G12: BUSINESS STUDIES : ONE MARK TEST QP : PRELIMS:1

1 Reliance Ltd. is engaged in manufacturing plastic buckets. The objective of the company is to manufacture
100 buckets a day. To achieve this, the efforts to all departments are coordinated and interlinked and authority
responsibility relationship is established among various job positions. There is clarity on who is to report to
whom. Name the function of management discussed above.(Choose the correct alternative)
a) planning b) organizing c) directing d) controlling.
2 Which of the following principles of management states that workers should be encouraged to develop and
carry out their plans for improvements in the organisation.
a) Equity b) Division of Work c) Initiative d) Order.
3 ……………………is considered a major element of the partial environment.
a) the extent and nature of government intervention in business.
b) planned outlay in public and private sectors
c) expectations from the workforce
d) Administrative order issued by government authorities
4 Management is :
a) A science b) An art c) Both science and art d) Neither
5 …………….gives shape to the organisation structure.
a) Extent of delegation b) Span of management
c) No of employees d) Planning.
6 Astra builders has to deliver the flats to its buyers on time. Due to this there is a sudden rush of work.
Therefore, the company needs to arrange workers to work at the sites at a short notice. The source of
recruitment which may be used by the company to tap casual vacancy is:
a) Direct recruitment b) Advertisement
c) Recommendation of Employees d) Employment exchange.
7 …………….is the framework within which managerial and operating tasks are performed.
a) Functional structure b) Delegation
c) Organisational structure d) Hierarchy of authority.
8 Match the concept in column I with their respective definition in column II.

(a) A- (i) , B- (ii) , C- (iii).

(b) A- (ii) , B- (i) , C- (iii).
(c) A- (iii) , B- (ii) , C- (i).
(d) A- (i) , B- (iii) , C- (ii).
9 …………… means deciding in advance the capitalization and capital structure of the enterprise.
(a) Financial management (b) financial planning
(c) Treading on equity (d) None of the above.
10 …………………is a market for lending and borrowing of short term funds.
(a) Money market (b) Primary Market
(c) Capital market (d) All of the above.
11 Read the following text and answer question 11 and 12.
Akash steel Ltd. so large and creditworthy company manufacturing steel for the Indian market. It now wants
to enter to the Asian market and decides to invest in new hi-tech machines. Since the investment is large, it
required long-term finance. It decides to raise funds by issuing equity shares. The issue of equity shared
involve huge floatation cost. To meet the expenses of floatation cost the company decides to tap the money
market.
Name the money market instrument company
 (a) Call money (b) Commercial paper
(c) Certificate of deposit (d) Treasury bill.
12 Term days of Money market----------------
13 Which marketing management philosophy implies that products and services are bought not merely because of
their quality or brand name, but because they satisfy a specific need of a customer.
(a) Selling philosophy (b) Marketing philosophy
(c) Product philosophy (d) Societal philosophy.
14 …………………is the function of marketing which is concerned with the cost and location of target market.
(a) Transportation (b) Marketing planning (c) Branding (d) P romotions.
15 Read the following text and answer Q. No. 15 and 16
A company was marketing 'water purifiers' which were very popular due to their quality and after sales
services provided to the customers. The company was a leading company in the market and earning huge
profits. Because of huge profits the company ignored the after sales services. As a result its relations with the
customers got soiled and the image of the company was damaged in the public. Top management became
concerned when the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the
after sales services was its reason. the company started taking measures to protect and promote its favorable
image in the eyes of the public. The company started to get in touch with media to pass on positive
information about the company and its products. Consequently the good will of the company started
improving in the society.
Name the communication tool used by the company to improve its image in the above case.
(a) Advertising (b) Sales Promotion (c) Personal selling (d) Public relations.
16 Name the role of the communication tool identified in Question No. 15
(a) Product publicity (b) Sales promotion
(c) Personal selling (d) Public relations
17 Choose and write the correct option in the following questions.
Management ensure.
a) Providing employment opportunities b) Maintaining profit
c) Ensuring maximum utilisation of resources d) Control on cost.
18 ―Customer satisfaction alone can ensure success which Marketing concept holds this view‖.
a) Production concept b) Product concept
c) Marketing concept d) Selling concept.
19 Products are not purchased but sold, With which point of view is this statement associated.
a) Product b) sale c) production d) marketing.
20 ―Smoking is prohibited in the factory‖. Which element of planning does it exemplify:
a) policy b) rule c) procedure d) method.
21 Who, of the following cannot file a complaint?
a) Individual consumer b) Unorganized consumer Association
c) Central Government d) State Government.
22 Management is a process because it has…………in a sequence.(three levels/five
functions).
23 ..……………. is called the bridge financing.
24 The co-operation of people to a business is got through ………………….
25 In the state Commission, the Complaints regarding the dispute related to the amount of more than 20 lacs and
upto Rupees 1 crore are resolved (true/ false).
26 In the primary market the value of securities is decided by the demand and supply forces. (true/false).
27 The business environment is the sum total of all those forces which exist outside the ambit of business and on
which the business has no control. (true/ false).
28 The training imparted for electrician work and plumber work is known as internship training. (true/ false).
29 The aim of the fatigue study is to differentiate between efficient and inefficient workers. (true/ false).
30 What do you understand by Insider trading.
31 Give two example of floatation cost.
32 What is meant by Span of management?
33 Management has its own theory and principles that have developed over a period of time, but it
also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics.
Identify the feature of science to which the above statement is related.
(a) Systematised body of knowledge (b) Principles based on experimentation
(c) Universal validity (d) None of the above
34 Planning results in decreasing .
(a)Coordination (b)Proper use of resources (c)Future Uncertainties (d) Control
35 is the extension of the marketing concept as supplemented by the concern for the long
term welfare of the society .
(a) Product concept (b)Production concept
(c) Marketing concept (d) Societal marketing concept
36 Mr.Gopal has retired from an organisation, in which he is responsible for implementing plans developed by the
top management. At which level of management was he working?
(a) Top Management (b)Middle Management
(c) Operational Management (d) None of these
37 “A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only
after sufficient opportunity has been given to a subordinate for presenting his case.” Which managerial
principles has been highlighted in aforesaid situation?
(a) Authority and responsibility (b)Unity of direction (c)Initiative (d)Discipline

38 A brand or part of the brand that is given legal protection is called

(a) Brand Mark (b)Trademark (c)Brand (d)Brand name
39 A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA,
Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in
culture, tradition and history. Identify the characteristics of management that has been mentioned here.
(a)Management is a goal oriented process (b)Management is all pervasive
(c) Management is multi-dimensional (d)Management is a continuous process

40 is the marketing function which is concerned with informing the customers about the firm’s products.
(a)Transportation (b)Selling (c)Advertising (d)Public Relations

41 Management has its own theory and principles that have developed over a period of time, but it
also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics.
Identify the feature of science to which the above statement is related.
(a) Systematised body of knowledge (b) Principles based on experimentation
(c) Universal validity (d) None of the above
42 gives shape to an organisation structure.
(a)Extent of delegation (b)Span of management (c)Number of employees (d)Planning
43
“Planning ensures clarity in thought and action, work is carried on smoothly without interruptions. Useless and
redundant activities are minimised,” is suggested by the following importance of planning.
(a)It reduces the risk of uncertainty (b)It reduces overlapping and wasteful activities
(c )It establishes standard for controlling (d)It facilitates decision making

44 Grouping of activities on the basis of functions is a part of

(a)Decentralised organisation (b)Divisional organisation
(c )Functional organisation (d)Centralised organisation
45
It requires application of mind involving foresight, intelligent, imagination and sound judgement. Which feature
of planning is indicate here.
(a)It is Futuristic (b)It involves decision making
(c)It is mental exercise. (d)It is continuous
46 Be Cool Limited has decided to market its products through the conventional network of manufacturer-
wholesaler-retailer-consumer. Identify the function of marketing being described in the above line.
(a)Physical distribution (b)Transportation (c)Warehousing (d)Promotion
47 The attitude of the government officials towards business may have either positive or negative impact upon
business. Which factor of general environment of business is highlighted by this statement?
(a)Technological environment (b)Political environment
(c)Social environment (d)Legal environment
48 Which component of product mix provides status symbol as the advantage to the customer?
(a)Labelling (b)Branding (c )Packaging (d)None of these
49 All other managerial functions are performed within the frame work of the plans drawn. Identify the related
feature of planning.
(a) Planning focuses on achievingobjectives. (b)Planning is pervasive.
( C) Planning is futuristic. (d)Planning is primary function of management
50 It is necessary that goods and services must be made available to the consumers at the right place, in the right
quality and at right time. Identify the concerned elements of marketing mix.
(a) product mix. (b)price mix (c )place mix. (d) promotion mix
51 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

52 Principles of management are flexible because:

(a) they are to be followed absolutely. (b)they are formed by practice and experimentation.
(c )they can be modified as per situation. (d)they are universally applicable
53 refers to the right of an individual to command his subordinates and to take action within the scope of
his position.
(a)Decentralization (b)Responsibility (c )Authority (d)Accountability
54 gives shape to an organisation structure.
(a)Extent of delegation (b)Span of management (c)Number of employees (d)Planning
55 refers to producing goods of predetermined specifications, which helps in achieving uniformity and
consistency in the output.
(a)Standardization (b)Grading (c )Product Development (d)Selling
56 Through environmental scanning business can enjoy
(a)First mover advantage (b)Benefit of taxes
(c )Last mover advantage (d)None of the above
57 may be defined as the framework within which managerial and operating tasks are performed.
(a)Organisational structure (b)Delegation (c )Span of management (d)None of the above
58 According to Taylor, there should be an almost equal division of work and responsibility between workers and
management. All the day long the management should work almost side by side with the workers helping,
encouraging and smoothing the way for them.
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
59 The government of India proposed to encourage e-transactions by encouraging the use of plastic
money(through debit, credit and gift cards) or net banking by allowing deductions in usage charges, fees and
income tax exemptions. Which component of business environment does it represent?
(a) Economic environment (b) Political environment
(c) Legal environment (d) Social environment
60 Which step in the process of planning will precede the step in which the manager is required to identify
alternative courses of action.
(a)Setting objectives (b)Developing premises
(c )Implement the plan (d)Evaluating alternative courses
61 “A pre-requisite for the success of any organisation is to understand and respond to customer needs.” The basic
role of a firm is to ‘identify a need and fill it’. Identify the concept of marketing management highlighted by this
statement.
(a)Production concept (b)Product Concept (c)Societal concept (d)Marketing Concept
62 DigiLocker is the country’s first secured cloud-based platform for the storage, issuance and verification of
documents with the Driving Licence & Vehicle Registration System of the Road Transport Ministry. The
integration of a government department with DigiLocker since its launch last year is one of the biggest of its
kind. It will spare people the trouble of carrying licences & vehicle papers, which can be accessed on phones
using the DigiLocker app. Identify the related dimension of business environment.
(a) Economic dimension (b)Technological dimension
(c )Social dimension (d)Totality of external forces
63 Management is considered to be an art because
(a)The principles of management have universal validity
(b)The principles of management have universal application
(c )Different principles of management are brought into effect differently by different managers
(d)It is not important for the practicing managers to be a member of a professional association.

64 A salesman of a company dealing in pet foods is paid a fixed salary of RS.20,000 per month
and furthermore, Rs.20 extra per unit of the product sold beyond the target sales. Identify the type of cost
being described in the given example.
(a)Fixed cost (b) Variable cost (c )Semi-variable cost (d)None of the above

65 “Coordination is not a one-time function, it begins at the planning stage and

continue till controlling.” The characteristic of coordination being highlighted above is
(a) Coordination ensures unity of action (b)Coordination is an all pervasive function
(c)Coordination is a continuous process (d)Coordination is a deliberate function.
66 From the following two statements choose the correct option:
Statement I: Delegation is a compulsory act because no individual can perform all tasks on his own.
Statement II: Decentralisation is an optional policy decision of management. 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
67 A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the
other suppliers in the market, his son also supplies that raw material. The manager purchases
the raw material from the firm of his son at a rate higher than the market rate.
The Principle of management given by Fayol being violated by the purchase manager is
.
(a) Unity of command
(b) Unity of direction
(c) Subordination of individual interest to general interest
(d)Equity
68 Arrange the following steps in the process of organising in the correct sequence:
(i)Assignment of duties
(ii)Departmentalisation
(iii)Identification and division of work
(iv)Establishing reporting relationship Choose the correct option:

(a) (i ) ; (ii) ; (iv); (iii) (b) (iii ) ; (ii) ; (i); (iv)

 (c) (iii ) ; (ii) ; (iv); (i) (d) (ii) ; (iii) ; (i); (iv)
69 The objective of the Marketing Department of ‘Sunderam Kids Wear Ltd.’ is to increase sales by 10 per cent by
offering discounts. But, the finance department may not approve of such discounts as it means loss of revenue.
These kinds of conflict arise in organisations because each department is performing activities in isolation from
others and barriers between departments are becoming more rigid. Identify the point of importance of
coordination to which this case is related:

(a) Growth in size (b)Functional differentiation

(c)Specialisation (d)None of these
70 Planning involves thorough examination and evaluation of each alternative and choosing the most appropriate
one. The feature of planning being referred to in the above statement is:
(a)Planning is pervasive (b)It is a mental exercise.
(c )It is continuous process. (d)It involves decision making
71 Mirage Ltd. has appointed the former consulting executive Mr. Paul 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
72 ‘They don’t sell what they can make, but they make what they can sell.’ The concept referred in the given
statement is
(a )Marketing concept (b)Societal concept
(c )Selling concept (d)Production concept
73 ‘In order to be successful an organisation must change its goals according to the needs of the environment.’
Which characteristic of management is highlighted in the statement?
(a) Management is dynamic (b)Management is goal oriented process
(c)Management is group activity (d)Management is all pervasive
74 To be able to practice in India lawyers have to become members of the Bar Council which regulates and controls
their activities. Identify the feature of profession to which the above case is related.
(a)Well-defined body of knowledge (b)Restricted entry
(c )Professional association (d)Ethical code of conduct
75 Planning does not foresee everything and that several problems come in the way of effective planning. 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.
76 The technique of Scientific Management given by Taylor, which aims at eliminating unnecessary movements
to ensure timely completion of work is
(a)Method study (b)Motion study (c )Time study (d)Fatigue study
77 For the following two statements choose the correct option: Statement I: Advertising is an impersonal form of
communication Statement II: Personal selling is a personal form of communication. 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
78 “Mr. Gosain, the owner of “Stylish Garments” got a wholesale order of 600 party gowns. He completed the
production without paying extra bonus but could not deliver the gowns timely to the wholesaler and thus the
order was cancelled.
(a)Mr. Gosain is effective but inefficient (b)Mr. Gosain is efficient but not effective
(c )Mr. Gosain is neither effective nor efficient (d)Mr. Gosain is both effective as well as efficient
79 Planning is concerned with the future which is uncertain and every planner is using conjecture about what
 might happen in future. Therefore, the manager is required to make certain assumptions about the future.
Identify the step in the planning process being discussed above.

(a)Identifying alternative courses of action (b)Setting objectives

(c )Selecting an alternative (d)Developing Premises
80 Principles are general propositions, which are applicable when certain conditions are present. These have been
developed on the basis of and experimentation as well as of the managers.
(a)Observation, personal experiences (b)Principles, Techniques
(c )Techniques, Principles (d)Personal experiences, Observation
81 Karam Limited is offering a travel package for 15 destinations worldwide with a free insurance on the bookings
for the month of December, 2020. Identify the feature of marketing being described in the above lines.
(a)Needs and wants (b)Creating a market offering
(c )Customer value (d)Exchange mechanism
82 Assertion (A): Planning facilitates decision-making.
Reason (R): A manager has to evaluate each alternative and select the most viable proposition.

(a)Both (A) and (R) are true and (R) is the correct explanation of (A)
(b)Both (A) and (R) are true but (R) is not the correct explanation of (A)
(c )(A) is true but (R) is incorrect
(d)(A) is incorrect but (R) is true
Read the following text and answer question number 83-88 on the basis of the same.

Sachin and Arvind after finishing their graduation under vocational stream decided to start their own travel
agency which will book Rail Tickets and Air Tickets on commission basis. It takes time to get tickets from
Railway Reservation Counter and deliver the tickets to the consumers They also thought of providing tickets
within ten minutes through the use of internet. They discussed the idea with their Professor Ms. Pooja Sharma
who liked the idea and suggested them to first analyse the business environment which consists of investors,
competitors and other forces like social, political etc. that may affect their business directly or indirectly. She
further told them about the technological improvements and shifts in consumer preferences that were taking
place and hence they should be aware of the environmental trends and changes which may hinder their
business performance. She emphasised on making plans keeping in mind the threat posed by the competitors,
so that they can deal with the situation effectively. This alignment of business operations with the business
environment will result in better performance
83 ‘They also thought of providing tickets within ten minutes through the use of internet.’ Which business
environment is reflected here?
(a)Social environment (b)Economic environment
(c )Political environment (d)Technological environment
84 ‘….and suggested them to first analyse the business environment which consists of investors, competitors and
other forces like social, political etc. that may affect their business directly or indirectly.’ Which feature of
business environment is reflected here?
(a)Uncertain (b)Dynamic
(c )Specific and general forces (d)None of these
85 ‘She further told them about the technological improvements and shifts in consumer preferences that were
taking place and hence they should be aware of the environmental trends and changes which may hinder their
business performance.’ Which importance of environment scanning is referred here?
(a)Identifying opportunities to get first mover advantage
(b)Identifying threats to identify early warning signals
(c )Tapping useful resources
(d)Coping with rapid changes
86 Proper understanding of business environment is not a prerequisite for:
(a)tapping of useful resources
(b)identification of opportunities and threats
 (c )formulation of strategies
(d)better coordination of employee efforts
87 “This alignment of business operations with the business environment will result in better performance”. From
the above lines identify which of the following point highlights the importance of business environment.
(a)It helps in planning and policy formulation.
(b)It helps in improving performance.
(c )It helps tapping useful resources.
(d)It helps in coping up with rapid changes.
88 “Change of booking of rail tickets from Railway Reservation Counter to Internet.” Identify the feature of
business environment highlighted in the above line
(a) Inter-relatedness (b)Relatively
(c )Dynamic nature (d)Totality of external forces
89 National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and
with the entry of MNCs, its market share is declining. To cope up with
the situation CEO starts delegating some of his authority to the General Manager, who also felt himself
overburdened and with the approval of CEO disperses some of his authority to various levels throughout the
organisation. Identify the concept of management discussed above.
(a) Delegation (b) Organising (c )Decentralisation (d) Centralisation
90 Priyanshi Limited has chalked out an action plan in order to increase its market share in the international
market by 10% in the next one year. The action plan contains the details about how the production levels will
be increased, promotional activities will be carried out and so on. Identify the type of marketing function being
described in the given lines.
(a) Gathering and analysing market information (b)Marketing planning
(c )Product designing and development (d)Packaging and labelling
91 Within 2 years of it’s inception, Bhavishya Limited has created a very positive reputation about itself and its
products in the eyes of general public by participating extensively in various social welfare programs. Identify
the component of promotion mixing described in the given lines.
(a)Advertising (b)Personal selling (c )Public relation (d)Sales promotion
92 Sushmita is planning to start an online coaching centre. She wants to introduce innovative teaching techniques
especially for slow learners. Therefore, she is constantly interacting with parents and encouraging them to
share their ideas. This will make her
aware of more alternatives. The step of planning being described in the given lines is……..
(a)Identifying alternative courses of action
(b)Selecting the best course of action
(c )Evaluating the courses of action
(d)Follow up action
93 In Spring Pvt Ltd. there is one head Kuldeep who has two lines of authority under him. One line consists of
Amal-Bindu-Chirag-Divya-Evon. Another line of authority under Kuldeep is Jacob-Kumar-Latha-Manish-Naresh.
According to a Principle of Management given by Fayol, If Divya has to communicate with Manish who is at the
same level of authority then illustrate the route she will have to traverse.
(a)Divya-Chirag-Bindu-Amal-Kuldeep-Jacob-Kumar-Latha-Manish
(b)Latha-Kumar-Jacob-Amal-Kuldeep-Bindu-Chirag-Divya- Manish
(c )Divya-Chirag-Bindu-Kuldeep-Jacob-Kumar-Latha
(d)Divya-Chirag-Bindu-Amal-Jacob-Kumar-Latha-Manish
94 According to the technique of Scientific management “Differential Piece Wage system” How much more will a
worker making 30 units earn as compared to a worker making 19 units? If the standard output per day is 20
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. 2250 (b) Rs. 1235 (c) Rs. 1015 (d) Rs. 1300
95 The cheapest source of finance is:
(a) Debenture (b) Equity share capital
(c) Preference share (d) Retained earning
96 A decision to acquire a new and modern plant to upgrade an old one is a:
(a) Financing decision (b) Working capital decision
(c) Investment decision (d) None of the above
97 Other things remaining the same, an increase in the tax rate on corporate profits
will:
(a) Make the debt relatively cheaper
(b) Make the debt relatively dearer
(c) Have No impact on the cost of debt
(d) We Can’t stay
98 Companies with a higher growth pattern are likely to:
(a) Pay lower dividends
(b) Pay higher dividends
(c) Dividends are not affected by growth considerations
(d) None of the above
99 Financial leverage is called favourable if:
(a) Return on Investment is lower than the cost of debt
(b) ROI is higher than the cost of debt
(c) Debt is easily available
(d) If the degree of existing financial leverage is low
100 Higher debt-equity ratio Equity Debt = Gresults in:
(a) Lower financial risk (b) Higher degree of operating risk
(c) Higher degree of financial risk (d) Higher EPS