KV BST MCQ

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KENDRIYA VIDYALAYA SANGATHAN
HYDERABAD REGION
SUBJECT - BUSINESS STUDIES
CLASS - XII
(MCQs ON CASE BASED AND ASSERTION – REASON TYPE)
TERM –I
SESSION 2021-22
(As per Latest CBSE guidelines and Term-I Curriculum)

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केन्द्रीय विद्याऱय संगठन / KENDRIYA VIDYALAYA SANGATHAN
है दराबाद संभाग / HYDERABAD REGION
CLASS – XII SUBJECT – BUSINESS STUDIES
CHIEF PATRON
SRI K. SASEENDRAN, DEPUTY COMMISSIONER
PATRON
DR (SMT) V. GOWRI, ASSISTANT COMMISSIONER
COORDINATOR
NAME OF PRINCIPAL: SHRI. ISLAM KHAN, PRINCIPAL KV KHAMMAM
PREPARED & VETTED BY SUBJECT TEACHERS

1. Mr. N. Balaji (K.V.No.2, SVN, Visakhapatnam)
2. Mr. S. ARUMUGAM (KV NTPC Ramagundam)
3. Mr. G. ELANCHERAN (KV Tirumalagiri)
4. Mr. PARAS ANAND (KV NFC Nagar Ghatkesar)
5. Mrs. VARSHA VERMA (KV Waltair)
6. Mr. ARUN S (KV Steel Plant)
7. Mrs. JYOTI (KV Malkapuram)
8. Mr. SHAHZAD ARABI (KV NO.1, Tiruapati)
9. Mr. MANOJ KUMAR (KV NSB-1 Visakhapatnam)
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CLASS 12 BUSINESS STUDIES FOR THE YEAR 2021-22

TERM 1 MCQ QUESTION AND ANSWERS BASED ON CASE BASED
AND ASSERTION – REASON MODEL
ANSWERS ARE PROVIDED AT THE END OF EACH SECTION.
EACH QUESTION CARRIES ONE MARK EACH
CHAPTER 1 NATURE AND SIGNIFICANCE OF MANAGEMENT
CASE BASED QUESTIONS:
QUESTION NO.1 TO 4 ARE BASED ON THE PARA GIVEN BELOW. CHOOSE THE
CORRECT OPTION GIVEN BELOW FOR EACH QUESTION:
Mayra Ltd. received a new order of 30,000 toys. Mr. Abhilash, the production manager is expected to
deliver goods in fifteen days otherwise the contract will be null and void. To retain the customers,
Abhilash outsourced the production of 15,000 toys and delivered the order on time. The outsourcing of
production resulted in increase in cost by 50%. Mayra Ltd. uses environment friendly methods of
production and disposes off the waste material by either recycling it or using the same for landfill in such a
manner that the aquatic life is not disturbed."
1 Which concept of management is being adhered to here by Mr. Abhilash?
(A)Effectiveness
(b) Efficiency
(c) Both a. and b.
(d) None of these
2 Which concept of management is being overlooked by Mr. Abhilash?
(A)Effectiveness
(b) Efficiency
(c) Both a. and b.
(d) None of these
3 At which level of management is Mr. Abhilash working?
(A)Top level
(b) Middle level
(c) Lower level
(d) Shop floor level
4 Which objective of management is fulfilled by Mayra Limited?
(A)Organisational
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(b) Personal
(c) Social
(d) None of these
Ankush Ltd is engaged in manufacturing of electrical appliances .Mr Ankush found that the profits had
started declining from the last 6 month. Profit has an implementation for the survival of the firm, so he
analysed the business environment to find out the reason for the decline. Also the company has been
facing problem for the last few years because of the chaos between two departments ie (production
department and sales department).Sales department blames Production department for delaying
production. Production department blames sales department for poor sales. The force that initiate two
department is missing. So Mr Ankush integrates the effort of these departments into a uniform plan of
action to active better organisational results. He also gives instructions to his managers so that desired
action may be taken to achieve the target on time.Various incentive are also offered to them for achieving
desired target on time.
5 At which level of management is Mr Ankush working?
(A) top level
(b) middle level
(c) lower level
(d) shop floor level
6 Which is the force that Is missing in the given paragraph?
(A) cooperation
(b) coordination
(c) Authority and responsibilities
(d) planning
7 Which function of management is highlighted in the lines "He also gives instructions ….....Time"?
(A) planning
(b) organising
(c) staffing
(d) directing
Mona is the branch manager of Mitushi Handicrafts Pvt Ltd. The company's objective is to promote the
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sales of Indian Handlooms .It sales fabrics, furnishing readymade and household items are made out of
traditional Indian fabrics. Mona decides quantities, variety, colour and texture of all the above items and
and then allocates resources for their purchase from different suppliers .She appoints the team of designers
and crafts people in the company who developed some prints for bed cover in bright colour on silk.
Although the product look very attractive and impressive, they were relatively expensive and on the front
of affordability of an average customer. Mona suggest that they should keep the silk bed cover for special
festive occasions and offer the cotton bed cover on a regular basis to keep cost under control.
8 "She appoints a team of designers and craft people in the company, who developed some prints for bed
cover in bright colour on silk" which function of management is highlighted in the statement?
(A) controlling
(b) staffing
(c) planning
(d) directing
9 In the above case "company's objective is to promote the sales of Indian Handlooms and Handicrafts
production" the above line focus on which feature of management?
(A) Management is an initiative force
(b) Management is a goal oriented process
(c) Management is pervasive in nature
(d) Management is a continuous process
10 With reference to the case, at which level of management Mona is working?
(A) lower level
(b) top level
(c) middle level
(d) shop floor level
11 Mona suggest that they should keep the silk bed cover for special festive occasions and offer the cotton
bed cover on a regular basis to keep cost under control" Which function of management is highlighted over
here?
(A) controlling
(b) staffing
(c) organizing
(d) planning
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Soft-core Ltd.is a company which has improved its functioning by proper management. The company has
been successful in deciding and completing targets. In the previous meeting, it was decided that in coming
years, the company could show increase in the number of workers, number of products produced and also
the sales turnover. However, recently it earned a negative reputation under the impact of resignations put
forth by two of its departmental heads. These departmental heads were experts in their fields. One was
leading the marketing department and the other was a scientist of repute who headed the manufacturing
department. In the top level management meeting, it was found that such departmental heads who were
specialists in their areas cannot be tackled by unity of command. They were egoistic as they were
specialists. After the meeting, things started to change for the organisation as all the departments started to
work with one single target of giving back the company its lost fame. There was a combined effort which
doubled the revenue of the organisation. A special regulation system of including every level manager was
brought into action. Thus, the overall functioning of the organisation improved.
12 Identify the feature of management highlighted in the given case.
(A) Management is an intangible force
(b) Management is multidimensional
(c) Management is a goal-oriented process
(d) Management is all pervasive
13 Identify the type of objective being discussed from the given Line stated............ company could show
increase in the number of workers, number of products produced and also the sales turnover."
(a) Organisational
(b) Personal
(c) Social
(d) None of these
14 The concept of management missing in the Soft-core Ltd, Company is:
(A) cooperation
(b) coordination
(c) control
(d) direction
15 Identify the feature of coordination being discussed from the given line:..................as all the departments
started to work with one single target of giving back the company its lost fame."
(a) Unity of action
(b) Responsibility of all managers
(c) Pervasive
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(d) Continuous process
ANSWERS FOR CASE BASED QUESTIONS OF NATURE AND SIGNIFICANCE OF MANAGEMENT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a b c c a b d b b c a a a b a
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ASSERTION – REASON QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT

Read the following statements: Assertion and Reason. Choose one of the correct alternatives given
below:
1 Assertion (A): Coordination is needed in all departments and at all levels.
Reason (R): Activities are independent in all departments and levels.
(A) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion
(A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation Assertion
(A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.
2 Assertion (A): Management is termed as a 'Process!
Reason (R): Management involves a series of inter-related functions, such as planning, organising,
staffing, directing and controlling.
(A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of
Assertion (A)
3 Assertion (A): Management is called an Exact Science.
Reason (R): Management deals with complex human behaviour, which cannot be determined with
accuracy.
(A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion
(A).
4 Assertion (A): There is no restricted entry in case of management.
Reason (R): Management consists of systematic knowledge of concepts, theories and principles.
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(A).
(A).
5 Assertion (A): Management is termed as a Group Activity.
Reason (R): Every member of a firm joins the organisation with a different purpose and work towards
achievement of personal goals and not organisational goals.
(A).
(A).
6 Assertion (A): Management is considered as a tangible force.
Reason (R): Management cannot be seen, felt and touched.
(A).
(A).
7 Assertion (A): Coordination acts as a binding force between departments and ensures that all efforts are
focused towards achieving organisational goals.
Reason (R): Specialists in an organisation usually think that they only are qualified to evaluate, judge and
decide according to their professional criteria.
(A).
(A).
8 Assertion (A): Satisfaction of personnel objectives is very important in an organisation.
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Reason (R): Employees are one of the most valuable resources for an organisation.
(A).
(A).
9 Assertion (A): The main objective of any organisation is to utilise human and non-human resources in the
most efficient and effective manner to fulfill the economic objectives of the business.
Reason (R): As it will ensure Survival, Profit and Growth of a business. Finance is the lifeblood of a
business. So, fulfilling economic objectives is the first priority
(A)
Assertion (A)
10 Assertion (A): Management is not a pure science.
Reason (R): (a) Management has a systematised body of knowledge:
(b) is based on observation and experimentation:
(c) has universally validity
(A)
Assertion (A)
11 Assertion (A): Management is an art.
Reason (R): (a)It involves use of theoretical knowledge:
(b) It is a personalised concept:
(c) It involves practice and creativity
(A)
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Assertion (A)
12 Assertion (A): Coordination does not occur spontaneously nor it can be achieved by force.
Reason (R): Coordination is the responsibility of all managers.
(A)
Assertion (A)
13 Assertion (A): Coordination leads to specialisation.
Reason (R): It helps to harmonise individual goals and organisational goals. Thus, it ensures that all
individuals from different backgrounds work towards the common goals of the organisation.
(A)
Assertion (A)
14 Assertion (A): Coordination is not pervasive.
Reason (R): It is required at all levels and in all departments because of Interdependence of various
activities.
(A)
Assertion (A)
15 Assertion (A) Management is a profession.
Reason (R) There is an All India Management Association
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion
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(A)
Assertion (A)
ANSWERS FOR ASSERTION – REASON QUESTIONS OF NATURE AND SIGNIFICANCE OF

MANAGEMENT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
c a d b c d b a a c a b d d d
EXTRA QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT:

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Which of the following pairs are correctly matched:

1 List I List II
I. Planning Essence of Management
II. Coordination Function of Management
III. Organisational Objective of Management Survival
IV. Middle Level Management Finance manager
a I II III IV b III and IV

c II III d I II
2 Match the characteristics of management' given under Column I with the 'suitable statements' under
Column Il.
Column I Column II
(A) Continuous process (I) It can't be seen but its presence can be felt
when targets are met and there is
orderliness instead of chaos
(B) Intangible (II) Organisation interacts with ever-changing

external environment and management has
to adapt itself to the changing environment
(C) Dynamic (III) In management functions are performed

in a sequence
a III I II b II I III
c II III I d I III II
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3 Match the cases in Column I with their correct answer (in terms of nature of management) in Column II.
Column I Column II
(A) Every manager has his own unique way of (I) Management as a profession
managing things and people.
(B) Certain management associations like (II) Management as a science
AIMA, have formulated ethical codes for
managers, but there is no legal support for
it.
(C) Management principles have been (III) Management as an art
evolved over a period of time based on
repeated experimentation and observation.
a II I III b III II I
c III I II d I III II
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1 Top level management A Production manager
2 Middle level management B Foremen
3 Operative level management C Hierarchy
4 Levels of management D CEO
a DCBA b DABC c CBAD d ADCB

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1 Planning A Co-ordination
2 Controlling B Thinking
3 Staffing C Comparing actual performance
with planned standards
4 Synchronization D Filling vacancies
a ACBD b DABC c CDBA d BCDA

6 Ram Vilas, the chairperson of Met Lapp Foundation (Non-Profit Organisation) believes that objectives of
foundation can be achieved, without a proper management system. Which characteristic of management is
overlooked in the given case?
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a. management is an intangible force.

b. Management is Pervasive.
c. Management is a goal-oriented process.
d. Management is a continuous process.
7 ABC group of companies decide to donate 3% of its profits to ‗Child Rights and You‘ (CRY) for
improving the condition of children in India. This initiative by the company was highly appreciated by the
public and their sales increased by 10%, Identify the objective in the given lines.
a. Social.
b. Organisational.
c. Personal.
d. None of These.
8 ‖In an organisation, the objective of marketing department is to increase sales by 10% by offering
discounts. However the finance department is reluctant to offer discounts as it means loss of revenue‖.
One of the benefits of coordination helped to resolve the conflict Identify it.
a. Growth in Size
b. Specialisation
c. Functional differentiation
d. Both a and c
9 Top level management spend more time on:
a. Directing.
b. Organising.
c. Controlling.
d. Planning
10 Arrange the following in correct sequence
i) Staffing.
ii) Directing.
iii) Planning.
iv) Organising.
a) (iv),(ii),(iii),(i)
b) (i),(iii),(iv),(ii)
c) (ii),(i),(iv),(iii)
d) (iii),(iv),(i),(ii)
11 For the following two statement choose the correct option:
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Statement I: Coordination is needed in all departments and at all levels.

Statement II: Activities are independent in all departments and levels.
Alternatives:
(a) Statement I is correct and II is wrong
(b) Statement II is correct and I is wrong
(c) Both the statement are correct.
(d) Both the statement are incorrect
Statement I: Management is termed as a 'Process!
Statement II: Management involves a series of inter-related functions, such as planning, organising,
staffing, directing and controlling.
Alternatives:
(d) Both the statement are incorrect.
Statement I: Management is called an Exact Science.
Statement II: Management deals with complex human behaviour, which cannot be determined with
accuracy.
Alternatives:
14 For the following two statements choose the correct option:
Statement I: There is no restricted entry in case of management.
Statement II: Management consists of systematic knowledge of concepts, theories and principles.
Alternatives:
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15 For the following two statements choose the correct option:

Statement I: Management is termed as a Group Activity.
Statement II: Every member of a firm joins the organisation with a different purpose and work towards
achievement of personal goals and not organisational goals.
Alternatives:
KEY FOR ADDITIONAL QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b a c b d b a c d d b c b c a
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CHAPTER 2 PRINCIPLES OF MANAGEMENT

1 Mr. A, plant superintendent of a company is very sad. When he was on leave he was expecting his
subordinates to take the remaining work to be finished. However he finds a new way of dealing with this
problem. He develops a system of suggestion building from the side of workers. For this a
suggestion/complain box is to be kept where the workers can drop their advice and hence take steps from
their side.
Which principle of management has been implemented here off late by the plant superintendent?
(A) Principle of Order
(b) Principle of initiative
(c) Discipline
(d) Coordination
Mr. A works in a bulb manufacturing company. Each bulb which is manufactured is of standard size and
quality. Further if there is any unrequired type of bulb manufactured then its production is stopped. Last
month when the company came to know that 10 watt bulbs were no more liked by customers, their
production was stopped. He works in the purchase department. His job is to purchase the filaments
required to make bulbs. This time when he purchases the filament he gets the instruction from the seller
that some special care needs to be taken in the first hour of fixing the filaments inside the bulb. Mr. A
knows this information should be given immediately to the production department before the assembling
process starts. However he finds that his company‘s policies only allow him to give the message to his
immediate boss who will further pass this message to his boss. The passing of this message will continue
till it reaches the desired person in the production department.
2 Which technique of management is followed here?
(A) Method study
(B) Fatigue study
(C) Standardisation and simplification
(D) Functional foremanship
3 Name the principle of management followed here by the company?
(A) Order
(B) Scalar Chain
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(C) Stability of tenure of employees

(D) Equity
4 Which way is to be chosen now by Mr. A to speed up the work.
(A) Gang Plank
(B) Scalar Chain
(C) Direct communication
(D) Informal communication
Every year a meeting is organized in the lawns of the Promoter of a company. In this meeting the owner of
the company grants some funds for the benefit of the families of the employees. The employees on the
other hand never resist any change or put excessive demands. But Management is not in the favor of it as
they think to utilize these funds somewhere else instead of spending on employees. The employee turnover
is very high. The employees do not come forward with their ideas after seeing the dull response from the
management side.
5 Which concept of Scientific Management is lacking in this case towards the employees?
(A) Harmony, not discard.
(B) Science, not rule of thumb
(C) Hit or Miss method
(D) Mental Revolution
6 Which principle you would suggest to management to follow?
(A) Discipline
(B) Team spirit
(C) Stability of personnel
(D) Initiative
7 The employees do not come forward with their ideas after seeing the dull response from the management
side. What principle of management is lacking in these lines?
(A) Esprit de corps
(B) Initiative
(C) Discipline
(D) Authority and Responsibility
8 Mr. Y is a middle level manager. He keeps all his subordinates under a lot of discipline. His employees
however complain of wastage of time and efforts as they are spending a lot of time in search of various
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items. Which principle of management is violated here?

(A) Principle of Order
(B) Principle of initiative
(C) Discipline
(D)None of these
9 ZETA Ltd. is a world-renowned retail chain store. The customers here are very much pleased with the
products and services provided in the stores. The customer satisfaction and internal efficiency indicator of
the organization is rated best in the industry. However there have been a few steps taken by the
organization which provide the organization this edge. The organization has used a special type of
software which integrates all the stores and brings uniformity in its billing and working pattern.
Which principle of scientific management is mentioned here?
(A) Harmony not discord
(B) Science not rule of thumb
(C) Cooperation not individualism
(D) None of these
10 Mr. X works on the floor of a mall as a manager. He is very hard working but is unable to produce results
for his organization. His target for last month was a sale of 10 lakh rupees from his floor. However, by the
end of the month the sale was only 8 lakh rupees. He is very regular and takes all the necessary steps to
complete the target. However, his staff is not as competent as he himself is. When he tries to take action
against disobedient employees the top management doesn‘t allow him to do so. They haven‘t given him
the power to fire employees or take any strict action against them.
Which principle of Fayol is violated here by the Organization?
(A) Discipline
(B) Authority and responsibility
(C) Division of work
(D)Principle of order
11 There was disorder, confusion, and chaos in a company as superior in the company do not meet up their
commitments. There is no systematic working in the organization and delay in work due to absence of
rules and regulations. Which principle of management is overlooked in this company?
(A) Discipline
(C) Division of work
(D)Principle of order
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12 Employee of production department is asked to go slow in production to maintain quality standard and at
the same time sales in-charge insisted them to fasten the production to meet the pending orders. This
situation is creating confusion among employees. What would you suggest to follow to get rid of this
situation?
(A) Unity of direction
(B) Unity of command
(C) Unity of Order
(D) Discipline
13 Mr. Z was assigned the task of to know the reasons of failure of the company, he observed and found that
no department is coordinating each other. There is a competition spirit between the departments and giving
priorities to their department goals only. Which principle they are lacking here.
(A) Unity of direction
(C) Unity of Order
(D) Discipline
14 Mr. A sales manager of a company want to give 15% discount to their customer but as per the company
policy he can give only 10%. For this extra 5% he must approach his manager for permission. Which
principle of management is followed by him?
(A) Discipline
(C) Principle of order
(D) Scalar chain
15 Mr. Z is the owner of a printing press. The size of his organization has increased during the recent past.
There are many employees who work in his organization. The organization is considered good and has
earned a lot of reputation in the market. However, when it comes to making key decisions in the
organization related to many things, he never considers the opinions of his subordinates. Even though the
size of the organization has increased yet he tries to take all the key decisions on his own.
Which principle of Fayol has been violated by him?
(A) Centralization and decentralization
(B) Discipline
(C) Scalar Chain
(D) Authority and Responsibility
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ANSWERS FOR CASE BASED QUESTIONS FROM PRINCIPLES OF MANAGEMENT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
B C B A D C B A B B A B A D A
ASSERTION – REASON QUESTIONS: PRINCIPLES OF MANAGEMENT

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below:
1 Assertion: Not only employee- turnover but frequent termination or rotation must be avoided.
Reason: Employee must be provided the feeling of job security. With feeling of insecurity of job, the
employees cannot contribute maximum.
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
Assertion (A)
2 Assertion: The scientific technique of differential piece rate system emphasis on paying different rates of
wages.
Reason: Extra wages paid is to be considered as it minimize the cost of production and achieves
organization goals.
Assertion (A)
3 Assertion: The interest of organization should not supersede the interest of individuals or employees.
Reason: if the objectives of both groups go in different directions then manager should try to reconcile the
individual interest with the organizational goal.
Assertion (A)
4 Assertion: The management principles are developed only after deep and through research work.
Reason: Proper observations and experiments are conducted before developing them. Therefore, they are
in evolutionary in nature.
Assertion (A)
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5 Assertion: Management principles do not act as guidelines for the managers, though these principles are
meant for the managers.
Reason: These principles improve knowledge, ability and understanding of the managers under various
managerial situations.
Assertion (A)
6 Assertion: Scientific management helps to find out the best method or way of performing the job.
Reason: Methods must be the one which brings maximum benefits with minimum cost. So, the
organization objectives must be achieved.
Assertion (A)
7 Assertion: Principle of order is to get order from one superior at one time
Reason: Fayol favored this principle as men and material at fixed place saves time and energy.
Assertion (A)
8 Assertion: Gang plank permits direct communication between the employees working in different
positions without violating the scalar chain.
Reason: Gang plank is the only approach to be followed for the growth organization
Assertion (A)
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9 Assertion: Taylor and Fayol both contributed to developing the principles of management.
Reason: They have some similarities and dissimilarities in their principles. Taylor‘s techniques and
principles are concerned with management efficiency whereas Fayol‘s principles are concerned with
worker‘s efficiency.
Assertion (A)
10 Assertion: Taylor suggested the division of the factory in two departments: planning department and
production department and under them some functional experts to supervise, guide and instruct the worker.
Reason: This will lead to the benefit of specialization. He suggested experts as all the qualities cannot be
found in one person.
Assertion (A)
11 Assertion: Cooperation not individualism is the extension of harmony not discord. It welcomes
suggestions of employees.
Reason: Workers and management will come together and cooperate for the betterment of the
organization. There will be open communication between them and no requirement of trade unions.
Assertion (A)
12 Assertion: Management principles must be modified as per the situation.
Reason: Their application and effect depend upon the nature of organization. It shows which feature of
principles of management.
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Assertion (A)
13 Assertion: Every business have to cope with the changing environment. There are many factors which
impacts business directly or indirectly.
Reason: Principles of management train the managers in implementing the changes in right direction and
at right level in the organization.
Assertion (A)
14 Assertion: A business is creation of society and makes use of resources of society.
Reason: Management principles do not help to perform social responsibilities. It only helps in achieving
organizational objectives.
Assertion (A)
15 Assertion: According to Division of work the whole work is divided into small task or unit of work should
be assigned to one person according to the capacity, qualification and experience of the person.
Reason: When a person is performing a part again and again he will become perfect and get the benefit of
specialization.
Assertion (A)
ANSWERS FOR ASSERTION – REASON QUESTIONS OF PRINCIPLES OF MANAGEMENT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a a d a d a d c c a a a a c a
EXTRA QUESTIONS: PRINCIPLES OF MANAGEMENT:
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Match the following with correct option:

1
Column A Column B
(i) Uniformity in each unit (a)Simplification
(ii) Moves with lines of Authority (b)Standardization
(iii) Related to following of code of conduct (c)Scalar of chain
(iv) Elimination of unnecessary activities (d)Discipline
(A) (i)-a; (ii)-b; (iii)-c ; (iv)-d

(B) (i)-b; (ii)-c; (iii)-d; (iv)-a
(C) (i)-c; (ii)-d; (iii)-a; (iv)-b
(D) (i)-d; (ii)-a; (iii)-b; (iv)-c
2 Column A Column B
(i) Replace ‗I‖ with ‗We‖ (a) Equity
(ii) One head one plan (b) Esprit de corps
(iii) No termination and transfer of employees frequently (c) Unity of direction
(iv) No discrimination on any basis (d) Stability of personnel
(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(B) (i)-b; (ii)-c; (iii)-d; (iv)-a
(C) (i)-c; (ii)-d; (iii)-a; (iv)-b
(D) (i)-d; (ii)-a; (iii)-b; (iv)-c
3 Column A Column B
(i) Decision-making authority is retained by top level (a) Accountability

management.
(ii) Pushing down decision-making authority to middle and (b) Authority

lower levels of management
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(iii) Answerability of the work (c) Centralization
(iv) Right to take decisions (d)Decentralization
(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(B) (i)-b; (ii)-c; (iii)-d; (iv)-a
(C) (i)-c; (ii)-d; (iii)-a; (iv)-b
(D) (i)-d; (ii)-a; (iii)-b; (iv)-c
4
Column A Column B
(i) Related to movements (a) Fatigue study
(ii) Related to rest intervals (b) Method study
(iii) Finds out the best method (c) Time study
(iv) Related to time (d) Motion study
(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(B) (i)-b; (ii)-c; (iii)-d; (iv)-a
(C) (i)-c; (ii)-d; (iii)-a; (iv)-b
(D) (i)-d; (ii)-a; (iii)-b; (iv)-c
5
Column A Column B
(i) Paternalistic style of management (a)Science not rule of thumb
(ii) Proper care in selection and training (b) Mental Revolution
(iii) Don‘t recommend hit and miss method (c) Cooperation not individualism
(iv) Change in attitude of workers and (d) Development of personnel to

management its greatest efficiency
(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(B) (i)-b; (ii)-c; (iii)-d; (iv)-a
(C) (i)-c; (ii)-d; (iii)-a; (iv)-b
29
(D) (i)-d; (ii)-a; (iii)-b; (iv)-c

6 Taylor‘s techniques and principles are concerned with :
(A) Management efficiency
(B) Worker‘s efficiency
(C) Management and worker‘s both efficiency
(D) Team efficiency
7 The objective of mental revolution is:
(A) Authority over the workers
(B) Complete change in the thinking of both workers and management.
(C) Co-operation between workers and management
(D) Follow the management blindly and avoid systematic thinking
8 Taylor insisted on differential piece rate system because
(A) He wants to manipulate the workers
(B) He believes male and female have different capacity of working
(C) He wants to motivate the workers to perform their best
(D) He wants to insult the inefficient workers
9 As per Taylor to increase the efficiency of personnel proper care should be taken even at the time of
selection. (True/ False)
10 Which principle of management states that ―There should be open communication and no need even for
trade union?‖
(A) Harmony, not discord
(B) Cooperation not individualism
(C) Science, not rule of thumb
(D) None of the above
11 Functional foremanship is contrary of :
(A) Unity of order
(C) Esprit de corps
(D) Unity of directions
12 Statement I Authority and Responsibility are attached with each other.
Statement II Authority and Responsibility should not be more or less, should be equal.
(A) Statement I is Correct and II is wrong.
(B) Statement II is Correct, and I is wrong.
30
(C) Both statements are correct.

(D) Both statements are wrong.
13 Statement I Honoring the commitment made by the management for workers is the example of
discipline.
Statement II Discipline is the principle given by F.W Taylor helps in smooth functioning of the
organisation
(C) Both the statements are correct.
(D) Both the statements are wrong.
14 Statement I Chain of authority must be followed in organization.
Statement II It can be avoided in case of emergency.
15 Statement I Gang boss guide and instruct workers about the work.
Statement II Speed boss works on the speed of the workers.
KEY FOR EXTRA QUESTIONS: PRINCIPLES OF MANAGEMENT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b b c d c b b c True b b c a c b
31
CHAPTER 3 BUSINESS ENVIRONMENT

CASE BASED QUESTIONS
1 Consumers are now more conscious about the carbon emission and climate change effects, So they are
choosing products that do not have adverse effects on the environment. In such a scenario, it has become a
challenge for the companies as they have to not only meet the needs of the consumers but also ensure that
their products are safe and environment friendly. As a result, there is growing need for better and advanced
technologies to works as a catalyst in this regard. Identify the relevant feature of business environment
being discussed above.
(a) Dynamic
(b) Complex
(c) Inter-related
(d) Uncertainty
2 Mr. Hari after completing MBA from USA comes to India to start a new business. He launches a new e-
learning platform for senior Secondary School students, which already has an established market in UK
and USA but not in India. Identify the importance of business environment highlighted here.
(a) It helps the firm to identify opportunities and get the first mover advantage
(b) It helps improvement in performance
(c) It helps the firm to deal competition
(d) It helps the firm to adjust and adapt with rapid changes
3 The court passed an order that all schools must have water purifier for the school children. Identify the
dimension of the business environment highlighted in this statement.
(a) Economic environment
(b) Social Environment
(c) Legal Environment
(d) Technological Environment
4 Which component of business environment requires that advertisements of baby food must necessarily
inform the potential buyers that mother‘s milk is the best?
5 As per the directions issued by the Supreme Court, the government passed an order to ban the sale of
tobacco products within the area of 200 meters of all educational institutions. Identify the dimension of the
32
business environment highlighted in this statement

(b) Political Environment
6 Polythene bags are creating many environmental problems, So Government decided to give subsidy to jute
industry to promote this business. Identify the dimension of the business environment highlighted in this
statement.
7 For Covid-19 different vaccines are developed by the Indian and foreign companies such as covishield,
covaxin, moderna, pfizer etc. Identify the dimension of the business environment highlighted in this
statement.
8 A recent rate cut in the interest on loans announced by the banks encouraged Amit, to take a loan from
State Bank of India for expansion of his business. Name the dimension of the business environment
highlighted by this statement.
(c)legal Environment
9 It may be difficult to know the extent of the relative impact of the social, economical , political legal and
technological factors on change in demand for product in the market. Identify the relevant feature of
business environment being discussed above.
(a)Dynamic
(b)Complex
(c)Relativity
(d)Uncertainty
33
10 It is interesting to know that the menu items of the multinational food chains are customized to suit the
general palates of the local people in the region. When McDonald‘s started its business in India in the year
1996, the company went through a complete Localisation strategy. McDonald‘s changed its product menu
to accommodate the vegetable burger given the large vegetarian population. It also altered its store design
and even reduced the product price by close to fifteen per cent. Also, the ―McAloo Tikki burger‖ is not
available anywhere but in the Indian outlets of McDonalds.
Identify the relevant feature of business environment being discussed above.
(a) Dynamic
(b) Complex
(c) Relativity
(d) Uncertainty
11 ‗It is common now to see Internet / Word Wide Web multimedia pages highlighting the virtues of various
products.‘ Name the dimension of the business environment highlighted by this statement.
12 A company manufacturing light bulbs incurred heavy expenditure on scientific Research and Development
and discovered a technology that made it possible to produce an energy efficient light bulb that lasts at
least twenty times as long as a standard bulb. It resulted in growth and profitability of the company.
Identify the dimension of business environment mentioned above
13 Due to recession GDP declined and trade and industries reduced, To overcome this situation, RBI reduced
cash reserve ratio by 0.5%. This related to which dimension of business environment
(c)legal Environment
14 Even after opening up of Indian Economy, foreign companies found it extremely difficult to cut through
the bureaucratic and red tapism in government offices. This discourages them from investing in India.
34
Identify the dimension of environment mention in above paragraph.

(c)Political Environment
15 ‗Mamta Rice Food Ltd‘ is a well know rice producing company. The sales have been falling down from
the beginning of the year. The managing director Mr. Bhuvan is worried about this situation. With a view
to find out the solution of this problem he made a team to find out the reasons for downfall of sales. The
team conducted the survey and found that, due to availability of other eatable substitute the taste of people
is diverted from rice. Identify the dimension of Business Environment discussed in the above case
(c)Political Environment
ANSWERS FOR CASE BASED QUESTIONS FROM BUSINESS ENVIRONMENT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
c a c c c b d a b c d d a c b
ASSERTION – REASON QUESTIONS: BUSINESS ENVIRONMENT

35
below:
1 (A)Business environment is the surrounding in which business exist
(R)Economic, social, political, technological ,legal and other outside forces of business enterprise are part
of business environment
(a) Both Assertion(A) and Reason(R) are True and Reason(R)is the correct explanation of(A)
(b) Both Assertion(A) and Reason(R) are True and Reason(R)is not the correct explanation of(A)
(c) Assertion(A) is True but Reason(R) is False
(d) Assertion(A) is False but Reason(R) is True
2 (A)Business Environment scanning refers to complete awareness and understanding of business

environment
(R)Efficiency of management helps to increase the profit of enterprise
3 (A)Business environment includes both specific and general factors
(R)specific forces affect business enterprises indirectly
4 (A)All the forces and factors of business environment is are inter-related
(R) it is very difficult to predict the changes of business environment
5 (A)Business environment is dynamic
(R) Business environment is highly flexible and keep changing
36

6 (A) All the forces and factors of business environment is are inter-related
(R)It is very difficult to know the impact business environment on the companies
7 (A)Understanding business environment helps the firms to get first mover advantage
(R)Environment scanning helps the firms to identify competitor‘s strategies
8 (A)A business man can influence or change the components of general environment
(R) A business man has to change his business policies according to the changes taking place in general
environment
9 (A)Economic environment refers to all the forces and factors which influence the economy of a country
(R)Economic environment constitute all the factors related to government affairs
10 (A) Economic environment is one of the dimensions or component of the Social environment
(R) Gross Domestic Product, National Income, Per Capita Income, Inflation, Monetary policies, Fiscal
policies, Profit earnings, rate of interests etc...are the main aspects of economic environment
37

11 A)Social environment is one of the dimension of the business environment
(R) Social environment include social factors or forces like change in inflation rate, change in interest rate,
change in taxes, stock market indices etc...
12 (A) A rise in the disposable income of people due to increase in the gross domestic product of a country
creates increasing demand for products
(R) Social trends present various opportunities and threats to business enterprises.
(a) Both Assertion(A) and Reason(R) are True and Reason(R)is the correct explanation of (A)
13 A) Technological environment includes forces relating to scientific improvements and innovations which
provide new ways of producing goods and services and new methods and techniques of operating a
business
(R) An adequate knowledge of rules and regulations framed by the Government is a pre-requisite for better
business performance
14 (A) Legal environment includes various legislations passed by the Government administrative orders
issued by government authorities, court judgments as well as the decisions rendered by various
commissions and agencies at every level of the government— center, state or local
(R) An adequate knowledge of rules and regulations framed by the Government is a pre-requisite for better
business performance
38
15 (A) Political environment includes political conditions such as general stability and peace in the country
and specific attitudes that elected government representatives hold towards business.
(R) The attitudes of government officials towards business may have either positive or negative impact
upon business
ANSWERS FOR ASSERTION – REASON QUESTIONS FROM BUSINESS ENVIRONMENT
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a b c b a b b d c d b b b a a
EXTRA QUESTIONS: BUSINESS ENVIRONMENT

39

1 1 Business environment A Investors
2 Specific environment factors of business B Sum total of all factors which operate
outside the business
3 General environment factors of business C Business environment keeps on
changing
4 Dynamic nature D It is very difficult to predict future
happenings
5 Uncertainty F Social factors
a A,B,C,D,E b B,A,E,C,D c E,D,A,C,B d E,C,D,A,B
1 Economic environment A Traditions of people

2 Political Environment B Customer
3 Social environment C Innovation
4 Specific environment forces of D Government attitude towards
business business
5 Technological environment E Inflation rate
a Ab B c Dd E
, , , ,
B E A D
, , , ,
D C B A
, , , ,
E D C B
, , , ,
C A E C
40
3
1 Technological Environment A Complex and inter related
2 Specific environment factors of B Firm can identifies opportunities
business
3 Elements of business environment C Court orders
4 Business environment scanning D New methods and techniques of
production
5 Legal environment E Customers
a E,D,A,B,C b D,A,B,C,E c D,E,A,B,C d A,B,D,E,C
4
1 Social environment A Interest rates
2 Economic environment B Scientific improvements
3 Political environment C Values
4 Technological environment D Administrative orders
5 Legal environment E Stability of government
a E,D,A,B,C b C,A,E,B,D c E,D,A,B,C d E,D,A,C,B

5
1 Relativity A Suppliers
2 Economic environment B Societies expectation from business
3 Legal environment C Companies Act 1956

4 Specific forces of business environment D Disposable income
5 Social environment E Business environment differs from
country to country
a E,D,C,A,B b A,B,D,E,C c C,A,E,B,D d A,B,C,D,E

6 Statement I: Business Environment is aggregative in nature
Statement II: Business environment include only specific factors
(a)Statement I is correct and II is wrong
41
(b)Statement II is correct and I is wrong

(c)Both the statements are correct
(d) Both the statements are incorrect
7 Statement I: Different elements of business environment are inter related
Statement II: Business environment is dynamic in nature
8 Statement I: Political environment include various legislation passed by government
Statement II: Social environment include education system and literacy rate in a country
(d) both the statements are incorrect
9 Statement I: Business environment include both general and specific forces
Statement II: Business environment is relatively easier to understand its parts and but difficult to grasp in
its totality
10 From the following two statements choose the correct options
Statement I: The understanding of business environment enable the firm to identify opportunities and
threats
Statement II: The analysis and understanding of business environment doesn‘t help the firm in policy
formulation and planning.
11 Which of the following is not a component of specific forces of the business environment?
(a) Customers
42
(b) Suppliers
(c) Competitors
(d) None of the above
12 Increased life expectancy of people and growing awareness about healthcare has led to an increase in the
demand for healthcare products and services in the country. Identify the feature of business environment
being described in the above case.
(a) Dynamic nature
(b) Uncertainty
(c) Relativity
(d) Interrelatedness
13 The term business environment means the totality of all individuals and other forces that are inside a
business but that are potentially affect its business performance
(a)True
(b)False
14 Business environment consists of five important dimensions including economic, .............., social,
..............and Political.
(a)legal , commercial
(b) innovation , traditions
(c)Natural ,Technical
(d)Technological, Legal
15 Political environment include political conditions such as general stability and peace in the country,
various legislations passed by the government and decisions rendered by various commissions and
agencies at every level of the government.
(a) True
(b) False
KEY FOR EXTRA QUESTIONS: BUSINESS ENVIRONMENT

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b d c b a a c b c a d d b d b
43
CHAPTER 4 PLANNING
1 After completing a diploma in Bakery and Patisserie, Payal sets up a small outlet at Goa Airport to provide
a healthy food option to the travelers. To begin with, she has decided to sell five types of patties, three
types of pizzas and low sugar muffins in four flavors. Thus, by deciding in advance what to do and how to
do, she is able to reduce the risk of uncertainty and avoid overlapping and wasteful activities. But
sometimes her planning does not work due to some unavoidable circumstances like cancellation of flights
due to bad weather conditions, government alert etc. which adversely affects her clients.
In context of the above case: 1. Identify one of the limitation of planning which adversely affects Payal‘s
business.
A. Planning reduces creativity
B. Planning may not guarantee success
C. Planning may not work in dynamic environment
D. Planning involves huge cost.
2 Two friends –Ramesh and Krishna are working as managers in different companies.
One Sunday, both of them together set off on travelling. Both of them began talking about activities going
on in their respective companies. Mr. Ramesh said that during those days he was busy with the job of
planning function. Also he told that he was planning in such a way that the other managerial functions
should be completed under the framework of plans prepared by him:-
Identify the feature of planning discussed in the above para?
A. Planning focus on achieving objectives
B. Planning is a primary function
44
C. Planning is pervasive
D. Planning is continuous
3 Mrs. Sanjana decided to double the production of her company. Now she is going to translate her decision
into reality. Here she is also thinking how many additional\extra machines and workers will be required to
achieve the production target. Her dream will be possible to be realized only after the arrangement for
these extra resources is done.
Which stage of planning process is being completed by Mrs. Sanjana in the above event?
A. Evaluating alternative course
B. Selecting an alternative
C. Implementing the plan
D. Follow up
4 Identify the correct sequence of steps, involved in planning
i. Selecting the best course of action
ii. Implementation of plan
iii Establishment of objectives
iv Evaluating alternative courses of action
v. Identifying alternative courses of action
Choose the correct option:-
A. (i), (ii), (iii), (iv) and (v)

B. (iii), (v), (iv), (i) and (ii)
C. (v), (iv), (iii), (ii) and (i)
D. (iii), (v), (iv), (ii) and (i)
5 Mr. Prem is working as the top level manager in a business organization. He has been given the job of
preparing the plans for the whole company. Mr. Prem is an expert in making a correct forecast. At first, he
looks for the different options to complete every job, and then on the basis of their evaluation selects most
suitable option. In this way by taking correct decision and beating his competitors, he is moving forward.
To which particular point of the ‗Importance of planning‘ is the above case related:-
A. Planning facilitates decision making
B. Planning provides direction
C. Planning promotes innovative ideas
D. Planning establishes standard for controlling
45
6 ‗Planning restricts the initiative of the employees and compels them to work in an inflexible manner‘. This
statement shows one of the limitations of planning
Options are:-
A. Planning may not work in dynamic environment
B. Planning leads to rigidity
C. Planning may not guarantee success
D. Planning involves huge cost
7 Mr. Neeraj Chopra won gold medal in recent Olympics held in Japan after he has set the goal. He learned
many techniques from foreign coaches also. Which of the following steps of planning is involved here?
A. Development of premises
B. Listing out alternatives
C. Evaluating alternatives
D. Setting objectives.
8 Miss. Prakriti is a production manager in Nepal Chemicals Ltd. She made a plan for her department after
spending so many sleepless nights.
Choose the correct option given below:
A. She is involved in a mental exercise
B. She is involved in forecasting
C. She is not involved in any physical activity
D. All the above
9 Alpha Ltd. has a plan of increasing profit by 20%. The company spent lot of time and money to frame and
implement this plan. The competition starts increasing, so it could not change its plan to beat its
competitors because huge amount of money is already spent. Some limitations of planning being
highlighted in the above case.
i) Planning involve huge cost.
ii. Planning is time consuming.
iii. Planning may not work in dynamic environment.
iv. Planning reduces creativity
choose the correct option:-
A. i, ii, iii, iv
B. only i & ii
C. only i,ii,iii
46
D. only ii & iii
10 Mr. Mohit is a finance manager in MM Ltd. He guess that this year the company may earn Rs.150
crores profit after tax. He is involved in ___________
A. Planning
B. Setting Objectives
C. Mental Exercise
D. None of these
11 Mr. Madan is working as the sales manager in the ‗Sharda Shopping Mall‘. He is preparing a sales plan for
his department. He is taking the help of forecast as the base of the form of his sales plan. He is of the view
that a good plan can be prepared by learning about the possibilities of future events and conditions through
the medium of forecast. The plan being prepared by Mr. Madan is very important as the production plan
and other plans of business are prepared on this very basis.
Identify the feature of planning in above case:-
A. Planning is continuous
B. Planning is goal oriented.
C. Planning is pervasive
D. Planning is futuristic
12 Mrs. Ritu is the General Manager in ‗Ritu Sales Ltd‘. The company has 56 Stores in the whole of India,
Through which the company makes it good reach to the customers. The company‘s goods have a good
hold in the market. In order to avail of this situation. Mrs. Ritu had decided to increase the number of
stores to 300. The information of this decision has been communicated to all the departments; namely,
Finance, purchase, sales, production, Personnel etc.
Identify the stage of planning process which is being completed by Mrs.Ritu
A. Setting objectives
B. Developing premises
C. Identifying alternative courses of action
D. Evaluating alternative course of action
(1)The Government of India is putting more stringent measures on consumption of tobacco products in the
47
country. So ITC Ltd. decided to decrease its sale of cigarettes by 5% in the year 2021-22.
(2)In order to get a maximum share in the FMCG sector ITC is exploring various alternatives like entering
into tie-up with existing players in the market, exporting goods to other Asian countries, spending more
money on brand building measures, technical collaboration with foreign companies to launch new
products in the country etc.
(3)After a lot of discussion the company decided to spend more money on brand building activities.
(4)The company started huge advertising campaign by spending Rs.100 crores. Even ITC is seriously
thinking to separate its Hotels business from FMCG because of this corona pandemic.
13 Developing planning premises - identify the correct sentence from the above para.
A. Sentence 4
B. Sentence 2
C. Sentence 1
D. Sentence 3
14 Listing out various alternative courses of action - identify the correct sentence from the above para.
A. Sentence 4
B. Sentence 2
C. Sentence 1
D. Sentence 3
15 Implementation of the plan - identify the correct sentence from the above para.
A. Sentence 4
B. Sentence 2
C. Sentence 1
D. Sentence 3
ANSWERS FOR CASE BASED QUESTIONS FROM PLANNING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
C B C B A B D D C D D A C B A
48
ASSERTION – REASON QUESTIONS: PLANNING

below:
1 Assertion (A) One can be sure about future course of actions by making good plans.
Reason (R ) Planning brings certainty in future course of actions of an organisation
(A) Both Assertion(A) and Reason(R) are True and Reason(R)is the correct explanation of (A)
(B) Both Assertion(A) and Reason(R) are True and Reason(R)is not the correct explanation of(A)
(C) Assertion(A) is True but Reason(R) is False
(D) Assertion(A) is False but Reason(R) is True
2 Assertion (A): Planning is futuristic.
Reason (R): In planning process an attempt is made to peep into the future.
3 Assertion (A): Managers became complacent because they made successful plans in the past.
Reason (R): Planning leads to rigidity.
49

4 Assertion (A) : Planning premises mean assumptions about the future,
Reason (R): The success or failure of a plan depends on its premises.
5 Assertion:-Planning and forecasting both are related to future period

Reason:- Forecasting is helpful not only in planning but in the entire management process
6 Assertion (A): Planning is a goal-oriented activity.
Reason (R): If there is no goal to be achieved then planning is not required at all.
7 Assertion (A): Planning seeks to bridge the gap between where we are and where we want to go.
Reason (R) : Planning is deciding in advance what to do and how to do.
8 Assertion (A): Planning is pervasive.
Reason(R): It is an exclusive function of any particular department.
50

9 Assertion (A): Plans once made they are irreversible in nature as so much resources being utilized to
make them.
Reason(R): Making of plans involves huge cost.
10 Assertion (A): Planning provides the goals or standards against which actual performance is measured.
Reason(R): By comparing actual performance with some standard, managers can know whether they
have actually been able to attain the goals. If there is any deviation it can be corrected.
11 Assertion (A): Planning shows the way to deal with changes and uncertain events.
Reason(R) : Planning decides in advance the tasks to be performed.
A. Both A and R are true and R is the correct explanation of A.
B. Both A and R are true and R is not the correct explanation of A.
C. A is true but R is false.
D. A is false but R is true.
12 Assertion (A) Planning does not guarantee success.
Reason(R) It is a tool to be used with caution as It provides a base for analyzing future courses of
action.
A. Both A and R are true and R is the correct explanation of A.
B. Both A and R are true and R is not the correct explanation of A.
C. A is true but R is false.
D. A is false but R is true

13 Assertion (A) Continuity of planning is related with the planning cycle.
51
Reason (R) A plan is framed, it is implemented, and is followed by another plan and so on.
14 Assertion(A) : Planning is a continuous process as it involves series of steps
Reason(R) : Each and every step is necessary to be performed in planning process.
15 Assertion (A): Sometimes planning fails inspite of the best efforts of Management.
Reason(R): while planning assumptions are to be taken for future which is uncertain.
A. Both A & R are false
B. Both A & R are true
C. A is true but R is False
D. A is false but R is true
ANSWERS FOR ASSERTION – REASON QUESTIONS OF PLANNING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
C A B A B A B C A A A B A D B
52
EXTRA QUESTIONS: PLANNING

1 Choose the odd one out:-
a. Planning is a continuous process
b. Planning is futuristic
c. Planning is a primary function
d. Planning is time consuming process
2 While planning forecasts regarding the demand for a particular product, policy changes, interest rates, price
of capital goods, tax rates are known as:-
a. Objectives
b. The course of action
c. Alternatives
d. Premises
53
3 Arrange the following steps in a order:-

1. Implementing the plan
2. Setting objectives
3. Evaluating alternatives
4. Follow up
5. Developing premises
6. Identifying alternative course of action
7. Selecting an alternative
a. 2,5,6,7,4,3,1
b. 2,5,6,3,7,1,4
c. 2,4,3,1,7,5,6
d. 4,3,2,1,5,7,6
4 In which step of planning process the planner make predictions and assumptions regarding future?
a. Follow up
b. Selecting a best course of action
c. Developing premises
d. Implementation of plan
5 If ____________is not taken into consideration, conditions in the environment may change and all
business plans may go waste.
a. Time frame
b. Resources
c. Alternatives
d. Objective
6 Match the following:

Column A Column B
1. Planning focuses on achieving objectives A) Planning cycle

2. Planning is a primary function of management B) Planning is purposeful
3. Planning is pervasive C) Primacy of planning
4. Planning is continuous D) It is not an exclusive function of top
54
management.
a) B C D A b) D A B C C) C A B D d) D B C A
7 Match the following:
Column A Column B
1. First step of planning process i) Futuristic
2. Characteristics of planning ii) Planning is costly affair.
3. Limitation of planning iii) Setting objectives
a. 1-iii, 2-i, 3-ii

b. 1-iii, 2-ii , 3-i
c. 1-i , 2-ii, 3-iii
d. 1-ii, 2-i , 3-iii
8 Out of the following which one is the objective of planning:-

1. Forecasting
2. Optimum utilisation of resource
3. Fixing the plan for implementation
4. Giving direction for all the activities
a. 1 & 2 only
b. All of the above
c. 1,2,3
d. 2 & 3 only
9 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
55
d. Planning facilitates to co-ordination among departments and individuals in the organization.
10 Planning seeks to bridge gap between1____________

a. Past & present position
b. Past & future position
c. Both a & b
d. None of the above
11 Match the ‗Importance of Planning’ in Column-I with their respective statements in Column-II:
Column-I Column-II
(a) Planning provides direction (i) Planning shows the ways to deal with changes.
(b) Planning reduces the risk of uncertainty. (ii) Planning helps in avoiding confusions and
misunderstanding
(c) Planning reduces overlapping and wasteful (iii) Planning clarifies ‗how work is to be done‘.
activities.
A. (i), (ii), (iii)

B. (iii), (i), (ii)
C. (iii), (ii), (i)
D. (i), (iii), (ii)
12 Identify which of the following statement is correct and which is incorrect.

(a) Planning basically involves decision-making
(b) Planning is a very simple task.
(c) Planning is a fundamental function of management and all other functions of management are greatly influenced
by planning process.
(d) Planning involves low cost.
Select the correct answer from the options given below:-
A.(a)correct (b)correct (c) correct (d)correct
56
B.(a)incorrect (b)correct (c)incorrect (d)correct
C.(a)correct (b)incorrect (c) correct (d)correct
D.(a)correct (b)incorrect (c) correct (d)incorrect
13 Which of the following is not true with reference to planning?

a) Planning is a pre-requisite for controlling.
b) Planning does not lead to rigidity
c) Planning improves creativity
Which one is the correct option:-
A. Only a)
B. b) & c)
C. c) & a)
D. All of the above
14 Identify which of the following statement is correct (right) and which is incorrect (wrong).
Statement-1. Planning is not a function of every manager.
Statement-2. Ascertaining the future is also known as planning.
Select the correct answer from the options given below:
A. 1 - Wrong
2 – Wrong
B. 1 - Right
2 – Right
C. 1 - Right
2 – Wrong
D. 1 - Wrong
2 - Right
15 Statement I: Planning and controlling are two side of the same coin
Statement II: Planning is a pervasive function.
A. Statement I and II both are true.

B. Statement I is correct but Statement II is false.
C. Statement II is correct but Statement I is false.
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D. Statement I and II both are false.
KEY FOR EXTRA QUESTIONS: PLANNING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
d d b c a a a b b d b d a a c
CHAPTER 5 ORGANISING
Leo Cloth Ltd. produces only fabrics. After experiencing great success in the fabric industry, the
directors of Leo Cloth Ltd. acquired three new manufacturing (Electronics, Mobile Phones,
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Cement) units and began selling a variety of products in the market. They decided that each unit
would be led by an individual with the ability and competence to handle responsibility. Only
female candidates will be considered for the vacant position.
1 State the type of organisational structure, Leo Cloth Ltd, had followed when they were producing only
fabric.
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
2 State the organisational structure suitable to Leo Cloth Ltd. after they plan to add more line of products.
(a) Functional
(b) Divisional
3 If organizations want their departments or divisions to be self-contained and independent then which
structure is suitable?
4 Organizations having plans of diversification and expansion, must adapt:

"In every organisation, managers are assigned a great deal of work, and no manager can do it all
alone. He divides the work among various individuals working under him based on their
qualifications and divides the tasks among them. The manager starts by delegating his
59
responsibilities to his subordinates. He purposefully delegated some of his responsibilities to his

subordinates. Following the delegation of responsibilities, the manager delegated some of his
authority, i.e., the power to make decisions, to his subordinates so that the responsibilities could be
carried out properly. The manager establishes accountability to ensure that his subordinates
perform all work effectively and efficiently in the expected manner. "
5 Name the concept discussed in the above para.

(a) Delegation
(b) Decentralization
(c) Organising
(d) Planning
6 Responsibility refers to:

(a) Answerable for non-completion of task
(b) Power to make decisions
(c) Obligations to do a work
7 Authority refers to:

(a) Power to take decisions independently
(b) Obligation to do a task
(c) Answerable for non-completion of task
8 What cannot be delegated?

(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
CORRECT OPTION GIVEN BELOW EACH QUESTION:
Rahul, Vinay, and Tarun have decided to start a toy manufacturing company. They identified the following
major activities that they must complete:
60
(i) Purchasing raw materials
(ii) Purchasing machinery
(iii) Toy production
(iv) Arrangement of finance
(v) Toy sales
(vi) Identifying areas where they can sell their toys
(vii) Recruitment of employees
They believed that four managers should be appointed to oversee the work in order to make it more
efficient.
(a) Production (b) Finance (c) Marketing (d) Personnel

9 Identify the function of management involved in above mentioned para.
(a) Planning
(b)Organising
(c)Staffing
(d) Directing
10 State the first step of the process of that function

(a) In order to facilitate the work they thought that four managers should be appointed.
(b) They identified the main activities.
11 By grouping the activities in four departments, the manager is performing which step of process?
(a) Assignment of Duty
(b) Reporting Relationship
(c) Departmentalization
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12 The steps of process of that function, which is not followed in above para is:
(a) Identification of activities
(b) Establishing reporting relations
(c) Grouping of activities or departmentalization
13 Janta Foods Ltd. is a company that sells 'Noodles.' Its registered office is in Kolkata, its manufacturing unit
is at Solan, and its marketing department is in Delhi. Which type of organisational structure should the
company adopt to achieve its target?
(a) Non-Functional Organisation Structure

(b) Functional Organisation Structure.
(c) Planning Organisational Structure
(d) None of the Above
Mahindra Tech Ltd. has grown in size. It was a market leader but with changes in business environment
and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts
delegating some of his authority to the General Manager, who also felt himself overburdened and with the
approval of CEO disperses some of his authority to various levels throughout the organisation
14 Identify the concept of management discussed above?
(a)None of the Below
(b)Centralization
(c) Decentralization
(d) Privatization
15 What is the key to the Managerial Post?
(a) Responsibility
(b) Accountability
(c) Authority
(d) None
ANSWERS FOR CASE BASED QUESTIONS FROM ORGANISING

62
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
a b b b a a a c b b c b b c c
ASSERTION – REASON QUESTIONS: ORGANISING

below:
1 ASSERTION (A) : Organisation structure is the outcome of the organising process.
REASON (R) : Organising leads to the proper usage of all material, financial and human resources.
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Assertion (A)
2 ASSERTION (A): The superior-subordinate relation is clearly defined in organising.
REASON (R): Each manager knows very clearly to whom he can give orders and from whom he has to
receive orders.
Assertion (A)
3 ASSERTION (A): The first step in the process of organizing involves identifying dividing the work.
REASON (R): Once work has been divided in to small and manageable activities then those activities
which are similar in nature are grouped together called departments.
Assertion (A)
4 ASSERTION (A): Divisional Structure is suitable for those business enterprises where a large variety of
products are manufactured using different productive resources.
REASON (R) : It leads to minimal duplication of efforts which results in economies of scale and the lower
cost.
Assertion (A)
5 ASSERTION (A): Decentralization has narrow scope as it is limited to superior and his immediate
subordinate.
REASON (R): Decentralization is an optional policy decision and is done at the discretion of the top
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management.
Assertion (A)
6 ASSERTION (A): The span of management to a large extent give shape to the organizational structure.
REASON (R): Span of management refers to the number of subordinate that can be e ffectively managed
by a superior.
Assertion (A)
7 ASSERTION (A): Decentralization develops managerial talents for future.
REASON (R): In a decentralized organisation decision-making authority is given to middle and lower
level management.
Assertion (A)
8 ASSERTION (A): Functional Structure leads to minimum duplication of efforts.
REASON (R): In this type of structure its easy to fix accountability.
Assertion (A)
9 ASSERTION (A): Delegation refers to the downward transfer of authority from a superior to a
subordinate.
REASON (R): It is a prerequisite to the efficient functioning of an organization, because it enables a
manager to use his time on high priority activities.
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Assertion (A)
10 ASSERTION (A): Divisional structure is suitable for single or one type of product manufacturing
companies.
REASON (R): In Divisional Structure all the activities related to one type of product are grouped under
one department.
Assertion (A)
11 ASSERTION (A): Decentralization can be defined as even and systematic distribution of authority at
every levels of management.
REASON (R): An organisational structure clearly defines the levels of management and span of control
under each level.
Assertion (A)
12 ASSERTION (A): Responsibility always flows downwards from superior to subordinate.
REASON (R) : Responsibility is the obligation of a subordinate to properly perform the assigned duty.
Assertion (A)
13 ASSERTION (A): Delegation of authority is an important part of organizing.
REASON (R): Delegation not only reduce the work load of managers, but it also helps them to use and
realize their full potential for more creative work.
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Assertion (A)
14 ASSERTION (A): In the organising function, there are very few chances of duplication of work or
overlapping of work.
REASON (R): With the process of delegation the managers can pass all their routine work to the
subordinate and concentrate on important work.
Assertion (A)
15 ASSERTION (A): A Functional Structure leads to occupational specialization since emphasis is placed on
specific function.
REASON (R): This promotes efficiency in utilization of manpower as employees perform similar tasks
within a department and are able to improve performance.
Assertion (A)
ANSWERS FOR ASSERTION – REASON QUESTIONS FROM ORGANISING
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b a a c d a a c a d b d a b a
EXTRA QUESTIONS: ORGANISING

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1
A B
a) Functional structure I Tall or Wide structure
b) Divisional structure II Creation of organising structure
c) Organising process III Producing diversified products
d) Span of management IV Producing single line products
a II III IV I b IV II III 1
c III II 1 IV d IV III II I
2 A B
a) Authority I Accountability
b) Absolute II Pushing down decision-making authority
c) Decentralisation III Delegation
d) Abdication IV Right to take decisions
a IV I II III b IV II III 1
3
A B
a) Span of management I Divisional structure
b) Duplication of activities II Delegation
c) Responsibility III No. of subordinates managed by a manager
d) Top level management is able to IV Obligation to perform an assigned task
concentrate on more important tasks
a II III IV I b III I IV II
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4 A B
a) Benefits of specialisation I Accommodate changes and ensures smooth
transition.
b) Clarity in working relation-ships II Avoids over-lapping and duplication of
activities
c) Optimum utilization of resources III Systematic allocation of jobs among the work
force
d) Adaption to change IV It helps in creates hieratical order
a II III IV I b IV II III 1
c III IV II I d IV III II I
5 A B
a) Identification and division of work I Who should report to whom
b) Departmentalisation II A proper match is to be made between the
nature of job and the ability of an individual
c) Assignment of duties III Those activities which are similar in nature are
grouped together.
d) Establishing authority and responsibility IV The burden of work can be shared among the
relation-ships employees.
a IV III II I b IV II III 1
c III II 1 IV d IV I II III
6 Statement – I : The superior –subordinate relation is clearly defined in organizing
Statement – II: Organising function leads to specialization
Choose the correct option from the option 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.
7 Statement – I: Organisational structure clearly defines the levels of management and span of control under
each level.
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Statement – II: A tall structure has a wide span of management.

8 Statement – I: The decisions are taken much faster in functional structure, because there is no
dependence on other departments for taking decision.
Statement – II: Functional structure results in economies of scale and lowering of cost as it leads to
minimum duplication of efforts.
9 Statement – I : Accountability can be delegated
Statement – II: Responsibility can be delegated completely.
10 Statement – I : Decentralisation is an extension of delegation.
Statement – II: Delegation is optional and Decentralisation is necessary in every organisation.
11 Arrange the following steps in the process of organizing in the correct sequence
(a) Assignment of duties
(b) Departmentalisation
(c) Identification and division of work
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(d) Establishing reporting relationship

Choose the correct option
(A) (a), (c), (b), (d)
(B) (b), (a), (c), (d)
(C) (c), (b), (a), (d)
(D) (d), (c), (b), (a)
12 Arrange the following steps in the delegation process in the correct sequence.
(a) Manager shares some of his authority
(b) Manager deliberately passes some of his responsibilities to his subordinate.
(c) Manager creates accountability
Choose the correct option
(A) (b), (c), (a)
(B) (b), (a), (c)
(C) (a), (c), (b)
(D) (c), (a), (b)
Read the passage given below and answer Q.NO.13 TO 15 questions
BCR Ltd. is a company manufacturing cosmetics which has enjoyed a predominant position in business,
has grown in size. Its businesses are very good till 1991. But after that, new liberalization and globalization
policy which leads to entry of MNC‘s in the sector. This results a decline in the market share of BCR Ltd.
The company had followed a policy of centralized decision making. The lower and middle level managers
have no right to take even minor decision. Before 1991, this business model had served the company very
well as consumers have no choice. But now the company is under pressure to reform.
Now the company decided to expand its market by adding retail and textile business into their product line.
Company also decided to change their policy of decision making by giving authority to middle and lower
level managers to take decision in routine and minor matters. This helps the company to take quick
decision and prepares the managers working at lower and middle level to perform the task of top level. The
top level managers are not overburdened with responsibilities and authority as they systematically pass the
authority and responsibilities at different levels and they become free to concentrate on core and important
issues.
13 Which organizational structure is suitable for the company before 1991?
(a) Divisional Structure
(b) Functional structure
(c) Informal Structure
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(d) None of these

14 Which organizational structure is suitable for the company now?
(a) Divisional Structure
(b) Functional structure
(c) Informal Structure
(d) None of these
15 Which concept of management is going to apply in their organisation by changing the policy of decision
making by top management?
(a) Delegation of Authority
(b) Centralization
(c) Decentralisation
(d) Span of management
KEY FOR EXTRA QUESTIONS: ORGANISING
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
d a b c a c a b d a c b b a c
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CHAPTER 6 MARKETING
Rohit. Sania and Bindu were friend‘s college days and now they are doing different kind of business. They
regularly meet and discuss their business idea an exchange notes on customer satisfaction, marketing
efforts, product designing, selling techniques, social concerns etc. In one of the meetings. Rohit drew the
attention of Sania and Bindu towards the exploitation of consumes. He told that most of the sellers were
exploiting the consumers in various ways and were not paying attention towards the social, ethical and
ecological aspects of marketing, whereas he was not doing so. Sania told that they were under pressure to
satisfy the consumers, but stated that the consumers would not buy or not buy enough unless they were
adequately convinced and motivated for the same.
Bindu stressed that a company cannot achieve its objectives without understanding the needs of the
customers. It was the duty of the businessmen to keep consumer satisfaction in mind because business is
run by the resources made available to them by the society. He further stated that he himself was taking
into consideration the needs of the consumers.
1 Bindu stressed that ‗a company cannot achieve its objectives without understanding the needs of the
customers.‘ What marketing management Concept or Philosophy that Guided by Bindu?
a) Societal marketing concept
b) Selling concept
c) Marketing concept
d) Production concept
2 ―Most of the sellers were exploiting the consumers in various ways and were not paying attention towards
the social, ethical and ecological aspects of marketing‖.
Which marketing concept or philosophy is imparted by Rohit?
a) Societal marketing concept
b) Product concept
d) Production concept
3 Sania stated that ―the consumers would not buy or not buy enough unless they were adequately convinced
and motivated for the same‖. Identify the marketing Philosophy is quoted here.
a) Production concept
b) Product concept
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d) Selling concept
4 ―Timex‖ watch manufacturing company is renowned company marketing watches. It performs various
activities like, market analysis, product designing or merchandising, packaging, warehouses, branding
pricing, promotion and selling. The company maintains good customer relations through various follow up
activities. This helps the company in procuring repeat sales orders.
Name the concept related to the activities mentioned in the above paragraph.
a) Selling
b) Marketing
c) Production
d) Promotion
5 ITC Started is business with Tobacco Industry later on it is entered in Hotel Industry, Consumer goods
Industry, Stationery, etc. ITC assured quality to consumer and kept Company‘s name as its identity. This
helps the customers in product identification and hence ensured quality. It also built up their confidence
and help in increasing their level of satisfaction.
Which element of marketing mix related to ITC business?
a) Place mix
b) Price mix
c) Product mix
d) Promotion mix.
6 Cracker Ltd, a fire cracker manufacturing company launched some new products on Eve of Diwali which
attracted many buyers. To meet the increased demand, the company employed workers from nearby
village. Although the product was great demand, appropriate safety warnings for use were not mentioned
on the packets that led to many accidents.
What important product related decision that was not taken into the consideration by the company?
a) Branding
b) Labeling
c) Packaging
d) Trade mark
Surya intends to start an enterprise that produces chocolates. Initially, in order to assess the taste and
preferences of the people about the chocolates. He used social media and online surveys. Thereafter, she
74
prepared a detailed SWOT (strengths, weaknesses, Opportunities and threats) analysis of his enterprises to
devise a strategy that will give him an edge over the competitors. Based on his analysis of the market, he
decided to launch sesame and jaggery based chocolates under the brand name ‗Desi Delight‘. He has
decided to fix up the price of chocolates relatively at lower level in the beginning and later on as the
demand picks up he revise the prices.
7 Identify the element of marketing mix being taken into consideration by Surya.
a) Price and promotion
b) Promotion and Product
c) Product and place
d) Product and price
8 Surya used social media and online surveys to gather information , is examples for_______
a) Product designing and development
b) Market research
c) Market planning
d) Promotion
9 Cadbury Chocolates have purple packaging on all its Chocolates.
Which Functions of packaging is emphasized here?
a). Protection
b). Convenience
c). Identification
d). Innovation
10 Ajith has decided to set up a small factory to manufacture hand wash and toilet soap in rural area of Bihar.
In order to promote the products, initially, he plans to distribute small sachets of the hand wash as free
samples, besides deploying a team of salesmen to sell the product door to door in different parts of the city.
Identify the tools of promotion being taken into consideration by Ajith.
a). Sales promotion & Advertising
b) Personal selling & Public relation
c).Sales promotion & Personal selling
d) Personal selling & Advertising
11 Rose company which sells beauty products. The company has been the market leader in this segment for
the last ten years. However, the sales of its fairness cream have come down due to cases of allergic
reactions reported by the users from different parts of the country. The company has been able to make
amendments to the formula to make their product safe for everybody. Its incapability to communicate with
75
its customer has resulted in the loss of its brand value.

Which element of promotion mix should the company use to regain its lost image?
a) Personal selling
b) Advertisement
c) Public Relation
d) Sales promotion
12 Mr. Smart is an apple fruit vendor in Purna Market, Visakhapatnam He divided all his apples into three
different baskets based on size and colour of apples. Name the function of marketing done by Mr. Smart.
a) Branding
b) Standardisation
c) Grading
d) Classification
13 Most of the companies are using Amazon, Flipkart, Snapdeal etc. for selling their products directly to
customers. It helps in eliminating wholesalers and retailers to sell their products.
Identify the element of marketing mix affected by it.
a) Product Mix
b) Price Mix
c) Promotion Mix
d) Place Mix
14 Malaysian budget airline group SKY Europe announced discounted fares, starting as low Rs 1,099 for
domestic destinations operated by its Indian Joint venture carrier and Rs 2,099 for international flights
operated by other group airline under limited offer.
Which medium of communication (Promotion mix) which can be used by the firm to inform large number
of people about the new fares?
a) Public relation
b) Advertisement
c) Sales Promotion
d) Personal selling
15 From August 15 to August 18 for four days only 20% discount is given on One Plus smart phone by
Amazon India. Identify the promotion tool used.
a) Public relation
b) Advertisement
c) Sales Promotion
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d) Personal selling
ANSWERS OF CASE BASED QUESTIONS FROM MARKETING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
c a d b c b d b c c c c d b c
ASSERTION – REASON QUESTIONS: MARKETING

77
below:
1 Assertion (A): A good market offer should keep in mind the satisfaction of customers.
Reason (R) : Marketing is a social process by which individuals and groups obtain what they need
and want through creating, offering and freely exchanging products and services of values with
others.
Assertion (A)
2 Assertion (A): Quality of product is not the key feature of product concept.
Reason (R) : Firms which follow the product concept propose that the way to realise business goal is by
making products that are of high quality.
Assertion (A)
3 Assertion (A): Brand name should be short and simple.
Reason (R) : A simple and short brand name is always easy to pronounce as if it is difficult to
pronounce the customer will hesitate to demand for it.
Assertion (A)
4 Assertion (A): A registered brand name is called trade mark.
Reason (R) : Trade mark provides legal protection to company.
Assertion (A)
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5 Assertion (A): Tube of a paste is example of secondary packing.
Reason (R): Secondary packing are additional packing which gives more protection. Generally
consumers throw that when they start using the product.
Assertion (A)
6 Assertion (A): Price is the crucial element of marketing mix because consumer is very sensitive to this
element. Little variation in the price may shift your customer to competitor‘s product.
Reason (R): The factors which does not affect the price of a product are pricing objectives, product cost,
Competition in the market, customer demand and utility etc.
Assertion (A)
7 Assertion (A): The promotional communication aims at informing and persuading the customers to buy
the product and informing him about the merits of the products.
Reason (R): Advertising is the non-paid form of promotion.
Assertion (A)
8 Assertion (A): Sales promotion refers to short term use of incentives or other promotional activities which
stimulates the customers to buy the product.
Reason (R): Buy one get one free is the example of sales promotion technique.
Assertion (A)
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9 Assertion (A): We Can easily identify a Cadbury chocolate from the various chocolates kept in shelf of a
shop by the colour of its label.
Reason (R): Societal concept concentrates on consumer satisfaction within ethical and ecological
boundaries of our society.
Assertion (A)
10 Assertion (A): Packaging plays a role of silent salesman.
Reason (R) : The attractive colourful and innovative packing attracts the customers specially if the product
is children‘s product.
Assertion (A)
(d) Assertion (A) is False but Reason (R) is True
11 Assertion (A): Personal selling involves face-to-face interaction between buyer and seller for the purpose
of sale.
Reason (R) : Public relations as a strategic management function that add value to an organisation by
helping it to manage its reputation.
Assertion (A)
12 Assertion (A): Managing public opinion of an organisation is an important task which can be performed
by the marketing department.
Reason (R): The public opinion about the company is going to affect the sales and profits of the company.
Assertion (A)
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13 Assertion (A): Price may be called by different names for example, price of the education is tuition fees,
price for using road is toll etc.
Reason (R) : Price is the monetary sacrifice which a buyer makes when he buys something.
Assertion (A)
14 Assertion (A): Want means basic necessity.
Reason (R) : Demand means wants backed by purchasing power.
Assertion (A)
15 Assertion (A): Marketing mix refer to the ingredients or the tools or the variables which the marketer
mixes in order to interact with a particular market.
Reason (R): Promise is a tool of marketing mix.
Assertion (A)
ANSWERS FOR ASSERTION – REASON QUESTIONS FROM MARKETING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
A D A A D C C A B A B A A D C
EXTRA QUESTIONS: MARKETING

81

1
Concept Statement
1).Marketing a. Bending the customer according to the product
2).Selling b. It is process of holding and preserving goods between at the time of
purchase and sale.
3). Grading c. Developing the product according to the customer
4).Storage and Warehousing d. It is the process of classification of the product into different groups
A.1-b, 2-c, 3-a, 4-d

B.1-c, 2-a, 3-d, 4-b
C.1-d, 2-c, 3-a, 4-b
D.1-b, 2-a, 3-d, 4-c
2
Product Mix Statement
1).Packaging a. It is a type of Intellectual property consisting of a recognizable sign, design or
expression of the products or services
2).Labeling b. It is process of a giving name, symbol, sign, etc .to a product.
3). Trade Mark c. It Play an important role of silent salesman.
4).Branding d. It helps in providing information required by law.
A.1-c, 2-d, 3-a, 4-b

B.1-c, 2-a, 3-b, 4-d
C.1-d, 2-c, 3-a, 4-b
D.1-c, 2-a, 3-d, 4-b
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3 Promotional Mix Concept

1) Advertising a. It helps in creating better image of the business firm.
2).Sales Promotion b. Cost per person is quite high.
3). Personal Selling c. It refers to short term incentives
4).Public relation d. Cost per person is very low.
A.1-c, 2-a, 3-d, 4-b

B.1-c, 2-a, 3-b, 4-d
C.1-d, 2-c, 3-b, 4-a
D.1-c, 2-d, 3-a, 4-b
4 Concept Statement
1) Product Concept a. Ensuring that the users of goods and services get expected satisfaction.
2).Production Concept b. It emphasis on the quality of the product.
3). Societal Concept c. The Products are inexpensive and widely available.
4).Marketing Concept d. Maintain ecological balance ,Strengthen ethical values, etc.
A.1-c, 2-a, 3-d, 4-b

B.1-b, 2-c, 3-d, 4-a
C.1-d, 2-c, 3-b, 4-a
D.1-c, 2-d, 3-a, 4-b
5 I II
1) Secondary Packaging a. To Make the products available at the right time and place.
2).Price b. Close-up tooth paste in cardboard box.
3). Place/Physical Distribution c. Corrugated boxes containing toothpaste tubes in 100 or 200 units.
4).Transportation Packaging d. The Firm‘s products determine the volume of sale and the amount
of profit
A.1-c, 2-a, 3-d, 4-b

B.1-b, 2-c, 3-d, 4-a
C.1-d, 2-c, 3-b, 4-a
D.1-b, 2-d, 3-a, 4-c
6 Statement I. Quality of product is not the key feature of product concept.
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Statement II. Generic name refers to the name of whole class of the product.
(a) Statement I is correct and II is wrong.
(b) Statement II is correct and I is wrong.
(c) Both the statements are correct.
7 Statement I. Societal concept concentrates on large scale production to decrease the cost.
Statement II. Advertising is the non-paid form of promotion.
8 Statement I. Labelling means putting identification marks on the package. Label is carrier of information.
Statement II. Marketing mix refer to the ingredients or the tools or the variables which the marketer mixes
in order to interact with a particular market.
9 Statement I. Product, price, place and promotion are the elements of marketing mix.
Statement II. Personal selling refers to short term use of incentives or other promotional activities that
stimulates the customer to buy the product.
10 Statement I. Packaging plays a role of silent salesman.
Statement II. Personal selling involves face-to-face interaction between buyer and seller for the purpose of
sale.
11 Want for a specific product backed by an ability to pay is called _____
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(a) Want
(b) Need
(c) Customer
(d) Demand
12 Mr. Salman had launched a new Honda Car at Mumbai. All the TV Channels covered this event. This is
an example of
a) Advertising b) Personnel Selling c) Sales promotion techniques d) Publicity

13 Which of the followings is not a type of marketing concept
(a) The production concept
(b) The selling concept
(c) The societal marketing concept
(d) The Supplier Concept
14 Which of the following can be marketed?
a) Product / service
b) A place
c) An idea
d) All the above
15 Which of the following defines marketing management?
(a) The art and science of choosing target markets and getting, keeping, and growing customers
through creating, delivering, and communicating superior customer value.
(b) The development of planning, policies and various marketing strategies to move the company
forward to achieve the goal of profit through selling the product and services.
(c) The process of identifying and managing all marketing process to sell product and service to the
end users at low price.
(d) The process of developing and monitoring profit of company‘s products and services.
KEY FOR EXTRA QUESTIONS: MARKETING

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
b a c b d b d c a c d d d d a
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1

KENDRIYA VIDYALAYA SANGATHAN

SUBJECT - BUSINESS STUDIES

(MCQs ON CASE BASED AND ASSERTION – REASON TYPE)

(As per Latest CBSE guidelines and Term-I Curriculum)

केन्द्रीय विद्याऱय संगठन / KENDRIYA VIDYALAYA SANGATHAN

है दराबाद संभाग / HYDERABAD REGION

CLASS – XII SUBJECT – BUSINESS STUDIES

PREPARED & VETTED BY SUBJECT TEACHERS

CLASS 12 BUSINESS STUDIES FOR THE YEAR 2021-22

(d) Continuous process

ANSWERS FOR CASE BASED QUESTIONS OF NATURE AND SIGNIFICANCE OF MANAGEMENT

ASSERTION – REASON QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT

ANSWERS FOR ASSERTION – REASON QUESTIONS OF NATURE AND SIGNIFICANCE OF

EXTRA QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT:

Which of the following pairs are correctly matched:

a I II III IV b III and IV

(B) Intangible (II) Organisation interacts with ever-changing

(C) Dynamic (III) In management functions are performed

a DCBA b DABC c CBAD d ADCB

a ACBD b DABC c CDBA d BCDA

a. management is an intangible force.

Statement I: Coordination is needed in all departments and at all levels.

15 For the following two statements choose the correct option:

KEY FOR ADDITIONAL QUESTIONS: NATURE AND SIGNIFICANCE OF MANAGEMENT

CHAPTER 2 PRINCIPLES OF MANAGEMENT

(C) Stability of tenure of employees

items. Which principle of management is violated here?

ANSWERS FOR CASE BASED QUESTIONS FROM PRINCIPLES OF MANAGEMENT

ASSERTION – REASON QUESTIONS: PRINCIPLES OF MANAGEMENT

(c) Assertion (A) is True but Reason (R) is False.

(d) Assertion (A) is False but Reason (R) is True.

Match the following with correct option:

(i) Uniformity in each unit (a)Simplification

(ii) Moves with lines of Authority (b)Standardization

(iii) Related to following of code of conduct (c)Scalar of chain

(iv) Elimination of unnecessary activities (d)Discipline

(A) (i)-a; (ii)-b; (iii)-c ; (iv)-d

(i) Replace ‗I‖ with ‗We‖ (a) Equity

(ii) One head one plan (b) Esprit de corps

(iii) No termination and transfer of employees frequently (c) Unity of direction

(iv) No discrimination on any basis (d) Stability of personnel

(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(i) Decision-making authority is retained by top level (a) Accountability

(ii) Pushing down decision-making authority to middle and (b) Authority

(iii) Answerability of the work (c) Centralization

(iv) Right to take decisions (d)Decentralization

(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(i) Related to movements (a) Fatigue study

(ii) Related to rest intervals (b) Method study

(iii) Finds out the best method (c) Time study

(iv) Related to time (d) Motion study

(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(i) Paternalistic style of management (a)Science not rule of thumb

(ii) Proper care in selection and training (b) Mental Revolution

(iv) Change in attitude of workers and (d) Development of personnel to

(A) (i)-a; (ii)-b; (iii)-c; (iv)-d

(D) (i)-d; (ii)-a; (iii)-b; (iv)-c

(C) Both statements are correct.

CHAPTER 3 BUSINESS ENVIRONMENT