CALIBRE ACADEMY

Rajkot

WORKSHEET CH2 AND 3

Class 12 - Business Studies
Time Allowed: 2 hours Maximum Marks: 90

1. Science, not rule of thumb, this principle was given by ________. [1]

a) F.W.Taylor b) James Lundy

c) Henry Fayol d) Koontz

2. The basic aim of Functional Foremanship is: [1]
A. to separate planning functions from execution functions.
B. to separate Top-level management from Chief Executive Officer.
C. not to divide the work
D. not to provide free time to workers

a) Only D b) Only C

c) Only A d) Only B
3. Unity of direction is concerned with: [1]

a) One Head One Plan b) Planning by Production manager

c) One Head Different Plans d) Planning by Employees

4. Which system of management talks of complete mental change? [1]

a) Work management b) Both scientific and administrative

management

c) Scientific management d) Administrative management

5. ________ principle of management is being violated if management does not fulfill its promise to increase [1]
wages of the workers after the mission is accomplished.

a) Order b) Initiative

c) Discipline d) Equity
6. The concept of Work-Study techniques includes: [1]

a) All of these b) Time study

c) Fatigue study d) Motion study

7. Which principle prevents dual subordination? [1]

a) Order b) Unity of command

c) Unity of direction d) Equity

8. In which book Henry Fayol has mentioned the 14 principles of management: [1]

a) General and industrial management b) Principles based management

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 c) Management d) Industrial management
9. Principles of management are not: [1]

a) Universal b) Flexible

c) Behavioural d) Absolute
10. The method of time study will depend upon ________. [1]

a) the cycle time of the operation b) time measurement costs

c) volume and frequency of the task d) All of these

11. Taylor focussed his attention on: [1]

a) Administrative level b) Shop level

c) Top level d) Middle level

12. Which of the following statements best describes the principle of Division of Work? [1]

a) Resources should be divided among jobs b) It leads to specialisation

c) Work should be divided into small task d) Labour should be divided

13. Henri Fayol was a: [1]

a) Social Scientist b) Accountant

c) Mining Engineer d) Production engineer

14. The principles of management are intended to be applied to all types and sizes of organizations. This statement [1]
reflects that the principles of management are:

a) Mainly behavioural b) Universally applicable

c) General guidelines d) Flexible

15. Administrative principles were given by: [1]

a) W. W. Taylor b) Henry Fayol

c) FW Taylor d) Abraham maslow

16. One of the Fayol's principle points out the Danger and Costs of Unnecessary Labour Turnover. Name the [1]
relevant principle.

a) Equity b) Order

c) Stability of tenure d) Espirit De Crops

17. Hindustan Lever Limited decided to divest in non-core business of chemicals and seeds. Which point of [1]
importance of principles of management is highlighted here?

a) Meeting changing environment b) Optimum utilisation of resources

requirements

c) Scientific decisions d) Fulfilling social responsibility

18. A worker directly contacts the CEO of the company with a complaint regarding working conditions in the [1]
factory. Which of the following principles is being violated here?

a) Unity of Command b) Unity of Direction

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 c) Scalar Chain d) Discipline
19. Which principle of management is violated when a manager directly passes the information to his supervisor and [1]
also to the supervisors of other department?

a) Equity b) Scalar Chain

c) Unity of Direction d) Initiative

20. She/he keeps machines, materials, tools, etc., ready for operations by concerned workers. Whose work is [1]
described by this sentence under functional foremanship?

a) Instruction Card Clerk b) Gang Boss

c) Repair Boss d) Route Clerk

21. Which of the following principles aims at checking the ignoring of activities? [1]

a) All of these b) Unity of command

c) Discipline d) Unity of direction

22. According to this principle of scientific management, the employees should be rewarded for their suggestions [1]
which results in a substantial reduction in the cost:

a) Harmony, not discord b) All of these

c) Co-operation, not individualism d) Science, not rule of thumb

23. Gang Plank means ________. [1]

a) Direct Contact b) Appointment before Contact

c) Contact not allowed d) Indirect Contact

24. Which of the following is not concerned with F.W. Taylor? [1]

a) Fatigue Study b) Scalar Chain

c) Method Study d) Motion Study

25. Principle of cooperation, not individualism is an extension of which principle given by Taylor? [1]

a) Division of work b) Development of each and every person to

his/her greatest efficiency

c) Harmony, not discord d) Science, not rule of thumb

26. Assertion (A): Management Principles are slightly different from Pure Science Principles. [1]
Reason (R): Management Principles are more rigid than Pure Science Principles.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

27. Assertion (A): Taylor suggested a minimum of 8 specialists to supervise and give orders to workers. [1]
Reason (R): Route Clerk is responsible for giving general instructions necessary to carry on the job in a
specified manner.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

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 c) A is true but R is false. d) A is false but R is true.
28. Assertion (A): Segregating work in the workforce amongst the worker will enhance the quality of the product. [1]
Reason (R): Division of work leads to specialization.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

29. Assertion (A): The principles of management are universal in nature. [1]
Reason (R): Management Principles can be applied to all types of organisations irrespective of their size and
nature.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

30. Assertion (A): Employees deserve just and fair remuneration but what is just and fair is determined by multiple [1]
factors. They include contribution of employees, paying capacity of employer and also prevailing wage rate for
the occupation under consideration.
Reason (R): The principles of management are flexible and can be modified by the manager when the situation
so demands.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

31. Identify the principle of management followed in the following pictorial representation. [1]

a) Remuneration b) Equity

c) The Degree of Centralization d) Authority and Responsibility

32. Identify the principle of scientific management being ignored in the given picture, where boss is eating food [1]
whereas workers are not allowed to take lunch.

a) Mental revolution b) Science, not rule of thumb

c) Co-operation not individualism d) Harmony not discord

33. Statement I: In the factory system, the foreman represents the managerial figure with whom the workers are in [1]
face-to-face contact on a daily basis.
Statement II: Taylor advocated separation of planning and execution functions.

a) Both the Statements I and II are not correct. b) Statement I is correct and Statement II is not

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 correct.

c) Statement II is correct and Statement I is not d) Both the Statements I and II are correct.
correct.
34. Statement I: Unity of Command prevents dual subordination. [1]
Statement II: Unity of Direction prevents overlapping of activities.

a) Both the Statements I and II are correct. b) Both the Statements I and II are not correct.

c) Statement I is correct and Statement II is not d) Statement II is correct and Statement I is not
correct. correct.
35. Statement I: The concentration of decision-making authority is called centralisation whereas its dispersal [1]
among more than one person is known as decentralisation.
Statement II: According to Fayol, There is a need to balance subordinate involvement through centralisation
with managers retention of final authority through decentralisation.

a) Both the Statements I and II are correct. b) Both the Statements I and II are not correct.

c) Statement II is correct and Statement I is not d) Statement I is correct and Statement II is not
correct. correct.
36. Statement I: Unity of Command affects the entire organisation. [1]
Statement II: Unity of Direction affects an individual employee.

a) Both the Statements I and II are not correct. b) Statement I is correct and Statement II is not
correct.

c) Both the Statements I and II are correct. d) Statement II is correct and Statement I is not
correct.
37. Statement I: Functional foremanship is an extension of the principle of division of work and specialisation to [1]
the shop floor.
Statement II: Taylor proposed four specialists each under planning incharge and production incharge according
to their qualities.

a) Both the Statements I and II are not correct. b) Statement I is correct and Statement II is not
correct.

c) Both the Statements I and II are correct. d) Statement II is correct and Statement I is not
correct.
38. Which of the following statements are true about Authority? [1]

a) Authority should be commensurate with b) Authority can be formal or informal.

responsibility.

c) Authority can be official authority or d) All of these

personal authority.
39. Which of the following statements is false? [1]
i. Functional foremanship is an extension of the principle of division of work and specialisation to the shop
floor.
ii. Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would
work.

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 iii. Time Study determines the standard time taken to perform a well-defined job.
iv. Cooperation, not individualism is an extension of the principle of harmony, not discord.

a) Option (iv) b) Option (iii)

c) Option (i) d) Option (ii)

40. Which of the following statements is false about Taylor and Fayol? [1]
A. Fayol's principles are applicable in specialised situations whereas Taylor's principles have universal
application.
B. Fayol was a mining engineer whereas Taylor was a mechanical engineer.
C. Fayol's principles were formed through personal experience whereas Taylor's principles were formed through
experimentation.
D. Fayol's principles are applicable at the top level of management whereas Taylor's principles are applicable at
the shop floor.

a) Only D b) Only A

c) Only C d) Only B
41. Which of the following statements is true? [1]

a) Authority is only formal. b) Authority is only informal.

c) Responsibility is only informal. d) Authority is both formal and informal.

42. Which of the following statements is false with respect to principles of management? [1]
i. The principles of management are formed by experience and collective wisdom of managers as well as
experimentation.
ii. The principles of management are not rigid prescriptions, which have to be followed absolutely.
iii. Management principles aim at influencing behaviour of human beings.
iv. The application of principles of management is not possible in contingent situations.

a) Option (ii) b) Option (i)

c) Option (iv) d) Option (iii)

43. Which of the following is undergoing quick changes? [1]

a) Competition b) Fashion

c) All of these d) Technology

44. Changes in fashions and tastes of consumers will: [1]

a) Shift the market demand from existing b) Increase the Sale

product to new ones

c) Increase the profit d) Increase the cost of production

45. Which of the following is not included in the special powers of the business environment? [1]

a) Customers b) Investors

c) Technical Situations d) Suppliers

46. Which of the following is available in time with the help of the study of the environment? [1]

a) Warning Signal b) Foreign Aid

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 c) Material d) Government Help
47. For the protection of a consumer's right, there is ________. [1]

a) Consumer protection Act 1984 b) Consumer Protection Act, 1986

c) Consumer Protection Act, 1956 d) Consumer Protection Act, 1932

48. Which of the following does not characterise the business environment? [1]

a) Relativity b) Complexity

c) Employees d) Uncertainty
49. External environment trends and changes will provide ________. [1]

a) Less Competition b) Goodwill

c) Profits d) Threats
50. Which one is a specific force for a garment manufacturing industry? [1]

a) Change in technology b) Change in law

c) Change in fashion d) Change in government

51. With the help of the study of the business environment an organization can improve its ________. [1]

a) past b) present

c) present and future d) future

52. Which of the following has got the First Mover Advantage? [1]

a) Kansai Paints b) Goodlass Nerolac

c) Asian Paints d) Kan Paints

53. These days consumers are making eco-friendly and healthy choices and are saying no to all things made of [1]
plastic and replacing it with stainless steel and ceramic containers, thus forcing business to change as well.
Identify the feature of business environment highlighted above:

a) Specific and general forces b) Inter-relatedness

c) Dynamic nature d) Totality of external sources

54. Hitesh and Reena are entrepreneurs. They noticed that every year in the months of November and December, [1]
Delhi, the capital city of India, witnesses poor air quality and rise in pollution levels. They also observed that
nowadays people are more concerned about quality of life. Sensing the need, they were the first to bring into the
market a new Anti-Pollution W-98 Mask which was not only helpful in combating the pollution but also in
increasing the life expectancy of people. Their venture saw a massive success as there was no competitor.
From the following, identify the importance of Business Environment highlighted above:

a) Business Environment helps in improving b) Business Environment helps in tapping

performance. useful resources.

c) Business Environment enables the firm to d) Business Environment helps the firm to
identify the opportunities and in getting the identify threats and early warning signals.
first mover advantage.
55. Which of the following headings does not highlight the importance of business environment? [1]

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 a) Promoting innovative ideas b) Improving performance

c) Tapping useful resources d) Coping with rapid changes

56. With the introduction of a mineral water bottle in India Bisleri was able to capture the big market share in India. [1]
Which importance of the business environment is the highlight in the above case?
i. Helps in tapping resources
ii. Help in policymaking
iii. Improve performance
iv. Help to identify opportunity and getting a first-mover advantage

a) i and ii b) ii and iii

c) iii and iv d) only iv

57. Which of the following best indicates the importance of business environment? [1]

a) Improvement in performance b) Identification

c) Coping with rapid changes d) All of these

58. Through environmental scanning, a business firm can enjoy the ________. [1]

a) Benefit of taxes b) Last Mover Advantage

c) Competition d) First Mover Advantage

59. Advance understanding of business environment will help in: [1]

a) Developing new principles of management b) Nothing

c) Privatisation d) Planning and Policy Formulation

60. Assertion(A): Continuous scanning of business environment improves companies performance. [1]
Reason(R): It provides a chance to the companies to make timely changes in the internal environment and to
prosper and increase their market share

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

61. Assertion(A): Environment Scanning provides enough information about the needs and preferences of the [1]
customers.
Reason(R): It gives early warning signals to the enterprises.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

62. Assertion (A): Scanning of business environment is comparatively easy. [1]
Reason (R): It is difficult to predict the influence of changes in the business environment on business decisions.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

63. Assertion (A): Opportunities are always beneficial to a business enterprise. [1]

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 Reason (R): Opportunities help in the growth and expansion of business activities.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

64. Assertion (A): Timely scanning of the business environment doesn't help in tapping useful resources before [1]
competitors.
Reason (R): Companies use scanning reports to make changes in their products as per the taste of the customers.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

65. Assertion (A): Constraints are the conditions that restrict business activities. [1]
Reason (R): Constraints are the same for all the firms.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

66. Assertion (A): Scanning of Business Environment at an early stage enables the firm to get a first-mover [1]
advantage.
Reason (R): By Scanning the Business environment before their competitors, businesses can trace the
opportunities earlier and can capture a bigger share in the market.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

67. Assertion (A): Environmental Scanning helps in coping with the rapid changes. [1]
Reason (R): Businesses make changes in the external environment matching with the internal environment.

a) Both A and R are true and R is the correct b) Both A and R are true but R is not the
explanation of A. correct explanation of A.

c) A is true but R is false. d) A is false but R is true.

68. State True or False: [3]
(a) Understanding of business environment may assist an enterprise in planning and policy formulation. [1]
(b) Threats refer to the internal environment trends and changes that will hinder a firm’s performance. [1]
(c) Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing [1]
them to competitors.
69. The Government is considering a pioneer proposal to launch a single debit-cum-credit card to increase the ease [4]
and usage for the consumers. The card which will be called the National Mobility Card will have unique
advantages for making payments in metro, buses, parking and making transactions during visits abroad. After
hearing this news, Mega Bank decided to launch a Mega Mobility Card on similar lines, so that they could be
the first to exploit the opportunity, arising due to the increasing trend of digitization. In order to improve their
performance, they laid down a plan to hire more people in their marketing department and prepared guidelines to

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 train their sales force to market the new card facility being launched by the bank. By quoting the lines, identify
and explain any two points of importance of understanding Business Environment discussed above.
70. The Managing Director of ‘CHD Construction Limited, Delhi’ Mr Praveen Kaushik got the information from a [4]
Business Magazine that the Government was worried about Rural Development. With this aim in mind, the
Government has announced to give several exemptions for setting up industrial units in the rural area. Mr
Kaushik presented this matter in the meeting of the Board of Directors. In the meeting, his proposal to set up a
project in a rural area was granted approval. The Chairperson of the Board said that through such a decision the
company will get a lot of profit and the rural area employment.

After a few days, Mr Kaushik read another news in the Business Magazine that the construction companies had
been earning a lot of profit for the last many years and attracted by the profit in this business several Multi-
national Companies were going to enter the market. Mr Kaushik, once again, presented this information before
the meeting of the Board of Directors. In the meeting, it was decided that in order to face this situation they
should concentrate on quality and advertisement. By doing so, on the one hand, they would be able to compete
with full force and on the other hand, society will get better services.
a. Which points of the importance of Business Environment have been talked about in the paragraphs given
above? Identify them by quoting the relevant lines.
b. Which two values are being provided to society by the company?
71. Kapil Sharma is working as the Country Head of a company which owns a chain of malls under the name of [4]
'Virtuoso' in the various parts of India. Through an analysis report of the business environment, it has been
brought to his notice that in the coming years, shopping at a mall will not be a necessity for the buyers as
purchases can be made online from anywhere and at any time with ease and at the consumer's convenience.
Hence, malls will have to provide much more than shopping to be able to attract customers. So, he recommends
that 'Virtuoso' malls should be restructured into recreation centres, offering more spaces to socialise, host events
and concerts, and provide ample Food and Beverages options. Consequently, the share of the entertainment
segment and Food and Beverages segment in the overall mall space is increased by 20%. As a result, the
company gains enormously by getting the first mover advantage.
In the context of the above case :
a. Define the term 'Business Environment'.
b. Explain the terms 'Threats' and 'Opportunities' by quoting lines from the paragraph.
72. 'Environment provides both constraints and opportunities." Comment. [4]
73. Eco-friendly products are gaining power as the consumers' awareness about environmental issues has increased [4]
over the years and they are conscious about choosing products that do not have adverse effects on the
environment. They are now more conscious about the carbon
emission and climate change effects and want themselves to be 'seen' as a green advocate among their peers. In
such a scenario, it has become a challenge for the companies as they have to not only meet the needs of the
consumers but also ensure that their products are safe and environment-friendly. As a result, there is a growing
need for better and advanced technologies to works as a catalyst in this regard.
a. Identify the relevant feature of the business environment being discussed above.
b. Describe briefly any three points which highlight the importance of the business environment and its
understanding by managers.

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