2 PRACTICE PAPER

Time Allowed: 90 minutes] [Maximum Marks: 40]

General Instructions:

) All questions are compulsory.

(ii) Each question carries 1 mark.

Multiple Choice Questions

1. A company dealing in petrochemicals has the rule of 'No Smoking' within 100 meters of the
factory. An employee was caught smoking in the factory premises. Which principle of management
is violated by him?
(a) Order (b) Discipline (c) Equity (d) None of these
is the process of grouping similar activities together and ereating departments
2.
Division of work (b)
(a) Departmentalisation (c) Delegation (d) Centralisation
3, With the increased awareness for healthcare, there is an increase in the demand for healthcare
products and services in the country. Which feature of business environment is being described
here?

(a) Dynamic nature

(b) Uncertainty
(c) Relativity (d) Inter-relatedness
4, Which of the following is not an organisational objective of management?
(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Using environmental friendly methods of production
5. The study that helps to frame suitable incentive scheme and determining labour costs is:
(a) Time study (b) Motion study (c) Method study (d) Fatigue study
6. Which of the following is an example of social environment?
(a) Money supply in the economy (b) Consumer Protection Act, 2019
(c) The Constitution of India (d) Composition of family

Business Studies 119

 O C Ltd. decided to ofler a free sample of S ml liquid soap sachet with 500 gm of det.
ldentify the type of element of marketing mix involved im the decision taken hu.. letergenm
Ltd Able
(a) Pricing (b) Product
(c) Promotion (d) Place
8.
iS the formal line of authority and communicalion that runs trom top to h
level of management. oolom
(a) Unity of command (b) Scalar chain
(c) Authority and (d) None of these
9.
responsibility
Centralisation refers to
(a) Retention of
decision-making authority (b) Dispersal of decision making authority
(c) Creating divisions (d) Opening new centers or branches
as
profit centers
Aeshav works as a production manager in Sheetal Enterprises Limited. He has been given the
t n g 1000 units of handmade pouches manufactured at the cost of R 50 per unit within
dweek. In order to be acknowledeed as an effective manager, he must ensure that:

(a) cost
of production does not exceed 50 per unit
(D) work is
completed within a week even at higher cost per unit
(c) cost of production is less than 7 50 per unit
(d) All of these
11. Which of the following is not a limitation of planning?
(a) Planning reduces
creativity (b) Planning does not ensure success
(c) Planning is a time consuming (d) Planning provides direction
process
12.
Anticipating the changes in the consumers' demands and preferences, Manpasand Bakery reduced
the sugar and fat content in its products. The feature of business management shown here is that
(a) Management is an intangible force.
(b) Management is a group activity.
(c) Management is a dynamic function.
(d) Management is a multi-dimensional activity.
13. Chances and events cannot be eliminated but they can be anticipated and managerial response to
them can be developed. Which importance of planning is being highlighted here?
(a) Planning facilitates decision-making
(b) Planning reduces overlapping and wasteful activities
(c) Planning provides direction
(d) Planning reduces risk of uncertainty

120 Tagether wiah Competency Based and Objective Type Questions-12

 obtains the required capital at 12% interest while the
oblains
reai

A
managcr
prevailing rate of interest happen
14. How would you describe such a
to
be 10 manager?
(a) Eicien

(b) Effective
(c)EhcIent and Effective
(d) Inefficient
Under
r
which function of
which fund management the relationship between diflerent posts/positions is explaincd?
15.
(a) Planning
(b) Communication
(c) Organising
(d) Supervision
the following is not
importance of
an
Which of planning?
16.
Planning provides direction
a) (b) Planning promotes innovative ideas
Planning reduces the risk of uncertainties
(d) Planning leads to rigidity
17. Which out
of the
eh following has been called the essence of management?
(a) Communication
(b) Coordination
() Supervision
(d) Leadership
which activity will be a futile exercise if it is not acted upon or implemented?
18.
(a) Management
(b) Coordination
(c) Directing
(d) Planning
0Which of the following is not an element of delegation?

(a) Accountability
(b) Authority
(c) Responsibility (d) Informal organisation
which of the following functions of management is closely related to planning?
(a) Controlling (b) Stafing
(c)Directing (d) Organising

Assertion-Reasoning Type MCQs

In
ooiven questions (Q.21 to Q.24), a statement of assertion followed by a statement of reason
oiven. Choose the correct answer out of the following choices.

(a)
Rath Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A)
(6) Rath Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation
of Assertion (A)

is true but Reason (R) is false

() Assertion (A)
( Assertion (A) is false but Reason (R) is true
21. Assertion (A): Grading is So important in moderm day marketing that it is considered as a pillar

of marketing.
Reason (R): Packaging is important not only for protection of the products but also serves as a
promotional tool.

Business Studies 121

 *rton (A): The principles o f management are not rigid but ilexible
22
eason (R): Principles of managenment can be adapted and modilied by the practicin

depending upon the situation nanagers

monitor the technological changes takinu
On (A): A businessman must closely king place in
the industry.
Reason (R):
Technological
environ provides n e w and
a d v a n c e ways/1ech
chniques of producti
and monitoring it helps in facing competition and improving quality of the products.

2. Assertion (A): Planning is forward backward loOking

as well as
Reason (R): Planning always means looking ahead, it is never for the past. All the managers
Ts
to make
iry
predictions and assumptions for future
Case-Based MCQs
Read the following text and answer question numbers 25-28 on the basis of the same.
totel Leela analysed the problem of their outstationed clients to reach them. 10 make their trip hassle
ree, they decided to incude picking up of clients from airports and railway stations. This will definite
mprove the image of the hotel. It will add to the comfort of the clients. The hotel has done this to fighi
The
tough competition with the new entrants in the market.
25. In the above lines, changes have been made mix.
in

(a) Product (b) Price

(c) Promotion (d) Place

26. The steps taken the charges of the stay at the hotel.
by the hotel are expected to

(a) increase (b) decrease

(c) have no change (d) None of thesee

27. Which marketing concept is followed by the hotel?

(a) Selling concept (b) Product concept

(c) Production concept (d) Marketing concept
28. What is the main focus of the concept identified in Q.27 above?

(a) Existing product (b) Quality of product

(c) Quantity of product (d) Customer needs
Read the following text and answer question numbers 29-32 on the basis of the same.
Nutan Tifin Box service was started in Mumbai by Mumbai Dabbawalas. The Dabbawalas who are
the soul of entire Mumbai aim to provide prompt and efficient services by providing tasty homemade
tiffin to all office goers at right time and place. The service is uninterrupted even on the days of bad
weather, political unrest and social disturbances. Recently, they have started online booking system
through their website 'mydabbawala.com'. Owing to their tremendous popularity amongst the happy
and satisfied customers and members, the dabbawalas were invited as guest lecturers by top business
schools. The Dabbawalas operate in a group of 25-30 people along with a group leader. Each group

122 Tagether wth Competency Based and Objective Type Questions-12

 other groups in order 1o deliver the itlin
uD
teans u p
with on
time. They are ot transterred on frequent
as
they
have tto remember the addresses of heir
customets.
They follow cetain rules while domg
b a

Iike no a l c o h o l .
s i s

ol during working
hours; no leave without
permission, Wearing of wite cap and
n eards during business hours. Recently on the suggestion of a few self-motivated fellow
thought out and executed a plan of providing food let in tifins custoners to
carryng

the dabbawalas

11e. nen. They have instructed their customers to place red sticker if food is lettbyin the tittin, to
slun child

children later.
to poor
fed
he
teams
Each group tea up with other groups in order
to deliver the titin on
29 time. They are not
as ferred on frequent basis as they have to remember the addresses of their customers." Which
trans
nrinciple of management is highlighted here?
prin
(a) Order
(6) Remuneration of employees
Stability of personnel
(c) d) Authority and Responsibility
Thev follow certain ules while doing trade; like no alcohol during working hours, no leave
30
suithout permission; wearing of white cap and carrying ID cards during business hours. This
the principle
shows adherence of
to

(a) Equity (b) Discipline

(c) Order
() Scalar chain
Recently on the suggestion of a tew self-motivated fellow men, the dabbawalas thought out and
31.
vecuted a plan of providing food left in titins
exed
by customers to slum children. This line shows
that the people im the organisation are fulfilling the principle of

de corps
(a) Espinit b) Equity
(c) Initiative
(d) Unity of direction
Thev have instructed their customers to place red sticker if food is left in the tifin, to be fed to
naor children later. The significance ot management principle shown in this line is:
(a) Scientific decision

(b)Meeting changing environment requirements

c)Fulfilling social responsibility

None of these
(d)
t h e following text and answer question numbers 33-36 on the basis of the same.

nchit Chauhan started a telecommunication company, 'Donira Ltd.' to manufacture economical mobile
s for he Indian rural market with 15 employees. The company did very well in its initial years. As
anroduct was good and marketed well, the demand of its products went up. To increase production
nany decided to recruit additional employees. Darshit Chauhan, who was earlier
taking all
cisions for the company had to selectively disperse the authority. He believed that subordinates are
rompetent, capable and resourcetul and can assume responsibility for effective implementation of their

oeisions. This paid off and the company was not only able to increase its production but also expanded
its product range.

Business Studies 123

 i a ttold that they w e r e under pressure to satisfy the consumers, but stated that the consumers
were
o l d t h a t thcy
Shwela
1N.
would not buy or not Duy cnough uniess they werc ndequately convinced and motivated for the

ae What is the means of the marketing management philosophy referred by Shweta here?
(a) Product inprovements

Selling and promotion

(b)
(c)Integratedmarketing
Availabily and affordability of product
aUpasana stressed that a company cannot achieve its objectives without understanding the necds of
3 customers. It was the duty of the businessmen to kcep consumer satisfaction in mind because
business is run by the resources made available to them by the society. The marketing philosophy
is:
followed by Upasana
(a) Selling concept (b) Product concept
(c) Marketing concept (d Production concept
The end aimed by Upasana through the philosophy identified in Q.39 is profit through
40.
Volume of production (b) Product quality
(a)
(c) Customer satisfaction (d) Sales volume

ANSWERS
1. (b) 2. (b) 3. (d) 4. (d) 5. (a) 6. (d)
7. (c) 8. (b) 9. (a) 10. (b) 11. (d) 12. (c)
13. (d) 14. (b) 15. (c) 16. (d) 17. (b) 18. (d)
19. (d) 20. (a) 21. (d) 22. (a) 23. (a) 24. (a)
25. (a) 26. (a) 27. (d) 28. (d) 29. (c) 30. (b)
31. (c) 32. (c) 33. (a) 34. (d) 35. (c) 36. (6)
37. (c) 38. (b) 39. (c) 40. (c)

Business Studies 12
 D a r s h i u Chauhan, who was earlier taking all decisions tor the company had to selectivelyd.

the
authority. Which concept is beng referred here
dinperse
(a)Decentralisation (b) Delegation
(c) Controlling (d) Drecting
C Tollowing statements regarding the concept identiied in Q33 is false?

(a) It is an
optional policy
( b ) t i s the result of
policy decisions taken by top manageme
()tincreases the role and the autonomy of lower level of management

(d) It implies concentration of authority at the apex of management hierarchy

35. Which of the following is not an advantage of the concept identified in Q.3

(a) Develops initiative among subordinates

(b) Quick and better decision-making
(c) Fulfillment of social needs of employees
(d) Relieves the top executives from excess work load
S0. When the concept identified in then it would
Q.33 is used completely in an organization, obviate
the need for:
(a) a
management hierarchy
(b) higher managerial position
(c) motivating the employes
(d) All of these
Read the following text and answer question numbers 37-40 on the basis of the same.

Anjali, Shweta and Upasana were friends from college days and now they are doing different kinds
Or business. and discuss their business ideas and exchange notes on customer
They regularly meet
satislaction, marketing efforts, product designing, selling techniques, social concerns etc. In one of
Such meetings, Anjali drew the attention of Shweta and Upasana towards the exploitation of consumers,
She told that most of the sellers the consumers in various ways and were not paying
were exploiting
attention towards the social, ethical and ecological aspects of marketing, whereas she was not doing
so. Shweta told that they were under pressure to satisfy the consumers, but stated that the consumers
would not buy or not buy enough unless they were adequately convinced and molivated for the same.
Upasana stressed that a company cannot achieve its objectives without understanding the needs of the
customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business
is run by the resources made available to them by the society. She further stated that she herself was
taking into consideration the needs of the customers.
37. She told that most of the sellers were exploiting the consumers in various ways and were not
paying attention towards the social, ethical and ecological aspects of marketing, whereas she was
not doing so.' Which marketing management philosophy followed by Anjali?

(a) Marketing concept (b) Production concept

(c) Societal concept (d) Product concepl

124 Tagether wehCompetency Based and ObjectiveType Questions-12