BUSINESS STUDIES CLASS – XII · Q11.Raju and Vinu are working in the same organisation. They perform ... b. Method study c. Motion study d. Time study ... Q36. Sanjeev, a chief

BUSINESS STUDIES

CLASS – XII

Q1. Which technique/principle of management helps in eliminating

superfluous varieties and making economical use of machines and tools?

a. Functional foremanship

b. Standardisation

c. Simplification

d. None of the above

Q2. The interest of various stakeholders, i.e. Owners, Shareholders,

Creditors, Financers and the society cannot be sacrificed for one

individual. Name the principle highlighted here.

a. Equity

b. Initiative

c. Discipline

d. Subordination of Individual interest to General interest

Q3. Vijaya is working as the manager of Northern Division of a large

corporate house. Name the managerial level at which she is working.

a. Top level

b. Middle level

c. Operational level


Q4. This objective involves providing good quality products at

reasonable prices, timely payment of taxes, opening schools and crèches

for the wards of the employees. Identify the objective.

a. Political

b. Technological

c. Social

d. Personal

Q5.the production target unit of a firm is 10,000units per month. To

achieve the target the production manager employs more workers and

works in double shifts. He is able to complete the target but at a higher

costs. Is the manager effective or efficient?

a. Effective

b. Efficient

c. Neither effective nor efficient

d. Both effective as well as efficient

Q6. In order to survive an organisation must change itself and its goals

according to the changing business environment. Which feature of

management is highlighted here?

a. Continuous process

b. Multi- dimensional

c. Goal oriented process

d. Dynamic

Q7. Every manager applies his/her personal skills and knowledge in the

day to day functioning of an enterprise. Management provides solutions

to complex problems, moulds the attitude of people for the betterment

of the organisation. Identify the nature of management.

a. Art

b. Science

c. Profession

d. Social Science

Q8. How is entry into a profession restricted?

a. Ethical code of conduct

b. Professional association

c. Examination or degree


Q9. It involves synchronisation of efforts of subordinates to provide

proper amount , timing and quality of execution, so that their united

efforts leads to the stated objectives. Identify the process highlighted

above.

a. Controlling

b. Coordination

c. Planning

d. Organising

Q10. Name the function of management which is considered as the base

for all other functions of management.

a. Planning

b. Staffing

c. Directing

d. Organising

Q11.Raju and Vinu are working in the same organisation. They perform

similar jobs and have similar experiences. However, they are paid

salaries at different rates. Which principle of management is overlooked

in the above case?

a. Remuneration of employees

b. Discipline

c. Division of work

d. Equity

Q12. Prayag is the production manager in Ceflox ltd. There is complete

harmony between the workers and the management. The company is

earning good profits which are shared with the employees. This results

in greater prosperity of both the company as well as the workers.

Identify the principle of management followed here.

a. Development of each and every personnel to his/her greatest

efficiency and prosperity

b. Harmony , not discord

c. Cooperation , not individualism

d. Initiative

Q13. Sultan ltd is a concern engaged in the production of children toys

and play material. Recently the management of the company has

decided to change the package of their product from polythene bags to

cloth bags. An employee gave few suggestions regarding the packaging

designs which were ignored by the management. Identify the principle

violated in the above case.

a. Initiative

b. Authority and Responsibility

c. Development of each and every personnel to his/her greatest

efficiency and prosperity


Q14. Raghav Agro industries have lately expanded its business due to an

increased demand for processed foods. As a result new players entered

into the market leading to increased competition. To cope up with the

increasing competition and to improve supplies the company forced its

workforce to work overtime without additional incentives. Subordinates

had to work for more than one superior leading to decreased efficiency.

Identify the principles violated by the management.

a. Unity of command, division of work

b. Division of work, Remuneration of employees

c. Equity, Unity of command


Q15.” Management should find one best way to perform a task.” Which

technique of scientific management is defined in this statement?

a. Science, not rule of thumb

b. Method study

c. Motion study

d. Time study

Q16.the understanding of business environment enables the firm to

identify opportunities. What is meant by Opportunities?

a. Positive trends in internal environment and external environment

b. Positive trends in internal environment which helps a firm to

improve its performance

c. Positive trends in external environment which helps a firm to

improve its performance


Q17. When a foreign tourist visited India he found that the trends and

tastes in the Indian market were different from that of his country.

Which feature of business environment is reflected here?

a. Dynamic

b. Uncertainty

c. Complexity

d. Relativity

Q18. Many multi-national food chains such as KFC’s, 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 setup.

a. Economic

b. Social

c. Political

d. Technological

Q19. The producers approach regarding production has shifted from that

he wants to produce to what the customer desires him to produce.

Identify the concept involved here.

a. Necessity for change

b. Increasing competition

c. Market orientation


Q20. Rekha, a manager at Infotech solutions Ltd recruited ten

employees and kept them in the organisation for a period of one year so

that the employees become familiar with their jobs and can contribute

their best for the realisation of their goals. Which principle of

management is highlighted here?

a. Stability of tenure

b. Division of work

a. Discipline

c. Authority and responsibility

Q21. Management should reward the constructive suggestion of

employees and follow paternalistic style of management. Workers

should also cooperate with management, resist from going on strikes

and making unreasonable demands to the management. Identify the

principle of management.

a. Espirit De Corps

b. Harmony, not discord

c. Science, not rule of thumb

d. Cooperation, not individualism

Q22. Liberalisation means

a. Integration among economies

b. Reduced government control and restrictions

c. Policy of planned disinvestments


Q23. Which of the following does not explain the impact of government

policy changes on business and industry?

a. More demanding customers

b. Increasing competition

c. Change in agricultural prices

d. Market orientation

Q24. He/she keeps machines, materials, tools etc ready for operations

by concerned workers. Whose work is described by this sentence under

functional foremanship?

a. Instruction card clerk

b. Repair boss

c. Route clerk

d. Gang boss

Q25. Which of the following statements is false about Taylor and Fayol?

a. Fayol was a mining engineer whereas Taylor was a mechanical

engineer

b. Fayol’s principles are applicable in specialised situation where as

Taylor’s principles have universal application

c. Fayol’s principles were formed through personal experience where

as Taylor’s principles were formed through experimentation

d. Fayol’s principles were applicable at the top level management

where as Taylor’s principles are applicable at shop floor

Q26. The owner of a factory producing simple toys for children has

decided to expand his business by setting up a medium scale unit in

order to produce mechanical toys and subsequently having a large

production unit for complex electronic playthings. He wants you to

suggest what type of organisational structure will be most suitable for

his present and proposed production unit.

a. Formal

b. Functional

c. Divisional

d. Informal

Q27 . This analysis would reveal the number and type of human

resources necessary for the performance of various jobs and

accomplishment of organizational objectives. The analysis is-

a) Staffing

b) Workload analysis

c) Workforce Analysis

d) Recruitment

Q28. Which of the following does not follow the scalar chain?

a. Formal

b. Functional

c. Divisional

d. Informal

Q30. Direct financial payments are of how many types:

a) Three

b) Two

c) One

d) None of the above

Q31.In the process of delegation, accountability cannot be

a. Shared

b. Delegated

c. Neither (a) nor (b)

d. Both (a) and (b)

Q32. Management expands itself through

a. Centralisation

b. Decentralisation

c. Delegation

d. All of the above

Q33. Which training method helps in coordinating theoretical and

practical knowledge?

a. Coaching

b. Films

c. Internship

d. None of these

Q34. They maintain close contacts with labourers and can provide the

required number of unskilled workers at short notice. Identify the type

of recruitment.

a. Labour contractors

b. Direct recruitment

c. Campus recruitment


Q35. In this step of Staffing the performance of the employee is

evaluated against predetermined standards. Identify the step.

a. Promotion and career planning

b. Recruitment

c. Performance appraisal


Q36. Sanjeev, a chief engineer in a Diamond jewellery company using

highly sophisticated diamond cutting machines and equipments, wants

that every employee should be fully trained before using these machines

and equipments. Suggest the best method and training that Sanjeev can

use.

a. Vestibule

b. Apprenticeship

c. Computer modelling


Q37. This Incentive creates a feeling of ownership to the employees and

makes them contribute for the growth of the organization. Identify the

Incentive

a) Profit sharing

b) Co- partnership

c) Bonus

d) Pay and allowances

Q38. A company gets applications on and off even without declaring

vacancies. However as and when the vacancy arises, the company

makes use of such applications. Name the source of recruitment used by

the company.

a) Casual callers

b) Web publishing

c) Advertisement

d) Employment exchange

Q39. “Our assets walk out of the door each evening, we have to make

sure that they come back the next morning”. This statement relates to

which function of management.

a. Directing

b. Planning

c. Organising

d. Staffing

Q40. Sujata the sales manager achieved her sales target one month in

advance. This achievement was displayed on the notice board and a

certificate for best performance was awarded to her by the CEO of the

company. Identify the type of incentive provided.

a. Employee Recognition programme

b. Job enrichment

c. Employee empowerment

d. Career advancement opportunity

Q41. Bharat ltd offers shares to its employees at a price which is less

than the market price. Identify the type of incentive.

a. Profit sharing

b. Co-partnership

c. Job enrichment

d. Both a and b

Q42. It includes our desire for respect, independence, autonomy,

authority etc. Identify the need as per Maslow’s theory.

a. Employee empowerment

b. Employee recognition

c. Esteem needs

d. Social needs

Q43. Amit and Arun are working in the same organisation but in

different departments. One day at lunch time Arun informed Amit that

due to computerisation many people are going to be retrenched soon

from the organisation. Name which type of communication is this.

a. Formal

b. Informal

c. Both a and b


Q44. Mr D’souza, a manager in a chemical company has given complete

freedom to his subordinates. He avoids the use of power and depends

largely upon the group to establish its own goals and work out its own

problems. Which style of leadership is he following?

a) Laissez Faire

b) Democratic

c) Autocratic


Q45. This function of management ensures that work is done as per

instructions. Identify the management function involved here.

a) Organising

b) Staffing

c) Directing

d) Controlling

Q46. It is the most important asset for an organization. It is the

competence and performance of this resource which helps an

organization to achieve its goals.

a) Physical resource

b) Material resource

c) Human resource

d) None of these

Q47.“The Director of a company will give directions to heads of

department, the same way a line manager directs workers operating

machines in the factory. However the type of directing and the time

spent on directing differs from level to level. “The above line highlights

which characteristics of Directing.

a) Directing takes place at every level of management

b) Directing flows from top to bottom

c) Directing is a continuous process


Q48. “The production manager plans to change the old machinery with

updated one. All workers are comfortable in operating the old machinery

therefore resisted to change. However the line manager decided to

demonstrate the working of new machinery and inform workers of its

benefits. The workers were satisfied and accepted the change.” The

above line highlights which importance of Directing.

a) Directing helps to initiate action

b) Directing motivates employees to realize their potential

c) Directing facilitates introduction of changes in the organization

d) Directing integrates employees

Q49. This element of Directing involves influencing people’s behavior at

work towards accomplishment of Organizational goal.

a) Motivation

b) Leadership

c) Supervision

d) Communication

Q50. “He is an important link between management and workers. On

one hand he communicates the plans and ideas of management to

workers and on the other hand he represents workers in front of

management” The above lines highlights which element of Directing?

a) Motivation

b) Communication

c) Leadership

d) Supervision

Q51. “The employees feel satisfied if superiors appreciate their

contribution, listen to their ideas, give attention to their grievances.”

The above lines refer to which need according to Maslow’s Hierarchy

Theory.

a) Esteem Needs

b) Belongingness Needs

c) Security Needs

d) Self Actualisation needs

Q52. Huma is working in a company on a permanent basis. As per the

job agreement she had to work for 8 hours a day and was free to work

overtime. Huma worked overtime due to which she fell ill and had to

take leave from her work. No one showed concern and enquired about

her health. She realized that she was fulfilling only some of her need

while some other need remained to be fulfilled. Identify the need which

is fulfilled and the need which is not fulfilled.

a) Belongingness, Security

b) Physiological, Security

c) Belongingness, Physiological

d) Physiological, Belongingness

Q53. Monica and Sonica are working as Production and Sales manager.

During a meeting they discussed about the growth prospects of the

company and the ways to achieve them by implementing the policies

developed by the top level management. After wards they met in the

office canteen and discussed about the rumours of retrenchment and

transfers. identify the type of communication discussed above.

a) Formal, Informal

b) Informal, Formal

c) Informal

d) Formal

Q54. Rajiv , the head of sales team , takes suggestions from team

members and use them to prepare his presentation. In his presentation

he does not recognize or appreciate his team members. This disappoints

all the team members and they decide not to give suggestions in future.

Identify the type of communication barrier.

a) Psychological

b) Organisational

c) Personal


Q55. During an address to the workers the production manager said “

Our department will follow “ Unity of command” and you all must

believe in the concept of “Espirit De Corps”. But the workers did not

understand the message. Due to which communication barrier the

workers did not understand the address.

a) Personal

b) Organisational

c) Psychological

d) Semantic

Q56.Rashmi told her secretary to inform all departmental heads about a

meeting at 9.30 a.m. The secretary informed three departmental heads

but forgot to inform other departmental heads. Identify the

communication barrier.

a) Loss by poor retention

b) Loss by transmission

c) Lack of attention


Q57.It is the process of converting or translating message into an

effective language which can be understood by the receiver. Identify the

process.

a) Encoding

b) Decoding

c) Media

d) Receiver

Q58. Mr Sudhir has a very laid back attitude towards work. He comes

late to office, avoids meeting his subordinates and expects them to

complete work as they think right. Identify the type of leadership Mr.

Sudhir has adopted

a) Autocratic

b) Democratic

c) Free reign


Q59. The finance Manager calculates ratios so as to evaluate and

compare company’s performance with forecasted results. Identify the

step of Controlling process involved here.

a) Comparing actual performance with standards

b) Measurement of actual performance

c) Analyzing deviations


Q60. An example of effective standard for a control system would be:

a) Appointing new employees

b) Renting new premises

c) Plans to increase targets for the sales executives

d) Improving the quality of production

Q61. Controlling starts where

a) Directing ends

b) Organising ends

c) Staffing ends

d) Planning ends

Q62.Which of the following is an example of corrective action :

a) Recalculating standard time for production

b) Filling up vacant position

c) Buying new machinery to increase productivity

d) Conducting induction training for new joinees

Q63. Some status conscious managers may consider themselves as

superior and maintain distance with their subordinates. This may affect

relationship between superior and subordinate relationship and restrict

free flow of information. Identify the barrier discussed above.

a) Fear of challenge of authority

b) Status

c) Unwillingness to communicate


Q64. Mr Arjun , the manager of Happy Ltd appreciated the workers of

the organization for their effort in achieving the organizational goal.

However he used the words of praise with anger on his face as a result

the entire workforce was confused. Identify the type of communication

barrier.

a) Semantic barrier

b) Organizational barrier

c) Personal barrier

d) Psychological barrier

Q65. The main aim of this type of incentive is to increase productivity at

individual and group level. Identify the incentive.

a) Bonus

b) Profit Sharing

c) Productivity linked wage incentive

d) Stock option

Q66. If anything goes wrong with the performance of key activities, the

entire organisation suffers. Therefore the organization should focus on

‘them’. What does ‘them’ refer to here?

a) Critical Point Control

b) KRA’s

c) Management by exception


Q67.Mr. Bose is the owner of ‘ Bikmac Enterprises’ carrying on the

business of manufacturing various kinds of biscuits. There was a lot of

discontentment in the organization and the targets were not being met.

He asked his son Navjeet, who had recently completed his MBA to find

out the reason. Navjeet found that all decision making were in the hands

of his father. His father did not believe in his employees. As a result

both the employer and the employees were not able to understand each

others message in the original sense. Thus the employees were not

happy and targets were not met. Identify the two communication barrier

because of which Bikmaoc enterprises were not able to achieve its

target.

a) Organizational, Psychological

b) Psychological, Personal

c) Personal, Organizational


Q68. Acron Ltd is dealing in Environment Consultancy. To get the

business, the team leader and his team used to travel to different states

to give presentation to their clients. As per the policy of the company,

the team leader used to travel by air amt his team members travelled by

road. It was not only time consuming but also at times forced the

female members to travel alone.

As a result the subordinates were not acting in the desired manner to

achieve organizational goal. The CEO of the company came to know

about it . He called the team leader and discussed the matter with him

and decided to change the travel policy of the company. It was decided

that in future all the members including the leader would travel together

and usefully utilize the travelling time in discussion about the

presentation to be given to the clients. This made a positive impact and

every member of the team started acting in a manner as desired by the

team leader.

Identify the function of Management and the element of the function of

Management involved.

a) Controlling, Analysing Deviations

b) Directing, Motivation

c) Controlling, Taking corrective action

d) Directing, Leadership

Q69. Which element of Directing helps in implementing the Principle of

Scalar Chain?

a) Supervision

b) Motivation

c) Communication

d) Leadership

Q70. This leader does what the group wants and follows the majority

opinion. He keeps the followers informed about the matters affecting

them and listens to their suggestions and grievances. Identify the style

of leadership.

a) Laissez faire

b) Autocratic

c) Democratic


Q71. Rahim was working in an enterprise on daily wages basis. It was

difficult for him to fulfil the basic needs of his family. His daughter fell ill.

He had no money for his daughters treatment. To meet the expenses of

her treatment he participated in a cycle race and won the prize money.

The cycle gave him a permanent pensionable job which he readily

accepted. Identify two other needs of Rahim which still needs remains

unsatisfied.

a) Physiological, Affiliation

b) Esteem, Security

c) Esteem , Physiological

d) Esteem, Affiliation

Q72. Mr. Sam has been appointed by Suntech Ltd to ensure that the

performance of employees is going as per the plans. In the report that

he submitted to the management he mentioned that carriage charges

had risen by 8% however labour absenteeism had increased from the

previous year fro 5% to 15%. He felt that this increase in absenteeism

required immediate attention of management on priority basis. Identify

the step of one of the functions of management referred above.

a) Taking corrective action

b) Analyzing deviations

c) Measurement of actual performance


Q74. Akash Enterprises have set up a staff welfare committee for the

benefit of its employees and to involve them in decision making process

and also to give them a sense of responsibility and ownership. Identify

the non- financial incentive provided by the enterprise.

a) Employee participation

b) Employee empowerment

c) Employee recognition


Q75. Unclarified assumption is an example of-

a) Organizational barrier

b) Semantic barrier

c) Psychological barrier

d) Personal barrier

Q76. In this technique the actual performance is measured by checking

quality of certain pieces produced. Identify the technique.

a) Personal observation

b) Performance reports

c) Sample checking


Q77. What is meant by financial Market?

Q78. What is financial intermediation?

Q79. Name the two major alternative mechanisms through which

allocation of funds can be done.

Q80. Give the meaning of allocation function of a financial market. State

the consequences of this function.

Q81.Mission coach limited is a large and creditworthy company

manufacturing coaches for Indian railways. It now wants to export these

coaches to other countries and decides to invest in hi-tech machines.

Since the investment is large it requires long term finance. It decides to

raise funds by issuing equity shares. The issue of equity shares involves

huge cost. To meet the expenses of floatation cost the company decides

to tap the capital market.

a. Name and explain the money market instrument the company

can use for the above purpose.

b. What is the duration for which the company can get funds

through this instrument?

Q82.Given below are two situations

a) A commercial bank requires funds to maintain CRR.

b) A company requires funds for launching a new product line.

In relation to the above, two situations answer the following

questions

i) Which market should the organization approach in relation to

A and B.

ii) State any two differences between such types of Market.

Q83. Few years ago, there were many malpractices and unfair trade

practices like price rigging etc. All these had eroded investor’s

confidence and multiplied their grievances. To overcome these, Govt. of

India decided to set up separate regulatory body for this purpose.

Name the separate body set up by Govt. of India and when it

was established.

Q84. Supriya’s grandmother who was unwell, called her and gave her a

gift packet. Supriya opened the packet and saw many crumpled share

certificates inside. Her grandmother told her that they had been left

behind by her late grandfather.

As no trading is now done in physical form, Supriya wants to know the

process by adopting which she is in a position to deal with these

certificates.

a) Identify and state the process.

Q85. Pradeep Industries is planning to issue equity shares to raise funds

worth Rs.1,000 crores for its expansion and growth. The company has

4 directors and each director is suggesting different method for the new

issue. Name the market through which directors will offer. If the

directors

[i] Offer the entire new issue to Life Insurance Company.

[ii]Issue shares to public via issue houses and stock brokers.

[iii] First ask existing shareholders to apply for new issue as it is a

compulsory requirement under Companies Act.

Q86.The Securities and Exchange Board of India has charged Mr. A

Vellayan, Chairman of the Murugappa Group, one of India's leading

business conglomerates, and directed the individuals and entities to

surrender unlawful gains along with interest, a total amount of Rs 2.15

crore. The regulator alleged that Vellayan had passed on unpublished

price sensitive information pertaining to the acquisition of Sabero

Organic Gujarat by group entity, Coromandel International to some

individuals who traded in the shares of Sabero on the basis of that

information.

Identify the malpractice highlighted in above case. Q87. Define financial management?

Q88. What is the primary objective of financial management?

Q89. The size of assets, the profitability and competitiveness are

affected by one of the financial decisions. Name and state the decision.

Q90. How do rising prices affect the requirement of working capital of

an organisation?

Q91. Name the financial decision which will help a businessman in

opening a new branch of its business?

Q92. Define capital budgeting techniques.

Q93.How does taxation policy affect dividend decision?

Q94. Define Capital structure?

Q95. What does trading on equity refer to?

Q96. In what kind of situation there is favourable financial leverage?

Q97. What is meant by financial risk?

Q98. What is meant by floatation cost?

Q99.How does production cycle affect the working capital requirement?

Q100. Identify the decision taken in financial management which affects

the liquidity as well as the profitability of business.

Documents

BUSINESS STUDIES CLASS – XII · Q11.Raju and Vinu are working in the same organisation. They perform ... b. Method study c. Motion study d. Time study ... Q36. Sanjeev, a chief