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Mock Test Paper

Section – A Business Studies
Q 1. Identify the Principle of Management where Taylor pioneered the introduction of
method of scientific inquiry into the domain of management practice.
a) Science, not rule of thumb
b) Harmony not discord
c) Cooperation, not individualism
d) Development of each and every person to the greatest efficiency and prosperity
Q 2. Match List-I with List-II on the basis of Management Principles :

List I List II
A) Obedience to organisational (I) Unity of direction
rules
B) One boss for every individual (II) Remuneration of
employee employees
C) One head and one plan (III) Discipline
D) Remuneration should be just (IV) Unity of command
and equitable

a) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)

b) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
c) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
d) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Q 3. The aim of which technique given by F.W. Taylor is to reduce a given line or a
product to fixed types, sizes and characteristics ?
a) Method study
b) Time study
c) Standardisation of work
d) Functional foremanship
Q 4. Which of the following is an example of legal environment ?
a) Death/Birth Ratio
b) Trade Union Act
c) Prevailing Political System
d) Public Debt
Q 5. Which of the following does not characterise business environment ?
a) Inter-related
b) External forces
c) Market orientation and product
d) Relativity

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Q 6. Identify the correct sequence of steps under the Planning function :
(A) Setting objectives
(B) Identifying alternative courses of action
(C) Developing premises
(D) Evaluating alternative courses of action
Choose the correct answer from the options given below :
a) (A), (B), (C), (D)
b) (A), (C), (B), (D)
c) (B), (A), (D), (C)
d) (C), (B), (D), (A)
Q 7. "It is a joint programme of training in which educational institutions and business
firms cooperate." Identify the method of training.
a) Vestibule training
b) Apprenticeship training
c) Internship training
d) Job rotation
Q 8. Match List-I with List-II

List I List II
A) Choosing the most (I) Selection
appropriate candidate
B) Candidate is given an (II) Orientation
introduction to superiors
C) Learning the skills related to (III) Recruitment
a job
D) Searching for prospective (IV) Training
employees

a) (A) - (I), (B) - (II), (C) - (III), (D) - (IV)

b) (A) - (I), (B) - (III), (C) - (II), (D) - (IV)
c) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
d) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Q 9. Which of the following is an example of economic environment ?
a) Money supply in economy
b) Constitution of the country
c) Life expectancy
d) Population shifts
Q 10. Which of the following are advantages of functional structure of an organisation ?

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(A) Leads to occupational specialisation.
(B) Places less emphasis on organisational objectives.
(C) Promotes coordination and control within a department.
(D) Increases operational efficiency.
Choose the correct answer from the options given below :
a) (A), (B) and (C) only
b) (A) and (B) only
c) (A), (C) and (D) only
d) (C) and (D) only
Q 11. The key position of top-level management is _____________ .
a) Managing Director
b) Production Manager
c) Marketing Manager
d) Plant Supervisor
Q 12. Akash Industries has installed a waste recycling plant in its premises and does not
dump their waste material anymore. This plant is providing employment to many
people. Identify the objective of management which the company is achieving by doing
the aforesaid activity.
a) Social Objective
b) Economics Objective
c) Personal Objective
d) Growth
Q 13. "Coordination unifies unrelated interests into purposeful work activity." Identify
the nature of coordination.
a) Coordination is an all pervasive function
b) Coordination is a continuous process
c) Coordination ensures unity of action
d) Coordination integrates group efforts
Q 14. The informal organisation offers many benefits. Important among them are given
below :
(A) Prescribed lines of communication are not followed. Thus, informal organisation
leads to faster spread of information as well as quick feedback.
(B) It helps to fulfil the social needs of the members and allows them to find like minded
people. This enhances their job satisfaction since it gives them a sense of
belongingness in the organisation.

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(C) It contributes towards fulfilment of organisational objectives by compensating for
inadequacies in the formal organisation.
(D) Unity of command is maintained through an established chain of command.
a) (A), (B) and (D) only
b) (A), (B) and (C) only
c) (A), (B), (C) and (D)
d) (B), (C) and (D) only
Q 15. Identify the correct sequence of Organising function of management.
(A) Establishing authority and reporting relationships
(B) Departmentalisation
(C) Identification and division of work
(D) Assignment of duties
Choose the correct answer from the options given below :
a) (A), (B), (C), (D)
b) (A), (C), (B), (D)
c) (B), (A), (D), (C)
d) (C), (B), (D), (A)
Q 16. For effective delegation, the authority granted must be commensurate with the
assigned______.
a) Accountability
b) Coordination
c) Responsibility
d) Organisational
Q 17. Alex is a specialist in producing medicinal products. He aims to make 5000
medicines each day. To achieve this, all the departments are effectively coordinated,
communication is proper, proper reporting is there. Which function of management is
being highlighted here?
a) Planning
b) Controlling
c) Organising
d) Coordination
Q 18. Fill in the blank with suitable option:
Growth of a business can be measured in terms of ______.
a) Increase in sales volume
b) Increase in number of employees
c) Increase in Capital Investment

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d) All of the above
Q 19. What are the three main dimensions of Management?
a) Management of work, Management of people, Management of operations
b) Management of work, Management of goals, Management of People
c) Management of Goals, Management of Activity, Management of work
d) Management of Operations, Management of Tasks, Management of People
Q 20. Even a small production activity like loading pigs of iron into boxcars can be
scientifically planned and managed. It is said by?
a) Henry Fayol
b) F.W Taylor
c) Philip Kotler
d) Louis Allen
Q 21. The right of an individual to command his subordinates and to take action within
the scope of his position is known as:
a) Accountability
b) Delegation
c) Authority
d) Responsibility
Case Study
On the basis of information given in the case, answer the next four Questions (Q 22- 25)
Rohan is the Head Boy of Ethos Public School. The School is going to hold a covid
vaccination camp for students of age group 12- 14 yrs in the month of May. The entire
Prefectorial Board is given the duties for the event under the leadership of Rohan.
Rohan has shortlisted the following activities:
1. Identification of students eligible for vaccination under 12-14 yrs.
2. Obtaining Aadhar card for registration of these students on the covid vaccination App
3. Consent letters of parents
He further divided the execution part activities. Later he grouped the similar nature
activities into different units. Then he allocated these to different prefects under his
preceptorial board. Thereafter he devised a computer software where each prefect was
supposed to enter his data of vaccination for further submission to school
headmistress.
Q 22. _______ is the function of management discussed in the above passage.
a) Planning
b) Directing
c) Organising
d) Staffing

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Q 23. “Later he grouped the similar natured activities into different units”
Identify the step highlighted in the above line in the organisation process.
a) Implementing the plan
b) Measurement of actual performance
c) Departmentalisation
d) Selecting an alternative
Q 24. “Then he allocated these to different prefects under is prefectorial board”.
Which step of organisation process is discussed in these lines?
a) Assignment of duties
b) Implementing the plan
c) Division of activities
d) Follow up action
Q 25. “Thereafter he devised a computer software where each perfect was supposed to
enter his date of vaccination for further submission to school headmistress’.
Identify the step of organisation process is discussed in the above statement.
a) Follow up action
b) Establishing reporting relationship
c) Corrective actions
d) Assignment of duties

Section- B Economics
Q 26. The demand for money in an economy is
a) Positively related to the level of income but negatively related to rate of interest
b) Positively related to rate of interest, but negatively related to the level of income
c) Positively related to both the level of income and rate of interest
d) Negatively related to both the level of income and rate of interest

Q 27. The horizontally parallel section in the Keynesian speculative demand for money
indicates that
a) There is no speculative demand for money
b) There is small but limited demand for money
c) Monetary policy becomes ineffective
d) Monetary policy becomes effective

Q 28. Given the supply of high power money, if the rate of interest goes up, the value of
credit-multiplier
a) Increases
b) Decreases
c) Remains unchanged
d) The two are unchanged

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Q 29. Consider the following items included in a Balance Sheet:
1. Demand deposits
2. Borrowings from other banks
3. Cash kept with other banks
4. Endorsement of bills of exchange
Which of these are shown in the liability column of the Balance Sheet of a commercial
bank?
a) 1, 2 and 3
b) 1, 2 and 4
c) 1 and 3
d) 2 and 4

Q 30. In calculating a country’s GNP at market prices one of the following is not
included
a) Wages and salaries before tax
b) Indirect taxes
c) Bonus to the employees
d) Depreciation allowances

Q 31. The consolidated government budget differs from the union budget by
a) Imports
b) State and local government expenditure
c) Union tax receipts
d) Intergovernmental transfers

Q 32. What should be substituted for X and Y in the following equation?

GNP at market prices = GNPFC – X + Y
a) Indirect taxes, zero
b) Indirect taxes, subsidies
c) Subsidies, Indirect taxes
d) Zero, subsidies

Q 33. National Income total reveals

a) The spending side
b) The production side
c) The distributive side
d) The investment side

Q 34. Assume that between 2005 and 2010, GNP increased from ₹ 1000 crore to ₹ 1500
crore and the index of prices increased from 100 to 200. Which one of the following
expresses GNP for 2010 in terms of 2005 prices?
a) ₹ 1000 crore
b) ₹ 750 crore

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c) ₹ 1500 crore
d) ₹ 500 crore

Q 35. Which one of the following is NOT included while estimating national income
through income method?
a) Rental Income
b) Undistributed Profits
c) Mixed Income
d) Pensions

Q 36. If the Reserve Bank of India sells securities in the market, it will result in
a) An immediate change in the bank rate
b) A fall in the market rate of interest
c) An increase in loans to banks customers
d) A reduction in bank deposits

Q 37. The transactions demand for money is most closely related to money functioning
as a
a) Standard of value
b) Store of value
c) Medium of exchange
d) Unit of account

Q 38. While calculating national income, a transfer payment can be recognised if

a) No money transaction is involved
b) Consumer income is increased
c) No good or service is produced in the process
d) No tax relief, is involved

Q 39. The GNP at factor cost is equal to GNP at market prices

a) (+) Subsidies
b) (–) Indirect taxes
c) (+) Indirect taxes (–) Subsidies
d) (–) Indirect taxes (+) Subsidies

Q 40. Identify the correct statement in the context of Circular Flow of Income in a two
sector economy :
a) Household receives factor services from firms.
b) Household invests while firm saves.
c) Firms produce goods and services.
d) Household supplies factor services to Government.

Q 41. All those elements which create liability and decrease the assets of government
are known as :

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a) Capital Receipts
b) Capital Payments
c) Revenue Receipts
d) Revenue Payments

Q 42. Tax is added to price when

a) Demand is perfectly elastic
b) Demand is highly inelastic
c) Supply is highly elastic
d) Supply is perfectly elastic

Q 43. Which of the following come under non-plan expenditure of Government of India?
I. Subsidies
II. Interest payment
III. Defence expenditure
IV. Expenditure on development of infrastructure
Choose the correct answer from the codes given below
a) I, II, and III only
b) I and III only
c) II and IV only
d) II and III only

Q 44. Which one of the following pairs is correctly matched?

a) Fiscal deficit – G.D.P.
b) Primary deficit – Money Supply
c) Monetised deficit – Interest Payments
d) Budget deficit – Revenue expenditure and receipts of Revenue Account

Q 45. Which of the following effects of deficit financing of the Central Government
affects the common man most adversely?
a) Forced savings
b) Credit creation by banks
c) Inflationary rise in prices
d) Changes in the pattern of social investment

Q 46. Which one of the following is not included in calculating gross national product of
an economy?
a) Wages and Salaries before tax
b) Depreciation allowances
c) Indirect taxes
d) Subsidies

Q 47. For a study of the long term grown of the economy we use
a) Real GNP

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b) Money GNP
c) Per capita income
d) Property of the individual

Q 48. Which of the following is not a function of Central Bank ?

a) It controls the money supply in the economy through different rates.
b) It acts as a banker to the government.
c) It accepts deposits and give loans to people.
d) It issues the currency of the country.

Q 49. Match List I with List II and select the correct answer using the codes given below
the lists
List I List II
a) Consumption of fixed capital 1. Gross output less inter industry
purchases
b) Value added 2. National income in a closed economy
c) Net income from abroad 3. Depreciation
d) Domestic product 4. (X – M)

Alternatives:
a) A-3, B-1, C-2, D-4
b) A-1, B-3, C-2, D-4
c) A-1, B-2, C-4, D-2
d) A-3, B-1, C-4, D-2

Q 50. Which one of the following statements relating to transfer payments, capital gains
and illegal activities is correct?
a) Market transactions such as transfer payments, capital gains are included and
illegal activities are omitted in national product
b) Market transactions such as transfer payments, capital gains and illegal
activities are omitted in national product
c) Market transactions such as transfer payments are included but capital gains
and illegal activities are omitted in national product
d) All the three market transactions should be included in national product

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Answer Key
Section A- Business Studies
Ans 1. a) Science, not rule of thumb
Ans 2. d) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Ans 3. c) Standardisation of work
Ans 4. b) Trade Union Act
Ans 5. c) Market orientation and product
Ans 6. b) (A), (C), (B), (D)
Ans 7. c) Internship training
Ans 8. c) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
Ans 9. a) Money supply in economy
Ans 10. c) (A), (C) and (D) only
Ans 11. a) Managing Director
Ans 12. a) Social Objective
Ans 13. c) Coordination ensures unity of action
Ans 14. c) (A), (B) and (C) only
Ans 15. d) (C), (B), (D), (A)
Ans 16. c) Responsibility
Ans 17. c) Organising
Ans 18. d) All of the above
Ans 19. a) Management of work, Management of people, Management of operations
Ans 20. b) F.W Taylor
Ans 21. c) Authority
Ans 22. c) Organising
Ans 23. c) Departmentalisation
Ans 24. a) Assignment of duties
Ans 25. b) Establishing reporting relationship

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Section – B Economics
Ans 26. a) Positively related to the level of income but negatively related to rate of
interest
Ans 27. c) Monetary policy becomes ineffective
Ans 28. b) Decreases
Ans 29. b) 1, 2 and 4
Ans 30. d) Depreciation allowances
Ans 31. b) State and local government expenditure
Ans 32. c) Subsidies, Indirect taxes
Ans 33. c) The distributive side
Ans 34. b) ₹ 750 crore
Ans 35. d) Pensions
Ans 36. d) A reduction in bank deposits
Ans 37. c) Medium of exchange
Ans 38. c) No good or service is produced in the process
Ans 39. d) (–) Indirect taxes (+) Subsidies
Ans 40. c) Firms produce goods and services

Ans 41. a) Capital Receipts

Ans 42. b) Demand is highly inelastic
Ans 43. a) I, II, and III only
Ans 44. a) Fiscal deficit – G.D.P.
Ans 45. c) Inflationary rise in prices
Ans 46. b) Depreciation allowances
Ans 47. a) Real GNP
Ans 48. c) It accepts deposits and give loans to people

Ans 49. d) A-3, B-1, C-4, D-2

Ans 50. b) Market transactions such as transfer payments, capital gains and illegal
activities are omitted in national product

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