Correct Answer: Rs 14,400

Solution : Answer = Rs 14,400

Profit= 1,80,000
Sales= 6,00,000
Profit=$\frac{1,80,000}{6,00,000} \times 1,20,000$= 36,000.

Sara's share of profit= 36,000×$\frac{2}{5}$= 14,400.
Hence, the correct option is 3.

Correct Answer: Unity of command

Solution : According to the principal is the subordinate should receive orders and be accountable to one and only one superior. If a subordinate receives orders from more than one superior he will find it extremely difficult to decide as to whom he has to obey first.

Hence, option A is correct.

Correct Answer: Debited profit and loss suspense account by Rs 5,600 and credited S's account

Solution : Answer = Debited profit and loss suspense account by Rs 5600 and credited S's account

Sales (IApril to Dure 30,2017)=1,40,000
Profit= $1,40,000 \times \frac{20}{100}$= 28,000.
Shreys's share= $28000 \times \frac{1}{5}$= 5,600

Protit and cass suspense AlC or 5600
To Shreya's Capital AIC - 5600
Hence, the correct option is 2.

Correct Answer: Selling Concept

Solution : The correct answer is (c) Selling Concept.

The Selling Concept is a marketing philosophy that emphasizes aggressive sales techniques and promotional efforts to convince customers to buy a company's products or services. The belief underlying this concept is that customers typically won't buy enough on their own, so a company must use various selling and promotional tactics to stimulate demand and close sales. It's a more product-focused approach, and the primary goal is to sell what the company produces rather than understanding and meeting customer needs, which is a central focus of the Marketing Concept.

Correct Answer: Both statements are incorrect.

Solution : The correct answer is (c) Both statements are incorrect.

Statement 1 is incorrect. The selling concept primarily focuses on short-term sales and transactions rather than building long-term customer loyalty. It often involves aggressive sales tactics to close deals.

Statement 2 is false. The marketing concept does not solely rely on aggressive advertising for sales. The marketing concept involves understanding customer needs, creating valuable products or services, and effectively promoting them, considering a holistic approach to meet both customer satisfaction and business goals.

Therefore, statement 1 is incorrect, and statement 2 is false.

Correct Answer: Both statements are correct.

Solution : The correct answer is (a) Both statements are correct.

Statement 1 is correct. Sales promotion techniques are designed to stimulate immediate sales and generate consumer interest in the short term through various strategies like discounts, coupons, contests, and limited-time offers.

Statement 2 is correct. Sales promotion techniques do indeed impact consumer purchasing decisions. These promotions often influence consumers to make a purchase by offering incentives, discounts, or attractive deals, affecting their decision-making process.

Correct Answer: Setting customer service standards.

Solution : The correct answer is (a) Setting customer service standards.

The first step for IJK Retail in the process of controlling would be to set customer service standards. This involves defining clear and specific expectations for customer service quality that the company aims to achieve across all its outlets. By establishing these standards, IJK Retail provides a benchmark against which it can measure actual customer service performance and determine whether any deviations occur.

Once the standards are set, the subsequent steps such as measuring customer satisfaction, comparing sales data with targets, and taking corrective action will follow to ensure that the established standards are being met and maintained consistently across all outlets.

Correct Answer: Statement 1 is correct, and statement 2 is false.

Solution : The answer is (b) Statement 1 is correct, and statement 2 is false.

Statement 1 is correct. Sales promotion techniques are designed to boost short-term sales by offering incentives to consumers to purchase a product or service. Common sales promotion techniques include discounts, coupons, buy-one-get-one-free offers, and loyalty programs.

Statement 2 is false. Sales promotion techniques can have a significant impact on consumer behavior and loyalty. For example, a discount on a product can encourage consumers to purchase it sooner rather than later. A loyalty program can reward consumers for repeat purchases, which can lead to increased brand loyalty.

Correct Answer: To maintain a competitive edge.

Solution : The correct answer is (b) To maintain a competitive edge.

Controlling is important for ABC Furniture, as it helps the company monitor and manage its operations to ensure that they are running efficiently and effectively. In a highly competitive market, maintaining a competitive edge is crucial for the company's success. By implementing control systems, ABC Furniture can continuously assess its production process, quality standards, costs, and other aspects of its operations. This allows the company to identify areas for improvement, make necessary adjustments, and ensure that it remains efficient and capable of competing effectively against its rivals.

Correct Answer: Identifying potential risks
 

Solution : The correct answer is (b) Identifying potential risks

Identifying potential risks is a crucial initial step because it allows the company to understand the challenges and uncertainties associated with revamping production processes. By assessing potential risks, XYZ Manufacturing Company can develop strategies to mitigate these risks and ensure a more successful planning and implementation process.