कें द्रीय विद्यालय सगं ठन क्षेत्रीय कायाालय रायपरु

Kendriya Vidyalaya Sangathan Regional Office Raipur

Class - XII
Multiple Choice Question Bank
[MCQ ] Term – I

BUSINESS STUDIES [ 054 ]

Based on Latest CBSE Exam Pattern
for the Session 2021-22
 कें द्रीय विद्यालय संगठन क्षेत्रीय कायाालय रायपरु
Kendriya Vidyalaya Sangathan Regional Office Raipur

MESSAGE FROM DUPUTY COMMISSIONER

It is a matter of great pleasure for me to publish study material for different

subjects of classes X and XII for Raipur Region. Getting acquainted and
familiarized with the recent changes in curriculum and assessment process made
by CBSE vide Circular No. 51 and 53 issued in the month of July 2021 will help
students to prepare themselves better for the examination. Sound and deeper
knowledge of the Units and Chapters is must for grasping the concepts,
understanding the questions. Study materials help in making suitable and effective
notes for quick revision just before the examination.

Due to the unprecedented circumstances of COVID-19 pandemic the

students and the teachers are getting very limited opportunity to interact face to
face in the classes. In such a situation the supervised and especially prepared
value points will help the students to develop their understanding and analytical
skills together. The students will be benefitted immensely after going through the
question bank and practice papers. The study materials will build a special bond
and act as connecting link between the teachers and the students as both can
undertake a guided and experiential learning simultaneously. It will help the
students develop the habit of exploring and analyzing the Creative & Critical
Thinking Skills. The new concepts introduced in the question pattern related to
case study, reasoning and ascertain will empower the students to take
independent decision on different situational problems. The different study
materials are designed in such a manner to help the students in their self-learning
pace. It emphasizes the great pedagogical dictum that ‘everything can be learnt but
nothing can be taught’. The self-motivated learning as well as supervised classes
will together help them achieve the new academic heights.

I would like to extend my sincere gratitude to all the principals and the
teachers who have relentlessly striven for completion of the project of preparing
study materials for all the subjects. Their enormous contribution in making this
project successful is praiseworthy.
Happy learning and best of luck!

Vinod Kumar
(Deputy Commissioner)
 कें द्रीय विद्यालय संगठन क्षेत्रीय कायाालय रायपरु
Kendriya Vidyalaya Sangathan Regional Office Raipur

Our Patorn

Vinod Kumar
Deputy Commissioner
KVS RO Raipur

Smt.Biraja Mishra Sh.A.K. Mishra

Assistant Commissioner Assistant Commissioner
KVS RO Raipur KVS RO Raipur

Dr. A. Nagamani
Principal, Kendriya Vidyalaya No.2 NTPC Korba
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 COMPILATION WORK BY

MR ARVIND KUMAR MAUR

PGT COMMERCE, KV NO2 NTPC KORBA

CONTENT TEAM
• MR R K THAKUR, PGT COMMERCE, KV BMY BHILAI
• MR AMIT GARG PGT COMMERCE KV CHIRIMIRI
• MRS ANITA DARPADE, PGT COMMERCE KV NO 1 RAIPUR
• MS ANCY RAO PGT COMMERCE KV NO 3 KUSMUNDA KORBA
• MR MAHENDRA KUMAR MISHRA, PGT COMMERCE, KV BAIKUNTHPUR
• MR SHUBHAM CHAUDHARY PGT COMMERCE , KV JAGDALPUR
 BUSINESS STUDIES (CODE -054)
CLASS–XII (2021-22) TERM I
CHAPTER WISE MCQ BASED QUESTIONS

INDEX
S NO NAME OF UNIT PAGE NO

1 TERM I CURRICULUM(SYLLABUS) 03

PART A
2 NATURE AND SIGNIFICANCE OF 4-13
MANAGEMENT

3 PRINCIPLES OF MANAGEMENT 14-22

4 BUSINESS ENVIRONMENT 23-28

5 PLANNING 29-36

6 ORGANISING 37-45

PART B
7 MARKETING MANAGEMENT 46-59

8 MODEL QUESTION PAPER (MODEL) TERM I 60-67

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 BUSINESS STUDIES (CODE -054)
CLASS–XII (2021-22) TERM I CURRICULUM
Units TERM 1-MCQ BASED QUESTION PAPER THEORY - 40 Periods MARKS
MARKS DURATION:90 MINUTES
Part A Principles and Functions of Management
1 Nature and Significance of Management 12 16
2 Principles of Management 11
3 Business Environment 08
4 Planning 08 14
5 Organizing 10
Total 49 30
Part B Business Finance and Marketing
11 Marketing Management 24 10

Total 24 10

TOTAL (PART A+ PART B ) 73 40

PROJECT WORK (PART 1) 10
Students would prepare only ONE project in the entire academic session, which is divided into 2 terms i.e.
Term I and Term II.
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 BUSINESS STUDIES (054)
CLASS XII
UNIT 1 Chapter- 1 Nature & Significance of
Management

Multiple Choice Questions

1. ‘Doing the task with minimum cost” name the term associated with management?
(a) Efficiency (b) Effective
(c) Both (d) Management

2. The objective of the Marketing Department of ‘KOTEX 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 organizations because each department
performing activities in isolation from others and barriers betweendepartments 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) Specialization (d) None of these

3. Policy formulation is the function of

(a) Top level Managers (b) Middle level Managers
(c) Operational Management (d) None of the above

4. Goal setting is the function of

(a) CEO (b) Foreman

(c) Supervisor (d) Superintendent

5. How does a manager want to achieve his objectives?

(a) Efficiently (b) Effectively
(c) Efficiently and effectively (d) None of the above

6. Successful organizations do not achieve goals by chance but by following a deliberate process
known as
(a) Planning (b) Co-ordination
(c) Controlling (d) Management

7. Which one of the following sequences of process of management is correct:

(a) Planning, Directing ,Controlling, Organising, Staffing
(b) Directing, Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Directing, Controlling
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(d) Organising, Planning, Staffing, Controlling, Directing

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8. Which degree is compulsory to become a manager?
(a) B.B.A. (b) M.Com.
(c) M.B.A. (d) No compulsion of degree.

9. In which of the following occupation, no minimum qualification is prescribed?

(a) Manager (b) Doctor
(c) Lawyer (d) Chartered Accountant

10. Managing Director will be considered under which level of management?

(a) Top-level (b) Middle-level
(c) Lower-level (d) None of these

11. Foreman will be considered under which level of management?

(a) Lower-level (b) Middle - level
(c) Top-level (d) None of these

12. Management is essential for the organizations which are

(a) Non-profit organizations (b) Service organizations
(c) Social organizations (d) All of the above

13. Successful management ensures that

(a) Goals are achieved with least cost (b) Timely achievement of goals
(c) Both of the above (d) None of the above

14. Ravi works as a production manager in Rosy private Limited. He has been given the task of
getting 10000 units of hand woven table mats manufactured at the cost of ₹150 per unit, within 100
days. In order to be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹150 per unit
(b) The work is completed within 100 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
(d) All of the above

15. Management is said to be poor if it is

(a) Efficient but ineffective (b) Effective but inefficient
(c) Both inefficient and ineffective (d) All of the above

16. Suzy Enterprises Limited is planning to increase its sales by 25% in the next year. Identify the
feature of management being highlighted in the given statement.
(a) Management is all pervasive (b) Management is a goal oriented process
(c) Management is a continuous process (d) All of the above

17. Keeping in view ,the changes in the consumer demands and preferences,Royal Bakery‘ has
reduced
the sugar and fat content in its products. This approach of business shows that management is
(a) An intangible force
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(b) A group activity

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(c) A dynamic function

(d) A multidimensional activity

18. 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.

19. ‘Corrective action’ comes under which function of management?

(a) Planning (b) Organising
(c) Directing (d) Controlling

20. Match the concept of management in Column I with their respective meaning in II;
COLUMN I COLUMN II
Effectiveness I ) doing the task correctly with minimum
cost.
Efficiency ii )finishing the task on time.
Process iii) The primary functions or activities
that management performs to get.

a) i), ii), iii) b) ii), i), iii)

c) iii), ii), i) d) i), iii), ii)

21Matchtheobjectiveofmanagement inColumnIwith theirrespectivedefinitionin ColumnII:

Column I Column II
A)Survival i)Increaseinthenumberofemployees,thenumber of products
orincreaseinthecapitalinvestment,etc.
B)Profit ii)AVitalIncentive forthe continuedsuccessfuloperationofthe
enterprise
C)Growth iii)Anorganisationmustearnenoughrevenuesto covercosts.

a) i), ii), iii) b) ii),i), iii)

c) ii), iii), i) d) i), iii), ii)

Assertion-ReasoningBasedquestions;
Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in
each case:

(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.

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22. Assertion (A): There is a kind of cost-benefit analysis involved and the relationship between
inputs and outputs.
Reason (R): If by using less resources (i.e., the inputs) more benefits are derived (ie., the outputs)
then effectiveness has increased.

23. Assertion (A), Coordination is not an exclusive function of the top management.
Reason (R), Coordination is the responsibility of all managers-top, middle and operational levels.

24. Assertion (A), Management is a full-fledged profession.

Reason (R), Management meets the exact criteria of a profession.

25. Assertion (A). Management is a series of continuous interrelated functions.

Reason (R). The process of management is a series of continuous, interrelated, but separate functions
(planning, organising, directing, staffing and controlling).
These functions are simultaneously performed by all managers all the time.

26. Assertion (A). Planning cannot prevent problems.

Reason (R).Planning can only predict the problems and prepare contingency plans to deal with then
if and when they occur.

27. Assertion (A). Management is a dynamic function.

Reason (R). An organisation interacts with ins external mvironment which consists of various social,
economic and political factors. In order to be successful, an organisation
must change itself and Its goals according to the needs of the environment.

28. Assertion (A), Management is a tangible force and its presence can be felt in the way the
organization functions.
Reason (R). The effect of management is noticeable in an organisation where targets are met
according to plan, employees are happy and satisfied,
and there is orderliness instead of chaos.

29. Assertion (A), Coordination is an all pervasive function.

Reason(R). Coordination is required at all levels of management due to the interdependent nature of
activities of

30. Assertion(A):Social objective of managemen tinvolve creation of benefits or economic

values to the society.
Reason(R):Now a days,profit maximization is the only objective of management alternatives:
A) Both Assertion(A) and Reason (R) are True and Reason(R) is the correct explanation of
Assertion (A).
B) Both Assertion(A) and Reason( R) are True, but Reason ( R) is not the correct
explanation of Assertion (A).
C) Assertion(A) is True, but Reason(R) is False.

D) Assertion(A) is False, but Reason(R) is true.

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 31. Assertion(A):Management is an exact science.
Reason(R): It is based on human behavior .It is neither precise nor as comprehensive as the pure
science like physics or chemistry.
Alternatives:
A) Both Assertion(A) and Reason( R) are True and Reason ( R)is the correct explanation
ofAssertion(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.

32. Assertion(A):Satisfactionofpersonnelobjectivesisveryimportantinanorganisation..
Reason(R): Employees are one of the most valuable resources for an
organization,Alternatives:
A) BothAssertion(A)and Reason(R) areTrueand Reason(
R)isthecorrectexplanationofAssertion(A).
B) BothAssertion(A)andReason(R) areTrue,butReason
(R)isnotthecorrectexplanationofAssertion(A).
C) Assertion(A) is True ,but Reason( R ) is False.
D) Assertion(A) is False, but Reason( R) is true.

33. Assertion(A):Management principles are developed through observation and repeated

experimentation.
Reason(R):Outcomes of management principles can be predicted accurately
.Alternatives:
A) Both Assertion(A) and Reason(R) are True and Reason( R) is the correct explanation of
Assertion(A).
B) Both Assertion(A) and Reason( R) are True, but Reason( R)is not the correct
explanation of Assertion(A).
C) Assertion(A) is True, but Reason( R) is False.
D)Assertion (A) is False, but Reason( R) is true.

Q. Nos 34-37 are based on the following CASE.

Anu is a well-known face in the field of publishing. She owes the success of her business to her own
education in business management and her team of certified management
consultants. Therefore, she decides to send both her children Shreya and Darshal abroad to acquire
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degrees in the field of business management in their individual areas of expertise.

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She feels that all over the world there is marked growth in management as a discipline, but still it is
not considered to be a full-fledged profession for certain reasons.
On the basis of the above case;

34. If Anu considers management as a discipline, identify the reason

(a) a lot of literature is available (b) it is a skillful activity

(c) requires regular practice (d) has a code of conduct

35. Identify the concept of management in the above case

(a) science (b) both Art & Science

(c) profession (d) art

36. Every manager applies his personal skill and knowledge in the day-to-day functioning of an
enterprise. It is proved because

(a) management is an art (b) management is a science

(c) management is a profession (d) none of these

37. Identify the features of management as a profession

(a) systematic body of knowledge (b) restricted entry

(c) service motive (d) all of the above

Read the following and answer questions from 38 to 42 on the basis of the same:

. Alcargo Ltd is a operating its business on large scale. Co. realizes that human resources are the
most important assets of its business, So HRM Department is set up to show adevelopmental path
to the employees through proper training modules and jobenrichment. Time to time incentives and
awards are given to employees which was based on theirperformance, which keeps the employees
highly motivated. Ravi , just a graduate inhumanities is appointed as the Plant superintendent in the
company. Raviknew thatthere are certain theories and principles of management based on deep
observation andexperimentation. So, he studied various theories and principles of management
beforejoiningtheCompany.Raviisveryenergeticandhelikestodealwithseveresituations.OnAugust20th,
Heinformedhisbossthatthegoalhehadbeenassignedhad been achieved and the quality was also very
good. The best part is that there is one day left for the deadline ,which is August 21.However,his
boss was dissatisfied because the expenses incurred by his team to complete the project exceeded
the upper limit (norms).
38 Which objective of management is pursued by management of Alcargo Ltd.:
a) Organizational objectives b) Social objectives
c) Personal objectives d) None of these
39. Identify the feature ofprofession which is not applicable here - “Ravi, just a
graduateinhumanities is appointedasthe Plant superintendentin the company.’
a) Well defined body of knowledge b)Restricted Entry
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c)Ethical code of conduct d)Service Motive

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40. Whichaspectof managementis violatedby Ravi in abovecase?
a) Planning b) Efficiency
c) Effectiveness d) Controlling
41. Identifythenature ofmanagementhighlighted inthisline-“Raviknewthattherearecertain theories
and principles of management based on deep observation andexperimentation.”
a) Management as Profession b)Management as Science
c )Management as an Art d)None of the above
42. Whichaspectof managementisfollowed byRaviin abovecase?
a) Planning b) Efficiency
c) Effectiveness d) Controlling

ANSWER KEY
BUSINESS STUDIES
CLASS XII
UNIT 1 Chapter- 1 Nature & Significance of Management
Multiple Choice Questions; Answer;

1.Ans. (a)

2. Ans (b)

3. Ans. (a)

4. Ans. (a)

5. Ans. (c)
6. Ans.(d)

Explanation:
(d) Management is considered to be a deliberate process as it involves creating an environment
which is conducive to efficient and effective performance ( achieving goals).

7. Ans. (c )
Explanation: Ans c; because all the functions must be performed in proper sequence ( in
chronological order)

8. Ans (d)
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EXPLANATION; Ans; d ; as there is no restricted entry in the field of management like other
profession.
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9. Ans (a)
EXPLANATION; Ans; a ; as there is no restricted entry in the field of management (manager)
like other profession.

10. Ans (a)

11. Ans (a)

12. Ans (d)

EXPLANATION; Ans; d; because management is all pervasive which is required in every field
of life.

13. Ans (c)

EXPLANATION; Ans; c; as it is focusing on achieving goals effectively and efficiently.

14. Ans (b)

EXPLANATION; Ans;b ; effectiveness is concerned with successful achievement (completion)
of target within time frame irrespective of cost factor.

15. Ans (c)

EXPLANATION; Ans; c; because lack of efficiency and effectiveness leads to mismanagement
which is considered as poor management.

16. Ans (b)

EXPLANATION; Ans;b; because management aims on achieving goals/target.

17. Ans (c)

EXPLANATION; Ans; c; as management keeps on changing according to prevailing market
situations.

18. Ans (c)

EXPLANATION; Ans; c; because art is considered as application of acquired knowledge by

using personalized skills.

19. Ans. (d)

20. Ans. (b)

21.Ans (C)
Assertion-ReasoningBasedquestions;

Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in
each case:
(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.
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22. Ans. (c)
EXPLANATION;because using less resources leads to efficiency and not effectiveness as specified.

23. Ans (a)

EXPLANATION; as coordination is joint responsibility of all.

24. Ans(b)
EXPLANATION; because neither Management is a full-fledged profession nor Management meets
the exact criteria of a profession.

25. Ans(a)
EXPLANATION; because managerial functions are performed in chronological order to achieve
goals continuously.

26. Ans(a)
EXPLANATION;

27. Ans(a)
EXPLANATION; Ans; c; as management keeps on changing according to prevailing market
situations.

28. Ans(d)
EXPLANATION; as management is invisible force.

29. Ans(a)

30. Ans. (c)

EXPLANATION; because various other objectives are also achieved through management.

31. Ans (a)

EXPLANATION; because management is considered as social science and doesn’t have exact
result always. It is affected by prevailing scenario.

32. Ans. (a)

EXPLANATION; as human resource is the only active source of production.

33. Ans. (c)

EXPLANATION; because neither Outcomes of management principles can be predicted accurately

nor deliver same results always.

Q. Nos 34-37 are based on the following CASE.

34. Ans (a)

EXPLANATION; because it can be studied and learnt by going through its available literature.
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35. Ans(c)
EXPLANATION; because “certified management and acquiring degree” is indicating it as a
profession in the above case.

36. Ans(a)

EXPLANATION; as every manager applies managerial knowledge /principles in their own way
using their personalized skills.

37. Ans(a)

Readthefollowing andanswer questionsfrom 38to 42onthebasis ofthesame:

38. Ans( c)
EXPLANATION; as focus was given on achieving company’s goals.
39.Ans( b)
EXPLANATION; as “Ravi, who is just a graduate inhumanities, appointedasthe Plant
superintendentin the company without having any managerial degree.
40. Ans( b)
EXPLANATION; as he achieved the assigned goals at higher cost by crossing the upper limit
of the project.
41. Ans. (b)
EXPLANATION; as science is based on deep observation andexperimentation.
42. Ans( c)EXPLANATION; as Ravi achieved the goals with quality ,on 20th august ,one day
before thedeadline,whichwasAugust 21.

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CHAPTER :2
“PRINCIPLES OF MANAGEMENT”
1. Mr Mukesh used to manufacture shoes by employing labour who were easily available.
When his son after completion is MBA joined the business. He analysed that if we use
capital intensive method by using a machine it will reduce the cost and the quality of shoes
will also improve.
Answer the following questions. Based on the above case studies.

Which technique of scientific management is used by his son.

(a) Fatigue study (c) Method study
(b) Motion study (d) Work study

2. What is the objective of that technique?

(a) Finding the best way of doing thing
(b) Finding the rest interval
(c) Finding the minimum cost
(d) All of the above.

Mr Rajiv is the owner of “Laxmi Diary”.He is producing various milk products. He always
tests various ways of producing different products and chooses the best and most
economical way of production. He is also very particular about fixing a place for
everything and he makes sure that all the employees are given a fixed place so that there is
no wastage of time and delay in production
Answer the following questions.

3. Which technique of scientific management is applied by Mr. Rajiv?

(a) Motion study (c) Method study
(b) Fatigue study (d) None of the above

4. Which principle of HenryFayol is followed by him?

(a) Principle of equity (c) Principle of discipline
(b) Principle of order (d) All of the above.

Principles of Taylor and Fayol are mutually complementary. One believed that the
management should share the gain with the workers while the other suggested that
employee’s compensation should depend upon the earning capacity of the company and
should give them a reasonable standard of living

Answer the following questions

5. Which principle of Fayol is applied here?

(a) Remuneration (c) Equity
(b) Discipline (d) Esprit the corps
6. Which principle of Taylor is applied here?
(a) Harmony not discord (c) science not rule of thumb.
(b) Cooperation not individualism (d) None of the above
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7. Manager of ABC ltd. does not allocate work as per the capability of workers.Which principle is
violated by them.
(a) Principle of equity (c) Principle of order
(b) Principle of discipline (d) Principle of Division of work
8. The salesman of ABC ltd. could not achieve his sales target of 1000 units, on enquiry it was found that he
was not allowed to take decision related to give discount or credit to any of his customer. State the
principle of Management violated in this case.
(a) Principle of Division of work (c) Principle of authority and responsibility
(b) Principle of order (d) None of these
9. Suraj was engaged in the business of carpet making. Since company was making handmade carpet as well
as machine made carpet. There were lot of overlapping of activities, so the Production manager advised
there should be two separate division for both of them. Where in each division should have its own
incharge plans and execution.
Identify the principle of management insisted by production Manager.
(a) Unity of command (c) order
(b) Unity of direction (d) Equity
10. Mr. Malhotra, Finance manager of ABC ltd. Applied for leave to attend a family function in Amritsar.
The director of the company requested him to cancel his leave as there is an important meeting schedule
on that date. Mr. Malhotra immediately agreed and cancelled his trip as he thought attending meeting is
more import for company’s benefit.
Which principle of Fayol is applied by Mr. Malhotra?
(a) Principle of subordination of individual interest to general interest.
(b) Principle of equity
(c) Principle of order
(d) Principle of Discipline.

11. The principles of management are said to be flexible as:

(a) They aim at influencing behavior of human beings.
(b) They are general guidelines to action, but do not provide readymade solutions to
management problems.
(c) They can be modified by the manager when the situation so demands.
(d) Their application is dependent upon the prevailing situation at a particular point of time.

12. “Management principles are not as rigid as principles of pure science.” Which of the following
best describes the given statement?
(a) Management principles deal with human behaviour and, thus, are to be applied creatively
given the demands of the situation.
(b) Principles of management are formed after research in work situations, which are technical in
nature. .
(c) Principles of management contribute towards the development of management both as a
science and as an art. .
(d) None of the above

13. The principles are guidelines to action but do not provide readymade, straitjacket solutions to all
managerial problems. This is so because .

(a) The applications of principles has to be changed as per requirements. '

(b) Real business situations are very complex and dynamic and are a result of many factors.
(c) Principles are like different tools serving different purposes, the manager has to decide
which tool to use under what circumstances.
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(d) All the above

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14. “The principles of management are not rigid prescriptions, which have to be followed
absolutely.” Which of the following best describes the given statement?
(a) Management principles aim at influencing behaviour of human beings.
(b) Management principles enable a better understanding of the relationship between human and
material resources in accomplishing organisational purposes.
(c) Management principles are flexible and can be modified by the manager when the situation
so demands.
(d) None of the above.

15. The application of principles has to be changed as per requirements. For example, employees
deserve fair and just remuneration. But what is just and fair is determined by multiple factors.
They include contribution of the employee, paying capacity of the employer and also prevailing
wage rate for the occupation under consideration.
Identify the nature of principles of management highlighted above.
(a) General Guidelines (b) Flexible
(c) Mainly Behavioral (d) Contingent

16. 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 her/his
case. Identify the principle of management highlighted above.
(a) Authority and Responsibility (b) Discipline
(c) Equity (d) Stability of Personnel

17. According to Fayol, discipline requires .

(a) Good superiors at all levels (b) clear and fair agreements
(c) Judicious application of penalties (d) All of these

18. is an extension of the principle of division of work and specialization to the shop
floor; and it violates the principle of Unity of command.

(a) Cooperation, not individualism (b) Functional foremanship

(c) Unity of Direction (d) Standardisation and Simplification of work

19. Which of the following technique of scientific management violate‘s the principle of Equity?

(a) Functional foremanship (b) Standardisation and Simplification of work ‘

(c) Differential Piece Wage System (d) Method Study

20. A worker directly contacts the CEO of the company with a complaint regarding working
conditions in the factory. Which of the following principles is being violated here?

(a) Unity of Command (b) Discipline (c) Scalar Chain (d) Unity of Direction

21. Same battery can be used in different mobile phones of a particular brand. This is an example of
which of the following techniques of scientific management?

(a) Standardisation of work (c) Simplification of work

(b) Method Study (d) Functional Foremanship
22. “She/he keeps machines, materials, tools etc., ready for operations by concerned workers’.
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Whose work is described by this sentence under functional foremanship?

(a) Route Clerk (b) Repair Boss (c) Gang Boss (d) Instruction Card Clerk
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23. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W.
Taylor?
(a) It implies change of attitude.
(b) The management and workers should not play the game of one upmanship.
(c) Both management and workers require each other.
(d) Workers should be paid more wages..

24. In an organisation, each person should be scientifically selected. Then work assigned should suit
his physical, mental and intellectual capabilities. To increase efficiency, they should be given the
required training. Efficient employees would produce more and earn more. Which of the
following principle of management is highlighted above?
(a) Science, not rule of thumb
(b) Division of work.
(c) Development of each and every person to his/her greatest efficiency and prosperity.
(d) Remuneration of employees.

25. According to this principle of management, there should be obedience to organisational rules and
contract of employment, clear and fair decisions and judicious application of penalties which are
necessary for the working of the organisation.
The principle of management referred to above is:
(a) Authority and Responsibility (b) Discipline

(c) Unity of Command (d) Subordination of Individual Interest to General Interest

26. Sanak and Gagan started their career in Wales Limited (a printing press) after going through a
rigorous recruitment process. Since they had no prior work experience, the firm decided to give
them one year to prove themselves. The principle of management followed by Wales Limited is
.
(a) Authority and Responsibility (b) Discipline

(c) Equity (d) Stability of Personnel

27. Match the principle of management in Column I with their respective explanation in Column II:
a. Scalar chain (i) When no division of the company has a separate plan of
action.
b. Subordination of individual (ii) When a manager awards contract for supply of raw
interest to general interest material to a particular party, which happens to be owned by
his relative ignoring other parties, who can supply the same at
a cheaper rate.
c. Unity of direction (iii) When a subordinate habitually contacts higher authorities
in the company by passinghis/her immediate superior.
d. Equity (iv) When the manager grants one month medical leave to a
supervisor with pay and only oneweek medical leave to
accountant.

(a) (i), (ii), (iii), (iv) (b) (ii), (i), (iii), (iv)
(c) (iii),(ii),(i),)iv) (d) (iii),(i),(ii),(iv)
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 28. Match the technique of scientific management in Column I with their respective explanation in
Column II:
a. Time study (i) Each specialist is to be assigned work according to her/his qualities.
For example, thoseWith technical mastery, intelligence and grit may be
given planning work. Those withenergy and good health may be
assigned execution work.
b. Method study (ii) Devising new varieties instead of the existing ones and eliminating
unnecessary diversityof products.
c. Functional (iii) Fixing the standard time taken to perform a well-defined job so as to
foremanship determine the numberof workers to be employed; frame suitable
incentive schemes and determine labour costs.
d. Standardisation and (iv) Finding out one best way of doing the job to minimise the cost of
simplification of production and maximizethe quality and satisfaction of the customer.
work

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

(c) (iii), (iv), (i), (ii) (d)(i), (iii), (ii), (iv)

29. Match the technique of scientific management in Column I with their respective explanation in
Column II:

a. Standardisation of work (i) Separation of planning and execution functions

b. Simplification of work (ii) Setting benchmarks for every business activity which must be
adhered to during production
c. Method study (iii) Eliminating superfluous varieties, sizes and dimensions.
d. Functional foremanship (iv) Minimising the cost of production and maximise the quality and
satisfaction of the customer

(a) (i), (ii), (iii), (iv) (b) (ii), (iii), (iv), (i)
(c) (ii), (iv), (i), (iii) (d)(i), (iii), (ii), (iv)

30. Match the technique of scientific management in Column I with their respective explanation in Column
II:

a. Method Study (i) To reduce a given line or product to fixed types, sizes and
characteristic
b. Time Study (ii) Devising new varieties of the existing ones
c. Standardisation of work (iii) To find out one best way of doing the job
d. Simplification of work (iv) To determine the number of workers to be employed; frame
suitable incentive schemes and determine labour costs.

(a) (iii), (iv), (i), (ii) (b) (i), (ii), (iii), (iv)
(c) (ii), (iv), (i), (iii) (d) (iii), (i), (ii), (iv)
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In the given questions (31 to 38) a statement of assertion followed by a statement
of reason is given. Choose the correct answer out of the following choices.
(a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
(b) Both Assertion (A) and Reason (R) are true but Reason (R) is not 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
31. Assertion (A) : Taylor’s technique of functional formanship is based on fayol’s principle of
division of work.
Reason (R): Taylor advocated separation of planning and execution functions of a foreman
through a planning and production in-charge under him.
Each of the in-charge will have four personnel working under him according to their
specialisation.
32. Assertion (A) : A principal refers to a statement which reflects the fundamental truth about some
phenomenon based on cause and effect relationship.
Reason (R) Management principles are broad and general guidelines for decision marking and
behaviour of managers.

33. Assertion (A) : Managerial Principles are guidelines for managerial action.
Reason (R): Values are not guidelines for human behaviour.

34. Assertion (A): Management principal can not be applied differently under different conditions
Reason (R): Some changes can be made in application of principles according to the requirement
of the company.

35. .Assertion (A) : Management principles provides managers with useful insight into reality.

Reason (R): Management principles improve knowledge, ability and understanding of managers
under various managerial situations.

36. Assertion (A): Fayol suggested that employees in the organisation must be given an opportunity
to take some initiative in making and execution a plan.

Reason (R): It dose not help to develop feeling of belongingness in the employees

37. .Assertion (A) : Taylor insists that each job performed in the organisation should be based on
intuition and not on scientific enquiry.

Reason (R) Taylor insists that standard time for a job should be set up scientifically by
performing time study in the organisation and then the day’s target should be fixed.

38. Assertion (A) : Technique of “Simplification of Work” eliminate superfluous verities. Sizes and
dimensions of products.

Reason (R) Technique of “Simplification of work” reduced inventories, fuller utilisation of

19

equipment and increased turnover to reduce cost.

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Answer the Question (39 to 42), Based on below Paragraph
RajatJoined as a CEO of Bharat Ltd. a firm manufacturing computer hardware. On the first day he
addressed the employees. He said that he believed that a good company should have an employee
suggestion system and he wished to minimize employee turnover to maintain organisational
efficiency. He informed all employees that he would ensure that all agreements were clear, fair
and there was judicious application of penalties. However, he said that he believed that lazy
personnel should be dealt with sternly to send the message that everyone was equal in the eyes of
management. Also that he would want to promote a team spirit of unity and harmony among
employees, which would give rise to a spirit of mutual trust and belongingness among team
members and eventually minimize need for using penalties. He told all present that the interests
of the organization should take priority over the interests of any one individual employee.

39. Identify the principal of management in the following line. “ He said that he believed that a good
company should have an employee suggestion system”
(a) Unity of command (c) discipline
(b) Unity of direction (d) initiative
40. Identify the principal of management in following line. “He wished to minimize employee
turnover to maintain organizational efficiency.”
(a) Stability of personnel (c) Centralization and Decentralization
(b) Discipline (d) Remuneration of employees
41. Identify the principal of management in the following lines. “He informed all employees that he
would ensure that all agreements were clear, fair and there was judicious application of
penalties.”
(a) Initiative (c) Discipline
(b) Equity (d) Esprit de corps.
42. Identify the principal of management in the following lines “Which would give rise to a spirit of
mutual trust and belongingness among team members.
(a) Discipline (c) Initiative
(b) Unity of command (d) Esprit de corps.

Answer the questions (43 to 46) on the basis of the following paragraph:

Radhika opens a jewellery showroom in Jaipur after completing a course in jewellery designing.
She has employed eleven persons in her showroom. For greater productivity, she divides the
work into small tasks and each employee is trained to perform his/ her specialised job. The sales
persons are allowed to close a deal with a buyer by giving a maximum of 10% discount, whereas
the decision to give any further discounts rests with Radhika as the final authority. In the earlier
days of starting of the business, five of her employees were asked the put in extra hours of work.
In return she had promised to give them a special incentive within a year. Therefore, after six
months when the business was doing well, she awarded a cash bonus to each of these employees
to honour her commitment. However, when it comes to settling the conflicts among her
employees, she tends to be more biased towards her female employees.

43. Identify the principal of management in “She divided the work into small tasks and each
employee is trained to perform his/her specialised job”
(a) Unity of command (c) Division of work
(b) Unity of direction (d) Discipline
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44. Identify the principal “The sales persons are allowed to close a deal with a buyer by giving a
maximum of 10% discount, whereas the decision to give any further discount rests with Radhika
as the final authority”
(a) Division of work (b) Discipline
(c) Initiative (d) Centralisation and decentralisation
45. Identify the principal of management in the following lines. “Therefore after six months when
the business was doing well, she awarded a cash bonus to each of these employees to honour her
commitment.

(a) Discipline (b) Initiative

(c) Scalar chain (d) Remuneration
46. Which principle is violated in the following lines. “However when it comes to setting the
conflicts among her employees, She tends to be more biased towards her female employees.”
(a) Discipline (b) Equity
(c) Division of work (d) Justice
Answer the following questions (47 to 50) on the basis of given case study.
As students of a management course Karan and Kunal were asked to prepare a project report
on applicability of principles of management in real business situations. In order to conduct the
survey Kunal had selected an outlet of a popular chain of fast food restaurant whereas Karan visited
a nearby department store. When Kunal presented his report to class, Karan realised that their
observations were matching on various grounds. In both the business units, work is divided into
small tasks and each is performed by a trained employee. A set of rules are predetermined and
communicated to employees for compliance and these is a fixed place for every thing and all
employees have been allotted individual space. Moreover, the manager encourage a spirit of mutual
trust and belongingness among the employees so that need for imposing penalties is reduced.
47. Identify the principal of management in the following lines “work is divided into small tasks and
each is performed by a trained employee.”
(a) Unity of direction (b) Unity of command
(c) Division of work (d) Initiativ
48. Identify the principal of management in following lines “A set of rules are predetermined and
communicated to the employees for compliance.”
(a) Discipline (b) Scalar chain
(c) Unity of command (d) Unity of direction
49. Identify the principles of management in the following lines: “There is a fixed place for
everything and all employees have been allotted individual space”
(a) Unity of direction (b) Order
(d) Scalar chain (d) Equity
50. Identify the principle of management in the following lines: “Managers encourage a spirit of
mutual trust and belongingness among the employees”

(a) Unity of command (b) order

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(c) Equity (d) Esprit de corps

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Answer Key : PRINCIPLE OF MANAGEMENT
1. - c 41. - c
2. - a 42. - d
3. - c 43. - c
4. - b 44. - d
5. - a 45 - a
6. - a 46 - b
7. - d 47 - c
8. - c 48 - b
9. - b 49 - b
10. - a 50 - d
11. - c
12. - a
13. - b
14. - c
15. - d
16. - a
17. - a
18. - b
19. - c
20. - c
21. - a
22. - c
23. - c
24. - c
25. - b
26. - d
27. - c
28. - c
29. - b
30. - a
31. - a
32. - b
33. - c
34. - d
35. - a
36. - c
37. - d
38. - a
39. - d
40. - a
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CHAPTER -3
BUSINESS ENVIRONMENT
MULTIPLE CHOICE QUESTION
1. Business environment is the sum total of all the factors and forces………to a business.
(a) Internal (b) Specific (c) External (d) All of these
2. Investors, customers, competitors and suppliers come under…….forces.
(a) General (b) Specific (c) General and Specific
(d) None of the above
3. Specific attitudes that elected government representatives hold towards business is
called… ............. environment.
(a) Legal (b) Social (c) Technological (d) Political
4. Which of the following best indicates the importance of business environment?
(a) Identification (b) Improvement in performance
(c) Coping with rapid changes (d) All of the above
5. “There is a great demand for reservation in jobs for economically weaker sections of the society.”
Identify the type of dimension of business environment mentioned.
(a) Technological environment (b) Political environment
(c) Legal environment (d) Social environment
6. WhatsApp was the first application for mobile chat. Afterwards, many other applications came but
still whatsapp is No.1 in mobile chat. Which importance of Business Environment is highlighted
here.
(a) Helps in tapping resources (b) Helps in policy making
(c) Identifying threat and getting warning signal
(d) Helps to identify opportunities and getting first mover advantages
7. 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
8. The court issued the order that for vehicles to be smokeless was most essential and that any one
violatilng this order shall have to pay a heavy fine. Identify the dimension of Business environment?
(a) Economic environment (b) Political environment
(c) Legal environment (d) Social environment

9. 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
10. Match the following
Column I Column I
A. Stock Market indicates (i) Political environment
B.Customs and traditions (ii) Social environment
C. New techniques of operating business (iii) Technoogical environment
D. General stability and peace in the country
(iv) Economic environment

Find the correct option.

A B C D A B C D
(a) (iv) (iii) (i) (ii) (b) (ii) (iii) (iv) (i)
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(c)(iii) (iv) (ii) (i) (d) (iv) (ii) (iii) (i)

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11. which of the following dimensions of business environment includes legislations passed by the
government administrative orders issued by government authorities.
(a) Technological environment (b) Political environment
(c) Legal environment (d) Social environment
12. Which of the following is a component of economic environment? (a) Concern with quality of
life
(b) Rates of saving and investment
(c) Extent of government intervention in business
(d) Birth and death rate
13. Banking sector reform has led to many attractive schemes of deposits and lending money. The
banks are offering loans at very nominal rate of interest and with minimum formalities to be
completed.
Identify the dimension of Business environment highlighted here?
(a) Political (b) Social (c) Economical (d) Technical
14. Under which environment effect, IBM and Coca –Cola had to leave India?
(a) Political (b) Social (c) Economical (d) Technical
15. Introduction of mobile phones have negatively effected the business of cameras and watches it is
related to
(a) Technological environment (b) Political environment
(c)Legal environment (d) Social environment 1
16……… is considered a major element of the economic environment.
(a) Public debt
(b) The nature of relationship of our country with foreign countries
(c)Birth and death rate
(d) Literacy rates
17. Non-discriminatory employment practices is the part of which dimension of business
environment?
(a) Political (b) Social (c) Economical (d) Legal
18. ‘Threats to law and order’ is an example of…….environment of business.
(a) Political (b) Social (c) Economical (d) Legal
19. The trend of Yoga as a result of COVID -19 relates to…
(a) Social (b) Political
(c) Technological (d) Legal
20. It is very difficult to predict the changes of Business environment. No one can predict business
environment 100% accurately. Which of the following feature of the business environment is
highlighted by this point?
(a) Uncertainty (b) Dynamic (c) Relativity (d) Complexity
Assertion Reasoning MCQs
Direction question number –.21 to 25 There are two statements marked as Assertion (A) and Reason
(R). Read the statements and choose the appropriate option from the options given below
(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. 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.
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 22. 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.
23. 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.
24. 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.
25. 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.
Case study based MCQs
Direction Read the following text and answer the questionnumber 26-30 on the basis of the
same
Neel and Aakash after finishing their graduation under vocational stream decide to start their own
travel agency which will book rail tickets and air tickets on commission basis. They also thought of
providing tickets within 10 minutes through the use of internet.They discussed the idea with their
professor Mr. Singh who liked the idea and suggested them to first analyse the business environment
which consist of investors, competitors and other forces like social, political, etc., that may affect
their business directly or indirectly. He further told them about the technological improvements and
shifts in customer preferences that were taking place and hence, they should be aware of the
environmental trends and changes which may hinder their business performance. He emphasised on
making plans keeping in mind the threats 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.
26. Identify the components of business environment highlighted in the above paragraph
(a)economic environment
(b) social environment
(c) technological environment
(d) political environment
27. Identify the features of business environment as discussed by Professor Singh with Neel and
Akash.
(a)specific and general forces (b)inter-relatedness
(c) dynamic nature (d) uncertainty
28. Identify the points of importance of business environment as stated by Professor Singh in the
above situation.
(a) It enables the firm to identify opportunities and getting the first mover advantage
(b) It helps the form to identify threats and early warning signals
(c) It helps in tapping useful resources
(d) The it helps in assisting in planning and policy formulation.
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 29. Which of the following is not an element of legal environment
(a) court judgement
(b) The extent and nature of government intervention in business
(c) Government regulations
(d) Administrative orders issued by the government authorities.
30. Neel and Aakash 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 which dimension
of business environment highlighted here.
(a) Economical (b) Political
(c) Legal. (d) social

Direction Read the following text and answer the question number
31-35 on the basis of the same

The government all over the world are becoming more and more cautious towards the
environment.To ensure the same, recently, many state governments passed an order to ban
polythene bags since these are non biodegradable. As a result, the government also decided to give a
subsidy to jute industry (bags). The minister said in the statement that they believe it will be helpful
as income of people are rising and people can afford jute bag.
After this subsidy, Aman saw great potential in jute multi-pocket bags business which was not
established yet in India but had been flourishing in UK where he studied during his graduation. He
launched the product and his business started to boom. So, more companies entered into the market
with other articles and improvisations.
31. Which business dimension is highlighted in the line," As a result, the government also decided to
give a subsidy to jute industry (bags)."
(a) Legal
(b) Political
(c) Economic
(d) Social

32. Which business dimension is highlighted in the line," The Minister said in the statement that he
believes it will be helpful as income of people are rising and people can afford jute bags."?
(a) Legal
(b) Political
(c) Economic
(d) Social
33. Which merit of business environment is highlighted in the lines, "After the subsidy Aman saw
great potential in jute multi-pocket bags business which was not established yet in India but had been
flourishing in UK where he studied during his graduation."
(a) Identify opportunities
(b) Tapping useful resources
(c) Coping with rapid changes
(d)Assisting in planning
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34. Which merit of business environment is highlighted in the lines," He launched the product and
his business started to boom. So, more companies entered into the market with other articles and
improvisations."
(a) Identify opportunities
(b) Identified threats
(c) Assisting in planning
(d) Coping with rapid changes
35. Which dimension of business environment is highlighted in the given lines," To ensure the same,
many state government passed an order to ban polythene bags since these are non biodegradable."?
(a) Political
(b) Legal
(c) Technological
(d) Economic

Direction Read the following text and answer the questionnumber 36-40 on the basis of the
same
Yogesh Agro limited started a new venture for distribution of harmful and chemical free fertilizers
vegetables they conducted a survey to find out customer preferences for such vegetables.They found
out that most of the customers were concerned about the harmful chemicals being used in growing
the vegetables. They found out that 90% of the households were searching for alternatives. The
company connected a group of agriculture experts to lay down the procedure for growing the
vegetables by the farmers. They decided to train the farmers in new technology to grow chemical
free vegetables according to new innovative methods. The experts also suggested soil management
techniques through which farmers would be able to create an abundant and lasting harvest. Due to
increased awareness for healthcare, demand for products of Yogesh agro limited increased and thus
the business flourished
36. "They found that most of the customers were concerned about the harmful chemicals being used
in growing the vegetables. They found out that 90% of the households searching for alternative."
identify the dimension of business environment highlighted above.
(a) Economic environment
(b) Social environment
(c) Technological environment
(d) Political environment
37. "They decided to train the farmers in new technology to grow chemical-free vegetable according
to new innovative methods." Identity the dimension of business environment highlighted above.
(a) Economic environment
(b) Social environment
(c) Technological environment
(d) Political environment
38. "Due to increased awareness for healthcare demand for products of Yogesh Agro limited
increased and thus the business flourished."What feature/ characteristic of business environment is
highlighted above?
(a) Specific and general forces (b) Inter-relatedness
(c) Dynamic nature (d) Relativity
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39. Which of the following is not a component of economic environment?
(a) Balance of payments and changes in foreign exchange reserves
(b) The nature of relationship of our country with foreign countries
(c) Expansion of transportation and communication facilities
(d) Volume of imports and exports of different items.
40. "The experts also suggested soil management techniques through which farmers would be able to
create an abundant and lasting harvest." which dimension of business environment is highlighted
here?
(a) Technological
(b) Legal
(c)Political
(d) Social

ANSWER KEY

MULTIPLE CHOICE QUESTIONS

1. (c ) 2. (b) 3(d) 4(d) 5(d) 6 (d) 7 (a) 8(c) 9( d) 10 (d)

11. (c) 12.(b) 13 (c) 14 (a) 15 (a) 16 (a) 17 (b) 18 (d) 19 (a) 20 (a)

ASSERTION- REASONING MCQs

21(a) 22 (b) 23 (c) 24 (b) 25(b)

CASE BASED MCQs

26(c) 27 (a) 28 (b) 29 (b) 30 (a)
31 (b) 32 (c) 33 (a) 34 (b) 35 (b) 36 (b) 37 (c) 38 (b) 39 ( b) 40 (a) 28
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CHAPTER-4
PLANNING
Q.1Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial activities, she is
an expert in planning. While planning for her company, she noticed that at first several options are
gathered, then their evaluation is done and finally the most suitable option is selected. Once she was
confronted with such a problem as had only one option available for its solution. To select this very
option was her compulsion. Now, for the first time she realized that the necessity of planning is there
only when several options are available. Identify the feature of planning in the event stated above.
(a) Planning is continuous. (b) Planning is futuristic.
(c) Planning involves decision making. (d) Planning is pervasive.
Q.2 Saurabh decided to start a chocolates manufacturing business. He set the target of earning 10%
profit on sales in the first year. As a good businessman, he was concerned about the future of the
business, which was uncertain. He gathered information that the demand for chocolates is increasing
day by day. He used this information as the base for future planning and shared it with his team. On
the basis of the gathered information, he scheduled a meeting in the following week to find
innovative ways to achieve the objectives. Identify one out of the two steps, which have been
followed by Saurabh that are related to the process of one of the functions of management.
(a) Follow up action (b) Selecting an alternative
(c) Developing Premises (d) Evaluating alternative courses
Q.3In a business organization, the manager is busy in making plans for the coming year. The
company has launched so many new products in the market. The main question before the company
is how to advertise the new products. In the answer to this question, the planners collected several
suggestions; namely, the job of advertisement should be done by the company itself; for
advertisement the help of outsourcing of services should be taken; some of the work of
advertisement should be done by the company itself and for some of it the outsourcing should be
depended on. Still, other answers to this question are being looked for. Which particular stage of the
‘Planning Process’ in the above event is being completed by the managers?
(a) Setting objectives (b) Developing premises (c) Identifying alternative courses of action (d)
Evaluating alternative courses
Q.4Suhani a home science graduate from a reputed college has recently done a cookery course. She
wished to start her own venture with a goal to provide ‘health food’ at reasonableprice. Shediscussed
her idea with her teacher (mentor) who encouraged her. After analyzing various optionsfor starting
her business venture, they shortlisted the option to sell readymade and ‘ready to make ‘vegetable
shakes and sattu milk shakes. Then they both weighed the pros and cons of both theshortlisted
options. Name the function of management being discussed above.
a) Planning b)Organizing

c) Directing d) Controlling
Q.Read extract given below and answer the question on the basis of the same.
The CEO of ABC limited, auto mobile enterprise dreams of his company becoming the best player
in future for which he sets the objectives, forecast the future and develops various courses of
action.He has also made a statement indicating sales volume for the next financial year to achieve
the desired sales as highlighted in the statement. He decided to advertise in all the leading
newspapers is in every state of India for the next six months, so he also wants to train his employees
for achieving his sales target.
As a part of the training programme for newly appointed sales executive, CEO fixes responsibility of
sales managers as mentors to take the executives for visit to their existing customers and help them
learn on the job.
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Q.5Which function of management is highlighted in the first line of the given extract?
1. Planning 2. Controlling
2. Staffing 4. None of these

Q.6Changes and events cannot be eliminated but they can be anticipated and managerial response to
them can be developed. Which importance of planning is highlighted in the above statement?
a) Planning provides direction.
b) Planning reduces overlapping and wasteful activities.
c) Planning reduces the risk of uncertainty.
d) Planning facilitates decision making.
Q.7Sales Forecasting is the basis on which a business firm prepares its annual plan for production
and sales. Which feature of planning is highlighted in the above case?
a) Planning focuses on achieving objectives.
b) Planning is continuous.
c) Planning is the primary function of management.
d) Planning is futuristic.
Q.Read the extract given below and answer the questions on the basis of the same. (Q.8-Q.11)
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.
Q.8Hence she prepared an annual plan for production sales and marketing through sales forecasting.
Which feature of planning is depicted in this statement?
1. Planning is continuous
2 planning is futuristic
3 planning involves decision-making
4 planning is a mental exercise
Q.9 For this purpose she set out specific goals objectives and activities which feature of planning is
depicted in this statement?
1.Planning focuses on achieving objectives
2.planning is a primary function of management
3.planning involves decision-making
4.planning is a mental exercise
Q.10Thus, she identified and evaluated different alternatives through which the farms could be
utilized throughout the year. Which feature of planning is depicted here?
1.Planning is pervasive 2.planning is continuous
3.planning his futuristic 4.planning involves decision-making
Q.11She 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?
1.Planning focuses on achieving objectives
2 planning is a primary function of management
3.planning is mental exercise
30

4 planning involves decision-making

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Q.12 Identify the statement which is not correct.
a) Planning is required a top-level management only.
b) Planning facilitates decision-making
c) Planning is a time consumingprocess
d) All are correct.

Q.13 Are the anticipated environments in which plans are expected to operate.
a) Planning premises
b) Forecasting
c) Objectives
d) none of these.

Q.14 Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team making
plans for the company also. He gave a number of suggestions to the team out of which the two main
suggestions were: First, Mr. Ram said that they had to face a lot of problem in getting the main raw
material used in the company, but in the next year it was possible that they could get it easily.
Secondly, in the second coming year the rate of bank interest was most likely to increase, which
would affect the company’s costs. He laid emphasis on this matter that both of his remarks should be
kept in view while preparing the plans. Clarify to which stage of the planning process the above
event is related.
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses
Q.15MrsMadhviBhire is working as a manager in ‘Taarik and Company’. She is involved in a
problem related to a particular product. She is unable to decide whether she should produce that
product in her own company or she should buy it from the market. She studied both the options
deeply with the help of specialists. In order to maintain the company’s impression on the minds of
the customers, she decided to produce the product in the company itself. She is hopeful of the
complete success of this decision. Identify the stage of the ‘planning process’ on which MrsMadhvi
reached the final decision.
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action
Q.16During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth. Keeping in
viewhis innate ability to visualize and create things, he decided to work as a junior assistant in a
filmstudio. Over a period of time, as he gained experience and his work was well acclaimed, he
decidedto set up his own film studio. Initially he was himself looking into every aspect of the
business, butas his work increased manifolds and his own productivity reduced with age, he hired
Jummy asmanager. Jimmy being immature in his work started giving bookings for the studio
haphazardly. Hewould never decide anything in advance or do any kind of forecasting of events.
This led to lot ofconfusions and conflicts. As a result, the goodwill earned by Kundan Lal over the
years began todecline.In context of the above case. Identify and explain the function of management
which Jimmy failed to perform byquoting lines form the paragraph.
1. Planning
2. Directing
3. Controlling
4. staffing
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Q.17 Rakhi Dua is employed at the middle level management of ‘Punjab Food Suppliers’. Working
in her department she noticed that they are asked to implement the plans prepared by the top
management without making any change. Many a time, even though wishing to do so, she cannot
make any change in them. As a result of it, the initiative and creativity of the managers at the middle
level management, gets killed. Not only this, several times, even opportunities of advantage slip out
of hand. Rakhi is very unhappy with this state of affairs of the company, and she is thinking of
shifting to some other company at the earliest. Identify the ‘limitation of planning’ in the above
event.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning reduces creativity.
Q.18Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell
only for cash. In 2015, for the first time company’s number one position in the industry has been
threatened because other companies started selling rice on credit also. But the managers of Super
Fine Rice Ltd. continued to rely on its previously tried and tested successful plans which didn’t work
because the environment is not static. This led to decline in sales of Super Fine Rice Ltd. The above
situation is indicating two ‘limitations of planning’ which led to decline in it sales. Identify one of
them.
(a) Planning creates rigidity (b) Planning reduces creativity
(c) Planning involves huge costs (d) Planning does not guarantee success
Q.19 Planning is futuristic.
1. False 2.True

Q.20 Allother 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.

Q.21Planning requires logical and systematic thinking rather than guess work or wishful thinking.
Identify the related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

Q.22 Planning cannot foresee everything, and thus, there may be obstacles to effective planning.
Identify the related limitation of planning.
(a) Planning leads to rigidity. (b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success. (d) Planning reduces creativity.

Q.23 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
32

(d) Setting objectives, Developing premises, Identifying alternative course of actions, Evaluating
alternative courses
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Q.24By comparing with standards manager can know whether the goals are achieved or
not:-
(a) Risk
(b) Ideas
(c) Actual performance
(d) Costs

Q.25Planning provides direction is a

(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method

Q.26Pervasiveness of planning indicates that planning

(a) is a top management function.
(b) extends throughout the organization.
(c) is a future-oriented activity.
(d) is the first element of management process.

Q.27 is a feature of planning also referred to as primacy of planning.

(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating

Q.28Which of the following quality a manager must possess to succeed in planning?

(i) Reflective Thinking

(ii) Imagination
(iii) Farsightedness
(iv) All of these

Q.29 Planning requires logical and systematic thinking rather than guess work or wishful thinking.
Identify the related feature of planning.

(i) Planning is futuristic

(ii) Planning is a mental exercise.
(iii) Planning establishes standards for controlling.
(iv) Planning focuses on achieving objectives.

Q.30 Planning results in decreasing

(a) Coordination (b) Proper use of resource

(c) Future uncertainties (d) Control

Q.31 Making assumptions for future is called

(a) Making derivative plans (b) Making policy

(c) Setting planning premises (d) All of the above.

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 Read the extract given below and answer the questions on the basis of the same. (Q.31-Q.32)
After completing a diploma in Bakery and Patisserie, Julie sets up a small outlet at Goa
Airport to provide a healthy food option to the travellers. To begin with, she has decided to
sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus,
by deciding in advance what to do and how to do, she is able to reduce the risk of
uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does
not work due to some unavoidable circumstances like cancellation of flights due to bad
weather conditions, government alert etc. which adversely affects her business.
In context of the above case:

Q.32Identify points highlighting the importance of planning mentioned in the above paragraph.

1. Reduces the risk of uncertainty:

2. Avoiding overlapping and wasteful activities
3. 1 and 2
4. None of these.
Q.33 The limitation of planning which adversely affects Payal’s business is:

1. Planning may not work in a dynamic environment:

2. Planning may not guarantee success.

3. Planning involves huge costs

4. None of these.

Q.Read the following text and answer the following questions on the basis of the same:(Q.34-Q.37)

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 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.

Q.34 “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.

Q.35 “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
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Q.36 State whether the given statement is True or False:

“The management had done effective forecast and critical thinking regarding allocation of resources to
reduce wastage.”

Q.37 “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

Q.38 Match the following

COLUMN I COLUMN II

1. Mental exercise (i) Looking ahead and regarded as

forward looking.

2. Futuristic (ii) Intellectual activity of thinking

rather than doing

3. Continuous (iii) Need for a new plan based on

future requirements and needs.

AB C
(a) (ii),(i),(iii) (b) (i),(iii),(ii)
(c) (iii),(ii),(i) (d) none of these

Q.39. Mr Reeshabh Bhandari is the chief manager in ‘Bhandari PustakParkashans’. He is fond of

continuing to present innovative ideas while planning for his business. His ideas are usually very
significant. It has been observed several times that these very ideas take the form of concrete plans.
This is the very reason that Mr Bhandari’s contribution to the growth and prosperity of the company
continues to be quite great. Identify the ‘importance of planning’ described above.
(a) Planning provides direction.
(b) Planning reduces the risk of uncertainty.
(c) Planning reduces overlapping and wasteful activities.
(d) Planning promotes innovative ideas.
Q.40 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.
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 ANSWERS KEY
Q.1. c Q.2.c Q.3.c Q.4. a Q.5. 1 Q.6. b Q.7.d
Q.8.2 Q.9.1 Q.10.4 Q.11.3 Q.12. a Q.13.a Q.14.b
Q.15.b Q.16.1 Q.17.c Q.18.d Q.19.2 Q.20.D Q.21.b
Q.22.B Q.23.c Q.24.c Q.25.a Q.26.B Q.27.b Q.28.4
Q.29.2 Q.30.c Q.31.c Q.32.3 Q.33.1 Q.34.B Q.35.A
Q.36. True
Q.37.c
Q.38.a
Q.39.D
Q.40.A
------------------------------------------

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Chapter-5
Organising
Multiple Choice Questions
1. Name the process which co-ordinates human efforts, assembles resources and integrates both
into a unified whole to be utilized for achieving specified objectives,
(a) Management (b) Planning (c) Organising (d) Directing

2. 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

3. As the span of management increases in an organisation, the number of levels of management in

the organisation
(a) Increases (b) Decreases
(c) Remains unaffected (d) None of the above

4. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify the type
of organisational structure followed by the organisation.
(a) Functional structure (b) Relational structure
(c) Divisional structure (d) None of the above

5. Under this type of organisational structure, manpower is grouped on the basis of different
products manufactured.
(a) Divisional structure (b) Functional structure
(c) Network structure (d) Matrix structure

6. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the
work has been divided into small and manageable activities and also the activities of similar
nature are grouped together. Identify the related step in organising process being mentioned in
the above lines.
(a) Identification and division of work (b) Departmentalisation
(c) Assignment of duties (d) Establishing reporting relationships

7. Identify the correct sequence of steps to be followed in an organising process.

(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
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

8. It is the obligation of a subordinate to properly perform the assigned duty.

(a) Responsibility (b) Authority
(c) Accountability (d) All of the above
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9. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on overall
enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

10. When decision-making authority is retained organisation is said to be by higher management

levels, an
(a) Decentralised (b) Centralised
(c) Fragmented (d) None of the above

11. Which of the following cannot be delegated?

(a) Authority (b) Responsibility
(c) Accountability (d) None of these

12. Which of the following is not an element of delegation?

(a) Authority (b) Accountability
(c) Responsibility (d) None of these

13. Harshit 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

14. 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

15 In order to successfully realize the objectives of an organisation, first of all it is ensured which
activities will have to be performed. In the list of activities, all the activities, both big and small,
are included. But it is not possible to set up separate departments for all the activities. Some
similar activities are put together in the same department. In this way some necessary
departments are set up. The reason for doing so is to exercise control over unnecessary
administrative expenses. Identify the concept of management under which similar activities are
put together and departments are set up.

(a) Departmentalisation (b) Delegation

(c) Decentralisation (d) Centralisation

16. The accountability flows

(a) In all directions (b) Downwards
(c) Upwards (d) None of the above
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17 Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.

18 Centralisation refers to:

(a) Retention of decision-making authority
(b) Dispersal of decision-making authority
(c) Creating divisions as profit centres
(d) Opening new centres or branches

Match the columns

19. Match the following on the basis of meaning of the content (remembering)
(i) Divisional structure (a) formation is based on functions
(ii)Functional Structure (b) number of subordinates that can be managed by superiors
(iii) Span of management (c) product specialization
i ii iii i ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (b) (a) (c)

20. Match the following on the basis of demerits of the content:

(i) Divisional structure (a) Difficult for a multiproduct company
(ii)Functional Structure (b) Difficult to fix responsibility
(c) Non economical
i ii i ii
A. (a) (b) B. (b) (a)
C. (c) (a) D. (b) (c)

21. Match the following on the basis of features:

(i) Divisional structure (a) occupational Specialization
(ii)Functional Structure (b) Perfect control
(c) Business Environment
i ii i ii
A. (a) (b) B. (b) (a)
C. (c) (a) D. (b) (c)

22. Match the following:

i. Departmentalization. a. Dividing the work as per plan
ii. Assignment of duties. b. Allocation of responsibility
iii. Division of Work c. The activities which are of similar nature.
i ii iii i ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (c) (b) (a)
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23. Match the following by choosing the correct option:
Column I Column II

i. Leads to specialization a. Delegation

ii. Functional anddivisional b. Step of organising process
iii. It has narrow scope c. Importance of organization
iv. Establishing reporting relationships d Types of organisation structure

i ii iii iv. i ii iii iv

A. (a) (b) (c) (d) B. (b) (d) (a) (c)
C. (c) (d) (a) (b) D. (d) (a) (b) (c)

24. Match the following:

i. Authority a. Arises from formal position
ii. accountability b. Arises from delegation of authority
iii. Responsibility c. Arises from responsibility

i ii iii i ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (c) (b) (a)

25. Q 28. Match the steps in the process of organising' in Column I with the appropriate
'explanation' in Column II:

Column I Column Il

i. Identification and division of work a. Dividing work into manageable

activities
ii. Departmentalisation b. Establishing a hierarchal structure
iii. Assignment of duties c Grouping similar activities together
iv. Establishing authority & reporting d. Allocating jobs to the members of each
relationships department
i ii iii iv. i ii iii iv
A. (a) (b) (c) (d) B. (a) (c) (d) (b)
C. (c) (d) (a) (b) D. (d) (a) (b) (c)

Multiple Choice Questions on Assertion -Reasoning Type

26 Assertion(A):Identification and division of work is the first step in the process of organising.
Reason (R): Organising involves identifying and dividing the work that has to be done in
accordance with previously determined plans.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
27. Assertion(A):Assertion (A): Organising provides a cleardescription of jobs and related duties.
Reason (R): Organising stimulates creativity amongst the managers.
(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 false
(d) (A) is false, but (R) is true
40
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28. Assertion(A): Functional Organization helps in increasing managerial and operational efficiency
and this results in increased profit.
Explanation(R): Functional Organization promotes efficiency in utilisation of manpower as
employees perform similar tasks within a department and are able to improve performance.
(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 false
(d) (A) is false, but (R) is true

29. Assertion(A): Organising helps management in implementing the principle of initiative among
employees.
Explanation(R): Organising satisfies the subordinate’s need for recognition and provides them with
opportunities to develop and exercise initiative.
(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 false
(d) (A) is false, but (R) is true

30. Assertion(A): Authority determines the superior subordinate relationship wherein the superior
communicates his decision to the subordinate, expecting compliance from him and the subordinate
executes the decision as per the guidelines of the superior.
Explanation(R): Accountability is the obligation of a subordinate to properly perform the assigned
duty.
(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 false
(d) (A) is false, but (R) is true

31. Assertion (A): The span of management at the upper level is generally narrow while at the
lower level span is wide.
Reason (R) : The task allocated to subordinates at the lower level of management are more specific
and precise and thus making supervision easy and simple.
a. (A) is correct, but (R) is wrong
b. (A) is wrong, but (R) is correct
c. Both (A) and (R) are correct
d. Both (A) and (R) are wrong

32. 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 trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

33. 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.
b. Both Assertion (A) and reason (R) are false
41

c. Assertion (A) is trueand reason (R) is false

d. Assertion (A) is false and reason (R) is true
Page
34. 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 trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

35. Assertion (A): A large sized organisation can be totally decentralised.

Reason (R): As an organisation grows in size and complexity, there is a tendency to move
towards decentralised decision-making. Complete centralisation 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
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

36. Assertion (A): Decentralisation must always be balanced with centralisation in areas of major
policy decisions.
Reason (R): Decentralisation recognises the decision maker's need for autonomy. The
management, however, needs to carefully select those decisions which will be pushed down to
lower levels and those that will be retained for higher levels.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

37. Assertion (A): Decentralisation should be applied with caution by the top management.
Reason (R): It can lead to organisational disintegration if the departments start to operate on
their own guidelines which may be contrary to the interest of the organisation.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

38. Assertion (A): Organisation structure is the outcome of the planning process.
Reason (R): The organising process leads to the creation of an organisation structure which
includes the designing of roles to be filled by suitably skilled people and defining the inter-
relationship between these roles so that ambiguity in performance of duties can be eliminated.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true
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39. Assertion (A): The need for an adequate organisation structure is felt by an enterprise whenever
it grows in size or complexity.
Reason (R): As an organisation grows, coordination becomes difficult due to the emergence of
new functions and increase in structural hierarchies. Thus, for an organisation to function
smoothly and face environmental changes, it becomes necessary to pay attention to its structure.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

40. Assertion (A): Organisation structure is an indispensable means; and the wrong structure will
seriously impair business performance and even destroy it.
Reason (R): A proper organisation structure is essential to ensure a smooth flow of
communication and better control over the operations of a business enterprise. It specifies the
relationships between people, work and resources.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true
Case Study Based Questions
41. Read the extract given below and answer the questions on the basis of the same:
Mohit, the owner of 'Ravi Constructions' decided to begin a campaign in order to create
awareness among the residents for creating a clean and safe environment. In an effort to develop
clean surroundings in the area, he formed a team of 30 members to list the different ways that can be
adopted for keeping the area clean. Different people had different suggestions, someone suggested to
take the help of local residents including young children, one suggestion was to involve unemployed
youth. The idea to take the help of volunteers was also given. A combination of the most effective
strategies after evaluating all options was selected for implementation. To achieve the desired goals
and objectives, various activities were identified like:
(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.
(ii) Door-to-door collection of garbage.
(iii) Recycling of garbage. (iv) Disposal of garbage, etc.
Thus, an organisational design was chosen which grouped similar activities together in order to
minimise duplication of effort. After identification and grouping of these activities,
the work was allocated among the different members.
(a) "After identification of different activities the work was allocated to different
members."
Which step does this represent in the process of organising?
(i) Identification and division of work
(ii) Departmentalisation
(iii) Assignment of duties
(iv) Establishing reporting relationships

(b) "Thus, an organisational design was choosen which grouped similar activities together
in order to minimise duplication of effort." Which step under the process of organising
is being referred to in this line?

(i) Identification and division of work

(ii) Departmentalisation
(iii) Assignment of duties
(iv) Establishing reporting relationships
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 (c) "Thus, an organisational design was chosen which grouped similar activities together
in order to minimise duplication of effort." Which step under the process of organising
is being referred to in this line?
(i) Identification and division of work (ii) Departmentalisation
(iii) Assignment of duties (iv) Establishing reporting relationships
(d) "Thus, an organisational design was choosen which grouped similar activities together in
order to minimize duplication of effort." Which organisational design is being referred to in
this line?
(i)Functional (ii)Formal
(iii)Divisional (iv)Informal
42. Read the extract given below and answer the questions on the basis of the same:
Aman decided to start a business of manufacturing toys. He identified the following main
activities which he has to perform: (i) purchase of raw materials, (ii) purchase of machinery, (iii)
production of toys; (iv) arrangement of finance; (v) sale of toys; (vi) identifying the areas where they
can sell their toys; (vii) selection of employees. In order to facilitate the work he thought that four
managers should be appointed to look after: (a) production (b) finance (c) marketing (d) personnel.
As planned, all this was executed and the business started doing well. But the manager of production
department is overburdened with routine work and is unable to concentrate on core issues of the
department. To overcome this problem, he entrusted some of his responsibility and authority to his
immediate subordinate
(a) Identify the function of management involved in the above mentioned paragraph.
(i) Planning (ii) Organising (iii) Directing (iv) Controlling
(b) Which concept/process is used by the productionmanager?
(i) Decentralisatio (ii) Delegation (iii) Training (iv) Coordination
(c) The concept identified in point (b), is an extension to one of the principles of management.
Name that principle.
(i) Authority and responsibility (ii) Division of work
(iii) Centralisation and decentralization (iv) Unity of direction
(d) Who will be accountable finally if the subordinate is unable to complete the task
accordingly within time?
(i) The Manager (ii) The Subordinate (iii) Both (i) and (ii) (iv) None of these

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ANSWER KEY
1. c
2. c
3. b (because more subordinates can be effectively managed by a superior)
4. a(as the people are being grouped on the basis of functions)
5. a (the divisions are created on the basis of products)
6. b
7. b
8. a
9. c
10. b
11. c(Accountability, in short, means being answerable for the end result.)
12. d
13. c (Decentralization is a systematic delegation of authority at all levels of management)
14. c
15. (c)(a subordinate is accountable to his superior)
16. d
17. b
18. a
19. C (i-c, ii-a,iii-b)
20. C ((i)-(c), (ii)-(a) )
21. B ((i)-(b),(ii)-(a))
22. D ((a)-(iii),(b)-(ii), (c) – (i) )
23. C
24. B (i-a, ii-c,iii-b)
25. b
26. a (The organising function begins with the division of total work into smaller units.)
27. b (Clarity in working relationships enables proper execution of work.)
28. a
29. a
30. c(Responsibility is the obligation of a subordinate to perform a duty)
31. c
32. a
33. c(the manager shall still be accountable for the assigned task)
34. a
35. d
36. a
37. a(Decentralisation must always be balanced with centralisation in areas of major policy decisions.)
38. d(Organisation structure is the outcome of the Organising process.)
39. a
40. a
41-a-(iii)
41-b-(ii)
41-c-(ii)
41-d-(i)
42-a-(ii)
42-b-(ii)
45

42-c-(ii)
42-d-(i)
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PART : B
CHAPTER :11 (MARKETING MANAGEMENT)
(Concept based questions)
1. With which element is exchange mechanism related?
(a) Publicity
(b) Marketing
(c) Advertising
(d) Branding
2. Which one of the following is a marketing management philosophy?
(a) Societal marketing concept
(b) Distribution concept
(c) Direct marketing concept
(d) Channel concept
3. Which one of the following is not a marketing mix?
(a) Product
(b) Physical distribution
(c) Product pricing
(d) Production process
4. Marketing is called a process because it involves interaction of buyers and sellers.
(a) Economic (b) Social
(c) Legal (d) Political
5. 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
CCT Based questions
6. Hena is planning to set 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. Identify the channel of
distribution being adopted by the company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel
7. 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
8. Harshit is planning a start up a venture for offering mobile pet care services at door step.
He has decided to charge Rs. 1000 for heated hydrobath& blow dry of a pet and Rs. 500
for shampoo and conditioning. Identify the element of marketing mix which is not being
described in the above case.
(a) Product (b) Place
46

(c) Price (d) None of the above

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9. Guneet went to a shop and expressed her desire to buy a copper water bottle only of
Prestige company. Identify the component related to branding being described in the
above case.
(a) Trademark
(b) Generic name
(c) Brand name
(d) Brand mark
10. Karam Limited is offering a travel package for 15 destinations worldwide with a free
insurance on the bookings for the month of December, 2019. 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
11. Agile Limited has launched a new range of air conditioners in order to add value to the
usability of the product. The new range of air conditioners have an inbuilt air purifier and
are available in attractive colours. Identify the type of marketing philosophy being
described in the above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept
12. Sujhav Limited is a company dealing in various types of fire extinguishers. Considering
the fact that people generally don’t buy fire extinguishers, the company undertakes
aggressive sales promotion efforts in order to create and maintain demand for the
product. Identify the type of marketing philosophy being described in the given case,
(a) Product concept
(b) Selling concept
(c) Marketing concept
(d) Societal marketing concept
13. Madhubala is planning to launch an online education portal. In order to understand the
varied needs of the students, she conducted an online survey. Based on the feedback of
the survey, she has decided to offer educational packages to the prospective buyers.
Identify the type of marketing concept being described in the given lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept
14. Pragati Limited has chalked out an action plan in order to increase its market share in the
international market by 20% 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 labeling
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15. What does the symbol given below denote?

(a) Brand name

(b) Brand mark
(c) Trademark
(d) Generic name
16. Sugandha purchased a pack of crayons for her daughter from a nearby stationery shop.
She noticed that the crayons were packed in a portable transparent plastic bag. Identify
the level of packaging being described in the above lines.
(a) Primary package
(b) Secondary packaging
(c) Transportation packaging
(d) None of the above
17. On visiting a supermarket to buy a pack of moisturizer, Harsha noticed that the
packaging of most of the beauty products exhibited a photograph of a celebrity. Identify
the related function of packaging being described in the given case.
(a) Facilitates the use of product
(b) Assists in promotion of the product
(c) Helps in product identification
(d) Provides protection to the product
18. The labelling of a pack of oats cookies explains how the product is beneficial in adding
fibre to the diet and the other related health benefits. Identify the related function of
labelling being described in the given case.
(a) Describes the product and specifies its content
(b) Identification of the product or brand
(c) Grading of products
(d) Helps in promotion of the products
19. Identify the related function of labelling being depicted below as given on the pack of the
chips.

(a) Describes the product and specifies its content

(b) Grading of products
(c) Helps in promotion of the products
(d) Identification of the product or brand
20. Mehak Limited has hired 300 salesmen who will be assigned the task of contacting
prospective buyers and creating awareness about the new range of organic incenses
introduced by the company. Identify the element of promotion been described in the
given lines.
(a) Advertising (b) Sales promotion
(c) Personal selling
(d) Public relation
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(Case study based questions)
1 “Time Line” watch manufacturing company is a renowned company marketing watches. It
performs various activities like, market analysis, product designing or merchandising,
packaging, warehousing, branding, pricing, promotion and selling. The company maintains
good customer relations through various follow up activities. This helps the company in
procuring repeat sales orders.

(I) Name the concept related to the activities mentioned in the above paragraph.
a) Marketing b) Selling c) Industry d) Packaging

(II) Which concept of marketing is used to develop good relations with customers?
a) Branding b) sales promotion c) labeling d) public relation

2 “Every time I travelled, people asked me to bring them chips, khakra and pickles from all
over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a
business out of it. They launched a Facebook page, asked people what they wanted, and they
came up with a list of about 100 places and tied-up with two dozen vendors to begin with.
They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat
who wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves from
Darjeeling. Through their business, they wished to bridge the gap between sellers and buyers.
The business is now worth millions..
I) Which function of marketing was performed by both friends while acquiring
information about people’s choice through facebook page?
a) Gathering and analysing marketing information
b) Marketing planning
c) Branding
d) None of these.
II) Which promotional tool is suitable for them
a) Advertising
b) Personal selling
c) Publicity
d) Sales promotion.
III) Important element of marketing mix that Anouskha and Sumeet will have to be
involved in for making the goods available to customers at the right place, in the
right quantity and at the right time is:
a) Product b)Price c)Promotion d)Place.
3 Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew
different varieties of rice and was well-versed in the various aspects of rice cultivation. He
was also selected by the government for a pilot-project on rice cultivation. As a project work
in Business Studies, she decided to study the feasibility of marketing good quality rice at a
reasonable price. Her father suggested her to use the Internt to gather customers’ views and
opinions. She found that there was a huge demand for packaged organic rice. She knew that
there were no predetermined specifications in case of rice because of which it was difficult to
achieve uniformity in the output. To differentiate the product from its competitors, she gave it
the name of ‘Malabari Organic Rice’ and classified it into three different varieties, namely —
Popular, Classic and Supreme, based on the quality. She felt that these names wouldhelp her
in product differentiation.
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 I) Radhika has given a special name to her product, what does this name refer to?
a) Brand name
b) Brand Mark
c) Generic name
d) Trade mark
II) Radhika has classified her product into different varieties, which function of
marketing has been performed by Radhika in this step?
a) Gathering and analysing marketing information
b) Standardisation and Grading
c) Product designing and development
d) None of these
III) Radhika’s father suggested her to use internet for acquiring information about
people’s taste and preferences. Why is it necessary to know about taste and
preferences of customers in marketing
a) It is essence of marketing
b) Customers are required for profit making.
c) Customer is called king of market
d) Customer satisfaction is main objective of marketing.
4 Haryaram is a famous chain selling a large variety of products in the Indian market. Their
products include chips, biscuits, sweets and squashes. It charges a comparatively higher price
than its competitors as it sells quality products. Besides, it offers regular discounts to its
customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells
its products through various grocery stores so that the products are made available to
customers at the right place, in the right quantity and at the right time. It regularly uses
different communication tools to increase its sales.
I) Which type of products are sold by Haryaram?
a) Consumer goods
b) Producer goods
c) Services
d) None of the above.
II) Which philosophy of marketing management is being used by Haryaram?
a) Production concept
b) Product concept
c) Selling concept
d) Marketing concept
III) Which promotional tool is being used by offering discounts to customers ?
a) Advertising
b) Personal selling
c) Sales promotion
d) Public relations
IV) Haryaramis selling goods through grocery store, which channel of distribution is
being used by Haryaram?
a) Direct channel
b) One level
c) Two level
d) None of these
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5 As a project work in Business Studies, the Commerce students of Himachal Public School,
Himachal Pradesh thought of preparing apple jam from the apples grown in their school
premises and sell it in the school annual fete. They approached the Principal who not only
appreciated the students but also gave her consent for the same. The school decided to donate
50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the
school also decided to extend this project by providing employment to visually challenged
and disadvantaged sections of society on regular basis

I) Product-related decisions which the students had to take to identify

product in the market:
A) Branding B) labelling
C) packaging D) None of these
II) Label of jam should be:
a) Brand label
b) Grade label
c) Descriptive label
d) None of the above

6 Unilever has found a new way to make ice creams by using an ingredient called ‘ice
structuring protein’ which is widely found in nature especially, in fishes which allows them
to survive in freezing arctic waters. Combining ISP with stabiliser technology allows to make
ice creams that don’t melt so easily thereby making it more convenient for small children and
consumers in hot countries.
In the context of above case:

I) The component of marketing mix being taken into consideration by the company.
a) Product b) price c) place d) promotion.
II) The function of marketing highlighted here.
a) Gathering and analysing marketing information
b) Marketing planning
c) Product designing and development
d) Branding.

7 As the number of people making online purchases has increased manifolds, there is a
growing concern about the disposal and management of packaging waste. Every item bought
is delivered with excess packaging and sometimes even non-biodegradable materials are
used.
In the context of above case:

I) Name the levels of packaging that the marketers uses for extra protection
besides the immediate package.
A) Primary packaging
B) Secondary packaging
C) Transportation packaging
D) None of these
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8 Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that cost of
production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as
profit. Moreover, he has assessed that there is a free competition in this product segment.
In the context of above case:

I) Identify the function of marketing being performed by Suraj.

a) Pricing
b) Branding
c) Labelling
d) Promotion

9. In today’s world, through social media, news spread in a flash. Moreover, if it is bad news, it
acquires a speed that is virtually impossible to stop. Hence, all corporates are more
susceptible to a tarnished image today than in any other day and age. The loss of goodwill
may lead to decreased revenue, loss of clients or suppliers and fall in market share. Over the
years, therefore, most of the companies have set up a separate department to manage the
public opinions about them. The department works in close coordination with the various
interest groups like consumers, government, suppliers etc. and strives to handle effectively if
any controversies arise.
In the context of above case:

I) Identify the element of promotion mix being referred to in the above lines.
a) Advertising
b) Publicity
c) Personal selling
d) Public relations
II) Which department is formed for this promotional tool?
a) Marketing department
b) Finance department
c) Human resource department
d) Public relations department.

10. An automobile company is a leading manufacturing company in its segment. The

company has decided to launch fully solar charged vehicles. This technology will cost the
company ?2000 crores annually. When the relationship manager of the company was asked
about the reason of bearing so much extra cost he replied that the company considered
environmental friendly techniques as the only solution to increasing pollution. The company
feels by bearing extra cost it is fulfilling its responsibility.Whichconcept of marketing
management is being followed?

a) production concept b) product concept

c) selling concept d) social marketing concept.

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 Reasoning Assertion based questions
1. Assesrion(A)Exchange mechanism is known as essence of marketing.

Reasoning (R) Customer receives goods and services and producer receives price for product
through procees of exchange.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)

c) Both statements are incorrect

d) (A) is correct but (R) is incorrect.

.2.Assertion (A)the purpose of marketing is to generate customer valueat a profit

Reasoning (R)Marketing is the process of satisfying needs and wants of customers through
the process of exchange

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect
3. Assertion (A)Selling focuses on profit maximization through maximization ofsales
Reasoning (R)Selling is considered as a part of marketing.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrec
4. Assertion (A)Production concept focuses on increasing scale of production to reduce price of
products.
Reasoning (R)Production concept is used where demand is more than supply.
a) Both are correct and (R) is the correct explanation of (A)
b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

5. Assertion (A)Social marketing concept is followed generally by marketers in present time.

Reasoning (R)Social responsibility is considered as an important aspect to get success in the business.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect
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6. Assertion (A)Production mix is the combination of all decisions taken by marketers regarding
product.
Reasoning (R)Product mix covers only tangible attributes of products.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

7. Assertion (A)Brand is used to identify a product in market by customers.

Reasoning (R)Brand provides a specific name to a product.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

8. Assertion (A)Packaging is known as a silent salesman.

Reasoning (R)Attractive and innovative package can attract a lot of customers to purchase the
product.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

9. Assertion (A)A firm sets lower price per unit to increase profit in long run.
Reasoning (R)Lower price increases demand for the product and market area to earn greater profit
through sales .

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

10. Assertion (A)There should be a balance in level of inventory maintained in warehouse.

Reasoning (R)Higher level will increase the cost of carrying inventory and lower level will make
difficult to fulfill demand.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect
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11. Assertion (A)Advertising iscalled paid form of impersonal communication.
Reasoning (R)Advertising covers a large market area with low cost.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

12. Assertion (A)Personal selling is called a dialogue.

Reasoning (R)Personal selling is possible through face to face contact and communication with
customers.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

13. Assertion (A)Sales promotionactivities are occasionally used.

Reasoning (R)Sales promotion activities are short term incentives offered to customers for making
immediate purchase.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

14. Assertion (A)Expenditure on advertisement is not a waste but a profitable investment.

Reasoning (R)Advertisements increases sales of products in the long run and increases profit for the
business.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

15. Assertion (A)Industrial products are easily sold through personal selling.
Reasoning (R) Queries of customers can be easily solved in personal selling.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect
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Matching based questions
1.
Statement Marketing concept
1.Scale of production a) Product concept
2.Quality of product b) Selling concept
3.Promotional activities c) production concept
4.Customer satisfaction d) Marketing concept.
a) 1-a, 2-b, 3-d, 4-c
b) 1-a, 2-c, 3-d, 4-b
c) 1-c, 2-a, 3-b, 4-d
d) 1-c, 2-a, 3-d, 4-b

2.
Statement Marketing mix
1.Combination of tangible and A) Place mux
intangible attributes of products
2.It is related to deciding about B) promotion mix
pricing of product
3.It is related to providing C) price mix.
information and persuading
customer
4.Providing product to customer at D) product mix.
the right time, at the right quantity
and at the right place.
a) 1-A, 2-C, 3-D, 4-B
b) 1-D, 2-C, 3-B, 4-A
c) 1-C, 2-D, 3-B, 4-A
d) None of the above.

3.
Statement Components of product mix
1.Process of preparing a name, a) Packaging
sign or symbol for a product
2.Process of preparing an wrapper b) labelling
or container for product
3.Procees of preparing a slip used c) branding
to describe information about
product
a) 1-b, 2-a, 3-c
b) 1-c, 2-a, 3-b
c) 1-a, 2-c, 3-b
d) 1-c, 2-b, 3-c
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4.
Statement Elements of promotion mix
1.It is paid form of a) advertising
personal
communication
2.It is made through b) sales promotion
identified sponsor
3.These are short term c) personal selling
incentives
4.It is non sale d) public relations
communication
a) 1-c, 2-a, 3-b, 4-d
b) 1-b, 2-c, 3-b, 4-d
c) 1-c, 2-a, 3-d, 4-b
d) 1-d, 2-b, 3-a, 4-d.

5. Make the correct order of following marketing functions

I) Market planning
II) Gathering and analysing marketing information
III) Standardisation and grading
IV) Product designing and development
a) I, II, IV, III
b) I, IV, II, III
c) II, I, IV, III
d) IV, I, II, III

Answers of Questions Bank(Marketing Management)

Prepared by Shubham Chaudhary PGT Commerce KVJagdalpur
Concept based questions
1.(b) As exchange is known as essence of marketing.
2.(a) Social marketing concept
3.(d) As production process is not included in marketing mix.
4.(b) As marketing is a social process.
5.(c) Advertising is a paid form of impersonal communication used to inform customers and
persuading them to purchase the product.
CCT based questions
6.. (c) As Hena is involving two intermediaries for distribution.
7. (c) As public relations activities focus on social welfare
8.(d) As product, price and place mix have been discussed in the paragraph
Product-Qualities of product
Price-Pricing of product
Place-Providing product at door step of customers.
9.(c) As prestige is a unique name for product.
10.(c) As company is increasing utility in the service to increase customer value.
11.(a) As company is increasing quality of product.
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12.(c) As aggressive sales promotion efforts are being made by company.
13.(c) As needs and wants of the students are being identified and focused.
14.(b) As pragati limited is planning for different aspects of marketing.
15.(c) As image is showing that symbol is registered.
16.(a) As it is initial layer of packaging.
17.(b) In this way, packaging is making promotion of product.
18.(d) As it is providing additional information to attract customers.
19.(c) As extra offer is being shown on the label.
20.(c) As company has hired salespersons for promotion of product.
Case studies based questions
1.(I) a) All activities are related to functions of marketing.
(II) d) As public relations is used to develop good relations.
2.(I) a) As information is being collected about needs and wants of customers
(II) a) As large area is to be covered.
(III) d) Place mix refers to provide products to customers at the right place, at the right time and at
the right quantity.
3.(I) a) As the name will be used to launch and identify product in the market.
(II) b) As product is being classified into varieties.
(III) d) As it is main objective of marketing.
4.(I) a) As products of company are finally consumed.
(II) b) As company is focusing to improve quality.
(III) c) As short term incentives are being offered
(IV) b) As one intermediary (Retailer)is involved.
5.(I) a) As it is used to identify product
(II) c) As it is a food product so description is required.
6.(I) a) As product features are being discussed.
(II) c) As product designing is being improved.
7.b)As it is providing extra layers of packaging.
8.a)As price of product with profit margin has been decided
9.(I) d) As public relations is used to improve image in society.
(II) d) Public relations department.
10.d)As company is taking step to check pollution.
Reasoning and assertion based questions
1.a)As exchange is the process of providing goods and services to customers and price of Product to
producer.
2.b)Reason is not correct explanation. As marketing generate customer value at profit because
customer satisfaction is the main objective of marketing
3.b)Reason is not correct explanation.As selling focuses on profit maximization through sales because
it is process of converting good into cash.
4.b)Reason is not the correct explanation of assertion as production concept focuses on increasing
scale of production to increase demand of product in the market.
5.a)As social responsibility of business is main reason of following social marketing concept.
6.d)As product mix covers tangible and intangible attributes both.
7.a)Brand provides a specific name to a product for identification.
8.a)Packaging is a silent salesman as it can attract consumer, if it is innovative and attractive.
9.a)Lower price increases number of customers.
10.a)Balanced level of inventory will cover demand and carrying cost both.
11.b)Reason is not the correct explanation as advertising is called a paid form of impersonal
communication because amount is to be paid for advertising and it is done through means of
communication.
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12.a)Personal selling is possible with face to face communication
13.a)Sales promotion activities are short term incentives so occasionally used.
14.a)Expenditure on advertisement is not waste but profitable investment because it increases sales and
profits for many years.
15.a)Industrial products are easily sold through personal selling because quarries can be easily solved
in personal selling.
Matching based questions
1.c)Production concept focuses on scale of production
Product concept focuses on quality of products
Selling concept focuses on promotional activities
Marketing concept focuses on customer satisfaction
2.b)Product mix is combination of tangible and intangible attributes of products
Price mix is related to deciding about pricing of product.
Place mix refers to provide products to customers at the right time, at the right place at the right
quantity.
Promotion mix refers to provide information to customers about product
3.b)Packaging is the process of preparing a wrapper or container for product
Branding is the process of preparing a name, sign or symbol for identification of products in the
market.
Labelling is the process of preparing a slip used to describe contents of products.
4.a)Advertising is done through identified sponsor.
Personal selling is paid form of personal communication
Sales promotion activities are short term incentives offered to customers.
Public relations is a non sales communication.
5.c) Procees of marketing
1. Gathering and analysing marketing information
2.Marketing planning
3.Product designing and development
4.Standardisation and Grading of products.

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 KENDRIYA VIDYALAYA SANGATHAN RAIPUR REGION
SAMPLE QUESTION PAPER
BUSINESS STUDIES (054)
Time :90 minutes CLASS XII TERM I 2021-22 MM : 40
1. Gabbar is a wholesaler of food grains. He categorises his stock into different groups on the
basis of their quality and also fixes up the prices accordingly. Identify the type of marketing
function being mentioned in the given line.
(a) Physical distribution
(b) Transportation
(c) Warehousing
(d) Standardisation and grading

2. According to the modem 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.

3. According to Taylor, “even a small production activity like loading figures of iron into boxes
can be scientifically planned and managed. This can result in tremendous savings of human
energy as well as wastage of time and materials.” Identify the related principle of scientific
management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above

4. This technique of scientific management aims to determine the amount and frequency of
rest intervals that should be provided to the employees during working hours.
(a) Time study
(b) Method study
(c) Motion study
(d) None of the above

5. ‘Twinkle Stars’ is a well-known resort for organising parties, especially for children.
However, in past 6 months its popularity has reduced considerably as a new resort with
better ambience and facilities has opened within its vicinity. Name the related feature of
business environment which has influenced the business of ‘Twinkle Stars’ adversely.
(a) Totality of external forces
(b) Dynamic nature
(c) Interrelatedness
(d) Uncertainty
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6. Agile Limited has launched a new range of air conditioners in order to add value to the
usability of the product. The new range of air conditioners have an inbuilt air purifier and are
available in attractive colours. Identify the type of marketing philosophy being described in the
above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

7. Which of the following is the correct matching pair-

(a) Helps in product protection --- Branding
(b) Helps in product designing --- Packaging
(c) Helps in identifying the product --- Product Development
(d) Helps in providing information to the customer --- Labelling Packaging

8. Which principle of general management advocates that, “Employee turnover should be

minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

9. Make the correct order of following marketing functions

I) Market planning
II) Gathering and analysing marketing information
III) Standardisation and grading
IV) Product designing and development
a) I, II, IV, III
b) I, IV, II, III
c) II, I, IV, III
d) IV, I, II, III

10. 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 1 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) Ecoriomic dimension
(b) Technological dimension
(c) Social dimension
(d) Political dimension
11. Management is equally important to run a political organisation as it is to run an economic
organisation. Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity
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12. (I) Delegation of authority is inevitable and decentralisation is voluntary.
(II) Scope of delegation of authority is limited and the scope of decentralisation is broad.
Both the above statements are:
(a) True (b) False
(c) Statement (I) is True and Statement (II) is False (d) Statement (I) is False and
Statement (II) is True
13. . India continues to be a lower-middle-income country along with 46 others, while Sri
Lanka has climbed to the upper-middle-income group for the fiscal year (FY) 2020, according
to the World Bank’s classification of countries by income levels, released on July 1, 2019.
Identify the related dimensions of business environment.
(a) Social dimension
(b) Technological dimension
(c) Economic dimension
(d) Political dimension
14. Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager
15. Two friends—Ramesh Singh and Krishan Gopal—are working as managers in different
companies. One Sunday, both of them together set off on travelling. Both of them began
talking about the activities going on in their respective companies. Mr Ramesh said that
during those days he was busy with the job of planning function of management. Also he told
that he was planning in such a way that the other managerial functions should be completed
under the framework of plans prepared by him. Identify the feature of planning described in
the above discussion.
(a) Planning focuses on achieving objectives.
(b) Planning is a primary function of management.
(c) Planning is pervasive.
(d) Planning is continuous.
16. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation

. Anil is a Managing director in a toy manufacturing company. He decided to set up a

new manufacturing unit of his company in a rural area of Bihar where job
opportunities are very less. He believes in using environmental friendly methods of
production and aims at giving employment opportunities to the disadvantaged section
of the community. As a manager he aims at reducing costs and increasing productivity
through better planning, organizing, directing staffing and controlling the activities of
the organization. Anil considers human resources as the greatest asset of any
organization. Getting work done through others is a major task of a manager as per
the views of Anil. As a manager Anil believes that his task is to make workers work
towards achieving the organizations’ goals. On the basis of the above paragraph
answer the following questions. On the basis of the above paragraph, answer the
following (questions no 17 to 19):
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17. Identify the level of management at which Anil is working.
(a) Top level management (b) Middle level management
(c) Lower level management (d) Supervisory level management

18. Identify the objective of management discussed in the given case (Choose the correct
alternative)
(a) Economic objective (b) Organizational objective
(c) Social objective (d) Personal objective

19 “As a manager, he aims at reducing costs and increasing productivity”. Name the
importance of management highlighted in the given statement. (Choose the correct
alternative)
(a) Management helps in achieving group goals. (b) Management creates a dynamic
organization.
(c) Management increases efficiency. (d) Management helps in achieving
personal objectives.

20. Mr Sanjiv Gupta decided to double the production of his company. Now he is going to
translate his decision into reality. Here, he is also thinking how many additional/extra
machines and workers will be required to achieve the production target. His dream will be
possible to be realised only after the arrangement for these extra sources is done. Which
stage of ‘Planning Process’ is being completed by Mr Gupta in the above event?
(a) Evaluating alternative courses (b) Selecting an alternative
(c) Implementing the plan (d) Follow-up action

21. Indigo Limited has a staff of 300 people which is grouped into different departments. The
organisational structure depicts that 100 people work in Production department, 150 in
Finance department, 20 in Technology department and 30 in Human Resource department.
Identify the type of organisational structure being followed by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of the above

22. Shaukeen Ahmed is working as a leading employee at the low level management in
‘Balaji Udyog Ltd.’ According to one plan, he has to prepare 100 units of high quality of one
item in a day, and every unit should not cost more than Rs500. When the work actually
started, it was learnt that the desired goods could be prepared within a day, but due to the
sudden inflation in the raw material, every unit was to cost Rs 550. Now Mr Shaukeen is in a
fix what to do and what not to do. Identify the ‘limitation of planning’ in the event given above.

(a) Planning leads to rigidity. (b) Planning may not work in a dynamic
environment. (c) Planning reduces creativity. (d) Planning involves
huge costs

23. Making assumptions for future is called

(a) Making derivative plans (b) Making policy
(c) Setting planning premises (d) All of the above
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24. Span of management refers to:
(a) Number of managers (b) Length of term for which a manager is appointed
(c) Number of subordinates under a superior (d) Number of members in top management

. After completing her Bachelors in Fashion Designing from a well-known college in

France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the
work in smaller units and each employee is well trained to perform his/her task
efficiently. The sales persons are allowed to close a deal with a buyer by giving a
maximum of 5 percent discount, whereas the decision to give any further discount
rests with Aditi as the final authority. In the earlier period of her business venture,
employees were asked to put in extra hours of work. In return she had promised to
give them a special incentive within a year. Therefore, when the business was doing
well, she honoured her commitment by giving bonus to her employees. She also
instructed her employees that communication from top to bottom should follow the
official lines of command. However, she tends to be more biased towards her female
employees, when it comes to solving the conflicts among employees. On the basis of
the above paragraph, answer the following questions from 25 to 27.
25. Aditi has divided the work in smaller units and each employee is well trained to perform
his/ her task efficiently. Which principle of management is being followed here?
(a) Centralization and Decentralization (b) Division of work
(c) Discipline (d) Order

26 “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5
percent discount, whereas the decision to give any further discount rests with Aditi as the
final authority”. Identify the principle of Management being followed here:
(a) Centralization and Decentralisation (b) Authority and Responsibility
(c) Unity of Command (d) Unity of Direction

27. “Therefore, when the business was doing well, she honoured her commitment by giving
bonus to her employees.” Which principle of management is being highlighted here?
(a) Discipline (b) Order
(c) Remuneration to Employees (d) Unity of Direction
28. (Assertion) Planning involves huge costs.
(Reasoning) Plans require scientific calculations to ascertain facts, figures and a
number of incidental costs as well, like expenses on boardroom meetings, discussions with
professional experts etc.
a Both A and R are true and R is the correct explanation of A.
b Both A and R are true and R is not the correct explanation of A.
c A is true but R is false.
d A is false but R is true.
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29. Assertion (A) Marketing Planning helps in collecting informations about consumers, their
requirements and expectations.
Reason (R) These planning are made for increasing the level of production, sales and
promotion of products etc.
Codes
(a) Both A and R are true. 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 correct, but R is incorrect
(d) A is incorrect, but R is correct
30. Assertion (A): Coordination ensures unity of action.
Reason (R): It gives a common focus to the effort of people with diverse interest.
Find the correct option:
(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 false
(d) A is false but R is true
31. Which of the following function is performed by the middle-level management?
(a) Analysis of business environment and its implication for survival of organisation.
(b) Maintenance of quality output and minimisation of wastage.
(c) Formulation of organisational goals and strategies.
(d) Interpretation of the policies framed by the top management.
32. Assertion (A) Branding is the most important technique in the modern days globalized
business.
Reason (R) Companies are decided to sell its products with name of the company or a
special brand name to cover a major share in the market.
Codes
(a) Both A and R are true. 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 correct, but R is incorrect
(d) A is incorrect, but R is correc
33. The responsibility flows
(a) In all directions (b) Downwards
(c) Upwards (d) None of the above
34. The form of organisation known for giving rise to rumours is called:
(a) Centralised organisation (b) Decentralised organization
(c) Informal organisation (d) Formal organisation

35. Prem Kamboj is working as the top level manager in a business organisation. He has
been given the job of preparing the plans for the whole company. Mr Kamboj is an expert in
making a correct forecast. At first, he looks for the different options to complete every job,
and then on the basis of their evaluation selects the most suitable option. In this way, by
taking correct decision and beating his competitors, he is moving forward. To which particular
point of the ‘importance of planning’ is the above event related?
(a) Planning provides direction. (b) Planning promotes innovative
ideas.
(c) Planning establishes standards for controlling. (d) Planning facilitates decision
making
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36. Assertion (A) Packaging ensures safety of the products.
Reason (R) It helps in promoting the product in the market.
Codes
(a) Both A and R are true. 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 correct, but R is incorrect
(d) A is incorrect, but R is correct
37. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
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.

38. Which of the following is not a demerit of functional structure?

(a) It places more emphasis on the objectives pursued by a functional head than on overall
enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

39. Make the correct order of following marketing functions

I) Market planning
II) Gathering and analysing marketing information
III) Standardisation and grading
IV) Product designing and development
a) I, II, IV, III
b) I, IV, II, III
c) II, I, IV, III
d) IV, I, II, III

40. Assertion (A)Packaging is known as a silent salesman.

Reasoning (R)Attractive and innovative package can attract a lot of customers to purchase
the product.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect
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ANSWER KEY : MODEL QUESTION PAPER

1.d), 2. c) , 3.b), 4.d), 5 b), 6 a), 7.d), 8.a), 9.c), 10.b),11c), 12.a), 13.c), 14.d), 15.b),

16.d), 17.a), 18.c), 19.c), 20.c), 21.a), 22.a), 23.c), 24.c), 25.b), 26.a), 27.a), 28.a),

29.d), 30.b), 31.d), 32.a) 33.c), 34.c), 35.d), 36.b), 37.b), 38.c), 39.c), 40.a)

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