CUET -QUESTION BANK

SUBJECT: BUSINESS STUDIES

Contributed by:
DPS SECTOR 45, GURGAON
DPS JAIPUR
DHARAV HIGH SCHOOL
 DELHI PUBLIC SCHOOL, JAIPUR
COMMON UNIVERSITY ENTRANCE TEST(2023-2024)
CLASS XII

Business Studies
Nature and Significance of Management

Question Page No.

S No. of NCERT
1. The objective of management which consistently creates economic value for various 11
constituents of society is _______________________.
1. Both Social and Personal objective
2. Personal objective
3. Social objective
4. Organisational objective

2. ‘Even where members of a department willingly cooperate and work, a manager has to 23
coordinate the efforts of different people in a conscious manner.’
Identify the characteristic of coordination discussed above.
1. Coordination is an all-pervasive function
2. Coordination is a continuous process
3. Coordination is a deliberate function
4. Coordination ensures unity of action

3. Identify the level of management whose basic task is to cooperate with the activities of 18
other departments according to the overall objectives of the organisation.
1. Top
2. Middle
3. Lower
4. Operational

4. A production manager was able to produce the desired output on time but by paying 4
additional overtime wages to employees. In this case the manager was ____________.
1. Effective only
2. Neither effective nor efficient
3. Both effective and efficient
4. Efficient only

5. Name the process of working with and through others to effectively achieve 4
organisational objectives by efficiently using limited resources in a changing
environment.
1. Management
2. Planning
3. Organising
4. Controlling

6. “Any one can be called a manager irrespective of the educational qualification 16

possessed.” Identify the characteristic of the profession that Management does not
fulfil in the statement being discussed above.
 1. Ethical code of Conduct
2. Restricted Entry
3. Professional Association
4. Service Motive

7. ___________________________is the process by which the manager brings order out 20

of chaos, removes conflict among people over work or responsibility sharing and
creates an environment suitable for teamwork.
1. Planning
2. Organising
3. Staffing
4. Controlling

8. Name the process whereby an executive develops an orderly pattern of group efforts 21
among his subordinates and secures unity of action in the pursuit of common purpose.
1. Management
2. Efficiency
3. Effectiveness
4. Coordination

9. 'The main objective of any organisation should be to utilise human and material 9
resources to the maximum possible advantage'. The above lines highlight which of
the following objectives of management.
1. Organisational objectives
2. Social objectives
3. Personal objectives
4. Both (2) and (3)

10. Name the function of management which helps in the formulation of future plans, in 21
the light of the problems that were identified and thus, helps in better planning in the
future period.
1. Planning
2. Organising
3. Staffing
4. Controlling

11. Match the list I with list II 4

List I List II
A. Effectiveness I. Finishing the given task on time
B. Efficiency II. The primary functions or activities
C. Process III. Doing the task correctly with
minimum cost
D. Essence of management IV. Coordination

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
12. Match the list I with list II 18
List I List II
A. Operations Head I. Top level
B. Workforce II. Lower level
C. Chief Operating Officer III. Middle level
D. Supervisor IV. Zero level

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV

13. Match the list I with list II 4,9,19,21

List I List II
A. Coordination I. Derving more benefits by using
less resource.
B. Staffing II. an objective of management.
C. Efficiency III. the essence of management.
D. Survival IV. a management function.

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV

14. Which of the following are the functions of the middle level of management? 18
A. Formulate overall organisational goals and strategies for their achievement.
B. Integrate diverse elements and coordinate the activities of different
departments according to the overall objectives of the organisation.
C. Ensure that their department has the necessary personnel.
D. Interpret the policies framed by top management.
E. Co- operate with other departments for smooth functioning of the organisation.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and E only
3. B, C and E only
4. B, C and D only

15. Which of the following statements is not true for lower level management? 19
A. Ensure the quality of the output
B. Ensure that their department has the necessary personnel.
C. Co- operate with other departments for smooth functioning of the organisation.
D. Analyse the business environment and its implications for the survival of the
business.
E. They ensure that the safety standards are maintained within the organisation.
Choose the correct answer from the options given below:
1. A, B and D only
 2. C, D and E only
3. B, C and E only
4. B, C and D only

16. Jayant is working as Head relationship manager in the wealth management division of 19
a private sector bank. He has created an internal environment which is conducive to an
effective and efficient performance of his team of his team of ten relationship
management executives. A typical day at work in Jayant’s life consists of a series of
interrelated and continuous functions. He decides the targets for his department which
are in line with the objectives of the organisation 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 a GPS system, account
opening forms, brochures, details of account holders, etc. are readily made available to
them. The executives are given sufficient authority to carry out the work assigned to
them. 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. Which of the following functions of management
has been highlighted in the paragraph above?
A. Planning
B. Organising
C. Staffing
D. Directing
E. Controlling
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and E only
3. B, C and E only
4. B, C and D only

17. Which of the following is not a charateristics of management? 5

1. Management is a rigid process.
2. Management is a goal-oriented process.
3. Management is a continuous process.
4. Management is a dynamic process.

18. Which of the following is not a designation related to top level management? 18
1. President
2. Vice President
3. Chairman
4. Production Manager

19. Management translates the works to be carried out in terms of goals to be achieved 6
and assigns the means to achieve it. This statement relates to ____.
1. Management of work
2. Management of people
3. Management of operations
4. Management of objectives

20. Read the following statements: Assertion and Reason. 21

Choose one of the correct alternatives given below:
 Assertion (A): Coordination is a one time function of top management.
Reason (R): Coordination begins at the planning stage and continues till controlling.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

21. Read the following statements: Assertion and Reason. 4

Choose one of the correct alternatives given below:
Assertion (A): Management is concerned with efficient use of resources.
Reason (R): Management helps to reduce costs and ultimately lead to higher profits.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

Case Study
22. Prem has recently started a business to sell computers. He hired a shop in Nehru Place 8
in New Delhi, where he assembles various components to make computers and
supplies them as per order. He performs a series of composite but separate functions
simultaneously and ensures that computers are delivered in time as per orders. These
functions are performed by all managers at all times. The feature of management
highlighted above is___________.
1. Management is a group activity
2. Management is dynamic
3. Management is pervasive
4. Management is a continuous process

23. Tammana has two kids- Yash and Yashika, studying in different schools. On 9
comparing the two schools, Tamanna realizes that the management of Yash’s school is
better in many ways, like the syllabus for each term is completed well in advance, the
results for the weekly exams are given on time, the teachers seem to be more joyful
and contended and so on.
Identify the feature of management highlighted above.
1. Management is a group activity
2. Management is an intangible force
3. Management is pervasive
4. Management is a continuous process

24. The purchase, production and sales managers at Sharda Ltd, a firm manufacturing 21
readymade garments are generally at a conflict, as they have their own objectives.
Usually each thinks that only they are qualified to evaluate, judge and decide on any
matter, according to their professional criteria. Name the concept which will be
 required by the CEO Mr. Raman, to reconcile the differences in approach, interest or
opinion in the organisation.
1. Management
2. Efficiency
3. Effectiveness
4. Coordination

5. Ramesh Automobiles aims to produce and sell 1,00,000 cars in 2019. To achieve this 12
objective the production department strives for timely production and sales department
takes all possible steps to sell them. Due to combined efforts of all departments, the
company is able to achieve its target. Which significance of management is
highlighted in the given case?
1. Management helps in achieving personal objectives
2. Management helps in achieving group goals
3. Management increases efficiency
4. Management creates a dynamic organisation

6. In Flipmart Cooperative Ltd., the production and sales department have to coordinate 22
their work, so that production takes place according to the demand in the market.
The characteristic of coordination discussed in the above case is:
1. Coordination is a continuous process.
2. Coordination ensures unity of action.
3. Coordination requires ethical code of conduct.
4. Coordination is an all pervasive function.

7. Murty, a Professor of Management conducted a class on ‘Management principles’ and 12

explained to his students the significance of Management Principles. In the next class,
the Professor asked his students to play roles of different managers. He gave them
various situations and asked them to think like managers and provide solutions to the
problems given in these situations. Each student applied the principles of management
to the given situation in his own personalized manner, depending upon his creativity.
The nature of management highlighted in the above case is:
1. Management as a Science
2. Management as an Art
3. Management both as an Art and as a Science
4. Management as a Profession

Answer Key
S No. Answer
1. 3. Social objective
2. 3. Coordination is a deliberate function
3. 2. Middle
4. 1. Effective only
5. 1. Management
6. 2. Restricted entry
7. 2. Organising
8. 4. Coordination
 9. 1. Organisational objectives
10. 4. Controlling
11. 4. A-I, B-III, C-II, D-IV
12. 3. A-III, B-IV, C-I, D-II
13. 3. A-III, B-IV, C-I, D-II
14. 2. C, D and E only
15. 4. B,C and D only
16. 1. A, B and D only
17. 1. Management is a rigid process
18. 4. Production Manager
19. 1. Management of work
20. 4. Assertion (A) is false but Reason (R) is true.
21. 1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion (A)
22. 4. Management is a continuous process
23. 2. Management is an intangible force
24. 4. Coordination
25. 2. Management helps in achieving group goals
26. 2. Coordination ensures unity of action
27. 2. Management as an art
 Font size- Time New Roman 12
Name of the Subject Business studies
Name of the Chapter Principles of management

Question Page No. of

S No. NCERT
1. Which principle of management states that there should be good superior at all 56
levels of management for smooth and systematic working of organization?
1. Equity
2. Initiative
3. Discipline
4. Order
2. The technique of management in which task of supervision is divided into several 50
specialised functions and each function is entrusted to a specialist foremen is
known as:
1. Standardisation
2. Differential piece wage system
3. Simplification
4. Functional Foremanship
3. Which principle of management prevents dual subordination? 56
1. Unity of command
2. Unity of direction
3. Order
4. Equity
4. They are flexible and can be modified by the manager when the situation so 34
demands. This shows that management principles are :
1. Flexible
2. Behavioural
3. Scientific
4. Universal
5. “Panchayats in our country have been given more powers to decide and spend 58
funds granted to them by the government for welfare of villages”. Identify the
principle of management highlighted in this statement.
1. Equity
2. Centralisation and decentralisation
3. Authority and Responsibility
4. Espirit De corps
6. Functional foremanship is an extension of which of the following principle of 47
management?
1. Division of work
2. Discipline
3. Subordination of individual interest to general interest
4. Espirit de Corps
7. For designing a car, the assembly line production would entail deciding the 49
sequence of operations, place for men, machines and raw materials etc. All this is
a part of which study?
1. Fatigue study
2. Motion study
3. Time study
 4. Method study
8. By Profession, FW Taylor was a 41
1. Mechanical engineer
2. Human resource officer
3. Psychologist
4. Mechanical engineer
9. “Good sense and experience are needed to ensure fairness to all employees, who 59
should be treated as fairly as possible.” Identify the principle of management
highlighted in the above statement.
1. Remuneration of employees
2. Initiative
3. Stability of Personnel
4. Equity
10. “Management should share the gains of the company, if any, with the workers. At 45
the same time workers should work hard and be willing to embrace change for the
good of the company.” Identify the principle of scientific management highlighted
in the above statement.
1. Harmony not discord
2. Science not rule of thumb
3. Cooperation not individual
4. Development of each and every person to his\her greatest prosperity and
efficiency
11. “A good company should have an employee suggestion system whereby 62
suggestions which result in substantial cost/time reduction should be rewarded.”
Identify the principle of management highlighted in the given statement.
1. Remuneration of employees
2. Initiative
3. Stability of Personnel
4. Equity
12. “According to Taylor, even a small production activity like loading pigs of iron 44
into boxcars can be scientifically planned and managed. This can result in
tremendous saving of human energy as well as wastage of time and materials.”
This statement is related to which principle of scientific management?
1. Harmony not discord
2. Science not rule of thumb
3. Cooperation not individual
4. Development of each and every person to his\her greatest prosperity and
efficiency
13. Match the list I with list II 48,49
List I List II
A. One best way of doing job I. Simplification
B. Eliminates unnecessary II. Standardisation
diversity of products
C. Setting standards for business III. Motion study
activities
D. Eliminates unnecessary IV. Method study
movements

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
 2. A-IV, B-I, C-II, D-III
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
14. Match the list I with list II 34,35
List I List II
A. Mainly behavioural I. Principles depends upon
prevailing situations
B. Flexible II. Principles aim at influencing
human behaviour
C. Contingent III. Principles are applied to all
organisations.
D. Universal IV. Principles can be modified by the
managers

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-II, B-IV, C-I, D-III
4. A-I, B-III, C-II, D-IV
15. Match the list I with list II 47
List I List II
A. Draft instructions to workers I. Disciplinarian
B. Check quality of work II. Repair boss
C. Ensures proper working III. Instruction card clerk
condition of tools and machines
D. Ensures discipline IV. Inspector

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-II, D-I
4. A-I, B-III, C-II, D-IV
16. Which of the following statements are true about Taylor and Fayol? 45,44,54
A. Henry Fayol was a staunch proponent of unity of command.
B. Fayol was second to identify four functions of management – Planning,
Organising, Directing and Controlling.
C. Taylor pioneered the introduction of the method of scientific inquiry into
the domain of management practice.
D. Taylor called for complete mental revolution on the part of both
management and workers.
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. A, B and C only
4. A, and D only
17. The technique of differential piece rate system was developed by Taylor in order 50,51
to
A. Demotivate the workers
B. Reward the efficient worker.
 C. Motivate the inefficient workers to perform better.
D. Differentiate between efficient and inefficient workers.
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. A, B and C only
4. B, C and D only
18. Principles of management 34
A. Are as rigid as principles of pure science
B. Are flexible in nature
C. Are formed by practice and experimentation
D. Do not provide straight jacket solution
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and E only
3. B, C and E only
4. B, C and D only

19. Read the following statements: Assertion and Reason. 35

Choose one of the correct alternatives given below:
Assertion (A): Management principles aim at influencing behaviour of human
beings.
Reason (R): Principles enable a better understanding of the relationship between
human and material resources in accomplishing organisational purposes.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

20. Read the following statements: Assertion and Reason. 46

Choose one of the correct alternatives given below:
Assertion (A): Competition should not be replaced by cooperation.
Reason (R): Management should not close its ears to any constructive suggestions
made by the employees.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

Arnav and Shorya are the students of management course. They were asked to
prepare a report on applicability of principles of management in real business
situations. For conducting the survey Arnav had selected an outlet of a popular
chain of fast food restaurant whereas Shorya visited a nearby department store.
When Arnav presented his report to class, Shorya realised that their observations
 were matching on various grounds. In both the business units, work is divided into
small tasks and each is performed by a trained employee. A set of rules are
predetermined and communicated to employees for compliance and there is a
fixed place for everything and all employees have been allotted individual space.
The employees are paid fair wages keeping in mind that it should be within the
paying capacity of organisation. Moreover, the manager encourage a spirit of
mutual trust and belongingness among the employees so that need for imposing
penalties is reduced
21. Identify the principle of management in the following lines “Work is divided into 54
small tasks and each is performed by a trained employee.”
1. Order
2. Division of work
3. Equity
4. Unity of Direction
22. Identify the principle of management in following lines “A set of rules are 56
predetermined and communicated to the employees for compliance.”
1. Division of work
2. Initiative
3. Discipline
4. Scalar chain
23. Identify the principles of management in the following lines: “A place for everything 59
(everyone) and everything (everyone) in its (her/his) place”
1. Order
2. Division of work
3. Scalar chain
4. Discipline
24. Identify the principle of management in the following lines: “Managers encourage a 59
spirit of mutual trust and belongingness among the employees”
1. Unity of command
2. Equity
3. Esprit de corps
4. Discipline
25. “The employees are paid fair wages keeping in mind that it should be within the 58
paying capacity of organisation.” Identify the principle reflected in this statement.
1. Equity
2. Stability of personnel
3. Initiative
4. Remuneration of employees

Answer Key
S No.
1. 3. Discipline
2. 4. Functional Foremanship
3. 1. Unity of command
4. 1. Flexible
5. 2. Centralisation and decentralisation
6. 1. Division of work
7. 4. Method study
8. 1.Mechanical Engineer
9 4.Equity
10 1.Harmony not discord
11 1.Initiative
12 2.Science not rule of thumb
13. 2. A-IV, B-I, C-II, D-III
14. 3.A-II, B-IV, C-I, D-III
15. 3. A-III, B-IV, C-II, D-I
16. 2. A, C and D only
17. 4.B, C and D only
18. 4.B, C and D only
19. 2.Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of Assertion
(A)
20. 4.Assertion (A) is false but Reason(R) is true
21 2.Division of work
22 3. Discipline
23 1.Order
24. 3.Esprit de corps
25. 4.Remuneration of employees
 Font size- Time New Roman 12
Name of the Subject Business studies
Name of the Chapter Business environment

S No. Question Page No. of

NCERT
1. “Political conditions in the USA, differ from those in China or Pakistan.” Which 72
feature of business environment is highlighted in the above statement?
1. Complex
2. Interrelatedness
3. Relativity
4. Specific and general forces
2. The health-and-fitness trend has become popular among large number of urban 76
dwellers. This has created a demand for products like organic food, gyms, bottled
(mineral) water and food supplements. Identify the dimension of business
environment highlighted in the statement.
1. Social
2. Technological
3. Economical
4. Political
3. Educational system and literacy rates is an example of which dimension of 77
business environment?
1. Political
2. Social
3. Technological
4. Economic
4. “In order to effectively cope with these significant changes, managers must 73
understand and examine the environment and develop suitable courses of action.”
Identify the importance of business environment highlighted in the above
statement.
1. It helps to identify threats and early warning signals.
2. It helps in improving performance.
3. It helps in tapping useful resources.
4. It helps in coping up with rapid changes.
5. “The enterprise depends on the environment as a source of inputs or resources and 73
as an outlet for outputs”. Identify the related importance of business environment
reflected in the statement.
1. It helps to identify threats and early warning signals.
2. It helps in improving performance.
3. It helps in tapping useful resources.
4. It helps in coping up with rapid changes
6. Existing structure of the economy in terms of relative role of private and public 75
sectors is an example of which dimension of business environment?
1. Political
2. Social
3. Technological
4. Economic
7. “An adequate knowledge of rules and regulations framed by the Government is a 80
pre-requisite for better business performance. Non-compliance of laws can land
 the business enterprise into legal problems”. Identify the dimension of business
environment highlighted in the given statement.
1. Legal
2. Social
3. Technological
4. Economic
8. The _____________dimension of business environment includes inflation rates, 81
changes in disposable income of people, stock market indices and the value of
rupee etc.
1. Political
2. Social
3. Technological
4. Economic
9. “It is common now to see computerised information kiosks, and World Wide Web 76
multimedia pages highlighting the virtues of products”. Identify the dimension of
business environment highlighted in this statement?
1. Political
2. Social
3. Technological
4. Economic
10. __________ is interpreted as a shift on the part of the government indicating that 86
tax evasion will no longer be tolerated or accepted. Identify the concept.
1. Dematerialisation
2. Devaluation
3. Demonetisation
4. Disinvestment
11. “The enterprises that continuously monitor their environment and adopt suitable 74
business practices are the ones which not only improve their present performance
but also continue to succeed in the market for a longer period.” Identify the
importance of business environment highlighted here.
1. It helps to identify threats and early warning signals.
2. It helps in improving performance.
3. It helps in tapping useful resources.
4. It helps in coping up with rapid changes
12. “Even after opening up of our economy in 1991, foreign companies found it 77
difficult to cut through the bureaucratic red tape to get permits for doing business
in India.” Identify the dimension of business environment highlighted in this
statement.
1. Political
2. Social
3. Technological
4. Economic
13. Match the list I with list II. 71,72
List I List II
A. Shifts in consumer preferences I. Uncertainity
B. Difficult to predict future II. Relativity
happenings
C. Difficult to comprehend at once III. Dynamic
what exactly constitutes a given
environment
 D. Differs from country to country IV. Complexity

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
14. Match the list I with list II 75.77,78
List I List II
A. Birth and death rates I. Social
B. Prevailing political system II. Legal
C. Court judgments III. Political
D. New methods and techniques of IV. Technological
operating a business.

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
15. Match the list I with list II 75,77,78
List I List II
A. The level of political morality I. Technological environment
B. Attitudes towards product II. Economical environment
innovations, lifestyles,
occupational distribution and
consumer preferences
C. Shift in demand from typewriters III. Political environment
to computer based word
processors,
D. Agricultural and industrial IV. Social environment
production trends

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
16. Which of the following statements are correct in terms of business environment? 71,72
A. Different elements or parts of business environment are closely
interrelated.
B. Business environment includes both specific and general forces.
C. Business environment includes only general forces.
D. Business environment is a relative concept since it differs from country to
country and even region to region
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. A, B and C only
 4. B and D only
17. Which of the following are a component of economic environment? 75
A. Expansion of transportation and communication facilities
B. Balance of payments and changes in foreign exchange reserves
C. Volume of imports and exports of different items
D. The nature of relationship of our country with foreign countries
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. A, B and C only
4. C and D only
18. Which of the following statements are correct in terms of Demonetisation? 86
A. The aim of demonetisation was to curb corruption.
B. Demonetisation led to cash lite economy.
C. Demonetisation is not viewed as a tax administration measure.
D. Demonetisation is also interpreted as a shift on the part of the government
indicating that tax evasion will no longer be tolerated or accepted.
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. A, B and C only
4. C and D only
19. Read the following statements: Assertion and Reason. 86
Choose one of the correct alternatives given below:
Assertion (A): Demonetisation is viewed as a tax administration measure.
Reason (R): The aim of demonetisation was to curb corruption, counterfeiting the
use of high denomination notes for illegal activities.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
20. Read the following statements: Assertion and Reason. 72,73
Choose one of the correct alternatives given below:
Assertion (A): Environmental awareness can help managers to identify various
threats on time and serve as an early warning signal
Reason (R): The Indian firms can prepare themselves to meet the threat by
adopting such measures as improving the quality of the product, reducing cost of
the production, engaging in aggressive advertising etc.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
Read the passage and Answer Q.no 21 to 25.
 Harsh Ltd decided to start its new venture in Delhi. For this they needed to
understand the business environment of that area. It was realised by the company that
the business environment of Delhi was very hard to understand unless and until it was
divided into various business dimensions like social economic political legal and
Technological. After understanding the business situation, the company started to
study the closed links between different elements of business environment. They give
a proper shape to their research and the business got started with full force. Later they
realised that the products they were selling in Delhi were more fit for the American
culture and decided to start a new branch in New York where the demands of their
products was very high from the first day. It was the only company in New York
which was selling those products. The company came to be recognised and in few
years became a global brand. The reason for the success in different countries was the
adaptability it showed in meeting the changing environment. The company keeps
track of all happenings and does a periodic survey of the choices of the customers.
21. “It was realised by the company that the business environment of Delhi was very hard 71,72
to understand unless and until it was divided into different business dimensions like
social, economic, political, legal and technological.” Identify the characteristic of
business environment highlighted in this statement.
1. Uncertainty
2. Relativity
3. Complexity
4. Interrelatedness
22. “Later they realised that the products they were selling in Delhi were more fit for the 71,72
American culture and decided to start a new branch in New York where the demands
of their products was very high from the first day.” Identify the feature of business
environment highlighted in this statement.
1. Specific and general forces
2. Relativity
3. Complexity
4. Interrelatedness
23. “After understanding the business situations the company started to study the close 71,72
links between different elements of business environment.” Identify the feature of
business environment highlighted here.
1. Specific and general forces
2. Relativity
3. Complexity
4. Interrelatedness
24. “The reason for the success in different countries was the adaptability it showed in 71,72
meeting the changing environment.” Identify the feature of business environment.
1. Dynamic
2. Interrelatedness
3. Uncertainty
4. Relativity
25. “It was the only company in New York which was selling those products.” Identify 71,72
the importance of business environment highlighted in this statement.
1. It helps to identify threats and early warning signals.
2. It helps to identify opportunities and getting first mover advantage.
3. It helps in tapping useful resources.
4. It helps in coping up with rapid changes
 Answer Key
S No.
1. 3.Relativity
2. 2. Social
3. 4. Social
4 4 It helps in coping up with rapid changes
5 3. It helps in tapping useful resources.
6 4. Economic
7 1. Legal
8 4. Economic
9 3 Technological
10 3. Demonetisation
11 2. It helps in improving performance
12 1. Political
13 1. A-III, B-I, C-IV, D-II
14 4. A-I, B-III, C-II, D-IV
15 3.A-III, B-IV, C-I, D-II
16 1. A, B and D only
17 3.A, B and C only
18 1. A, B and D only
19 1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion
(A)
20 1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion
(A)
21 3.Complexity
22 2. Relativity
23. 4. Interrelatedness
24 1. Dynamic
25. 2. It helps to identify opportunities and getting first mover advantage.
 COMMON UNIVERSITY ENTRANCE TEST (2023-24)
BUSINESS STUDIES
CHAPTER-4 PLANNING

Question Page No. of

S No. NCERT
1. “Each alternative course of action has many variables which have to be weighed 100
against each other.” Identify the step of planning function of management
highlighted in the given statement.
1. Setting objectives
2. Developing premises
3. Identifying alternative courses of action
4. Evaluating alternative courses
2. ___________ is a process of decision making. 92
1. Planning
2. Organising
3. Directing
4. Controlling
3. “Since planning is the first function of management, new ideas can take the shape 94
of concrete plans.” Identify the point of importance of planning highlighted in the
given statement.
1. Planning reduces the risk of uncertainity
2. Planning promotes innovative ideas
3. Planning provides direction
4. Planning facilitates decision making
4. Which is the base material upon which plans are to be drawn? 100
1. Objectives
2. Premises
3. Alternatives
4. Implementation
5. Which step in the process of Planning function of management involves weighing 100
pros and cons of each alternative?
1. Developing premises
2. Identifying alternative courses of action
3. Evaluating alternative courses
4. Selecting an alternative.
6. A plan is framed, implemented and is followed by another plan and so on. 96
Identify the feature/ characteristic of planning highlighted in the above statement.
1. Planning is continuous
2. Planning is futuristic
3. Planning is pervasive
4. Planning involves decision making
7. Which of the following is not a limitation of planning? 97
1. It leads to rigidity
2. It reduces creativity
3. It is futuristic
4. It is time consuming
8. Planning is closely connected with _________ and _________. 94
1. Responsibility and accountability
 2. Delegation and decentralisation
3. Stability and security
4. Creativity and innovation
9. A Toy manufacturing company wants to become a market leader. For this purpose 101
the manager follows an activity with certain logical steps. The first step suggested
by him is to increase profits by at least 30% in the next quarter. What will be the
last step of the activity being followed by the manager?
1. Follow up action
2. Identifying alternative courses of action
3. Setting objectives
4. Evaluating alternative courses of action.
10. Planning is an intellectual activity of thinking rather than doing. Which feature of 96
planning is highlighted in the given statement?
1. Planning focuses on achieving objectives
2. Planning is futuristic
3. Planning involves decision making
4. Planning is a mental exercise
11. Planning establishes standard for: 94
1. Organising
2. Staffing
3. Directing
4. Controlling
12. Which managerial action reflects that a certain action must or must not be taken? 102
1. Policy
2. Programme
3. Rule
4. Objectives

13. Match the various stages of ‘planning process’ in list I with their respective 100
statements in list II
List I List II
A. Selecting an alternative I. This is the point of real decision
making.
B. Evaluating alternative courses of II. At this stage, pros and cons of
action each alternative is to be analysed.
C. Setting objectives III. Assumptions are the base
material upon which plans are to
be drawn.
D. Developing premises IV. It is the first and foremost step of
planning process.

Choose the correct answer from the options given below:

1. A- IV, B- II, C-III, D- I
2. A-IV, B-II, C-I, D-III
3. A-I, B-III, C-II, D-IV
4. A-I, B-II, C-IV, D-III
14. Match the ‘Importance of planning’ in list I with their respective statements of 94
list II
List I List II
 A. Planning provides direction I. Planning shows the ways to deal
with changes.
B. Planning establishes standard for II. Planning helps in avoiding
controlling confusions and
misunderstanding.
C. Planning reduces risk of III. Planning clarifies ‘how work is to
uncertainty be done.’
D. Planning reduces overlapping IV. Planning provides the basis for
and wasteful activities controlling.

Choose the correct answer from the options given below:

1. A- I, B- II, C-III, D- IV
2. A-III, B-IV, C-I, D-II
3. A-III, B-II, C-I, D-IV
4. A-I, B-III, C-II, D-IV

15. Match the limitations of planning in list I with their respective statements in list II 97
List I List II
A. Planning leads to rigidity I. Usually managers have a
tendency to rely on previously
tried and tested successful plans
B. Planning reduces creativity II. Plans are drawn by the top
management and rest of the
members just implement them.
C. Planning does not guarantee III. Detailed plans require scientific
success calculations to ascertain facts and
figures
D. Planning involves huge costs IV. Managers are not in a position to
change planning.

Choose the correct answer from the options given below:

1. A- IV, B-II, C-I, D- III
2. A-II, B-III, C-I, D-IV
3. A-I, B-III, C-IV, D-II
4. A-III, B-II, C-I, D-IV

16. Which of the following are the limitations of planning? 97

A. Planning is futuristic
B. Planning reduces creativity
C. Planning does not guarantee success
D. Planning leads to rigidity
Choose the correct answer from the options given below:
1. A, B and D only
2. A, C and D only
3. B, C and D only
4. A, B and C only

17. Which of the following are the significance of planning? 93

A. Facilitates decision making
 B. Reduces risks
C. Promotes innovative ideas
D. Mental exercise
Choose the correct answer from the options given below:
1. A, B and C only
2. A, B and D only
3. B, C and D only
4. A, C and D only

18. Which of the following are the various kinds of plans? 102
A. Procedure
B. Objective
C. Premises
D. Strategy
Choose the correct answer from the options given below:
1. A, B and D only
2. A, B and C only
3. B, C and D only
4. A, C and D only

19 The correct sequence involved in the planning process is 99

A. Implementing the plan
B. Identifying alternative courses of action
C. Selecting the alternative
D. Developing premises
E. Evaluating the alternative courses of action
Choose the correct answer from the following options given below:
1. A, C,E,D,B
2. A,B,C,D,E
3. D,B,E,C,A
4. C,D,E,A,B

20 Read the following statements: Assertion and Reason. 94

Choose one of the correct alternatives given below:
Assertion (A): Planning helps in avoiding confusion and misunderstanding.
Reason (R): Planning ensures clarity in thoughts and action, work is carried on
smoothly without interruptions.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

21 Read the following statements: Assertion and Reason. 100

Choose one of the correct alternatives given below:
Assertion (A): There may be many ways to achieve the objectives
Reason (R): If the project is important, then only one alternate should be
 generated to avoid wastage of time and money
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

Akhilesh started to manufacture electric gyser in his initial stages of business. He

sets the target of earning 20% profit on sales in the first year. He was very much
concerned about the future prospects of the business, which were uncertain. For
this, he gathered information from the potential market and analysed that the
demand for Gas Gysers is increasing day by day. He used this information as the
base for future planning. On the basis of the gathered information, he called a
meeting in the following week to find new methods to achieve the objective.
22 Identify the function of management involved in the above case: 92
1. Planning
2. Controlling
3. Organising
4. Directing
23 “……. gathered information from the potential market and analyzed that the 100
demand for Gas Gysers is increasing day by day.” Identify the step involved in
the function of management.
1. Setting objectives
2. Developing premises
3. Identifying alternative courses of action
4. Evaluating alternative courses
24 Identify the feature of the function of management highlighted in the above case. 95
1. Planning is continuous
2. Planning is pervasive
3. Planning involves decision making
4. Planning is primary function of management.
25 Identify the next step which have been followed by Akhilesh that are related to 100
the process of the function of management.
1. Setting objectives
2. Developing premises
3. Identifying alternative courses of action
4. Evaluating alternative courses

Answer Key
S No. Answer
1. 4. Evaluating alternative courses
2. 1. Planning
3. 2. Planning promotes innovative ideas
4. 2. Premises
5. 3. Evaluating alternative courses
6. 1.Planning is continuous
7. 3. It is Futuristic
8. 4. Creativity and innovation
9. 1. Follow up action
10. 4.Planning is a mental exercise
11. 4. Controlling
12. 3. Rule
13. 4. A-I, B-II, C-IV, D-III
14. 2 A-III, B-IV, C-I, D-II
15. 1A- IV, B-II, C-I, D- III
16. 3 B, C and D only
17. 1. A, B and C only
18. 1.A,B and D only
19. 3. D,B,E,C,A
20. 1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion(A)
21 3. Assertion (A) is true but Reason(R) is false
22 1. Planning
23 3 Identifying alternative courses of action
24 3 Planning involves decision making
25 4 Evaluating alternative courses of action
 Business Studies
CH 5: Organising

Question Page No. of

S No. NCERT
1. Name the process which co-ordinates human efforts, assembles resources and 111
integrates both into a unified whole to be utilised for achieving specified
objectives.
1. Management
2. Planning
3. Organising
4. Directing
2. As the span of management increases in an organisation, the number of levels of 113-114
management in the organisation
1. Increases
2. Decreases
3. Remains unaffected
4. Increases and decreases both
3. Uranus Limited is a company dealing in metal products. The work is mainly 115-116
divided into functions including production, purchase, marketing, accounts and
personnel. Identify the type of organisational structure followed by the
organisation.
1. Functional structure
2. Relational structure
3. Divisional structure
4. Distribution structure
4. Rajat and Sunita work as business development managers in a water softener 115-116
company. Last week when they were travelling together for a business
assignment, Rajat shared with Sunita a trade secret about the company. Identify
the type of organisation being described in the above statement.
1. Formal Organisation
2. Informal organisation
3. Span of management
4. Elite management
5. It is defined as the framework within which managerial and operating tasks are 114-115
performed.
1. Span of management
2. Organisational structure
3. Informal organisation
4. Networking structure
6. Identify the type of organisational structure which facilitates occupational 115-116
specialisation.
1. Functional structure
2. Horizontal structure
3. Network structure
4. Divisional structure
7. It refers to the number of subordinates that can be effectively managed by a 114-115
superior.
1. Organisational structure
 2. Informal organisation
3. Span of management
4. None of the above
8. Identify the type of organisational structure which makes training of employees 116-117
easier, as the focus is only on a limited range of skills.
1. Network structure
2. Divisional structure
3. Functional structure
4. Matrix structure
9. Rishabh has joined as a Creative Head in an entertainment company. He always 112-113
ensures that work can be performed smoothly in an organisation if there is clarity
in role and everyone knows who to meet to take orders and submit work. Identify
the related step in organising process being mentioned in the above lines.
1. Identification and division of work
2. Departmentalisation
3. Assignment of duties
4. Establishing reporting relationships
10. Indigo Limited has a staff of 300 people which is grouped into different 115-116
departments. The organisational structure depicts that 100 people work in
Production department, 150 in Finance department, 20 in Technology department
and 30 in Human Resource department. Identify the type of organisational
structure being followed by the company.
1. Functional structure
2. Divisional structure
3. Informal structure
4. Forward structure
11. Match the list I with list II 120-121
List I List II
A. Can be delegated I. Accountability
B. Cannot be entirely delegated II. Authority
C. Cannot be delegated at all III. Divisional structure
D. Leads to product specialisation IV. Responsibility
Choose the correct answer from the options given below:
1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-II, B-IV, C-I, D-III
12. Match the list I with list II
List I List II
A. Leads to specialisation I. Delegation
B. Functional and divisional II. Step of organising process
C. It has a narrow scope III. Importance of organisation
D. Establishing reporting IV. Types of organisation structure.
relationship
Choose the correct answer from the options given below:
1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
13. Match the list I with list II
List I List II
A. Difficult to fix responsibility on a I. Formal organisation
department
B. Product Specialisation II. Divisional Structure
C. Responsibility is derived from III. Authority
D. It is rigid IV. Functional structure
Choose the correct answer from the options given below:
1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
14. Which of the following is not a feature of functional structure? 116-117
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsibility for performance.
(d) It is an economical structure to maintain.
Choose the correct answer from the options given below:
1. A, B and D only
2. C and D only
3. B and C only
4. B, C and D only
15. Which of the following is not a merit of functional structure? 116-117
(a) Promotes expansion and growth
(b) It makes training of employees easier, as the focus is only on a limited range
of skills.
(c) It ensures that different products get due attention.
(d) It leads to functional specialisation.
Choose the correct answer from the options given below:
1. A and D only
2. C and D only
3. B and D only
4. A and C only
16. Which of the following is not TRUE in context to Delegation? 125-126
(a) Effective management.
(b) Basis of management hierarchy.
(c) Quick decision making.
(d) Development of managerial talent for the future.
Choose the correct answer from the options given below:
1. A and D only
2. B and D only
3. C and D only
4. B and C only
17. The correct sequence involved in the process of organising. 112-113
A. Grouping similar activities together.
B. Each individual should know who he has to take orders from and to whom
he is accountable.
C. Work is assigned to various employees
D. Work is divided into small manageable activities
Choose the correct answer from the following options given below:
 1. A, C,D,B
2. A,B,C,D
3. B,C,D,A
4. D,A,C,B
18. The correct sequence involved of the organisation process on the basis of the 112-113
objectives given below of each step.
A. A proper match is made between the nature of a job and the ability of an
individual.
B. Helps in reducing duplication of work and reduces the burden of work on
an employee.
C. It creates a hierarchal structure and helps in coordination among various
departments.
D. People working on similar activities are grouped together to facilitate
specialisation.
Choose the correct answer from the following options given below:
1. B, D, A, C
2. D, B, A, C
3. B, C, D, A
4. C, D, A, B
19. Which of the following is not an element of delegation? 125-126
(a) Responsibility
(b) Activity
(c) Accountability
(d) Decentralisation
Choose the correct answer from the options given below:
1. B and D only
2. A and D only
3. B and C only
4. C and D only
20. Read the following statements: Assertion and Reason. 115-116
Choose one of the correct alternatives given below:
Assertion (A): The span of management, to a large extent gives shape to the
organisational structure.
Reason (R): Span of management refers to the number of subordinates that can be
effectively managed by a superior.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
Arun iS the CEO of ‘Beauty India’, the company has been associated with the
manufacturing and sale of Fashion products since 1960. An important difference
between Beauty India and most other companies is that instead of operating as one
large corporation it operates as 180 smaller companies each focused on a specific
product and area, implying selective dispersal of authority, recognising the
decision makers need for autonomy, as decision making authority is pushed down
the chain of command. It enables the company to maintain short lines of
communication with customers and employees, and accelerate the development of
 talent.
21. Identify the philosophy that is being followed by Beauty India through which it is
dividing the decision making responsibilities among hierarchical levels.
1. Delegation of authority
2. Decentralization of authority
3. Division of work
4. Span of management.
22. ‘Why is there a need to apply the philosophy being followed by Beauty India,
with caution?
1. As it can cause a delay in communication
2. As it can cause disintegration of the organisation
3. As it can increase the workload of the top management
4. As it can reduce the chances of growth of the firm.
23. The application of the philosophy discussed above can foster a sense of
competition amongst the departments, which in turn will help the firm in the
following manner:
1. Facilitates growth
2. Better control
3. Relief to top management
4. Quick decision making.
24. Quote the line from above which highlights the importance of the philosophy
towards providing management education to employees.
1. “Maintain short lines of communication
2. ‘Accelerate the development of talent’
3. ‘Selective dispersal of authority
4. ‘Recognises decision makers need for autonomy’
25. As “The decision making authority is pushed down the chain of command” at
Beauty India enterprises, it provides the benefit of quick decision making to the
organisation because:
1. There is no requirement for approval from many levels
2. Organisation is able to generate more returns
3. There are innovative performance systems
4. It's a means of management education.

Answer Key
S No. Answer
1. 3
2. 2
3. 1
4. 2
5. 2
6. 1
7. 3
8. 3
9. 4
10. 1
11. 4
12. 3
13. 2
14. 4
15. 4
16. 3
17. 4
18. 1
19. 1
20. 1
21. 2
22. 2
23. 1
24. 2
25. 1
 COMMON UNIVERSITY ENTRANCE TEST (2023-24)
BUSINESS STUDIES
CHAPTER-6 STAFFING

Question Page No. of

S No. NCERT
1. “It becomes necessary for all organisations to address career related issues and 140
promotional avenues for their employees. Managers must encourage the
employees to grow and realise their full potential.”
Which of the following concept is highlighted above?
1. Training and development
2. Promotion and career planning
3. Directing
4. Motivation
2. In different organisations, there are different ways to prepare pay plans for their 145
employees depending on the net worth of the job. Basically the price of the job
needs to be determined. One of the step of one of the functions of management is
highlighted in the above statement. Identify the step.
1. Placement and orientation
2. Compensation
3. Promotion and Career planning
4. Performance Appraisal
3. Individual’s potential for learning new skills is measured by: 155
1. Intelligence Test
2. Aptitiude Test
3. Interest Test
4. Personality Test
4. Aastha Ltd a cellular network company, approached Quick Consultants Pvt. Ltd 160
for recruitment of Top Level Executive placements. Quick Consultants Pvt. Ltd
advertised the jobs on www.naukri.com on behalf of Aastha Ltd. The recruitment
method followed by Aastha Ltd is:
1. Advertisement
2. Management Consultants
3. Placement agencies
4. Web publishing
5. Job enrichment is concerned with: 145
1. Designing jobs with greater variety of work content
2. Involving employees in decision making
3. Promoting employees
4. Empowering employees by giving more autonomy
6. Ms Jayshree recently completed her post graduation diploma in Human Resource 145
Management. A large steel manufacturing company employs 800 persons
appointed her as its human resource manager. Ms. Jayshree has been given
complete charge of the company’s Human Resource Department.
The company has an expansion plan in hand which may require another 200
persons for various types of additional requirements.
Identify the step of one of the functions of management involved in the above
case
1. Recruitment
2. Estimating Manpower requirements
3. Training
4. Selection
7. The suitable method of external recruitment for getting unskilled labour is: 159
1. Recommendation of present employees
2. Employment exchange
3. Advertisement
4. Labour contractors
8. Which of the following is not a step in ‘selection’ process? 157
1. Performance appraisal
2. Selection decision
3. Job offer
4. Reference and background checks
9. Orient Ltd expanding its business operations. All the department heads were 148
asked to fill up “ Manpower requisition form” and estimated the annual
requirement of skilled and unskilled workers”
All the departmental heads submitted the requisition forms to HR Manager. HR
Manager complied all such requisition form as:
Requirement of skilled labour- 90
Requirement of unskilled labour-239
Which of the concept of staffing has been discussed in the above case study?
1. Workload Analysis
2. Performance appraisal
3. Career Planning
4. Workforce Analysis
10. In different organisations, there are different ways to prepare pay plans for their 148
employees depending on the net worth of job. Basically the price of the job needs
to be determined. One of the step of one of the functions of management is
highlighted in the above para. Identify the step.
1. Promotion and career planning
2. Compensation
3. Performance appraisal
4. Training and development
11. “ Our assets walk out of door each evening. We have to make sure that they come 140
back next morning.”- Narayana Murthy, CEO of Infosys. Identify the concept of
management highlighted in the statement.
1. Planning
2. Organising
3. Staffing
4. Directing

12. Bhagwati Enterprises is a company engaged in the marketing of air- conditioners 148
of a famous brand. The company has a functional structure with the four main
functions- Purchases, Sales, Finance and Staffing. As the demand for the product
grew, the company decided to recruit more employees. Identify the concept
which will help the Human resource manager to find out the number and type of
personnel available so that he could decide and recruit the number of persons for
each department.
1. Workload Analysis
2. Performance appraisal
3. Career Planning
4. Workforce Analysis
13. Match the list I with list II 148,159
 List I List II
A. Internal recruitment I. Overall growth of the employees
B. Training II. Provides wider choice
C. External recruitment III. Refers to a process of increasing
the skills for doing a particular
job
D. Development IV. Provides limited choice

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-III, C-II, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
14. Match the list I with list II 148
List I List II
A. Recruitment I. Identifying and attracting
prospective employees
B. Training II. Assessment, evaluation and final
match
C. Selection III. Acquainting and skill
development

Choose the correct answer from the options given below:

1. A- III, B- I, C-II
2. A-II, B-III, C-I
3. A-III, B-II, C-I
4. A-I, B-III, C-II
15 Match the list I with list II 145,161
List I List II
A. Workload Analysis I. It shows the number and types of
human resources available with
the organisation.
B. Casual Callers II. Under this method of
recruitment, the organisation
keep a database of unsolicited
applicants.
C. Workforce analysis III. It involves determining number
and types of human resources to
perform various jobs
D. Apprenticeship Programmes IV. Trainee works under the
guidance of master worker

Choose the correct answer from the options given below:

1. A- III, B- II, C-I, D- IV
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
16 Which of the following are tests for selection of employees 155,156
A. Trade test
 B. Medical test
C. Interest test
D. Intelligence test
Choose the correct answer from the options given below:
1. A, B and D only
2. A, B and C only
3. B, C and D only
4. A, C and D only
17. Which of the following are steps in staffing process? 144
A. Recruitment
B. Placement and orientation
C. Training and development
D. Promotion
Choose the correct answer from the options given below:
1. A, B and C only
2. A, C and D only
3. B, C and D only
4. A, B and D only
18. Arrange the following steps involved in the selection process in correct sequence 154
and choose the correct alternative:
A. Job offer
B. Medical examination
C. Reference and background checking
D. Employment interview
Choose the correct answer from the following options given below:
1. C,B,D,A
2. A,B,C,D
3. D,C,B,A
4. D,B,C,A
19. The correct sequence involved in the staffing process 143
A. Placement and orientation
B. Recruitment
C. Training and Development
D. Estimating manpower requirement
E. Selection
Choose the correct answer from the following options given below:
1. A, C,E,D,B
2. A,B,C,D,E
3. B,C,D,E,A
4. D,B,E,A,C
20. Read the following statements: Assertion and Reason. 140
Choose one of the correct alternatives given below:
Assertion (A): It is only in case of new enterprise that the staffing function
follows the planning and organising function.
Reason (R): In an existing enterprises, staffing is a continuous process because
new jobs may be created and some of the existing employees may leave the
organisation.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
 2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
21. Read the following statements: Assertion and Reason. 141
Choose one of the correct alternatives given below:
Assertion (A): Staffing function is pervasive
Reason (R): Staffing function is required only at Top level
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
Abhinav, the Marketing Head, Raman, the Assistant Manager and Jyoti the
Human Resource Manager of Soft tech Ltd decided to leave the company.
CEO of the company called Jyoti, the Human Resource Manager and requested
her to fill up the vacancies before leaving the organisation. Informing that her
subordinate Ms Alka Pandit was very competent and trustworthy, Jyoti suggested
if she could be moved up in the hierarchy, she would do the needful. The Chief
executive agreed for the same. Miss Alka Pandit contacted ‘Keith Recruiters’ who
advertised for the postfor ‘Senor Enterprises Ltd’. They were able to recruit a
suitable candidate for the company. Raman’s vacancy was filled up by screening
the data base of unsolicited applications lying in the office.
22. Identify the step of the function of management identified as discussed above. 140
1. Recruitment
2. Selection
3. Placement and Orientation
4. Training and Development
23. State the next step to be performed immediately after the step mentioned in Ques 145
22
1. Performance appraisal
2. Estimating manpower requirement
3. Selection
4. Placement and orientation
24. ‘Informing that her subordinate Ms Alka Pandit was very competent and 147
trustworthy, Jyoti suggested if she could be moved up in the hierarchy, she would
do the needful.’ Name the External/ Internal source of recruitment used by ‘Senor
Enterprise Ltd.’ Highlighted above
1. Transfers
2. Promotions
3. Recommendations of employees
4. Campus recruitment
25. “Raman’s vacancy was filled up by screening the data base of unsolicited 151
applications lying in the office.” Name the internal/ external source of recruitment
used by ‘Senor Enterprise Ltd’ highlighted above.
1. Transfers
2. Web Publishing
3. Casual Callers
 4. Placement agencies

Answer Key
S No. Answer
1. 2. Promotion and career planning
2. 2 Compensation
3 2 Aptitude test
4 2 Management consultants
5 1 Designing jobs with greater variety of work content
6 2 Estimating manpower requirement
7 4 Labour contactors
8. 1 Performance appraisal
9. 1 Workload Analysis
10. 2. Compensation
11. 3. Staffing
12. 4. Workforce Analysis
13. 2 A-IV, B-III, C-II, D-I
14. 4 A-I, B-III, C-II
15. 1 A- III, B- II, C-I, D- IV
16. 4 A, C and D only
17. 1 A, B and C only
18. 4 D, B,C,A
19. 4 D, B,E,A,C
20. 1.Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion (A)
21. 3 Assertion (A) is true but Reason(R) is false
22. 1 Recruitment
23. 3 Selection
24. 2. Promotions
25. 3. Casual callers
 CLASS XII
BUSINESS STUDIES
DIRECTING

Question Page No. of

S No. NCERT
1. ‘It takes place throughout the life of the organisation irrespective of people 170
occupying managerial positions’. Which feature of Directing is highlighted here?
1. Initiates action
2. Flows from top to bottom
3. Is a continuous process
4. Takes place at every level of management

2. This is not an element of Directing. 173

1. Communication
2. Motivation
3. Selection
4. Supervision

3. This is an inner state that energises, activates or moves and directs behaviour 175
towards goals.
1. Motivation
2. Motive
3. Incentives
4. Motivator

4. ‘Any type of motivation do not have uniform effect on all the members’. Which 176
feature of Motivation is this?
1. Motivation can be positive or negative
2. Motivation is an internal feeling
3. Motivation produces goal related behaviour
4. Motivation is a complex process

5. The highest level of need in the Need Hierarchy theory of Maslow is: 179
1. Safety need
2. Self actualisation need
3. Esteem need
4. Physiological need

6. Identify the financial incentive which is offered over and above the wage/salary to 181
the employees.
1. Perquisites
2. Pay and allowances
3. Bonus
4. Co-Partnership

7. Which type of non-financial incentive is concerned with designing jobs that 183
require higher degree of knowledge and content?
1. Employee empowerment
 2. Job enrichment
3. Employee participation
4. Job security

8. Name the leadership style under which the followers are given high degree of 187
independence to formulate their own objectives and ways to achieve them.
1. Leissez Faire
2. Autocratic
3. Democratic
4. Participative

9. The path through which the encoded message is transmitted to receiver is known 189
as:
1. Encoding
2. Message
3. Decoding
4. Media

10. This system of communication is generally referred to as the ‘grapevine’. 192

1. Lateral communication
2. Informal communication
3. Normal communication
4. Formal communication

11. Match the list I with list II 194-196

List I List II
A. Unclarified assumptions I. Organisational barriers
B. Distrust II. Personal barriers
C. Rules and regulations III. Semantic barriers
D. Lack of proper incentives IV. Psychological barriers

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV

12. Match the list I with list II 183,184

List I List II
A. More powers to employees I. Status
B. Show of appreciation II. Employee recognition
C. Sound promotion policy III. Career advancement
D. Ranking of positions in the IV. Employee empowerment
organisation
Choose the correct answer from the options given below:
1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
13. Match the list I with list II 182,183
List I List II
A. Perquisites I. Car allowance
B. Retirement benefits II. Stability about work
C. Job security III. Provident Fund
D. Co-partnership IV. Shares at lower price

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV

14. Which of the following is/are true with respect to Formal Communication? 191
A. It flows through official channels in the organisation.
B. It can be vertical or horizontal.
C. Vertical communication flows only downwards.
D. Horizontal communication takes place between superior and subordinate.
Choose the correct answer from the options given below:
1. A, B and D only
2. C and D only
3. A and B only
4. B, C and D only

15. Which of the following is/are not a type of Organisational barrier to 196
communication?
A. Fear of challenge to authority
B. Organisational facilities
C. Unwillingness to communicate
D. Status
Choose the correct answer from the options given below:
1. B and D only
2. C and D only
3. B and C only
4. A and C only

16. The correct sequence involved in the Need Hierarchy Theory of Maslow is: 180
A. Esteem needs
B. Self Actualisation needs
C. Security needs
D. Physiological needs
E. Affiliation needs
Choose the correct answer from the following options given below:
1. A, C,E,D,B
2. A,B,C,D,E
3. B,C,D,E,A
4. D,C,E,A,B
17. Arrange the following elements of the communication process in the correct 188,189
sequence.
A. Message
B. Decoding
C. Encoding
D. Sender
E. Media
Choose the correct answer from the following options given below:
1. D, A,C,E,B
2. A,B,C,D,E
3. B,C,D,E,A
4. C,D,E,A,B

18. Read the following statements: Assertion and Reason. 186

Choose one of the correct alternatives given below:
Assertion (A): Leadership indicates the ability of the leader to influence others.
Reason (R): Depending on the use of authority, there are three basic styles of
leadership.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
19. Read the following statements: Assertion and Reason. 197
Choose one of the correct alternatives given below:
Assertion (A): Organisations should adopt suitable measures to overcome
communication barriers.
Reason (R): The manager should not consult others before communicating.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
20. Read the following statements: Assertion and Reason. 193
Choose one of the correct alternatives given below:
Assertion (A): An intelligent manager should make use of positive aspects of
informal channels.
Reason (R): Informal channels carry information rapidly.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
 Case Study:
Kanan Kumar is the Chief Executive Officer of KK Networking Ltd., an IT
support service company in Gurgaon. He is of the opinion that the employees
should be taken care of for the betterment of the company. He always discusses
with his subordinates and takes their opinions before making any major decisions.
For a new project to be completed, Kanan promoted his assistant managers Pawan
and Pritha to managerial positions. He instructed the managers to send him reports
about the progress of work on a regular basis. Pawan, the Process Manager,
invited a specialist in the field of Coding to train the employees. Since the
specialist used technical jargon, the employees could not understand many
aspects.
Pawan discussed this problem with the Human Resources Manager, Pritha. As per
her suggestion, a translator was appointed who could convey the messages
properly to the employees. The project was completed on time and Kanan
appreciated the work of his managers with cash prizes and trophies.
21. ‘He always discusses with his subordinates and takes their opinions before making
any major decisions.’ Which style of leadership is this?
1. Autocratic
2. Free rein
3. Democratic
4. Dogmatic
22. ‘Kanan promoted his assistant managers Pawan and Pritha to managerial
positions.’ Which need is being satisfied here?
1. Affiliation need
2. Self-actualisation need
3. Security need
4. Esteem need

23. ‘He instructed the managers to send him reports about the progress of work on a
regular basis.’ Which type of communication is highlighted here?
1. Upward
2. Downward
3. Horizontal
4. Informal
24. Under which group of barriers to communication does Technical Jargon come?
1. Personal
2. Psychological
3. Semantic
4. Organisational
25. ‘Kanan appreciated the work of his managers with cash prizes and trophies.’
Which incentive is this?
1. Pay and allowances
2. Employee participation
3. Employee recognition
4. Bonus
 Answer Key
S No. Answer
1. 3.Is a continuous process

2. 3.Selection

3. 2.Motive

4. 4.Motivation is a complex process

5. 2.Self actualisation need

6. 3.Bonus

7. 2.Job enrichment

8. 1.Leissez Faire

9. 4.Media

10. 2.Informal communication

11. 3. A-III, B-IV, C-I, D-II

12. 2. A-IV, B-II, C-III, D-I

13. 4. A-I, B-III, C-II, D-IV

14. 3.A and B only

15. 4.A and C only

16. 4. D,C,E,A,B

17. 1. D, A,C,E,B

18. 2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of Assertion (A)

19. 3. Assertion (A) is true but Reason(R) is false

20. 1.Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion (A)

21. 3.Democratic

22. 4.Esteem need

23. 1.Upward
24. 3.Semantic

25. 3.Employee Recognition

 Business Studies
Controlling and Consumer protection

Question Page
S No. of
No. NCERT
1. A State Commission has the jurisdiction to entertain complaints were the value of goods and 300
services paid as consideration:
1. Exceeds 1 crore but does not exceed 10 crores.
2. Exceeds 20 lakhs but does not exceed 1 crore.
3. Exceeds 50 lakhs but does not exceed 1 crore.
4. Exceeds 20 lakhs but does not exceed 50 lakhs.

2. In case the consumer is not satisfied by the order passed by the District Commission he an 300
appeal against such an order to the State Commission on the grounds of facts or law within a
period of:
1. 10 days.
2. 45 days.
3. 30 days.
4. 35 days.

3. In case a consumer is not satisfied with the order passed in the State Commission, he can 300
further make an appeal in the National Commission within a time period of:
1. 10 days.
2. 20 days.
3. 30 days.
4. 45 days.

4. Consumer Protection Act provides relief to customers such as replacement of product, 295,296
removal of defect in the product, compensation for any loss or injury suffered by the
consumer.
Which consumer right has been highlighted in this statement.
1. Right to Safety.
2. Right to Seek Redressal.
3. Right to be Informed.
4. Right to be Assured.

5. Which of the following statements is false about responsibilities of a consumer. 296

1. Consumer must follow the instructions and use the product safely.
2. Consumer must ask for cash memo, i.e., proof of purchase.
3. A consumer should not form consumer societies which play an active role in
educating consumers and safeguarding their interests.
4. A consumer must file a complaint in a consumer court even if the amount of loss is
small.

6. Most of the reputed firms have set up consumer service and grievance cells to listen to 295
consumer's complaints and take appropriate steps to redress their grievance. Which
consumer right has been highlighted in this statement?
1. Right to be Heard.
 2. Right to Seek Redressal.
3. Right to be Informed.
4. Right to Consumer Education.

7. In an organisation the manager is more concerned about increase in marketing cost by 3% as 207
compared to increase in courier expenses by 10%. The control technique being used by the
manager is:
1. Critical Point Control
2. Corrective Action
3. Management by Exception
4. Analysing Deviations

8. Which of the following is an example of quantitative standards? 206

1. Relations with customers
2. Improving motivation level of employees
3. Improving goodwill
4. Units to be produced

9. Which of the following is not a standard to gauge performance of marketing department? 207
1. Sales volume
2. Sales expense
3. Cost of production
4. Sales person’s performance

10. Which of the following is related to the finance and accounting standards? 207
1. Sales person’s performance
2. Capital expenditure
3. Labour turnover
4. Advertising expenditures

11. Which of the following statement is true regarding rights of consumers. 295,296
a) The consumer has a right to file a complaint in case of dissatisfaction with a good or
a service.
b) The consumer has restricted to access limited variety of products.
c) The consumer has a right to get relief against unfair trade practice.
d) The consumer has a right to be a well-informed consumer throughout life.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and A only
3. B, C and A only
4. B, C and D only

12. Consumers provide a swift redressal of their grievances with regard to: 290,291
A. Sale of duplicate goods.
B. Sale of sub-standard goods
C. Supply of superior services
D. Supplying of defective goods.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and A only
 3. B, C and A only
4. B, C and D only

13. Which of the following reliefs available to the consumers under District or State or National 301
Commission.
A. To remove the defect in goods or deficiency in service
B. To replace the defective product with a new one.
C. To pay nonpunitive damages in appropriate circumstances.
D. Not to offer hazardous goods for sale .
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and A only
3. B, C and A only
4. B, C and D only

14. Which of the following is not the importance of controlling. 203,204

A. Resistance from employees
B. Difficulty in setting quantitative standards
C. Accomplishing organisational goals
D. Making efficient use of resources
E. Facilitating coordination in action

Choose the correct answer from the options given below:

1. A, B and D only
2. C, D and E only
3. B, C and E only
4. B, C and D only

15. Match the Standards used in Functional Areas to Gauge Performance: 207
List I List II
A. Production I. Sales expense
B. Finance and Accounting II. Labour turnover
C. Marketing III. Quantity
D. Human Resource Management IV. Flow of capital
Choose the correct answer from the options given below:
1. A-II, B- I, C-IV, D- III
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-II, B-III, C-IV, D-I

16 Match the process of controlling from the following 206,207

List I List II
A. Setting performance standards I. Performance should measure in
objective and reliable manner.

B. Measurement of Actual II. Standards are criteria against

performance which actual performance would
be measured.
 C. Analysing deviations III. When deviations go beyond
permissible limit.

D. Taking corrective actions IV. Critical point control and

management by exception are
used.

Choose the correct answer from the options given below:

1. A-II, B- I, C-IV, D- III
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-II, B-III, C-IV, D-I

17. Match the correct importance of controlling with its description. 202
List I List II
A. Making efficient use of resources I. They will get good appreciated, if
they do what is expected from
them.

B. Ensuring order and discipline II. There should be reduction in

wastage and spoilage of resources.

C. Accomplishing organizational III. It helps in minimizing the

goals dishonest

D. Improving employee’s motivation IV. All the efforts should be directed

towards one goal.

Choose the correct answer from the options given below:

1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-II, B-III, C-IV, D-I

18. Arrange the steps involved in the controlling process in correct sequence and choose the 206,207
correct alternative:
(i) Measurement of actual performance
(ii) Setting performance standards
(iii)Comparison of actual performance with standards
(iv)Taking corrective action
(v) Analysing deviations
Choose the correct option from the following:
1. (ii), (i), (iii), (v), (iv)
2. (ii), (i), (iii), (iv), (v)
3. (i), (ii), (iii), (v), (iv)
4. (i), (ii), (iii), (iv), (v)
 19. Read the following statements: Assertion and Reason. 295
Choose one of the correct alternatives given below:
Assertion(A): The consumer has a right to have complete information about the product
he/she intends to buy, including its ingredients, date of manufacture, price, quantity etc.
Reasoning: The legal framework in India requires the manufacturers to provide such
information on the package and label of the product.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation
of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

20. Read the following statements: Assertion and Reason. 207

Choose one of the correct alternatives given below:
Assertion(A): No corrective action is required when the deviations are within acceptable
limits.
Reason (R): In case the deviation cannot be corrected through managerial action, the
standards may have to be revised.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation
of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

Case Study
21 Mr. Rohit is managing both sales and production departments of his own firm. At the 202
beginning of this year, he determined the standards of both the departments. He fixed the
objective of sale of 5,00,000 units for sales department. At the time of fixing this objective,
he noticed that the normal production capacity of the production department is 4,00,000
units. It was decided that 1,00,000 units of goods would be purchased from another vendor
at wholesale price. In this way Rohit was able to maintain balance between both the
departments. Which importance of controlling is highlighted in this case?
1. Facilitating co-ordination in action
2. Ensuring order and discipline
3. Making efficient use of resources
4. Improving employee motivation

22 Sugandha Limited is a small-scale business unit manufacturing incense sticks. The standard 202
output for a worker engaged in packaging of incense sticks is 50 units per day. But it is
noticed that all the workers are able to perform at a much higher level as compared to the
standard set. Therefore, the supervisor decided to revise the standards. Which importance of
controlling is highlighted in the given case?
1. Ensuring order and discipline
2. Making efficient use of resources
3. Judging accuracy of standards
 4. Improving employee motivation

23. Rajni is pure vegetarian. She went to a snack outlet and asked for "Vegetable French fries". 295,296
Later on, she found out that there was some non-vegetarian content in the packet that was
served to her. Neither the packing nor the label displayed that the product had non
vegetarian content in the product.
Which consumer right of Rajni has been violated?
1. Right to be assured.
2. Right to be heard.
3. Right to seek redressal.
4. Right to be informed.

24. Amit bought a packet of chips from a local grocery store and found that the ingredients 295,296
given on the label were not legible. He complained about it to the company. The company
gave a written apology and withdrew the existing packets from the market and new packets
with legible labels were made available in the market.
Identify the consumer right exercised by Amit.
1. Right to be heard.
2. Right to seek redressal.
3. Right to be informed.
4. Right to consumer education.

25. Novelty Sweets has been a renowned name for quality sweets since 1935. Mohit the owner 206
of Novelty Sweets was worried as the sales had declined during the last three months. When
enquired from the Sales Manager, the Sales Manager reported that there were some
complaints about the quality of sweets therefore Mohit ordered sample checking of sweets.
The step taken by Mohit that is related to one of the function of management is:

1. Setting Performance Standards

2. Measurement of Performance
3. Comparing Actual performance with Standards
4. Taking Corrective action.

Answer Key
S No. Answer
1. 1.Exceeds 1 crore but does not exceed 10 crores.
2. 2. 45 days
3. 3.30 days.
4. 2. Right to Seek Redressal
5. 3.A consumer should not form consumer societies which play an active role in educating consumers
and safeguarding their interests.
6. 1.Right to be Heard.
7. 1.Critical Point Control
8. 4.Units to be produced
9. 3.Cost of production
10. 2. Capital expenditure
11. 2) C, D and A only
12. 1) A, B and D only
13. 1) A, B and D only
14. 2. C, D and E only
15. 3.A-III, B-IV, C-I, D-II
16. 1.A-II, B- I, C-IV, D- III
17. 4.A-II, B-III, C-IV, D-I
18. 1. (ii), (i), (iii), (v), (iv)
19. 1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of Assertion (A)
20. 2.Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of Assertion (A)
21. 1.Facilitating co-ordination in action
22. 3.Judging accuracy of standards
23. 4. Right to be informed
24. 1.Right to be heard.
25. 2.Measurement of Performance
 Business Studies
CH 9: Financial Management

Question Page No. of

S No.
NCERT
1. The working capital requirement of a business is likely to be high when? 260-261
1. The nature of business is trading
2. Scale of operation of business is small
3. It is difficult to procure raw material
4. The rate of inflation is low
2. When does the earnings per share (EPS) rise with higher debt? 252-253
1. When the rate of return on investment is higher than the rate of interest.
2. When the rate of return on investment is lower than the rate of interest.
3. When the rate of interest is more than the rate of return.
4. When there is inflation in the market
3. As the financial leverage of a company increases, it leads to 252-253
1. A decline in the cost of funds but an increase in the financial risk
2. An increase in the cost of funds but a decline in the financial risk
3. Both an increase in the cost of funds and financial risk
4. Both a decline in the cost of funds and financial risk
4. There is more need of working capital in business where the demand is to be 260-261
seasonal. What is the cause behind this statement?
1. Capital remains stuck up for a long time in the raw material.
2. Capital remains stuck up for a long time in the banks.
3. More Machines are required.
4. More growth opportunities are available.
5. Kapil Limited is a company dealing in ready-to-eat food products. Over the years, 245-246
the earning potential of the company has gone up and it enjoys a good reputation.
The Financial Manager is confident of the fact that not just the earnings of the
current year, but of the future years are likely to be high. Identify the related factor
of dividend decision being described in the given lines.
1. Earnings
2. Stability of earnings
3. Stability of dividend
4. Growth prospects
6. A company must adhere to the provisions of the Companies Act while taking the 245-246
dividend decision. Identify the related factor of dividend decision being
mentioned in the above line.
1. Contractual constraints
2. Legal constraints
3. Access to capital market
4. Preferences of shareholders
7. Amber Limited has been experiencing a downfall in its popularity, due to growing 245-246
competition. Also the company doesn’t see any forthcoming viable business
expansion opportunities in the near future. So the management of the company
has decided to declare high dividends for the current financial year. Identify the
factor related to dividend decision being described above.
1. Cash flow position
2. Growth opportunities
 3. Stability of earnings
4. Stability of dividend
8. Gamble Limited is a company dealing in healthcare products. The company is 245-246
earning high profits but is short on cash, so it has decided to declare less dividends
in the current financial year. Identify the factor related to dividend decision being
described in the above lines.
1. Preference of shareholders
2. Earning
3. Cash flow position
4. Contractual constraints
9. Lalit, an experienced stock broker advised his client Prabhu to invest in the shares 245-246
of Blue Angel Limited, as the company has declared high dividends since an
increase in dividend is perceived as a good news and stock prices react positively
to it. Identify the related factor of dividend decision being described in the above
lines.
1. Tax rate
2. Growth prospects
3. Stock market reactions
4. Access to capital markets
10. Name the decision which affects both the profitability and the financial risk. 241-242
1. Financial planning decision
2. Capital budgeting decision
3. Capital structure decision
4. Working capital decisions
11. What will be the value of net working capital, if the value of current assets is 259
T50000 and the current liabilities is T35000
1. T50000
2. T35000
3. T15000
4. T85000
12. Match the list I with list II 241-250
List I List II
A. Extent of retained earnings in I. Financial Planning
business
B. Ratio of debt and equity II. Dividend decision
C. Financial blue print of an III. Capital Structure
organisation
D. Affects the liquidity and IV. Investment decisions
profitability of the organisation

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-II, B-III, C-I, D-IV
13. Match the list I with list II 241-250
List I List II
A. ROI > IOD I. Positive financial leverage
B. Trading on equity II. More equity
 C. Interest coverage ratio III. More debt
D. No flexibility IV. EBIT/Interest

Choose the correct answer from the options given below:

1. A- III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
14. Under which conditions an organisation will prefer to increase the debt 253-254
component in the capital structure of the company.
A. Higher ICR, higher cash flow, higher tax
B. Higher ICR, higher cash flow, lower tax
C. Higher DSCR, more control, bearish phase in the stock market
D. Bearish phase in the stock market, higher cost of equity, higher ROI
Choose the correct answer from the options given below:
1. A, C and D only
2. C, B and D only
3. A, B and D only
4. B and D only
15. Under which of the following situations a company is not likely to issue equity 253-254
capital?
(a) When the debt service coverage ratio is high.
(b) When the interest coverage ratio is high.
(c) When the cost of debt capital is high
(d) When ROI > IOD
Choose the correct answer from the options given below:
1. A, B and C only
2. C, D and E only
3. B, C and E only
4. B, C and D only
16. Which of the following statements is true with regard to use of fixed capital? 257-258
(a) It affects the long term growth of the business.
(b) Large amount of funds are involved.
(c) The business risk involved is low.
(d) The investment decisions are irreversible.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, B and D only
3. B and C only
4. B, C and D only

17. Which of the following statements is not true? 250-252

(a) Increased use of debt increases the financial risk of a business.
(b) Increased use of debt decreases the financial risk of a business.
(c) Decrease in use of debt increases the financial risk of a business.
(d) For more control the company will issue more equity.
Choose the correct answer from the following options given below:
1. A, C,D
2. A,B,C
3. B,C,D
 4. A, B, D
18. If in a particular situation, the earnings per share (EPS) falls with the increased 252-253
use of debt, it indicates that
1. The rate of return on investment (ROI) is less than the cost of debt.
2. The rate of return on investment is more than the cost of debt.
3. The Tax rate is less than the rate of return on investment.
4. The cost of Equity is more than returns on investment
19. The total capital of Uranium Private Limited is Rs.50 lacs. The amount of debt is 252-253
Rs.20 lacs. The company has earned a profit of Rs.10 lacs during the current
financial year. Its return on investment (ROI) for the present year is
1. 20%
2. 40%
3. 10%
4. 80%
20. Read the following statements: Assertion and Reason. 252-253
Choose one of the correct alternatives given below:
Assertion (A): The dividends are free of tax in the hands of shareholders.
Reason (R): Lower dividends may be declared by a company, if the tax rates are
relatively lower.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct
explanation of Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true
Arun is a successful businessman in the paper industry. During his recent visit to
his friend’s place in Mysore, he was fascinated by the exclusive variety of incense
sticks available there. His friend told him that Mysore region is known as a
pioneer in the activity of Agarbathi manufacturing because it has natural reserve
of forest products especially sandalwood. More ever, the suppliers of other types
of raw material needed for the production follow a liberal credit policy and the
time required to manufacture incence sticks is relative less. Considering the
various factors, Arun decides to venture into this line of business by setting up a
manufacturing unit in Mysore. He decided to take a bank loan to finance his new
venture as he wanted no interference in his decision making.
21. Identify the type of decision taken by Arun in setting up a new firm in Mysore 241-242
1. Investment decision
2. Financing decision
3. Dividend decision
4. Capital structure decision
22. Arun decided to setup in Mysore due to: 250-254
1. Scale of business
2. Operating efficiency
3. Availability of raw material
4. Inflation
23. “time required to manufacture incense sticks is relative less” identify the factor 262-263
affecting working capital
1. Inflation
2. Level of competition
 3. Growth prospects
4. Production cycle
24. Identify the factor responsible for the increased need of fixed capital by Arun. 262-263
1. Diversification
2. Level of collaboration
3. Technology upgradation
4. Choice of technique
25. “He decided to take a bank loan to finance his new venture as he wanted no 262-263
interference in his decision making.” Identify the factor affecting choice of
finance.
1. Fixed operating cost
2. Control consideration
3. Risk
4. Cash flow position of the company

Answer Key
S No. Answer
1. 3
2. 1
3. 1
4. 1
5. 2
6. 2
7. 2
8. 3
9. 3
10. 2
11. 3
12. 4
13. 1
14. 1
15. 1
16. 1
17. 3
18. 1
19. 1
20. 3
21. 1
22. 3
23. 4
24. 1
25. 2
 Business Studies
Marketing management

Question Page No. of

S NCERT
No.
1. Which concept pays attention on customer satisfaction, ethical and ecological aspects of 251
marketing?
1. Product concept.
2. Production concept.
3. Societal Marketing concept.
4. Marketing concept.

2. Which of the following statements is not true about "Marketing": 243

1. It is a social process.
2. Merchandising, 'selling' and distribution' are all parts of activities undertaken by a
firm, which are collectively called marketing.
3. The process of marketing helps individuals and groups in obtaining what they need
and want.
4. Marketing includes only post production activities.

3. Which of the following statements is not true with regard to "product concept"? 254
1. Product is a bundle of utility
2. Product is a source of satisfaction.
3. Product means goods or services or ‘anything of value’,
4. Product is confined to physical product

4. Which of the following is not a feature of marketing? 247

1. Developing an exchange mechanism.
2. Creating a market offering.
3. Developing a market plan.
4. Satisfying the needs and wants of the consumer.

5. Which of the following statements does not reflect a condition to be satisfied for an 245
exchange to take place?
1. Involvement of at least two parties viz., the buyer and the seller.
2. Each party should be capable of offering something of value to each other.
3. Exchange can take place if the buyers and sellers are not able to communicate with
each other.
4. Each party should have the freedom to accept or reject other party's offer.

6. Which of the following is not included in the process of marketing: 244

1. Choosing a target market.
2. The focus of the process of management is on getting, keeping as well as growing
the customers.
3. The mechanism for achieving the objective is through creating, developing and
communicating superior values for the customers.
4. Marketing management is generally not related to creation of demand.
7. Publicity refers to: 281
1. Non paid form of impersonal communication.
2. Paid form of impersonal communication.
3. Paid form of personal communication.
4. Non paid form of personal communication.

8. Which concept assumed that the customers will not buy, or not buy enough unless they are 248
adequately convinced and motivated to do so.
1. Marketing concept.
2. Product concept
3. Selling concept.
4. Production concept.

9. Which marketing philosophy believed that profits could be maximized by producing at 248
large scale, thereby reducing the average cost of production.
1. Production concept.
2. Product concept.
3. Price concept.
4. Selling concept.

10. Under which of the following conditions is a marketer likely to fix the price of his product 281
on the higher than his competitors.
1. When he faces high degree of competition.
2. When he wants to attain a substantial market share.
3. When the product is unique in terms of its features like packaging, product
differentiation etc.
4. When the demand for the product is low.

11. Match the list I with list II 272

List I List II
A. It is a personal form I. Public Relations
of communication.
B. It is usually undertaken to supplement II. Advertising
other promotional efforts such as
advertising and personal selling.
C. It involves a variety of III. Personal Selling
programmes designed to promote or
protect a company’s image
D. It is an impersonal form of IV. Sales Promotion
communication.

Choose the correct answer from the options given below:

1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV
12. Match the list I with list II 246
List I List II
A. Place I. music concert, film festival, elephant
race (Kerala Tourism).
B. Ideas II. Computer Education, Online
Trading, Health Care.
C. Events III. HelpAge, Family Planning, Donation
of Blood (Red cross).
D. Services IV. ‘Udaipur – ‘The City of Lakes’,
‘Mysore – The City of Gardens’.

Choose the correct answer from the options given below:

1. A-III, B- I, C-IV, D- II
2. A-IV, B-III, C-I, D-II
3. A-III, B-IV, C-I, D-II
4. A-I, B-III, C-II, D-IV

13. Match the list I with list II 261

List I List II
A. Labelling I. It is the verbal component
of a brand.
B. Brand Mark II. It refers to the act of
designing and producing the container or
wrapper of a product.
C. Packaging III. It is useful in providing detailed
information about the product.
D. Brand Name IV. It appears in the form
of a symbol, design, distinct colour
scheme or lettering.

Choose the correct answer from the options given below:

1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-III, B-IV, C-II, D-I
4. A-I, B-III, C-II, D-IV

14. Pricing objective of a firm may not include: 269

A. Obtaining Market Share Leadership.
B. Surviving in a Competitive Market.
C. Meeting Government and Legal regulations.
D. Attaining Product Quality Leadership.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and A only
3. B, C and D only
4. B, A and C only

15. The correct sequence involved------------ 269

A. Development of products or services for satisfying needs of the target market.
 B. Identification of market or customer who are chosen as the target of marketing effort.
C. Satisfying needs of target market better than the competitors.
D. Understanding needs and wants of customers in the target market.
Choose the correct answer from the following options given below:
1. A,C,D,B
2. A,B,C,D,
3. B,D,A,C
4. C,D,A,B

16. Which of the following are the functions of packaging. 263

A. Packaging greatly helps in identification of the products.
B. Packaging protects the contents of a product.
C. Packaging is one of the very important means of creating product differentiation.
D. Packaging is also used for promotion purposes.
E. Packaging rising standards of health and sanitation.
Choose the correct answer from the options given below:
1. A, B and D only
2. C, D and E only
3. B, C and E only
4. B, C and D only

17. Match the list I with list II 269,272,267

List I List II
A. Physical Distribution I. Producing goods of predetermined
specifications to achieve uniformity and
consistency in the output.

B. Standardization II. This component of marketing

mix, the goods and services are made
available at right place, at right time
to right people without change.

C. Pricing III. It involves informing the customers about

the firm’s product and persuading them to
purchase these products.

D. Promotion IV. It is the amount of money paid by a buyer

(or received by a seller) in consideration
of the purchase of a product or
a service.

Choose the correct answer from the options given below:

1. A-III, B- I, C-IV, D- II
2. A-IV, B-II, C-III, D-I
3. A-II, B-I, C-IV, D-III
4. A-I, B-III, C-II, D-IV

18. Read the following statements: Assertion and Reason. 267

Choose one of the correct alternatives given below:
Assertion (A): Price is often used as a regulator of demand of a product.
 Reason (R): In conditions of imperfect competition, most of the firms compete with each
other on the basis of price.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of
Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

19. Read the following statements: Assertion and Reason. 266

Choose one of the correct alternatives given below:
Assertion (A): Standardisation ensures the buyer that goods confirm the predetermined
standards of quality, price and packaging and reduces the need for inspection, testing and
evaluation of the products.
Reasoning (R): Grading is particularly necessary for products which are not
produced according to predetermined specifications, such as in the case of agricultural
products.
Alternatives:
1. Both Assertion (A) and Reason (R) are correct and (R) is the correct explanation of
Assertion (A)
2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct
explanation of Assertion (A)
3. Assertion (A) is true but Reason(R) is false
4. Assertion (A) is false but Reason(R) is true

Case Study
20. On placing an order to buy a moisturizer, Kriti noticed that the packaging of most of the 263
beauty products exhibited a photograph of a celebrity. Identify the related function of
packaging being described in the above lines.
1. Facilitates the use of production
2. Assists in the promotion of the product.
3. Helps in product identification
4. Provides protection to the product.

21. In order to provide comfort to the consumers and to improve upon its competitive edge in 252
the market, illuminate Ltd. has changed the packing of their skin care products. They are
now available in a consumer-friendly design, which has a nozzle attached to the lid so that
at the time of usage, the consumer doesn't need to open the cap of the bottle. Name the
marketing function been performed in the above case.
1. Product designing and development
2. Customer support services
3. Promotion
4. Packaging

22. Aqualogica Ltd. has drawn an action plan in order to increase its market share in 251
the international market by 5 % in the next one year. The action plan contains the details
about how the production levels will be increased, promotional activities will be carried
out and so on. Identify the marketing function being described in the given case study.
 1. Gathering and analyzing market information
2. Marketing planning.
3. Product designing and development.
4. Packaging and labelling.

23. Aarti Ltd. has hired 200 salespersons who will be assigned the task of contacting 276
prospective buyers, persuading them and creating awareness about the new range of hair
care products being introduced by the company. Identify the element of promotion mix
been described in the given case.
1. Advertising.
2. Sales promotion.
3. Personal selling.
4. Public relation.

24. Within five years of entering Clinique Ltd. has created a very positive reputation for the 280
company and its products in the eyes of the general public by participating extensively in
various social welfare programs. Identify the component of promotion mix being described
in the above case.
1. Advertising
2. Sales promotion
3. Personal selling
4. Public relations

25. A manufacturer of sports shoes in Haryana would find it very difficult to directly approach 269
customers in Ahmadabad, Bangalore, and Pune. Which element of marketing mix will
provide necessary aid to the manufacturer?
1. Product mix.
2. Promotion mix.
3. Price mix.
4. Physical distribution mix

Answer Key
S No. Answer
1. 3. Societal Marketing concept.

2. 3. The process of marketing helps individuals and groups in obtaining what they need and want.

3. 4. It is confined to physical product

4. 3.Developing a market plan.

5. 3. Exchange can take place if the buyers and sellers are not able to communicate with each other.

6. 4. Marketing management is generally not related to creation of demand.

7. 1.Non paid form of impersonal communication

8. 2. Product concept

9. 1. Production concept.

10. 3. When the product is unique in terms of its features like packaging, product
differentiation etc.

11. 3. A-III, B-IV, C-I, D-II

12. 2.A-IV, B-III, C-I, D-II

13. 3. A-III, B-IV, C-II, D-I

14. 1. A, B and D only

15. 3. B,D,A,C

16. 1. A, B and D only

17. 3. A-II, B-I, C-IV, D-III

18. 3. Assertion (A) is true but Reason(R) is false

19. 2. Both Assertion (A) and Reason (R) are correct but (R) is not the correct explanation of Assertion (A)

20. 2. Assists in the promotion of the product.

21. 1. Product designing and development

22. 2. Marketing planning.

23. 3. Personal selling.

24. 2. Public relations

25. 4. Physical distribution mix