term: i (2021-22)

TERM: I (2021-22)

CHIEF PATRON: DR. JAIDEEP DAS

Deputy Commissioner, KVS RO Ahmedabad

PATRON: MS. SHRUTI BHARGAVA

Assistant Commissioner, KVS RO Ahmedabad

CONVENOR: MR. RAJESH TRIVEDI

Principal, KV NO 2 Army Cantt Bhuj

CO-ORDINATOR: MR. ARUN SHARMA Principal, KV AFS Naliya

CONTENT TEAM

Mr. Prasant Vadodkar, KV No. 2 EME, Baroda.

Ms. Sunita D Marker, KV Ichhanath, Surat.

Mr. Mukesh Kumar Parmar, KV No.1 Harni Road, Baroda.

Mr. Dinesh Kumar, KV Silvassa.

COMPILATION

Mr. Patidar Naresh Kumar, KV Sabarmati, Ahmedabad.

Term I: QP Design for 2021-22

Stipulated:

For Classes XII (TERM I)

• Duration of each Paper to be of 90 minutes

• All questions to be MCQ with 4 options

• Case based questions to be included (Minimum 10% in class XII)

• Competency based questions to be included (Minimum 20% in class XII)

• No negative marking

• Reading time of 10 minutes to be provided

Question Paper Design

Duration: 90 minutes

Sections Domains Questions

given Questions to be attempted

Format of questions

Section A Knowledge +

Understanding

20 + 4 questions

20 Simple MCQ

Section B

Application

and Other higher order thinking

(analysis/ synthesis/ evaluation)

20 + 4

questions

20

Simple MCQ +

Complex MCQ +

Assertion - Reasoning

Section C

Case-based/ data-based question (Understanding/ application/ other higher order thinking skills)

10 + 2 question

s

10

All types

TOTAL 60 questions 50 questions

• 20% choice in in different sections

• 10% case-based questions to be incorporated in Sec C.

INDEX

UNIT NAME OF THE CHAPTER TOPIC PAGE NO.

1 Nature and Significance of

Management

*Multiple choice questions

*Assertion reasoning questions

*Case based questions

*Answer key

1-6

2 Principles of Management 7-13

3 Business Environment 14-22

4 Planning 23-31

5 Organising 32-43

6 Marketing 44-55

7. Sample question paper

issued by CBSE

Question Paper 1-16

Answer Key

1

CH.1 Nature & Significance of Management

Q.1 Management aims at unifying the efforts of all individuals & groups working in the

organization. Which aspect of management is referred to in the aforesaid statement?

A. Co-operation B. Coordination

C Synchronization D Harmonization

Q.2 Management means management of:-

A. Work B. People

C. Operations D. All the three

Q.3.Management aims at achieving ______ goals.

A Social B Personal

C Organizational D All the three

Q.4 Management helps in the development of ___________

A. Society. B. Employees

C. Organization D All the three

Q.5 Management is not a perfect science like physics but more of a _____

A. Social science. B. Applied science

C. Profession D. Art

Q.6.After doing MBA from IIM (A) your brother has been appointed as Vice President in a

MNC.

The functions he must be performing are:

1. Coordination 2.Planning & Policy formulation

3. Supervision of workers 4.Decision making

A) 1 & 2 above B) 2 & 3 above

C) 3 & 4 above D) 2 & 4 above

Q.7 Coordination is not required equally at all the levels of management.

A. It is required more at the Top-level B. Required more at Middle level

C. Required more at Lower level D. Required more at Top & Lower level

Q.8. A Production manager achieves the target of 5000 units set for his department but

spends Rs.55 Lakhs in place of Rs.50 Lakhs. He is :

A. Effective but not efficient B. Efficient but not effective

C. Is both Efficient & Effective D. Neither efficient nor effective

2

Q.9 Managing the affairs of the co. merely one time is not enough. Which feature of

management is referred in the above line? Management is:

A. Continuous process. B. Pervasive

C. Futuristic D. Goal oriented

Q.10. Management is not a fully developed profession, Reason is:

A. Lack of Code of Conduct B. Professional degree is not compulsory

C. Lack of Apex Licensing authority D. All of them

Q.11. Co-ordination ----

A. Integrates group efforts B. Is a deliberate function

C. The essence of management. D. All of the above

Q.12. Rajat is working as Executive Director in Excel industries. He is working at _______

level of management.

A) Top B) Middle

C) Lower D) None of above

Q.13. Management is:

A) An art B) A science

C) A profession D) Have the features of all above

Q.14. “Management is what management does” Which feature is referred from the above

statement?

A. Intangible force B. Goal oriented

C. Futuristic D. Continuous

Q.15. Management is taught as a specialized subject in reputed institutes such as IIM.

Which feature of management is inferred from the said statement? That Management is -

A. Science B. Art

C. Profession D. None of the above

Q.16 Which level of management from the following is involved in preparing organizational

strategies?

A) Top B. Middle

C. Lower D. None of them

Q.17 Directing & Controlling are the two important functions performed by the operational

level management,

A. True, because they guide, motivate & control the workers

B. False, as they merely give the feedback to the middle management

C. False, as they are busy in reporting about the daily performance

3

D. False, as they merely observe the workers while they perform duties.

Q.18. Management is required in:

A. Only business organizations B. All types of Organizations

C. Only Educational institutions D. Only Cultural organizations

Q.19. Middle level managers do not perform the following function:

A. Policy making B. Decision making

C. Goal setting D. All of them

Q.20. Management –

A. Helps in achieving goals B. Increases efficiency

C. Increases effectiveness D. All of the above

Q.21.Does management focuses on efficiency or effectiveness?

A) Efficiency B) Effectiveness

C ) Both D) None

Q.22. Application of the knowledge learned is a feature of

A. Management as an Art B. Management as a science

C. Management is a profession D. None of the above

Q.23. Which of the following is not a function of management?

A) Planning B) Staffing

C) Cooperating D) Controlling

Q.24. Management is the process of:

A. Getting things done B. Achieving goals

C) Managing people D) All above

Q.25. Management as an art requires:

1) Application of the learned knowledge

2) Personal skills which differ from person to person

3) Specialized knowledge

4) All the above

A) 1 & 2 above B) 2 & 3

C) 1 & 3 D) All the above

Q. 26 Assertion ( A) : Management as an art & science complement each other & are not

mutually exclusive.

Reason (R) : Managers work better if its practices are based on principles of

management. Find the correct option:

4

A Both A & R are true R is not the correct explanation of A

B Both A & R are true & R is the correct explanation of A

C A is true but R is false

D A is false but R is true

Q.27. Assertion: Management is required in all types of organizations.

Reason: Management is all pervasive

A. A & R both are true B. A is true but R is false

C. R is true but A is false D. A & R both are false

Q.28. Management is neither an Art or Science nor Profession but a fusion of all the three.

Assertion: The above statement is true

Reason: As it has a few features of all the three above.

A. Only the Assertion is true B. Only the Reason is true

C. Both Assertion & Reason are true. D. Both Assertion & Reason False

Q.29. The plans of ABC Ltd. failed as there was no Coordination between the Production,

Marketing, Finance & HR Manager.

Assertion : The success of management depends on Coordination.

Reason : Management is a group activity & there is a need to harmonize the efforts of all.

A. Both A & R are correct B. Both A & R are wrong

C. Only A is correct & R is incorrect D. Only R is correct & A is incorrect.

Q.30. Assertion: The Economic, Social, & personal objectives of an organization are

complementary.

Reason: The harmony of all three objectives helps to achieve success.

A. Both A & R are Correct B. Only A is correct

C. Only R is correct D. Both A & R are incorrect.

Q.31. Master Rishabh a class 12th commerce is confused about which of the following

does not fall under the Top level Management? Kindly mark the correct option to guide

him.

A. Director B. President

C. Vice president D. Accounts Manager

Q.32. A chartered Accountant Mr. Rakesh argues that management is a fully developed

profession whereas Mr. Rishit a Management consultant argue that Management is not a

fully developed profession like Law, Medicine etc. The correct option is:

A. Rakesh is correct & Rishit is wrong B. Both are incorrect

C. Rishit is Correct & Rakesh is false D. Both are correct.

5

Q.33. Planning, Organising, Staffing, Directing & Controlling are the functions but

coordination is not a function of management as it the essence of management.

A. Above statement is Correct B. Above statement is incorrect

C. Above statement is partially Correct D. Coordination is a function

Q.34. Tata Motors Ltd. a leading Brand in Automobiles & Truck manufacturing is facing

some conflict issues between the between the top level & middle level management. Both

the levels argue that their level of management is responsible for coordination. Secondly

the Vice president Plant operations & the purchase Manager have not consulted each

other resulting in shortage of raw material.

Which level of management’s argument is correct?

A. Top level is correct B. Middle level is correct

C. Both are correct D. Both are incorrect

Q.35. What is lacking between the two levels of management in above case?

A. Cooperation B. Co-ordination

C. Trust D. All the three

Q.36. KVS an established Educational Organization comes in the top 10 Educational

Brands in India. It provides equal opportunity to the male as well as female employees to

progress in the organization, In doing so Kendriya Vidyalaya Sangathan is pursuing which

objective?

A. Organizational B. Social

C. Personal D. All the objectives

Q.37. Ms. Hina set up a unit under the Start - Up India Program. She used all the

knowledge she had learned in Business Studies in her school and college days. She

created a strong team which is entirely committed & helps work in an innovative way

resulting in building an efficient & effective organization. The unit launches different

products every year to stay ahead in the competition.

Which importance of management is highlighted in the given case?

a. Increases efficiency & Effectiveness

b. Helps achieve personal goals

A. Only option a B. Only option b

C. Both a & b D. Neither a nor b

Q.38. Which feature of management is highlighted in the above case?

A. Dynamic B. Goal oriented

C. Pervasive D. Intangible

6

ANSWER:

Q. N. ANS Q. N. ANS Q. N. ANS Q. N. ANS

1 B 11 D 21 C 31 D

2 D 12 A 22 A 32 C

3 D 13 D 23 C 33 A

4 D 14 A 24 D 34 B

5 A 15 C 25 D 35 B

6 D 16 A 26 B 36 D

7 B 17 A 27 A 37 A

8 A 18 B 28 C 38 A

9 A 19 D 29 A

10 D 20 D 30 A

7

CH.2 Principles of Management

Q.1 Mr. Mannpreet Brar - the Administrative Manager of Lakahani Jwellers neither gives a

forethought nor applies logic before distributing the work properly among his subordinates.

This results in duplication of work & wastage of time efforts & money.

Which principles are violated here?

1. Scalar chain

2.Division of Work

3. Harmony

4.Rule of Thumb

A) 1 & 2 B) 2 & 3

C) 2 & 4 D) 1 & 3

Q.2. What will be the ill effect if the Principle of Parity of Authority & Responsibility is violated?

a. Misuse of Power by superior b. Conflict between superiors

A) both a & b of the above B) none of above

C) only a D) only b

Q.3. You have learnt the principles of management in Business Studies, yet your belongings

such as books, clothes, stationery, notebooks etc. are never kept at proper place in-spite of

having study table & Almirah in your room. Which of the following principle is not being

followed by you?

A. Scalar chain B. Harmony

C. Order D. Discipline

Q.4. Keeping in view the need of the hour, companies like Mahindra & Mahindra Automobiles

Ltd. as well as Tata Motors have invested heavily in Design Development & manufacturing of

Electric Cars.

Which objective of management is highlighted in the aforesaid statement?

a) Organizational b) Personnel c) Social d) None of them

A. a & b above B. a & c above

C. c & d above D. a & d above

Q.5. Principle of equity means:

A. Equal pay to all

B. No discrimination among employees

C. Equal working hours for all

D. Equal perks to all

Q.6. The technique of Standardization & Simplification was advocated by

8

A. Fayol B. Taylor

C. P.F Drucker D. Warren Buffet

Q.7. Functional Foremanship is an exception to the principle of:

A. Scalar chain B. Unity of Direction

C. Unity of command D. Discipline

Q.8. It is not compulsory to follow the principles of management.

A. True as they are mere guidelines B. They are compulsorily to be followed

C. They don’t offer readymade solutions D. They are rigid & can’t be changed.

Q.9. Taylor is known as the father of:

A) General Management B) Scientific management

C. Applied management D. Practical management

Q.10. Mr. John the Manager is more liberal towards the female employees whereas he is very

strict with male employees. Which principle is he violating?

A. Scalar chain B. Equity

C. Division of work D. Order

Q.11. _________ seeks to determine the time n frequency of rest interval in doing a task.

A. Time study B. Method study

C. Motion study D. Fatigue study

Q.12. A manager punishes his subordinates for willfully disobeying a legitimate order but only

after giving opportunity to the subordinate to put up explanation. Which principle is highlighted

above?

A. Discipline B. Equity

C. Stability of tenure D. Scalar chain

Q.13. The objective of method study is to:

A. Find out one best way of doing the job

B. Minimize the cost

C. Maximize the satisfaction of the customer

D. All the above

Q.14. The objective of time study is to:

A. Measure the standard time required for each job

B. Determine the no of workers to be employed

C. Both the above

D. None of the above

9

Q.15. Which of the following is a cause of fatigue?

A. Poor lighting B. Poor ventilation

C. Both a & b D. None of the above

16. Match the following options in the columns below:

1. Differential piece wage plan a. No discrimination

2. Mental Revolution b. Change in attitude towards each other

3. Scalar chain c. Efficiency based remuneration system

4. Equity d. Heirarchy based Authority &

Responsibility structure

A. 1 & c, 2 & b, 3 & d, 4 & a. B.. 2 & b, 1 & d, 3 & a, 4 & c

C. 1 & b, 2 & c, 3 & a, 4 & d D. 1 & d, 2 & a, 3 & b, 4 & c

Q.17. Name the principle which is the backbone & mainstay of a Military organization:

A. Unity of Direction B. Discipline

C. Division of work D. Order

Q.18. One head & one plan is the crux of which of the following principle?

A. Unity of command B. Unity of Direction

C. Discipline D. Equity

Q.19. The principle highlighting management’s efforts to minimize employee turnover is:

A. Espirit de corps B. Stability of tenure

C. Initiative D. Equity

Q.20. Gang plank advocated by Fayol, highlight which feature of management principles?

A. Flexible B. Behavioral

C. Contingent D. General guidelines

Q.21. Availability of Suggestion box indicates that the co. is following the principle of:

A. Initiative B. Espirit de corps

C. Order D. Discipline

Q.22. As per which principle - a manager should replace “I” with “We”.

A. Discipline B. Espirit de corps

C. Initiative D. Subordination of Individual interest

Q.23. The Principle of Espirit de corps was advocated by ________

A. Taylor B. Fayol

C. Shiv Kheda D. Peter F. Drucker

10

Q.24. Rishabh a manager often speaks to people at all levels, passing on orders of his

department as well as other departments. Which principle is he overlooking?

A. Initiative B. Discipline

C. Equity D. Scalar chain

25. Aditya Ltd. exploits its workers & does not pay them wages according to law. Which

principle is the co. violating?

A. Equity B. Order

C. Harmony not discord D. Fair Remuneration

Q.26. “Successful people do not do different things, but they do things differently” similarly

successful co.’s do their business differently.

Assertion: Instead of doing the things as are being done traditionally, applying logic &

scientific enquiry, organizations can become successful.

Reason: Logical decisions tend to produce better results.

A. A is correct but R is false B. R is correct but A is false

C. Both A & R are correct D. A is correct & R is the Justification of A

Q.27. Mr. Vergeese Kurian known as the father of “White Revolution” established GCMMF &

“AMUL” Brand. He run it on the principles of management & in an ethical manner, no wonder it

has now become a Rs.40000 Crore co-operative organization.

Assertion : If any organization is run ethically & on the principles of management it can not

only attain its organizational goals but also the goal of development of society & contribute to

social welfare.

Reason : As it is run ethically & on the well-established principles of management any

organization is bound to succeed & grow. Find the correct option:

A. A is correct but R is false B. R is correct but A is false

C. Both A & R are correct D. Both A & R are false

Q.28. Assertion: The principles of Harmony not discord & concept of Mental Revolution

though appear to be different yet they do convey similar meaning.

Reasoning: The essence of both is the underlying spirit of mutual co-operation.

A. Both A & R are correct B. Both are incorrect

C.A is correct but R is false D. R is correct but A is false

Q.29. Assertion: Though Taylor’s focus was from the viewpoint of improving workers

efficiency & that of Fayol’s from improving mangers efficiency yet both are complementary to

each other contributing to overall improvement of the organization.

Reason: Both are like two sides of the same coin.

Find the correct option:

A. Both are correct B. Both are incorrect

C. A is correct but R is false D. R is correct but A is false

11

Q.30. Assertion: Recent performance of Indian Athletes in Paralympic has stressed the need

for promoting sports in India.

Reason: GOI has asked the corporates to spend 2% of their profits on CSR and especially for

the promotion of Sports.

A. Both A & R are incorrect B. A is true but R is incorrect

C. A is true & R is supportive of A D. R is true & A is supportive of R

CASE STUDY (Q.31 TO Q.34)

Coalgate India Ltd. has been selling it’s toothpastes in India since years. Recent competition

especially from Patanjali Aurveda Ltd, has made it think twice on it’s strategy & products. It has

been constantly innovating its products & have launched Brands like “Ved Shakti” to tackle the

losing market share to Patanjali’s brand “Dant kanti”.

Apart from this, the co. has taken other initiatives like launching consumer awareness drive,

enhancing its donations for promotion of sports under the guidelines of GOI on CSR spending.

The co. has also made new appointments at the Top-level management positions to tackle the

threats of stiff competition & employee poaching by competitor companies.

The co. realized the importance of managing all the three dimensions i.e. the work, people &

operations on a continual basis.

Q.31. Which objective is being pursued by Coalgate India Ltd.?

A Organizational B. Social

C. Personnel D. All the above

32. Coalgate India Ltd. is trying to make changes in which level of management?

A. Lower B. Middle

C. Top D. None of the above

33. Which feature of management is reflected in the above case?

A. Dynamic B. Pervasive

C. Group activity D. Intangible

34. Which dimensions of management are reflected in the given case?

A. Management of Manpower, Work & Operations

B. Management of Machines, Workforce & funds

C. Management of Money, Material & Operations

D. Management of Organization, Material & Money

12

CASE STUDY (Q.35 TO Q.38)

Ms.Kriti has set up a business under the Mahila Udyojika Program of GOI. She wisely made

use of most of the principles of Fayol & Taylor in her co. She created a strong team & divided

the work in most scientific way. She personally ensured that the proper balance is maintained

between authority granted & responsibility fixed.

In order to facilitate hassle free work she promoted dispersal of authority at levels of

management across the co.

As a result the spirit of team work as well as cooperation not individualism prevailed in the co.

leading to stupendous success.

Q.35 Which importance of management is highlighted in the given case?

a. Increases efficiency & Effectiveness b. Helps achieve personal goals

A. Only option a B. Only option b

C. Both a & b D. Neither a nor b

Q.36. Which principles of Fayol are highlighted in the above case?

A. Division of Work & Authority & Responsibility B.

Division of Work & Authority & Responsibility, Centralisation & Espirit de corps

C. Order, Scalar chain & Equity

D. Fair remuneration

Q.37. Which principle of Taylor is also highlighted in the above case?

A. Rule of Thumb B. Harmony not Discord

C. Cooperation not individualism D. Development of full potential

Q.38. The meaning of principle of Espirit de corps is quite similar to the principle of

A. Unity of Direction B. Subordination of individual interest

C. Harmony not discord D. All the three above

13

ANSWER:


1 C 11 D 21 A 31 D

2 A 12 B 22 D 32 C

3 C 13 A 23 B 33 A

4 B 14 C 24 D 34 A

5 B 15 C 25 D 35 C

6 B 16 A 26 D 36 B

7 C 17 B 27 C 37 C

8 A 18 B 28 A 38 D

9 B 19 B 29 A

10 B 20 A 30 C

14

CH. 3 BUSINESS ENVIRONMENT

1. Demand for Sari may be fairly high in India, whereas it may be almost non-exist in

France. Which characteristics of Business environment are referred here?

(a) Dynamic (b) Inter-relatedness

(c) Complexity (d) Relativity

2. Since business environment consist of numerous interrelated and dynamic conditions or

forces which arise from different sources it becomes difficult to comprehend at once what

exactly constitute a given environment. The characteristics of business environment

highlighted here is

(a) Relativity (b) Complexity

(c) Uncertainty (d) Totality

3. Business environment is keeps on changing whether in terms of technological

improvement, shift in consumer preference or entry of new competitors in the market.

Which characteristics of business environment referred here?

(a) Dynamic (b) Relativity

(c) Uncertainty (d) Complexity

4. Business Environment includes

(a) Specific forces (b) General forces

(c) Both Specific and General (d) None of these

5. Business environment is very difficult to predict future happenings, especially when

environmental changes taking place too frequently. The feature of Business environment

referred here is

(a) Dynamic (b) Relativity

(c) Uncertainty (d) Complexity

6. Which of the following does not characterize the business environment?

(a) Uncertainty (b) Employees

(c) Relativity (d) Complexity

15

7. Which of the following best indicate the importance of business environment?

(a) Identification (b) Improvement in performance

(c) Coping with rapid changes (d) All of these

8. Which of the following is an example of social environment?

(a) Money supply in the economy (b) Consumer Protection Act

(c) The Constitution of the country (d) Composition of family

9. Which environment describes characteristics of society in which the organization exist

(a) Economic environment (b) Social environment

(c) Political environment (d) Legal environment

10. Many multinational food chains such as KFC, Mc Donald’s, Domino’s etc. have altered

their menu according to Indian taste and culture. Name the dimension of business

environment which is responsible for this step.

(a) Economic environment (b) Social Environment

(c) Technological environment (d) Legal environment

11. Just after declaration of Lok Sabha Election 2009 results, the Bombay Stock

Exchange’s price index rose by 2100 points in a day. Identify the environmental factor

which led to this rise.

(a) Economic (b) Political

(c) Social (d) Legal

12. It means integrating economy of a country with world’s economy to facilitate the free

flow of trade, capital, person, and technology across borders.

(a) Liberalization (b) Privatization

(c) Globalization (d) None of these

13. It means liberating Indian business and industry from all unnecessary government

controls and restrictions

(a) Liberalisation (b) Privatisation

(c) Globalisation (d) None of these

16

14. It means giving greater role to the private sector in the nation-building process and

drastically reducing the role of the public sector

(a) Liberalisation (b) Privatisation

(c) Globalisation (d) None of these

15. How many times, India has faced Demonetization so far

(a) 2 (b) 3 (c) 4 (d) 5

16. Assertion (A) Entry of new firms in the market may make an enterprise think afresh

about how to deal with the situations

Reason (R) Business environment assist in planning and policy formulation.

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

(b) Both Assertion (A) and Reason (R) are true but reason (R) is not the correct explanation

of Assertion (A)

(c) Assertion (A) is true but Reason (R) is false

(d) Assertion (A) is false but Reason (R) is true

17. Assertion (A) Demand for sarees may be fairly high in India whereas it may be almost

non existent in America. Reason

(R) Business environment consists of numerous inter-related and dynamic conditions of

forces which arise from different sources.



of Assertion (A)



18. Assertion (A) Turbulent market conditions, less brand loyalty, Kodivision and

subdivision of market are just a few of the images to describe business environment.

Reason

(R) Business environment is getting dynamic where changes are taking place at a slow

pace.

17



of Assertion (A)



19. .Assertion (A) Manufacturers have now flexible manufacturing systems.

Reason (R) Agricultural and industrial production trends are the economic dimensions of

the environment which affect the business environment.



of Assertion (A)



20. Assertion (A) Reservation of jobs for backward classes as per the constitution of India

affects the business environment. Reason

(R) Various elements of legal dimensions affect the business environment.



of Assertion (A)



21. Which dimension of business environment is concerned with improvement and

innovations, which provides new ways of producing goods and services?

(a) Economic (b) Political (c) Technological (d) Social

22. The court issued the order that it is essential for the vehicles to be smokeless and that

any one violating this order shall have to pay fine. Identify the dimension of business

environment.

(a) Economic (b) Political (c) Social (d) Legal

18

23. Online reservation of railway ticket is an example for which types of dimension of

business environment.

(a) Economic (b) Political (c) Social (d) Technological

24. The sale of greeting cards, sweets, chocolate, etc. increases in India during Diwali.

Name the dimension of environment related to this.


25. The Finance Minister reduced the repo rate to overcome recession. This is related to

which dimension of business environment.


26. If new products are introduced in market by new technique, which type of environment

is indicated by it.


27. Under which environment does change in taste, fashion and trend falls in.


28. Liberalization means

(a) Reducing number of reserved industries from 17 to 8

(b) Liberating the industry, trade and economy from unwanted restrictions

(c) Opening up of economy to the world by attaining international competitiveness

(d) Free determination of interest rates

29. Bank reduces the interest rate on house loans. Identify the type of dimension of

environment

(a) Economic (b)Political (c) Social (d) Technological

30. The court passed an order that all schools must have water purifier for the school

children

(a) Economic (b) Political (c) Social (d) legal

19

31. Life expectancy, Birth and death rates, population shifts, consumption habits etc. are the

elements of

(a) Economic (b) Political (c) Social (d) legal

32. This dimension of environment includes such factors as interest rates, inflation rates,

and changes in disposable income of people, stock market indexes and the value of rupee.

(a) Economic (b)Political (c) Social (d) legal

33. Legal environment includes

(a) Various Laws and Legislative Act

(b) Administrative order issued by government authorities

(c) Court judgments

(d) All of these

34. It includes forces related to scientific improvements and innovations which provides new

ways of producing goods and services and new ways of operating business.

(a) Economic (b)Technological (c) Social (d) legal

35. Excel Publishers, a book publishing house published books on various subjects based

on new CBSE question pattern before any other publishing house could print it. The

importance of business environment mentioned here is:

(a) First mover advantage

(b) Early warning signal

(c) Tapping useful recourses

(d) coping with rapid changes

36. As a foreign tourist visited India, he noticed that Indian markets, tastes, trends and

regulations are different from that of his country. Which feature of business environment is

reflected here:

(a) Relativity (b) Complexity (c) Uncertainty (d) Totality

37. Demand for LED TVs are increasing day-by-day. Thus, TV manufacturers have started

making LED TV’s instead of LCD. Significance of business environment given in this case

is.

(a) First mover advantage

20

(b) Early warning signal



38. Maruti Udyog Ltd. becomes the leader in the market of small car segment. The

Significance of business environment highlighted here is.

(a)Identify opportunities and getting first mover advantage

(b) Identify the threat and early warning signal



39. Technology is improving day-by-day. Which feature of business environment is

highlighted in the given statement?

(a) Relativity (b) Complexity (c) dynamic (d) Totality

40. “Equal pay for equal work” is an example of which dimension of business environment.

a) Economic (b)Political (c) Social (d) legal

CASE STUDY (Q.41 TO 44)

Read the following text and answer the following questions on the basis of the same:

The name and taste of Coca-Cola is known to almost each and every individual in India as

well as throughout the world. This carbonated soft drink holds the most market share in the

soft drink market and got itself a special seat in each and every gathering. The Coca-Cola

Company has on occasion introduced other cola drinks under the Coke name. The most

common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet

Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the

list goes on. It has capitalized on each and every opportunity to market itself effectively and

place itself in the middle of every gathering. The main reason for such an outstanding

placement of product goes to the way they have established the connection between every

occasion and the need for Coke to be present there, product design and creative

advertising.

41. in the context of the above given case, identify one valid importance of Business

Environment.

21

a) Enables a firm to identify opportunities and getting first mover advantage

b) Uncertainty

c) Delay in action

d) Pervasive function

42. Identify the feature of Business Environment which The Coca-Cola Company managed

to get in their favour.

a) Complex

b) Specific and general forces

c) Futuristic

d) Mental Exercise

43. Which business environment did Coca-Cola majorly tap into?

a) Technological Environment

b) Social Environment

c) Political Environment

d) Economic Environment

44. Which of the following is not a product of COCA-COLA?

a) Diet Coke Caffeine free

b) Coca-Cola Zero Sugar

c) Coca-Cola Avocado

d) Coca-Cola Cherry

22

ANSWERS:


1 D 11 B 21 C 31 C

2 B 12 C 22 D 32 A

3 A 13 A 23 D 33 B

4 C 14 B 24 C 34 D

5 C 15 B 25 A 35 A

6 B 16 A 26 D 36 A

7 D 17 B 27 C 37 D

8 D 18 C 28 B 38 A

9 B 19 B 29 A 39 C

10 B 20 B 30 D 40 C

41 A

42 A

43 B

44 C

23

CH. 4 PLANNING

1. Planning is ________

(a) Flexible (b) Stable

(c) Rigid (d) None of these

2. Planning is the ________ function of management.

(a) First (b) Second

(c) Third (d) Fourth

3. ________ is the essence of Planning.

(a) Organizing (b) Controlling

(c) Forecasting (d) Directing

4. Planning results in decreasing ________

(a) Coordination (b) Proper use of resource

(c) Future uncertainties (d) Control

5. Name the function of management which involves setting objectives and developing

appropriate courses of action to achieve these objectives.

(a) Directing (b) Organizing

(c) Planning (d) Staffing

6. What out of the following is the example of objective?

(a) Raising sales up to ™5000 crore (b) Giving employment to 1000 people

(c) Raising income by 3% (d) All of these

7. “The basis of promotion of employees will be age.” With which policy is this statement

related?

(a) Personnel (b) Sale

(c) Pricing (d) None of these

24

8. Which out of the following policies will you recommend?

(a) Strict (b) Lenient

(c) Both (a) and (b) (d) None of these

9. Which of the following is not a benefit of planning?

(a) Planning reduces overlapping and wasteful activities.

(b) Planning is a mental exercise.

(c) Planning provides directions.

(d) Planning reduces the risks of uncertainty.

10. “Which of the following statements is not true with reference to planning?

(a) Planning is a pre-requisite for controlling.

(b) Planning does not lead to rigidity.

(c) Planning enables a manager to look ahead and anticipate changes.

(d) Planning facilitates co-ordination among departments and individuals in the

organisation.

11. All other managerial functions are performed within the framework of the plans drawn.

Identify the related feature of planning.

(a) Planning focuses on achieving objectives.

(b) Planning is pervasive.

(c) Planning is futuristic.

(d) Planning is primary function of management.

12. Which of the following is not the internal element of limitation of Planning?

(a) Capital (b) Raw material

(c) Increase in population (d) Machine

13. What resources are specially kept in view in planning?

(a) Limited (b) Unlimited

(c) Both (a) and (b) (d) None of these

25

14. At what managerial level planning is needed?

(a) Top level (b) Middle level

(c) Lower level (d) All the levels

15. When can the planning process be ignored?

(a) In ordinary situation (b) In case of emergency

(c) Both the above (d) in no situation

16. Planning of different departments is ________

(a) Independent (b) Individual

(c) Mutually dependent (d) none of these

17. Identify the correct sequence of steps involved in the planning process.

(a) Evaluating alternative courses, Identifying alternative course of actions, Setting

objectives, Developing premises

(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative

courses, Developing premises

(c) Setting objectives, Developing premises, Identifying alternative course of actions,

Evaluating alternative courses

(d) Setting objectives, Developing premises, Identifying alternative course of actions,

Evaluating alternative courses

18. Which one of the following is not a step of planning?

(a) To forecast (b) Establishing objectives

(c) Valuation of objectives (d) Induction of employees on the job

19. Planning seeks to bridge the gap between---------

(a) Past and present position

(b) Past and future position

(c) Present and future position

(d) None of above

26

20. Planning is helpful in increasing ________

(a) Cost (b) Loss

(c) Efficiency (d) None of these


Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture

into agriculture, for this purpose she set out specific goals, objectives.Everything was a

challenge because she was not aware about farming. She learned every activity and, in the

process, thought of assisting other farmers as well. She eventually launched her own

company Agro limited.She wanted to be sure that the activities effectively met the best

interest of the company and the farmers.Hence, she prepared an annual plan for

production, sales and marketing, through sales forecasting she’ll I realized that farmers

were growing only one or two crops. On account of this the land remained idle for the rest

of the year. she identified and evaluated different alternatives through which the farms

could be utilized throughout the year.She used her foresight and systematic thinking,based

on analysis of all fixed analysis of all the facts and examined and evaluated all the

alternatives. She presented a plan to the Farmers Union, where after harvesting the

primary crops, seasonal vegetables and foods could be grown.

21. Hence she prepared an annual plan for production sales and marketing through sales

forecasting. Which feature of planning is depicted in this statement?

(a) Planning is continuous

(a) Planning is futuristic

(c) Planning involves decision-making

(d) Planning is a mental exercise

22. For this purpose she set out specific goals objectives and activities which feature of

planning is depicted in this statement?

(a) Planning focuses on achieving objectives

(b) Planning is a primary function of management

(c) Planning involves decision-making


27

23. Thus, she identified and evaluated different alternatives through which the farms could

be utilized throughout the year. Which feature of planning is depicted here?

(a) Planning is pervasive

(b) Planning is continuous

(c) Planning his futuristic

(d) Planning involves decision-making

24. She used her foresight and logical and systematic thinking based on analysis of all

facts and examined and evaluated all the alternatives. which feature of planning is depicted

here?

(a) Planning focuses on achieving objectives

(b) Planning is a primary function of management

(c) Planning is mental exercise

(d) Planning involves decision-making

25. Generally, it is thought that planning is related to the planning cycle. It means that a

plan is framed, it is implemented and it is followed by another plan and so on. The above

statement is related to a feature of planning, identify it.

(a) Planning is continuous.

(b) Planning is futuristic.

(c) Planning involves decision making.

(d) Planning is pervasive.

CASE STUDY (Q. 26 TO 28)

Sukumar is an energetic middle level manager. He tries to make best plans. For this

he involves foresight and intelligent imagination. Within three years many of his projects

have been very successful. His high success rate is due to his good plans. He always

makes alternative plans and selects the best out of them after considering relevant aspects.

However, he knows it is not necessary that his all plans will be successful. He knows that

sometimes his concern for making very good plans eats a lot of time and energy. His friend

Jyoti suggests him to take suggestions from others when he makes his plans and also

consider plans made by others. Even after so much painstaking Sukumar knows that his

plans can yet fail in the uncertain business environment. He has recently decided to plan

28

carefully in future.

26) According to this case planning is mental exercise?

(a) True (b) false

(c) Partial true (d) partial false

27) Can planning give guarantee for success?

(a) True (b) false


28) Which one is primary function of management?

(a) Planning

(b) Organizing

(c) Controlling

(d) Directing

29. Managers when plan, organize, lead and control are called decision makers.

(a) True (b) false


30. Which of the following is an assumption of rationality to rationale decision making?

(a) Preference is clear

(b) Final choice will maximize pay off

(c) The problem is clear and unambiguous

(d) all of the above

31. Making decision on the basis of experiences, feelings and accumulated judgment is call

as:

(a) Decision making

(b) Structural problem

(c) Intuitive decision making

(d) None of above

29

32. Availability bias is when decision makers tend to remember events that are most

recent.

(a) True

(b) False

(c) Partial true

(d) Partial false

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

(a) Reflective thinking

(b) Imagination

(c) Farsightedness

(d) all of these

34. Plan which is firstly discussed in business plan is mostly

(a) Marketing plan

(b) Financial plan

(c) Personnel plan

(d) Production plan

35. First step in planning process is to:

(a) setting and objectives

(b) Evaluate alternatives

(c) SWOT analysis

(d) None of above


Simplex limited had been taken over by Mundhra Group immediately following India’s

independence. Since then, it enjoys a rich record of industry presence and experience. In

2005, with the aim to accelerate growth the company had gone through several rounds of

meetings and discussions before launching ERP system to attract large projects. The

management had done effective forecast and critical thinking regarding allocation

resources to reduce wastage. For this purpose, the company had laid down multiple

30

courses of action to meet the challenge of adverse situations. In 2008, the company

suffered loss in many projects due to the great recession despite taking many cost cutting

measures. The management had taken utmost care regarding the possible outcome and

timely review of the plans to achieve the set target during that hard time. In 2010 the

system implemented successfully which subsequently helped the company to execute

numerous projects with precision and timeliness.

36. “In 2005, with the aim to accelerate growth the company had gone through several

rounds of Meetings and discussions.” What is the objective mentioned here according to

the process stated here?

a. Developing Premises b. Growth & development

c. Launching IT enabled system d. Cost cutting.

37. “In 2008, the company suffered loss in many projects due to the great recession despite

taking many cost cutting measures.” Which limitation of the management process is

indicated here?

a. It fails to cope with sudden changes b. It involves huge cost

c. It requires critical thinking d. Economic Environment

38 “The management had taken utmost care regarding the possible outcome and timely

review of the Plans to achieve the set target during that hard time.” Which is the last step of

the Process mentioned here?

a. Implementation of plan b. Timely execution of projects

c. Follow up d. To prepare alternative course of action

31

ANSWERS:


1 A 11 D 21 B 31 C

2 A 12 C 22 A 32 A

3 C 13 A 23 D 33 D

4 C 14 D 24 C 34 A

5 C 15 B 25 A 35 A

6 D 16 C 26 A 36 B

7 A 17 C 27 B 37 A

8 C 18 D 28 A 38 C

9 B 19 C 29 A

10 B 20 C 30 D

32

CHAPTER 5: ORGANISING

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

(A) Responsibility

(B) Authority

(C) Accountability

(D) All of the above

2 Which of the following is not a feature of formal organisation?

(A) It specifies the relationships among various job positions.

(B) The standards of behaviour of employees are evolved from group norms.

(C) It is deliberately designed by the top management.

(D) It places less emphasis on interpersonal relationships among the employees.

3 It arises from the established scalar chain which links the various job positions and

levels of an organisation.

(A) Authority

(B) Top to bottom

(C) All of the above

(D) None of the above

4 Which of the following is not a merit of functional structure?

(A) It promotes control and co-ordination within a department.

(B) It makes training of employees easier, as the focus is only on a limited range of

skills.

(C) It ensures that different products get due attention.

(D) It leads to occupational specialisation.

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

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

33

Identification and division of work

(B) Identification and division of work, Departmentalisation, Assignment of duties,

Establishing reporting relationships

(C) Identification and division of work, Assignment of duties, Departmentalisation,

Establishing reporting relationships

(D) Identification and division of work, Establishing reporting relationships,

Departmentalisation, Assignment of duties.

6 It refers to the number of subordinates that can be effectively managed by a

superior,

(A) Organisational structure

(B) Informal organisation

(C) Span of management


7 ‘ONIDA INDIA Ltd.’, is engaged in manufacturing of washing machines. The target

of the organisation is to manufacture 500 washing machines a day. There is an

occupational specialisation in the organisation which promotes efficiency of

employees. There is no duplication of efforts in such type of organisation structure.

Identify the type of organisation structure described above.

(A)Divisional Organisation

(B) Functional Organisation

(C) Informal Organisation


8 Under what function of management the relationship between different posts

(positions) is explained?

(A)Planning

(B) Communication

(C) Organisation

(D) Supervision

34

9 Which organisation resists changes?

A. Formal

B. Informal

C. Both (a) and (b)

D. None of these

10 In which situation the divisional structure happens to be appropriate?

A. Where the number of major products is more than one

B. Where the size of the organisation is quite large

C. Both (a) and (b)

D. Where primarily only one product is sold

11 Product specialisation helps in the development of skills.

A. True

B. False

C. Partially True

D. Partially False

12 Decetralization is an extension of delegation.

A. True

B. False

C. Partially True

D. Partially False

13 Delegation do not allows granting of authority to subordinate.

A. True

B. False

C. Partially True

D. Partially False

35

14 Organising never ensures the optimum utilization of resources.

A. True

B. False

C. Partially True

D. Partially False

15 As end result of organisation function, a structure gets created automatically.

A. True

B. False

C. Partially True

D. Partially False

16 Match the following (Q.no.16 – 20):-

(i) Organisational

structure

(a) number of subordinates that can be

managed by superiors

(ii) Span of management (b)Give shape to organizational structure

(c) framework within which tasks are

performed

A) i-b, ii-a

B) i-a, ii-c

C) i-c, ii-b

D) None of these

17

a. Delegation 1.lesser freedom to take own decision

b. Decentralization 2.greater freedom to take decision

3.no freedom

A) a-1, b-2

B) a-2, b-3

36

C) a-3, b-1

D) None of these

18

a. Delegation ensures 1.gossiping

2.Informal relationship

3.peace

4.ease in burden of managers

A) a-1,

B) a-2,

C) a-3,

D) a- 4

19

a. Formal organisazation

originates from

1. right of employees

b. Informal organization

originates from

2. top management

3.result of social interaction among

employee

A) a-1, b-2

B) a-2, b-3

C) a-3, b-1

D) None of these

37

20

a. Organising 1. Designing specific roles to eliminate

ambiguity.

b. Specialization 2. Assigning each task to employees on

the basis of skills.

3. Special person in organization.

A) a-1, b-2

B) a-2, b-3

C) a-3, b-1

D) None of these

21 Manohar was given a task by his superior to prepare a plan in 20 days. He asked

two of his subordinates to work upon two aspects of his task. One of the

subordinates met with an accident and could not complete his work. Who is

answerable for this task?

A. Manohar is accountable.

B. Manohar’s subordinate is responsible.

C. Manohar’s superior is responsible.

D. None of them is responsible.

22 Name the type of organisation which is deliberately design by top management to

achieve a common organisational objective.

A. Informal organisation

B. Corporate organisation

C. Formal organization

D. Non-corporate organisation

23 The form of organisation known for giving rise to rumors is called

A) Centralised organization

B) Decentralized organisation

38

C) Formal organization

D) Informal organization

24 Delegation of authority merely means the granting of authority to subordinates to

operate

A. Within the prescribed limits

B. Without any prescribed limits

C. To any extent

D. As per post approval of managers

25 For delegation to be effective it is essential that responsibility be accompanied with

necessary

A. authority

B. incentives

C. manpower

D. promotion

MCQ ON ASSERTION & REASONING TYPE QUESTIONS (Q. 26 TO 30)

26 Assertion(A): : Responsibility is derived from authority and accountability is derived

from responsibility.

Reason(R): Responsibility is the obligation of a subordinate to properly perform the

assigned duty, for which he/she has been delegated authority by his/her superior.

Once authority has been delegated and responsibility accepted, one cannot deny

accountability.

A. Both Assertion (A) and Reason (R) are true.

B. Both Assertion (A) and Reason (R) are false.

C. Assertion (A) is true and Reason (R) is false.

D. Assertion (A) is false and Reason (R) is true.

27 Assertion(A): Delegation does not mean abdication.

Reason(R): A manager is under obligation to perform the delegated task.


39




28 Assertion(A): While authority is delegated, responsibility is imposed, accountability

is assumed.

Reason(R): Authority can be delegated by a manager to a subordinate, which

means granting of authority to subordinate to operate within prescribed limits.

Responsibility is the obligation of a subordinate to properly perform the assigned

duty. Accountability implies being answerable for the final outcome.





29 Assertion(A): Delegation helps a manager to extend his area of operations as

without it, his activities would be restricted to only what he himself can do.

Reason(R): A manager, no matter how capable he is, cannot manage to do every

task on his own. The volume of work makes it impractical for him to handle it all by

himself.





30 Assertion(A): A large sized organization can be totally decentralized.

Reason(R): As an organization grows in size and complexity, there is tendency to

move towards decentralized decision making. Complete centralization would imply

concentration of all decision-making functions at the apex of the management

hierarchy.



40




Reliance Infocom has diversified itself into several product lines:

Telecommunications, Engineering, financial services

Each subsidiary is self-sufficient with their-own administrative functions, propagating

the belief that people assume the responsibility for the effective implementation of

their decisions and should be given autonomy. This has reduced the need for direct

supervision by superiors, has promoted flexibility, initiative and faster decision

making. The orders of customers are never delayed, as a result of good policy

decisions ot top management. The philosophy of the top management awards

greater autonomy to the lower levels of management.

31 Identify a suitable framework for the company within which the managerial and

operating task are to be performed.

(A) Functional structure

(B) Divisional structure

(C) Formal Organisation Structure

(D) Informal Organisationstructure

32 ldentify the philosophy of the top management highlighted in the above case: -

(A) Centralisation

(B) Decentralisation

(C) Delegation

(D) None of these

33 This has reduced the need for direct supervision by superiors, has promoted

flexibility, initiative and faster decision making." Identify the point of importance of

the philosophy of top management, as highlighted above.

(A) Develops initiative among subordinates

(B) Develops managerial talent for the future

41

(C) Relief to top management

(D) Better control

34 The philosophy of the top management awards greater autonomy to the lower levels of

management.

Identify the point of importance of the philosophy of top management, as highlighted

above.

(A) Quick decision making

(B) Better control

(C) Relief to top management

(D) Facilitates growth


Vinod Pathak, aged 49 is working in an aviation company. He is the senior-most

employee in his division. He is even senior to the division manager, Rajesh. Vinod

Pathak is considered one of the most committed, capable and hardworking

employees. As a result of his abilities and seniority, he generally received the work

assignments of his choice. Although there was no formal designation of various

special projects assigned to Vinod Pathak , he handled them as a matter of routine.

A problem developed when an able and intelligent person Nanakram, aged 33, was

appointed by Rajesh . Nanakram, previous three years experience in the closely

related work, made it possibie for him to catch on to the routine work of his new job

more rapidly than was customary for a new employee. On several occasions, Rajesh

noticed the tension developing between the two employees. However, he didn’t want

to get involved in their personal issues as long as the work was completed effectively

and efficiently by them. One day, the tension between them reached the boiling point

and Vinod Pathak complained to Rajesh stating that his duties were being largely

taken over by Nanakram . Rajesh issued the order stating the clear allocation of the

jobs and related duties between the two. He further clarified the working relationship

between them by specifying who was to report to whom. This helped in reducing the

workload, enhancing productivity and removing ambiguity.

42

35 Identify the function of management highlighted in the above case.

(A) Planning (B) Organising

(C) Staffing (D)Directing

36 Identify the step in the process of the function of management identified, which has

not been carried out properly and contributed to this problem.

(A) Identification and division of work

(B) Departmentalisation

(C) Assignment of ducies

(D) Establishing authority and reporting relationships

37 Identify the two step in the process of the function of management identified, which

have been taken by Rajesh to respond to the complaint of Vinod Pathak.

(A) Identification and division of work

(B) Departmentalisation

(C) Assignment of duties

(D) Establishing authority and reporting relationships

38 identify the point(s) of importance of the function of management identified, as

reflected in the above case.

(A) Clarity in working relationship

(B) Benefits of specialisation

(C) Effective administration

(D) All the above

43

ANSWERS:


1 A 11 A 21 A 31 B

2 B 12 A 22 A 32 B

3 A 13 B 23 D 33 C

4 C 14 B 24 A 34 D

5 B 15 A 25 A 35 B

6 C 16 A 26 A 36 C

7 B 17 A 27 C 37 C&D

8 C 18 D 28 D 38 D

9 B 19 B 29 A

10 C 20 A 30 D

44

CH. 11 MARKETING

1. Rohan, a young Indian always buys packaged products. Packaging is important.

According to you it helps in

A. Helps in grading B. Product differentiation

C. Rising standard of health and sanitation D. Both (B) and (C)

2. If you manufacture your products according to the requirement of customers, then that

may be a key to the success of your business unit.

A. Product concept B. Production concept

C. Selling concept D. Marketing concept

3. According to the modern marketing concept, which of the following statements is true?

(A) It refers to the group of people who do not have the ability but willingness to buy a

particular product.

(B) It refers to only the set of people who have the purchasing power to buy a

particular product

(C) It refers to the set of actual and potential buyers for a product

(D) It refers only to the people who show interest in a particular product.

4. Vijay is planning a start up a venture for spices grinding services at door step. He has

decided to charge Rs 10 per 500 gms. for soft ones & Rs 30 per 500 gms. For hard

ones. Identify the element of marketing mix which is not being described in the above

case.

(A) Product (B) Place (C) Price (D) None of the above

5. Sanjay purchased a bike of Bajaj India Ltd., ‘pulsar 180 cc’ in 2020. After six months

electric digital meter of the bike becomes dysfunctional. Sanjay faces a few problems

due to that. He makes Sandeep, friends of his know about this. Sandeep had also

purchased the same bike in 2019, which unfortunately met an accident and got

crashed. The bike was not insured, so he didn’t get that repaired as repairing cost was

a bit higher. That Scrap of Sandeep’s bike is out of use now. Yet, digital meter of the

same looks in good condition because it remained intact in that accident. Sandeep

45

suggested Sanjay to use that digital meter of his bike. Sanjay checks the same and

finds that it is in working condition and gets that fitted in his bike at slot concerned and

that meter shows all relevant information in digital form. Both friends became very

happy on this adventurous task of them.

Which function of marketing is highlighted there?

(A) Grading (B) standardization

(C) product design and development (D) branding

6. Registering a trademark gives this privilege to the owner:

(A) Finance (B) Fame (C) Protection (D) Information

7. Ajay sets up a small manufacturing unit for manufacturing eco-friendly packaging

material. She has decided to market her products through the conventional channel of

distribution, which involves wholesalers and retailers. Because they demand for their

commission, which is a part of selling cost; so he will have to increase the price of his

product by that extent. Ajanta Ltd. and Pargati Ltd. also manufacture the same type of

product and sell that @Rs.50 per unit. Ajay has to keep that in mind. Last year

government also circulated an order according to which, price of such products can’t

be more than Rs.55 per unit.

A few factors, which are kept in mind at the time of deciding price of a product may

have been considered by Ajay are following:

1. Profit maximization

2. Production cost

3. The utility and demand

4. Extent of competition in the market

5. Government and legal regulations

Here we see:

A. 2,3,4,5 are considered by Ajay

B. 2,3,4 are considered

C. 1,2,3,4 and 5 are considered

D. just 2, 4 and 5 are considered

8. One of my friend Mr Akshay said that Mahashay Dharampal , Ex. MD of MDH masala

would often appear in the advertisements of MDH masala when he was alive .

46

Because he himself was directly interacting with his customers by appealing them to

buy products of MDH, Akshay belived that it was a personal communication from the

side of MDH.

A. Whatever Akshay believes, is true

B. Is false

C. Neither true nor false

D. Partially true

9. Which of the following items cannot be marketed?

A. Swachh Bharat abhiyan

B. Candidates in election

C. Dinner with Mahendra Singh Dhoni

D. None of the above

10. Which of the following is not an advantage of branding?

A. Enables making product differentiation

B. Helps in advertising and display programs

C. Differential pricing

D. Provides Ease in distribution of products

11. Match the following and choose the correct alternative:

1. A name, term, sign, symbol, design or some combination of them

used to identify the products of one seller and to differentiate

them from those of the competitors

A. Trademark

2. The verbal component of a brand B. Brand mark

3. The part of a brand which can be recognised but which is not a

utterable C. Brand

4. A brand or part of a brand that is given legal protection D. Brand name

A. (1) - (C) , (2) - (D), (3) - (B), (4) - (A)

B. (1) -(A), (2) - (B) ,(3)- (C) , (4) – (D)

C. (1) - (B) , (2)- (A), (3)- (D), (4) – (C)

D. (1)- (D), (2) – (C), (3)- ( A), (4)- (B)

E.

47

12. Marketing continues after selling also.

A. True B. False C. Neither true nor false D. Partially false

13. In order to improve its competitive edge, Hindustan Unilever Ltd. has changed the

packaging of its hair care product named, “Indulekha”. Those ones are now available

in a consumer friendly design, which has a nozzle attached to the lid so that at the

time of usage, the consumer doesn’t need to open the cap of the bottle and has not to

oil hair by hand. Now customer has just to squeeze the oil bottle in hair for oiling,

which ensures minimum wastage of oil. Name the marketing function being explained

in the given lines.

(A) Product designing and development (B) Customer support services

(C) Promotion (D) Physical distribution

14. ................ is an extension of the marketing concept?

A. Production concept B. Selling concept

C. Product concept D. Societal marketing concept

15. Match the following on the basis of their feature by using the given options:

A. Advertising 1. Paid form

B. Personal selling 2. Provides direct feedback

3. Promotes good image among competitors

Choose the correct option

(A) A- 3, B- 1, (B) A- 2, B-1 (C) A-3, B- 2 (D) A-1, B-2

16. Choose the odd one out from the following:

A. Himalayan Ltd. Approaches and selects Neeraj chopra as their endorser for

promoting their products through ads and gets those ads telecasted on certain TV

channels.

B. Cipla Ltd. Sends their sales representatives to hospital for convincing doctars for

recommending their medicines.

C. Himalayan Ltd. Offers 30% discount to customers on protein powder in the month

48

of January

D. Wow care Ltd. Produces foam facewash with built in face brush, fixed on neck of

bottle of product; due to which one will not have to use his hands for rubbing that

foam on face.

17. Dinesh, A Fitness freak; who always be very cautious regarding choices he makes for

all edible products. He believes that health products which are available at cheaper

prices may be harmful for kidney and liver. From the very beginning he has been

purchasing health supplements like whey proteins , peanut butter from named

brands like ‘My protein', and ‘Muscle blaze’, which sell their products at much higher

prices in comparison with those of others. Which advantage or disadvantage of

branding from the viewpoint of a customer is highlighted there :

A. Status symbol B. Helps in product identification

C. Ensures quality D pricing of a product

18. In a government school chalk is used throughout the year. So, they purchase that in

bulk. Recently, they placed an online order for 200 chalk boxes. The boxes were

delivered to them in a corrugated box. Identify this level of packaging which facilitated

movement of the product.

(A) Primary package (B) Secondary packaging

(C) Transportation packaging (D) None of the above

19. Patanjali Ayurvedic Company manufactures and offers a number of shampoos in

different variants according to the need of one’s. They sell shampoos for thick hairs,

hair fall control, for dandruff, for ruff hairs and for a few more; which is marked on the

labels of the products. Which function of labelling is highlighted here:

A. Describe the product and specify its contents

B. Identification of the product or brand

C. Grading of products

D. Helps in promotion of products

20. During lockdown a few representatives of Tata Motors Ltd. were present at a few

selected railway stations for a number of months. They were offering free masks (on

which Tata motors was printed along with brand symbol of Tata) to those passengers

who were not equipped with masks. Those employees of Tata limited were

announcing regarding that free distribution of masks, throughout the day. A number of

passengers were taking masks from them as they did not bring their masks from

49

home or from shop due to any reason. Here this piece of work of Tata Ltd. Is :

A. Advertising B. Personal selling

C. Sales promotion D. Public relationship

21. Two fruit vendors A and B purchased fruits from same supplier at the beginning of the

day, which were available on that very day. They purchased articles of same type,

quantity, quality and at the same rate. But B is very talkative. He announces about,

glorify and endorses his products very loudly in the fruit market. His promotional and

marketing skills are very sound and aggressive; due to which people get attracted and

he sells all his fruits till 5:00 p.m. On the other hand, A is able to sell just 50 percent of

total purchase so far because he is very shy and formal in marketing of his products.

Which marketing concept is highlighted in the above case.

A. Product concept

B. Marketing concept

C. Selling concept

D. Production concept

22. In a village in Haryana, an illiterate old man goes to a retailer and says , ‘’bhai, koi ek

chota Colgate dena kam passy ka sasta saa.’’ (brother, please give me any small tube

of Colgate, available at cheaper price). Shopkeeper gives him a tube of ‘PATANJALI

DANT KANTI’ for Rs. 20. Then old man asks from shopkeeper, ‘’Ye kon si colgate h?’’

(which Colgate is this?). Shopkeeper smiles and says, ‘’Ye Patanjali wali hai, kaka.’’

(it’s of Patanjali , uncle). The old man takes that and says,’’Aaj kal to Colgate bhi bhut

si company ki aany lagi hai’’ (now these days Colgate is manufactured by a number of

companies.). He takes that article and departs. For that old man here ‘Colgate’ is:

A. A brand

B. A generic product name(toothpaste)

C. Patanjali

D. A cheaper article

23. Pargati refuses to buy a headphone for Rs. 2000 as she believes that real worth of this

product can never be that much. Identify the factor related to pricing decision being

discussed here :

A. Cost of the product

B. Government and legal regulations

C. The utility and demand

D. Pricing by competitors

50

24. Which of the following doesn’t start (starting point) from factory ?

A. Product concept

B. Production concept

C. Selling concept

D. Marketing concept

25. ‘’Providing information required by law’’ is a function of which component of product

mix ?

A. Packaging

B. Branding

C. Labelling

D. Legal environment

26. Assertion: Personal selling is a paid and impersonal form of communication.

Reason: Personal selling is one of the most important component and tool of

promotion mix

A. Assertion is true, reason is false

B. Assertion is false , reason is true

C. Assertion and reason both are true and reason explains assertion

D. Assertion and reason both are true but reason doesn’t explain assertion

27. Assertion: ‘Gathering and analyzing market information is the basic and primary

function of marketing in which manufacturer gets to know about choices of customers.

Reason: ‘Gathering and analyzing market information’ is based on information

received from another important function of marketing ‘customer support services”

through which customers share their desires and choices regarding quality of products.


B. Assertion is false , reason is true



28. Assertion: An old man, who had vision impairment, was not able to read small words

properly, identifies the required product, Dabur Chywanprash by a large and bold

picture of ‘trunk of tree’ printed on its label, which is called brand mark.

Reason: Branding helps a firm in distinguishing its products from that of its

competitors.

51


B. Assertion s false, reason is true



29. Assertion : A brand or part of a brand that is given legal protection is called

brandmark

Reason: decisions related to product come under promotion mix.


B. Assertion s false , reason is also false



30. Assertion: According to production concept consumer favors those products which

are widely available at lower prices

Reason: when marketer decides price for his product, he considers cost incurred,

government restrictions, prices of competitors and objective of pricing and a few other

things.


B. Assertion s false , reason is true


D. Assertion and reason both are true but reason doesn’t explain assertion.


Read the following text and answer questions on the basis of the same:

“Pargati Ltd.” Are the manufacturer of vegetarian frozen dessert food products made

with coconut milk, fruits, aloevera and other certified ingredients, which are most

suitable ones for ‘VEGANS’. The founders of the Company originally developed this

treat to meet their own family needs but found that their friends and families around

were also keen to use the products. They keep the prices of products quite reasonable

and pocket friendly @ Rs. 400 per kg. for most of the items. These were not only the

vegans, but those also, who were not getting enough environment friendly sustainable

food, appreciated the product. It did not take long for founders to recognize the

potential of their little venture. In the beginning they started production at their own

home and offered and sold product in local family parties and delicious taste forced

guests of those parties to meet the supplier. On certain festival seasons they offer

52

special discount and additional gifts to their customers. All this helped to establish a

strong connection with the prospective buyers and the company could put the product

on shelves of natural food store. Now they print the sign of green leaves, which is an

indicator of vegan products; on the label of their products. The company used a few

marketing activities to grow and expand. The Company began sponsoring booths at

festivals, drawing attention to its newly created vegetarian products. It also

disseminated relevant information to media about its products and the people who

helped in building the company’s reputation. Founders were invited for an interview

with one of the leading TV channels in which they talked about their environment

friendly vegetarian products. To show its gratitude to customers, local business and

government officials who supported the company from the beginning, “Pargati Ltd.”

Hosted a grand party and later involved all of them to raise funds for a few local NGO,

which was engaged in promoting girl child education.. The company also asked its

fans and customers to send songs and poetry conveying their impression about

“Pargati Ltd.” Products and invited their experiences and suggestions for betterment of

product. A few selected suggestions were recognized and rewarded. Now they avail

credit facilities also to their customers. Now they open their branches in certain parts of

the country and offer home delivery of their products at reasonable rates.

31. ‘’These were not only vegans, but also those who could not get enough environment

friendly sustainable food, appreciated the product, as non vegetable food processing

pollutes environment a lot .” Identify the marketing concept in given line.

A) Product B) Production

C) Marketing D) Societal marketing

32. These are a few components of the marketing mix, which may have been used in the

above case

a) Product

b) Price

c) Place

d) Promotion

Components which are used here are

A. a and b only

B. b and c only

C. a ,b and c only

D. a, b, c and d only

53

33. ‘’Now they avail credit facilities also to their loyal and regular buyers.’’ Which function

of marketing is highlighted in above line?

A) pricing of products B) Promotion

C) branding D) customers support services

34. “Now they print the sign (mark) of green leaves, which is an indicator of vegan

products; on the label of their products. Which function of labeling is highlighted in the

above case

A. Identification of brand

B. Describe the products and specify its content

C. Providing information required by law

D. Grading of products

35. In advertising there is a term ‘identified sponsor’. Who is that

A. Advertising agency B. Celebrity like Amitabh Bachchan

C. Manufacturing company D. None of the above.


Natasha, Saurabh and Adarsh were friends from college days and now they are doing

different kinds of business. Natasha started a footwear manufacturing company and

has decided to identify the needs of the customers to start successful marketing of the

footwears produced by it and for this the company is doing SWOT analysis (Strength

Weakness Opportunity and Threat). Saurabh is a distributor of tea to different places.

He has opened a company which deals in tea selling. He has categorised his tea to be

sold into three different categories Red, Yellow and Green. Adarsh started a

Refrigerator manufacturing company and currently is spending substantial amount of

money to persuade the target customers to buy its refrigerators through

advertisements, personal selling and sales promotion techniques. They regularly meet

and discuss their business ideas and exchange notes on customer satisfaction,

marketing efforts, product designing, selling techniques, social concerns, etc

In one of such meetings, Adarsh told Natasha and Saurabh that his competitor, with an

established brand name has launched a new product in the same name. This is

helping his competitor save a lot of expenses on building reputation and giving an

excellent start to the product. The new product is doing amazingly well and has caught

attention of the newspapers. Since the product is enjoying a lot of fame the customers

are ready to pay high prices for it in comparison to the same product launch by

54

Adarsh's company

36. ‘’Natasha started a footwear manufacturing company and has decided to identify the

needs of the customers to start successful marketing of the footwears produced by it

and for this the company is doing SWOT analysis (Strength, Weakness, Opportunity

and Threat Analysis)

Which function of marketing has been highlighted in this line

(A) Standardization and Grading

(B) Marketing planning

(C) Gathering and analyzing market information

(D) Transportation

37. Which function of marketing is followed by Saurabh by categorizing Tea into three

categories?

(A) Transportation,

(B) Standardization

(C) Grading

(D) Product designing and development

38. Adarsh started a Refrigerator manufacturing company and currently is spending

substantial amount of money to persuade the target customers to buy its refrigerators

through advertisements, personal selling and sales promotion techniques. Which

element of marketing mix is referred here?

(A) Place

(B) Promotion

(C) Product

(D) Price.

39. Identify the concept of marketing highlighted by Adarsh in the meeting

A. Branding

B. Labelling

C. Packaging

D. None of these

55

ANSWER :


1 D 11 A 21 C 31 D

2 D 12 A 22 B 32 D

3 C 13 A 23 C 33 D

4 D 14 D 24 D 34 D

5 B 15 D 25 C 35 C

6 C 16 D 26 B 36 C

7 D 17 C 27 A 37 C

8 B 18 C 28 C 38 B

9 D 19 C 29 B 39 A

10 D 20 D 30 D

Page | 1

Sample Question Paper 2021-22

Term 1

Subject: Business Studies

Time: 90 minutes Max. Marks: 40

General instructions:

1. The Question Paper contains 3 sections.

2. Section A has 24 questions. Attempt any 20 questions.

3. Section B has 24 questions. Attempt any 20 questions.

4. Section C has 12 questions. Attempt any 10 questions.

5. All questions carry equal marks.

6. There is NO negative marking.

Section - A

1. “What distinguishes a successful manager from a less successful one is the ability to

put the principles into practice.” Which aspect of the nature of management is

highlighted in the above statement?

a) Management as a science

b) Management as an art

c) Management as a profession

d) Management is an intangible force.

2. ____________ provides a rational approach for setting objectives and developing

appropriate courses of action for achieving predetermined objectives.

(a) Directing

(b) Staffing

(c) Planning

(d) Controlling

Page | 2

3. Marketing mix is the set of _____________________ that the firm uses to pursue its

marketing objectives in the target market.

(a) Production tools

(b) Promotional tools

(c) Marketing tools

(d) Selling tools

4.

Which level of management is responsible for the welfare and survival of the

organisation?

(a) Top level of management

(b) Middle level of management

(c) Supervisory level

(d) Both (b) and (c)

5. Name the principle of management given by Fayol which when applied would mean

that the workers and management both honour their commitments without any

prejudice towards one another.

(a) Discipline

(b) Mental Revolution

(c) Remuneration of employees

(d) Scalar chain

6. A brand or part of the brand that is given legal protection is called _____________

(a) Brand Mark

(b) Trademark

(c) Brand

(d) Brand name

7. Identify the dimension of the characteristic of management- “it is multidimensional”,

which specifies that the task of management is to make the strengths of human

resources effective and their weaknesses irrelevant towards achieving the

organisation's objectives.

(a) Management of work

(b) Management of people

(c) Management of operations

(d) Management of goals

Page | 3

8.

___________________ involves a variety of programmes designed to promote and

protect a company’s image and its individual products in the eyes of the public.

(a) Advertising

(b) Personal selling

(c) Publicity

(d) Public relations

9.

Which type of organisational structure will you suggest for a firm which has

diversified activities and operations requiring a high degree of specialisation ?

( a) Centralised structure

(b) Decentralised Structure

(c) Divisional structure

(d) Functional structure

10.

“Changes or events cannot be eliminated but they can be anticipated and managerial

responses to them can be developed.” is suggested by the following importance of

planning:

(a) Planning facilitates decision making

(b) Planning promotes innovative ideas

(c) Planning provides direction

(d) Planning reduces the risks of uncertainty.

11.

“Grouping similar nature jobs into larger units called departments” is the step in the

process of one of the functions of management. Identify the function of management.

(a) Planning

(b) Organising

(c) Directing

(d) Staffing

12

The Statement “Planning is a primary function”, suggests that……

(a) Planning precedes other functions

(b) Planning requires logical and systematic thinking

(c) Plan is framed, it is implemented, and is followed by another plan, and so on

(d) Planning is required at all levels of management as well as in all departments of

the organisation.

Page | 4

13

A major decision area under one of the functions of marketing is the decision

regarding marketing intermediaries to be used. Name the function.

(a) Physical Distribution

(b) Gathering and analysing market information

(c) Promotion

(d)Transportation

14.

“The nature of the relationship of our country with foreign countries”, is a major

element of which of the following components of the Business Environment?

(a) Social Environment

(b) Legal Environment

(c) Political Environment

(d) Economic Environment

15.

Which of the following statements is incorrect?

(a) Marketing is a social process

(b) Focus of the marketing activities is on customer needs

(c) Marketing is merely a post production activity.

(d) Marketing mix is a wider term than product mix.

16.

Planning is closely connected with _____________ and ________________

(a) Responsibility and accountability

(b) Delegation and decentralization

(c) Stability and security

(d) Creativity and innovation

17.

_______________ is an important function of marketing which is important not only

for protection of the product but also serves as a promotional tool.

(a) Grading

(b) Labeling

(c) Packaging

(d) Branding

Page | 5

18.

As part of regulations to be followed by advertisers, the advertisement for a new

brand of baby food for infants provides important information for potential buyers

that it is “Not recommended for infants under the age of four months”. Which

dimension of the business environment is highlighted in the above statement?

(a) Social Environment

(b) Legal Environment

(c) Political Environment

(d) Economic Environment

19. The principle of management given by Fayol which aims at preventing overlapping

of activities is:

(a) Division of work

(b) Unity of Command

(c) Unity of Direction

(d) Order

20.

___________________ensures that the subordinate performs tasks on behalf of the

manager thereby reducing his workload and providing him with more time to

concentrate on important matters.

(a) Decentralization

(b) Delegation of authority

(c) Authority

(d) Accountability

21. ____________ is a process of classification of products into different groups on the

basis of some important characteristics such as quality, size, etc.

(a) Standardization

(b) Grading

(c) Product Development

(d) Selling

Page | 6

22.

The sum total of all individuals, institutions and other forces that are outside the

control of a business enterprise but that may affect its performance is known

as________________

(a) Business environment

(b) Social environment

(c) Political environment

(d) Economic environment.

23

Name the concept that refers to the number of subordinates that can be effectively

managed by a superior and determines the number of levels of management in the

organisation.

(a) Organisation structure

(b) Span of management

(c) Hierarchy of authority

(d) Delegation of Authority

24

Taylor believed that there was only one best method to maximise efficiency. This

method can be developed through study and analysis. Identify the principle of

Scientific management being discussed above:

a) Harmony not discord

b) Science not rule of thumb

c) Development of each and every person to his or her greatest efficiency and

prosperity

d) Cooperation not individualism

Section -B

25. India has launched its most advanced Geo-imaging satellite which will allow better

monitoring of the subcontinent, including its borders with neighbouring countries, by

imaging the country 4-5 times a day. The satellite is capable of near real time

monitoring of floods and cyclones. The factor constituting the Business Environment

being discussed above is:

(a) Social environment

(b) Economic environment

(c) Technological environment

(d) Political environment

Page | 7

26.

Which step in the process of planning will precede the step in which the manager is

required to make certain assumptions about the future, which are the base material

upon which the plans are drawn.

(a) Implementing the plan

(b) Identifying alternative courses of action

(c) Setting objectives

(d) Selecting an alternative.

27 “Availability and affordability of the product were considered to be the key to the

success of a firm.” Identify the concept of marketing management highlighted by this

statement.

(a) Production concept

(b) Product Concept

(c) Societal concept

(d) Marketing Concept

28. Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting

the J&K film policy, 2021 offers a host of incentives to the filmmakers, such as

subsidies and low long term interest rates, for films with patriotic and certain other

themes shot in J&K, for giving work opportunities to local artistes, etc. This will

have an impact on business enterprises in the state. Which component of business

environment is highlighted above:

(a) Specific and general forces

(b) Technological environment

(c) Economic environment

(d) Totality of external forces

29

The Topper group is looking to make a foray into manufacturing of semiconductors

and it has set up a business to seize the business opportunity and add to its prospects

in the long run. The company has already pivoted into a number of new projects like

electronics, 5G network equipment, as well as semiconductors. Which economic

objective of management does the business seek to fulfill?:

(a) Survival

(b) Growth

(c) Profit

(d) Efficiency

Page | 8

30.

Product cost sets the lower limits of the price, the utility provided by the product and

the intensity of demand of the buyers sets the upper limit. So, in case of inelastic

demand, total revenue ………………when price increases

(a) Rises

(b) Falls

(c) Constant

(d) Both (a) and (b)

31. “A manager in a conscious manner has to ensure that even where members of a

department willingly cooperate, coordination gives direction to the willing spirit.”

The characteristic of coordination being highlighted above is :

(a) Coordination is the responsibility of all managers.

(b) Coordination is a deliberate function.

(c) Coordination integrates group efforts.

(d) Coordination is a continuous process

32

For the following two statements choose the correct option:

Statement I: Accountability can be delegated

Statement II: Responsibility can be delegated completely

Choose the correct option from the options given below:

(a) Statement I is correct and II is wrong

(b) Statement II is correct and I is wrong

(c) Both the statements are correct

(d) Both the statements are incorrect

Page | 9

33 The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from

the employees at a competitive cost. On the other hand Ramakaant, an employee of

the company wants to get the maximum salary while working the least. The Principle

of management given by Fayol being violated by Ramakaant is ----------------.

(a) Remuneration

(b) Equity

(c) Discipline

(d) Subordination of individual interest to general interest.

34

Arrange the following steps in the process of organising in the correct sequence:

(a) Assignment of duties

(b) Departmentalisation

(c) Identification and division of work

(d) Establishing reporting relationship

Choose the correct option:

(a) (a ) ; (b) ; (d); (c)

(b) (c ) ; (b) ; (a); (d)

(c) (c ) ; (b) ; (d); (a)

(d) (b) ; (c) ; (a); (d)

35 The production department at Karishmaa Ltd, a firm manufacturing readymade

garments for men has an objective to increase production by 10% but the Sales

department does not approve of the increase in production, till changes are brought

about in the product to incorporate latest fashion. These kinds of conflicts bring to

light the following importance of the force that can help to accomplish the linking of

activities of various departments:

(a) Growth in size

(b) Functional differentiation.

(c) Specialization

(d) Efficiency

Page | 10

36 Planning requires logical and systematic thinking rather than guess work. The feature

of planning being referred to in the above statement is:

(a) Planning is a continuous process

(b) Planning is futuristic

(c) Planning is pervasive


37 Silico Ltd. has appointed the former Consulting executive of Shri Shakti Ltd. Rajan

Bahl as its Vice President. What will be his basic task?

(a) To integrate diverse elements and coordinate activities of different departments.

(b) To carry out plans formulated by top managers.

(c) To oversee the efforts of the workforce.

(d) Help to maintain quality of output.

38 The marketing management philosophy which is based on the premise that any

activity which satisfies human needs but does not pay attention to the ethical and

ecological aspects of marketing cannot be justified is known as:

(a) Marketing concept

(b) Societal marketing concept

(c) Production concept

(d) Product concept

39 Ravi joined a marketing firm as a Sales manager. On his first day in the company,

during the orientation programme, the CEO of the company told Ravi that he will

have to simultaneously perform the functions of management (planning, organising,

staffing, directing, controlling) all the time. Which characteristic of management was

the CEO referring to?

(a) Management is a continuous process

(b) Management is all pervasive

(c) Management is multidimensional

(d) Management is goal oriented

Page | 11

40 Unlike professions such as medicine or law which require a practising doctor or

lawyer to possess valid degrees, nowhere in the world is it mandatory for a manager

to possess any such professional degree. Identify the characteristic of the profession

being discussed above which is not being strictly met by management.

(a) Well defined body of knowledge

(b) Restricted Entry

(c) Professional Association

(d) Ethical code of conduct

41 “Following a pre-decided plan, when circumstances have changed, may not turn out

to be in the organisation's interest.” The limitation of planning being referred to in the

above statement is-------------------------.

(a) Planning does not guarantee success

(b) Planning may not work in a dynamic environment

(c) Planning leads to rigidity

(d) Planning is a time consuming process.

42 The technique of Scientific Management given by Taylor, which aims to establish

interchangeability of manufactured parts and products is ...……………………..

(a) Method Study

(b) Motion study

(c) Standardization

(d) Differential Piece wage system.

43

For the following two statements choose the correct option:

Statement I: Advertising is an impersonal form of communication

Statement II: Advertising lacks direct feedback

Choose the correct option from the options given below:

(a) Statement I is correct and II is wrong

(b) Statement II is correct and I is wrong

(c) Both the statements are correct

(d) Both the statements are incorrect

Page | 12

44

KTX Group is rolling out an initiative to help create wealth for its employees through

the implementation of Employee Stock option. Through motivation and leadership

the management will help individuals to develop team spirit, cooperation and

commitment to the success of the group. The following importance of management is

highlighted above:

(a) Management helps in achieving personal objectives

(b) Management helps in the development of society

(c) Management creates a dynamic organisation

(d) Management increases efficiency

45 If there is a plan to increase production then more labour, more machinery will be

required. This step in the process of planning will involve organising for labour and

purchase of machinery. Identify the step in the planning process being discussed

above.

(a)Identifying alternative courses of action

(b) Setting objectives

© Selecting an alternative

(d) Implementing the plan

46 Taylor proposed eight specialists from whom each worker will have to take orders

from as part of the technique of Functional Foremanship specified by him. Those

with technical, mastery, intelligence and grit may be given-----------------------------

work. Those with energy and good health may be assigned ---------------- work.

(a) Planning, Execution

(b) Execution, Planning

(c) Production, Planning

(d) Implementation, Production

47 A person feeling hungry may get food by offering to give money or some other

product or service in return to someone who is willing to accept the same for food.

The important feature of marketing illustrated above is:

(a) Exchange mechanism

(b) Customer value

(c) Creating a market offering

(d) Needs and wants

Page | 13

48 Assertion :( A) Planning is futuristic

Reason: (R ) Planning is concerned with the future which is certain and does not

require forecast

( a) Both (A) and ( R ) are correct

( b) (A) is correct ( R) is incorrect

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

( d) Both (A) and ( R) are correct, and R is not the correct explanation of R

Section C

Read the following text and answer question number 49-54 on the basis of the

same.

'Saarthi', the name has been associated with the manufacturing and sale of Fashion

products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet

in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a

member of the S & M family of companies in 1959. Sarthi Perfumes began

operations in Gujarat in an existing administrative S&M facility in 1985. An

important difference between S&M and most other companies is that instead of

operating as one large corporation it operates as 180 smaller companies each focused

on a specific product and area, implying selective dispersal of authority, recognising

the decision makers need four autonomy, as decision making authority is pushed

down the chain of command. It enables the company to maintain short lines of

communication with customers and employees, and accelerate the development of

talent.

49 Identify the philosophy that is being followed by S&M through which it is dividing

the decision making responsibilities among hierarchical levels.

(a) Delegation of authority

(b) Decentralization of authority;

(c) Division of work

(d) Span of management.

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50. ‘Why is there, need to apply the philosophy being followed by S&M, with caution?

(a) As it can cause a delay in communication

(b) As it can cause disintegration of the organisation

(c) As it can increase the workload of the top management

(d) As it can reduce the chances of growth of the firm.

51 The application of the philosophy discussed above can foster a sense of competition

amongst the departments, which in turn will help the firm in the following manner:

(a) Facilitates growth

(b) Better control

(c) Relief to top management

(d) Quick decision making.

52 Quote the line from above which highlights the importance of the philosophy towards

providing management education to employees.

(a) “Maintain short lines of communication

(b) ‘Accelerate the development of talent’

(c) ‘selective dispersal of authority;

(d) ‘Recognises decision makers need for autonomy’

53 As “The decision making authority is pushed down the chain of command” at S&M

enterprises, it provides the benefit of quick decision making to the organisation

because:

(a) There is no requirement for approval from many levels

(b) Organisation is able to generate more returns

(c) There are innovative performance systems

(d) It's a means of management education

54 The philosophy being followed by S&M is not followed by most other companies.

This tells us that the philosophy is :

(a) Optional

(b) Compulsory

(c) Limited to superior and his subordinate

(d) Merely done to lessen the burden of the manager

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55 Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe

of at least 50 urban dwellers across Maharashtra raising bees and harvesting honey in

their balconies, rooftops and back gardens. As he had been focussed on eating right

the thought of domesticating honey bees to promote healthy consumption habits and

seeing honey being cultivated right before his eyes was mesmerising for him. Identify

the factor constituting the general environment being discussed above.

(a) Economic environment

(b) Social environment

(c) Technological environment

(d) Political environment

56

Zolo, a marketer of cars having 40 % of the current market share of the country aims

at increasing the market share to 70% in next few years. For achieving this objective

the manager of the company specified the action programme covering various

aspects. Identify the function of marketing discussed above:

(a) Customer support services

(b) Gathering and Analysing market information

(c ) Product designing and development

(d) Marketing Planning

57 Style and Fit, a footwear manufacturing company has decided to offer 50 % off on all

its products due to the fall in demand of its products as more efficient substitutes have

been introduced in the market. Identify the pricing objective included by the firm

which has made the firm resort to discounting its product.

(a) Obtaining market share leadership

(b) Surviving in the competitive market

(c) Attaining product quality leadership

(d) Protect the interest of public

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58

A sanitizer manufacturing company wants to become a market leader. For this

purpose the manager follows an activity with certain logical steps. The first step

suggested by him is to increase profits by at least 30% in the next quarter. What will

be the last step of the activity being followed by the manager.

(a) Follow-up action

(b) Identifying alternative course of action

(c) Setting objectives

(d) Evaluating alternative courses of action

59 In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under

her. One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority

under Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of

Management given by Fayol, If Ismail has to communicate with Hussain who is at

the same level of authority then illustrate the route he will have to traverse.

(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain

(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail

(c) Ismail-Chris-Shalleen-Preeti-Hussain

(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

60

According to the technique of Scientific management “Differential Piece Wage

system” How much more will a worker making 60 units earn as compared to a

worker making 49 units? If the standard output per day is 50 units and those who

make standard output or more than standard get Rs. 75 per unit and those below get

Rs. 65 per unit.

(a) Rs. 4500

(b) Rs. 3185

(c) Rs. 1315

(d) Rs. 3250

Q.NO. MARKING SCHEME

CLASS XII (2021-22)

TERM 1

SUBJECT: BUSINESS STUDIES

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

10. (d) 11. (b) 12. (a) 13. (a) 14. (c) 15. (c) 16. (d) 17. (c) 18. (b) 19. (C) 20. (b) 21. (b) 22. (a) 23. (b) 24. (b) 25. (c) 26. (c) 27. (a) 28. (c) 29. (b) 30. (a) 31. (b) 32. (d) 33. (d) 34 (b) 35. (b) 36. (d) 37. (a) 38. (b) 39. (a) 40. (b) 41. (c) 42. (c) 43. (c) 44. (a) 45. (d)

46. (a) 47. (a) 48. (b) 49. (b) 50. (b) 51. (a) 52. (b) 53. (a) 54. (a) 55. (b) 56. (d) 57. (b) 58. (a) 59. (a) 60. (c)

term: i (2021-22)

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