Class 12 OCM Important Concepts (2024) (STATE BOARD)

 

1) Motion Study 

Answer: The study of required motion means movement of an employee as well as of machine while completing a particular task is very important. It is helpful in eliminating unnecessary motions and finding the best method of doing a particular job. 

 2) Differential Piece Rate System 

Answer: Remuneration should be fixed in such a way that average worker is motivated to attain a standard output. Taylor suggested the differential piece-wage system. Higher rates are offered to employees who complete the work more than the standard quantity under this system. 

3) Fatigue Study 

Answer: Generally long working hours without sufficient breaks, target pressure, heavy working tools, and poor working conditions result into physical and mental stress i.e. fatigue. It has an adverse effect on the health and efficiency of the employees. 

4) Time Study 

Answer: It is the technique of observing and recording the time taken by an employee to complete a given task. With the help of time study, the precise time required for each element of work is determined. 

5) Management 

Answer: The tasks which are taken to achieve organizational goal is called management. Management is a set of principles that relate to the various functions such as planning, organizing, staffing, directing, coordinating, controlling, etc. which are helpful in achieving organizational goals. 

6) Planning 

Answer: Planning is the basic function of management. Every function of management is based on planning. It includes deciding the things to be done in advance. Planning is an intellectual process of logical thinking and rational decision-making. 

7) Organizing 

Answer: Organizing is the process of identifying, and bringing the required resources together such as men, money, material, machine, and method, grouping and arranging them properly for achieving the objectives. This function is important for the execution of the plans which have been prepared by top-level management people.

8) Staffing 

Answer: Staffing is the function of execution according to plan and organizational structure. It is the process of attracting, recruiting, selecting, placing, appraising, remunerating, developing, and retaining the best workforce. 

9) Directing 

Answer: Directing is the soul of the management function. It is the process of instructing, guiding, communicating, inspiring, motivating and supervising the employees to achieve the predetermined goals of an organization. 

10) Entrepreneur 

Answer: An entrepreneur is “a person who starts a business and is willing to risk loss in order to make money”. Entrepreneurs are the people who have the courage to offer and to share an idea or a product or a service with the world. 

11) Agro-tourism 

Answer: Agro tourism offers tourists a chance to reconnect with the land and provides a “hands-on experience” with local foods. Agritourism activities include picking fruits, tending bees, milking cows, and other educational pursuits. 

12) Start-ups 

Answer: A start-up is defined as an entity having its headquarters in India, which was opened less than 10 years ago and has an annual turnover of less than Rs.100 crores. Start-up India is an initiative of the Government of India. It was launched in 2016. 

13) Stand-ups 

Answer: The objective of the Stand-Up India scheme is to facilitate bank loans between Rs.10 lakh and Rs.1 Crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise. This enterprise may be in the manufacturing, services or trading sector. 

14) Intrapreneur 

Answer: An intrapreneur is an employee who has the authority and support of his company/employer to implement his own innovative and creative ideas. His idea or product may or may not earn immediate revenue for the company. Still, the employee keeps receiving his salary. 

15) Transport 

Answer: Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place.

16) Communication 

Answer: Communication is the art of exchanging ideas, facts, information, etc. from one person or entity to another. The process of passing any information from one person to another with the help of some medium is termed as communication 

17) Banking 

Answer: As per The Indian Banking Regulation Act, 1949 banking company means “any company which transacts the business of banking in India” and the word banking has been defined as “accepting for the purpose of lending or investment of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, and order or otherwise. 

 18) Insurance 

Answer: Insurance is a means of protection from financial loss. It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss. Insurance is a contract between the insurer and the insured, whereby the insurer agrees to compensate the insured against loss. 

19) Warehousing 

Answer: Warehousing refers to storage of goods and consists of all those activities which are connected with storage and preserving of goods. It is a means of storing goods. Warehousing can be defined as a group of activities connected with the storing and preserving of stored goods from the time of production till the time of consumption. 

20) E-business 

Answer: The term ‘E-business’ i.e electronic business is derived from the terms e-mail and ecommerce.E-business or electronic business is the administration of conducting business via the internet. This would include the buying and selling of goods or services, along with providing technical or customer support through the internet. 

21) B2B 

Answer: In this form, the buyer and seller are both business entities and do not involve individual consumers. Here, both the parties involved in e-commerce transactions are business firms and hence the name B2B i.e. business to business. 

22) B2C 

Answer: The transactions under B2C are between business firms and consumers. Firms use their sites for a range of marketing activities. These include a promotion, product information, reviews about the product/ service, and delivery of the product at the doorstep.

23) C2C 

Answer: It facilitates the online transaction of goods or services between two people. Consumer-to-consumer (C2C) involves electronically facilitated transactions between consumers through some third party. 

24) Outsourcing 

Answer: Outsourcing is the process of contracting a business function or any specific business activity to specialized agencies mostly the non-core areas such as sanitation, security, household pantry, etc. are outsourced by the company. The company makes a formal agreement with the agency. 

25) BPO 

Answer: BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business processes to a third-party service provider. BPO refers to the outsourcing of peripheral activities of the organization to an external organization to minimize cost and increase efficiency. 

26) LPO 

Answer: LPO refers to the practice of law firm or corporation obtaining legal support services from an outside law firm or legal support services company. LPO is the industry in which inhouse legal departments or organizations outsourced legal work to such areas where it can be done at less cost. 

27) KPO 

Answer: KPO is described as the functions related to knowledge and information outsourced to third-party service providers. KPO is the allocation of relatively high-level tasks, to an outside Organization or a different group usually in a different geographic location. 

28) Social responsibility 

Answer: Social responsibility of business refers to its obligation to take those decisions and perform those actions which are desirable in terms of the objectives and values of our society. So, all the activities of business should be performed in such a manner that they will not harm any part of society rather they will protect and contribute to the interest of society. 

29) Concept of Trusteeship 

Answer: Trusteeship is a socioeconomic philosophy that was propounded by Mahatma Gandhi. It provides a means by which the wealthy people would be the trustees of trusts that looked after the welfare of the people in general. 

30) Business ethics 

Answer: The word ‘Ethics’ is derived from the Greek word ‘Ethos’ which means character. Ethics means the set of rules and principles that the organization should follow while business ethics refers to a code of conduct that businesses are expected to follow while doing business

31) Moral Values 

Answer: Moral values are based on perceptions of right and wrong whereas social values may also include ideas about things being socially acceptable. Social values are often based on tradition, ego, honesty, integrity, fairness, hard work, cooperation, forgiveness, never hurt anyone, etc 

32) Social values 

Answer: Social values form an important part of the culture of society. They provide general guidelines for social conduct. Values such as fundamental rights, patriotism, respect for human dignity, rationality, sacrifice, equality, democracy, etc. influence our behavior in many ways. 

33) District Commission 

Answer: A consumer dispute redressal commission at each district established by the State Government is known as District Commission. 

34) National Commission 

Answer: A consumer dispute redressal forum at the National level established by the Central Government by notification is known as National Commission. It is also called as the National Consumer Disputes Redressal Commission. 

35) State Commission 

Answer: A consumer dispute redressal commission at the state level established by the State Government is known as State Commission. It is also called as State Consumer Disputes Redressal Commission. 

36) Lok Adalat. 

Answer: Lok Adalat is an effective and economical system for quick redressal of public grievances. It can also be referred to as ‘People’s Court’. It is established by the government to settle disputes by compromise.e.g. MSEDCL, MSRTC, Railway authority, Insurance Companies, Banks, etc. 

37) Janhit Yachika 

Answer: Public Interest Litigation means a legal action initiated in a court of law regarding a matter of general public interest. It is a legal facility under which any person can approach to a court of law in the interest of society. 

38) Market 

Answer: The term market is derived from the Latin word ‘Mercatus’, which means ‘to trade’, ‘to trade merchandise’ or ‘a place where business is transacted. In simple words market is a place where two or more parties are involved in buying and selling

39) Place Concept of Market 

Answer: The market is the place where buyers, sellers, and other intermediaries come together and exchange goods or services. In the olden days, place played an important role in defining the market. 

 40) Commodity Concept of Market 

Answer: In the commodity concept of market, emphasis is given to ‘buying and selling of goods or services. In this concept, the process of buying and selling of goods or services is important and not the place of exchange. 

41) Digital Concept of Market 

Answer: Emergence of Information Technology gave birth to the new concept of the market called as Space or Digital Concept. New and sophisticated E-Commerce Portals and Mobile Applications make the buying and selling easy and convenient for buyers as well as sellers. 

42) Product 

Answer: Product refers to the goods or services that are offered to the customers for sale and are capable of satisfying the need of the customer. The product can be intangible or tangible, as it can be in the form of services or goods 

43) Price 

Answer: The price of the product is basically the amount that a customer pays for the product. Price plays an important role in creating demand for the product. The business needs to take utmost care to decide the price of the product. 

44) Promotion 

Answer: Promotion is an important element of marketing as it creates brand recognition and sales. Promotion is a tool of marketing communication that helps to publicize the product to the customer. 

45) Marketing Mix 

Answer: Marketing Mix is the combination of different marketing variables that the firm blends and controls to achieve the desired result from the target market.In simple words the marketing mix is putting the right product, at the right time, at the right price in the right place. 

46) Packaging 

Answer: Package and Label creates the first impression on the consumer about the product. An attractive package and label can help to make the product successful. Packaging means designing the package for the product.

47) Labelling 

Answer: A label is a slip that is found on the product and provides all the information regarding the product and its producer. The slip-on in which all this information is provided is called a label and its process is called as labelling.