Kendriya Vidyalaya Sangathan

Bhopal Region
Question Paper 2021-22
Pre-Term 1 Examination
SET-A
Subject: Business Studies (054)
Max. Time: 90 minutes Max. Marks: 40

General instructions:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
Section - A
1. “Repetitive performance of a particular task allows a worker to gain experience in that
area and leads to skillfulness.”
Identify the point of importance of organising in above mentioned statement.
a) Adaptation to change
b) Effective administrative
c) Benefits of specialisation
d) Expansion and growth
2. Assertion (A) : Planning is pervasive in nature.
Reason (R) : Planning is required at all levels of management as well as all departments
of the organization.
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 (A)
d) Both (A) and (R) are correct, and (R) is not the correct explanation of (A)
3. According to which principle of management – there should be one and only one boss
for every employee at a time.
a) Unity of direction

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 b) Equity
c) Remuneration to employees
d) Unity of command
4. _____ is anything that can be offered in a market to satisfy a need.
a) Price
b) Product
c) Both (a) and (b)
d) None
5. Which level of management is responsible for integrating diverse elements and
coordinating activities of different departments?
a) Top level management
b) Middle level management
c) Supervisory level
d) Both ‘a’ and ‘b’
6. ‘Bata’ is a ____
a) Brand
b) Brand Mark
c) Product
d) Brand Name
7. “Assignment of duties” is a step in the process of one of the functions of management.
Identify the function of management.
a) Planning
b) Organising
c) Staffing
d) Directing
8. Uniformity in production can come by using following technique of Taylor
a) Simplification
b) Method Study
c) Standardisation
d) Time Study

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9. Organisation Interest supersede employees interest is indicated in
a) Principle of Subordination of Individual Interest to General Interest
b) Principle of Espirit De Corps
c) Principle of Initiative
d) Principle of Discipline
10. Management is:
a) Science
b) An art
c) Both Science and Art
d) Neither (a) nor (b)
11. Investors, Customers, Competitors and Suppliers come under ……………….. forces.
a) General
b) Specific
c) General and Specific
d) None of the above
12. Which of the following is not a limitation of Planning?
a) Natural Calamity
b) Change in competitors policies
c) Planning involves huge cost
d) It increases Creativity
13. The terms ‘Cooperation’ and ‘Coordination’ are…………………………
a) Opposite
b) Synonym
c) Complementary
d) All of these
14. “ If the end result is clear it becomes easier to work towards the goal.” Identify the step
of one of the functions of management highlighted above.
a) Setting Objectives
b) Follow-up Action
c) Developing Premises
d) Implementing the Plan

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15. 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) Science not rule of thumb
c) Remuneration of employees
d) Scalar chain
16. 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.
17. _____ philosophy aims at profit through volume of production.
a) Product
b) Production
c) Selling
d) Marketing
18. “Firms must undertake aggressive selling and promotional efforts to make customers
buy their products.”
Identify the marketing management concept in above statement.
a) Production concept
b) Product concept
c) Selling concept
d) Marketing concept
19. Sushant runs a software company. Now he wants to open a retail company. The size of
organisation is large and there is a need for higher degree of specialization. Identify the
organisation structure here.
a) Divisional structure
b) Functional structure
c) Both (a) and (b)
d) None of these

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20. If a firm decides to maximise profits in the short run, it would tend to charge _____
price for its products.
a) Maximum
b) Minimum
c) Low
d) Competitive
21. _____ refers to combination of promotional tools used by an organisation to achieve
its communication objectives.
a) Price mix
b) Product mix
c) Place mix
d) Promotion mix
22. Instruction Card clerk, _____ , time and cost clerk and a _____ work under planning
incharge.
a) Disciplinarian, inspector
b) Route clerk, disciplinarian
c) Speed boss, repair boss
d) None of the above
23. Kavita Ghai was the managing director of a restaurant in Lucknow called ‘Healthy
Kitchen’. The restaurant was doing well and the volume of work started increasing
slowly and steadily. She appointed Nikhil Gupta, as a general manager of ‘Healthy
Kitchen’, Lucknow and gave him the right to command his subordinates and to take
action within the scope of this position.
Identify the concept of management adopted by Kavita Ghai, under which she
provided different rights to Nikhil Gupta.
a) Delegation of authority
b) Decentralisation
c) Division of work
d) Span of management
24. “Panchayats in our country have been given more powers to decide and spend funds
granted to them by the government for the welfare of village.”

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 Identify the principle of management highlighted in this case.
a) Equity
b) Discipline
c) Order
d) Centralisation & Decentralisation
Section -B
25. “A good manager works through a combination of practice, creativity, imagination,
initiative and innovation”.
Which aspect of the nature of management is highlighted in the above statement?
a) Management as a Science
b) Management as an Art
c) Management is an intangible price
d) Management as a profession
26. Vishal Agro Ltd. a new venture for distribution of chemicals fertilizers free vegetables.
The conducted a market survey to find out consumer preferences for such vegetables.
They found that 90% of the households were concerned about the harmful chemicals
being used in growing the vegetables and their impact upon health.
The factor constituting the business environment being discussed above is:
a) Economic
b) Technological
c) Social
d) Political
27. Assertion (A) : Management is an art and science are not mutually exclusive, but
complementary to each other.
Reason (R) : Managers work better if their practices are based on principles of
management.
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 (A)
d) Both (A) and (R) are correct, and (R) is not the correct explanation of (A)

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28. Assertion (A) : Competition in the market can upset financial plans.
Reason (R) : Planning leads to rigidity.
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 (A)
d) Both (A) and (R) are correct, and (R) is not the correct explanation of (A)
29. Find out the incorrect statement about decentralization.
a) Decentralization is an optional policy decision
b) Decentralization is to extend delegation to the lowest levels
c) It increases the role of superior
d) It has wider scope
30. Which of the following statement is incorrect?
a) Marketing is a social process
b) Marketing and selling are synonyms
c) Marketing focuses its attention on consumer needs
d) Marketing mix is a wider term than product mix.
31. Planning bridges the gap between _____ and _____.
a) Responsibility, accountability
b) Delegation, decentralization
c) Where we are, where we want to go
d) Stability, security
32. “Increased life expectancy of people and increased awareness for health care have
increased the demand for many health products and services like soft drinks, fat free
cooking oil and health resorts. New health products and services have, in turn, changed
people’s life styles.”
Which feature of business environment is explained here?
a) Inter-relatedness
b) Dynamic nature
c) Uncertainty
d) Complexity

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33. Which of the following is not a advantage of divisional structure?
a) Flexibility
b) Accountability
c) Fast decision making
d) None of the above
34. Arrange the following steps in the process of organising in the correct sequence:
(a) Assignment of duties
(b) Departmentalisation
(c) Identification and division of work
(d) Establishing reporting relationship
Choose the correct option:
a) (a) ; (b) ; (d); (c)
b) (c) ; (b) ; (a); (d)
c) (c) ; (b) ; (d); (a)
d) (b) ; (c) ; (a); (d)
35. Span of management refers to:
a) No. of subordinates at lower level
b) Total no. of managers
c) The number of subordinates that can be effectively managed by a supervisor
d) No. of levels in the management
36. The term ……………….. means the totality of all individuals, institutions and other forces
that are outside a business.
a) Internal environment
b) Social environment
c) Business environment
d) None of the above
37. For the following two statements choose the correct option.
Statement I : A superior can delegate authority.
Statement II : Superior will not be accountable for outcome.
Options :
a) Statement I is correct and II is wrong

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 b) Statement II is correct and I is wrong
c) Both the statements are correct
d) Both the statements are incorrect
38. In Coco Ltd. employees are transferred frequently; which principle of management is
being over-looked here?
a) Equity
b) Remuneration of employees
c) Stability of tenure
d) Initiative
39. Coordination is :
a) Characteristic of management
b) Objective of management
c) The essence of management
d) None of the above
40. Maya is working as production manager in a big corporate house. What would be
Maya’s main task on this post?
a) To ensure that her department has necessary personnel
b) To maintain quality of output
c) To minimize wastage of materials
d) To establish coordination among different departments
41. Match the following.
Column I Column II
A. Life expectancy (i) Economic environment
B. Relationship of two countries (ii) Social environment
C. Planned outlay in public and private sectors (iii) Political environment
D. The Companies Act,2013 (iv) Legal environment
A B C D
a) (iv); (iii); (i); (ii)
b) (ii); (iii); (i); (iv)
c) (iii); (iv); (ii); (i)
d) (iv); (ii); (iii); (i)

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42. ………………………. Can not be delegated.
a) Authority
b) Responsibility
c) Accountability
d) All of these
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. The trend of Yoga as a result of COVID-19 relates to…………………. Environment of
business.
a) Social
b) Political
c) Technological
d) Legal
45. “To increase sales by 20% in 2021-22” Identify the step in the planning process.
a) Evaluating alternatives
b) Setting objectives
c) Developing premises
d) Implementing the plan
46. Assertion (A) : By stating in advance how work is to be done, Planning provides
direction for action.
Reason (R) : Planning may not work in dynamic environment.
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 (A)
d) Both (A) and (R) are correct, and (R) is not the correct explanation of (A)

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 47. Which of the following is not a feature of Marketing?
a) Customer Value
b) Exchange mechanism
c) Need and Wants
d) All of these
48. Assertion (A) : Planning establishes standards for controlling.
Reason (R) : Planning provides the standards against which the actual performance can
be measured and evaluated.
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 (A)
d) Both (A) and (R) are correct, and (R) is not the correct explanation of (A)
Section C
Read the following text and answer question number 49-53 on the basis of the same:
Good Life ltd. is a manufacturing company dealing in pain relive tablets. It is Over The
Counter(OTC) drug. These tablets are available in strips of ten Tablets. These strips are packed
in the cardboard box and these boxes are placed in corrugated box and delivered to retailers
for sales. The company also rolled out advertisement on major TV channels to boost the sales
of the drug. The company has come up with a new muscles relaxant ointments with no
chemicals and just herbs and plant based materials as its constituents. It helps in satisfaction of
the customers and does not leave any industrial waste after manufacturing.
However, when the company released this, it did not provide the right method of using it.
Thereby leading to many customers complaining about its ineffectiveness.
49. Which packaging is highlighted in the lines “These strips are packed in the cardboard
box and these boxes are placed in corrugated box and delivered to retailers for sales.”?
a) Primary
b) Secondary
c) Transportation
d) Both (b) and (c)
50. Which elements of the marketing mix is highlighted in the lines,
“The company also rolled out advertisement on major TV channels to boost the sales

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 of the drug”?
a) Product
b) Price
c) Physical Distribution
d) Promotion
51. Which concept of marketing is highlighted in the lines, “It helps in satisfaction of the
customers and does not leave any industrial waste after manufacturing”?
a) Product
b) Production
c) Selling
d) Societal Marketing
52. “When the company released this, it did not provide the right method of using it.
Thereby leading to many customers complaining about its ineffectiveness.” Which
product-related decision has been ignored by company in release of new product?
a) Branding
b) Packaging
c) Labelling
d) Both (b) and (c)
53. It refers to designing a slip to be put on the package which placed to the product to
complex graphic that are part of package which denotes its nature, content,
ownership, destinations, etc.
Which of the following function of product mix is referred here?
a) Packaging
b) Branding
c) Labelling
d) None of the above
54. The marketing manager of ‘Informatics Limited’ always keeps a check on the changes
happening in the surroundings and instructs the research and development
department to improve the products accordingly. This habit of the marketing manager
helps the company to keep an edge over the competitors.
Which feature of management is depict in the above case?

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 a) Pervasive
b) Intangible force
c) Continuous
d) Dynamic
55. The new smart card of Delhi Metro has been launched. Under this facility, the users
can view all the top ups done as they transact and can use their debit card/credit card
or net banking or Paytm to pay online for an instant recharge.
Identify the dimension of business environment highlighted in above case.
a) Social environment
b) Technological environment
c) Political environment
d) Economic environment
56. The top level manager has asked the production manager to achieve a target
production of 2000 units in a month. But he does not give him the authority and holds
the decisions-making powers.
Identify the concept used in the case.
a) Delegation
b) Centralisation
c) Decenterlisation
d) Divisional
57. In Jojo Ltd. paternalistic style of management is in practice. There is complete
openness between management and workers. It at all workers go to strike they wear a
black badge but work more than working hours to gain the sympathy of the
management.
Which principle of scientific management, is being adhered to by the workers?
a) Science, not rule of thumb
b) Harmony, not discord
c) Cooperation, not individualism
d) None of the above
58. With the help of experts, managers of Maruti Ltd. got prepared main and subsidiary
plans, but did not provide instructions to subordinates about their implementation.

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 Due to it, well prepared plans failed.
Which limitation of planning is discussed above?
a) Planning involves huge costs.
b) Planning is time consuming.
c) Planning does not guarantee success.
d) None of the above.
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. Rakesh and Raheem are employed in the same company on same positions and
performing similar functions. But Rakesh is getting more salary. Which principle of
management is being violated here?
a) Scalar chain
b) Remuneration of employees
c) Equity
d) None of the above

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