Kendriya Vidyalaya Sangathan RO - Bhopal

Pre term 1 Exam 2021-22 SET-B

Sub: Business Studies (054)
M.M.:40 Marks Time Allowed: 90 Minutes

General instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks (0.8Markseach).
6. There is no negative marking.

SECTION - A
1. Profit is essential for covering cost and risk of the business. Which management objective
is discussed here?
a) Social objective
b) Organizational objective
c) Personal objective
d) Individual objective

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

appropriate courses of action for achieving predetermined objectives.
(a) Directing (b) Staffing (c) Planning (d) Controlling

3. Marketing mix is the set of _____________________ that the firm uses to pursue its
marketing objectives in the target market.
(a) Production tools (b) Promotional tools
(c) Marketing tools (d) Selling tools

4. Which level of management is concerned to develop cooperation with other departments

for smooth functioning of organisation?
a) Top level
b) Supervisory level
c) Middle level
d) Operational level

5. Name the principle of management given by Fayol which when applied would mean that
the workers and management both honour their commitments without any prejudice
towards one another.
(a) Discipline (b) Mental Revolution
(c) Remuneration of employees (d) Scalar chai

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6. A brand or part of the brand that is given legal protection is called _____________.
(a) Brand Mark (b) Trademark (c) Brand (d) Brand name

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

which specifies that the task of management is to make the strengths of human resources
effective and their weaknesses irrelevant towards achieving the organisation’s objectives.
(a) Management of work (b) Management of people
(c) Management of operations (d) Management of goals

8. Match the following items on the basis on their focus –

1 Quality, performance and features of a Marketing concept
product
2 Existing product b Selling Concept
c Production concept
d Product concept

(a) 1 - a, 2 - b, (b) 1 - c, 2 - d, (c) 1 - b, 2 - a, (d) 1 - d, 2 - b,

9. Which type of organisational structure will you suggest for a firm which has diversified
activities and operations requiring a high degree of specialisation?
(a) Centralised structure (b) Decentralised Structure
(c) Divisional structure (d) Functional structure

10. “Changes or events cannot be eliminated but they can be anticipated and managerial
responses to them can be developed.” is suggested by the following importance of planning:
(a) Planning facilitates decision making (b) Planning promotes innovative ideas
(c) Planning provides direction (d) Planning reduces the risks of uncertainty.

11. “Grouping similar nature jobs into larger units called departments” is the step in the
process of one of the functions of management. Identify the function of management.
(a) Planning (b) Organising (c) Directing (d) Staffing

12. The Statement “Planning is a primary function”, suggests that ______________

(a) Planning precedes other functions
(b) Planning requires logical and systematic thinking
(c) Plan is framed, it is implemented, and is followed by another plan, and so on
(d) Planning is required at all levels of management as well as in all departments of the
organisation.

13. A major decision area under one of the functions of marketing is the decision regarding
marketing intermediaries to be used. Name the function.
(a) Physical Distribution (b) Gathering and analysing market information
(c) Promotion (d) Transportation

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14. “The nature of the relationship of our country with foreign countries”, is a major
element of which of the following components of the Business Environment?
(a) Social Environment (b) Legal Environment
(c) Political Environment (d) Economic Environment

15. Which of the following statements is incorrect?

(a) Marketing is a social process
(b) Focus of the marketing activities is on customer needs
(c) Marketing is merely a post production activity.
(d) Marketing mix is a wider term than product mix.

16. Planning is closely connected with _____________ and ________________.

(a) Responsibility and accountability (b) Delegation and decentralization
(c) Stability and security (d) Creativity and innovation

17. _______________ is an important function of marketing which is important not only for
protection of the product but also serves as a promotional tool.
(a) Grading (b) Labelling (c) Packaging (d) Branding

18. As part of regulations to be followed by advertisers, the advertisement for a new brand
of baby food for infants provides important information for potential buyers that it is “Not
recommended for infants under the age of four months”. Which dimension of the business
environment is highlighted in the above statement?
(a) Social Environment (b) Legal Environment
(c) Political Environment (d) Economic Environment

19. The principle of management given by Fayol which aims at preventing overlapping of
activities is:
(a) Division of work (b) Unity of Command
(c) Unity of Direction (d) Order

20. _________________ ensures that the subordinate performs tasks on behalf of the
manager thereby reducing his workload and providing him with more time to concentrate
on important matters.
(a) Decentralization (b) Delegation of authority
(c) Authority (d) Accountability

21. Match the following on the basis of their suitability –

1 To clear stock A Personal Selling
2 To guide about the product B Press Release

c Sales Promotion

(a) 1 - a, 2 - b, (b) 1 - b, 2 - a,
(C) 1 - c, 2 - a, (d) 1 - b, 2 - c,

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22. The sum total of all individuals, institutions and other forces that are outside the control
of a business enterprise but that may affect its performance is known as________________
(a) Business environment (b) Social environment
(c) Political environment (d) Economic environment.

23. Match the following:

1 Organisational structure A number of subordinates that can be managed by
superiors
2 Span of management B Give shape to organizational structure
C framework within which tasks are performed

(a) 1 - b, 2 - a, (b) 1 - a, 2 - b,
(b) (c) 1 - c, 2 - a, (d) 1 - b, 2 - c,

24. Taylor believed that there was only one best method to maximise efficiency. This
method can be developed through study and analysis. Identify the principle of Scientific
management being discussed above:
(a) Harmony not discord
(b) Science not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) Cooperation not individualism
SECTION – B

25. India has launched its most advanced Geo-imaging satellite which will allow better
monitoring of the subcontinent, including its borders with neighbouring countries, by
imaging the country 4-5 times a day. The satellite is capable of near real time monitoring of
floods and cyclones. The factor constituting the Business Environment being discussed
above is:
(a) Social environment (b) Economic environment
(c) Technological environment (d) Political environment

26. Which step in the process of planning will precede the step in which the manager is
required to make certain assumptions about the future, which are the base material upon
which the plans are drawn?
(a) Implementing the plan (b) Identifying alternative courses of action
(c) Setting objectives (d) Selecting an alternative.

27. “Availability and affordability of the product were considered to be the key to the
success of a firm.” Identify the concept of marketing management highlighted by this
statement.
(a) Production concept (b) Product Concept
(c) Societal concept (d) Marketing Concept

28. With the introduction of mineral water bottle in India Bisleri was the was able to capture
the big market share in India
Which importance of business environment is highlight in above case
Helps in tapping resources

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Help in policy making
(C) Improve performance
(d) Help to identify opportunity E and getting first mover advantage

29. A.co.is manufacturing garments. The manager wants to increase profits by purchasing
new high speed machines or increasing the sale price or using waste materials in
manufacturing stuffed toys. He decided that “using waste material “is the best solution for
him.
Identify the concept of management involved a.
a. Directing b. Coordination c. Planning. d. Organising

30. Product cost sets the lower limits of the price, the utility provided by the product and
the intensity of demand of the buyers sets the upper limit. So, in case of inelastic demand,
total revenue_______________ when price increases.

(a) Rises (b) Falls

(c) Constant (d) Both (a) and (b)

31. Match the columns to identify the features of coordination:

1 Deliberate function A Coordination is the function performed by every
manager
2 Responsibility B It begins at planning stage and continues till planning

c
Manager has to coordinate the efforts of different
people in cautious manner

(a) 1 - b, 2 - a, (b) 1 - a, 2 - b,
(b) (c) 1 - c, 2 - b, (d) 1 - a, 2 - c,
32. For the following two statements choose the correct option:
Statement I: Accountability can be delegated
Statement II: Responsibility can be delegated completely
Choose the correct option from the options given below:
(a) Statement I is correct and II is wrong
(b) Statement II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect

33. Which principle prevents dual subordination

A) unity of command
B) unity of direction
C) order
D) equity

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34. Grouping of activities on the basis of product lines is a part of
a) Delegated Organisation
b) Centralised Organisation
c) Divisional Organisation
d) Autonomous Organisation

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

garments for men has an objective to increase production by 10% but the Sales department
does not approve of the increase in production, till changes are brought about in the
product to incorporate latest fashion. These kinds of conflicts bring to light the following
importance of the force that can help to accomplish the linking of activities of various
departments:
(a) Growth in size (b) Functional differentiation.
(c) Specialization (d) Efficiency

36. “Planning requires logical and systematic thinking rather than guess work.” The feature
of planning being referred to in the above statement is:
(a) Planning is a continuous process (b) Planning is futuristic
(c) Planning is pervasive (d) Planning is a mental exercise

37. Silico Ltd. has appointed the former Consulting executive of Shri Shakti Ltd. Rajan Bahl as
its Vice President. What will be his basic task?
(a) To integrate diverse elements and coordinate activities of different departments.
(b) To carry out plans formulated by top managers.
(c) To oversee the efforts of the workforce.
(d) Help to maintain quality of output.

38. The marketing management philosophy which is based on the premise that any activity
which satisfies human needs but does not pay attention to the ethical and ecological
aspects of marketing cannot be justified is known as:
(a) Marketing concept (b) Societal marketing concept
(c) Production concept (d) Product concept

39. Ravi joined a marketing firm as a Sales manager. On his first day in the company, during
the orientation programme, the CEO of the company told Ravi that he will have to
simultaneously perform the functions of management (planning, organising, staffing,
directing, controlling) all the time. Which characteristic of management was the CEO
referring to?
(a) Management is a continuous process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is goal oriented

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 40. Unlike professions such as medicine or law which require a practising doctor or lawyer
to possess valid degrees, nowhere in the world is it mandatory for a manager to possess any
such professional degree. Identify the characteristic of the profession being discussed above
which is not being strictly met by management.
(a) Well defined body of knowledge (b) Restricted Entry
(c) Professional Association (d) Ethical code of conduct

41. One of the following is not an importance of Planning

a) Provides direction
b) Promotes innovation
c) Primary function
d) Establishes standards

42. “ Panchayats in our country have been given more powers to decide and spend funds
granted to them by the government for welfare of villages. Identify the principle of
management highlighted in the statement
A. Equity
B. Centralisation and decentralisation
C. Authority and Responsibility
D. Esprit De corps

43. For the following two statements choose the correct option:
Statement I: Advertising is an impersonal form of communication
Statement II: Advertising lacks direct feedback
Choose the correct option from the options given below:
(a) Statement I is correct and II is wrong
(b) Statement II is correct and I is wrong
(c) Both the statements are correct
(d) Both the statements are incorrect

44. KTX Group is rolling out an initiative to help create wealth for its employees through the
implementation of Employee Stock option. Through motivation and leadership the
management will help individuals to develop team spirit, cooperation and commitment to
the success of the group. The following importance of management is highlighted above:
(a) Management helps in achieving personal objectives
(b) Management helps in the development of society
(c) Management creates a dynamic organisation
(d) Management increases efficiency

45. If there is a plan to increase production then more labour, more machinery will be
required. This step in the process of planning will involve organising for labour and purchase
of machinery.
Identify the step in the planning process being discussed above.
(a) Identifying alternative courses of action (b) Setting objectives
(c) Selecting an alternative (d) Implementing the plan

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46. Taylor proposed eight specialists from whom each worker will have to take orders from
as part of the technique of Functional Foremanship specified by him. Those with technical,
mastery, intelligence and grit may be given _________________ work. Those with energy
and good health
may be assigned _______________ work.
(a) Planning, Execution (b) Execution, Planning
(c) Production, Planning (d) Implementation, Production

47. A person feeling hungry may get food by offering to give money or some other product
or service in return to someone who is willing to accept the same for food. The important
feature of marketing illustrated above is:
(a) Exchange mechanism (b) Customer value
(c) Creating a market offering (d) Needs and wants

48. Assertion: (A) Planning is futuristic

Reason: (R) Planning is concerned with the future which is certain and does not require
forecast
(a) Both (A) and (R) are correct
(b) (A) is correct (R) is incorrect
(c) Both (A) and (R) are correct, and (R) is the correct explanation of (R)
(d) Both (A) and (R) are correct, and (R) is not the correct explanation of (R)

SECTION - C
Read the following text and answer question number 49–54 on the basis of the same.
‘Saarthi’, the name has been associated with the manufacturing and sale of Fashion
products since 1960,when Kapil Saarthi opened his first retail fashion clothing outlet in
Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of
the S&M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an
existing administrative S&M facility in 1985. An important difference between S&M and
most other companies is that instead of operating as one large corporation it operates as
180 smaller companies each focused on a specific product and area, implying selective
dispersal of authority, recognising the decision makers need four autonomy, as decision
making authority is pushed down the chain of command. It enables the company to
maintain short lines of communication with customers and employees, and accelerate the
development of talent.

49. Identify the philosophy that is being followed by S&M through which it is dividing the
decision making responsibilities among hierarchical levels.
(a) Delegation of authority (b) Decentralization of authority
(c) Division of work (d) Span of management

50. ‘Why is there, need to apply the philosophy being followed by S&M, with caution?
(a) As it can cause a delay in communication
(b) As it can cause disintegration of the organisation
(c) As it can increase the workload of the top management
(d) As it can reduce the chances of growth of the firm.

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51. The application of the philosophy discussed above can foster a sense of competition
amongst the departments, which in turn will help the firm in the following manner:
(a) Facilitates growth (b) Better control
(c) Relief to top management (d) None of the above.

52. Quote the line from above which highlights the importance of the philosophy towards
providing management education to employees.
(a) ‘Maintain short lines of communication’
(b) ‘Accelerate the development of talent’
(c) ‘selective dispersal of authority’
(d) ‘Recognises decision makers need for autonomy’

53. As “The decision making authority is pushed down the chain of command” at S&M
enterprises, it provides the benefit of quick decision making to the organisation because:
(a) There is no requirement for approval from many levels
(b) Organisation is able to generate more returns
(c) There are innovative performance systems
(d) It’s a means of management education

54. The philosophy being followed by S&M is not followed by most other companies. This
tells us that the philosophy is :
(a) Optional
(b) Compulsory
(c) Limited to superior and his subordinate
(d) Merely done to lessen the burden of the manager

55. 7"Nowadays Women’s are very health conscious which is is witches giving rise to
increase demand of Organic products"
This statement is related with the factor of of business environment is
(a) Political environment (b) legal environment
(c) social environment (d) Technological environment

56. Zolo, a marketer of cars having 40% of the current market share of the country aims at
increasing the market share to 70% in next few years. For achieving this objective the
manager of the company specified the action programme covering various aspects. Identify
the function of marketing discussed above:
(a) Customer support services (b) Gathering and Analysing market information
(c) Product designing and development (d) Marketing Planning

57. Style and Fit, a footwear manufacturing company has decided to offer 50% off on all its
products due to the fall in demand of its products as more efficient substitutes have been
introduced in the market. Identify the pricing objective included by the firm which has made
the firm resort to discounting its product.

(a) Obtaining market share leadership (b) Surviving in the competitive market
(c) Attaining product quality leadership (d) Protect the interest of public

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 58.
Rahim wanted to start with a stationery app to help students of schools and college to
provide stationery to them. He felt that students were not able to get the needed
stationer at easy and hence wanted to provide the stationery directly to students in the
school. He list out the various ways of setting up this business and finally selected the best
way to set up this business is by developing an app. Suggest what should be the next step
of him:
a) Developing premises
b) Identifying the alternative course of action.
c) Implementation of plan
d) Follow up action.

59. In Shalleen Pvt Ltd. there is one head Shalleen who has two lines of authority under her.
One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority under
Shalleen is Lata-Rupa-Geet-Hussain-Preeti. According to a Principle of Management given by
Fayol, if Ismail has to communicate with Hussain who is at the same level of authority then
illustrate the route he will have to traverse.

(a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
(b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail
(c) Ismail-Chris-Shalleen-Preeti-Hussain
(d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain

60. According to the technique of Scientific management “Differential Piece Wage system”
How much more will a worker making 60 units earn as compared to a worker making 49
units? If the standard output per day is 50 units and those who make standard output or
more than standard get `75 per unit and those below get `65 per unit.
(a) Rs 4500 (b) Rs. 3185
(c) Rs 1315 (d) Rs. 3250

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