Podar International School

Term 1, Preboard Exam 2 (2021-22)

Subject: Business Studies-(054)
Time: 90 minutes Marks: 40
Date : 26-10-2021 Day : Tuesday
General instructions:
1. The Question Paper contains 3 sections. Total Printed Pages:
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
SECTION -A
1 Which of the following nature of management involves skillful and personal
application of existing knowledge to achieve desired results?
(A) Science (B) Art (C) Profession (D) None of these
2 Match the STEPS of the Planning process in Column 1 with the appropriate
SEQUENCE in Column 2
Column 1 Column 2
(a) Setting Objectives (i) Fourth Step
(b) Implementing the Plan (ii) First Step
(c) Evaluating alternative courses (iii) Sixth Step
(A) (iii). (ii), (i) (B) (ii), (i), (iii) (C) (ii), (iii), (i) (D) (iii), (i), (ii)
3 _______________ refers to producing goods of predetermined specifications, which
helps in achieving uniformity and consistency in the output.
(A) Standardization (B) Packaging (C) Labeling (D) Grading
4 Hiring of employees is done by:
(A) Top Level Management (B) Middle Level Management
(C) Bottom Level Management (D) All of these
5 Management Principles are Contingent or dependent upon the situation prevailing in
the organization. Which is the correct explanation associated with the statement?
(A) Application of principles is suitable in similar situations in many cases.
(B) Application of principles must be changed as per requirements.
(C) Principles of management can be modified
(D) None of the above
6 The part of a brand which can be recognized but which is not utterable is called
________
(A) Brand Mark (B) Trademark (C) Brand Name (D) All of these
7 Making timetable in an educational institute is an example of _____________
(A) Organizing (B) Coordinating (C) Controlling (D) None of these
8 ‘Buy Two and Get One Free’ is printed on a label of the package of toothpaste. Which
labelling function is being performed by this statement?
 (A) Describe the product (B) Identification of the brand Pg.No.1
(C) Grading of product (D) Sales Promotion
9 _______ is the obligation of a subordinate to properly perform the assigned duty.
(A) Authority (B) Responsibility (C) Accountability (D) None of these
10 __________ are the anticipated environments in which plans are expected to operate.
(A) Planning premises (B) Forecasting (C) Objectives (D) None of these
11 Which type of organizational structure is the most suitable for business enterprises
where a large variety of products are being manufactured?
(A) Functional Organization (B) Divisional Organization
(C) Both A & B (D) None of the above
12 Sunita presents an innovative idea to her superior for doing a task assigned to her on a
regular basis. The superior instead of appreciating her, scolds her and asks to do the
assigned task in the planned way as given by him. Identify the best suitable limitation
of planning for the above example.
(A) Planning reduces creativity. (B) Planning involves huge cost
(C) Time-consuming process (D) does not work in dynamic environment
13 Quick Foods Limited is a food delivery service app that has recently faced criticism for
tampering of their products by their delivery boys. The company decided to put a
hologram seal on the food packets to protect the contents from being tampered with
along with a safety warning for the customers to check the seal on delivery. __________
concept of marketing has been discussed in this case which is not only performing an
important function of communicating with the potential buyer but also promoting its
sale.
(A) Labelling (B) Product designing & development (C) Branding (D) Packaging
14 Which of the following dimensions of business environment includes legislation passed
by the government?
(A) Technological environment (B) Social environment
(C) Legal environment (D) Economic environment
15 Which of the following are considered as the pillars of Marketing?
(A) Packaging (B) Labelling (C) Both A & B (D) None of these
16 To see whether plans are being implemented and activities are being performed
according to the schedule, is a step of planning process. Identify the step
(A) Selecting the best alternative (B) Implementing the plan
(C) Follow up action (D) Evaluating alternative courses of action
17 Which of the following function of marketing helps in building customers loyalty and
in promoting its sale?
(A) Standardization (B) Branding (C) Pricing of products (D) Grading
18 “The increase in demand for many Ayurvedic medicines, health products and services
in the past few months is related to the need of building immunity and an increased
awareness for healthcare due to the spread of Coronavirus.” Identify the feature of
Business Environment being described above
(A) Specific and general forces (B) Interrelatedness
(C) Relativity (D) None of these
19 Principles of Management are very _________ whereas principles of pure science are
rigid.
(A) Flexible (B) Contingent (C) Dependent (D) Absolute
20 Which of the following statements is true about Organization function of management?
Pg.No.2
(A) Departmentalization is the first step in the organization process.
(B) Organization discourages creativity among managers
(C) Organization allows a business enterprise to accommodate with the changes in the
business environment
(D) All of the above
21 Match the CATEGORY being marked in column 1 with the correct EXAMPLES in
column 2
Column 1 Column 2
(a) Ideas (i) Film festival
(b) Experience (ii) Tour Planning
(c) Events (iii) Mountaineering
(A) (ii), (iii), (i) (B) (iii), (ii), (i) (C) (ii), (i), (iii) (D) (iii), (i), (ii)
22 “The shift of demand from soft drinks to juices is an opportunity for juice companies
and threat for soft drink companies.” Identify the feature of business environment.
(A) Relativity (B) Complexity (C) Uncertainty (D) Dynamic
23 Which of the following statements is incorrect?
(A) Superior-subordinate relationship is the source of origin of responsibility
(B) Authority arises from the established ‘scalar chain’ which links various job
positions and levels of an organization
(C) Centralization leads to quick decision making
(D) None of the above
24 Why did F.W. Taylor propose eight specialists under functional foremanship?
(A) Because all qualities like education, intelligence, tact, manual dexterity, energy,
etc., cannot be found in one person
(B) Because the number of foremen or supervisors in a factory set up is very large
(C) Because the number of workers in a factory set up is very large
(D) All of the above
SECTION -B
25 Maharaja Hotels is the average travelers first choice even with the growing rivalries of
small businesses. Maharaja has been able to scale at a rapid pace, with no formidable
competition in sight. While competition is always healthy for the market and for
customers with respect to making choices, but Maharaja remains the go-to option for
budget and mid premium category traveler’s and has been able to capture a large market
share. Which importance of business environment is shown in the above case?
(A) Helps in tapping resources
(B) Help in policy making
(C) Improve performance
(D) Help in Identifying opportunities and get first mover advantage.
26 Which statement is incorrect?
(A) Planning provides the basis of all other functions of management.
(B) Planning is an exclusive function of top management
(C) Planning requires application of the mind involving foresight, intelligence,
imagination, and sound judgement
(D) The scope of planning is different at all levels
27 Publicity refers to _______________________.
 (A) Nonpaid form of impersonal communication
(B) Paid form of personal communication
(C) Nonpaid form of personal communication
(D) Paid form of impersonal communication
28 As the pandemic hit the MSME sector of India many organizations had to face
challenges and struggle during the period. One such organization Steel Bird helmets
quickly transformed their helmets into face shields. Which importance of business
environment is highlighted in the above case?
(A) Helps in tapping resources
(B) Helps in coping up with rapid changes
(C) Helps to identify threats and early warning signals
(D) helps to identify opportunity and getting first mover advantage
29 Which of the following statements justifies Management is a continuous process?
(A) The task of the manager is to make people work towards goals
(B) In an organization diverse individuals have diverse goals
(C) Functions of management are always performed by managers
(D) Management converts goals into actions
30 To improve upon its competitive edge, Ratan Limited has changed the packaging of its
hair care products. They are now available in a consumer-friendly design, which has a
nozzle attached to the lid so that at the time of usage, the consumer does not need to
open the cap of the bottle. Name the marketing function been performed in the above
case.
(A) Product design and development (B) Customer support service
(C) Promotion (D) Packaging
31 Tata Motors Ltd. a leading Brand in Automobiles & Truck manufacturing is facing
some conflict issues between the top level & middle level management. Both the levels
argue that their level of management is responsible for coordination. Secondly the Vice
president Plant operations & the purchase Manager have not consulted each other
resulting in shortage of raw material. What is lacking between the two levels of
management in above case?
(A) Cooperation (B) Coordination (C) Trust (D) All of these
32 Assertion (A): Responsibility is derived from authority and accountability is derived
from responsibility.
Reason(R): Responsibility is the obligation of a subordinate to properly perform the
assigned duty, for which he/she has been delegated authority by his/her superior. Once
authority has been delegated and responsibility accepted, one cannot deny
accountability.
(A) Both Assertion (A) and Reason (R) are true.
(B) Both Assertion (A) and Reason (R) are false.
(C) Assertion (A) is true, and Reason (R) is false.
(D) Assertion (A) is false, and Reason (R) is true
33 Availability of Suggestion box indicates that the company is following the principle
of:
(A) Initiative (B) espirit de corps (C) Order (D) Discipline
34 Which of the following is not a merit of functional structure?
(A) It promotes control and co-ordination within a department.
 (B) It makes training of employees easier, as the focus is only on a limited range of
skills.
(C) It ensures that different products get due attention.
(D) It leads to occupational specialization.
35 ‘INFINIX INDIA Ltd.’, is engaged in manufacturing of washing machines. The target
of the organisation is to manufacture 500 washing machines a day. There is an
occupational specialisation in the organisation which promotes efficiency of
employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.
(A) Divisional Organisation (B) Functional Organisation
(C) Informal Organisation (D) None of these
36 Planning seeks to bridge the gap between ______________
(A) Past and present position (B) Past and future position
(C) Present and future position (D) None of these
37 A chartered Accountant Mr. Rakesh argues that management is a fully developed
profession whereas Mr. Rishit a management consultant argue that Management is not
a fully developed profession like Law, Medicine etc. The correct option is:
(A) Rakesh is correct & Rishit is wrong (B) Both are incorrect
(C) Rishit is Correct & Rakesh is false (D) Both are correct.
38 According to the modern marketing concept, which of the following statements is true?
(A) It refers to the group of people who do not have the ability but willingness to buy a
particular product.
(B) It refers to only the set of people who have the purchasing power to buy a particular
product
(C) It refers to the set of actual and potential buyers for a product
(D) It refers only to the people who show interest in a particular product.
39 Directing & Controlling are the two important functions performed by the operational
level management,
(A) True, because they guide, motivate & control the workers.
(B) False, as they merely give the feedback to the middle management.
(C) False, as they are busy in reporting about the daily performance.
(D) False, as they merely observe the workers while they perform duties.
40 Ms. Hema set up a unit under the Start - Up India Program. She used all the knowledge
she had learned in Business Studies in her school and college days. She created a strong
team which is entirely committed & helps work in an innovative way resulting in
building an efficient & effective organization. The unit launches different products
every year to stay ahead in the competition. Which feature of management is
highlighted in the above case?
(A) Dynamic (B) Goal oriented (C) Pervasive (D) Intangible
41 At times, Planning is a mere ritual in modern organisation as it suffers from
(A) Rigidity (B) Lack of forecasting
(C) Turbulent business environment (D) None of the above
42 You have learnt the principles of management in Business Studies, yet your belongings
such as books, clothes, stationery, notebooks etc. are never kept at proper place in-spite
of having study table & Almirah in your room. Which of the following principle is not
being followed by you?
(A) Scalar chain (B) Harmony (C) Order (D) Discipline
43 Assertion: A brand or part of a brand that is given legal protection is called brandmark
Reason: decisions related to product come under promotion mix.
(A) Assertion is true, reason is false
(B) Assertion s false, reason is also false
(C) Assertion and reason both are true, and reason explains assertion
(D) Assertion and reason both are true, but reason doesn’t explain assertion
44 A Production manager achieves the target of 5000 units set for his department but
spends ₹ 55 Lakhs in place of ₹ 50 Lakhs. He is:
(A) Effective but not efficient (B) Efficient but not effective
(C) Is both Efficient & Effective (D) Neither efficient nor effective
45 Plan which is firstly discussed in business plan is mostly
(A) Marketing plan (B) Financial plan (C) Personnel plan (D) Production plan
46 Which function would not be performed by the vice president of marketing?
(A) Arranging resources and funds for the organization
(B) To integrate diverse elements and coordinate the activities of different departments
according to the overall objective of the organization
(C) being responsible for the welfare and survival of the organization
(D) ensure that their department has necessary personnel
47 Under which of the following condition can a Marketer fix the price of his product on
the higher scale than his competitors
(A) When he faces high degree of competition
(B) When he wants to attain a substantial market share
(C) When the product is unique in terms of its features like packaging, product
differentiation, etc.
(D) When the demand for the product is low.
48 Assertion: By stating in advance how work is to be done, planning gives direction for
action.
Reason: Planning may not work in dynamic environment.
(A) Assertion and Reason are true, and Reason is correct explanation of Assertion
(B) Assertion and Reason are true, and Reason is not correct explanation of Assertion
(C) Assertion is true, but Reason is false
(D) Assertion is false, but reason is true
SECTION -C
Read the following text and answer question number 49-53 based on the Same:
Jofra works as the production manager in a company. Due to excess work, he transfers
some of his authority of performance to his subordinate, Kartik. However, the company
did not like this move as most of the decisions are taken by top level management in
the organization. This created rumours in the Organization about the possible
termination of Jofra. It was later clarified that no such step was taken by the top
management. Later in the year, Jofra was asked to lay plan for his department. It has in
advance, given targets to all its employees. This has led to more focused approach
49 resulting in saving of resources. All the employees are, therefore, happy and satisfied.
Which type of structure is highlighted in the line. “Jofra works as the production
manager in a company.”?
(A) Functional (B) Divisional (C) None of these (D) Both A & B
50 What importance of planning is highlighted in the lines, “it has, in advance, given
targets to all its employees This has led to more focused approach resulting in saving
of resources. All the employees are, therefore, happy and satisfied.?”
(A) Planning facilitates decision – making (B) Planning provides direction
(C) Planning promotes innovative ideas (D) Planning reduces the risk of uncertainty
51 The line, “Due to excess work, he transfers some of his authority of performance to his
subordinates, Kartik.”, points out to which concept-
(A) Decentralizatio (B) Delegation (C) Span of authority (D) Responsibility
52 The fact that top management takes all major decisions indicates that organization
follows
(A) Decentralization (B) Centralization(C) Formal structure (D) Both B & C
53 “This has led to more focused approach resulting in saving of resources.” Which
importance of Organizing highlighted in the given lines?
(A) Benefit of specialization (B) Adoption to change
(C) Optimum utilization of resources (D) Clarity in working relationship.
54 The authority once granted to the subordinates can be taken back but can’t be
reassigned.
(A) True (B) False (C) Can’t say (D) partly true
55 WhatsApp was the first application for mobile chat. Afterwards, many other
applications came but still WhatsApp is No.1 in mobile chat. Which (D) Helps to
identify opportunities and getting first mover advantages
56 ‘Yamuna Ki Bhujia’ has developed a strong distribution network in India and abroad
by setting up retail outlets and reaching out to the customer through internet selling.
Identify the decision related to the element of marketing mix being discussed above.
(A) Storing and assorting products to create time utility
(B) Regarding the channels or using intermediaries
(C) Both A & D
(D) regarding branding, packaging, and labelling
57 A trouser making company has decided to identify the needs of the customers to start
successful marketing of the garments produced by it and for this company is doing
SWOT analysis (Strength, Weakness, Opportunity, and Threats Analysis. The above
case highlights which function of marketing _______:
(A) gathering and analysing market information (B) marketing Planning
(C) product designing and development (D) standardisation and Grading
58 ‘Indian Drugs and Pharmaceuticals Ltd.’ is engaged in the manufacturing and
distribution of medicines. The company has set-up an objective of increasing its sales
turnover by 20%. To achieve this objective the company has decided to diversify into
baby health care products. Accordingly, the company has identified various alternative
courses of actions for the diversification process. They divided this process by
determining the positives and the negatives and selected the ideal plan which is the most
feasible and profitable. Which steps of planning have been followed in the above case:
(A) Identifying alternatives (B) Following up action
(C) Selecting an alternative (D) Both (a) and (c)
59 Ramesh is the owner of a printing press. The size of his organisation has increased
during the recent past. There are many employees who work in his organisation. The
organisation is considered good and has earned a lot of reputation in the market.
However, when it comes to making key decisions in the organisation related to many
 things, he never considers the opinions of his subordinates. Even though the size of
organisation has increased yet he tries to take all key decisions on his own. Which
principle of Fayol has been violated by Ramesh?
(A) Esprit de corps (B) Equity (C) Centralisation & decentralisation (D) Harmony
60 According to Taylor, “even a small production activity like loading figures of iron into
boxes can be scientifically planned and managed. This can result in tremendous savings
of human energy as well as wastage of time and materials.” Identify the related principle
of scientific management.
(A) Harmony, not discord
(B) Science, not rule of thumb
(C) Development of each person to get his/her greatest efficiency and prosperity
(D) None of the above.