500+ MCQ Booster (Term 1 Business Studies Class12th) by Tapan Pathak

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500+ MCQ Booster
Business Studies 12th Term1
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TAPAN PATHAK
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500+ MCQ Booster (Term 1 Business Studies Class 12) Tapan Pathak
Copyright ©Tapan Pathak, 2021.
All rights reserved.
Your suggestions are welcome at: bsttapanpathak@gmail.com
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Dear students,
This compilation of 510 questions is an effort from my side to help you with some freshly prepared questions. The solutions are
provided on YouTube through links given at the end of the chapter. I have very patiently handcrafted these questions to suit
your requirement.
Try to attempt each and every one.
Best regards,
Tapan Pathak
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Table of Contents
Chapter 1
Nature and Significance of Management………………………………….. 5-17
Chapter 2
Principles of Management…………………………………………………. 18-35
Chapter 3
Business Environment……………………………………………………… 36-49
Chapter 4
Planning…………………………………………………………………….. 50-63
Chapter 5
Organising…………………………………………………………………... 64-79
Chapter 11
Marketing……………………………………………………………………. 80-103
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Chapter-1
Nature and Significance of Management
Q.1.Since childhood Aditya has noted that wherever he goes he finds organisations properly
managed, employees coming on time and customers being treated properly. He has not even seen
a single organisation in which the management is not present.
Which characteristic of management is indicated above?
a) Goal oriented
b) All pervasive
c) Multidimensional
d) None of the above
Q. 2. ………….. and ………..... are the two sides of the same coin.
a) People, Work
b) Efficiency, Effectiveness
c) Planning, Organising
d) Management, Humans
Q. 3. .................... is concerned with the end result.

a) Efficiency
b) Effectiveness
c) Work
d) Both a and b
Q. 4. I am an owner of a shoe making company. Recently I gave an order to my team to make

10000 pairs of shoes. I asked them to deliver the order before 31st December and at a cost not
more than Rs. 100 per pair. The shoe quality was told to be kept at least 8 on a quality scale of 1
to 10. I also asked them to manufacture zero defect shoes. My team fulfilled the order by 25th
December, incurred cost of Rs. 120 per pair. The quality of shoe stood at 9 on the quality scale of
1 to 10. There was no defect in shoes.
Which of the following is true?
My team was
a) Effective, not efficient.
b) Efficient, not effective.
c) Both effective as well as efficient.
d) Neither effective nor efficient.
Q. 5. Company A has been able to reduce the cost of production but not been able to achieve the
production target this year.
The company has shown
a) Effectiveness
b) Efficiency
c) Both
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d) None
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Q. 6. Assertion: Management is an inexact science.

Reason: Management involves human beings and human behaviour can't be accurately
predicted.
a) Both Assertion and Reason are true and the given Reason is the correct explanation of the
Assertion
b) Both Assertion and Reason are true but the given Reason is not the explanation of the
Assertion
c) Assertion is true but Reason is false
d) Reason is true but Assertion is false
Q. 7. Which of the following is false about principles of management?

1. They are not as exact as principles of science
2. They provide managers standardised techniques which can be used in different situations
3. They can't be used for training and development of managers
a) 1,2.
b) Only 2.
c) 2,3.
d) Only 3.
Q. 8. Which of the following is true?

1. Scientific management principles were given by F.W.Taylor
2. Functional management principles were given by Henri Fayol
a) 1,2.
b) Only 1.
c) Only 2.
d) None.
Q. 9. The entry to a profession is restricted through

a) an examination
b) an educational degree
c) work experience
d) both a and b
Q. 10. Assertion: Professions necessarily have their codes of conduct

Reason: The behaviour of the members following a particular profession is not guided by this
code of conduct
Assertion
Assertion
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Q. 11. Which of the following is not the characteristic of a profession?

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a) Well defined body of knowledge
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b) Service motive
c) Personalised application
d) Professional association
Q. 12. Which of the following is neither the characteristic of art nor science?
a) Restricted entry
b) Personalised application
c) Universal validity
d) Systematised body of knowledge
Q. 13. Which of the following is not the duty of a top level manager?
a) Formulation of strategies
b) Interpretation of policies
c) Welfare and survival of the organisation
d) Taking responsibility for all the activities of the business
Q. 14. Middle level manager doesn't

a) ensure that the department has the necessary personnel
b) assign necessary duty to the employee in the department
c) motivate employees to achieve desired objectives
d) maintain quality of output and minimise wastage of material
Q. 15. Who are the first line managers?

a) Top level managers
b) Middle level managers
c) Lower level managers
d) Any one of the above depending upon the situation
Q. 16. Assertion: Lower level management is also known as operational management

Reason: At this level of management policies related to finance are interpreted.
Assertion
Assertion
Q. 17. Which of the following is not true?

1. Top manager's job involves long working hours.
2. Top managers are responsible for all the activities of the first line managers
3. Safety standards are maintained by the lower level managers in an organisation
a) Only 2
b) 1,3.
c) 1,2.
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d) 2,3.
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Q. 18. Which of the following is not a characteristic of coordination?

a) It integrates group efforts
b) It ensures smooth flow of finance
c) It ensures unity of action
d) It is a continuous process
Q. 19. Assertion: Middle level management coordinates with both the top-level and the lower
level managers
Reason: Coordination is a deliberate function
Assertion
Assertion
Q. 20. Assertion: Coordination ensures deviation of action

Reason: It acts as a binding force between different departments of the organisation
Assertion
Assertion
Q. 21. Assertion: Coordination is not a separate function of management

Reason: Coordination is the responsibility of all managers
Assertion
Assertion
Q. 22. Middle level managers coordinate with Top level managers and the
a) first line managers
b) second line managers
c) third line managers
d) fourth line managers
Q. 23-26. Sudhanshu is running a public school in the middle of the city. He has set a simple and
clearly stated target of attaining 100 percent pass rate for his students. All the teachers are giving
their best to help the school shine bright in the list of the public schools of the city. Two years
back when Sudhanshu's father was running the school the situations weren't favourable and
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despite very good efforts it was difficult to earn enough revenue to cover the cost incurred by the
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school. However, with the change in management and passage of time the various departments
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of the school have come together where they are making their efforts move in the common
direction. Sudhanshu's brother Himanshu who works in a multinational company is has also been
giving him tips about the management. Himanshu's job in his organisation is to coordinate the
activities of different departments as per the overall objectives of the organisation.
Q. 23. At which level of management does Himanshu work?
a) Top level management
b) Middle level management
c) Lower level management
d) Non- managerial level
Q. 24. Which characteristic of management is indicated in case of Sudhanshu's school?

a) Goal oriented process
b) Continuous process
c) Intangible force
d) Dynamic function
Q. 25. Which objective of management seemed unfulfilled during the time of Sudhanshu's
father?
a) Organisational objectives
b) Social objective
c) Personal objective
d) All of them
Q. 26. Which importance of management is indicated above?

a) Helps in achieving personal objectives
b) Helps in development of society
c) Increases efficiency
d) Helps in achieving group goals
Solutions:
Q.1 to Q.26………………. https://youtu.be/gbOHH2CoOvI
Q. 27-30. Sarika is a very sharp manager working in a multinational company. She takes care of
the number of necessary personnel in her department. In a recent intimation from the CEO of the
company, it was told to each and every manager of the company like her to perform better
management of the tasks so as to to reduce the costs and increase productivity at every level.
After having worked for 3 years in the company, Sarika was informed on the 10th of February
about 20% jump in her salary. This increase is a reward of aligning the operations with the
efforts of employees in such a manner that the associated work was completed on time.
Q. 27. At which level of management does Sarika work?
a) Top level management
b) Middle level management
c) Lower level management
d) Non- managerial level
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Q. 28. Which characteristic of management is indicated in the above case?
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b) Multidimensional
c) Intangible force
d) Dynamic function
Q. 29. Which objective of management has been fulfilled in the above case?
a) Organisational objectives
b) Social objective
c) Personal objective
d) All of them
Q. 30. Which importance of management is indicated above?

a) Helps in achieving personal objectives
b) Helps in development of society
c) Increases efficiency
d) Helps in achieving group goals
Q. 31. Assertion: The style of management of managers vary from one country to another
Reason: This is due to difference in the stock markets
Assertion
Assertion
Q. 32. Assertion: Human resources are the greatest resource of an organisation

Reason: Though technology has improved a lot yet getting work done through people is still a
major task for the manager
Assertion
Assertion
Q. 33. Management translates ............. in terms of ...............to be achieved.

a) work, goals
b) policies, objectives
c) humans, resources
d) techniques, resources
Q. 34. Which of the following statements are true?

1. Management deals with employees as individuals with diverse needs and behaviour
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2. Management deals with individuals as group of people

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3. The strengths and weaknesses of employees are not important when it comes to teamwork.
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a) 1,2.
b) 2,3.
c) Only 3
d) Only 2.
Q. 35. Which of the following is not an example of economic objective of management?

a) Ravi is working hard to ensure there is enough revenue earned by his factory so that costs
could be covered.
b) Drishti has decided to increase salary of her managers, keeping in mind their good
performance.
c) Sanchit has reached Africa to find the possibility of opening a new branch of his business
there
d) Both b and c
Q. 36. Which of the following is not an importance of management?

a) Increases efficiency
b) Creates a dynamic organisation
c) Helps in achieving personal objectives
d) Helps in creating intangibility
Q. 37. All organisations have to operate in an environment which is ....................................

a) continuously stable
b) same everywhere
c) decently monitored
d) constantly changing
Q. 38. Assertion: Management helps an organisation to adapt to changing business environment

Reason: Due to the adoption of these changes an organisation is able to maintain its competitive
edge
Assertion
Assertion
Q. 39-42. Sushant owns a chain of organic edible items. There are 50 branches of the
organisation spread across the length and breadth of the country. The management of the
organisation helps to develop team spirit, cooperation and commitment among the employees in
order to attain overall organisational objectives. The managers are given a proper explanation of
management principles yet they apply these principles in their own unique way in their branches.
Recently, Sushant has decided to create an environment for each and every employee so that he
gets recognition and doesn't feel alone in the middle of too much work. In a recent interview to
an international magazine he told that though the effects of management in his organisation were
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clearly visible as employees were happy and satisfied yet people questioned whether his
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organisation had management or not and this really baffled him.
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Q. 39. Which importance of management is highlighted in this case?

a) Increases efficiency
b) Creates a dynamic organisation
c) Helps in achieving personal objectives
d) Helps in creating intangibility
Q. 40. Which feature of art is highlighted in the above case?

a) Existence of theoretical knowledge
c) Based on practice and creativity
d) Useful insight
Q. 41. Which objective of management is being targeted by Sushant in his organisation?

a) Personal
b) Social
c) Organisational
d) Both a and b
Q. 42. Which characteristic of management is indicated in the above case?

b) Multidimensional
c) Intangible force
d) Dynamic function
Q. 43. Mr. A has set a target of manufacturing 10000 toys in his factory. In a very important
discussion with his team he has chalked out the course of action that will help them achieve this
goal most effectively and efficiently.
Which function of management is indicated in the above case?
a) Planning
b) Organising
c) Staffing
d) Controlling
Q. 44. Manmeet is successfully running a restaurant. One day he finds out that a few of the
waiters and two of his managers have quit their positions due to some issues with the
management. He quickly starts focussing on selection, placement and training of new employees
inorder to avoid any loss of business.
a) Planning
b) Organising
c) Staffing
d) Controlling
Q. 45. Which of the following is not associated with the function of controlling?
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a) Establishing standards of performance

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b) Comparison of performance with established standards
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c) Taking corrective action

d) Constantly motivating the employees
Q. 46. Ravinder is a manager in a firm which is involved in clothing business. He is very

hardworking and knows how to catch the pulse of his subordinates. He consistently motivates
them, praises their good performance and whenever they underperform criticizes them so as to
bring out the best.
a) Planning
b) Organising
c) Directing
d) Controlling
Q.47. Which process starts in an organisation at the planning stage itself?

a) Limiting the activities of an organisation
b) Coordinating the activities of an organisation
c) Researching the activities of an organisation
d) Recognising the activities of an organization
Q.48. Controlling takes care of ................. between the set standards and the performed actions.
a) discrepancies
b) compunding
c) attatchments
d) frequency
Q.49. Which of the following word cannot be associated with coordination?

1. Separate function of management
2. Common thread
3. Binding force
4. Essence of management
a) All of the above
b) None of the above
c) 1,2.
d) Only 1.
Q.50. Science is systematised body of knowledge because

a) it is developed through observation and tested through repeated experimentation
b) its principles are based on cause and effect relationship
c) its principles have universal application
d) All of the above.
Q.51. What is the common point between management and science?

a) Systematised body of knowledge
b) Principles based on experimentation
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d) None of the above.
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Q.52. Assertion: All management practices are based on same set of principles.
Reason: Management practices are tested in laboratories.
Assertion
Assertion
Q.53. Which of the following is not a common point between management and art?
a) Existence of theoretical knowledge
c) Based on practice and creativity
Q.54. The basic motive of a .................. is to serve the client's interests by rendering dedicated
and committed service.
a) Management
b) Art
c) Profession
d) All of the above
Q.55. Which characteristic of the identified option is indicated in the previous question?
a) Service motive
d) Professional association
Q.56. Rajiv is a successful businessman who has performed very good in his business. Recently
he determined what activities and resources will be required by his company. Everything is clear
to him and his team for example- Who will perform a particular task, where it will be done and
when it will be done. This type of clarity shows his involvement in his business.
a) Planning
b) Organising
c) Directing
d) Controlling
Q.57. Which function of management will help in establishment of an atmosphere that

encourages employees to do their best?
a) Planning
b) Organising
c) Directing
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d) Controlling
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Q.58. Which of the following is not false?

1. Coordination involves synchronisation of activities
2. Staffing is involved in finding the right people for the right job
3. It is the duty of top level management to take care of all the activities of the organisation.
a) 1,2.
b) 2,3.
c) 1,2,3.
d) Only 1.
Q.59. In ABCD Ltd. coordination is involved as a binding force between various departments so
that the organisation moves towards its objectives.
Which characteristic of coordination is indicated in the above case?
a) Integrates group efforts
b) Unity of action
c) Continuous process
d) Responsibility of all managers
Q.60. Which of the following statements is true?

1. Cooperation in the absence of coordination leads to wastage of efforts.
2. Coordination in absence of cooperation leads to enhanced satisfaction among employees.
a) Only 1.
b) Only 2
c) Both 1 and 2.
Q.27 to Q.60……………... https://youtu.be/xqsRLU9PMGg
Q.61. Samrat has started business of manufacturing scissors in a factory. The factory is of large
size and has employees and departments of different types. In this situation, he takes proper care
to coordinate the efforts of these different employees and departments in a conscious manner.
b) Unity of action
c) Deliberate function
Q.62. .......................... is a part of all management functions.

a) All pervasive
b) Coordination
c) Organisation
Q.63. Somesh is working as a CEO of a company. He deals with different types of people in his
company who perform different types of activities which are many of the times unrelated. His
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job is to unify these unrelated and diverse activities and interests into purposeful work so that a
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common focus could be provided.
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b) Unity of action
Q.64. Which of the following statements are false?

1. Operational level management coordinates with both the top-level and the first line managers.
2. Middle level management coordinates with their subordinates to ensure that overall policies
for the organisation are duly carried out.
a) 1,2.
b) Only 1.
c) Only 2.
Q.65. Assertion: Coordination is required at all levels of management.

Reason: The activities of various departments are interdependent in nature.
Assertion
Assertion
Q.66. Which of the following statement is false?

1. Absence of coordination results in chaos.
2. Coordination is not a one-time function.
3. Specialisation arises out of the simplicities of modern technology.
a) 1,2.
b) 2,3.
c) Only 3.
d) Only 2.
Q.67-69.Recently a major problem was avoided in an organisation when two departments of

marketing and finance were almost in conflict with each other. The conflict arose due to the
offering of higher discount to the old customers. This decision of marketing department was
opposed by the finance department. However, it was due to the intervention of the top level
management that this issue could be sorted out after proper discussions with both the
departments. Both the departments were ultimately able to understand that complete
harmonization of departments with that of the organisation goal is necessary. Gradually, all the
levels of management were involved in this process of meeting and discussions as this
harmonisation ultimately should be taken care by all of them.
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Q.67. Which concept of management is applied by the organisation in the above case?
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a) Planning
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b) Coordination
c) Training
d) Lean management
Q.68. Which characteristic of coordination is indicated in the above case?

b) Unity of action
Q.69. Which importance of coordination is highlighted in the above case?

The need of coordination in an organisation increases when there is
a) Growth in size
b) Functional differentiation
c) Specialisation
Q.70. Which of the following is false about specialists in an organisation?

a) Specialists never think that they are only qualified to evaluate and decide
b) They always take suggestions from others in matters of their area of specialisation
c) Both a and b
d) Modern organisations have high degree of specialisation.
Q.61 to Q.70..……………. https://youtu.be/RP_4mEqPja0
For solutions to Nature and Significance of Management MCQs click on the following YouTube
links:
Q.1 to Q.26………………. https://youtu.be/gbOHH2CoOvI
Q.27 to Q.60……………... https://youtu.be/xqsRLU9PMGg
Q.61 to Q.70..……………. https://youtu.be/RP_4mEqPja0
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Chapter 2
Principles of Management
Q.1. Which of the following is not related with principle of 'Remuneration of Employees'?
1. Reasonable standard of living
2. Fair compensation
3. Concentration of authority
4. Congenial atmosphere
a) 1.
b) 2,3.
c) 3.
d) 1,2.
Q. 2. The ................ lines of authority from the highest to lowest ................. are known as scalar
chain.
a) informal, ranks
b) formal, credibility
c) structural, ranks
d) formal, ranks
Q. 3. Which of the following is false regarding Unity of Command principle as told by Fayol?
1. It supports principle of dual subordination
2. It affects an individual employee
3. More than one subordinate can take orders from multiple bosses during the time of emergency
a) Only 2.
b) 1,3.
c) Only 1.
d) 2,3.
Q. 4. What happens if principle of unity of command is violated?

1. Discipline is in danger
2. Stability is enhanced
3. Order is interpreted
4. Authority is undermined
a) 1,4.
b) 2,3.
c) 2,4.
d) Only 1.
Q. 5. According to Fayol:
1. Organisation should have a chain of authority and communication
2. It can run from bottom to top
3. It should be followed by managers and the subordinates
a) 1,2.
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b) 1,3.
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c) 2,3.
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d) Only 2.
Q. 6. The company would want to get maximum output from the employees at...................... cost
a) gainful
b) constituting
c) competitive
d) complete
Q. 7. Which of the following is not related to principle of Equity?

1. Fairness to employees
2. Kindliness and Justice towards workers
3. Fayol ruled out use of force
a) 1,3.
b) Only 2.
c) Only 3.
d) 1,2.
Q. 8. Sanjay told his team of workers that they will be provided reasonable time to show results.
Which principle of Fayol is indicated in this line?
a) Equity
b) Division of work
c) Stability of personnel
d) Initiative
Q. 9. Sanjay is the head of an MNC having employees of various nationalities and races. Which
principle should not be violated at any cost in his organisation?
a) Equity
b) Division of work
d) Initiative
Q. 10. People and materials must be in suitable places at ..................... time for maximum
...................
a) scheduled, effectiveness
b) appropriate, efficiency
c) appropriate, effectiveness
d) standard, efficiency
Q. 11. Which types of costs increase in case of violation of principle of stability of personnel?
1. Recruitment costs
2. Raw material costs
3. Electricity charges
4. Selection costs
5. Training costs
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6. Advertising charges
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a) 1,4,5.
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b) 2,3,4.
c) 1,3,5.
d) 2,3,6.
Q. 12. Arun is the departmental head working in an organisation. He is keen on showing

exemplary behaviour in the organisation. Due to this reason he comes on time and never misuses
his power for individual benefits.
Which principle of Fayol is followed by Arun here?
a) Equity
b) Division of work
d) Subordination of individual interest to general interest.
Q. 13. Rajesh is the owner of a business having two separate divisions. First division deals in
manufacturing of garments, the other division deals in manufacturing of cosmetics. Each division
has its own incharge, plans and execution resources.
Which principle of Fayol is followed here?
a) Equity
b) Division of work
c) Unity of direction
d) Subordination of individual interest to general interest.
Q. 14. Which of the following will lead to violation of 'Subordination of individual interest to
general interest'?
1. An employee trying to get maximum salary by working least
2. Good steps taken by the manager to ensure his status rises in the eyes of his subordinates
3. The interests of organisation are given priority.
a) Only 1.
b) Only 2.
c) 2,3.
d) 1,3.
Q. 15. Ravi was offered higher salary by his boss on a precondition of working extra hours after
normal shift. This was done to meet manufacturing deadline. However, even after great efforts,
his boss didn't increase his salary.
Which principle of Fayol is violated here?
a) Equity
b) Division of work
c) Remuneration
d) Discipline
Q. 16. Mr. A is a sales head department in a reputed company. He has decided to provide credit
period of 80 days to his clients who are unable to pay for the product at the time of buying. The
CEO of the company has not agreed to this request of Mr. A because he feels that this
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requirement is more than suitable. However, Mr. A has time and again repeated that the credit
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period of 40 days is very less and feels helpless when it comes to closing the deals.
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Which principle of Fayol is violated here?

a) Equity
b) Authority and responsibility
c) Remuneration
d) Discipline
Q. 17. Which of the following statements are false?

1. When authority given is more than required than it leads to proper utilisation of authority.
2. Responsibility is the obligation to perform a given task.
3. Responsibility is the corollary of authority
a) 1,3.
b) Only 1.
c) Only 3.
d) 1,2.
Q. 18. Which of the following statements regarding Fayol's principle of 'Division of Work' is
correct?
1. The intent of division of work is to produce more and better work for the same effort.
2. Specialisation is the most effective way to use human effort.
a) Only 1.
b) Only 2.
c) Both 1&2.
d) No statement is correct.
Q. 19. The principle of Division of work is applied to which kind of work-

a) Technical
b) Managerial
c) Both a and b
Q. 20. Each group of activities having the same............... should have one ................ and
one......................
a) concern, plan, level
b) objective, level, direction
c) objective, head, plan
d) specialisation, direction, concern
Q. 21. Which of the following statement is true?

1. Unity of direction affects an individual employee
2. Scalar chain prevents overlapping of activities
3. Training costs increase if employee turnover ratio increases
a) 1,2.
b) 2,3.
c) Only 3.
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d) 1,3.
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Q. 22. Which of the following is true regarding Scalar chain?

1. In an emergency situation a worker can contact the CEO directly
2. Gang plank can be used during emergency as a shorter route of communication
3. The formal lines of authority from lowest to highest ranks are known as scalar chain.
a) 1,2.
b) Only 3.
c) 2,3.
d) Only 2.
Q. 23. In a Multinational Company working at global level, there is a culture of promoting

employees to take first step with self motivation.
Which of the following principle is followed here?
a) Division of work
b) Espirit De Corps
c) Initiative
d) Unity of direction
Q. 24. Mr. B, who is the marketing head of his company has told in a very important meeting to
his team that that there should be promotion of teamwork as their organisational size is
increasing, otherwise they won't be able to complete the set objectives.
Which principle of Fayol is highlighted here?
a) Division of work
b) Espirit De Corps
c) Initiative
Q. 25. Assertion: Earlier Authority and Responsibility meant empowerment of managers but now
it means empowerment of employees.
Reason: This change has come due to the emergence of flat organisational structures.
a) Both Assertion and Reason are true and Reason given is the correct explanation of Assertion
b) Both Assertion and Reason are true but Reason given is not the correct explanation of
Assertion.
d) Assertion is false but Reason is true
Q.1 to Q.25………………. https://youtu.be/9lE8gTJ_8SI
Q. 26. During the time of Fayol, commitment was obtained through 'kindness'. In today's context
it is obtained through
a) declaration
b) appreciation
c) ownership
d) Both a and b
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Q. 27. Which of the following factors will decide the method of time study?
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1. Volume and frequency of task

2. Cycle time of operation
3. Time measurement costs
4. Arrangement of items
a) 1,2,3.
b) 2,3.
c) 3,4.
d) Only 4.
Q. 28. Dhiraj is a factory manager who works very hard on the shop floor. He has decided to
involve a technique of scientific management which will help him determine labour costs and
frame proper incentive schemes.
Which technique of scientific management is involved by Dhiraj here?
a) Method study
b) Motion study
c) Time study
d) Fatigue study
Q. 29. Aditya wants to reward efficient workers in his factory.

Which technique of scientific management should be involved here?
a) Method study
b) Differential piece wage system
c) Time study
d) Fatigue study
Q. 30. Which of the following is not a cause of fatigue at work place?

a) Long working hours
b) Uncordial relation with the boss
c) Bad working conditions
d) Too much professionalism
Q. 31. The objective of time study is to

a) find productive steps
b) determine the standard time taken to do a job
c) determine the number of workers to be employed
d) Both b and c
Q. 32. Sajjan is a very hardworking worker in a textile factory. He quite often complaints of very
short duration provided to him for lunch. He has decided to raise this issue in front of the
operational level manager so that at least half an hour of lunch duration should be provided to all
the workers.
Which technique of scientific management should be involved here?
a) Method study
23
c) Time study
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d) Fatigue study
23
Q. 33. Achieving excellence and quality in materials falls under which technique of scientific
management?
a) Standardisation
b) Simplification
c) Time study
d) Both a and b
Q. 34. Taylor's associate ............................... reduced number of motions in brick layering from
.................................
a) Francis Gailworth, 18 to 5
b) Francis Gailberth, 20 to 8
c) Frank Gailberth, 18 to 5
d) Fredrick Gailworth, 20 to 4
Q. 35. Who devised the concept of assembly line?

a) Ford
b) Frank Gailberth
c) Taylor
d) Henry Fayol
Q. 36- 37. Sheetal has got a new job in a very good business firm. She threw a party to her
friends in celebration of achieving this success. Her friends inquired about her potential salary.
She replied by saying that it will be according to the industry standards and the degree of efforts
put by her.
Q. 36. Which principle of Fayol is indicated above?
a) Division of work
b) Remuneration
c) Initiative
Q. 37. Which nature of principle of management is highlighted here?

a) Universally valid
b) Contingency
c) Flexibility
Q. 38-39. Manish is the CEO of a renowned MNC. In an interview to the media he told that it
was due to his education in principles of management, acquired during his MBA, his knowledge,
ability and understanding of the real business situations have increased to a very large extent. As
he is the CEO of a multinational company, he has a lot of responsibility on his shoulders to
ensure that employees don't face discrimination on the basis of nationality, race or gender.
Q. 38. Which principle of Fayol is indicated above?
a) Division of work
24
b) Remuneration
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c) Initiative
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d) Equity
Q. 39. Which importance of principle of management is indicated above?

a) Providing managers with useful insight into reality
b) Optimum utilisation of resources and effective administration
c) Fulfilling social responsibility
d) Management, training, education and research.
Q. 40. Which of the following is associated with simplification?

1. Reducing a given line or product to fixed types and sizes.
2. Establishing standards of performance
a) 1 and 2.
b) Neither of the two.
c) Only 1.
d) Only 2.
Q. 41. Assertion: Big companies like Microsoft, Toyota, Apple and Amazon have been capable
of serving successfully large number of customers with efficiency and effectiveness.
Reason: These organisations have applied the Taylor's technique of standardisation and
simplification.
Assertion.
Q. 42. Which of the following is not achieved by simplification?

a) Reduction of costs
b) Fuller utilisation of equipments
c) Increase in employee turnover ratio
d) Elimination of superfluous varieties
Q. 43. Assertion: Taylor was a strong supporter of the piece wage system
Reason: He considered equality towards efficient and inefficient workers
Assertion.
Q. 44-45. Rajan and Sushma are two top level managers. They have been given the duty to
design the management policy of the organisation for the coming years. After the meeting it is
decided that there is a need to delegate more authority to the lower level managers. However in
the meeting it is also decided that this will be done as per requirement and if in case the
25
delegated authority seems to be more, it will be retained so that a proper balance could be
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maintained.
25
Q. 44. Which principle of Fayol is highlighted above?

a) Centralisation and Decentralisation
b) Remuneration
c) Initiative
d) Equity
Q. 45. Which nature of principles of management is highlighted here?

a) Universally valid
b) Contingency
c) Flexibility
d) General guidelines
Q. 46. Which of the following statements are true?

1. Foreman is the lowest ranking manager and worker.
2. Functional foremanship is the extension of principle of Division of work to the shop floor.
3. Under planning in charge there is a factory manager
a) Only 2.
b) Only 1.
c) 2,3.
d) 1,3.
Q. 47. Rajesh is a factory owner who is very progressive in his thinking and recently had a very
important discussion with a team of lower level managers. He has decided to apply the technique
of Taylor which violates the principle of unity of command.
Which technique do you think he applied?
a) Method study
c) Functional foremanship
d) Fatigue study
Q. 48. Which of the following statements is false?

1. Disciplinarian comes under Production Incharge
2. Taylor proposed a dozen specialists for the shop floor
a) 1,2.
b) Only 2.
c) None.
d) Only 1.
Q. 49. Kaizen means ........................

a) Timely intervention
b) Continuous growth
c) Exponential improvement
d) Continuous improvement
26
Q. 50. Contemporary techniques of business process like reengineering and benchmarking are
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concerned with
26
a) Differential piece wage system

b) Method Study
c) Standardisation
d) Simplification
Q.26 to Q.50……………... https://youtu.be/s5F-I10tJOM
Q.51. In a shop floor around a Foreman revolves the entire production

1. planning
2. implementation
3. research
4. control
a) 1,2.
b) 2,3,4.
c) 1,2,4.
d) Only 3.
Q.52. Assertion: Operations research was developed in the second world war
Reason: It was developed to optimise the deployment of war material
Assertion.
Q.53. Assembly line for Ford was made for manufacturing

a) Model T car for classes
b) Model T car for masses
c) Model B car for classes
d) Model C car for masses
Q.54. Taylor did work study experiments in

a) Bethlehem Steel Company
b) Charles' Iron Shop
c) Beverly Steel Company
d) Morris Manufacturing Company
Q.55. According to differential piece wage system:

a) Efficiency is the result of joint efforts of the managers and the workers
b) Effectiveness is the result of joint efforts of the managers and the workers
c) Quality is the result of joint efforts of the managers and the workers
Q.56. Which of the following were used by Taylor during motion study?
27
a) Stopwatches
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b) Symbols and colours
27
c) Both a and b
d) Speed breakers
Q. 57. Which technique of Taylor involved process charts and operations research?
a) Motion study
b) Method study
c) Time study
d) Fatigue study
Q. 58. Assembly line is associated with

a) Differential piece wage system
b) Method Study
c) Standardisation
d) Simplification
Q. 59. Which of the following is the trait of an intelligent person?

a) Stability of personnel
b) Remuneration
c) Initiative
d) Equity
Q. 60. Which of the following is not included in the significance of principles of management?
c) Fulfilling technical responsibility
Q. 61. Which of the following is not included in the nature of principle of management?
1. Universal applicability
2. Contingency
3. Consistency
4. Flexibility
5. Awareness
a) 1,2,4.
b) 2,3,5.
c) 3,4.
d) 3,5.
Q. 62. The extent of applicability of principles of management depends upon

a) Nature of the organisation
b) Business activity
c) Scale of operations
d) All of the above
28
Q. 63. Assertion: Principles of management are guidelines to action but they do not provide
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readymade solutions to all managerial problems
28
Reason: Real business situations are very simple and dynamic and are dependent on many
factors
Assertion.
Q. 64. Assertion: Management theory has answers for all managerial problems and situations
Reason: Principles of management are at the core of management theory
Assertion.
Q. 65. Assertion: Management theories and management principles have developed in response
to the demand made by the public
Reason: Demands made by public are completely predictable
Assertion.
Q. 66. Assertion: Management principles which are based on decisions are free from bias and
prejudice
Reason: Decisions which are based on management principles are based on the objective
assessment of the situation.
Assertion.
Q. 67. Sushma has started a business on her own in a small town where she resides. She takes
orders to stitch clothes and is managing a team of more than 100 women from nearby places.
Management decisions taken in her organisation are based on the principles of management and
are timely, realistic and measurable.
Which significance of principles of management is highlighted here?
c) Scientific decisions
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Q. 68. Which of the following are non- core activities to a business?
29
1. Research & Development

2. Advertising
3. Share-transfer management
4. Manufacturing
5. Marketing
a) 1,2,3.
b) 2,3,4.
c) 2,3.
d) 1,2,5.
Q. 69. Today companies are outsourcing their activities, both core and non-core, to outside
agencies. This development can be seen as an adaptation of the management principle
of.................................... to the changing times.
a) Division of work
b) Authority and responsibility
d) Initiative
Q. 70. Assertion: Effective administration requires that the managerial conduct should be
impersonalised.
Reason: This will result into the use of managerial power with due discretion.
Assertion.
Q. 71. Assertion: Large MNCs have limitless availability to human and material resources.
Reason: The resources available to an organisation should be put to optimal use.
Assertion.
Q. 72. Optimum use of resources means

a) maximum benefit
b) minimum cost
c) Maximum knowledge
d) Both a and b
Q. 73. Assertion: Principles of management limit the boundary of managerial discretion

Reason: This helps the managerial decisions to be free from personal prejudices and biases.
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Assertion.
30

Q. 74. Assertion: The principles of management are not perfect

Reason: They mainly apply to human behaviour
Assertion.
Q.51 to Q.74……………... https://youtu.be/HfFngQzbIzc
Q. 75- 76. Raju has turned 70 years old. He has now decided to retire from his business. One
day, he calls his son, who supports him in his business and will soon be taking charge of the
entire business from him. When his son shows his desire to start a new factory, Raju advises him
to consider planning the layout of the factory properly in such a manner that the workflows are
matched by flow of materials and movement of men.
Q. 75. Which principle of Fayol is indicated in Raju's suggestion to his son?
a) Order
b) Equity
c) Discipline
d) Division of work

a) Contingent
b) Mainly behavioural
c) Cause and effect relationships
d) Universal applicability
Q. 77. Assertion: In case of principles of management, accurate cause and effect relationships
may be difficult to obtain.
Reason: When it comes to actual business and real life, all the situations are not identical.
Assertion.
Q. 78. Individual principles of management are like different tools serving different purposes so
it is the manager who has to make a choice among these tools as per the requirement of the
circumstances.
Which nature of principles of management is highlighted here?
a) Contingent
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b) Mainly behavioural
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31
d) Flexible
Q. 79-80. Udit is a budding entrepreneur who has started company with limited means. The first
important step he has taken is to divide the work to be done in the organisation into tasks to be
taken up by a few individuals working under him. His brother, Mukul works in an MNC. The
size of the MNC is huge and it has various departments like manufacturing, sales, operations,
finance, research & development, etc. We can see that the principles of management are
applicable in all types of organisations. However the extent of their applicability varies.
Q. 79. Which principle of Fayol is applied by Udit here?
a) Division of work
b) Unity of command
d) Espirit de corps

a) Contingent
b) Universal applicability
d) Flexible
Q. 81. Taylor was able to achieve ..................... increase in productivity by application of

principles of management in...................... steel company.
a) threefold, Charlie
b) fourfold, Bethlehem
c) threefold, Bethlehem
d) twofold, Charles
Q. 82. 'The more sophisticated the processes, greater would be the savings'.
The above mentioned statement is related to which principle of Taylor?
a) Science not Rule of Thumb
b) Harmony, Not Discord
c) Cooperation, Not Individualism
d) Development of Each and Every Person to his or her greatest efficiency and prosperity.
Q. 83. Which of the following is true about Japanese work culture?

1. There are a lot of violent strikes
2. Paternalistic style of management is practised
3. There is complete openness between management and workers
a) Only 1
b) 1,3.
c) 2,3.
d) Only 3.
Q. 84. Which of following is false about the principle of 'Cooperation, Not Individualism'?
32
1. It is an extension of the principle of 'science, not rule of thumb'.

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2. Competition should be replaced with satisfaction.
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3. Management should take all decisions on its own without consultation.

a) 1,2,3.
b) 2,3.
c) None.
d) Only 1.
Q. 85. Sanjiv is the owner of a factory. He has decided to equally divide work between the
workers and the management. He has also asked the managers in his team to work alongside the
workers and timely encourage them in order to improve the performance of the whole factory.
Which principle of Taylor is followed in his factory?
Q. 86. According to Taylor, if there is ........................ system and goodwill there will be no
requirement of ..........................
a) diagonal communication, task force
b) support, emergency team
c) open communication, trade union
d) open communication, management information
Q. 87. In the previous question which principle of Taylor is indicated?

Q. 88. According to Taylor, ......................... efficiency depends to a large extent on personal

.................
a) industrial, competencies
b) personal, qualities
c) managerial, qualification
d) continuous, expenses
Q. 89. In the previous question which principle of Taylor is indicated?

Q. 90. According to which principle of Taylor management should share gains of the company
with the workers?
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33
Q. 91. Which of the following statements is not supported by Taylor?

1. Both workers and management should be part of the family.
2. Workers should work hard and be willing to embrace change for the good of the company.
a) None.
b) 1.
c) 2.
d) Both.
Q. 92. In the previous question which principle of Taylor is reflected?

Q. 93. According to Taylor, who has got the mandate to get work done from the workers?
a) Owner
b) Workers
c) Managers
d) All of the above

Q. 95. Sujata is quite convinced that she need to take proper care of employees and workers in
her company because unless they are prosperous, the employer can never become prosperous.
Which principle of Taylor is indicated in the above lines?
Q. 96. Taylor believed that there was only one best method
1. to maximise efficiency
2. which could be developed through study and analysis
3. which is a part of chemical engineering
a) 1,2.
b) 1,3.
c) 2,3.
d) Only 3.
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34

Q. 98. According to Taylor, scientific management has for its foundation the firm conviction that
the true interests of the management and workers
a) go in opposite directions
b) overlap
c) are one and the same
d) differ as per conditions

Q. 100. Which of the following is false regarding Mental Revolution?

1. It involves a change of attitude of workers and management towards one another
2. This change of attitude is based on kaizen.
3. It means that management and workers should transform their thinking.
a) Only 2.
b) 2,3
c) None
d) 1,2,3.
Q.75 to 100……………….. https://youtu.be/i4_oLp8Dif8
For solutions to Principles of Management MCQs click on the following YouTube links:
Q.1 to Q.25………………. https://youtu.be/9lE8gTJ_8SI
Q.26 to Q.50……………... https://youtu.be/s5F-I10tJOM
Q.51 to Q.74……………... https://youtu.be/HfFngQzbIzc
Q.75 to 100……………….. https://youtu.be/i4_oLp8Dif8

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35
Chapter 3
Business Environment
Q.1. Business environment is sum total of all things .................... to business firms and is
.................... in nature.
a) conditional, specific
b) hypothetical, aggregative
c) external, aggregative
d) external, internal
Q.2. Just take the ..................... substract from it the subset that represents the ..................... and
the remainder is ......................
a) Universe, Organisation, Environment
b) Organisation, Universe, Economy
c) Technology, Organisation, Environment
d) Environment, Organisation, Department
Q.3. Increase in the literacy rate and interest of people in current affairs has resulted into the
increase in demand of newspapers.
Which feature of Business Environment is indicated here?
a) Totality of external forces
b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.4.Which of the following is true?

1. Investor is a specific force
2. Technological condition is a specific force
3. Action of government on a banned product is a political dimension
a) Only 3.
b) 2,3.
c) Only 2.
d) Only 1.
Q.5. Rajiv is running a showroom in which he sells fashionable items. In the coming years in
order to expand his business he needs to take loan. However, he is unsure whether he will be able
to pay monthly installments on the loan taken or not.
Which feature of Business Environment do you find reflected here?
b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.6. XYZ Burgers is a multinational company which deals in serving burgers of different tastes.
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The organisation is very dynamic and keeps on changing its menu according to the requirement
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of the people of different countries.
36
Which dimension of business environment is indicated here?

a) Social
b) Technological
c) Political
d) Economic
Q.7. ABCD Ltd has recently started its operations in country X. The CEO of the company, Mr.
A, is very much assured that the prevalent stability and peace in the country will continue in the
similar manner for coming decades. In a recent interview Mr. A said that country X is a
democracy and has strong administrative machinery.
a) Social
b) Technological
c) Political
d) Economic
Q.8. The idea of women empowerment is getting more recognition with the passage of time. The
major reason is the increase in participation of women at higher positions and overall women
literacy. The government is also coming out with various schemes and policies to ensure the
improvement of women's status in the country.
a) Social
b) Technological
c) Political
d) Economic
Q.9. MNCs of the whole world find it easier nowadays to open their offices in country Y due to
the favourable mind set of the current government. It is believed that in the coming time majority
of the multinational companies who are counted among top 100 would be opening their offices
here. This will result in increase in income of the common people which will also result in the
demand of products of superior consumption.
Which dimensions of business environment are highlighted here?
1. Social
2. Political
3. Economic
4. Technological
a) 1,2.
b) 2,3.
c) 1,3.
d) 1,4 .
Q.10-12. JKLM Ltd. has decided to start a special package of tourism for its clients coming from
abroad. There will be a train journey from Delhi to Mumbai with various historical stations in
between. The journey will be further decorated with numerous wonderfully organised events. It
37
is the first tourism package of its kind. Every individual tourist will be digitally monitored
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through special equipments given to them. These equipments will help collect feedback from
37
them. Health status of the tourists will also be updated on daily basis. Despite all these efforts, in
today's world there is no surety of success in tourism industry as any bad news at global level
can reduce the interests of the tourists.
Q.10.Which dimension of business environment is indicated above?
a) Technological
b) Economic
c) Political
Q.11.Which importance of business environment is indicated above?

a) It helps the firm to identify opportunity and take first mover advantage
b) It helps the firm to identify threats and early warning signals
c) It helps the firm in improving performance
d) It helps in coping with rapid changes
Q.12. Which feature of business environment is indicated above?

b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.13-14. After adopting New Economic Policy the Government reduced the number of
industries under compulsory licensing to six. The new economic reforms brought changes in the
buying patterns of the people of India. The customer became more demanding and powerful
because of availability of more options.
b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.14. Which dimension of Business Environment is indicated here?

a) Technological
b) Legal
c) Political
Q.15. Which of the following is true?

1. Managers should adopt suitable business practices to help improve the performance of
organisations
2. Today mainly the change is important; the pace of change can still be ignored.
3. Business environment can be better understood in parts
a) 1,2.
b) 2,3.
38
c) 1,3.
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d) 1,2,3.
38
Q.16-17. A Multinational Company has 1400 offices around the world. It deals in providing food
items. The major presence is in countries like USA, Argentina, India and Russia. However, the
environments in all these countries are different. This is the reason it has to adopt different
policies country wise. The tastes of its items have to be changed as per the culture and choices of
people in these countries.
Q.16. Which dimension of Business Environment is indicated here?
a) Technological
b) Legal
c) Political
d) Social

b) Interrelatedness
c) Dynamic nature
d) Relativity
Q.18. Assertion: Business environment is a complex phenomenon

Reason: It's relatively easier to understand in parts but difficult to grasp in totality
Assertion.
Q.19. Assertion: It is difficult to predict the coming future in the field of information technology
Reason: Situations which are present in one country may not be present in another country
Assertion.
Q.20. Assertion: A strong competitor can prove to be a threat to an organisation

Reason: Threat can be tackled by taking the shorter route of selling before going for proper
product development.
Assertion.
Q.21. Which of the following is not an example of opportunity?

39
1. Being the first in the market

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2. Recognising need of the market
39
3. Well developed marketing team noticing a positive trend

a) 1,2.
b) 2,3.
c) 1,2,3.
Q.22. There is improvement in the level of education of the people in country X. This is expected
to motivate them to have an innovative mindset. A recent newspaper in an article has mentioned
the possibility of emergence of scientific frame of mind in the citizens in the coming decade.
Which dimension of business is highlighted here?
a) Technological
b) Legal
c) Political
d) Social
Q.23. .............. refer to concepts that a society holds in high.................

a) Norms, quality
b) Techniques, technology
c) Values, esteem
d) Traditions, values
Q.24. Social trends present various ........................ and .................... to business firms
a) opportunities, threats
b) laws, theories
c) advantages, contracts
d) disadvantages, orders
Q.25. Environmental .................. helps managers to identify threats on time and serves as
.....................................
a) study, extra edge
b) awareness, opportunity
c) awareness, early warning signal
d) disorientation, early warning signal
Solution:
Q.1 to Q.25………………. https://youtu.be/ET4DVxnZjZI
Q.26. As soon as there was declaration of results of elections in country X the stock markets of
the country started showing signs of decline in their indicators. However, it can be considered a
small duration impact as when things will go normal and the new government will take power
the stock markets will ultimately be driven by forces of market.
Which dimensions of business are indicated above?
1. Technological
2. Social
40
3. Political
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4. Economic
40
a) Only 2.
b) Only 3.
c) 3,4.
d) 1,3,4.
Q.27. Which of the following describe today's Business Environment?

1. Stagnant technology
2. Increasing brand loyalty
3. Too much fragmentation of market
4. Stable market conditions
5. More demanding customers
a) 1,2,3.
b) 2,3.
c) 1,2,4.
d) 3,5.
Q.28. An IT company has decided to hire employees at 50% higher salaries. This step has been
taken by the company in order to meet the demand of IT services which is increasing at a
stupendous rate. An increasing number of companies and people are relying more on IT enabled
services and this has resulted into an unprecedented increase in revenue of the company during
last two quarters.
Which dimension of business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Economic
Q.29- 30. A Medicine making company recently launched a medicine which will help cure heart
related diseases in a very short span of time. The outcome is the result of a long research done by
the company. Vijay Pratap, who is the CEO of the company told in an interview that it is because
of a molecule which is isolated from vegetables which is the main reason behind the success of
this drug. The company has also got the molecule and the drug patented. It has always been a
pioneer in introducing new drugs in the market because it knows that diseases of future are
unpredictable and can have a lasting impact on humanity.
Q.29. Which dimension of business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Economic
Q.30. Which feature of business environment is highlighted above?

b) Interrelatedness
c) Dynamic nature
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d) Uncertainty
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41
Q.31. In country X the Government has decided to give interest free loans to parents of girl child.
This step has been taken to improve the level of education in girls by giving them better
education.
Which dimension of business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Economic
Q.32. A vaccine manufacturing company has decided to increase the production of vaccines to
150 million. This will be done due to expected increase in the demand of vaccines in the coming
future. The company is also ready to increase its production, keeping in mind the increasing
demand of vaccines abroad, in case the government allows for the export of vaccines.
Which dimensions of business environment are highlighted here?
1. Legal
2. Political
3. Economic
4. Social
5. Technological
a) 1,3.
b) 2,4.
c) 3,4.
d) 1,3,4,5.
Q.33- 34. Ravi, who is the owner of a stationery items manufacturing company is facing stiff
competition from a foreign company in the market. He has decided to scale up his production at
a lower cost and go for aggressive marketing in order to boost the sales. Recently in an interview
to a newspaper, he told that he is also considering introduction of a customer friendly application
through which the buyers of stationery items can get access to different educational benefits and
also share their experiences. He thinks that sphere of education with which stationery items is
connected has to do a lot with how our society develops.
Q.33. Which dimension of business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Both a and b
Q.34. Which importance of business environment is indicated above?

d) It helps in coping with rapid changes.
Q.35. Assertion: General stability and peace is included in political environment in a country
42
Reason: The head of the business firms decide how much peaceful a country will be.
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42
Assertion.
Q.36. Assertion: Bureaucratic red tape shows a government's positive attitude towards business.
Reason: The attitude of politicians is considered to be a part of political environment
Assertion.
Q.37. Which of the following is not a part of social environment?

1. Expectations from the workforce
2. Concern with Quality life
3. Population shifts
4. Planned outlay in public sector
5. Agricultural trends
a) 1,2,3.
b) 4,5.
c) Only 4.
d) Only 3.
Q.38. The central bank of country X has decided to control the flow of money in the economy.
The bank has decided to work on a few tools like bank rate and cash reserve ratio. The banking
industry of the country is going through a lot of change in the composition of its employees in
terms of gender ratio. The number of female employees has increased to three times in last 5
years. The top management of the bank in a recent meeting laid stress on understanding the
business environment in order to decide the future course of action.
Which dimensions of business environment are indicated here?
1. Social
2. Technological
3. Political
4. Economic
a) 1,2.
b) 3,4.
c) 1,4.
d) Only 4.

b) It helps in planning and policy formulation
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Q.40. Which of the following doesn't belong to Economic environment?

1. Public debt
2. Expansion of communication facilities
3. Consumption habits
4. Shift towards formal wear
5. Role of private and public sector
a) 3,4.
b) 1,2,5.
c) 2,3.
d) 2,3,4.
Q.41. 'Retailers, these days, establish direct contact with the suppliers to get the required stocks''
The above statement reflects which dimension of business environment?
a) Social
b) Technological
c) Political
d) Economic
Q.42. Analyse the following statement-

'Few foreign companies were discouraged from investing in a country'.
Which dimension of business is highlighted here?
a) Social
b) Legal
c) Political
d) Economic
Q.43. Which of the following constitute political environment?

1. Extent and nature of Government intervention in business
2. Relationship with foreign countries
3. Advanced ticket booking
4. Increase in demand in cosmetic industry
5. Regulation of working of banks
a) Only 2
b) 3,4.
c) 3,4,5.
d) 1,2.
Solutions:
Q.26 to Q.43……………... https://youtu.be/YPMmZB-ricc
Q.44. Assertion: Japan is a country of flexible manufacturing systems.

Reason: Suppliers have direct links with retailers who replenish stocks whenever needed.
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Assertion.
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44
Q.45. The significance of political conditions in business success lies in the...................... of

business activities under ........................ political conditions.
a) continuation, unstable
b) predictability, unstable
c) predictability, stable
d) stopping, stable
Q.46. Chandrashekhar, who is the CEO of a company has decided to think afresh about how to
deal with the current situation where 3 new players have entered the market leading to creation
of more competition and fragmentation of the market.
Which importance of business environment is indicated here?
b) It helps the firm in improving performance
c) It helps in coping with rapid changes
d) It helps in planning and policy formulation
Q.47-Q.48. The top management of an automobile company is concerned about the future
development of the company. It is spending a lot in order to understand the business environment
and seems that proper monitoring will result into good prospects in future. Recently due to high
inflation rates the company's cost of business has increased due to increase in cost of raw
materials.
Q.47. Which dimension of business is highlighted here?
a) Social
b) Technological
c) Political
d) Economic

a) It helps in improving performance
Q.49-50. Anshu has started a 'nuts and bolts' manufacturing company. In the coming days he will
start getting orders from various companies. In order to start the business he applied for loan,
purchased machinery and assembled other requirements like labour and machinery. By the end
of the year he is expected to earn a successful return on investment. Due to the increase in
investment in manufacturing by various big players the requirements of nuts and bolts has
increased to a high degree. This is definitely going to help him in his business.
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d) It helps in tapping useful resources
45
Q.50. Which dimension of business is highlighted here?

a) Social
b) Technological
c) Political
d) Economic
Q.51-54. Mr. A is the owner of a series of petrol pumps in a country. A new type of fuel has
been introduced in the market on the orders of the Government in order to reduce the pollution in
the environment. Mr. A's petrol pump company is quick enough to react to this situation and has
optimised its petrol pumps according to the requirements of the new fuel by introduction of a
new technique. They are the first to do so while their competitors are still clueless. However, Mr.
A is ready to face changing circumstances in the coming years by adopting according to the
customer preferences and changing competition.
Q.51. Which dimension of business environment is indicated in the above case when
optimisation of petrol pump is mentioned?
a) Social
b) Technological
c) Political
d) Economic
Q.52. Apart from the one indicated in the previous question which one more dimension of
business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Legal

d) It helps the firm to identify opportunities and take the first mover advantage
Q.54. Which feature of business environment is highlighted above?

b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.55-58. Shamit is a very progressive businessman. He has always wanted to bring green
sources of energy to minimise pollution because of his concern towards maintaining clean
environment. Recently, he has installed a solar cell manufacturing plant. This plant is expected to
manufacture solar cells on such a large scale that it might pose challenge to other energy related
46
companies. In order to face this challenge other companies have also decided to undertake some
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measures like aggressive marketing and cost cutting. According to other companies, it can't be
46
ruled out what lies in future and unpredictability of the business environment can't be sidelined.
In an article published in a newspaper which is written by Shamit, it is clearly mentioned by him
that all the aspects of business should be considered by company while dealing in the market.
Q.55. Which dimension of business environment is indicated in the above case?
a) Social
b) Technological
c) Political
d) Economic
Q.56. Which feature of business environment is highlighted in the article written by Shamit?
b) Interrelatedness
c) Dynamic nature
d) Uncertainty
Q.57. Apart from the one indicated in the previous question which one more feature of business
environment is highlighted in the above case?
b) Interrelatedness
c) Dynamic nature
d) Uncertainty

a) It helps in tapping useful resources
Q.59-62. Mr. A passed out of Engineering College with very good grades. He wanted to start his
own business firm. However, the attitude of the Government in his country was not very
supportive towards young entrepreneurs. Due to the support of his father, he was ultimately able
to set up his own firm. His father told him a very interesting thing about market that it was really
difficult to understand the whole market scenario unless it was broken down into small
components. 'A' turned out to be a very intelligent businessman as he took proper care of his
shareholders, suppliers and customers because they affected his business directly, on the other
hand he was also very sensitive towards political, economic and social forces. He constantly
monitored his business environment and adopted suitable business practices to maximise
the productivity of his business.
Q.59. Which dimension of business environment is indicated in the above case?
a) Social
b) Technological
c) Political
d) Economic
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Q.60. Which feature of business environment is highlighted in the advice given by A's father?
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47
b) Interrelatedness
c) Dynamic nature
d) Complexity
Q.61. Apart from the one indicated in the previous question which one more feature of business
environment is highlighted in the above case?
a) Specific and General forces
b) Interrelatedness
c) Dynamic nature
d) Uncertainty

a) It assists in planning and policy formulation
Q.63-66. ABCDE Public Ltd. is a well known company in the field of telecommunications. The
company has decided to provide service to its clients at a very low rate which is unprecedented
in the history of telecom industry. The company has a few ambitious projects in 15 different
countries of the world which are relatively poor in comparison to most of the countries and it is
expected that the policy of providing services at very low rate will bring great profits to ABCD
limited. There is a country named X in which there is almost no telecommunication
infrastructure. ABCDE is going to be the first to start and run its operations there. The support of
the Government is expected to be very high as they are already providing various concessions to
the company welcoming it to run its operations there.
Q.63. Which dimension of business environment is indicated in the above case when the low rate
of its services is mentioned?
a) Social
b) Technological
c) Political
d) Economic
Q.64. Apart from the one indicated in the previous question which one more dimension of
business is highlighted in the above case?
a) Social
b) Technological
c) Political
d) Legal
Q.65.Which feature of business environment is highlighted in the above case?

b) Interrelatedness
c) Relativity
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d) Complexity
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48

a) It assists in planning and policy formulation
Solutions:
Q.44 to Q.66……………... https://youtu.be/kywS2Aow-us
For solutions to Business Environment MCQs click on the following YouTube links:
Q.1 to Q.25………………. https://youtu.be/ET4DVxnZjZI
Q.26 to Q.43……………... https://youtu.be/YPMmZB-ricc
Q.44 to Q.66……………... https://youtu.be/kywS2Aow-us
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Chapter 4
Planning
Q.1. Which of the following steps of planning process is the real point of decision making?
a) Developing premises
b) Identifying alternative courses of action
c) Selecting an alternative
d) Implementing the plan
Q. 2. Which step of the planning process would be involved in a factory when 'organising for
more labour and purchase of machinery' is effected?
Q. 3. Neeraj is the owner of a cloth shop in the heart of the city. He had planned to open two
more branches before the spread of a disease in his state. This spread has brought down the
demand of clothes. All plans of Neeraj regarding opening of branches and sales targets have to
be revised accordingly. These developments have made him really sad.
Which limitation of planning is highlighted above?
a) Planning reduces creativity
b) Planning does not guarantee success
c) Planning may not work in a dynamic environment
d) Planning leads to rigidity
Q.4. Rajat is trying to run his school on the lines of proper planning. He is using his well
established plans to coordinate the activities and efforts of different divisions, departments and
teachers.
Which will be the outcome of Rajat's planning here?
a) It will reduce overlapping and wasteful activities
b) It will provide directions
c) It will help in decision making
d) It will help in setting standards for controlling
Q. 5. In which step of the planning process managerial functions other than 'planning' come into
picture?
Q. 6. Mr. A is the sales department head in Futura Express, an iron press manufacturing
company. He has done a lot of hard work in preparing sales forecasting on the basis of which the
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top management will be preparing its annual plan for production and sales.
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Which feature of planning is indicated here?
50
a) Planning involves decision making

b) Planning is a primary function of management
c) Planning focuses on achieving objectives
d) Planning is futuristic
Q. 7. Mr. B was a renowned manufacturer of his area. His factory used to earn crores in revenue
every year. Last year he retired from his business and passed it on to his son. When his son took
over the business from him he gave him one advice, "Dear son, it is not always true that just
because a plan has worked before it will work again."
Which limitation of planning was indicated in his advice?
a) Planning may not work in a dynamic environment
c) Planning is a time consuming process
d) Both a and b
Q. 8. Planning does not involve

1. sound judgement
2. guess work
3. imagination
4. wishful thinking
5. forecasting
a) 1,3,5
b) 1,2.
c) 2,4
d) 1,3.

1. Pros and cons of each alternative are weighed during the 'Implementation of plan' step of the
planning process.
2. Once assumptions are made, Objectives are set.
3. Follow up action involves 'doing what is required'
a) 1,2,3.
b) 2,3.
c) Only 3.
d) Only 2.
Q. 10. Assertion: Only good planning is a solution to all problems.

Reason: Planning provides the basis for control.
Assertion.
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Q. 11. Assertion: Planning is an intellectual activity of thinking rather than doing

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Reason: Planning determines the action to be taken
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Assertion.
Q. 12. Arun is managing a big shop which caters to the requirements of his customers. He has a
very good reputation of providing products required by nearby residents. Due to his good
planning his success has been consistent in generating good revenue. He makes and implements
plans for specific periods and then again does planning for another coming period.
Which feature of planning is indicated above?
a) Planning is continuous
d) Planning is futuristic
Q. 13. Assertion: Even the best plans made by most successful people do not guarantee success
Reason: Future is uncertain
Assertion.
Q. 14. Which of the following information regarding 'premises' is not true?

1. They are assumptions
2. They must be the same for all
3. There must be total agreement on them
4. Managers can skip making them for future planning
a) Only 4
b) 2,4.
c) 2,3,4.
d) Only 3.
Q. 15. According to the step of 'Follow up action'- To see whether the planned activities are
performed according to .................... is also a part of the ................... process.
a) framework, planning
b) theory, controlling
c) objectives, controlling
d) schedule, planning
Q. 16. Which of the following is correctly matched?

1. Setting Objectives- 1st step
2. Implementation of plan- 4th step
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3. Follow up action- 8th step

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4. Developing premises- 2nd step
52
a) 1,3.
b) 2,4.
c) 1,4.
d) 1,3,4.
Q. 17. The top level management of XYZ limited has decided the future course of action. The
rest of the managers may not be in a position to change it. So, we can conclude:
a) Planning reduces creativity
b) Planning leads to rigidity
c) Planning is a time consuming process
d) Planning may not work in dynamic environment
Q. 18. The ................. incurred sometimes may not justify the .................. derived from the plans.
a) costs, losses
b) losses, costs
c) costs, learnings
d) costs, benefits
Q. 19. Assertion: The first thing that an organisation does is to set its objectives
Reason: Planning is the primary function of management
Assertion.
Q. 20. What is meant by 'Primacy' of planning?

a) Planning precedes other functions
b) Planning is an exclusive function of the top management
c) Planning is purposeful
d) Planning involves looking ahead
Q. 21. Mark the correct statement:

1. Assumptions are the base material on which plans are made
2. Accurate forecasts can be avoided while setting premises
3. Forecasting is a technique of gathering information
4. Forecasts can be made about 'Policy Changes' in a country
a) 1,3.
b) 2,4
c) 1,4
d) 1,3,4.
Q.22. Planning involves huge costs because

1. Checking accuracy of facts may involve lot of time
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2. Detailed plans require scientific calculations

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3. Professional experts are involved
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a) 1,2.
b) 1,3.
c) 1,2,3.
d) 2,3.
Q. 23. Which of the following is false regarding Planning?

1. Planning has limitations so it can be considered a useless exercise
2. It becomes meaningful when it is not translated into action.
3. In order to always succeed managers should rely upon previously tried and tested successful
plans.
4. Planning is a tool to be used with caution.
a) 1,2.
b) Only 3
c) 1,2,3.
d) Only 4.
Solutions:
Q.1 to Q.23………………. https://youtu.be/JB8HC0MewK8
Q. 24. ABCD Ltd. is well known for proper planning. The efforts of the top management start
right from the stage of setting up of objectives. Each individual and department clearly comes to
know about their targets.
Which importance of planning is indicated here?
a) Planning reduces overlapping and wasteful activities
b) Planning provides directions
c) Planning helps in decision making
d) Planning sets standards for controlling
Q. 25. Raghav is a departmental head in a respectable organisation. He leads the manufacturing

department. Every month a manufacturing plan is drawn in the organisation. These days he is
busy in monitoring the monthly plan in order to ensure that this month’s objective is achieved.
Which step of the planning process is highlighted in the above case?
a) Follow up action
Q. 26. Assertion: Planning is a time consuming process

Reason: Plans may take much time to be drawn so that there might not be much time left for
their implementation.
Assertion.
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54
Q. 27. The CEO of a large sized multinational company was once giving a lecture. In his lecture
he told the top management that they should see the end result in a clear manner as then it would
become easier for them to work towards the goals.
Which step of planning process do you find indicated in his lecture?
c) Setting objectives
Q. 28. Due to proper planning departments and individuals are able to work in
a) cooperation
b) harmony
c) coordination
d) steps
Q. 29. ABCD Ltd is a company having chain of hotels. Every year the company has to make a
very detailed plan for its number of hotels which are present in different major cities of the
country. When a plan is decided and the future course of action is finalized managers really find
it difficult to change it. Sometimes circumstances change but changing the plan is out of
question.
Which limitation of planning is indicated in the above case?
a) Planning leads to rigidity
b) Planning may not work in a dynamic environment
c) Planning reduces creativity
d) Both a and b
Q. 30. Sanjay is running a shoe making company. During last five years the company has shown
remarkable growth in the national capital region. These days the top management of the
company is busy in studying the demand of the shoes, prices of machinery and tax rates.
Which step of the planning process is followed by the top management here?
Q.31. Assertion: Planning leads to huge cost

Reason: Top management sets the plans but the middle level management and other decision
makers are not allowed to deviate from these plans
Assertion.
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Q.32. Assertion: Planning is a prerequisite for controlling

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55
Reason: If there is any gap between actual performance and set standards, it can be corrected by
comparison and elimination of the existing deviation.
Assertion.
Q.33. Assertion: Planning reduces the risks of uncertainties

Reason: Without planning employees would be working in unconcerned directions.
Assertion.
Q.34. Arun is a middle level manager in a TV company. He is the departmental head and tries to
make departmental plans for the coming three months. After looking into the future, he tries to
draw alternative courses of action, evaluates them properly before choosing the best one.
Which importance of planning is highlighted in Arun's case?
a) Planning provides directions
b) Planning reduces overlapping and wasteful activities
c) Planning facilitates decision making
d) Planning establishing standards for controlling.
Q.35. Assertion: Planning is futuristic

Reason: It is the base of all other functions of management
Assertion.
Q.36. Which of the following statements are true?

1. Planning is not an exclusive function of the top management
2. Operational planning is done by lower level managers
3. Scope of planning is same at different levels of management
a) 1,2.
b) 2,3.
c) Only 3.
d) Only 2.
Q.37. Changes can't be eliminated but they can be...................... and ................................. to them
can be developed.
56
a) enhanced, managerial actions

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b) anticipated, managerial responses
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c) anticipated, managerial compensations

d) predicted, managerial competitiveness
Q.38. Assertion: Planning is the second most challenging activity for the management
Reason: Planning guides all future actions leading to the growth of the organisation
Assertion.
Q.39. Continuity of planning is related with ...........................

a) Objectives of organisation
b) Controlling tools
c) Planning cycle
d) Day to day operations
Q.40. Assertion: Cash budgets in an organisation also need to be modified.

Reason: They are based on sales figures
Assertion.
Q.41 to 45..
ABCDEF Ltd. is a renowned IT company. It was started 40 years back. Today it has more than
124 offices in 34 countries. Companies in various industries like Entertainment, Banking,
Telecommunication and Retail are its clients. Due to heavy workload the company clearly sets
targets on monthly, quarterly and annual basis. For last three years the Return on Capital
Employed of the company has improved. However, the same can't be predicted for the coming
years because everything can't be foreseen and there may be obstacles to effective planning.
Recently, a legal suit was filed against the organisation against misuse of confidential
information by one of its competitors. However, the organisation dealt with it in a mature
manner. Since there is clarity in thought and action, work is carried out smoothly without getting
involved into useless activities. Mr. A, who is the CEO of the company, sets specific goals along
with the activities to be undertaken to achieve the goals.
Q.41. Which importance of planning is indicated above?
Q.42. Which limitation of planning is indicated above?

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a) Planning leads to rigidity

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b) Planning may not work in a dynamic environment
57

Q.43. Which step of the planning process is highlighted in the above case?
a) Setting objectives
b) Developing premises
c) Implementation of plan
d) Evaluating alternatives
Q.44. Assertion: Planning is a futile exercise

Reason: Planning is concerned with both ends and means
Assertion.
Q.45. Which feature of planning is indicated above?

a) Planning involves decision making
d) Planning is futuristic.
Solutions:
Q.24 to Q.45……………... https://youtu.be/-GT-b6BeuiE
Q.46-50...
SoyoGoyo Ltd. is a giant in B2B commerce. It accounts for more than 40 percent of retail sale in
its industry. Recently, it took orders of more than ₹4000 crores in a single day. The basic logic
behind its success is the stepping up of the manpower and number of efforts required to meet
orders as per the decided plan. Manufacturers from all over the world get their products listed on
their platform. The importers from other countries then are able to buy these products from
SoyoGoyo. Recently, they got a survey done in the market and hired an expensive marketing
research agency to know about the expected trend. The company is unsure about the impact of so
much spending. In a newspaper report, it was mentioned that the company is doing all efforts to
set up a new plan at the end of the year which will be drawn on the basis of new requirements
and future conditions.
Q.46. Which step of the planning process is indicated in case of SoyoGoyo Ltd.?
d) Evaluating alternatives

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a) Planning is a time consuming process

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b) Planning involves huge cost
58

d) Planning may not work in a dynamic environment
Q.48. Which feature of planning is indicated in the above case?

a) Planning is futuristic
b) Planning is continuous
c) Planning is a mental exercise
d) Planning involves decision making
Q.49. Which of the following should be avoided by SoyoGoyo to avoid failure of its plans?
1. False sense of security
2. More than required reliance on previous plans
3. Continuous research of the market
4. Intelligent imagination
a) 3,4.
b) 1,2.
c) All of the above
d) 2,3.
Q.50. ………………. should be clearly stated for all departments, units and employees of large
sized companies like SoyoGoyo.
a) Rules
b) Technology
c) Business dimensions
d) Objectives
Q.51-54. Mr. A is a very good planner. He imagines and forecasts business scenarios by properly
and intelligently understanding them. This is how he has built various companies in 4 different
industries. However, many a time it has also happened that his plans which were very good could
not be translated into action and therefore became meaningless. He believes in implementing the
activities as per schedule and monitors if the objectives are achieved or not in order to improve
his planning. Due to his habit to seek perfection he always tries to accomplish predetermined
goals by narrowing down all the deviations which emerge during the actual implementation.
b) Planning is continuous
d) Planning is pervasive

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Q.53. Which step of the planning process is indicated in the above case?
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d) Follow up action

Q.55-58. An automobile company these days is organising for more labour and machinery to
achieve the set goal of manufacturing increased number of cars. Recently, there was a continuous
meeting for about 12 hours among the top level managers regarding how to solve the current
problems of the company. However, few managers are worried that if such long meetings take
place frequently, it might mean availability of less time for implementation of the future projects.
The top managers in order to achieve their goals have decided to choose the best alternative out
of the existing ones. As per the progressive culture of the organisation there has been
involvement of departments like Research and Development in order to bring new ideas so that
more growth and prosperity for the company can be achieved.
b) Planning involves decision making

b) Evaluating alternative courses of action
d) Follow up action

a) Planning promotes innovative ideas
d) Planning establishing standards for controlling
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Q.59-62. ABCDE Bank has decided to bring a brainstorming team for effective planning at all
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levels of management and in all departments of the organisation. The need for this team has
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come up due to more than 2000 complaints made by the bank employees in over 2.5 thousand
branches. They have complained about an existent culture in bank where they are not allowed to
deviate from plans set by the top management and therefore are restricted from acting on their
own in certain urgent situations. The CEO of the bank in an interview has told that though the
bank is going through a phase of struggle yet the top management has always focused on
important projects where they try to figure out more alternatives and then thoroughly discuss
them among the core members of the team. According to him, the plans are drawn in a manner
that the confusions and misunderstandings are totally avoided and proper coordination of the
activities and efforts of different divisions is maintained.
a) Planning is primary function of management

d) Planning involves huge cost
c) Identifying alternative courses of action
d) Follow up action

Q.63-66. XYZ Hospitals is a renowned health service provider in the country. The top level
management of the company looks ahead and anticipates coming changes which helps them to
deal with uncertain developments. The management has decided to open 5 new hospitals in the
Northern part of the country. However, to make this plan successful, they will have to do proper
planning because the other functions of management will work within the framework of the
plans drawn. The CEO of XYZ Hospitals told in an interview, that each and every branch of the
hospital will have to constantly adapt itself to changes according to the changing social,
economic and political conditions. It is known through a famous newspaper that they have hired
a team of three world famous marketing researches who will be drawing forecasts for future and
will also be assessing the previous plans taken up by the organisation.
Q.63.Which feature of planning is indicated in the above case?
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c) Planning is futuristic

a) Planning does not guarantee success

b) Planning reduces overlapping and wasteful
c) Planning reduces the risks of uncertainty
Q.67-70. Savita is the CEO of an IT company. She has given clear instructions to the top as well
as middle level managers. All of the employees and managers are aware of what the organisation
has to do and what they individually have to achieve. The IT company has been set up to provide
back end support to other companies. Specific goals have been clearly set out and clarity has
been provided about the activities needed to be undertaken to achieve these goals. However, it
has been noticed that some of the departmental heads have complained about their inability to
change the plans as a predefined plan is being followed. In a recent meeting of the top level
managers, it is being decided that for the coming year the company will try to become the market
leader in its segment.

a) Planning does not guarantee success
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a) Planning facilitates decision making
b) Planning reduces overlapping and wasteful
c) Planning reduces the risks of uncertainty
d) Planning provides directions
Solutions:
Q.46 to Q.70……………... https://youtu.be/3aDiXMZRAuA
For solutions to Planning MCQs click on the following YouTube links:
Q.1 to Q.23………………. https://youtu.be/JB8HC0MewK8
Q.24 to Q.45……………... https://youtu.be/-GT-b6BeuiE
Q.46 to Q.70……………... https://youtu.be/3aDiXMZRAuA
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Chapter 5
Organising
Q. 1. Ravikant is the CEO of an organisation. Recently he opted decentralisation. After this

decision, the information won't get distorted much. Earlier the organisation was unable to adapt
to dynamic operating systems as in the centralised set up every decision was taken by the top
management.
Which importance of decentralisation will be result as per the indications given above?
a) Facilitation of growth
b) Quick decision making
c) Relief to the top management
Q. 2. Decentralisation awards greater ................ to the lower levels of management in an

organisation.
a) understanding
b) growth
c) autonomy
d) accountability
Q. 3. Decentralisation ...................... the amount of direct supervision exercised by a superior

over the activities of a subordinate
a) reduces
b) increases
c) doesn't differentiate
d) Both b and c
Q. 4. XYZ is a well known textile brand. Though the organisation is producing great results yet
the top management has concerns for coming future. In a top level meeting, it has been decided
to evaluate performance of various departments like marketing, finance, operations and
manufacturing. It has been decided that the individual performance of these departments will be
held accountable.
Which importance of decentralisation is highlighted above?
a) Better control
c) Develops managerial talent for future
d) Relief to the top management
Q. 5. Decentralisation offers an organisation a chance to create a reservoir of ...........................

who can fill ............................. in the coming future.
a) Dependent manpower, External positions
b) Challenging positions, Qualified manpower
c) Qualified manpower, Challenging positions
d) Engineers, Vacant positions
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Q. 6. Assertion: Decentralisation describes the manner in which decision making responsibilities

are divided among hierarchical levels.
Reason: Decentralisation is actually the delegation of authority through only limited levels of an
organisation.
Assertion.
Q. 7. Assertion: Decentralisation helps in increasing confidence among employees.

Reason: When employees are given freedom to take their own decisions they learn to rely on
their own judgement.
Assertion.
Q. 8. Suresh has opened a large sized gymnasium in the centre of the city. He has recently hired
20 employees who are guided by 5 managers. The employees are delegated important tasks
related to the development of the gymnasium and daily duties.
Which of the following statements are true in the light of the case study given above?
1. Soon, there will be significant development of employees.
2. The employees belonging to gymnasium can be used to take up leading positions in new
ventures.
3. It will not be possible for these employees to replicate their work ethos in new situations.
a) 1,2.
b) 2,3.
c) 1,3.
d) Only 3.
Q. 9. Which of the following is not an importance of delegation?

a) Effective management
b) Employee development
c) Motivation of employees
d) Better control
Q. 10. What decides 'who has to report to whom' in an organisation?

1. Flow of authority
2. Nature of responsibility
3. Declaration of accountability
4. Degree of authority
a) 1,2.
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b) 2,3.
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c) 1,4.
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d) 3,4.
Q. 11. Rajiv has hired a secretary in his office so that he is able to function more efficiently and
focus on important matters. He has a team of around 150 employees and workers. All of these
people are provided chance to use their skills and gain experience as they complete their
delegated tasks on daily basis.
Which importance of delegation is not highlighted in the above case?
1. Effective management
2. Employee development
3. Motivation of employees
4. Facilitation of growth
a) 1,2
b) 2,3
c) 3,4
d) 1,4
Q. 12. The power of each job position in an organisation is decided by:

a) Better coordination
b) Facilitation of growth
c) Extent of delegated authority
d) Motivation of employees
Q. 13. Assertion: Delegation of authority is the basis of management hierarchy in an

organisation.
Reason: Superior subordinate relationships are formed by delegation and these relationships
further go on to form hierarchy of management.
Assertion.
Q. 14. Assertion: Power and duties related to various job positions are defined with the help of
delegation
Reason: Delegation helps in providing trained and experienced employees in launching new
projects
Assertion.
Q. 15. Which of the following statement is false?

1. If the authority granted is more than responsibility, it may lead to misuse of authority
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2. If the responsibility expected from an employee is more than the authority granted, the person
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might become ineffective
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3. Authority granted must be commensurate with the assigned responsibility

4. Responsibility arises from superior- subordinate relationship and a subordinate is obligated to
perform the duty assigned to him by superior
a) 1,3,4.
b) 2,3,4.
c) Only 4.
Q. 16. Assertion: Authority doesn't arise from established scalar chain

Reason: Scalar chain links various job positions and levels of an organisation
Assertion.
Q. 17. Which of the following statements regarding delegation are false?

a) It refers to downward transfer of authority
b) It is a pre-requisite to the efficient working of an organisation
c) It is able to satisfy needs for recognition of an employee
d) Delegation means abdication
Q. 18. Who said- 'Delegation is the entrustment of responsibility and authority to another and the
creation of accountability for performance'?
a) Louis Phillip
b) Leos Franco
c) Louis Allen
d) Lee Darwin
Q. 19. Which of the following is true?

a) It is difficult to fix responsibility in divisional structure
b) It is easy to coordinate in a functional structure when there are multiple product lines
c) Divisional structure is supported by functions
d) Divisional structure reduces cost
Q. 20. Development of varied skills in a divisional head prepares him for:

a) Performance measurement
b) Higher positions
c) Taking care of organisational interests
Q. 21. Which of the following is not an advantage of functional structure?

a) Occupational specialisation
b) Makes training of employees easier
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c) Reduces cost
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d) Prepares employees for higher positions
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Q. 22. Why training is easier in a functional structure?

a) It deals with limited set of skills
b) It prepares special budget for training
c) It asks for special training modules
Q. 23. Assertion: There is a scope for faster decision making in divisional structure
Reason: Each division in a divisional structure functions as an autonomous unit
Assertion.
Q. 24. Assertion: Divisional heads are accountable for profits

Reason: It is difficult to calculate revenues and costs related to different departments in a
divisional structure
Assertion.
Q. 25. Mr. A is working in an organisation where the employees are very responsible. The
departments are formed in such a fashion that it is easier for the top management to fix
responsibility on them for their performance.
Which of the following statement is not true regarding the organisation structure indicated in the
above case?
a) It is based on product specialisation
b) It is costly
c) Coordination is easy for multiproduct company
d) Managerial development is difficult
Solutions:
Q.1 to Q.25………………. https://youtu.be/csL-SxoS-mg
Q. 26. Divisional structure promotes................... and

.......................
a) Cost, Training
b) Initiative, Cost
c) Initiative, Flexibility
d) Flexibility, Specialisation
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Q. 27. Assertion: Organisation structure of an organisation should be subjected to periodic

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review
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Reason: Business operates in a dynamic environment

Assertion.
Q. 28. Assertion: Conflicts never arise among different divisions in a divisional structure.
Reason: A particular division in a divisional structure may try to maximise its profits at the cost
of other divisions.
Assertion.
Q. 29. An organisation structure ...............should contribute towards the achievement of the

objectives of the enterprise.
a) Most of the times
b) At all times
c) At the required time
d) Both a and c

a) Every function gets due attention in a functional structure
b) There is absence of clear separation of responsibility in a functional structure
c) Economies of scale is absent in functional structure
d) Divisional structure helps in proper coordination when it comes to multiple products
Q. 31. Sanjay is the head of marketing department. He has 12 years experience of marketing and
has been very successful in his career. However, these days he is having coordination issues with
the Finance head. One day he decides to solve this coordination issue.
Which of the following advice would you give to both of them in order to resolve this issue?
a) Go for more specialisation
b) Exchange information properly
c) Be more efficient
d) Increase departmental profits
Q. 32. Functional structure is an organisational ...............which groups ................ jobs together.

a) system, specific
b) specialisation, complex
c) design, similar
d) structure, simple
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Q. 33. An organisation structure provides the ................ which enables enterprise to function as
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an .................... unit.
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a) policy, effective
b) procedure, efficient
c) framework, integrated
d) framework, operational
Q. 34. An Organisation structure can be defined as the framework within which..................

and................tasks are performed.
a) Managerial, Non- organisational
b) Profitable, Cultural
c) Managerial, Operational
d) Operational, Effective
Q. 35. Assertion: Functional heads do not get training for top management positions
Reason: They are able to gain experiences related with diverse fields
Assertion.
Q. 36. Assertion: In divisional structure manpower is grouped on the basis of different products
manufactured
Reason: Each department in functional structure is self-contained
Assertion.
Q. 37. Which of the following is not the disadvantage of functional structure?

a) It places less emphasis on overall enterprise objective than the objectives of individual
functional departments
b) It may lead to problems in coordination
c) It may result into higher costs
d) It may lead to inflexibility
Q. 38. Assertion: Functional empires may result in functional structure

Reason: Importance of a particular function may be over emphasised in a functional structure
Assertion.
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Q. 39. Which of the following statements is true?

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1. Divisional structure helps an organisation cope with emerging complexity.
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2. Only a few large organisations with diversified activities have moved away from functional
structure to divisional structure
3. Functional structure is of simpler and basic nature.
a) 1,2
b) 2,3
c) 1,3
d) Only 2
Q. 40. Interdepartmental conflicts may arise in a functional structure due to ................. of clarity
in ................. of .....................
a) absence, separation, responsibility
b) presence, separation, responsibility
c) absence, lack of separation, authority
Q. 41 to 45
XYZ Ltd. deals in a variety of brands. All of these brands are very famous and belong to
different fields. Its various brands- SunBright is a hotel chain, Kartavya is a hospital chain, DKB
is a perfume, PQP- an icecream, Calibo- an energy drink, SDF- a soap, SKT- a toothpaste, etc.
The organisation is of very large size and products manufactured by the company are used by
people in their daily lives. Demand of the products is so high that even if the cost of production
increases the organisation is able to increase the prices. This helps XYZ in maintaining its profit
margins. The various departments of the organisation are maintained as self- sufficient units.
Thus minimising the confusion.
Q. 41. Which of the following is an advantage of XYZ Ltd.?
a) The departmental heads are ready for top management positions
b) There is no specialisation based on product lines in the organisation
c) The organisation structure is good only for single product line
d) Training of the employees is easy as they have to train in only limited set of skills
Q. 42. It is .................... to fix ........................on department for its performance in XYZ Ltd.
a) easy, responsibility
b) difficult, responsibility
c) easy, charges
d) difficult, charges

1. The span of management of a superior at higher position of XYZ Ltd. is expected to be high.
2. Span of management refers to the number of employees who can be efficiently managed by a
superior.
a) Only 2.
b) 1,2.
c) Only 1.
d) Neither of the two
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Q. 44. The span of management gives ............... to the organisation.
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a) Flexibility
b) Initiative
c) Shape
d) Depth
Q. 45. Which of the following statement is false regarding XYZ Ltd.?

a) It is based on product specialisation
b) The coordination of the functions related to multiple products is easy.
c) A particular manager dealing in a specific product line may become very powerful with
increase in authority.
d) The organisation structure may lead to reduced costs.
Q. 46- 50
Mr. A, who was highly determined, started a coffee chain 30 years back. It was started in a small
city. However, soon the number of branches started increasing. Within a span of next 10 years
the coffee chain had presence in over 20 countries. The CEO was given the top most position and
the vice presidents of various departments like Operations, Sales, Finance, etc. reported to him.
Regional Sales Managers and Plant managers reported to the vice presidents of marketing and
operations respectively. The organisation has done selective dispersal of authority right up to the
level of outlet manager.
Q. 46. Which of the following statements regarding the process adopted by the organisation is
true?
1. It will increase the speed of decision making in the organisation.
2. The top managers will still be very much tensed about the daily operations at all levels
3. An entire team of dependable and talented managers will get created for future.
a) 1,3.
b) Only 1
c) Only 3
d) 1,2,3.
Q. 47. Which advantage of the organisation structure adopted by the firm is not possible?
a) Reduction of costs
b) Occupational specialisation
c) Increases control and coordination
d) Single departmental head having varied skills
Q. 48. Assertion: In the case of above mentioned coffee chain there will be less control over
managers leading to greater freedom of action for them
Reason: It will be an outcome of policy decision of the top management
Assertion.
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Q. 49. The policy decision taken in the case of above mentioned organisation is:
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a) Compulsory
b) Optional
c) Procedural
d) Decisive
Q. 50. Which of the following control systems can be adopted to improve the performance of the
organisation?
a) Balance score card
b) Management Haphazard System
c) Feedback system
d) Both a and c
Solutions:
Q.26 to Q.50……………... https://youtu.be/Wlwmycn_fi4
Q.51-54. ABCDE is a well known real estate company. The CEO of the company has properly
delegated his tasks to his subordinates and this has resulted into increased efficiency and better
focus on important matters. Most of the employees in his organisation are so sincere that they are
ready to perform complex tasks as they know taking these responsibilities will help them
improve their career prospects. These days a culture is being developed in the organisation where
the superiors are focussing on getting an element of delegation from the subordinates which can't
be delegated at all.
Q.51. Which importance of delegation is indicated in the line- 'The CEO of the company has
properly delegated his tasks to his subordinates and this has resulted into increased efficiency
and better focus on important matters'?
d) Facilitation of growth
Q.52. Which importance of delegation is indicated in the line-'....they are ready to perform
complex tasks as they know that taking these responsibilities will help them improve their career
prospects'?
a) Basis of management hierarchy
Q.53. Which element of delegation is indicated in the above case in the line where 'developing
culture' is being discussed'?
a) Authority
b) Responsibility
c) Accountability
d) All of the above
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Q.54. What is the origin of the element of delegation discussed in the previous question?
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a) Authority
b) Responsibility
c) Accountability
d) All of the above
Q.55-58. Ravi is a departmental head in a well known FMCG company. He is obligated to

perform the assigned tasks as the departmental head. In a recent interaction of middle level
managers with top level managers, he suggested that their organisation has ready workforce
available to take leading positions in new business ventures.
Q.55. Which element of delegation is indicated in the above case?
a) Authority
b) Responsibility
c) Accountability
d) All of the above
Q.56. Which importance of delegation is indicated in the above case?

Q.57. Which type of organisation structure would suit the above mentioned organisation?
a) Divisional structure
b) Functional structure
c) Both a and b
Q.58. Which of the following can be the advantages of the organisation structure of ABCDE
company?
1. Initiative and flexibility
2. Occupational specialisation
3. Promotion of control and coordination
4. Better for expansion and growth
a) 1,3.
b) 2,3.
c) 3,4.
d) 1,4.
Q.59-62. A fast food restaurant chain has thousands of branches around the Globe. There around
300 food items which are served on its menu. The organisation has operations in around 150
countries of the world. Recently, the organisation has decided to enter into 4 new countries. The
political stability and economic conditions of the country are appearing to be favourable. The
organisation is also good at adjusting its menu as per the requirements of the traditions and tastes
of the people of different countries and cultures.
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Q.59. Which type of organisation structure would suit the above mentioned organisation?
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a) Divisional structure
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b) Functional structure
c) Both a and b
Q.60. What should be the span of the CEO of this organisation?

a) Narrow
b) Large
c) Tall
d) Flat
Q.61. What could be the advantages of the organisation structure of the organisation mentioned
in the above case?
1. Initiative and flexibility
2. Occupational specialisation
3. Promotion of control and coordination
4. Helps in training of employees
a) 1,2.
b) 1,2,3.
c) 2,3,4.
d) 3,4.
Q.62. What could be the disadvantages of the organisation structure of the organisation
mentioned in the above case?
1. Inflexibility in approach of departmental heads
2. Lack of coordination among departments
3. Conflict of interests among departmental heads
a) 1,2,3.
b) 2,3.
c) 1,2.
d) 1,3.
Q.63-66. XYZ is a large sized organisation. In order to solve the problem of slow movement of
decision from top to lower levels of management, as the message has to traverse many levels, the
organisation has come up with a solution. They have decided to adopt decentralization which is
going to provide freedom to the lower level managers and middle level managers to act and
decide within the limits. According to Mr. Varun Sharma, who is a departmental head, this
extension of autonomy would trigger a sense of competition among the departments and
eventually lead to the expansion of the organisation. The management has also decided to bring a
system of balance score card in order to keep a track on the performance of middle and lower
levels of the management along with the employees.
Q.63. Which importance of decentralisation is indicated in the line- 'In order to solve the
problem of slow movement of decision...........the organisation has come up with a solution.'?
a) Develops initiative among subordinates
b) Develops managerial talent for the future
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c) Quick decision making

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d) Relief to top management
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Q.64. What will be the outcome of this line-'They have decided to adopt decentralization which
is going to provide freedom to the...............within the limits' in the above case?
a) Develops initiative among subordinates
c) Quick decision making
Q.65. Which importance of decentralisation is indicated in the line-'According to Mr. Varun

Sharma, who is a departmental head, this extension of autonomy would trigger a sense of
competition.......expansion of the organisation'?
a) Better control
c) Facilitates growth
Q.66. Which importance of decentralisation is indicated in the line-'The management has also
decided to bring a system of balance score card............... along with the employees'?
a) Better control
c) Facilitates growth
Q.67. ABCD is a large sized organisation which has adopted divisional structure. Organisation
has provided autonomy to the divisional heads but there has been a few issues regarding their
ignorance about the organisational interests.
Which disadvantage of divisional structure is highlighted above?
a) Increase in costs
b) Conflict of interests among divisions
c) Increase in power of divisional heads beyond the required level
Q.68. In .................. structure there is duplication of

................ in various departments which ..............
costs.
a) Functional, resources, increases.
b) Divisional, resources, decreases.
c) Divisional, resources, increases.
d) Functional, time, decreases.
Q.69. Which of the following is not associated with Divisional structure?

1. Varied skills in departmental head
2. Proper basis for performance measurement
3. Fixation of responsibility
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4. Economical
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5. Difficult for expansion and growth
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a) 4,5.
b) 1,2,3.
c) 2,3.
d) 1,5.
Q.70. What is the full form of MIS?

a) Management Integrated System
b) Management Information System
c) Multi Integrated System
d) Management Integrated Support
Q.71-73. XYZ Ltd. had long been struggling with the issue of lack of proper discipline. This had
resulted into the differences among subordinates regarding their job positions and duties. The
CEO of the company, Mr. Rajesh, brought the issue to his notice and decided to take immediate
action. A meeting was conducted in which it was clarified who had to report to whom in the
organisation.
Q.71. Which step of the organising process is indicated here?
a) Identification and division of work
b) Departmentalisation
c) Assignment of duties
d) Establishing reporting relationships
Q.72. What would be the outcome of the step of the organising process identified in the previous
question?
a) Increase in employee turnover ratio
b) Establishment of management hierarchy
c) Maintenance of high turnover
Q.73. Which benefit of organising is indicated above?

a) Adaptation to change
b) Clarity in working relationships
c) Optimum utilisation of resources
d) Effective administration
Q.74-76. Mr. A. is the CEO of a fast food chain of restaurants. He is very much concerned about
assignment of jobs properly so that any type of overlapping of work is avoided. The company
has around 25 branches in the Northern part of the country and on the basis of similarity in
activities; their grouping together has been properly done for better organising. The fulfillment of
orders is taking place on time. The customers have also responded in a positive manner in the
feedback forms.
Q.74. Which step of the organising process is indicated here?
a) Identification and division of work
b) Departmentalisation
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c) Assignment of duties
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d) Establishing reporting relationships
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Q.75. What would be the outcome of the step of the organising process identified in the previous
question?
a) Specialisation
b) Attainment of objectives
c) Increase in loyalty
Q.76. Which benefit of organising is indicated above?

a) Adaptation to change
c) Optimum utilisation of resources
Q.77. Which of the following statements are false?

Organising helps in expansion and growth of an organisation by:
1. preventing it to deviate from existing norms
2. taking up new challenges
a) Only 1.
b) Only 2.
c) 1,2.
d) Neither of the two.
Q.78. Atul runs a shoe shop in the heart of the city. He has started to identify and divide the work
into manageable tasks as per the previously determined plans. In order to increase the sales of his
shoe shop by over 20% this year he has decided to allocate jobs among his workforce so that
their productivity can be increased. He knows this will happen only if the employees are given
specific jobs on regular basis.
Which benefit of organising is indicated in the above case?
a) Expansion and growth
c) Benefits of specialisation
Q.79. Mr. A has decided to alter the organisation structure of his e-commerce company. The
requirement of a vertical organisation structure is not much, so in order to increase the efficiency
of the organisation and cut down the costs he has decided go for a flat structure. All of the above
mentioned steps will help the organisation survive and flourish in a better manner.
Which benefit of organising is indicated in the above case?
a) Development of personnel
c) Benefits of specialisation
d) Adaptation to change
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Q.80. Assertion: A company's competitive position is strengthened due to delegation.

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Reason: Delegation provides employees the opportunity to explore and innovate.
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Assertion.
For solutions to Organising MCQs click on the following YouTube links:
Solutions:
Q.51 to Q.80……………... https://youtu.be/ly-hXla6hLA
Complete solutions of Organising are given on these YouTube links:
Q.1 to Q.25………………. https://youtu.be/csL-SxoS-mg
Q.26 to Q.50……………... https://youtu.be/Wlwmycn_fi4
Q.51 to Q.80……………... https://youtu.be/ly-hXla6hLA
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Marketing
Chapter 11
Q.1. Which of the following is not the importance of packaging?

a) rising standard of health and sanitation
b) emergence of self service outlets
c) product differentiation
d) requirement of describing the products and specifying its contents
Q.2. In a very important development company XYZ is focusing on packaging, as the colour,
size and material of a package makes real difference in the way customers perceive the quality of
the product.
Which importance of packaging is indicated above?
a) Product differentiation
b) Product protection
c) Product identification
d) Innovation opportunity
Q.3. Ravi is out of town on a vacation of 3 days. After travelling for 7-8 hours he reaches a
distant town in a remote area. It is night and he is unable get any food, so he purchases milk as
the last resort. Though he doesn't have access to a refrigerator yet he will be able to store it for 2-
3 days without any problem. This is possible because of latest developments in the field of
packaging.
Which importance of packaging is indicated above?
b) Product protection
c) Product identification
d) Innovation opportunity
Q.4. Packaging has come as a very important tool of marketing. These days, we can see more
and more people rely on packed goods as the chances of ......................... in such goods are
minimised.
a) purity
b) adulteration
c) innovation
d) overcosting
Q.5. Which of the following is a function of packaging?

a) Facilitating use of the product
b) Promotion of the product
c) Identification of the product
d) All of the above
Q.6. Atul works as a manager in an FMCG company. In three years of his experience as a
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successful manager he has noticed that the demand of the products of the company is ...............
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so he comes to conclusion that his company is in a................ position to fix higher prices.
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a) inelastic, weaker
b) inelastic, better
c) elastic, weaker
d) elastic, better
Q.7. For a specific level of activity, total cost of a business firm is equal to the sum total of its
fixed, variable and semi variable costs.
Which of the following can be included in the above referred activity?
a) Volume of sales
b) Quantity produced
c) Both a and b
Q.8. Which of the following is false about price?

1. It is often used as a regulator of the demand of a product
2. Utility and demand of the product is an important factor affecting the price of the product.
3. Product cost decides the maximum level or floor price.
a) Only 2.
b) Only 3.
c) 1,2.
d) 2,3.
Q.9. After the intervention of the Government the price of a particular drug has been reduced
from Rs. 500 to Rs. 200.
Which of the following can't be a possible scenario in the above case?
a) The drug manufacturing company has monopoly in the production of this drug
b) The Government can't declare this drug as an essential commodity.
c) Both a and b
Q.10. Which of the following can't be marketed?

1. Physical products
2. Information
3. Organisations
4. Experience
5. Place
a) All of the above
b) None of the above
c) 1,2,3.
d) Only 4.
Q.11. Shantanu along with his team has organised a music concert. It is being sponsored by a
famous company. Renowned musicians all over the world are participating in this well organised
concert.
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What is being marketed in the above case?

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a) Information
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b) Event
c) Experience
d) Services
Q.12. What is being marketed in following examples?

i) Corona vaccination
ii) Blood Donation
iii) Donation of money for Old people on birthday of a famous social reformer
a) Services
b) Ideas
c) Experience
d) Information
Q.13. Which management philosophy's main focus is on the 'Existing product'?

a) Production concept
b) Product concept
c) Selling concept
d) Marketing concept
Q.14. According to which management philosophy profit maximization takes place through
volume of production?
b) Product concept
c) Selling concept
Q.15. Which of the following management philosophies involve 'Integrated Marketing'?

1. Production concept
2. Product concept
3. Selling concept
4. Marketing concept
5. Societal concept
a) 1,2.
b) 2,3.
c) 3,4.
d) 4,5.
Q.16. Which management philosophy focusses on 'Quantity of Product'?

b) Product concept
c) Selling concept
Q.17. Which of the following management philosophies have 'Factory' as the starting point?
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1. Production concept
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2. Product concept
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3. Selling concept
4. Marketing concept
5. Societal concept
a) 1,2,3.
b) 2,3.
c) 4,5.
Q.18. In which management philosophy profit takes place due to 'Customer Satisfaction'?
b) Product concept
c) Selling concept
Q.19. Which of the following is not a pillar of marketing?

a) Identification of target market
b) Doing all actions for the sake of research only
c) Development of product in order to satisfy the target market
d) Satisfying the needs of target market in a better manner than the competitors.
Q.20. 'Availability and affordability of product' as a means is associated with

b) Product concept
c) Selling concept
Q.21. Which of the following function makes the product attractive to the target customers?
a) Gathering and analysing market information
b) Marketing planning
c) Product designing and development
d) Standardisation and grading
Q. 22. Sajjan has decided to cover all the important aspects of business like planning for
increasing the level of production, promotion of the products, etc. He has also decided to chalk
out a course of action so that all the set objectives can be achieved.
Which function of marketing is indicated above?
Q.23. Which of the following is false about Grading?

1. It is the process of classification of products into different groups.
2. It is unable to realise higher prices for high quality products.
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3. It is for goods which are produced according to predetermined specifications.

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a) 2,3.
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b) Only 1.
c) 1,2.
d) Only 2.
Q.24. Which of the following is true about standardisation?

1 It ensures that goods are as per predetermined standards of quality.
2. It increases the need for inspection, testing and evaluation of the products.
a) Only 1.
b) Only 2.
c) 1,2.
Q.25. Mr. A. has the habit of scanning the strengths and weaknesses of his organisation through
careful study of the market before launching a new product.
Q.26. Company A has launched an interactive website to know about the likes and dislikes of the
potential customers.
Q.27. The top management of a company is involved in thorough discussion regarding the
combination and proportion of advertising, personal selling and publicity to be used in the
coming months. The budget involved is also a subject of discussion.
c) Branding
d) Promotion
Q.28. Mr. A. has launched a television with the brand name 'Shubh Darshan'.
Which of the following purpose will this brand name achieve?
a) Distinguish the product
b) Increase customer loyalty
c) Promotion of sale
d) All of the above
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Q.29. An organisation which is market leader in its segment has decided to focus its attention on
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the 'location of the target market'.
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a) Transportation
c) Branding
Q.30. Mr. A. bought a packet of biscuit on which some information was provided like address of
the manufacturer, net weight and date of packaging. Which function of labelling is indicated
above?
a) Describing the product and specifying its contents
b) Identification of the product
c) Grading of products
d) Helps in promotion of products
Q.31. Mr. B. bought a packet of ready to eat dosa on which some information was printed like
the procedure of making dosa, brand name of the dosa 'Easy Khao Easy Pakao' was also
mentioned.
Which function of labelling is indicated above?
a) Describing the product and specifying its contents
b) Identification of the product
Solutions:
Q.1 to Q.31…………….. https://youtu.be/EI6swYy9o84
Q.32. Which of the following should be considered while fixing the price of a product?
1. Competitor's prices
2. Anticipated reaction of the competitor
3. Quality and features of the competitive products
a) 1,2.
b) 2,3
c) 1,2,3.
Q.33. Which of the following is wrongly matched?

1. Obtaining Market Share Leadership- Greater number of people reached at higher prices
2. Surviving in a Competitive Market- Providing discount on the prices of products to finish
stock
3. Attaining Product Quality Leadership- High cost of Research and Development is left
uncovered to give maximum satisfaction to clients
a) 1,2.
b) 2,3.
c) 1,3.
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d) Only 2.
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Q.34. Ajit who is the CEO of a soap company has decided to take its packaging to a higher level.
After this the price of the soap will be increased from Rs. 300 to Rs. 375. The new packaging
will provide a distinct look to the soap and would increase the satisfaction level of its users.
Which factor affecting price determination is indicated above?
a) Pricing objectives
b) Extent of competition in the market
c) Marketing methods used
d) Product cost
Q.35. Which of the following is an important distinguishing feature of advertising?

a) Paid form
b) Impersonality
c) Identified sponsor
d) All of the above
Q.36. Promotion refers to the use of communication in order to achieve the twin objective of
................... and .....................customers.
a) texting, suggesting.
b) fixing, reinforcing.
c) developing, retaining.
d) informing, persuading.
Q.37. Which of the following is true about advertising?

1. It is perhaps the most commonly used tool of promotion.
2. It is a very expensive mode of communication if large number of people is to be reached.
a) Only 1.
b) Only 2.
c) 1,2.
d) None.
Q.38. Which of the following is not an objective of public relations?

a) Building awareness
b) Winning contracts
c) Stimulating sales force
d) Lowering promotion cost
Q.39. Which of the following is not a function of public relations?

a) Press relations
b) Product documentation
c) Corporate communication
d) Lobbying
Q.40. A world renowned car brand has decided to take back 40,000 cars from the market due to
a problem in engine of a new model. It has been noticed that decision has been taken after the
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occurrence of 34 accidents which led to the fire catching of the cars at several places within a
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span of two months. The car company's image now needs a complete revamp.
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Which concept of marketing should be used by the company to achieve this?

a) Public relations
b) Advertising
c) Personal selling
d) Sales promotion techniques
Q.41. Assertion: The price of a product can settle somewhere between the lower limit and the
upper limit.
Reason: The nature and degree of the competition will decide the point where it exactly settles.
Assertion.
Q.42. Assertion: Customers are sometimes able to pay less for essential commodities
Reason: Government has nothing to do with this decrease in prices.
Assertion.
Q.43. Assertion: The profit maximisation in product philosophy is related with satisfaction of
customer needs on a repeated basis.
Reason: Needs and wants are important features of marketing
Assertion.
Q.44. Assertion: The part of a brand which is given legal protection is known as Trademark.
Reason: The protection of Trademark ensures prevention of use of this part of the brand by other
business firms.
Assertion.
Q.45. Assertion: Labelling provides information required by law

Reason: Labels include complex graphics and are part of the product.
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Assertion.
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Q.46. Assertion: The various marketing methods used by a business firm can increase the price
of a product.
Reason: Increase in the number of sales people employed, quality of packaging and amount of
credit extended to the customer increases the overall expenditure of the firm.
Assertion.
Q.47. Assertion: Selling concept focuses entirely on the existing product

Reason: Marketing philosophy focuses on volume of production
Assertion.
Q.48. Assertion: These days organisations have separate departments to manage public relation
affairs
Reason: In today's world organisations don't utilise the services of any outside public relations
agency
Assertion.
Q.49. Assertion: Describing the product and specifying its contents is a function of labelling
Reason: Labelling helps in protection of the product
Assertion.
Q.50. Assertion: Advertising is a very economical mode of reaching out to the target customers
Reason: Due to Mass reach per unit cost of communication becomes low.
Assertion.
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Q.51. Assertion: In marketing philosophy Integrated marketing is applied

Reason: The marketing philosophy starts from gathering information and continues till providing
good services to customers
Assertion.
Q.52. Assertion: During the time of industrial revolution the Production concept was applicable
Reason: Demand exceeded supply so whatever was produced was sold.
Assertion.
Q.53. Assertion: If the demand of a product is inelastic the firm is in a better condition to
increase prices
Reason: In case of goods with inelastic demand the revenue increases with increase in price of
goods
Assertion.
Q.54. Assertion: Extent of competition is the factor which settles the price of a product between
the lower and upper limit.
Reason: Variable costs vary proportionately with the level of activity.
Assertion.
Q.55. Assertion: Brand enables a firm to charge different prices from competitors.
Reason: People pay extra for brands they like and are habitual of using.
Assertion.
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Q.56-59. Shirin is the CEO of an FMCG company. Recently he has decided to figure out the
culturally famous drink for around 3 crore consumers in the market to satisfy their thirst. The
drink will be made available to people through retail outlets which will be supported by big
wholesalers. Dhanraj, who is the Sales and Distribution head has been told to ensure that the
drink is made available through the well known essence of marketing.
Q.56. Which feature of marketing is indicated in the above case studies?
a) Needs and wants
b) Created market offering
c) Customer value
d) Exchange mechanism
Q.57. Which management philosophy is highlighted above?

a) Production
b) Product
c) Selling
d) Marketing
Q.58. What is essence of marketing which is indicated in the above case?

a) Selling
b) Advertising
c) Exchange
d) Customer focus
Q.59. Which element of marketing mix is indicated above?

1. Product
2. Place
3. Price
4. Promotion
a) 1,2.
b) Only 1.
c) Only 2.
d) 1,3.
Solutions:
Q.32 to Q.59…………… https://youtu.be/8z9BGK7AwE0
Q.60-62. 'Fast Fast' is a well established tyre manufacturing firm. It has manufactured more than
5 crores tyres uptill now. The company these days is struggling to make desirable profit. In an
important meeting a very important element of marketing mix was discussed which will directly
impact the demand of the product. They agree on making the tyres manufactured by the firm
based on the factor which will decide the lowermost level of this element of marketing mix.
Q.60. Which characteristic of brand name is highlighted in the name of the tyre company?
a) Versatility
b) Staying capacity
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c) Suggestive of quality
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d) Adaptability
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Q.61. Which element of marketing mix is indicated above?

a) Product
b) Price
c) Place
d) Promotion
Q 62. Which factor affecting this element has been indicated above?
a) Cost
b) Utility and demand
c) Extent of competition in the market
d) None
Q.63-65. Ravi recently purchased a life saving drug for her sister. He made great efforts to buy it
from a drug company which only had a few bottles of this drug left. Due to the regulation by the
government the drug was available to him at 50 percent of the price. Ravi's father Arun works in
the service sector. One day he decided to give lecture to his team on recent Cricket series
sponsored by the same drug company which produced the life saving drug which Ravi
purchased.
Q.63. Which factor affecting price determination is highlighted here?
a) Cost
b) Marketing methods used
c) Government and legal regulation
d) Comfort of the seller
Q.64. Who is the marketer here?

a) The drug making company
b) Ravi
c) Both of them
d) The Government
Q.65. Which of the following statements are true?

1. Ravi's father doesn't work in a motor cycle making firm.
2. In marketing anything of value to the buyer can be considered as a product.
a) Only 1
b) Only 2
c) Both 1&2
d) Neither of the two
Q.66-69. XYZ Bank has a very effective management. The bank provides loan to small
businessmen at a relatively high interest rates. The loans are provided on easy terms and
conditions. Recently the top management of the bank has decided to make the bank popular to
attract more clients. An element of promotion mix will be used to reach out to crores of people.
This will help in reducing per unit cost of promotion. The bank has also decided to properly
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understand the needs of its target market to increase its reach. In order to achieve this proper
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survey and research is being conducted.
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Q.66. Which element of marketing is indicated above?

a) Personal Selling
b) Advertising
c) Public Relations
d) Sales Promotion technique
Q.67. Which merit of this element is highlighted above?

1. Mass reach
2. Ensuring brand loyalty
3. Economies of scale
4. Expressiveness
a)1&2
b)1&3
c) 1,2,3.
d) 3&4
Q.68. Which philosophy of management is indicated above?

a) Production
b) Product
c) Selling
d) Marketing
Q.69. Which function of marketing is indicated above?

c) Customer support service
d) Standardisation and Grading
Q.70-73. Atul is the owner of a trading firm. He believes that customers don't buy products
unless they are properly convinced and motivated to do so. That is why he uses various modes to
communicate with them. Recently he has decided to keep a brand in his stores which has the
name 'X'. The quality of this brand name is that you can sell a number of new products under it.
A number of products are expected to be launched by this company under the same name.
Q.70. Which philosophy guides Atul's style of business?
a) Product
b) Production
c) Selling
d) Marketing
Q.71. What is overlooked by Atul's philosophy?

a) Understanding needs of target market
b) Persuading the customer
c) Customer satisfaction
d) Both a and c
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Q.72. Which characteristic of good brand name is highlighted here?
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a) Adaptable
b) Distinctive
c) Versatile
d) Easy to remember
Q 73. Which element of marketing mix is indicated above?

1. Product
2. Price
3. Place
4. Promotion
a) 1,2.
b) 1,3.
c) 1,4.
d) 3,4.
Q.74-76. Raman is a manufacturer of stationary items. In order to create equal satisfaction

among all of the users the items are manufactured on predetermined standards. The business
firm offers various stationary items like pencils, erasers, sharpeners, etc. The firm has only 3 big
competitors which makes the market fragmented. In the coming time challenges of the firm
might increase further due to increase in regulations by the government.
Q.74. Which function of marketing is highlighted in the above case?
a) Packaging and labelling
b) Product design and development
c) Standardisation and grading
d) Customer support services
Q.75. Which element of marketing mix is highlighted here?

a) Product
b) Place
c) Price
d) Promotion
Q.76. Which factor can't be considered to decide the price of the stationary items?
a) Cost
b) Marketing methods used
c) Utility and Demand
d) Competition in the market
Q.77-79. Ravi runs a factory involved in manufacturing plastic decorative items. His business
picked up during last 10 years. However, with the passage of time the demand of plastic
decorative items is decreasing as people are showing more interest in wooden items. Ravi, on the
other hand is unwilling to change his product and has started focussing entirely on the plastic
decorative items. He is more concerned on generating more revenue by ensuring higher number
of pieces reaching homes of his target audience.
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Q.77. Which management philosophy is highlighted in the above case?

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a) Product
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b) Production
c) Selling
d) Marketing
Q.78. In the above case as per the followed philosophy how can the firm maximise its profits?
a) By satisfying customer needs
b) By improving quality and performance
c) By maximising sales volume
d) By maximising production volume
Q.79. What is the origin point of the management philosophy indicated in the above case?
a) Factory
b) Integrated marketing
c) Market
d) Both a and b
Q.80-82. An FMCG company deals in more than 200 products. The company has decided to
launch 6 new products this year. The situation requires the company to use its old name to be put
ahead of the new products. The price of the product will have to be kept by following the
strategy of market penetration. The company has invited marketing experts from 15 different
countries for discussion in its headquarters. A blueprint for an effective marketing plan will be
created in order to enhance its brand value. Legal protection for the brand of the company will
also be discussed.
Q.80. Which characteristic of good brand name will be required here by the company while
launching new products keeping the old name ahead?
a) Versatile
b) Suggestive of quality
c) Short
d) Adaptable
Q 81. Which pricing objective is followed here by the company?

a) Survival
b) Quality leadership
c) Market share
Q.82. Which of the following is not an advantage of branding to the marketers?

b) Differential pricing
c) Status symbol
d) Ease in introducing new product
Q.83-86. ABCDE Ltd. deals in dish wash and personal care segment. In dish wash it has a well
known product by the name 'Chamakta'. The product has already captured 80% of the market
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share. In personal care the company has 4 products with the name 'Amazingo'. Recently Mr.
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Kishore Malik called for a quick meeting of the top management of the company. He showed his
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keenness to launch toothpaste. The major points of discussion were the ingredients and
packaging. Majority of the top level managers agreed in the meeting about the importance of
packaging in preventing leakage of contents.
Q.83. Which quality of good brand name is indicated in case of dish wash?
a) Distinct
b) Suggestive of quality
c) Adaptability
d) Versatile
Q.84. The quality of brand name which is reflected in the name of personal care products is:
a) Distinct
b) Staying power
c) Suggestive of quality
d) Versatile
Q.85. Which type of packaging will be required for toothpaste?

a) Primary, Transportation
b) Primary, Secondary, Tertiary
c) Secondary, Transportation
d) Primary, Secondary, Transportation
Q.86. Which function of packaging is highlighted above?

a) Product Identification
b) Product Protection
c) Facilitating use of the product
d) Product Promotion
Q.87-89. Sangeeta went for shopping one day to a nearby mall. There she searched for her
favourite oil brand and found it after seeing its name in printed form on the outer side of an oil
bottle. She wanted a particular category of oil which she was able to identify as the company had
differentiated various oils on the basis of features and quality. After having a close look she was
really happy to find 25% extra oil available at the same price. The oil was available in bottles of
different sizes of 200, 300 and 500 ml in respective prices of ₹300, ₹375 and ₹450.
Q.87. Which important concept of marketing is highlighted here?
a) Packaging and Branding
b) Packaging and Labelling
c) Branding and Labelling
d) Branding, Packaging and Labelling
Q.88. Which function of one of the concepts highlighted above is not indicated in the above case
study?
a) Providing information required by law
b) Identification of the product or Brand
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Q 89. Which element of marketing mix is indicated in the case above?

1. Product
2. Price
3. Promotion
4. 2,3.
a) 1,2,3.
b) 1,2.
c) 2,3.
d) 1,2,3,4.
Q.90-92. Ajay is the CEO of a chain store company. The footfall of the customers is generally
very high. There are no credits offered to the customers. The products made available to them are
standardised. The level of customer support services is low as the prices of the products are also
kept low to suit the pockets of the target audience. However, recently Ajay and his team have
decided to offer better after sales services. The step is very much in line with the release of three
new products in the coming month. The organisation has decided to create stories and dramatise
the products in the media.
Q.90. Which element of promotion mix is indicated above?
a) Advertising
b) Public relations
c) Personal Selling
d) Sales promotion
Q.91. Which objective of the highlighted element (referred to in the previous question) of
promotion mix is indicated above?
b) Lowering promotion cost
c) Mass reach
d) Usable benefit
Solutions:
Q.60 to Q.91…………… https://youtu.be/bytvCo_k9mo
Q.92. Which of the following will not fall in the category of marketing methods used?
1. After sales services
2. Handling customer grievances
3 Providing discounts and rebates
4. Market penetration
5. Market skimming
a) 1,2,4.
b) 1,2,3.
c) 3,4,5.
d) 4,5.
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Q.93-95. Rajneesh Power Company Ltd. is a well known name in the field of power generation.
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Power generation takes place in three ways- Coal, Wind and Solar based. The company has huge
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growth prospects keeping in mind the Government's renewable energy push in the coming
future. The top management of the company has decided to bolster the image of the company by
improving its relationship with current stakeholders. In a recent press conference the CEO of the
company decided to bring to light the various initiatives taken by the organisation towards clean
energy. The company is also thinking of increasing the production of electricity so that per unit
cost of power could be cut by more than 30%. If this happens the power company will also be
able to provide cheaper electricity due to the reduced cost.
Q.93. Which element of promotion mix is highlighted in the above case?
a) Public relations
b) Advertising
c) Personal selling
d) Sales Promotion techniques
Q.94. Which Management philosophy is highlighted here?

a) Production
b) Product
c) Selling
d) Marketing
Q.95. Which factor affecting price is indicated above?

a) Utility and Demand
b) Government and legal regulation
c) Cost
Q.96-99. Rajesh Perfumes Ltd. has 750 outlets throughout the length and breadth of the country.
In a recent meeting of the top most managers of the company there was an intense discussion
regarding steps to be taken to increase the sales revenue of the company. Around one-third of the
managers suggested that there should be increase in advertising so that more people could come
to know about their products in a short span of time. However, the remaining two-third laid
stress on increasing sales through Personal selling efforts as it works on awareness about the
product. The organisation wants to become the market leader and for that a thorough research is
being done to know about the requirements of the market. The shape of the perfume bottles will
be decided on the basis of this research to facilitate use.
Q.96. Which merit of advertising is being indicated in the above case?
a) Helps in attaining satisfaction and confidence
b) Achieving economies of scale
c) Mass reach
d) Both a and c
Q.97. If personal selling works on awareness of the customer then at the same time advertising
works on:
a) Knowledge
b) Clarification
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c) Personality
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d) Interest
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Q.98. Which of the following can only be considered as a 'Monologue'?

a) Personal Selling
b) Advertising
c) Development of personal relationship
d) Both a and c
Q.99. Which function of marketing is suggested above?

1. Gathering and analysing market information
2. Marketing planning
3. Product design and development
4. Standardisation and Grading
a) 1,2.
b) 2,3.
c) 1,3,4.
d) 1,3.
Q.100-102. Savita is the marketing head of 'Budding Ambitions', a renowned educational

institute. The institute provides technical education and training in various courses which have
huge demand in the corporate world. The courses are made available in five formats- A, B, C, ,D
and E as per the requirement of the concerned fields. Recently the organisation was criticised by
media due to their over commercial approach towards education. In order to improve its image
few CSR activities are being undertaken to improve the image of the institute. It has also decided
to sponsor two major events to further create a good impression in the eyes of students and their
family members. The top management thinks the above mentioned activities will also reduce
dependence on advertising and hence save cost.
Q.100. Which element of marketing mix is highlighted in the above case?
a) Product
b) Place
c) Promotion
d) Both a and c
Q.101. Identify the false statement:

1. Advertising is a flexible mode of communication
2. Advertising covers market in a short span of time.
3. Advertising doesn't make use of mass media.
4. Advertising is of impersonal form
a) 1,2.
b) 1,3,4.
c) 1,4.
d) 1,3.
Q.102. Which objective of public relations is indicated above?

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b) Lowering promotion cost

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c) Building credibility
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d) Both b and c
Q.103-106. The experts of ABCDE Bank Ltd. see a huge scope of increase in per capita income
in India. This can also be seen as a scope for expansion of the bank's business. As per an in-depth
research by the CEO of the bank, Mr. Arun Taneja, the banking industry has a lot of potential to
grow in the coming 20 years. In a recent top level meeting the bank has decided to open small
kiosks at various public places to open bank accounts of prospective clients. The employees of
the bank will inform the public about the credibility of the bank, higher interest rates offered and
bank's user friendly applications. The role of public relations department is also going to be
important here.
Q.103. Which function of marketing is highlighted in the above case?
b) Product design and development
c) Standardization and grading
Q.104. Who do you think is the marketer in the above case?

a) Bank
b) Public
c) Government
d) All of the above
Q.105. What is being marketed in the above case?

a) Services
b) Ideas
c) Information
d) Organisation
Q.106. Which of the following is not going to be the objective of bank's public relations
activities?
b) Building credibility
c) Stimulating sales force
d) Development of relationship
Q.107-109. Amit purchases packaged biscuits unlike his father. He believes that chances of
adulteration decreases in packaged goods. They have a big house. In the backyard, vegetables are
grown for consumption by family. However, the vegetable garden has got infested with insects.
One day his younger brother, Suresh, brings a packet of insecticide to get rid of the harmful
insects. On the insecticide, he reads a warning cautioning the users about the poisonous
substance.
Q.107. Which importance of packaging is highlighted here?
b) Innovation opportunity
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c) Rising standards of health and sanitation

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d) Transportation
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Q.108. Which elements of product mix are highlighted in this case?

a) Branding, Packaging
b) Packaging, Labelling
c) Branding, Labelling
d) Branding, Packaging, Labelling
Q.109. Which function of labelling is indicated above?

a) Identification of the product
b) Grading of products
c) Specification of contents
d) Providing information required by law
Q.110-112. Two brothers- Manoj and Shekharan ran two different businesses. Manoj made
industrial products whereas his brother made consumer products. Their father gave both of them
Rupees 50 lakh each to support them in their promotional activities. Shekhar approached a
famous advertising firm to make advertisements for him. The agency asked him to clarify the
brand name to be advertised and made it clear that there will be no face to face interaction
between the prospect and the advertiser. They charged Rupees 10 lakh for the complete
advertising campaign which was to be kept limited to Shekhar's home city only. The project head
from the agency, Ravi Arora, also confirmed that they will be using computer designs, graphics
and special designs to make their products appear very attractive.
Q.110. Which promotion tool is preferred by business firms selling industrial products?
a) Advertising
b) Personal selling
c) Both a and b
d) Neither a nor b
Q.111. Which feature of advertising is highlighted in the case mentioned above?

a) Impersonality
b) Identified sponsor
c) Paid form
d) Both b and c
Q.112. Which merit of advertising is indicated in the case mentioned above?

a) Mass reach
b) Enhancing customer satisfaction and confidence
c) Expressiveness
d) Economy
Q.113-115. Shobhit Scooters Ltd. is a pioneer in the field of solar scooters. The firm has a big
first mover advantage. The management has kept the price of scooter low in order to attract more
people towards buying it. CEO of the company, Mr. Dhanveer Kumar, has decided to provide
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delivery of the scooter to home of the buyers. This step may increase the price of the scooter a
little bit. The company had once planned to enter segment of electric scooters but the presence of
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other players in the market discouraged Mr. Dhanveer to do so. Further due to the presence of
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various competitors in the electric scooter segment there is a lot of focus on existing products
(electric scooters) by the companies. The companies in this segment also persuade a customer to
buy the scooters.
Q.113. Which pricing objective is indicated above?
a) Surviving in a competitive market
b) Obtaining market share leadership
c) Obtaining product quality leadership
d) It has no set objective in mind
Q.114. Which factor affecting price determination is indicated above?

a) Marketing methods used
b) Cost
c) Extent of competition in the market
d) Both a and b
Q.115. Which management philosophy is indicated in case of electric scooter segment?

a) Production
b) Product
c) Selling
d) Marketing
Q.116-118. Amita is the owner of a large sized factory involved in manufacturing hammers. Her
business is more than 100 years old. The hammers manufactured by her factory are in demand in
various countries. All precautions are taken to avoid any type of interruptions in work. The
hammers are so much in demand that whatever is produced is purchased. The only concern of
Amita is to maximise production and thereby minimise cost to increase profit margin as much as
possible.
Q.116. Which management philosophy is opted by Amita?
a) Product
b) Production
c) Selling
d) Marketing
Q.117. Mark the true statement:

a) Profit maximisation in product concept takes place due to increase in sales
b) Product concept involves continuous improvement of the product
c) Production concept involves integrated marketing
d) The origin of marketing concept is factory
Q.118. Production concept focuses on increasing

a) Customer satisfaction
b) Production efficiency
c) Distribution efficiency
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d) Both b and c
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101
Q.119-120. Five friends (A,B,C,D and E) did MBA from the same college. After passing out of
the college they decided to start their own business firms. Mr. A focussed on the factor affecting
price which was responsible for deciding the floor price of the product. Mr. B focussed on the
factor of price determination which decided the upper limit of the price of the product. Mr. C and
Mr. D were dealing in an area where the government was very strict regarding unfair practices
and was involved in fixing price of the product. Mr. E launched a product in which he wanted to
attract a large number of customers and decided to keep the price at lower level.
Q.119. Which of the following statements are correct?
1. Mr. B's pricing objective is survival
2. Mr. A's pricing objective is survival
3. Mr. C's pricing objective is Quality Leadership
4. Mr. E's pricing objective is Obtaining Market Share
a) 1,2,3.
b) 2,3.
c) 1,3.
d) Only 4.
Q.120. Which of the following factors affecting price determination are correctly matched?
1. Mr. A-- Product cost
2. Mr. C- Utility and demand of the product
3. Mr. D-- Government and legal regulation
4. Mr. B-- Utility and demand of the product
a) 1,3.
b) 2,3.
c) 1,3,4.
d) Only 2.
Q.121-123. Savita is a floor manager in a mall. She has a very busy schedule and has around 10-
12 sales persons under her who help daily customers choose their products from display shelves.
Recently, the business expanded leading to the increase in the area of floor along with the
number of brands on shelves. However, due to good packaging by upcoming brands, the need to
increase the number of salespersons was not required. The customers who visit Savita's floor
filled feedback forms in which they showed their tendency to buy certain high quality brands
because they felt proud of using them. On the basis of this survey, she was able to identify the
top 5 brands. They were FIN, Delicatano, Chacha Khushboo, StarsOnSky and SeaRock.
Q.121. Which importance of packaging is indicated above?
a) Rising standards of health and sanitation
b) Self service outlets
c) Innovation opportunity
d) Product differentiation
Q.122. Which advantage of branding to customers gets reflected in feedback forms?

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a) Helps in product identification
b) Ensures quality
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102
c) Status symbol
Q.123. Which qualities of good brand name are properly matched with the products?
a) StarsOnSky (Shirt Brand) - Distinctive
b) SeaRock (Salt Brand) - Suggestive of Quality
c) Delicatano (Soap Brand) - Short
d) Both a and b
Q.124. Which brand name out of the following is versatile?

a) FIN
b) Delicatano
c) Chacha Khushboo
Solutions:
Q.92 to Q.124………….. https://youtu.be/F9T6J1IwSVQ
For solutions to Marketing MCQs click on the following YouTube links:
Q.1 to Q.31…………….. https://youtu.be/EI6swYy9o84
Q.32 to Q.59…………… https://youtu.be/8z9BGK7AwE0
Q.60 to Q.91…………… https://youtu.be/bytvCo_k9mo
Q.92 to Q.124………….. https://youtu.be/F9T6J1IwSVQ
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500+ MCQ Booster (Term 1 Business Studies Class12th) by Tapan Pathak

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500+ MCQ Booster (Term 1 Business Studies Class12th) by Tapan Pathak

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Try to attempt each and every one.

Nature and Significance of Management………………………………….. 5-17

Principles of Management…………………………………………………. 18-35

Business Environment……………………………………………………… 36-49

Q. 3. .................... is concerned with the end result.

Q. 4. I am an owner of a shoe making company. Recently I gave an order to my team to make

Q. 6. Assertion: Management is an inexact science.

Q. 7. Which of the following is false about principles of management?

Q. 8. Which of the following is true?

Q. 9. The entry to a profession is restricted through

Q. 10. Assertion: Professions necessarily have their codes of conduct

Q. 11. Which of the following is not the characteristic of a profession?

a) Well defined body of knowledge

Q. 14. Middle level manager doesn't

Q. 15. Who are the first line managers?

Q. 16. Assertion: Lower level management is also known as operational management

Q. 17. Which of the following is not true?

Q. 18. Which of the following is not a characteristic of coordination?

Q. 20. Assertion: Coordination ensures deviation of action

Q. 21. Assertion: Coordination is not a separate function of management

Q. 24. Which characteristic of management is indicated in case of Sudhanshu's school?

Q. 26. Which importance of management is indicated above?

Q. 28. Which characteristic of management is indicated in the above case?

a) Goal oriented process

Q. 30. Which importance of management is indicated above?

Q. 32. Assertion: Human resources are the greatest resource of an organisation

Q. 33. Management translates ............. in terms of ...............to be achieved.

Q. 34. Which of the following statements are true?

2. Management deals with individuals as group of people

Q. 35. Which of the following is not an example of economic objective of management?

Q. 36. Which of the following is not an importance of management?

Q. 37. All organisations have to operate in an environment which is ....................................

Q. 38. Assertion: Management helps an organisation to adapt to changing business environment

organisation had management or not and this really baffled him.

Q. 39. Which importance of management is highlighted in this case?

Q. 40. Which feature of art is highlighted in the above case?

Q. 41. Which objective of management is being targeted by Sushant in his organisation?

Q. 42. Which characteristic of management is indicated in the above case?

a) Establishing standards of performance

b) Comparison of performance with established standards

c) Taking corrective action

Q. 46. Ravinder is a manager in a firm which is involved in clothing business. He is very

Q.47. Which process starts in an organisation at the planning stage itself?

Q.49. Which of the following word cannot be associated with coordination?

Q.50. Science is systematised body of knowledge because

Q.51. What is the common point between management and science?

d) None of the above.

Q.57. Which function of management will help in establishment of an atmosphere that

Q.58. Which of the following is not false?

Q.60. Which of the following statements is true?

Q.27 to Q.60……………... https://youtu.be/xqsRLU9PMGg

Q.62. .......................... is a part of all management functions.

common focus could be provided.

Which characteristic of coordination is indicated in the above case?

Q.64. Which of the following statements are false?

Q.65. Assertion: Coordination is required at all levels of management.

Q.66. Which of the following statement is false?

Q.67-69.Recently a major problem was avoided in an organisation when two departments of

Q.68. Which characteristic of coordination is indicated in the above case?