy etc. As a part of its moral obligation, the company has
taken many initiatives for providing employment to specially abled persons and promoting literacy in the
villages adopted by it.
In the context of the above case:

1. Identify and explain the various types of objectives of management being fulfilled by Real Alliance Ltd
by quoting lines from the paragraph.
2. List any two values that Real Alliance Ltd. wants to communicate to the society.
Question 15:
Esha works as the cost and risk management head of a company in power sector. As a result of her excellent
managerial competence, the company is able to reduce costs and increase productivity. The company belongs to
infrastructure sector, wherein regular amendments are made in the government regulations and policies. She
holds regular meetings to ensure that people in her department are not only aware of the related changes but are
also able to adapt to these changes effectively. This helps the company to maintain its competitive edge. She
motivates and leads her team in such a manner that individual members are able to achieve personal goals while
contributing to the overall organisational objective. In the process of fulfilling her duties for the growth of the
organisation, she helps in providing competitive services, adopting new technology, creating more employment
opportunities etc. for the greater good of the people at large.
In context of the above case:
Identify the various reasons that have made management so important by quoting lines from the paragraph.

Question 16:
Ramarjuna joins an IT firm as a system analyst after completing his masters in Computer Science. As the nature
of his work demands he has to work in very close coordination with all the departmental heads in the firm, very
soon Ramarjuna realizes that each departmental head has own individual style of working. They differ greatly
in their day-to-day approach to work. They tend to deal with a given situation, an issue or a problem through a
combination of their own experience, creativity, imagination, initiative and innovation.
In the context of the above case:
Identify and explain the nature of management highlighted in the above case.

Question 17:
Dharam is a well-known businessman in the field of publishing. He owes the success of his business to his own
education in business management and his team of certified management consultants. Therefore, he decides to
send both his children Danush and Damini abroad to acquire a degree in business management in their
individual area of expertise. He feels that all over the world there is marked growth in management as a
discipline, but still it is not considered to be a full-fledged profession for certain reasons.
In the context of the above case:

1. Explain the reasons because of which Dharam considers management as a discipline.

2. Critically examine the various reasons because of which management is not considered to be a full-
fledged profession.

Question 18:
Kartik joins a garment factory as a plant supervisor in Lucknow. He observes that the output of some workers is
very low as compared to the standards set for their performance. On analyzing the reasons for the same, he finds
out that a lot of time of the workers is wasted in getting the requisite materials issued from the store. Whereas
on asking, the store keeper complains that there is no harmony in the working of the production department as a
whole. Everyday the workers approach him at the last minute to procure different kinds of threads, laces,
mirrors, buttons etc. If it is not available in the store then he has to place an order with the purchase officer. As a
result, a lot of time of the workers is wasted. So, in order to integrate the various production activities,
henceforth, Kartik ensures,that the store keeper is informed well three days in advance about the requisite
material. Consequently, the store keeper is able to keep the materials ready for the workers every morning in
accordance with their requirements.
In context of the above case:
 1. Identify and explain the quality of management that Kartik has introduced in the working of the
production department as a corrective measure to control the output of the workers.
2. State briefly any two points highlighting the importance of quality of management identified in part (a).

Question 19:
Geetika is working in a private sector bank. One of her key function relates to the formulation of the overall
organisational goals and strategies of the bank. Identify the level of management at which she is working? State
any three other functions that she has to perform at this level.

Question 20:
Arundhati has been promoted to the post of Marketing Division Head of a soft drink company. Identify the level
of management at which she will be working henceforth. State any four functions that she will have to perform
at this level.

ASSIGNMENT QUESTIONS - CHAPTER - 2

Question 1.
Explain ‘unity of command’ and ‘equity’ as principles of general management. (CBSE, Delhi 2017)

Question 2.
Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop
‘AromaCoffeeCan’ in a famous mall in New Delhi. The speciality of the coffee ship was the special aroma of
coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular.
Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a Manager
to find out the causes for the same.
Sandhya took feedback from the clients and found out that though they loved the special unique aroma of coffee
but were not happy with the long waiting time being taken to process the order. She analysed and found out that
there were many unnecessary obstructions in between which could be eliminated. She fixed a standard time for
processing the order.
She also realised that there were some flavours whose demand was not enough. So, she also decided to stop the
sale of such flavours. As a result with in a short period Sandhya was able to attract the customers.
Identify and explain any two techniques of scientific management used by Sandhya to solve the problem.
(CBSE, Delhi 2017)

Question 3.
Explain briefly ‘discipline’ and ‘scalar chain’ as principles of general management. (CBSE, Delhi 2017)
Question 4.
Explain ‘order’ and ‘initiative’ as principles of general management. (CBSE, Delhi 2017)

Question 5.
Explain briefly ‘Unity of Direction’ and ‘Order’ as principles of general mangement. (CBSE, OD 2017)
Question 6.
Explain briefly ‘Initiative’ and ‘Esprit de Corps’ as principles of general mangement. (CBSE, OD 2017)

Question 7.
Explain briefly ‘Remuneration of Employees’ and ‘Scalar Chain’ as principles of general mangement. (CBSE,
OD 2017)

Question 8.
What did Taylor want to communicate through mental revolution? (CBSE, Sample Paper, 2017)
Question 9.
Briefly explain work study techniques that help in developing standards to be followed throughout the
organization.

Question 10.
Nutan Tiffin Box service was started in Mumbai by the Mumbai Dabbawalas. The Dabbawalas who are the soul
of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade tiffin to all office
goers at the right time and place. The service is uninterrupted even on the days of bad weather, political unrest
and social disturbances. Recently, they have started online booking system through their website
‘mydabbawala.com’. Owing to their tremendous popularity amongst the happy and satisfied customers and
members, the Dabbawalas were invited as guest lecturer by top business schools. The Dabbawalas operate in a
group of 25-30 people alongwith a group leader. Each group teams up with other groups in order to deliver the
tiffins on time. They are not transferred on frequent basis as they have to remember the addresses of their
customers. They follow certain rules while doing trade—no alcohol during working hours; no leaves without
permission; wearing white caps and carrying ID cards during business hours.
Recently, on the suggestion of a few self-motivated fellow men, the dabbawalas thought out and executed a
plan of providing food left in tiffins by customers to slum children. They have instructed their customers to
place red sticker if food is left in the tiffin, to be fed to poor children later.

1. State any one principle of management given by Fayol and one characteristic of management mentioned
in the above case.
2. Give any two values which the Dabbawalas want to communicated to society. (CBSE, Sample Paper
2016)

Question 11.
‘Aapka Vidyalaya’ believes in the holistic development of students and encourages team building through a mix
of curricular, co-curricular and sports activities. On its Founder’s Day, a stage performance had to be put up. A
committee of ten prefects was constituted to plan different aspects of the function. They all decided to use
recycled paper for decoration. There was a spirit of unity and harmony and all the members supported each
other. With mutual trust and a sense of belonging, the programme was systematically planned and executed.
Kartik, one of the prefects, realised that the group had unknowingly applied one of the principles of
management while planning and executing the programme. He was so inspired by the success of this function
that he asked his father to apply the same principle in his business. His father replied that he was already using
this principle.

1. Identify the principle of management applied for the success of the programme.
2. State any two features of management highlighted in the above paragraph.
3. Identify any two values which ‘Aapka Vidyalaya’ communicated to society. (CBSE, Delhi 2015)

Question 12.
Telco Ltd. manufactures files and folders from old clothes to discourage the use of plastic files and folders. For
this, they employ people from nearby villages where very less job opportunities are available. An employee,
Harish, designed a plan for cost reduction but it was not welcomed by the production manager. Another
employee gave some suggestions for improvements in design, but it also was not appreciated by the production
manager.

1. State the principle of management that is violated in the above paragraph.

2. Identify any two values that the company wants to communicate to the society. (CBSE, OD 2014)

Question 13.
Pawan is working as a Production Manager in CFL Ltd. which manufactures CFL bulbs. There is no class-
conflict between the management and workers. The working conditions are very good. The company is earning
huge profits. As a policy, the management shares the profits earned with the workers because they believe in the
prosperity of the employees.

1. State the principle of management described in the above paragraph.

2. Identify any two values which the company wants to communicate to society. (CBSE, OD 2014)

Question 14.
Voltech India Ltd. is manufacturing LED bulbs to save electricity. However, it is running under heavy losses.
To revive from the losses, the management shifts the unit to a backward area where labour is available at a low
cost. The management also asks the workers to work overtime without any additional payments and promises to
increase the wages of the workers after achieving its mission. Within a short period, the company starts earning
profits because both the management and workers honour their commitments.

1. State the principle of management described in the above paragraph.

2. Identify any two values that the company wants to communicate to the society. (CBSE, Delhi 2014)

Question 15.
ABC Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work
and responsibilities between workers and the management. The management even takes workers into
confidence before taking important decisions. All the workers are satisfied as the behaviour of the management
is very good.

1. State the principle of management described in the above paragraph.

2. Identify any two values which the company wants to communicate to society. (CBSE, Delhi 2014)

Question 16.
The principles of Taylor and Fayol are mutually complementary. One believed that management should share
the gains with the workers while the other suggested that employees’ compensation should depend on the
earning capacity of the company and should give them a reasonable standard of living.
Identify and explain the principles of Favol and Taylor referred to in the above paragraph. (CBSE, Delhi 2014)

Question 17.
The principles of Taylor and Fayol are mutually complementary. One believed that management should not
close its ears to constructive suggestions made by the employees while the other suggested that a good company
should have an employee suggestion system whereby suggestions which result in substantial time or cost
reduction should be rewarded.
Identify and explain the principles of Taylor and Fayol referred to in the above paragraph. (CBSE, Delhi 2014)

Question 18.
Nikita and Salman completed their MBA and started working in a multinational company at the same level.
Both of them worked hard and were happy with their employer. Salman had the habit of back-biting and wrong
reporting about his colleagues to impress his boss. All the employees in the organisation knew about it. At the
time of performance appraisal, the performance of Nikita was judged to be better than Salman. Even then their
boss, Mohammed Sharif, decided to promote Salman stating that being a female, Nikita would not be able to
handle the complications of a higher post.

1. Identify and explain the principle of management which was not followed by this, multinational
company.
 2. Identify the values which are being ignored quoting the lines from the above paragraph. (CBSE, OD
2013)

Question 19.
Hina and Harish are typists in a company having the same educational qualifications. Hina gets Rs.3,000 per
month and Harish gets Rs.4,000 per month as salaries for the same working hours. Which principle of
management is being violated in this case? Name and explain the principle. (CBSE, Delhi 2006)

Question 20.
Radhika opens a jewellry showroom in Jaipur after completing a course in jewellry designing. She has
employed eleven persons in her showroom. For greater productivity, she divides the work into small tasks and
each employee is trained to perform his/her specialised job. The sales persons are allowed to close a deal with a
buyer by giving a maximum of 10% discount, whereas the decision to give any further discount rests with
Radhika as the final authority. In the earlier days of starting of the business, five of her employees were asked to
put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore,
after six months when the business was doing well, she awarded a cash bonus to each of these employees to
honour her commitment. However, when it comes to settling the conflicts among her employees, she tends to be
more biased towards her female employees.
In context of the above case:

1. Identify and explain the various principles of management that are being applied by Radhika by quoting
lines from the paragraph.
2. Identify and explain the principle of management which is being violated by Radhika by quoting lines
from the paragraph.
3. State any one effect of the violation of the principle of management by Radhika as identified in part(b)
of the question.

Question 21.
Rajveer works as a plant superintendent in a carpet making factory. In order to complete the export orders on
time, the production manager asks him to make the workers work over time whereas the finance manager is
strictly against this practice because it will increase the cost of production. Moreover, Rajveer feels that since
the company is manufacturing handmade carpets as well as machine made carpets there is a lot of overlapping
of activities. Therefore, there should be two separate divisions for both of them wherein each division should
have its own in charge, plans and execution resources.
In context of the above case:

1. Identify and explain the principle of management which is being violated.

2. Also identify the principle of management that Rajveer feels should be implemented in the factory.
3. Give any two differences between the principle of management as identified in part (a) and part (b)
respectively.

Question 22.
Neeraj is selected for the post of software developer in an IT Company. On the first day of his joining Mehul,
his project manager tells Neeraj that during the course of his work he will come across many such opportunities
which may tempt him to misuse his powers for individual or family’s benefit at the cost of larger general
interest of the company. In such situations, he should rather exhibit exemplary behaviour as it will raise his
stature in the eyes of the company. Also, for interacting with anyone in the company on official matters, he
should adopt the formal chain of authority and communication.
In context of the above case:

1. Identify and explain the various principles of management that Mehul is advising Neeraj to follow while
doing his job.
 2. List any two values that Mehul wants to communicate to Neeraj.

Question 23.
Davinder is a class twelfth commerce student in a reputed school in Punjab. Satinder is his elder brother who is
doing his Masters in Hospital Administration from Delhi after completing his B.Sc course. During vacations
when Satinder comes home, Davinder shows him the business studies project that he is preparing on the topic
‘Principles of Management’. Satinder tells him that these principles are also a part of MBA course curriculum at
the beginner’s level as they form the core of management in practice. But he finds these principles different
from those of pure science.
In context of the above case:

1. Outline the concept of principles of management.

2. Why does Satinder find the principles of management different from those of pure science?
3. Why do the principles of management form the core of management in practice? Explain by giving any
two points highlighting the importance of principles of management.

Question 24.
Gurpreet is running a retail mart in Varanasi to provide various types of products of daily use under one roof to
the buyers. The employee turnover in his business is very high and he is perpetually on a look out for new staff.
The fact of the matter is that he lacks managerial skills and assigns work to his employees on adhoc basis
without letting them settle down in a specific work. This approach of his creates a sense of insecurity among the
employees and they tend to leave the job very quickly. However, he is a very god fearing person and offers fair
wages to his employees so they can afford a reasonable standard of living.
In context of the above case:

1. Identify and explain the principle of management which Gurpreet is unable to apply and is perpetually
on a look out for new staff.
2. “He is a very god fearing person and offers fair wages to his employees so they can afford a reasonable
standard of living.” Name and explain the relevant principle of management will has been brought into
effect by Gurpreet.

Question 25.
After finishing her BBA degree course, Tanya gets a job of Assistant Manager in a retail company through the
reference of her cousin Taruna who works in the same company as a Senior Manager. Taruna decides to guide
Tanya through her experience by making her aware of the important facts about management in practice. She
tells her that neither the principles of management provide any readymade, straitjacket solutions to all
managerial problems nor they are not rigid prescriptions, which have to be followed absolutely.
In context of the above case :

1. Identify the two features of principles of management mentioned in the above paragraph by quoting
lines from the paragraph.
2. Why do the principles of management not provide readymade, straitjacket solutions to all managerial
problems?

Question 26.
Raj and Simran are both qualified eye surgeons and good friends. After obtaining a certificate of practice, they
decide to persue a career of their own choice. Raj starts an eye care centre in the city whereas Simran joins a
government hospital in a small village. They meet after a long time in a party. Raj invites Simran to visit his eye
care centre and she accepts his invitation. She observes at his clinic that there is a fixed place for everything and
everyone and it is present there so that there is no hinderance in the activities pf the clinic. Also, Raj always
tends to replace T with ‘We’ in all his conversations with the staff members. Later on Raj shares with her that
he always deals with lazy staff sternly to send the message that everyone is equal in his eyes.
In context of the above case:

1. Identify and explain the various principles of management that Raj is applying for the successful
management of his eye care centre.
2. List any two values that Simran wants to communicate to the society by taking up a job in a village.

Question 27.
Hritik is desirous of setting up a small factory to manufacture different kinds of eco-friendly packaging
materials. He proposes to adopt a logical approach to his business rather than hit and trial method as he knows
that this can result in tremendous saving of human energy as well as wastage of time and materials. He plans to
adopt paternalistic style of management in practice in order to avoid any kind of class-conflict that may emerge
between him and the workers. Moreover, he plans to seek the opinion of his workers before taking any
important decisions and also offers incentives to them for providing valuable suggestions for the business.
In context of the above case:

1. Identify and explain the various principle of scientific management that Hritik plans to apply in his
business.
2. List any two values that he wants to communicate to the society by offering eco¬friendly packaging
material.

Question 28.
‘Study Buddy Pvt. Ltd.’ is company dealing in stationery items. In order to establish standards of excellence
and quality in materials and in the performance of men and machines, the company adheres to benchmarks
during production. Moreover, its products are available in limited varieties, sizes and dimensions thereby
eliminating superfluous diversity of products.
Identify the technique of scientific management which has been adopted by ‘Study Buddy Pvt. Ltd.’
Question 29.
Anshul owns a small scale factory where utility items are prepared from waste material like paper mache items,
paper and cloth bags, decorative material etc. Over the past few weeks, he was observing that the productivity
of one of his very efficient worker, Ramdas, is going down. So he decides to probe into the matter and confronts
Ramdas one day. On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work
as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient
when everybody is being paid at the same rate. Taking a lesson from this insight, Anshul decides to implement
an incentive bonus plan so as differentiate between efficient and inefficient workers.
In context of the above case:

1. Name and explain the incentive bonus plan that Anshul may implement so as differentiate between
efficient and inefficient workers.
2. State any two values that Anshul wants to communicate to the society by setting up a special type of
business.

Question 30.
Swaraj is running an office furniture showroom. Most of his clients are businessmen and they prefer to buy
goods on credit. Keeping this in mind, he has given the power to the sales manager, Mr. Bhardwaj, to offer a
credit period of only 20 days, while negotiating a deal with a buyer. On a specific day, Mr. Bhardwaj finds that
if he can offer a credit period of 30 days as an exception to a prospective buyer, he is likely to finalise a highly
profitable deal for the business. So Mr. Bhardwaj requests Swaraj to grant him additional authority for offering
a credit period of 30 days in the interest of the business. But Swaraj refuses to extend his authority and as a
result, the deal is not finalized.
In context of the above case:
1. Can Mr. Bhardwaj be held responsible for loss of the deal? Why or why not ? Give a suitable reason in
support of your answer.
2. Also, explain the related principle.