BUSINESS STUDIES HOTS QUESTION (CH 5-8)

Q1. Name the element of directing which can be understood as the process of guiding the efforts of
employees and other resources to accomplish the desired objectives.
a) Leadership b) Communication c) Motivation d) Supervision
Q2. The workers of a factory are unable to work on new machines and always demand for help of
supervisor. The Supervisor is overburdened with their frequent calls. Suggest the remedy.
a) Compensation b) Motivation c) Training of workers d) Performance Appraisal
Q3. Assertion (A): Vestibule training is a method of off-the-job training.
Reason (R): Under vestibule training, actual machines are used to provide training. In the context of the
above two statements, which of the following is correct?
(a). Both (A) and (R) are correct and (R) is the correct explanation of (A).
(b).Both (A) and (R) are correct and (R) is not the correct explanation of (A)
(c).Only (A) is correct but (R) is false
(d).Both (A) and (R) are incorrect
Q4.

Q5. Sameer was stealing costly items from the company in Patna where he was working. The manager
of the Company installed a software program that could secretly log every single stroke of the suspects’
computer keys and send an encrypted email report to cyber police and he was caught red handed.
Identify the function of management being discussed above.
(a) Staffing (b) Coordination (c).Controlling (d) Organising
Q6. Identify the type of the organisation shown in the picture below.
(a) Formal Organisation (b) Informal Organisation (c) Functional Structure (d) Divisional structure
Q7. Suman works as a Project Co-ordinator in an export house. Whenever the workload is high, she is
able to convince her team by explaining to them the purpose, providing training and motivating them
with additional rewards so as to be able to win their wholehearted co-operation. Identify the element of
directing being described in the above lines.
(a) Supervision (b) Motivation (c) Leadership (d) Communication
Q8. On joining Foster Public School as a Physical Education teacher, Vikram realised that he did not have
any freedom to introduce any changes in the sports activities being : carried out in the school. Identify
the incentive which was being ignored by the school.
(a) Organisational climate (b) Job security (c) Career advancement (d) Employee recognition program
Q9. Netflix has adopted “Freedom and Responsibility Culture" gives employees the power to make
decisions in the best interests of the company. This approach has helped Netflix to stay ahead of the
curve in the highly competitive entertainment industry. Identify the concept of organising discussed in
the above case.
(a) Delegation. (b) Decentralisation (c) Organisational structure (d) Organising process
Q10. Which concept helps a manager to extend his area of operation as without it, his activities activities
would be restricted to only what he himself can do?
(a) Delegation (b) Decentralisation (c) formal organization (d) span of management
Q11. Statement I: Reference and Background checks are done between employment interview and
selection decision.
Statement II: Medical examination is conducted before Job offer in case of selection of a candidate
In the context of the above two statements, which of the following is correct?
a. Both Statements are correct. b. Both Statements are incorrect.
c. Only Statement I is correct. d. Only Statement II is correct.
Q12. The application of this principle of management leads to higher production and better work for the
same effort. Identify the related principle of general management.
(a) Discipline (c) Division of work (b) Equity (d) Order
Q13. Tasty Food Limited fixed several standards in order to affect an improvement in the ‘Satisfaction
Level’ of its customers. The main standards were as follows: the time consumed in communicating
orders, the time taken in receiving the orders and the time consumed in having the customers at the
table. With regard to these standards the feed-back from the customers was taken. On the basis of this
the required action was to be taken. Find out the step of controlling process in the above episode:
(a) Setting performance standards (b) Measurement of actual performance
(c) Analyzing deviations (d) Taking corrective action
Q14. In order to ensure that the classroom teaching is effective, Mr. Subhash Sachdeva, the principal of
Aroma Public School, carries out classroom teaching observations himself. Identify the step involved in
the controlling process being described in the above lines.
(A) Setting of standards (B) Measurement of actual performance
(C) Taking corrective action (D) Analyzing the deviations
Q15. Assertion (A) Controlling is not a costly process.
Reason (R) Controlling helps in judging the accuracy of standards set by the management.
(A) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion(A)
(B) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of
Assertion(A)
(C) Assertion (A) is true, but Reason (R) is false
(D) Assertion (A) is false, but Reason (R) is true
Q16. Zolta's CEO, George Mack makes strategic decisions and has control over the entire organisation.
All senior executives have to report directly to the CEO, which allows George Mack to have direct control
of the entire organization in terms of its functions, product lines, divisions, and service. Identify the
concept adopted by George Mack.
(A) Centralisation (B) Decentralisation (C) Formal (D) Informal
Q17. Resident Welfare Association (RWA) of Noida, Sector 15 decided to organize Diwali mela on the
eve of Diwali. They listed all the activities to be done, grouped them as per their nature and assigned the
activities/duties to different people of their association. After completion of the mela they found that it
was not a success. While analysing the reasons the President of RWA found that mere allocation of work
was not enough in the organisation. He found that an important step in the organising process was
missing. Identify the step from the following:
(a)Assignment of duties (b)Establishing authority and reporting relationships
(c)Identification and division of work (d) Departmentalisation
Q18. ‘RP Infotech Ltd.’ decided to approach ‘Patel Engineering College’ to recruit qualified personnel for
various technical jobs in its newly opened branch in Surat. Which source of recruitment from the
following has been used by ‘RP Infotech Ltd.' in the above case:
(a)Direct Recruitment (b)Placement Agencies and Management Consultants
(c)Campus Recruitment (d)Recommendation of employees
Q19. Statement I: In Departmentalisation the work is assigned to individuals based on their skills and
capabilities.
Statement II: Organising enhances clarity in working relationships.
A. Statement I is true but II is false B. Statement II is true but I is false
C. Both the statements are true D. Both the statements are false
Q20. Choose the statement that correctly highlights the demerit of Internal Sources of Recruitment.
A. Internal Sources of recruitment are economical
B. Internal sources of recruitment lead to lack of competition
C. Internal sources of recruitment serves as a source of motivation
D. Internal sources of recruitment result in reduced labour turnover
Q21. Assertion (A): Controlling should not be misunderstood as the last function of management.
Reason(R): It is a function that brings back the management cycle back to the planning function.
A. Both Assertion(A) and Reason(R) are true and Reason(R) is the correct explanation of Assertion (A).
B . Both Assertion(A) and Reason(R) are true and Reason(R) is not the correct explanation of Assertion
(A).
C. Assertion(A) is true but Reason (R) is false.
D. Assertion(A) is false but Reason (R) is true

Q22. Many reputed business organisations keep a database of unsolicited applicants in their offices.
Such job seekers can be a valuable source of manpower. A list of such job seekers can be prepared and
can be screened to fill the vacancies as they arise. The source of recruitment discussed above is:
(A) Direct recruitment (B) Casual callers (C) Labour contractors (D) Campus recruitment

Q23. Which of the following is the correct statement?

A. According to Control by Exception, the control should focus on key result areas (KRAs)which act as the
critical points.
B. According to the Critical Point Control, an attempt to control everything results in controlling nothing.
C. Internal environmental factors like inadequacy of production facilities, outdated technology etc. are
considered important for assessing the reason for deviation.
D. Deviations which exceed the prescribed limit should not be brought to the notice of management.
Q24. State the type of plan and also tell whether they are single use or standing plan:
(i) A type of plan which serves as a controlling device as well.
(ii) A plan based on research and analysis and is concerned with physical and technical task.
Q25. Organizing doesn’t include _______.
a) By whom will be done b) When will be done c) Where will be done d) How will be done
Q26. Which type of training is provided to the new employees of an organisation in order to familiarise
them with the organisational rules and policies, their superior and subordinate, and so on?
(a) Vestibule training (b) Apprenticeship training (c) Internship training (d) Induction training
Q27. Just as the phrase ‘water everywhere and not a drop to drink’ amplifies the fact that despite 2/3rd
of the earth being water drinkable water is a scarce commodity so may also be said of finding ‘the right
person for the right job’.This statement is related to which process of management?
A. Selection process B. Staffing process C. Recruitment process D. Organising process
Q28. Umang was working as a ‘Production Manager’ at ‘LG Papers Ltd’. the company had launched new
eco-friendly paper straws in the market. He was given a target of producing 5000 straws a day, By the
general manager. In spite of making the employees work over time, Umang could not meet the target.
On investigation, it was found that the employees had not received the right training to manufacture
these eco-friendly papers straws. Saudi employees were sent for special training. The function of
management which helped Umang in identifying that he could not meet the target is:
A. Planning B. Organising C. Directing D. Controlling
Q29. ..........is the step in the controlling process where standards may have to be revised in case the
deviation cannot be corrected through managerial action.
(A) Setting Performance Standards.
(B) Measurement of Actual performance.
(C) Comparing Actual Performance with standards and analyzing deviation.
(D) Taking corrective action
Q30. A sunscreen lotion manufacturing company wants to become a market leader. For this purpose,
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?
(A) Follow-up action (B) Identifying alternative course of action
(C) Setting objectives (D) Evaluating alternative courses of action.