term: i (2021-22)
TRANSCRIPT
TERM: I (2021-22)
CHIEF PATRON: DR. JAIDEEP DAS
Deputy Commissioner, KVS RO Ahmedabad
PATRON: MS. SHRUTI BHARGAVA
Assistant Commissioner, KVS RO Ahmedabad
CONVENOR: MR. RAJESH TRIVEDI
Principal, KV NO 2 Army Cantt Bhuj
CO-ORDINATOR: MR. ARUN SHARMA Principal, KV AFS Naliya
CONTENT TEAM
Mr. Prasant Vadodkar, KV No. 2 EME, Baroda.
Ms. Sunita D Marker, KV Ichhanath, Surat.
Mr. Mukesh Kumar Parmar, KV No.1 Harni Road, Baroda.
Mr. Dinesh Kumar, KV Silvassa.
COMPILATION
Mr. Patidar Naresh Kumar, KV Sabarmati, Ahmedabad.
Term I: QP Design for 2021-22
Stipulated:
For Classes XII (TERM I)
• Duration of each Paper to be of 90 minutes
• All questions to be MCQ with 4 options
• Case based questions to be included (Minimum 10% in class XII)
• Competency based questions to be included (Minimum 20% in class XII)
• No negative marking
• Reading time of 10 minutes to be provided
Question Paper Design
Duration: 90 minutes
Sections Domains Questions
given Questions to be attempted
Format of questions
Section A Knowledge +
Understanding
20 + 4 questions
20 Simple MCQ
Section B
Application
and Other higher order thinking
(analysis/ synthesis/ evaluation)
20 + 4
questions
20
Simple MCQ +
Complex MCQ +
Assertion - Reasoning
Section C
Case-based/ data-based question (Understanding/ application/ other higher order thinking skills)
10 + 2 question
s
10
All types
TOTAL 60 questions 50 questions
• 20% choice in in different sections
• 10% case-based questions to be incorporated in Sec C.
INDEX
UNIT NAME OF THE CHAPTER TOPIC PAGE NO.
1 Nature and Significance of
Management
*Multiple choice questions
*Assertion reasoning questions
*Case based questions
*Answer key
1-6
2 Principles of Management 7-13
3 Business Environment 14-22
4 Planning 23-31
5 Organising 32-43
6 Marketing 44-55
7. Sample question paper
issued by CBSE
Question Paper 1-16
Answer Key
1
CH.1 Nature & Significance of Management
Q.1 Management aims at unifying the efforts of all individuals & groups working in the
organization. Which aspect of management is referred to in the aforesaid statement?
A. Co-operation B. Coordination
C Synchronization D Harmonization
Q.2 Management means management of:-
A. Work B. People
C. Operations D. All the three
Q.3.Management aims at achieving ______ goals.
A Social B Personal
C Organizational D All the three
Q.4 Management helps in the development of ___________
A. Society. B. Employees
C. Organization D All the three
Q.5 Management is not a perfect science like physics but more of a _____
A. Social science. B. Applied science
C. Profession D. Art
Q.6.After doing MBA from IIM (A) your brother has been appointed as Vice President in a
MNC.
The functions he must be performing are:
1. Coordination 2.Planning & Policy formulation
3. Supervision of workers 4.Decision making
A) 1 & 2 above B) 2 & 3 above
C) 3 & 4 above D) 2 & 4 above
Q.7 Coordination is not required equally at all the levels of management.
A. It is required more at the Top-level B. Required more at Middle level
C. Required more at Lower level D. Required more at Top & Lower level
Q.8. A Production manager achieves the target of 5000 units set for his department but
spends Rs.55 Lakhs in place of Rs.50 Lakhs. He is :
A. Effective but not efficient B. Efficient but not effective
C. Is both Efficient & Effective D. Neither efficient nor effective
2
Q.9 Managing the affairs of the co. merely one time is not enough. Which feature of
management is referred in the above line? Management is:
A. Continuous process. B. Pervasive
C. Futuristic D. Goal oriented
Q.10. Management is not a fully developed profession, Reason is:
A. Lack of Code of Conduct B. Professional degree is not compulsory
C. Lack of Apex Licensing authority D. All of them
Q.11. Co-ordination ----
A. Integrates group efforts B. Is a deliberate function
C. The essence of management. D. All of the above
Q.12. Rajat is working as Executive Director in Excel industries. He is working at _______
level of management.
A) Top B) Middle
C) Lower D) None of above
Q.13. Management is:
A) An art B) A science
C) A profession D) Have the features of all above
Q.14. “Management is what management does” Which feature is referred from the above
statement?
A. Intangible force B. Goal oriented
C. Futuristic D. Continuous
Q.15. Management is taught as a specialized subject in reputed institutes such as IIM.
Which feature of management is inferred from the said statement? That Management is -
A. Science B. Art
C. Profession D. None of the above
Q.16 Which level of management from the following is involved in preparing organizational
strategies?
A) Top B. Middle
C. Lower D. None of them
Q.17 Directing & Controlling are the two important functions performed by the operational
level management,
A. True, because they guide, motivate & control the workers
B. False, as they merely give the feedback to the middle management
C. False, as they are busy in reporting about the daily performance
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D. False, as they merely observe the workers while they perform duties.
Q.18. Management is required in:
A. Only business organizations B. All types of Organizations
C. Only Educational institutions D. Only Cultural organizations
Q.19. Middle level managers do not perform the following function:
A. Policy making B. Decision making
C. Goal setting D. All of them
Q.20. Management –
A. Helps in achieving goals B. Increases efficiency
C. Increases effectiveness D. All of the above
Q.21.Does management focuses on efficiency or effectiveness?
A) Efficiency B) Effectiveness
C ) Both D) None
Q.22. Application of the knowledge learned is a feature of
A. Management as an Art B. Management as a science
C. Management is a profession D. None of the above
Q.23. Which of the following is not a function of management?
A) Planning B) Staffing
C) Cooperating D) Controlling
Q.24. Management is the process of:
A. Getting things done B. Achieving goals
C) Managing people D) All above
Q.25. Management as an art requires:
1) Application of the learned knowledge
2) Personal skills which differ from person to person
3) Specialized knowledge
4) All the above
A) 1 & 2 above B) 2 & 3
C) 1 & 3 D) All the above
Q. 26 Assertion ( A) : Management as an art & science complement each other & are not
mutually exclusive.
Reason (R) : Managers work better if its practices are based on principles of
management. Find the correct option:
4
A Both A & R are true R is not the correct explanation of A
B Both A & R are true & R is the correct explanation of A
C A is true but R is false
D A is false but R is true
Q.27. Assertion: Management is required in all types of organizations.
Reason: Management is all pervasive
A. A & R both are true B. A is true but R is false
C. R is true but A is false D. A & R both are false
Q.28. Management is neither an Art or Science nor Profession but a fusion of all the three.
Assertion: The above statement is true
Reason: As it has a few features of all the three above.
A. Only the Assertion is true B. Only the Reason is true
C. Both Assertion & Reason are true. D. Both Assertion & Reason False
Q.29. The plans of ABC Ltd. failed as there was no Coordination between the Production,
Marketing, Finance & HR Manager.
Assertion : The success of management depends on Coordination.
Reason : Management is a group activity & there is a need to harmonize the efforts of all.
A. Both A & R are correct B. Both A & R are wrong
C. Only A is correct & R is incorrect D. Only R is correct & A is incorrect.
Q.30. Assertion: The Economic, Social, & personal objectives of an organization are
complementary.
Reason: The harmony of all three objectives helps to achieve success.
A. Both A & R are Correct B. Only A is correct
C. Only R is correct D. Both A & R are incorrect.
Q.31. Master Rishabh a class 12th commerce is confused about which of the following
does not fall under the Top level Management? Kindly mark the correct option to guide
him.
A. Director B. President
C. Vice president D. Accounts Manager
Q.32. A chartered Accountant Mr. Rakesh argues that management is a fully developed
profession whereas Mr. Rishit a Management consultant argue that Management is not a
fully developed profession like Law, Medicine etc. The correct option is:
A. Rakesh is correct & Rishit is wrong B. Both are incorrect
C. Rishit is Correct & Rakesh is false D. Both are correct.
5
Q.33. Planning, Organising, Staffing, Directing & Controlling are the functions but
coordination is not a function of management as it the essence of management.
A. Above statement is Correct B. Above statement is incorrect
C. Above statement is partially Correct D. Coordination is a function
Q.34. Tata Motors Ltd. a leading Brand in Automobiles & Truck manufacturing is facing
some conflict issues between the between the top level & middle level management. Both
the levels argue that their level of management is responsible for coordination. Secondly
the Vice president Plant operations & the purchase Manager have not consulted each
other resulting in shortage of raw material.
Which level of management’s argument is correct?
A. Top level is correct B. Middle level is correct
C. Both are correct D. Both are incorrect
Q.35. What is lacking between the two levels of management in above case?
A. Cooperation B. Co-ordination
C. Trust D. All the three
Q.36. KVS an established Educational Organization comes in the top 10 Educational
Brands in India. It provides equal opportunity to the male as well as female employees to
progress in the organization, In doing so Kendriya Vidyalaya Sangathan is pursuing which
objective?
A. Organizational B. Social
C. Personal D. All the objectives
Q.37. Ms. Hina set up a unit under the Start - Up India Program. She used all the
knowledge she had learned in Business Studies in her school and college days. She
created a strong team which is entirely committed & helps work in an innovative way
resulting in building an efficient & effective organization. The unit launches different
products every year to stay ahead in the competition.
Which importance of management is highlighted in the given case?
a. Increases efficiency & Effectiveness
b. Helps achieve personal goals
A. Only option a B. Only option b
C. Both a & b D. Neither a nor b
Q.38. Which feature of management is highlighted in the above case?
A. Dynamic B. Goal oriented
C. Pervasive D. Intangible
6
ANSWER:
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 B 11 D 21 C 31 D
2 D 12 A 22 A 32 C
3 D 13 D 23 C 33 A
4 D 14 A 24 D 34 B
5 A 15 C 25 D 35 B
6 D 16 A 26 B 36 D
7 B 17 A 27 A 37 A
8 A 18 B 28 C 38 A
9 A 19 D 29 A
10 D 20 D 30 A
7
CH.2 Principles of Management
Q.1 Mr. Mannpreet Brar - the Administrative Manager of Lakahani Jwellers neither gives a
forethought nor applies logic before distributing the work properly among his subordinates.
This results in duplication of work & wastage of time efforts & money.
Which principles are violated here?
1. Scalar chain
2.Division of Work
3. Harmony
4.Rule of Thumb
A) 1 & 2 B) 2 & 3
C) 2 & 4 D) 1 & 3
Q.2. What will be the ill effect if the Principle of Parity of Authority & Responsibility is violated?
a. Misuse of Power by superior b. Conflict between superiors
A) both a & b of the above B) none of above
C) only a D) only b
Q.3. You have learnt the principles of management in Business Studies, yet your belongings
such as books, clothes, stationery, notebooks etc. are never kept at proper place in-spite of
having study table & Almirah in your room. Which of the following principle is not being
followed by you?
A. Scalar chain B. Harmony
C. Order D. Discipline
Q.4. Keeping in view the need of the hour, companies like Mahindra & Mahindra Automobiles
Ltd. as well as Tata Motors have invested heavily in Design Development & manufacturing of
Electric Cars.
Which objective of management is highlighted in the aforesaid statement?
a) Organizational b) Personnel c) Social d) None of them
A. a & b above B. a & c above
C. c & d above D. a & d above
Q.5. Principle of equity means:
A. Equal pay to all
B. No discrimination among employees
C. Equal working hours for all
D. Equal perks to all
Q.6. The technique of Standardization & Simplification was advocated by
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A. Fayol B. Taylor
C. P.F Drucker D. Warren Buffet
Q.7. Functional Foremanship is an exception to the principle of:
A. Scalar chain B. Unity of Direction
C. Unity of command D. Discipline
Q.8. It is not compulsory to follow the principles of management.
A. True as they are mere guidelines B. They are compulsorily to be followed
C. They don’t offer readymade solutions D. They are rigid & can’t be changed.
Q.9. Taylor is known as the father of:
A) General Management B) Scientific management
C. Applied management D. Practical management
Q.10. Mr. John the Manager is more liberal towards the female employees whereas he is very
strict with male employees. Which principle is he violating?
A. Scalar chain B. Equity
C. Division of work D. Order
Q.11. _________ seeks to determine the time n frequency of rest interval in doing a task.
A. Time study B. Method study
C. Motion study D. Fatigue study
Q.12. A manager punishes his subordinates for willfully disobeying a legitimate order but only
after giving opportunity to the subordinate to put up explanation. Which principle is highlighted
above?
A. Discipline B. Equity
C. Stability of tenure D. Scalar chain
Q.13. The objective of method study is to:
A. Find out one best way of doing the job
B. Minimize the cost
C. Maximize the satisfaction of the customer
D. All the above
Q.14. The objective of time study is to:
A. Measure the standard time required for each job
B. Determine the no of workers to be employed
C. Both the above
D. None of the above
9
Q.15. Which of the following is a cause of fatigue?
A. Poor lighting B. Poor ventilation
C. Both a & b D. None of the above
16. Match the following options in the columns below:
1. Differential piece wage plan a. No discrimination
2. Mental Revolution b. Change in attitude towards each other
3. Scalar chain c. Efficiency based remuneration system
4. Equity d. Heirarchy based Authority &
Responsibility structure
A. 1 & c, 2 & b, 3 & d, 4 & a. B.. 2 & b, 1 & d, 3 & a, 4 & c
C. 1 & b, 2 & c, 3 & a, 4 & d D. 1 & d, 2 & a, 3 & b, 4 & c
Q.17. Name the principle which is the backbone & mainstay of a Military organization:
A. Unity of Direction B. Discipline
C. Division of work D. Order
Q.18. One head & one plan is the crux of which of the following principle?
A. Unity of command B. Unity of Direction
C. Discipline D. Equity
Q.19. The principle highlighting management’s efforts to minimize employee turnover is:
A. Espirit de corps B. Stability of tenure
C. Initiative D. Equity
Q.20. Gang plank advocated by Fayol, highlight which feature of management principles?
A. Flexible B. Behavioral
C. Contingent D. General guidelines
Q.21. Availability of Suggestion box indicates that the co. is following the principle of:
A. Initiative B. Espirit de corps
C. Order D. Discipline
Q.22. As per which principle - a manager should replace “I” with “We”.
A. Discipline B. Espirit de corps
C. Initiative D. Subordination of Individual interest
Q.23. The Principle of Espirit de corps was advocated by ________
A. Taylor B. Fayol
C. Shiv Kheda D. Peter F. Drucker
10
Q.24. Rishabh a manager often speaks to people at all levels, passing on orders of his
department as well as other departments. Which principle is he overlooking?
A. Initiative B. Discipline
C. Equity D. Scalar chain
25. Aditya Ltd. exploits its workers & does not pay them wages according to law. Which
principle is the co. violating?
A. Equity B. Order
C. Harmony not discord D. Fair Remuneration
Q.26. “Successful people do not do different things, but they do things differently” similarly
successful co.’s do their business differently.
Assertion: Instead of doing the things as are being done traditionally, applying logic &
scientific enquiry, organizations can become successful.
Reason: Logical decisions tend to produce better results.
A. A is correct but R is false B. R is correct but A is false
C. Both A & R are correct D. A is correct & R is the Justification of A
Q.27. Mr. Vergeese Kurian known as the father of “White Revolution” established GCMMF &
“AMUL” Brand. He run it on the principles of management & in an ethical manner, no wonder it
has now become a Rs.40000 Crore co-operative organization.
Assertion : If any organization is run ethically & on the principles of management it can not
only attain its organizational goals but also the goal of development of society & contribute to
social welfare.
Reason : As it is run ethically & on the well-established principles of management any
organization is bound to succeed & grow. Find the correct option:
A. A is correct but R is false B. R is correct but A is false
C. Both A & R are correct D. Both A & R are false
Q.28. Assertion: The principles of Harmony not discord & concept of Mental Revolution
though appear to be different yet they do convey similar meaning.
Reasoning: The essence of both is the underlying spirit of mutual co-operation.
A. Both A & R are correct B. Both are incorrect
C.A is correct but R is false D. R is correct but A is false
Q.29. Assertion: Though Taylor’s focus was from the viewpoint of improving workers
efficiency & that of Fayol’s from improving mangers efficiency yet both are complementary to
each other contributing to overall improvement of the organization.
Reason: Both are like two sides of the same coin.
Find the correct option:
A. Both are correct B. Both are incorrect
C. A is correct but R is false D. R is correct but A is false
11
Q.30. Assertion: Recent performance of Indian Athletes in Paralympic has stressed the need
for promoting sports in India.
Reason: GOI has asked the corporates to spend 2% of their profits on CSR and especially for
the promotion of Sports.
A. Both A & R are incorrect B. A is true but R is incorrect
C. A is true & R is supportive of A D. R is true & A is supportive of R
CASE STUDY (Q.31 TO Q.34)
Coalgate India Ltd. has been selling it’s toothpastes in India since years. Recent competition
especially from Patanjali Aurveda Ltd, has made it think twice on it’s strategy & products. It has
been constantly innovating its products & have launched Brands like “Ved Shakti” to tackle the
losing market share to Patanjali’s brand “Dant kanti”.
Apart from this, the co. has taken other initiatives like launching consumer awareness drive,
enhancing its donations for promotion of sports under the guidelines of GOI on CSR spending.
The co. has also made new appointments at the Top-level management positions to tackle the
threats of stiff competition & employee poaching by competitor companies.
The co. realized the importance of managing all the three dimensions i.e. the work, people &
operations on a continual basis.
Q.31. Which objective is being pursued by Coalgate India Ltd.?
A Organizational B. Social
C. Personnel D. All the above
32. Coalgate India Ltd. is trying to make changes in which level of management?
A. Lower B. Middle
C. Top D. None of the above
33. Which feature of management is reflected in the above case?
A. Dynamic B. Pervasive
C. Group activity D. Intangible
34. Which dimensions of management are reflected in the given case?
A. Management of Manpower, Work & Operations
B. Management of Machines, Workforce & funds
C. Management of Money, Material & Operations
D. Management of Organization, Material & Money
12
CASE STUDY (Q.35 TO Q.38)
Ms.Kriti has set up a business under the Mahila Udyojika Program of GOI. She wisely made
use of most of the principles of Fayol & Taylor in her co. She created a strong team & divided
the work in most scientific way. She personally ensured that the proper balance is maintained
between authority granted & responsibility fixed.
In order to facilitate hassle free work she promoted dispersal of authority at levels of
management across the co.
As a result the spirit of team work as well as cooperation not individualism prevailed in the co.
leading to stupendous success.
Q.35 Which importance of management is highlighted in the given case?
a. Increases efficiency & Effectiveness b. Helps achieve personal goals
A. Only option a B. Only option b
C. Both a & b D. Neither a nor b
Q.36. Which principles of Fayol are highlighted in the above case?
A. Division of Work & Authority & Responsibility B.
Division of Work & Authority & Responsibility, Centralisation & Espirit de corps
C. Order, Scalar chain & Equity
D. Fair remuneration
Q.37. Which principle of Taylor is also highlighted in the above case?
A. Rule of Thumb B. Harmony not Discord
C. Cooperation not individualism D. Development of full potential
Q.38. The meaning of principle of Espirit de corps is quite similar to the principle of
A. Unity of Direction B. Subordination of individual interest
C. Harmony not discord D. All the three above
13
ANSWER:
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 C 11 D 21 A 31 D
2 A 12 B 22 D 32 C
3 C 13 A 23 B 33 A
4 B 14 C 24 D 34 A
5 B 15 C 25 D 35 C
6 B 16 A 26 D 36 B
7 C 17 B 27 C 37 C
8 A 18 B 28 A 38 D
9 B 19 B 29 A
10 B 20 A 30 C
14
CH. 3 BUSINESS ENVIRONMENT
1. Demand for Sari may be fairly high in India, whereas it may be almost non-exist in
France. Which characteristics of Business environment are referred here?
(a) Dynamic (b) Inter-relatedness
(c) Complexity (d) Relativity
2. Since business environment consist of numerous interrelated and dynamic conditions or
forces which arise from different sources it becomes difficult to comprehend at once what
exactly constitute a given environment. The characteristics of business environment
highlighted here is
(a) Relativity (b) Complexity
(c) Uncertainty (d) Totality
3. Business environment is keeps on changing whether in terms of technological
improvement, shift in consumer preference or entry of new competitors in the market.
Which characteristics of business environment referred here?
(a) Dynamic (b) Relativity
(c) Uncertainty (d) Complexity
4. Business Environment includes
(a) Specific forces (b) General forces
(c) Both Specific and General (d) None of these
5. Business environment is very difficult to predict future happenings, especially when
environmental changes taking place too frequently. The feature of Business environment
referred here is
(a) Dynamic (b) Relativity
(c) Uncertainty (d) Complexity
6. Which of the following does not characterize the business environment?
(a) Uncertainty (b) Employees
(c) Relativity (d) Complexity
15
7. Which of the following best indicate the importance of business environment?
(a) Identification (b) Improvement in performance
(c) Coping with rapid changes (d) All of these
8. Which of the following is an example of social environment?
(a) Money supply in the economy (b) Consumer Protection Act
(c) The Constitution of the country (d) Composition of family
9. Which environment describes characteristics of society in which the organization exist
(a) Economic environment (b) Social environment
(c) Political environment (d) Legal environment
10. Many multinational food chains such as KFC, Mc Donald’s, Domino’s etc. have altered
their menu according to Indian taste and culture. Name the dimension of business
environment which is responsible for this step.
(a) Economic environment (b) Social Environment
(c) Technological environment (d) Legal environment
11. Just after declaration of Lok Sabha Election 2009 results, the Bombay Stock
Exchange’s price index rose by 2100 points in a day. Identify the environmental factor
which led to this rise.
(a) Economic (b) Political
(c) Social (d) Legal
12. It means integrating economy of a country with world’s economy to facilitate the free
flow of trade, capital, person, and technology across borders.
(a) Liberalization (b) Privatization
(c) Globalization (d) None of these
13. It means liberating Indian business and industry from all unnecessary government
controls and restrictions
(a) Liberalisation (b) Privatisation
(c) Globalisation (d) None of these
16
14. It means giving greater role to the private sector in the nation-building process and
drastically reducing the role of the public sector
(a) Liberalisation (b) Privatisation
(c) Globalisation (d) None of these
15. How many times, India has faced Demonetization so far
(a) 2 (b) 3 (c) 4 (d) 5
16. Assertion (A) Entry of new firms in the market may make an enterprise think afresh
about how to deal with the situations
Reason (R) Business environment assist in planning and policy formulation.
(a) Both Assertion(A) 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
17. Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost
non existent in America. Reason
(R) Business environment consists of numerous inter-related and dynamic conditions of
forces which arise from different sources.
(a) Both Assertion(A) 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
18. Assertion (A) Turbulent market conditions, less brand loyalty, Kodivision and
subdivision of market are just a few of the images to describe business environment.
Reason
(R) Business environment is getting dynamic where changes are taking place at a slow
pace.
17
(a) Both Assertion(A) 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
19. .Assertion (A) Manufacturers have now flexible manufacturing systems.
Reason (R) Agricultural and industrial production trends are the economic dimensions of
the environment which affect the business environment.
(a) Both Assertion(A) 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
20. Assertion (A) Reservation of jobs for backward classes as per the constitution of India
affects the business environment. Reason
(R) Various elements of legal dimensions affect the business environment.
(a) Both Assertion(A) 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
21. Which dimension of business environment is concerned with improvement and
innovations, which provides new ways of producing goods and services?
(a) Economic (b) Political (c) Technological (d) Social
22. The court issued the order that it is essential for the vehicles to be smokeless and that
any one violating this order shall have to pay fine. Identify the dimension of business
environment.
(a) Economic (b) Political (c) Social (d) Legal
18
23. Online reservation of railway ticket is an example for which types of dimension of
business environment.
(a) Economic (b) Political (c) Social (d) Technological
24. The sale of greeting cards, sweets, chocolate, etc. increases in India during Diwali.
Name the dimension of environment related to this.
(a) Economic (b) Political (c) Social (d) Technological
25. The Finance Minister reduced the repo rate to overcome recession. This is related to
which dimension of business environment.
(a) Economic (b) Political (c) Social (d) Technological
26. If new products are introduced in market by new technique, which type of environment
is indicated by it.
(a) Economic (b) Political (c) Social (d) Technological
27. Under which environment does change in taste, fashion and trend falls in.
(a) Economic (b) Political (c) Social (d) Technological
28. Liberalization means
(a) Reducing number of reserved industries from 17 to 8
(b) Liberating the industry, trade and economy from unwanted restrictions
(c) Opening up of economy to the world by attaining international competitiveness
(d) Free determination of interest rates
29. Bank reduces the interest rate on house loans. Identify the type of dimension of
environment
(a) Economic (b)Political (c) Social (d) Technological
30. The court passed an order that all schools must have water purifier for the school
children
(a) Economic (b) Political (c) Social (d) legal
19
31. Life expectancy, Birth and death rates, population shifts, consumption habits etc. are the
elements of
(a) Economic (b) Political (c) Social (d) legal
32. This dimension of environment includes such factors as interest rates, inflation rates,
and changes in disposable income of people, stock market indexes and the value of rupee.
(a) Economic (b)Political (c) Social (d) legal
33. Legal environment includes
(a) Various Laws and Legislative Act
(b) Administrative order issued by government authorities
(c) Court judgments
(d) All of these
34. It includes forces related to scientific improvements and innovations which provides new
ways of producing goods and services and new ways of operating business.
(a) Economic (b)Technological (c) Social (d) legal
35. Excel Publishers, a book publishing house published books on various subjects based
on new CBSE question pattern before any other publishing house could print it. The
importance of business environment mentioned here is:
(a) First mover advantage
(b) Early warning signal
(c) Tapping useful recourses
(d) coping with rapid changes
36. As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and
regulations are different from that of his country. Which feature of business environment is
reflected here:
(a) Relativity (b) Complexity (c) Uncertainty (d) Totality
37. Demand for LED TVs are increasing day-by-day. Thus, TV manufacturers have started
making LED TV’s instead of LCD. Significance of business environment given in this case
is.
(a) First mover advantage
20
(b) Early warning signal
(c) Tapping useful recourses
(d) coping with rapid changes
38. Maruti Udyog Ltd. becomes the leader in the market of small car segment. The
Significance of business environment highlighted here is.
(a)Identify opportunities and getting first mover advantage
(b) Identify the threat and early warning signal
(c) Tapping useful recourses
(d) coping with rapid changes
39. Technology is improving day-by-day. Which feature of business environment is
highlighted in the given statement?
(a) Relativity (b) Complexity (c) dynamic (d) Totality
40. “Equal pay for equal work” is an example of which dimension of business environment.
a) Economic (b)Political (c) Social (d) legal
CASE STUDY (Q.41 TO 44)
Read the following text and answer the following questions on the basis of the same:
The name and taste of Coca-Cola is known to almost each and every individual in India as
well as throughout the world. This carbonated soft drink holds the most market share in the
soft drink market and got itself a special seat in each and every gathering. The Coca-Cola
Company has on occasion introduced other cola drinks under the Coke name. The most
common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet
Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the
list goes on. It has capitalized on each and every opportunity to market itself effectively and
place itself in the middle of every gathering. The main reason for such an outstanding
placement of product goes to the way they have established the connection between every
occasion and the need for Coke to be present there, product design and creative
advertising.
41. in the context of the above given case, identify one valid importance of Business
Environment.
21
a) Enables a firm to identify opportunities and getting first mover advantage
b) Uncertainty
c) Delay in action
d) Pervasive function
42. Identify the feature of Business Environment which The Coca-Cola Company managed
to get in their favour.
a) Complex
b) Specific and general forces
c) Futuristic
d) Mental Exercise
43. Which business environment did Coca-Cola majorly tap into?
a) Technological Environment
b) Social Environment
c) Political Environment
d) Economic Environment
44. Which of the following is not a product of COCA-COLA?
a) Diet Coke Caffeine free
b) Coca-Cola Zero Sugar
c) Coca-Cola Avocado
d) Coca-Cola Cherry
22
ANSWERS:
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 D 11 B 21 C 31 C
2 B 12 C 22 D 32 A
3 A 13 A 23 D 33 B
4 C 14 B 24 C 34 D
5 C 15 B 25 A 35 A
6 B 16 A 26 D 36 A
7 D 17 B 27 C 37 D
8 D 18 C 28 B 38 A
9 B 19 B 29 A 39 C
10 B 20 B 30 D 40 C
41 A
42 A
43 B
44 C
23
CH. 4 PLANNING
1. Planning is ________
(a) Flexible (b) Stable
(c) Rigid (d) None of these
2. Planning is the ________ function of management.
(a) First (b) Second
(c) Third (d) Fourth
3. ________ is the essence of Planning.
(a) Organizing (b) Controlling
(c) Forecasting (d) Directing
4. Planning results in decreasing ________
(a) Coordination (b) Proper use of resource
(c) Future uncertainties (d) Control
5. Name the function of management which involves setting objectives and developing
appropriate courses of action to achieve these objectives.
(a) Directing (b) Organizing
(c) Planning (d) Staffing
6. What out of the following is the example of objective?
(a) Raising sales up to ™5000 crore (b) Giving employment to 1000 people
(c) Raising income by 3% (d) All of these
7. “The basis of promotion of employees will be age.” With which policy is this statement
related?
(a) Personnel (b) Sale
(c) Pricing (d) None of these
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8. Which out of the following policies will you recommend?
(a) Strict (b) Lenient
(c) Both (a) and (b) (d) None of these
9. Which of the following is not a benefit of planning?
(a) Planning reduces overlapping and wasteful activities.
(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.
10. “Which of the following statements is not true with reference to planning?
(a) Planning is a pre-requisite for controlling.
(b) Planning does not lead to rigidity.
(c) Planning enables a manager to look ahead and anticipate changes.
(d) Planning facilitates co-ordination among departments and individuals in the
organisation.
11. All other managerial functions are performed within the framework of the plans drawn.
Identify the related feature of planning.
(a) Planning focuses on achieving objectives.
(b) Planning is pervasive.
(c) Planning is futuristic.
(d) Planning is primary function of management.
12. Which of the following is not the internal element of limitation of Planning?
(a) Capital (b) Raw material
(c) Increase in population (d) Machine
13. What resources are specially kept in view in planning?
(a) Limited (b) Unlimited
(c) Both (a) and (b) (d) None of these
25
14. At what managerial level planning is needed?
(a) Top level (b) Middle level
(c) Lower level (d) All the levels
15. When can the planning process be ignored?
(a) In ordinary situation (b) In case of emergency
(c) Both the above (d) in no situation
16. Planning of different departments is ________
(a) Independent (b) Individual
(c) Mutually dependent (d) none of these
17. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting
objectives, Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative
courses, Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
(d) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses
18. Which one of the following is not a step of planning?
(a) To forecast (b) Establishing objectives
(c) Valuation of objectives (d) Induction of employees on the job
19. Planning seeks to bridge the gap between---------
(a) Past and present position
(b) Past and future position
(c) Present and future position
(d) None of above
26
20. Planning is helpful in increasing ________
(a) Cost (b) Loss
(c) Efficiency (d) None of these
CASE STUDY (Q.21 TO 24)
Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture
into agriculture, for this purpose she set out specific goals, objectives.Everything was a
challenge because she was not aware about farming. She learned every activity and, in the
process, thought of assisting other farmers as well. She eventually launched her own
company Agro limited.She wanted to be sure that the activities effectively met the best
interest of the company and the farmers.Hence, she prepared an annual plan for
production, sales and marketing, through sales forecasting she’ll I realized that farmers
were growing only one or two crops. On account of this the land remained idle for the rest
of the year. she identified and evaluated different alternatives through which the farms
could be utilized throughout the year.She used her foresight and systematic thinking,based
on analysis of all fixed analysis of all the facts and examined and evaluated all the
alternatives. She presented a plan to the Farmers Union, where after harvesting the
primary crops, seasonal vegetables and foods could be grown.
21. Hence she prepared an annual plan for production sales and marketing through sales
forecasting. Which feature of planning is depicted in this statement?
(a) Planning is continuous
(a) Planning is futuristic
(c) Planning involves decision-making
(d) Planning is a mental exercise
22. For this purpose she set out specific goals objectives and activities which feature of
planning is depicted in this statement?
(a) Planning focuses on achieving objectives
(b) Planning is a primary function of management
(c) Planning involves decision-making
(d) Planning is a mental exercise
27
23. Thus, she identified and evaluated different alternatives through which the farms could
be utilized throughout the year. Which feature of planning is depicted here?
(a) Planning is pervasive
(b) Planning is continuous
(c) Planning his futuristic
(d) Planning involves decision-making
24. She used her foresight and logical and systematic thinking based on analysis of all
facts and examined and evaluated all the alternatives. which feature of planning is depicted
here?
(a) Planning focuses on achieving objectives
(b) Planning is a primary function of management
(c) Planning is mental exercise
(d) Planning involves decision-making
25. Generally, it is thought that planning is related to the planning cycle. It means that a
plan is framed, it is implemented and it is followed by another plan and so on. The above
statement is related to a feature of planning, identify it.
(a) Planning is continuous.
(b) Planning is futuristic.
(c) Planning involves decision making.
(d) Planning is pervasive.
CASE STUDY (Q. 26 TO 28)
Sukumar is an energetic middle level manager. He tries to make best plans. For this
he involves foresight and intelligent imagination. Within three years many of his projects
have been very successful. His high success rate is due to his good plans. He always
makes alternative plans and selects the best out of them after considering relevant aspects.
However, he knows it is not necessary that his all plans will be successful. He knows that
sometimes his concern for making very good plans eats a lot of time and energy. His friend
Jyoti suggests him to take suggestions from others when he makes his plans and also
consider plans made by others. Even after so much painstaking Sukumar knows that his
plans can yet fail in the uncertain business environment. He has recently decided to plan
28
carefully in future.
26) According to this case planning is mental exercise?
(a) True (b) false
(c) Partial true (d) partial false
27) Can planning give guarantee for success?
(a) True (b) false
(c) Partial true (d) partial false
28) Which one is primary function of management?
(a) Planning
(b) Organizing
(c) Controlling
(d) Directing
29. Managers when plan, organize, lead and control are called decision makers.
(a) True (b) false
(c) Partial true (d) partial false
30. Which of the following is an assumption of rationality to rationale decision making?
(a) Preference is clear
(b) Final choice will maximize pay off
(c) The problem is clear and unambiguous
(d) all of the above
31. Making decision on the basis of experiences, feelings and accumulated judgment is call
as:
(a) Decision making
(b) Structural problem
(c) Intuitive decision making
(d) None of above
29
32. Availability bias is when decision makers tend to remember events that are most
recent.
(a) True
(b) False
(c) Partial true
(d) Partial false
33. Which of the following quality a manager must possess to succeed in planning?
(a) Reflective thinking
(b) Imagination
(c) Farsightedness
(d) all of these
34. Plan which is firstly discussed in business plan is mostly
(a) Marketing plan
(b) Financial plan
(c) Personnel plan
(d) Production plan
35. First step in planning process is to:
(a) setting and objectives
(b) Evaluate alternatives
(c) SWOT analysis
(d) None of above
CASE STUDY (Q. 36 TO 38)
Simplex limited had been taken over by Mundhra Group immediately following India’s
independence. Since then, it enjoys a rich record of industry presence and experience. In
2005, with the aim to accelerate growth the company had gone through several rounds of
meetings and discussions before launching ERP system to attract large projects. The
management had done effective forecast and critical thinking regarding allocation
resources to reduce wastage. For this purpose, the company had laid down multiple
30
courses of action to meet the challenge of adverse situations. In 2008, the company
suffered loss in many projects due to the great recession despite taking many cost cutting
measures. The management had taken utmost care regarding the possible outcome and
timely review of the plans to achieve the set target during that hard time. In 2010 the
system implemented successfully which subsequently helped the company to execute
numerous projects with precision and timeliness.
36. “In 2005, with the aim to accelerate growth the company had gone through several
rounds of Meetings and discussions.” What is the objective mentioned here according to
the process stated here?
a. Developing Premises b. Growth & development
c. Launching IT enabled system d. Cost cutting.
37. “In 2008, the company suffered loss in many projects due to the great recession despite
taking many cost cutting measures.” Which limitation of the management process is
indicated here?
a. It fails to cope with sudden changes b. It involves huge cost
c. It requires critical thinking d. Economic Environment
38 “The management had taken utmost care regarding the possible outcome and timely
review of the Plans to achieve the set target during that hard time.” Which is the last step of
the Process mentioned here?
a. Implementation of plan b. Timely execution of projects
c. Follow up d. To prepare alternative course of action
31
ANSWERS:
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 A 11 D 21 B 31 C
2 A 12 C 22 A 32 A
3 C 13 A 23 D 33 D
4 C 14 D 24 C 34 A
5 C 15 B 25 A 35 A
6 D 16 C 26 A 36 B
7 A 17 C 27 B 37 A
8 C 18 D 28 A 38 C
9 B 19 C 29 A
10 B 20 C 30 D
32
CHAPTER 5: ORGANISING
1 It is the obligation of a subordinate to properly perform the assigned duty.
(A) Responsibility
(B) Authority
(C) Accountability
(D) All of the above
2 Which of the following is not a feature of formal organisation?
(A) It specifies the relationships among various job positions.
(B) The standards of behaviour of employees are evolved from group norms.
(C) It is deliberately designed by the top management.
(D) It places less emphasis on interpersonal relationships among the employees.
3 It arises from the established scalar chain which links the various job positions and
levels of an organisation.
(A) Authority
(B) Top to bottom
(C) All of the above
(D) None of the above
4 Which of the following is not a merit of functional structure?
(A) It promotes control and co-ordination within a department.
(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 occupational specialisation.
5 Identify the correct sequence of steps to be followed in an organising process.
(A) Departmentalisation, Establishing reporting relationships, Assignment of duties,
33
Identification and division of work
(B) Identification and division of work, Departmentalisation, Assignment of duties,
Establishing reporting relationships
(C) Identification and division of work, Assignment of duties, Departmentalisation,
Establishing reporting relationships
(D) Identification and division of work, Establishing reporting relationships,
Departmentalisation, Assignment of duties.
6 It refers to the number of subordinates that can be effectively managed by a
superior,
(A) Organisational structure
(B) Informal organisation
(C) Span of management
(D) None of the above
7 ‘ONIDA INDIA Ltd.’, is engaged in manufacturing of washing machines. The target
of the organisation is to manufacture 500 washing machines a day. There is an
occupational specialisation in the organisation which promotes efficiency of
employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.
(A)Divisional Organisation
(B) Functional Organisation
(C) Informal Organisation
(D) None of the above
8 Under what function of management the relationship between different posts
(positions) is explained?
(A)Planning
(B) Communication
(C) Organisation
(D) Supervision
34
9 Which organisation resists changes?
A. Formal
B. Informal
C. Both (a) and (b)
D. None of these
10 In which situation the divisional structure happens to be appropriate?
A. Where the number of major products is more than one
B. Where the size of the organisation is quite large
C. Both (a) and (b)
D. Where primarily only one product is sold
11 Product specialisation helps in the development of skills.
A. True
B. False
C. Partially True
D. Partially False
12 Decetralization is an extension of delegation.
A. True
B. False
C. Partially True
D. Partially False
13 Delegation do not allows granting of authority to subordinate.
A. True
B. False
C. Partially True
D. Partially False
35
14 Organising never ensures the optimum utilization of resources.
A. True
B. False
C. Partially True
D. Partially False
15 As end result of organisation function, a structure gets created automatically.
A. True
B. False
C. Partially True
D. Partially False
16 Match the following (Q.no.16 – 20):-
(i) Organisational
structure
(a) number of subordinates that can be
managed by superiors
(ii) Span of management (b)Give shape to organizational structure
(c) framework within which tasks are
performed
A) i-b, ii-a
B) i-a, ii-c
C) i-c, ii-b
D) None of these
17
a. Delegation 1.lesser freedom to take own decision
b. Decentralization 2.greater freedom to take decision
3.no freedom
A) a-1, b-2
B) a-2, b-3
36
C) a-3, b-1
D) None of these
18
a. Delegation ensures 1.gossiping
2.Informal relationship
3.peace
4.ease in burden of managers
A) a-1,
B) a-2,
C) a-3,
D) a- 4
19
a. Formal organisazation
originates from
1. right of employees
b. Informal organization
originates from
2. top management
3.result of social interaction among
employee
A) a-1, b-2
B) a-2, b-3
C) a-3, b-1
D) None of these
37
20
a. Organising 1. Designing specific roles to eliminate
ambiguity.
b. Specialization 2. Assigning each task to employees on
the basis of skills.
3. Special person in organization.
A) a-1, b-2
B) a-2, b-3
C) a-3, b-1
D) None of these
21 Manohar was given a task by his superior to prepare a plan in 20 days. He asked
two of his subordinates to work upon two aspects of his task. One of the
subordinates met with an accident and could not complete his work. Who is
answerable for this task?
A. Manohar is accountable.
B. Manohar’s subordinate is responsible.
C. Manohar’s superior is responsible.
D. None of them is responsible.
22 Name the type of organisation which is deliberately design by top management to
achieve a common organisational objective.
A. Informal organisation
B. Corporate organisation
C. Formal organization
D. Non-corporate organisation
23 The form of organisation known for giving rise to rumors is called
A) Centralised organization
B) Decentralized organisation
38
C) Formal organization
D) Informal organization
24 Delegation of authority merely means the granting of authority to subordinates to
operate
A. Within the prescribed limits
B. Without any prescribed limits
C. To any extent
D. As per post approval of managers
25 For delegation to be effective it is essential that responsibility be accompanied with
necessary
A. authority
B. incentives
C. manpower
D. promotion
MCQ ON ASSERTION & REASONING TYPE QUESTIONS (Q. 26 TO 30)
26 Assertion(A): : Responsibility is derived from authority and accountability is derived
from responsibility.
Reason(R): Responsibility is the obligation of a subordinate to properly perform the
assigned duty, for which he/she has been delegated authority by his/her superior.
Once authority has been delegated and responsibility accepted, one cannot deny
accountability.
A. Both Assertion (A) and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.
27 Assertion(A): Delegation does not mean abdication.
Reason(R): A manager is under obligation to perform the delegated task.
A. Both Assertion (A) and Reason (R) are true.
39
B. Both Assertion (A) and Reason (R) are false.
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.
28 Assertion(A): While authority is delegated, responsibility is imposed, accountability
is assumed.
Reason(R): Authority can be delegated by a manager to a subordinate, which
means granting of authority to subordinate to operate within prescribed limits.
Responsibility is the obligation of a subordinate to properly perform the assigned
duty. Accountability implies being answerable for the final outcome.
A. Both Assertion (A) and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.
29 Assertion(A): Delegation helps a manager to extend his area of operations as
without it, his activities would be restricted to only what he himself can do.
Reason(R): A manager, no matter how capable he is, cannot manage to do every
task on his own. The volume of work makes it impractical for him to handle it all by
himself.
A. Both Assertion (A) and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.
30 Assertion(A): A large sized organization can be totally decentralized.
Reason(R): As an organization grows in size and complexity, there is tendency to
move towards decentralized decision making. Complete centralization would imply
concentration of all decision-making functions at the apex of the management
hierarchy.
A. Both Assertion (A) and Reason (R) are true.
B. Both Assertion (A) and Reason (R) are false.
40
C. Assertion (A) is true and Reason (R) is false.
D. Assertion (A) is false and Reason (R) is true.
CASE STUDY (Q.31 TO 34)
Reliance Infocom has diversified itself into several product lines:
Telecommunications, Engineering, financial services
Each subsidiary is self-sufficient with their-own administrative functions, propagating
the belief that people assume the responsibility for the effective implementation of
their decisions and should be given autonomy. This has reduced the need for direct
supervision by superiors, has promoted flexibility, initiative and faster decision
making. The orders of customers are never delayed, as a result of good policy
decisions ot top management. The philosophy of the top management awards
greater autonomy to the lower levels of management.
31 Identify a suitable framework for the company within which the managerial and
operating task are to be performed.
(A) Functional structure
(B) Divisional structure
(C) Formal Organisation Structure
(D) Informal Organisationstructure
32 ldentify the philosophy of the top management highlighted in the above case: -
(A) Centralisation
(B) Decentralisation
(C) Delegation
(D) None of these
33 This has reduced the need for direct supervision by superiors, has promoted
flexibility, initiative and faster decision making." Identify the point of importance of
the philosophy of top management, as highlighted above.
(A) Develops initiative among subordinates
(B) Develops managerial talent for the future
41
(C) Relief to top management
(D) Better control
34 The philosophy of the top management awards greater autonomy to the lower levels of
management.
Identify the point of importance of the philosophy of top management, as highlighted
above.
(A) Quick decision making
(B) Better control
(C) Relief to top management
(D) Facilitates growth
CASE STUDY (Q.35 TO 38)
Vinod Pathak, aged 49 is working in an aviation company. He is the senior-most
employee in his division. He is even senior to the division manager, Rajesh. Vinod
Pathak is considered one of the most committed, capable and hardworking
employees. As a result of his abilities and seniority, he generally received the work
assignments of his choice. Although there was no formal designation of various
special projects assigned to Vinod Pathak , he handled them as a matter of routine.
A problem developed when an able and intelligent person Nanakram, aged 33, was
appointed by Rajesh . Nanakram, previous three years experience in the closely
related work, made it possibie for him to catch on to the routine work of his new job
more rapidly than was customary for a new employee. On several occasions, Rajesh
noticed the tension developing between the two employees. However, he didn’t want
to get involved in their personal issues as long as the work was completed effectively
and efficiently by them. One day, the tension between them reached the boiling point
and Vinod Pathak complained to Rajesh stating that his duties were being largely
taken over by Nanakram . Rajesh issued the order stating the clear allocation of the
jobs and related duties between the two. He further clarified the working relationship
between them by specifying who was to report to whom. This helped in reducing the
workload, enhancing productivity and removing ambiguity.
42
35 Identify the function of management highlighted in the above case.
(A) Planning (B) Organising
(C) Staffing (D)Directing
36 Identify the step in the process of the function of management identified, which has
not been carried out properly and contributed to this problem.
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of ducies
(D) Establishing authority and reporting relationships
37 Identify the two step in the process of the function of management identified, which
have been taken by Rajesh to respond to the complaint of Vinod Pathak.
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationships
38 identify the point(s) of importance of the function of management identified, as
reflected in the above case.
(A) Clarity in working relationship
(B) Benefits of specialisation
(C) Effective administration
(D) All the above
43
ANSWERS:
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 A 11 A 21 A 31 B
2 B 12 A 22 A 32 B
3 A 13 B 23 D 33 C
4 C 14 B 24 A 34 D
5 B 15 A 25 A 35 B
6 C 16 A 26 A 36 C
7 B 17 A 27 C 37 C&D
8 C 18 D 28 D 38 D
9 B 19 B 29 A
10 C 20 A 30 D
44
CH. 11 MARKETING
1. Rohan, a young Indian always buys packaged products. Packaging is important.
According to you it helps in
A. Helps in grading B. Product differentiation
C. Rising standard of health and sanitation D. Both (B) and (C)
2. If you manufacture your products according to the requirement of customers, then that
may be a key to the success of your business unit.
A. Product concept B. Production concept
C. Selling concept D. Marketing concept
3. According to the modern marketing concept, which of the following statements is true?
(A) It refers to the group of people who do not have the ability but willingness to buy a
particular product.
(B) It refers to only the set of people who have the purchasing power to buy a
particular product
(C) It refers to the set of actual and potential buyers for a product
(D) It refers only to the people who show interest in a particular product.
4. Vijay is planning a start up a venture for spices grinding services at door step. He has
decided to charge Rs 10 per 500 gms. for soft ones & Rs 30 per 500 gms. For hard
ones. Identify the element of marketing mix which is not being described in the above
case.
(A) Product (B) Place (C) Price (D) None of the above
5. Sanjay purchased a bike of Bajaj India Ltd., ‘pulsar 180 cc’ in 2020. After six months
electric digital meter of the bike becomes dysfunctional. Sanjay faces a few problems
due to that. He makes Sandeep, friends of his know about this. Sandeep had also
purchased the same bike in 2019, which unfortunately met an accident and got
crashed. The bike was not insured, so he didn’t get that repaired as repairing cost was
a bit higher. That Scrap of Sandeep’s bike is out of use now. Yet, digital meter of the
same looks in good condition because it remained intact in that accident. Sandeep
45
suggested Sanjay to use that digital meter of his bike. Sanjay checks the same and
finds that it is in working condition and gets that fitted in his bike at slot concerned and
that meter shows all relevant information in digital form. Both friends became very
happy on this adventurous task of them.
Which function of marketing is highlighted there?
(A) Grading (B) standardization
(C) product design and development (D) branding
6. Registering a trademark gives this privilege to the owner:
(A) Finance (B) Fame (C) Protection (D) Information
7. Ajay sets up a small manufacturing unit for manufacturing eco-friendly packaging
material. She has decided to market her products through the conventional channel of
distribution, which involves wholesalers and retailers. Because they demand for their
commission, which is a part of selling cost; so he will have to increase the price of his
product by that extent. Ajanta Ltd. and Pargati Ltd. also manufacture the same type of
product and sell that @Rs.50 per unit. Ajay has to keep that in mind. Last year
government also circulated an order according to which, price of such products can’t
be more than Rs.55 per unit.
A few factors, which are kept in mind at the time of deciding price of a product may
have been considered by Ajay are following:
1. Profit maximization
2. Production cost
3. The utility and demand
4. Extent of competition in the market
5. Government and legal regulations
Here we see:
A. 2,3,4,5 are considered by Ajay
B. 2,3,4 are considered
C. 1,2,3,4 and 5 are considered
D. just 2, 4 and 5 are considered
8. One of my friend Mr Akshay said that Mahashay Dharampal , Ex. MD of MDH masala
would often appear in the advertisements of MDH masala when he was alive .
46
Because he himself was directly interacting with his customers by appealing them to
buy products of MDH, Akshay belived that it was a personal communication from the
side of MDH.
A. Whatever Akshay believes, is true
B. Is false
C. Neither true nor false
D. Partially true
9. Which of the following items cannot be marketed?
A. Swachh Bharat abhiyan
B. Candidates in election
C. Dinner with Mahendra Singh Dhoni
D. None of the above
10. Which of the following is not an advantage of branding?
A. Enables making product differentiation
B. Helps in advertising and display programs
C. Differential pricing
D. Provides Ease in distribution of products
11. Match the following and choose the correct alternative:
1. A name, term, sign, symbol, design or some combination of them
used to identify the products of one seller and to differentiate
them from those of the competitors
A. Trademark
2. The verbal component of a brand B. Brand mark
3. The part of a brand which can be recognised but which is not a
utterable C. Brand
4. A brand or part of a brand that is given legal protection D. Brand name
A. (1) - (C) , (2) - (D), (3) - (B), (4) - (A)
B. (1) -(A), (2) - (B) ,(3)- (C) , (4) – (D)
C. (1) - (B) , (2)- (A), (3)- (D), (4) – (C)
D. (1)- (D), (2) – (C), (3)- ( A), (4)- (B)
E.
47
12. Marketing continues after selling also.
A. True B. False C. Neither true nor false D. Partially false
13. In order to improve its competitive edge, Hindustan Unilever Ltd. has changed the
packaging of its hair care product named, “Indulekha”. Those ones 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 and has not to
oil hair by hand. Now customer has just to squeeze the oil bottle in hair for oiling,
which ensures minimum wastage of oil. Name the marketing function being explained
in the given lines.
(A) Product designing and development (B) Customer support services
(C) Promotion (D) Physical distribution
14. ................ is an extension of the marketing concept?
A. Production concept B. Selling concept
C. Product concept D. Societal marketing concept
15. Match the following on the basis of their feature by using the given options:
A. Advertising 1. Paid form
B. Personal selling 2. Provides direct feedback
3. Promotes good image among competitors
Choose the correct option
(A) A- 3, B- 1, (B) A- 2, B-1 (C) A-3, B- 2 (D) A-1, B-2
16. Choose the odd one out from the following:
A. Himalayan Ltd. Approaches and selects Neeraj chopra as their endorser for
promoting their products through ads and gets those ads telecasted on certain TV
channels.
B. Cipla Ltd. Sends their sales representatives to hospital for convincing doctars for
recommending their medicines.
C. Himalayan Ltd. Offers 30% discount to customers on protein powder in the month
48
of January
D. Wow care Ltd. Produces foam facewash with built in face brush, fixed on neck of
bottle of product; due to which one will not have to use his hands for rubbing that
foam on face.
17. Dinesh, A Fitness freak; who always be very cautious regarding choices he makes for
all edible products. He believes that health products which are available at cheaper
prices may be harmful for kidney and liver. From the very beginning he has been
purchasing health supplements like whey proteins , peanut butter from named
brands like ‘My protein', and ‘Muscle blaze’, which sell their products at much higher
prices in comparison with those of others. Which advantage or disadvantage of
branding from the viewpoint of a customer is highlighted there :
A. Status symbol B. Helps in product identification
C. Ensures quality D pricing of a product
18. In a government school chalk is used throughout the year. So, they purchase that in
bulk. Recently, they placed an online order for 200 chalk boxes. The boxes were
delivered to them in a corrugated box. Identify this level of packaging which facilitated
movement of the product.
(A) Primary package (B) Secondary packaging
(C) Transportation packaging (D) None of the above
19. Patanjali Ayurvedic Company manufactures and offers a number of shampoos in
different variants according to the need of one’s. They sell shampoos for thick hairs,
hair fall control, for dandruff, for ruff hairs and for a few more; which is marked on the
labels of the products. Which function of labelling is highlighted here:
A. Describe the product and specify its contents
B. Identification of the product or brand
C. Grading of products
D. Helps in promotion of products
20. During lockdown a few representatives of Tata Motors Ltd. were present at a few
selected railway stations for a number of months. They were offering free masks (on
which Tata motors was printed along with brand symbol of Tata) to those passengers
who were not equipped with masks. Those employees of Tata limited were
announcing regarding that free distribution of masks, throughout the day. A number of
passengers were taking masks from them as they did not bring their masks from
49
home or from shop due to any reason. Here this piece of work of Tata Ltd. Is :
A. Advertising B. Personal selling
C. Sales promotion D. Public relationship
21. Two fruit vendors A and B purchased fruits from same supplier at the beginning of the
day, which were available on that very day. They purchased articles of same type,
quantity, quality and at the same rate. But B is very talkative. He announces about,
glorify and endorses his products very loudly in the fruit market. His promotional and
marketing skills are very sound and aggressive; due to which people get attracted and
he sells all his fruits till 5:00 p.m. On the other hand, A is able to sell just 50 percent of
total purchase so far because he is very shy and formal in marketing of his products.
Which marketing concept is highlighted in the above case.
A. Product concept
B. Marketing concept
C. Selling concept
D. Production concept
22. In a village in Haryana, an illiterate old man goes to a retailer and says , ‘’bhai, koi ek
chota Colgate dena kam passy ka sasta saa.’’ (brother, please give me any small tube
of Colgate, available at cheaper price). Shopkeeper gives him a tube of ‘PATANJALI
DANT KANTI’ for Rs. 20. Then old man asks from shopkeeper, ‘’Ye kon si colgate h?’’
(which Colgate is this?). Shopkeeper smiles and says, ‘’Ye Patanjali wali hai, kaka.’’
(it’s of Patanjali , uncle). The old man takes that and says,’’Aaj kal to Colgate bhi bhut
si company ki aany lagi hai’’ (now these days Colgate is manufactured by a number of
companies.). He takes that article and departs. For that old man here ‘Colgate’ is:
A. A brand
B. A generic product name(toothpaste)
C. Patanjali
D. A cheaper article
23. Pargati refuses to buy a headphone for Rs. 2000 as she believes that real worth of this
product can never be that much. Identify the factor related to pricing decision being
discussed here :
A. Cost of the product
B. Government and legal regulations
C. The utility and demand
D. Pricing by competitors
50
24. Which of the following doesn’t start (starting point) from factory ?
A. Product concept
B. Production concept
C. Selling concept
D. Marketing concept
25. ‘’Providing information required by law’’ is a function of which component of product
mix ?
A. Packaging
B. Branding
C. Labelling
D. Legal environment
26. Assertion: Personal selling is a paid and impersonal form of communication.
Reason: Personal selling is one of the most important component and tool of
promotion mix
A. Assertion is true, reason is false
B. Assertion is false , reason is true
C. Assertion and reason both are true and reason explains assertion
D. Assertion and reason both are true but reason doesn’t explain assertion
27. Assertion: ‘Gathering and analyzing market information is the basic and primary
function of marketing in which manufacturer gets to know about choices of customers.
Reason: ‘Gathering and analyzing market information’ is based on information
received from another important function of marketing ‘customer support services”
through which customers share their desires and choices regarding quality of products.
A. Assertion is true, reason is false
B. Assertion is false , reason is true
C. Assertion and reason both are true and reason explains assertion
D. Assertion and reason both are true but reason doesn’t explain assertion
28. Assertion: An old man, who had vision impairment, was not able to read small words
properly, identifies the required product, Dabur Chywanprash by a large and bold
picture of ‘trunk of tree’ printed on its label, which is called brand mark.
Reason: Branding helps a firm in distinguishing its products from that of its
competitors.
51
A. Assertion is true, reason is false
B. Assertion s false, reason is true
C. Assertion and reason both are true and reason explains assertion
D. Assertion and reason both are true but reason doesn’t explain assertion
29. Assertion : A brand or part of a brand that is given legal protection is called
brandmark
Reason: decisions related to product come under promotion mix.
A. Assertion is true, reason is false
B. Assertion s false , reason is also false
C. Assertion and reason both are true and reason explains assertion
D. Assertion and reason both are true but reason doesn’t explain assertion
30. Assertion: According to production concept consumer favors those products which
are widely available at lower prices
Reason: when marketer decides price for his product, he considers cost incurred,
government restrictions, prices of competitors and objective of pricing and a few other
things.
A. Assertion is true, reason is false
B. Assertion s false , reason is true
C. Assertion and reason both are true and reason explains assertion
D. Assertion and reason both are true but reason doesn’t explain assertion.
CASE STUDY (Q. 31 TO 35)
Read the following text and answer questions on the basis of the same:
“Pargati Ltd.” Are the manufacturer of vegetarian frozen dessert food products made
with coconut milk, fruits, aloevera and other certified ingredients, which are most
suitable ones for ‘VEGANS’. The founders of the Company originally developed this
treat to meet their own family needs but found that their friends and families around
were also keen to use the products. They keep the prices of products quite reasonable
and pocket friendly @ Rs. 400 per kg. for most of the items. These were not only the
vegans, but those also, who were not getting enough environment friendly sustainable
food, appreciated the product. It did not take long for founders to recognize the
potential of their little venture. In the beginning they started production at their own
home and offered and sold product in local family parties and delicious taste forced
guests of those parties to meet the supplier. On certain festival seasons they offer
52
special discount and additional gifts to their customers. All this helped to establish a
strong connection with the prospective buyers and the company could put the product
on shelves of natural food store. Now they print the sign of green leaves, which is an
indicator of vegan products; on the label of their products. The company used a few
marketing activities to grow and expand. The Company began sponsoring booths at
festivals, drawing attention to its newly created vegetarian products. It also
disseminated relevant information to media about its products and the people who
helped in building the company’s reputation. Founders were invited for an interview
with one of the leading TV channels in which they talked about their environment
friendly vegetarian products. To show its gratitude to customers, local business and
government officials who supported the company from the beginning, “Pargati Ltd.”
Hosted a grand party and later involved all of them to raise funds for a few local NGO,
which was engaged in promoting girl child education.. The company also asked its
fans and customers to send songs and poetry conveying their impression about
“Pargati Ltd.” Products and invited their experiences and suggestions for betterment of
product. A few selected suggestions were recognized and rewarded. Now they avail
credit facilities also to their customers. Now they open their branches in certain parts of
the country and offer home delivery of their products at reasonable rates.
31. ‘’These were not only vegans, but also those who could not get enough environment
friendly sustainable food, appreciated the product, as non vegetable food processing
pollutes environment a lot .” Identify the marketing concept in given line.
A) Product B) Production
C) Marketing D) Societal marketing
32. These are a few components of the marketing mix, which may have been used in the
above case
a) Product
b) Price
c) Place
d) Promotion
Components which are used here are
A. a and b only
B. b and c only
C. a ,b and c only
D. a, b, c and d only
53
33. ‘’Now they avail credit facilities also to their loyal and regular buyers.’’ Which function
of marketing is highlighted in above line?
A) pricing of products B) Promotion
C) branding D) customers support services
34. “Now they print the sign (mark) of green leaves, which is an indicator of vegan
products; on the label of their products. Which function of labeling is highlighted in the
above case
A. Identification of brand
B. Describe the products and specify its content
C. Providing information required by law
D. Grading of products
35. In advertising there is a term ‘identified sponsor’. Who is that
A. Advertising agency B. Celebrity like Amitabh Bachchan
C. Manufacturing company D. None of the above.
CASE STUDY (Q.36 TO 39)
Natasha, Saurabh and Adarsh were friends from college days and now they are doing
different kinds of business. Natasha started a footwear manufacturing company and
has decided to identify the needs of the customers to start successful marketing of the
footwears produced by it and for this the company is doing SWOT analysis (Strength
Weakness Opportunity and Threat). Saurabh is a distributor of tea to different places.
He has opened a company which deals in tea selling. He has categorised his tea to be
sold into three different categories Red, Yellow and Green. Adarsh started a
Refrigerator manufacturing company and currently is spending substantial amount of
money to persuade the target customers to buy its refrigerators through
advertisements, personal selling and sales promotion techniques. They regularly meet
and discuss their business ideas and exchange notes on customer satisfaction,
marketing efforts, product designing, selling techniques, social concerns, etc
In one of such meetings, Adarsh told Natasha and Saurabh that his competitor, with an
established brand name has launched a new product in the same name. This is
helping his competitor save a lot of expenses on building reputation and giving an
excellent start to the product. The new product is doing amazingly well and has caught
attention of the newspapers. Since the product is enjoying a lot of fame the customers
are ready to pay high prices for it in comparison to the same product launch by
54
Adarsh's company
36. ‘’Natasha started a footwear manufacturing company and has decided to identify the
needs of the customers to start successful marketing of the footwears produced by it
and for this the company is doing SWOT analysis (Strength, Weakness, Opportunity
and Threat Analysis)
Which function of marketing has been highlighted in this line
(A) Standardization and Grading
(B) Marketing planning
(C) Gathering and analyzing market information
(D) Transportation
37. Which function of marketing is followed by Saurabh by categorizing Tea into three
categories?
(A) Transportation,
(B) Standardization
(C) Grading
(D) Product designing and development
38. Adarsh started a Refrigerator manufacturing company and currently is spending
substantial amount of money to persuade the target customers to buy its refrigerators
through advertisements, personal selling and sales promotion techniques. Which
element of marketing mix is referred here?
(A) Place
(B) Promotion
(C) Product
(D) Price.
39. Identify the concept of marketing highlighted by Adarsh in the meeting
A. Branding
B. Labelling
C. Packaging
D. None of these
55
ANSWER :
Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS
1 D 11 A 21 C 31 D
2 D 12 A 22 B 32 D
3 C 13 A 23 C 33 D
4 D 14 D 24 D 34 D
5 B 15 D 25 C 35 C
6 C 16 D 26 B 36 C
7 D 17 C 27 A 37 C
8 B 18 C 28 C 38 B
9 D 19 C 29 B 39 A
10 D 20 D 30 D
Page | 1
Sample Question Paper 2021-22
Term 1
Subject: Business Studies
Time: 90 minutes Max. Marks: 40
General instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
Section - A
1. “What distinguishes a successful manager from a less successful one is the ability to
put the principles into practice.” Which aspect of the nature of management is
highlighted in the above statement?
a) Management as a science
b) Management as an art
c) Management as a profession
d) Management is an intangible force.
2. ____________ provides a rational approach for setting objectives and developing
appropriate courses of action for achieving predetermined objectives.
(a) Directing
(b) Staffing
(c) Planning
(d) Controlling
Page | 2
3. Marketing mix is the set of _____________________ that the firm uses to pursue its
marketing objectives in the target market.
(a) Production tools
(b) Promotional tools
(c) Marketing tools
(d) Selling tools
4.
Which level of management is responsible for the welfare and survival of the
organisation?
(a) Top level of management
(b) Middle level of management
(c) Supervisory level
(d) Both (b) and (c)
5. Name the principle of management given by Fayol which when applied would mean
that the workers and management both honour their commitments without any
prejudice towards one another.
(a) Discipline
(b) Mental Revolution
(c) Remuneration of employees
(d) Scalar chain
6. A brand or part of the brand that is given legal protection is called _____________
(a) Brand Mark
(b) Trademark
(c) Brand
(d) Brand name
7. Identify the dimension of the characteristic of management- “it is multidimensional”,
which specifies that the task of management is to make the strengths of human
resources effective and their weaknesses irrelevant towards achieving the
organisation's objectives.
(a) Management of work
(b) Management of people
(c) Management of operations
(d) Management of goals
Page | 3
8.
___________________ involves a variety of programmes designed to promote and
protect a company’s image and its individual products in the eyes of the public.
(a) Advertising
(b) Personal selling
(c) Publicity
(d) Public relations
9.
Which type of organisational structure will you suggest for a firm which has
diversified activities and operations requiring a high degree of specialisation ?
( a) Centralised structure
(b) Decentralised Structure
(c) Divisional structure
(d) Functional structure
10.
“Changes or events cannot be eliminated but they can be anticipated and managerial
responses to them can be developed.” is suggested by the following importance of
planning:
(a) Planning facilitates decision making
(b) Planning promotes innovative ideas
(c) Planning provides direction
(d) Planning reduces the risks of uncertainty.
11.
“Grouping similar nature jobs into larger units called departments” is the step in the
process of one of the functions of management. Identify the function of management.
(a) Planning
(b) Organising
(c) Directing
(d) Staffing
12
The Statement “Planning is a primary function”, suggests that……
(a) Planning precedes other functions
(b) Planning requires logical and systematic thinking
(c) Plan is framed, it is implemented, and is followed by another plan, and so on
(d) Planning is required at all levels of management as well as in all departments of
the organisation.
Page | 4
13
A major decision area under one of the functions of marketing is the decision
regarding marketing intermediaries to be used. Name the function.
(a) Physical Distribution
(b) Gathering and analysing market information
(c) Promotion
(d)Transportation
14.
“The nature of the relationship of our country with foreign countries”, is a major
element of which of the following components of the Business Environment?
(a) Social Environment
(b) Legal Environment
(c) Political Environment
(d) Economic Environment
15.
Which of the following statements is incorrect?
(a) Marketing is a social process
(b) Focus of the marketing activities is on customer needs
(c) Marketing is merely a post production activity.
(d) Marketing mix is a wider term than product mix.
16.
Planning is closely connected with _____________ and ________________
(a) Responsibility and accountability
(b) Delegation and decentralization
(c) Stability and security
(d) Creativity and innovation
17.
_______________ is an important function of marketing which is important not only
for protection of the product but also serves as a promotional tool.
(a) Grading
(b) Labeling
(c) Packaging
(d) Branding
Page | 5
18.
As part of regulations to be followed by advertisers, the advertisement for a new
brand of baby food for infants provides important information for potential buyers
that it is “Not recommended for infants under the age of four months”. Which
dimension of the business environment is highlighted in the above statement?
(a) Social Environment
(b) Legal Environment
(c) Political Environment
(d) Economic Environment
19. The principle of management given by Fayol which aims at preventing overlapping
of activities is:
(a) Division of work
(b) Unity of Command
(c) Unity of Direction
(d) Order
20.
___________________ensures that the subordinate performs tasks on behalf of the
manager thereby reducing his workload and providing him with more time to
concentrate on important matters.
(a) Decentralization
(b) Delegation of authority
(c) Authority
(d) Accountability
21. ____________ is a process of classification of products into different groups on the
basis of some important characteristics such as quality, size, etc.
(a) Standardization
(b) Grading
(c) Product Development
(d) Selling
Page | 6
22.
The sum total of all individuals, institutions and other forces that are outside the
control of a business enterprise but that may affect its performance is known
as________________
(a) Business environment
(b) Social environment
(c) Political environment
(d) Economic environment.
23
Name the concept that refers to the number of subordinates that can be effectively
managed by a superior and determines the number of levels of management in the
organisation.
(a) Organisation structure
(b) Span of management
(c) Hierarchy of authority
(d) Delegation of Authority
24
Taylor believed that there was only one best method to maximise efficiency. This
method can be developed through study and analysis. Identify the principle of
Scientific management being discussed above:
a) Harmony not discord
b) Science not rule of thumb
c) Development of each and every person to his or her greatest efficiency and
prosperity
d) Cooperation not individualism
Section -B
25. India has launched its most advanced Geo-imaging satellite which will allow better
monitoring of the subcontinent, including its borders with neighbouring countries, by
imaging the country 4-5 times a day. The satellite is capable of near real time
monitoring of floods and cyclones. The factor constituting the Business Environment
being discussed above is:
(a) Social environment
(b) Economic environment
(c) Technological environment
(d) Political environment
Page | 7
26.
Which step in the process of planning will precede the step in which the manager is
required to make certain assumptions about the future, which are the base material
upon which the plans are drawn.
(a) Implementing the plan
(b) Identifying alternative courses of action
(c) Setting objectives
(d) Selecting an alternative.
27 “Availability and affordability of the product were considered to be the key to the
success of a firm.” Identify the concept of marketing management highlighted by this
statement.
(a) Production concept
(b) Product Concept
(c) Societal concept
(d) Marketing Concept
28. Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting
the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as
subsidies and low long term interest rates, for films with patriotic and certain other
themes shot in J&K, for giving work opportunities to local artistes, etc. This will
have an impact on business enterprises in the state. Which component of business
environment is highlighted above:
(a) Specific and general forces
(b) Technological environment
(c) Economic environment
(d) Totality of external forces
29
The Topper group is looking to make a foray into manufacturing of semiconductors
and it has set up a business to seize the business opportunity and add to its prospects
in the long run. The company has already pivoted into a number of new projects like
electronics, 5G network equipment, as well as semiconductors. Which economic
objective of management does the business seek to fulfill?:
(a) Survival
(b) Growth
(c) Profit
(d) Efficiency
Page | 8
30.
Product cost sets the lower limits of the price, the utility provided by the product and
the intensity of demand of the buyers sets the upper limit. So, in case of inelastic
demand, total revenue ………………when price increases
(a) Rises
(b) Falls
(c) Constant
(d) Both (a) and (b)
31. “A manager in a conscious manner has to ensure that even where members of a
department willingly cooperate, coordination gives direction to the willing spirit.”
The characteristic of coordination being highlighted above is :
(a) Coordination is the responsibility of all managers.
(b) Coordination is a deliberate function.
(c) Coordination integrates group efforts.
(d) Coordination is a continuous process
32
For the following two statements choose the correct option:
Statement I: Accountability can be delegated
Statement II: Responsibility can be delegated completely
Choose the correct option from the options given below:
(a) Statement I is correct and II is wrong
(b) Statement II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect
Page | 9
33 The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from
the employees at a competitive cost. On the other hand Ramakaant, an employee of
the company wants to get the maximum salary while working the least. The Principle
of management given by Fayol being violated by Ramakaant is ----------------.
(a) Remuneration
(b) Equity
(c) Discipline
(d) Subordination of individual interest to general interest.
34
Arrange the following steps in the process of organising in the correct sequence:
(a) Assignment of duties
(b) Departmentalisation
(c) Identification and division of work
(d) Establishing reporting relationship
Choose the correct option:
(a) (a ) ; (b) ; (d); (c)
(b) (c ) ; (b) ; (a); (d)
(c) (c ) ; (b) ; (d); (a)
(d) (b) ; (c) ; (a); (d)
35 The production department at Karishmaa Ltd, a firm manufacturing readymade
garments for men has an objective to increase production by 10% but the Sales
department does not approve of the increase in production, till changes are brought
about in the product to incorporate latest fashion. These kinds of conflicts bring to
light the following importance of the force that can help to accomplish the linking of
activities of various departments:
(a) Growth in size
(b) Functional differentiation.
(c) Specialization
(d) Efficiency
Page | 10
36 Planning requires logical and systematic thinking rather than guess work. The feature
of planning being referred to in the above statement is:
(a) Planning is a continuous process
(b) Planning is futuristic
(c) Planning is pervasive
(d) Planning is a mental exercise
37 Silico Ltd. has appointed the former Consulting executive of Shri Shakti Ltd. Rajan
Bahl as its Vice President. What will be his basic task?
(a) To integrate diverse elements and coordinate activities of different departments.
(b) To carry out plans formulated by top managers.
(c) To oversee the efforts of the workforce.
(d) Help to maintain quality of output.
38 The marketing management philosophy which is based on the premise that any
activity which satisfies human needs but does not pay attention to the ethical and
ecological aspects of marketing cannot be justified is known as:
(a) Marketing concept
(b) Societal marketing concept
(c) Production concept
(d) Product concept
39 Ravi joined a marketing firm as a Sales manager. On his first day in the company,
during the orientation programme, the CEO of the company told Ravi that he will
have to simultaneously perform the functions of management (planning, organising,
staffing, directing, controlling) all the time. Which characteristic of management was
the CEO referring to?
(a) Management is a continuous process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is goal oriented
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40 Unlike professions such as medicine or law which require a practising doctor or
lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager
to possess any such professional degree. Identify the characteristic of the profession
being discussed above which is not being strictly met by management.
(a) Well defined body of knowledge
(b) Restricted Entry
(c) Professional Association
(d) Ethical code of conduct
41 “Following a pre-decided plan, when circumstances have changed, may not turn out
to be in the organisation's interest.” The limitation of planning being referred to in the
above statement is-------------------------.
(a) Planning does not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning leads to rigidity
(d) Planning is a time consuming process.
42 The technique of Scientific Management given by Taylor, which aims to establish
interchangeability of manufactured parts and products is ...……………………..
(a) Method Study
(b) Motion study
(c) Standardization
(d) Differential Piece wage system.
43
For the following two statements choose the correct option:
Statement I: Advertising is an impersonal form of communication
Statement II: Advertising lacks direct feedback
Choose the correct option from the options given below:
(a) Statement I is correct and II is wrong
(b) Statement II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect
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44
KTX Group is rolling out an initiative to help create wealth for its employees through
the implementation of Employee Stock option. Through motivation and leadership
the management will help individuals to develop team spirit, cooperation and
commitment to the success of the group. The following importance of management is
highlighted above:
(a) Management helps in achieving personal objectives
(b) Management helps in the development of society
(c) Management creates a dynamic organisation
(d) Management increases efficiency
45 If there is a plan to increase production then more labour, more machinery will be
required. This step in the process of planning will involve organising for labour and
purchase of machinery. Identify the step in the planning process being discussed
above.
(a)Identifying alternative courses of action
(b) Setting objectives
© Selecting an alternative
(d) Implementing the plan
46 Taylor proposed eight specialists from whom each worker will have to take orders
from as part of the technique of Functional Foremanship specified by him. Those
with technical, mastery, intelligence and grit may be given-----------------------------
work. Those with energy and good health may be assigned ---------------- work.
(a) Planning, Execution
(b) Execution, Planning
(c) Production, Planning
(d) Implementation, Production
47 A person feeling hungry may get food by offering to give money or some other
product or service in return to someone who is willing to accept the same for food.
The important feature of marketing illustrated above is:
(a) Exchange mechanism
(b) Customer value
(c) Creating a market offering
(d) Needs and wants
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48 Assertion :( A) Planning is futuristic
Reason: (R ) Planning is concerned with the future which is certain and does not
require forecast
( a) Both (A) and ( R ) are correct
( b) (A) is correct ( R) is incorrect
( c ) Both (A) and ( R) are correct, and R is the correct explanation of R
( d) Both (A) and ( R) are correct, and R is not the correct explanation of R
Section C
Read the following text and answer question number 49-54 on the basis of the
same.
'Saarthi', the name has been associated with the manufacturing and sale of Fashion
products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet
in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a
member of the S & M family of companies in 1959. Sarthi Perfumes began
operations in Gujarat in an existing administrative S&M facility in 1985. An
important difference between S&M 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 four 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.
49 Identify the philosophy that is being followed by S&M through which it is dividing
the decision making responsibilities among hierarchical levels.
(a) Delegation of authority
(b) Decentralization of authority;
(c) Division of work
(d) Span of management.
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50. ‘Why is there, need to apply the philosophy being followed by S&M, with caution?
(a) As it can cause a delay in communication
(b) As it can cause disintegration of the organisation
(c) As it can increase the workload of the top management
(d) As it can reduce the chances of growth of the firm.
51 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:
(a) Facilitates growth
(b) Better control
(c) Relief to top management
(d) Quick decision making.
52 Quote the line from above which highlights the importance of the philosophy towards
providing management education to employees.
(a) “Maintain short lines of communication
(b) ‘Accelerate the development of talent’
(c) ‘selective dispersal of authority;
(d) ‘Recognises decision makers need for autonomy’
53 As “The decision making authority is pushed down the chain of command” at S&M
enterprises, it provides the benefit of quick decision making to the organisation
because:
(a) There is no requirement for approval from many levels
(b) Organisation is able to generate more returns
(c) There are innovative performance systems
(d) It's a means of management education
54 The philosophy being followed by S&M is not followed by most other companies.
This tells us that the philosophy is :
(a) Optional
(b) Compulsory
(c) Limited to superior and his subordinate
(d) Merely done to lessen the burden of the manager
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55 Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe
of at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in
their balconies, rooftops and back gardens. As he had been focussed on eating right
the thought of domesticating honey bees to promote healthy consumption habits and
seeing honey being cultivated right before his eyes was mesmerising for him. Identify
the factor constituting the general environment being discussed above.
(a) Economic environment
(b) Social environment
(c) Technological environment
(d) Political environment
56
Zolo, a marketer of cars having 40 % of the current market share of the country aims
at increasing the market share to 70% in next few years. For achieving this objective
the manager of the company specified the action programme covering various
aspects. Identify the function of marketing discussed above:
(a) Customer support services
(b) Gathering and Analysing market information
(c ) Product designing and development
(d) Marketing Planning
57 Style and Fit, a footwear manufacturing company has decided to offer 50 % off on all
its products due to the fall in demand of its products as more efficient substitutes have
been introduced in the market. Identify the pricing objective included by the firm
which has made the firm resort to discounting its product.
(a) Obtaining market share leadership
(b) Surviving in the competitive market
(c) Attaining product quality leadership
(d) Protect the interest of public
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58
A sanitizer 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
59 In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under
her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority
under Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of
Management given by Fayol, If Ismail has to communicate with Hussain who is at
the same level of authority then illustrate the route he will have to traverse.
(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail
(c) Ismail-Chris-Shalleen-Preeti-Hussain
(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain
60
According to the technique of Scientific management “Differential Piece Wage
system” How much more will a worker making 60 units earn as compared to a
worker making 49 units? If the standard output per day is 50 units and those who
make standard output or more than standard get Rs. 75 per unit and those below get
Rs. 65 per unit.
(a) Rs. 4500
(b) Rs. 3185
(c) Rs. 1315
(d) Rs. 3250
Q.NO. MARKING SCHEME
CLASS XII (2021-22)
TERM 1
SUBJECT: BUSINESS STUDIES
1. (b) 2. (c) 3. (c) 4. (a) 5. (a) 6. (b) 7. (b) 8. (d) 9. (d)
10. (d) 11. (b) 12. (a) 13. (a) 14. (c) 15. (c) 16. (d) 17. (c) 18. (b) 19. (C) 20. (b) 21. (b) 22. (a) 23. (b) 24. (b) 25. (c) 26. (c) 27. (a) 28. (c) 29. (b) 30. (a) 31. (b) 32. (d) 33. (d) 34 (b) 35. (b) 36. (d) 37. (a) 38. (b) 39. (a) 40. (b) 41. (c) 42. (c) 43. (c) 44. (a) 45. (d)