Dey'S - Sample PDF - BST-XII Exam Handbook Term-I - 2021-22

vii
Contents
Chapter 1 Chapter 4
Nature and Significance of Management 7–39 Planning 106-128
Multiple Choice Questions 107
Multiple Choice Questions 8
CASE STUDY - Case-based MCQ 112
CASE STUDY - Case-based MCQ 21
Assertion-Reason based Multiple Choice Questions 115
Assertion-Reason based Multiple Choice Questions 28
Self-Assessment Tests 116
Chapter 5
Chapter 2
Organising 129-159
Principles of Management 40-78 Multiple Choice Questions 130
Multiple Choice Questions 41 CASE STUDY - Case-based MCQ 141
CASE STUDY - Case-based MCQ 57 Assertion-Reason based Multiple Choice Questions 145
Assertion-Reason based Multiple Choice Questions 64 Self-Assessment Tests 147
Chapter 11
Chapter 3 Marketing 160-197
Business Environment 79-105 Multiple Choice Questions 161
Multiple Choice Questions 80 CASE STUDY - Case-based MCQ 182
CASE STUDY - Case-based MCQ 87 Assertion-Reason based Multiple Choice Questions 184
Assertion-Reason based Multiple Choice Questions 90 Self-Assessment Tests 186
CBSE Sample Question Paper 2021-22 (Term-I) 198-205
10 Sample Question Papers (for Practice) 206-296

CHAPTER-1 Nature and Significance of Management EXAM HANDBOOK Business Studies XII 7
(for CBSE Term-I Examination November-December 2021)
Chapter 1
Nature and Significance of
Management
Rationalised Syllabus for CBSE Term-I Learning Outcomes
Examination (November - December 2021)
 Management - concept, objectives, and importance  Understand the concept of management
 Explain the meaning of ‘Effectiveness' and 'Efficiency'
 Discuss the objectives of management
 Describe the importance of management

 Management as Science, Art and Profession  Examine the nature of management as a science, art
and profession
 Levels of Management  Understand the role of top, middle and lower levels of
management
 Management functions-planning, organizing, staffing,  Explain the functions of management
directing and controlling
 Coordination- concept and importance  Discuss the concept and characteristics of coordination
 Explain the importance of coordination
Topics Deleted for CBSE Term-I 2021 Exam No Topic Deleted
Author's Remarks on Revised Syllabus 2021-22 No Topic deleted for CBSE Term-I 2021 Exam
8 EXAM HANDBOOK Business Studies XII Shree Radhey Publications (Subhash Dey)
Multiple Choice Questions (MCQs)

1. The objective of management which consistently creates economic value for various constituents of society is:
(a) Organisational objective (b) Social objective
(c) Personal objective (d) Both Social and Personal objective
2. Arnav has recently started a business to sell computers. He hired a shop in Nehru Place in New Delhi, where he
assembles make computers and various components supplies them as per order. He performs a series of composite
but separate functions simultaneously and ensures that computers are delivered in time as per orders. These
functions are performed by all managers at all times. The feature of management highlighted above is:
(a) Management is a continuous process.
(b) Management is pervasive.
(c) Management is dynamic.
(d) Management is a group activity.
3. Management is essential for the following organisation(s):
(a) big or small (b) profit or non-profit
(c) services or manufacturing (d) All of these
4. Match the concept of management in Column I with their respective definition in Column II:
A. Effectiveness (i) Doing the task correctly and with minimum cost.
B. Efficiency (ii) Finishing the given task on time.
C. Process (iii) The primary functions or activities that management performs to get
things done.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
5. There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs. Input resources
are:
(a) money (b) materials and equipment
(c) persons required to do a particular task (d) All of these
6. At times, a business may concentrate more on producing goods with fewer resources i.e., cutting down cost but not
achieving the target production. Consequently, the goods do not reach the market and hence the demand for them
declines and competitors enter the market. This is a case of :
(a) being efficient but not effective (b) being effective but not efficient
(c) being both effective and efficient (d) All of these
7. “A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA,
Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in
culture, tradition and history.” Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process (b) Management is all pervasive
(c) Management is multi-dimensional (d) Management is a dynamic function
8. Match the dimension of management in Column I with their respective definition in Column II:
A. Management of work (i) In a factory, a product is manufactured, in a garment store a customer’s need
is satisfied and in a hospital a patient is treated. Management translates the
goals to be achieved and assigns the means to achieve it.
B. Management of people (ii) No matter what the organisation, it has some basic product or service to
provide in order to survive the flow of input material and the technology
for transforming this input into the desired output for consumption.
C. Management of operations (iii) The task of management is to make people work towards achieving
the organisation’s goals, by making their strengths effective and their
weaknesses irrelevant.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
9. “Every member of an organisation has a different purpose for joining the organisation but as members of the
organisation they work towards fulfilling the common organisational goal. This requires team work and coordination
of individual effort in a common direction.” Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process.
(b) Management is a group activity.
(c) Management is multi-dimensional.
(d) Management is a dynamic function.
10. “An organisation interacts with its external environment which consists of various social, economic and political
factors. In order to be successful, an organisation must change itself and its goals according to the needs of the
environment.” Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
11. “Management is an intangible force that cannot be seen but its presence can be felt in the way the organisation
functions. The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied, and there is orderliness instead of chaos.” Identify the characteristic of
management highlighted above.
(a) Management is an intangible force (b) Management is a group activity
12. “Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders including,
shareholders, employees, customers and the government. The main objective of any organisation should be to
utilise human and material resources to the maximum possible advantage.” Identify the objectives of management
highlighted above.
(a) Organisational Objectives (b) Social Objectives
(c) Personnel Objectives (d) None of these
13. Match the objective of management in Column I with their respective definition in Column II:
A. Survival (i) Increase in the number of employees, the number of products or the
increase in capital investment, etc.
B. Profit (ii) A vital incentive for the continued successful operation of the enterprise.
C. Growth (iii) An organisation must earn enough revenues to cover costs.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
14. Match the objective of management in Column I with their respective definition in Column II:
A. Organisational Objectives (i) Survival, profit and growth
B. Social objectives (ii) Providing basic amenities like schools and healthcare, etc.
C. Personnel objectives (iii) Satisfying diverse needs of employees, e.g. financial needs such as
competitive salaries and perks, social needs such as peer recognition
and higher level needs such as personal growth and development.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
15. “The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing,
staffing and controlling the activities of the organisation.”
Identify the point of importance of management highlighted above.
(a) Management helps in achieving group goals.
(b) Management increases efficiency.
(c) Management creates a dynamic organisation.
(d) Management helps in achieving personal objectives.
16. “Through motivation and leadership the management helps individuals to develop team spirit, cooperation and
commitment to group success.”
17. Which of the following is not a part of the importance of management – “Management helps in the development
of society”?
(a) It creates employment opportunities.
(b) It helps to provide good quality products and services.
(c) It adopts new technology for the greater good of the people.
(d) None of the above
18. “All management practices are based on the same set of principles; what distinguishes a successful manager from a
less successful one is the ability to put these principles into practice.” Identify the nature of management highlighted
above.
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) Management is both art and science
19. Match the features of management as an art in Column I with their respective explanation in Column II:
A. Existence of theoretical (i) There is a lot of literature available in various areas of management like
knowledge marketing, finance and human resources which the manager has to
specialise in.
B. Personalised application (ii) A manager applies these scientific methods and body of knowledge to a
given situation, an issue or a problem, in his own unique manner.
C. Based on practice and (iii) A manager is involved in the activities of the organisation, studies critical
creativity situations and formulates his own theories for use in a given situation. This
gives rise to different styles of management
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
20. Which of the following proves that management is not an exact science?
(a) Management has its own theory and principles that have developed over a period of time, but it also draws on
other disciplines such as Economics, Sociology, Psychology and Mathematics. Like all other organised activity,
management has its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes of these experiments are not
capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have to be modified according to a given
situation.
(d) Both (b) and (c)
21. “Unlike professions such as medicine or law which require a practicing doctor or lawyer to possess valid degrees,
nowhere in the world is it mandatory for a manager to possess any such specific degree.” Identify the characteristic
of the profession that Management does not fulfil in the statement being discussed above.
(a) Ethical code of conduct (b) Restricted entry
(c) Professional association (d) Service motive
22. “There are several associations of practising managers in India, like the AIMA (All India Management Association)
that has laid down a code of conduct to regulate the activities of their members. There is, however, no compulsion
for managers to be members of such an association nor does it have any statutory backing.” Identify the characteristic
of the profession that Management does not fulfil in the statement being discussed above.
23. “Profit maximisation as the objective of management does not hold true and is fast changing. Therefore, if an
organisation has a good management team that is efficient and effective it automatically serves society by providing
good quality products at reasonable prices.” Identify the characteristic of the profession that is not fully present in
management.
24. Management is a universal term used for certain functions performed by individuals in an enterprise who are bound
together in a hierarchy of relationships. Every individual in the hierarchy is responsible for successful completion of
a particular task. To be able to fulfill that responsibility he is assigned a certain amount of authority or the right to
take a decision. This authority-responsibility relationship binds individuals as superiors and subordinates and gives
rise to _____________.
(a) Characteristics of Management (b) Objectives of Management
(c) Levels of Management (d) Importance of Management
25. Match the levels of management in Column I with their designation in Column II:
A. Top Management (i) Foreman
B. Middle Management (ii) Production Manager
C. Supervisory or Operational (iii) Vice-President
Management
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
26. Match the levels of management in Column I with their function in Column II:
A. Top Management (i) They directly oversee the efforts of the workforce.
B. Middle Management (ii) They cooperate with other departments for smooth functioning of the
organisation.
C. Supervisory or Operational (iii) They are responsible for all the activities of the business and for its impact
Management on society.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
27. ______ is the management function of monitoring organisational performance towards the attainment of
organisational goals.
(a) Planning (b) Organising
(c) Directing (d) Controlling
28. Match the characteristics of coordination in Column I with their explanation in Column II:
A. Integrates group efforts (i) Coordination unifies unrelated or diverse interests into purposeful work
activity.
B. Ensures unity of action (ii) A manager has to coordinate the efforts of different people in a conscious
and deliberate manner.
C. A deliberate function (iii) It acts as the binding force between departments and ensures that all
action is aimed at achieving the goals of the organisation.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
29. The primary reason for coordination is that _________.
(a) It integrates the efforts of individuals, departments and specialists.
(b) Departments and individuals in the organisation are interdependent, i.e. they depend on each other for
information and resources to perform their respective activities.
(c) There is a need to harmonise individual goals and organisational goals.
(d) It is a continuous process
30. Mridul and his brother Rehan started a business of making handmade cards from waste material and named it
‘Fantasy. Their business started flourishing. They formulated attainable and time-bound overall goals and also
framed strategies for the achievement of these goals. For this, they gave permission to appoint the required
people who would be responsible for implementing and controlling those strategies. On the basis of the functions
highlighted above, identify the level at which the people will be appointed for implementing and controlling the
strategies :
(a) Top-level (b) Middle-level
(c) Supervisory-level (d) At all levels
31. The Production Manager of RK Ltd. Kushagra is very popular among his subordinates, He believes in application
of scientific principles of management to his organisation to increase productivity. Moreover, he applies them in a
personalised and a skilful manner in the light of the realities of a given situation. Being involved in the activities of
the organisation, he studies critical situation and formulates his own theories for a given situation. T
he nature of
management discussed in the above case is:
(a) Management as a Science (b) Management as an Art
(c) Management as an Inexact Science (d) Management as both an Art and a Science
32. A production manager was able to produce the desired output with minimum cost but not within the required
time. In this case the manager was:
(a) Effective only (b) Efficient only
(c) Both (a) and (b) (d) Neither effective nor efficient
33. Which of the following is not an indicator of growth of an organisation?
(a) Increase in number of employees (b) Increase in number of products
(c) Increase in capital investment (d) None of these
34. The following is not an objective of management:
(a) earning profits (b) policy making
(c) providing employment (d) growth of the organisation
35. Through ______ management helps individuals to develop team spirit, cooperation and commitment to group
success.
(a) Coordination (b) Supervision
(c) Controlling (d) Motivation and leadership.
36. __________ comprises the lower level in the hierarchy of the organisation.
(a) Vice president (marketing) (b) Production manager
(c) Foremen and supervisors (d) Chief operating officers
37. Foremen and Supervisors comprise _____________.
(a) Top level of management (b) Middle level of management
(c) Operational management (d) None of these
38. Which of the following statement best explains that “Management is an Art”?
(a) Two managers deal with the same problem differently.
(b) Management has drawn its knowledge from other disciplines also.
(c) No formal qualification is required for the appointment as a manager in a company.
(d) Outcomes of managerial actions cannot be predicted accurately.
39. Management is:
(a) an art. (b) a science.
(c) both art and science. (d) neither art nor science.
40. Which of the following is not a characteristic of a profession?
(a) Service motive (b) Restricted entry
(c) Based on practice and creativity (d) Well-defined body of knowledge.
41. The process by which a manager synchronises the activities of different departments is known as _____________.
(a) Coordination (b) Cooperation
(c) Organising (d) Supervision
42. Which of the following is not a function of management?

(a) Planning (b) Staffing
(c) Coordination (d) Controlling
43. Coordination is:
(a) a function of management. (b) the essence of management.
(c) an objective of management. (d) None of the above
44. It is through the process of _______ that a manager ensure the orderly arrangement of individual and group efforts
to ensure unity of action in the realisation of common objectives.
(a) Management (b) Organising
45. ____________ gives a common flows to group effort to ensure that performance is as it was planned and
scheduled.
(a) Planning (b) Controlling
(c) Coordination (d) Directing
46. The basic objective of any business is ____________.
(a) Survival (b) Profit
(c) Growth (d) Personal
47. Management is concerned with the efficient use of resources because __________________.
(a) they reduce costs. (b) they lead to higher profits.
(c) Both (a) and (b) (d) they help in finishing the given task on time.
48. __________ function of management decides who will do a particular task, where it will be done, and when it will
be done.
49. __________ function of management examines the activities and resources required to implement the plan.
50. The main task of the middle level managers is _____________________.
(a) to integrate diverse elements and coordinate the activities of different departments according to the overall
objectives of the organisation.
(b) to carry out the plans formulated by the top managers.
(c) to cooperate with other departments for smooth functioning of the organisation.
(d) to directly oversee the efforts of the workforce.
51. Supervisory management plays a very important role of the organisation since _____________.
(a) They interest with the actual workforce and pass in instructions of the middle management to the
workers.
(b) Supervisors directly oversee the efforts of the workforce and the quality and quantity of output depends on the
hard work, discipline and loyalty of the workforce.
(c) It is through their efforts that quality of output is maintained, wastage of materials is minimised and safety
standards are maintained.
(d) All of the above
52. The process of linking the activities of various departments is accomplished by _____________.
(a) Management (b) Organising
(c) Controlling (d) Coordination
53. In the absence of _____________ there is overlapping and chaos instead of harmony and integration of activities.
(a) Management (b) Cooperation
54. _____________ is concerned with the end result.

(a) Effectiveness (b) Efficiency
(c) Management (d) Coordination
55. Match the functions of management in Column I with their explanation in Column II:
A. Planning (i) Setting goals in advance and developing a way of achieving them effectively
and effectively.
B. Organising (ii) Establishing an atmosphere that encourages employees to do their best.
C. Directing (iii) Determining what activities and resources are required.
D. Controlling (iv) Determining what activities and outputs are critical to success
(a) (i), (ii), (iii), (iv) (b) (ii), (i), (iii), (iv)
(c) (iii), (ii), (i), (iv) (d) (i), (iii), (ii), (iv)
56. Match the functions of management in Column I with their explanation in Column II:
A. Organising (i) Leading, influencing and motivating employees to perform the tasks
assigned to them.
B. Staffing (ii) Recruitment and selection of the personnel.
C. Directing (iii) Assigning duties, grouping tasks, establishing authority and allocating
resources required to carry out a specific plan.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
57. Match the example in column I with the function in column II:
A. Planning (i) Matching outcomes with targets
B. Organising (ii) Objectives
C. Directing ( iii) Resources for implementation
D. Controlling (iv) Supervision and motivation
(c) (iii), (ii), (i), (iv) (d) (ii), (iii), (iv), (i)
58. Match the following activities in column I with their respective levels of management in column II:
A. Top management (i) Introducing a new product line and deciding the capital structure of the
company.
B. Middle management (ii) Recruitment of casual labourers.
C. Supervisory or Operational (iii) Devise a suitable advertising campaign to sell a new product/service a company
management is launching.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
59. Match the following concepts of management in column I with their explanations in column II:
A. Coordination (i) The force that binds all the other functions of management.
B. Efficiency (ii) Doing the right task, completing activities and achieving goals.
C. Effectiveness (iii) Doing the task correctly and with minimum cost.
(a) (i), (ii), (iii) (b) (i), (iii), (ii)
(c) (iii), (ii), (i) (d) (ii), (i), (iii)
60. Name the concept of management which involves the grouping of the required tasks into manageable departments
or work units and establishment of authority and reporting relationships within the organisational hierarchy.
(a) Coordination (b) Organising
61. One of the very important aspects of management is to make sure that the right people with the right qualification
are available at the right places and times to accomplish the goals of the organisation. Identify the aspect of
management.
(a) Planning (b) Coordination
(c) Organising (d) Staffing
62. “McDonalds, the fast food giant made major changes in its menu to be able to survive in the Indian market.”
Identify the characteristic of management highlighted in the above statement.
(a) Management is a goal-oriented process (b) Management is a group activity
63. ‘In order to be successful an organisation must change its goals according to the needs of the environment.’
Which characteristic of management is highlighted in the statement?
(a) Management is multi-dimensional (b) Management is a group activity
(c) Management is a dynamic function (d) Management is a goal-oriented process
64. “Successful organizations do not achieve their goals by chance but by following a deliberate process”. Identify the
process highlighted here.
(c) Management (d) All of these
65. Suhasini, the General Manager of Fabmart, perfoms the managerial functions of planning, organising, staffing,
directing and controlling as an ongoing process. Which management feature is highlighted by this?
(b) Management is a a continuous process
(c) Management is multi-dimensional
(d) Management is a dynamic function
66. Why is management considered a multi-faceted concept?
(a) Because management is a complex activity that has three main dimensions: management of work, management
of people and management of operations.
(b) The activities involved in managing an enterprise are common to all organisations whether economic, social or
political.
(c) The process of management is a series of continuous, composite, but separate functions (planning, organising,
directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.
67. To meet the objectives of the firm, the Asian Paints contributed large amount of funds to enable farmers to use
local resources effectively. Identify the management objective it tried to achieve.
68. Radhika Ltd. uses environment-friendly methods of production. Identify the objective it is trying to achieve.
(a) Social Objectives (b) Personnel Objectives
(c) Organisational Objectives (d) None of these
69. In this first year of operation, the revenues generated by Max Industries from sale of its products are just sufficient
to cover the cost of production. Which organisational objective is met in the given case?
(c) Growth (d) All of these
70. Raheja Ltd. is diversifying its product lines. What organisational objective it is trying to achieve?
71. Ritu is the manager of the northern division of a large corporate house. What is her main task?
(a) To formulate overall organisational goals, and frame strategies for their achievement.
(b) To carry out the plans formulated by the top managers.
(c) To ensure that their department has the necessary personnel.
(d) To interact with the actual work force and pass on instructions of the management to the workers.
72. Your grandfather is working in an MNC as chief operating officer. At which level of management he is working?
(a) Top Level Management (b) Middle Level Management
(c) Operational Management (d) Supervisory Management
73. At which level of management are the managers responsible for maintaining the quality of output and the safety
standards?
(c) Operational Management (d) All of these
74. At which level of management the managers are responsible for the welfare and survival of the organisation?
75. “Management is the systematised body of knowledge that explains certain general truths.” Identify the nature of the
management highlighted in the statement.
(a) Management as a science (b) Management as an art
(c) Management as a profession (d) Management is both art and science
76. “Management is skillful and personal application of existing knowledge to achieve desired results.” Identify the
nature of the management highlighted in the statement.
77. It is the force which binds all other functions of management. It is the common thread that runs through all
activities such as purchase, production, sales and finance to ensure continuity in the working of the organisation.
Identify it.
78. Which of the following statement best explains the “Management is an Art”?
79. At which level of management coordination takes place in an organisation?
80. In Flipmart Co. Ltd. the production and sales department have to coordinate their work, so that production takes
place according to the demand in the market. State the feature of coordination highlighted here.
(a) Coordination integrates group efforts. (b) Coordination ensures unity of action.
(c) Coordination is a continuous process. (d) Coordination is an all pervasive function.
81. To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to physically challenged
persons. Identify the organisational objective it is trying to achieve.
(c) Growth (d) Social objectives
82. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is working.
83. Name the level of management which is a team consisting of managers from different functional levels, heading
finance, marketing, etc, for example, chief finance officer, vice president (marketing).
(c) Operational Management (d) None of these
84. In today’s scenario, organisations look for individuals with specific qualifications and experience to manage them. It
has also been observe that there has been an increase in the corporate form of business and increasing emphasis on
managed business concerns. What does the above statement imply?
85. Name the process which provides the requisite amount, quality, timing and sequence of efforts and ensures that
planned objectives are achieved with a minimum of conflict.
(a) Organising (b) Coordination
(c) Management (d) Controlling
86. A firm plans in advance and has a sound organisation structure with efficient supervisory staff and control system
but on several occasion it finds that plans are not being adhered to. It leads to confusion and duplication of work.
Advise remedy.
(a) Directing (b) Coordination
(c) Management (d) Controlling
87. Das is the Managing Director of ‘Gamut Ltd.’, manufacturing different varieties of cheese. He has an efficient team
working under him consisting of Rajat, the Production manager, Vinay – the Marketing manager and Adit – the
Finance manager. They understand and interpret the policies made by Das, ensure that their departments have
adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives. I dentify
the level of management they are working.
88. Name the process of designing and maintaining an environment in which individuals working together in groups
efficiently accomplish selected aims.
(a) Management (b) Coordination
(c) Organising (d) Directing
89. The purchase, production and sales managers at Sharda Ltd, a firm manufacturing ready made garments are
generally at a conflict, as they have their own objectives. Usually each thinks that only they are qualified to evaluate,
judge and decide on any matter, according to their professional criteria.
Name the concept which will be required by the CEO Mr. Raman, to reconcile the differences in approach, interest
or opinion in the organisation.
90. In a company, the marketing department’s objective is to increase sales by 10 per cent by offering discounts. But,
the finance department does not approve of such discounts as it means loss of revenue. These kinds of conflict arise
in organisations because of the lack of one of the concepts of management. Identify the concept highlighted above.
(a) Management (b) Directing
(c) Organising (d) Coordination
91. In which two functions of management do managers at the top level spend more time than managers at lower level of the
organisations?
(a) Planning and Organising (b) Planning and Controlling
(c) Planning and Directing (d) Planning and Staffing
92. Vrinda Ltd. is able to achieve the target production of 5,000 units within the prescribed period. However, to achieve
the target on time, additional ` 40,000 were paid as overtime wages to employees. Vrinda Ltd. is __________ .
(a) efficient but not effective (b) effective but not efficient
(c) both effective and efficient (d) Neither effective nor efficient
93. Volvo Ltd.’s target is to produce 10,000 shirts per month at a cost of `100/- per shirt. The Production Manager
achieved this target at a cost of `90/- per shirt. The Production Manager is ___________.
94. Hero Ltd.’s target is to produce 10,000 shirts per month at a cost of `150 per shirt. The Production Manager was
able to produce 10,000 shirts at a cost of `140 per shirt but not within the stipulated time. As a result, there was
loss of revenue. In this case the Production Manager is _____________.
95. Tina, a manager of Shikhar Automobiles Ltd.; establishes an atmosphere that encourages employees to do their
best. She also creates an environment that makes them want to work. She directs through praise and criticism in
such a way that it brings out the best in the employee. Identify the concept highlighted in the above para.
96. Directors of Aman Ltd. assigned the task of implementing the plans and policies framed by the board to all the
departmental heads. Departmental heads appointed supervisors, superintendent, executives, etc. so that work can
be assigned to workers as per the plan. Supervisors kept a check on workers as per the plan.
Identify the feature of management highlighted in above para.
97. Social-Connect Pvt. Ltd. is a mobile manufacturing company. The manager of the company observed that the
market is dynamic and a lot of changes were taking place in the mobile market and hence, the risk of the product
becoming obsolete is high. The designs of the phones are governed by requirements and preferences of the
customers. He started incorporating new and advanced features taking clue from the consumers and with the help
of his workers.
Identify the characteristic of management highlighted in this case.
98. Anushka Fabric Ltd. has been able to achieve its production targets as per plans using a new German technology. Its
employees are happy and satisfied with their pay scale and working environment in the organisation. All the work
proceeds as per plans and there is orderliness in the entire functioning of the organisation. Identify the feature of
the management discussed above.
(a) Management is an intangible force. (b) Management is a group activity.
(c) Management is a dynamic function. (d) Management is a goal-oriented process.
99. ABC Group of companies decided to donate 2% of its sales 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 of management depicted in the given case.
100. Management of Alpha Ltd. has installed a special recycling plant to recycle the waste instead of dumping the waste
in ground. It is also providing employment opportunities to local residents. Identify the objective of management
the company is fulfilling.
101. The manager of Beta Ltd. is very efficient and effective and makes sure that all the employees and workers in his
team perform the task on time with minimum cost. His main focus is on cost reduction. So he never listens to
the demand of workers for increasing wages. He even gives no opportunity to workers for promotion. As a result
workers started becoming frustrated and disheartened all the time. Which objective of management could not be
achieved by the manager?
102. Rajiv Automobiles aims to produce and sell 1,00,000 cars in 2019. To achieve this objective, the production
department strives for timely production and sales department takes all possible steps to sell them. Due to combined
efforts of all the departments, the company is able to achieve its target. Which of the following point of importance
of management is highlighted in the given case?
(a) Management helps in achieving group goals
(b) Management increases efficiency
(c) Management creates a dynamic organisation
(d) Management helps in achieving personal objectives
103. Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits had
started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the
business environment to find out the reasons for this decline.
Identify the level of management at which Ashutosh Goenka was working.
104. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. He found that his
department was under-staffed and other departments were not cooperating with his department for smooth
functioning of the organization. Therefore, he ensured that his department has the required number of employees
and its cooperation with other departments is improved. Identify the level at which Rishitosh Mukerjee was
working.
105. Hema is one of the most successful managers of her company, ‘Kobe Ltd.’ She uses her creativity and initiative
in handling challenging situations at work. The knowledge gained by her during her student days at a renowned
management institute as well as through her observation and experience over the years is applied by Hema in
a skillful manner in the context of the realities of a given situation. She often reads books and other literature
in various fields of management to keep her knowledge updated. An aspect of the nature of management is being
highlighted in the above description. Identify the aspect.
106. In X Ltd., the purchase department purchased 10 tonnes of raw material for the production department. However,
the production department needed just 7 tonnes. Due to this reason, goods were over produced and were not
accepted by Sales department. As a result, some goods remained unsold. Which aspect of management is lacking?
(c) Staffing (d) Controlling
107. Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the
complexities of modern technology and the diversity of tasks to be performed. Organisations, therefore, need to
employ a number of specialists. Specialists usually think that they only are qualified to evaluate, judge and decide
according to their professional criteria. They do not take advice or suggestions from others. This often leads to
conflict amongst different specialists as well as others in the organisation. State the reason why coordination is
required in such a case.
(a) To harmonise individual goals and organisational goals.
(b) To integrate the efforts of individuals and departments.
(c) To reconcile the differences in approach, interest or opinion of the specialists.
(d) To secure unity of action in the realisation of a common purpose.
108. Which of the following statement is false?
(a) Planning is the function of determining in advance what is to be done and who is to do it.
(b) Planning cannot prevent problems.
(c) Efficiency means doing the task correctly and with minimum cost.
(d) Coordination is the function of the top management.
109. “Any one can be called a manager irrespective of the educational qualification possessed.”
Identify the characteristic of the profession that Management does not fulfil in the statement being discussed above.
(a) Ethical code of Conduct
(b) Professional Association
(c) Restricted Entry
(d) Service Motive
110. Name the process of working with and through others to effectively achieve organisational objectives by efficiently
using limited resources in a changing environment.
(a) Management (b) Planning
(c) Organising (d) Controlling
111. ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of
different people in a conscious manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Coordination is an all-pervasive function
112. H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth.
The management of the company believes that a satisfied employee creates a satisfied customer, who in turn creates
profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to all its employees. All the
employees are happy working in the organisation because of personal growth and development. T he company has
a strong sense of social responsibility. It has set up an engineering college in which one-third of the students are girls
to whom the company gives 50% scholarship.
Which of the following objective of management is highlighted in the above case?
(a) Organisational Objectives
(b) Social Objectives
(c) Personnel Objectives
(d) All of these
113. Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the
conflict amongst different specialists as well as others in the organisation.
Identify the reason why coordination is required in such a case.
(a) Coordination ensures unity of action to avoid inter-departmental conflicts.
(b) Coordination integrates group efforts by unifying diverse interests into purposeful work activity.
(c) Coordination is required to reconcile the differences in approach, interest or opinion of the specialists.
(d) Coordination ensures that all individuals work towards the common goals of the organization.
Answer Key
1. (b) 2. (a) 3. (d) 4. (b) 5. (d) 6. (a) 7. (b) 8. (d)
9. (b) 10. (d) 11. (a) 12. (a) 13. (c) 14. (a) 15. (b) 16. (d)
17. (d) 18. (b) 19. (d) 20. (d) 21. (b) 22. (a) 23. (d) 24. (c)
25. (c) 26. (c) 27. (d) 28. (d) 29. (b) 30. (b) 31. (d) 32. (b)
33. (d) 34. (b) 35. (d) 36. (c) 37. (c) 38. (a) 39. (c) 40. (c)
41. (a) 42. (c) 43. (b) 44. (c) 45. (c) 46. (a) 47. (c) 48. (b)
49. (b) 50. (b) 51. (d) 52. (d) 53. (c) 54. (a) 55. (d) 56. (c)
57. (d) 58. (d) 59. (b) 60. (b) 61. (d) 62. (d) 63. (c) 64. (c)
65. (b) 66. (a) 67. (b) 68. (a) 69. (a) 70. (c) 71. (b) 72. (a)
73. (c) 74. (a) 75. (a) 76. (b) 77. (b) 78. (a) 79. (d) 80. (b)
81. (c) 82. (b) 83. (a) 84. (c) 85. (b) 86. (a) 87. (b) 88. (a)
89. (b) 90. (d) 91. (a) 92. (b) 93. (c) 94. (a) 95. (d) 96. (b)
97. (c) 98. (a) 99. (b) 100. (b) 101. (c) 102. (a) 103. (a) 104. (b)
105. (b) 106. (b) 107. (c) 108. (d) 109. (c) 110. (a) 111. (b) 112. (d)
113. (c)
Case Study
Case-based Multiple Choice Questions (MCQs)
Case Study 1: Read the following text and answer question no. 1-4 on the basis of the same:
Founded in 1868, by Jamsetji Nusserwanji ,Tata the Tata Group is a global business conglomerate operating in over
100 countries across 5 continents. His strong sense of values and spirit of innovation and entrepreneurship are a legacy
that continues to guide Tata companies till date. He had four goals in life: setting up an iron and steel company, a
world-class learning institution, a unique hotel and a hydro-electric plant. Only the hotel became a reality during his
lifetime, with the inauguration of the Taj Mahal Hotel at Colaba waterfront in Mumbai on 3 December 1903 at the
cost of 11 million (worth 11 billion in 2015 prices). At that time it was the only hotel in India to have electricity.
He believed that satisfied workers create satisfied workers and in lieu to this principle he paid all his workers gratuity,
provident fund well before it was made mandatory. His management skills were clearly evident when minute details
were chalked in planning and building the entire city of Jamshedpur. The values and principles that have governed the
business for a century are enshrined in the Tata Code of Conduct (TCOC).
From an early foray into steel and automobiles, to staying abreast of the latest technologies, the Tata Group today has
29 publicly-listed Tata enterprises, which include Tata Steel, Tata Motors, Tata Consultancy Services, Tata Power, Tata
Chemicals, Tata Global Beverages, Tata Teleservices, Titan, Tata Communications and Indian Hotels. The group has a
combined market capitalisation of around $103.51bn (2016-17).
Tata has a strong sense of social responsibility. They balance economic prosperity, environmental responsibility and
social benefits for the community. In India, they are a partner in progress with Odisha, and believe in taking its
stakeholders forward in its journey of growth. Tata Steel Thailand is one of the first 30 companies that joined UNICEF
in Child Friendly Business in “The Children Sustainability Forum” to make a commitment in protecting children’s
rights. Tata Steel Europe’s Community Partnership Programme- ‘Future Generations’, with sub-themes of education,
environment, health and Well-being works across the UK, assisting job and wealth creation by supporting small and
medium businesses with finance and business premises.
They also play a constructive role in addressing climate change – both by reducing carbon footprint, and by creating high
performance steels that lead to fuel-efficient vehicles and energy-efficient buildings. Their Environmental Management
Systems meet the ISO 14001 standards at all of their main manufacturing sites.
Shaped by a lineage of sound and straightforward business principles, the Tata Group is built on a foundation of trust
and transparency. Building such huge enterprises, sustaining and running them profitably are possible only through
effective and efficient management and co-ordination at all levels.
Source: www.tatasteel.com; Accessed June, 2018
1. Which of the following function must be performed by Jamsetji Nusserwanji?
(a) Oversee the efforts of the workforce.
(b) Motivate personnel to achieve desired objectives.
(c) Welfare and survival of the organisation
(d) All the above
2. "He believed that satisfied workers create satisfied workers and in lieu to this principle he paid all his workers
gratuity, provident fund well before it was made mandatory." Which objectives have been fulfilled by the
management of Tata Steel?
(c) Personnel Objectives (d) Both (a) and (c)
3. Which of the following highlights the social objectives fulfilled by the management of Tata Steel?
(a) Tata Steel Thailand is one of the first 30 companies that joined UNICEF in Child Friendly Business in
“The Children Sustainability Forum” to make a commitment in protecting children’s rights.
(b) Tata Steel Europe’s Community Partnership Programme- ‘Future Generations’, with sub-themes of
education, environment, health and Well-being works across the UK, assisting job and wealth creation by
supporting small and medium businesses with finance and business premises.
(c) They also play a constructive role in addressing climate change – both by reducing carbon footprint, and by
creating high performance steels that lead to fuel-efficient vehicles and energy-efficient buildings.
(d) All the above
4. Tata Steel has risen to the top because of ______________.

(a) Effective and Efficient Management
(b) Coordination at all levels
(c) Both (a) and (b)
(d) Strong sense of values and spirit of innovation and entrepreneurship
Smita Rai is a 38-year old entrepreneur who grew up in a rural district called Namchi, South Sikkim. She was very good in art
and craft particularly, Wax moulds. She loved to make candles, often she make into toys and small pieces of art with wax and
used it as a gift for her friends and relatives. She was loved and appreciated for these. Smita was never happy with the conditions
of the women in her district as most were poor and jobless, so she planned to do something to solve their problems because she
knew that imparting skills for livelihood is needed but she had no idea of how to implement her idea.
In August 2012, she met Abishek Lama, the Branch Manager of NEDFI, Namchi Branch, a financial corporation which
support local people with skills development programs and also channelize them into revenue generating activities. Smita
got interested. “I love making candles, then, why not convert my hobby into a venture and involve these rural women also”,
she thought. This led to the establishment of Namchi Designer Candles with the help of NEDFI, some financial institutions
and support from different stakeholders in various dimensions.
Since then, the women have never looked back, despite challenges. The women also faced a lot of harassment but they could
overcome all those troubles. Namchi Designer Candles has 100 per cent women as employees and they also produce varieties
of candles. During Diwali, they produce customized candles meant for the occasion. These Diwali themed candle has been a
success in Sikkim as its demand increases on a yearly basis. Namchi Designer Candles has been receiving numerous awards
such as North East Women Entrepreneur of the year 2015-2016 for Sikkim and Sreemanta Shankar Mission of Guwahati
on 26th April 2018 at New Delhi.
A typical day in Smita’s life consists of a series of interrelated and continuous functions. She has to plan a special
festive collection for Diwali. This means organising more funds and recruiting more workers. She also has to regularly
communicate with her suppliers to ensure that deadlines regarding delivery of goods are met. In the course of the day, she
meets customers for a general feedback and any suggestions that they may have.
The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving organisational
objectives harmoniously. The purchase department is responsible for procuring fabric. This then becomes the basis of the
activities of the production department and finally sales can take place. If fabric purchased is of an inferior quality or is not
according to the specifications of the production department, further sales will also decline.
5. “Smita was never happy with the conditions of the women in her district as most were poor and jobless, so she
planned to do something to solve their problems because she knew that imparting skills for livelihood is needed..."
Which objectives of management does Smita Rai want to fulfill in her organisation?
(c) Personnel Objectives (d) All of these
6. At which level of management does Abishek Lama work at NEDFI?
(a) Top Level Management
(b) Middle Level Management
(c) Operational Management
(d) All of these
7. "She also has to regularly communicate with her suppliers to ensure that deadlines regarding delivery of goods are
met." Which function of management is performed by Smita Rai?
(a) Planning (b) Directing
(c) Controlling (d) Both (a) and (c)
8. "The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving
organisational objectives harmoniously." Identify the characteristic of coordination discussed above.
(a) Coordination integrates group efforts
(b) Coordination ensures unity of action
(d) Coordination is an all pervasive function
The Dabbawallas of Mumbai is the story of a SIX SIGMA business enterprise. The success of the business lies in the
complex yet well coordinated exercise that is carried out on the streets of Mumbai day after day. What is the secret behind
the efficiency with which their business is conducted?
The story of the dabbawallas begins in the kitchens of Mumbai. After they step out of their door, someone begins the
time-consuming process of preparing the worker a fresh, homecooked lunch. What happens next for demonstrates the
coordination of the dabbawallas system. The first dabbawalla picks up the tiffin from home and takes it to the nearest
railway station.The second dabbawalla sorts out the dabbas at the railway station according to destination and puts them
in the luggage carriage. The third one travels with the dabbas to the railway stations nearest to the destinations. The fourth
one picks up dabbas from the railway station and drops them off at the offices. By mid-morning, thousands of dabbawallas
are bicycling through the streets of Mumbai, ensuring a hot home cooked lunch for their customers. The whole tiffin
distribution requires negligible technology. The dabbawallas rely on low capital and use cycles, wooden carriages and local
trains to achieve their target. The dabbawallas, thus, ensure that the organisation earns enough revenues to cover costs.
9. What is the secret of success of the business of the Dabbawallas as highlighted in the above case?
(a) Quality of management (b) Division of work and specialisation
(c) Coordination (d) All of these
10. "The first dabbawalla picks up the tiffin from home and takes it to the nearest railway station.The second dabbawalla
sorts out the dabbas at the railway station according to destination and puts them in the luggage carriage. The third
one travels with the dabbas to the railway stations nearest to the destinations. The fourth one picks up dabbas from
the railway station and drops them off at the offices." Which characteristic of coordination is highlighted above?
(a) Coordination integrates group efforts (b) Coordination ensures unity of action
(c) Coordination is a continuous process (d) All of these
11. "The dabbawallas rely on low capital and use cycles, wooden carriages and local trains to achieve their target. The
dabbawallas, thus, ensure that the organisation earns enough revenues to cover costs." Which of the following
organisational objective is highlighted above?
(c) Growth (d) None of these
12. "The story of the dabbawallas begins in the kitchens of Mumbai. After they step out of their door, someone begins
the time-consuming process of preparing the worker a fresh, home-cooked lunch." Which function of management is
highlighted above?
Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave ovens,
refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are declining.
The production department blames marketing for not meeting sales targets and marketing blames production department
for producing goods, which are not of good quality meeting customers expectations. The finance department blames both
production and marketing for declining return on investment and bad marketing.
13. What quality of management do you think the company is lacking?
(c) Directing (d) Coordination
14. Which of the following characteristic of management is not fulfilled by the company?
(c) Management is an intangible force
(d) Management is all pervasive
15. Why do these kinds of inter-departmental conflicts arise in organisations?
(a) All the departments may have their own objectives, policies and their own style of working.
(b) Each department is performing activities in isolation from others.
(c) Barriers between departments are becoming more rigid.
16. What step(s) should the company management take to bring the company back on track?
(a) Linking the activities of various departments through coordination.
(b) The activity of each department needs to be focused on attainment of common organisational goals.
(c) Managers need to reconcile differences in approach, timing, effort or interest.
(d) All the above
Forex Ltd. is a private limited company with several branches all over India. It promotes the sales of Indian handloom and
handicraft products while providing equitable employment to traditional artisans. Mr. Brijesh, a branch manager of the
company plans his winter collection in the month of June itself. He has to ensure that there is adequate workforce and
continuously monitor whether production is proceeding according to plans. He also provides direction and motivation
to his employees. The purchase, production and sales departmental efforts are coordinated by Mr. Brijesh for achieving
organisational objectives harmoniously. The production and the sales department coordinate their work, so that production
takes place according to the demand in the market. The purchase department is responsible for procuring material. This
then becomes the basis of the activities of the production department and finally sales can take place.
17. "It promotes the sales of Indian handloom and handicraft products while providing equitable employment to
traditional artisans." Which of the following objectives of management are fulfilled by Forex Ltd.?
18. At which level of management is Mr. Brijesh working in Forex Ltd.?
(c) Operational Management (d) Supervisory Management
19. "He has to ensure that there is adequate workforce and continuously monitor whether production is proceeding
according to plans." Identify the functions of management highlighted in the above statement.
(a) Planning and Controlling (b) Staffing and Planning
(c) Staffing and Directing (d) Staffing and Controlling
20. "The purchase, production and sales departmental efforts are coordinated by Mr. Brijesh for achieving organisational
objectives harmoniously. The production and the sales department coordinate their work, so that production takes
place according to the demand in the market."
Identify the characteristic of coordination highlighted above.
(a) Coordination is an all pervasive function.
(b) Coordination ensures unity of action.
(c) Coordination is a continuous process.
(d) Both (a) and (b)
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian
handloom and handicraft products. It sells fabrics, furnishings, ready-mades and household items are made out of
traditional Indian fabrics.
Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase
form different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints
for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively
expensive on the front of affordability for an average customer.
Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a
regular basis to keep costs under control.
21. “She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in
bright colour on silk.”
Which function of management is highlighted in this context?
(a) Controlling (b) Staffing
(c) Planning (d) Directing
22. In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.” The
above line focuses on which feature of management?
(a) Management is an intangible force. (b) Management is a goal oriented process.
(c) Management is pervasive in nature. (d) Management is a continuous process.
23.
With reference to the above case, at which level of management Sana is working?
(a) Lower level (b) Top level
(c) Middle level (d) Shop floor
24.
“Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed
covers on a regular basis to keep costs under control.”
Which function of management is highlighted in this context?
(a) Controlling (b) Staffing
(c) Organising (d) Planning
Indian Railways has launched a new broad gauge solar power train which is going to be a path breaking leap towards
making trains greener and more environment friendly. The solar power DEMU (Diesel Electric Multiple Unit) has 6
trailer coaches and is expected to save about 21,000 liters of diesel and ensure a cost saving of `12,00,000 per year.
25. Which of the following objective of management is not highlighted in the above case?
26. "...new broad gauge solar power train which is going to be a path breaking leap towards making trains greener and
more environment friendly." Identify the objective of management achieved by Indian Railways in the given line.
27. "The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about 21,000
liters of diesel and ensure a cost saving of `12,00,000 per year."
Identify the economic objective of management achieved by Indian Railways in the given line.
28. Which level of management is responsible for launching a new broad gauge solar power train by the Indian
Railways?
(a) Top Management (b) Middle Management
Mr. Araeb, the director of Shavez Ltd., dealing in costume jewellery, strongly believes that the members of an organisation
should work towards fulfilling the common organisational goals. This requires team work and integration of efforts of all
individuals, departments and specialists.
Ashita and Lakshita are employees working in Shavez Ltd. The firm secured an urgent order for 1,000 bracelets that were
to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of `100 per
bracelet. Ashita was able to produce the required number within the stipulated time at the cost of ` 55,000 whereas,
Lakshita was able to produce only 450 units at a cost of ` 90 per unit.
29. At which level of management is Mr. Araeb working in Shavez Ltd.?
30. "This requires team work and integration of efforts of all individuals, departments and specialists."
Identify the concept of management discussed here.
(a) Staffing (b) Efficiency
(c) Effectiveness (d) Coordination
31. "... strongly believes that the members of an organisation should work towards fulfilling the common organisational
goals." Identify the characteristic of management which is reflected here.
(a) Management is a goal-oriented process. (b) Management is a group activity.
(c) Management is multi-dimensional. (d) Management is a dynamic function.
32. Which of the following statement is true?

(a) Ashita is effective but not efficient.
(b) Lakshita is efficient but not effective.
(c) Both Ashita and Lakshita are effective and efficient.
(d) Neither Ashita nor Lakshita is effective/efficient.
Ms. Shonali, the managing director of XYZ Power Ltd. set up a factory for manufacturing solar lanterns in a remote village
as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the
costs and the risks. The demand of lanterns was increasing day by day, so the company decided to increase production to
generate higher sales. For this they decided to employ people from the nearby villages as very few job opportunities were
available in that area. The company also decided to provide basic amenities like schools and healthcare, etc. for community.
33. Identify the level of management in which Ms. Shonali is working in XYZ Power Ltd.
34. Identify the objective of management discussed above.
35. “The revenue earned by the company was sufficient to cover the costs and the risks.” Identify the objective of
management highlighted here.
36. “...decided to provide basic amenities like schools and healthcare, etc. for community.”
Identify the objective of management highlighted here.
Fashion India Limited is a chain of ladies garments boutiques where most of the work is done manually. Mr. Nityanand
is responsible for the welfare and survival of the organisation. He formulates overall organisational goals and strategies for
their achievement.
Due to coming of international brands in India, the company is finding it difficult to compete on two fronts—finishing
and embroidery work. Mr. Gaur, the production manager of the company, realised that without modern machines it
would not be possible for them to survive for long. The company purchased new hi-tech modern machines from Germany.
During the production process, the manager observed that the quality of production is not as per standard and very often
production is disrupted due to break-down of machinery. The workers get frustrated by continuous rejection of output
and started showing resistance towards new technology. To increase the efficiency of the workers, the company decided
to train their workers on-the-job under the able guidance of specialists. The workers who are able to pick the skills are
promoted and made incharge of the not so trained groups. This created positive impact and everybody became keen to
learn. Suggestions from the workers are valued and workers are encouraged to communicate freely.
37. At which level of management is Mr. Nityanand working in Fashion India Limited?
(a) Top Management
(b) Middle Management
(c) Operational Management
38. At which level of management is Mr. Gaur working in Fashion India Limited?
39. “The workers who are able to pick the skills are promoted and made incharge of the not so trained groups. This created
positive impact and everybody became keen to learn.” Identify the importance of management highlighted here.
40. Which of the following point of importance is not discussed in the above case?
(a) Management helps in the development of society
Smita Rai is the director of Namchi Designer Candles, which has 100 per cent women as employees. They also produce
varieties of candles. During Diwali, they produce customized candles meant for the occasion. Smita plans her dewali
collection in the month of June itself. She has to then ensure that there is adequate workforce and continuously monitor
whether production is proceeding according to plans. Her marketing department also has to be briefed in time to prepare
their promotional and advertising campaigns.
At Namchi Designer Candles, the production and sales department coordinate their work, so that production takes place
according to the demand in the market.
The purchase, production and sales departmental efforts have to be coordinated by Smita for achieving organisational
objectives harmoniously. The purchase department is responsible for procuring fabric. This then becomes the basis of the
activities of the production department and finally sales can take place. If fabric purchased is of an inferior quality or is not
according to the specifications of the production department, further sales will also decline.
41. At which level of management is Smita Rai working in Namchi Designer Candles?
42. “... continuously monitor whether production is proceeding according to plans.” Identify the function of
management highlighted here.
43. Identify the concept of management discussed in the above case.
(a) Efficiency (b) Effectiveness
(c) Coordination (d) All of these
44. Which of the following characteristic of coordination is highlighted in the above case?
(a) Coordination is a continuous process. (b) Coordination ensures unity of action.
(c) Coordination is an all pervasive function. (d) All of these
Answer Key
1. (d) 2. (c) 3. (d) 4. (c) 5. (b) 6. (b) 7. (d) 8. (d)
9. (c) 10. (d) 11. (a) 12. (a) 13. (d) 14. (b) 15. (d) 16. (d)
17. (b) 18. (b) 19. (d) 20. (d) 21. (b) 22. (b) 23. (c) 24. (a)
25. (c) 26. (b) 27. (b) 28. (a) 29. (a) 30. (d) 31. (b) 32. (a), (b)
33. (a) 34. (a), (b) 35. (a) 36. (b) 37. (a) 38. (b) 39. (d) 40. (a)
41. (a) 42. (d) 43. (c) 44. (d)
Multiple Choice Questions (MCQ) on Assertion-Reasoning Type
Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case:
(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.
1. Assertion (A): Successful organisations do not achieve their goals by chance but by following a deliberate process
called ‘management’.
Reason (R): People in organisations are performing diverse tasks but they are all working towards the same goal.
Management aims at guiding their efforts towards achieving a common objective — a goal.
2. Assertion (A): A successful enterprise has to achieve its goals effectively and efficiently.
Reason (R): It is important for management to achieve goals (effectiveness) with minimum resources i.e., as
efficiently as possible while maintaining a balance between effectiveness and efficiency.
3. Assertion (A): There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs.
Reason (R): If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then effectiveness
has increased.
4. Assertion (A): Management is considered to be a multi-dimensional/multi-faceted concept.
Reason (R): Management is a complex activity that has three main dimensions-management of work, management
of people and management of operations.
5. Assertion (A): Coordination is a one-time function of the top management.
Reason (R): Coordination begins at the planning stage and continues till controlling.
6. Assertion (A): Coordination is not an exclusive function of the top management.
Reason (R): Coordination is the responsibility of all managers-top, middle and operational levels.
7. Assertion (A): Coordination is the essence of management.
Reason (R): Coordination is a process by which a manager synchronises the activities of different departments. It is
the force that binds all other functions and thus called the essence of management.
8. Assertion (A): Coordination is a separate function of management.
Reason (R): Like a thread in a garland, coordination is a part of all management functions.
9. Assertion (A): Management is considered to be both an art and science.
Reason (R): The practice of management is an art. However, managers can work better if their practice is based on
the principles of management. These principles constitute the science of management.
10. Assertion (A): Management is a full-fledged profession.
Reason (R): Management meets the exact criteria of a profession.
11. Assertion (A): Management is a series of continuous interrelated functions.
Reason (R): The process of management is a series of continuous, interrelated, but separate functions (planning,
organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all
the time.
12. Assertion (A): The main objective of any organisation should be to utilise human and material resources to the
maximum possible advantage, i.e., to fulfill the economic objectives of a business.
Reason (R): Management of an organisation has three goals - survival, profit and growth.
13. Assertion (A): Planning cannot prevent problems.
Reason (R): Planning can only predict the problems and prepare contingency plans to deal with then if and when
they occur.
14. Assertion (A): Management is concerned with the efficient use of resources.
Reason (R): They reduce costs and ultimately lead to higher profits.
15. Assertion (A): Management is all pervasive.

Reason (R): The activities involved in managing an enterprise are common to all organisations whether economic,
social or political.
16. Assertion (A): Management is a dynamic function.
Reason (R): An organisation interacts with its external environment which consists of various social, economic and
political factors. In order to be successful, an organisation must change itself and its goals according to the needs of
the environment.
17. Assertion (A): Management is a tangible force and its presence can be felt in the way the organisation functions.
Reason (R): The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied, and there is orderliness instead of chaos.
18. Assertion (A): Management is the skillful and personal application of existing knowledge to achieve desired results.
Reason (R): Management is a Science.
19. Assertion (A): Coordination is an all pervasive function.
Reason(R): Coordination is required at all levels of management due to the interdependent nature of activities of
various departments. It integrates the efforts of different departments and different levels.
20. Assertion (A): Coordination is a deliberate function.
Reason (R): A manager has to coordinate the efforts of different people in a conscious and deliberate manner.
Answer Key
1. (a) 2. (a) 3. (c) 4. (a) 5. (d)
6. (a) 7. (a) 8. (d) 9. (a) 10. (b)
11. (a) 12. (c) 13. (a) 14. (a) 15. (a)
16. (a) 17. (d) 18. (c) 19. (a) 20. (a)
Self Assessment Test 1
Nature and Significance of Management

Time allowed : 45 min Maximum Marks : 20
Q.1 Read the following statements-Assertion (A) and Reason (R):
Assertion (A): Management is a tangible force and its presence can be felt in the way the organisation functions.
Reason (R): The effect of management is noticeable in an organisation where targets are met according to plans,
employees are happy and satisfied, and there is orderliness instead of chaos.
Select the correct alternative:
Q.2 Hero Ltd.’s target is to produce 10,000 shirts per month at a cost of `150 per shirt. The Production Manager
was able to produce 10,000 shirts at a cost of `140 per shirt but not within the stipulated time. As a result,
there was loss of revenue. In this case the Production Manager is _____________.
Q.3 Tina, a manager of Shikhar Automobiles Ltd.; establishes an atmosphere that encourages employees to do their
Q.4 Directors of Aman Ltd. assigned the task of implementing the plans and policies framed by the board to all the
departmental heads. Departmental heads appointed supervisors, superintendent, executives, etc. so that work can
be assigned to workers as per the plan. Supervisors kept a check on workers as per the plan.
Identify the feature of management highlighted in above para.
Q.5 It is the force which binds all other functions of management. It is the common thread that runs through all
activities such as purchase, production, sales and finance to ensure continuity in the working of the organisation.
Identify it.
Q.6 Which of the following statement best explains the “Management is an Art”?
Q.7 At which level of management coordination takes place in an organisation?
Q.8 Why is management considered a multi-faceted concept?
(a) Because management is a complex activity that has three main dimensions: management of work,
management of people and management of operations.
(b) The activities involved in managing an enterprise are common to all organisations whether economic, social
or political.
(c) The process of management is a series of continuous, composite, but separate functions (planning,
organising, directing, staffing and controlling). These functions are simultaneously performed by all
managers all the time.
Q.9 To meet the objectives of the firm, the Asian Paints contributed large amount of funds to enable farmers to use
local resources effectively. Identify the management objective it tried to achieve.
Q.10 Which of the following is not an indicator of growth of an organisation?
(a) Increase in number of employees (b) Increase in number of products
(c) Increase in capital investment (d) None of these
Q.11 The following is not an objective of management:
(a) earning profits (b) policy making
(c) providing employment (d) growth of the organisation
Q.12 Through ______ management helps individuals to develop team spirit, cooperation and commitment to group
success.
(a) Coordination (b) Supervision
(c) Controlling (d) Motivation and leadership.
Q.13 The primary reason for coordination is that _________.
(a) It integrates the efforts of individuals, departments and specialists.
(b) Departments and individuals in the organisation are interdependent, i.e. they depend on each other for
information and resources to perform their respective activities.
(c) There is a need to harmonise individual goals and organisational goals.
(d) It is a continuous process
Q.14 Mridul and his brother Rehan started a business of making handmade cards from waste material and named it
‘Fantasy. Their business started flourishing. They formulated attainable and time-bound overall goals and also
framed strategies for the achievement of these goals. For this, they gave permission to appoint the required
people who would be responsible for implementing and controlling those strategies. On the basis of the functions
highlighted above, identify the level at which the people will be appointed for implementing and controlling the
strategies :
(a) Top-level (b) Middle-level
(c) Supervisory-level (d) At all levels
Q.15 The Production Manager of RK Ltd. Kushagra is very popular among his subordinates, He believes in application
of scientific principles of management to his organisation to increase productivity. Moreover, he applies them
in a personalised and a skilful manner in the light of the realities of a given situation. Being involved in the
activities of the organisation, he studies critical situation and formulates his own theories for a given situation.
The nature of management discussed in the above case is:
(a) Management as a Science (b)
Management as an Art
(c) Management as an Inexact Science (d) Management as both an Art and a Science
Assertion (A): A successful enterprise has to achieve its goals effectively and efficiently.
Reason (R): It is important for management to achieve goals (effectiveness) with minimum resources i.e., as
efficiently as possible while maintaining a balance between effectiveness and efficiency.

ead the following text and answer question no. 17-20 on the basis of the same:
R
Fashion India Limited is a chain of ladies garments boutiques where most of the work is done manually. Mr. Nityanand
is responsible for the welfare and survival of the organisation. He formulates overall organisational goals and strategies
for their achievement.
Due to coming of international brands in India, the company is finding it difficult to compete on two fronts—finishing
and embroidery work. Mr. Gaur, the production manager of the company, realised that without modern machines
it would not be possible for them to survive for long. The company purchased new hi-tech modern machines from
Germany. During the production process, the manager observed that the quality of production is not as per standard
and very often production is disrupted due to break-down of machinery. The workers get frustrated by continuous
rejection of output and started showing resistance towards new technology. To increase the efficiency of the workers, the
company decided to train their workers on-the-job under the able guidance of specialists. The workers who are able to
pick the skills are promoted and made incharge of the not so trained groups. This created positive impact and everybody
became keen to learn. Suggestions from the workers are valued and workers are encouraged to communicate freely.
Q.17 At which level of management is Mr. Nityanand working in Fashion India Limited?
Q.18 At which level of management is Mr. Gaur working in Fashion India Limited?
Q.19. “The workers who are able to pick the skills are promoted and made incharge of the not so trained groups. This
created positive impact and everybody became keen to learn.” Identify the importance of management highlighted
here.
Q.20. Which of the following point of importance is not discussed in the above case?
(a) Management helps in the development of society


Q.1 The objective of management which consistently creates economic value for various constituents of society is:
Q.2 Arnav has recently started a business to sell computers. He hired a shop in Nehru Place in New Delhi, where
he assembles make computers and various components supplies them as per order. He performs a series of
composite but separate functions simultaneously and ensures that computers are delivered in time as per orders.
These functions are performed by all managers at all times. The feature of management highlighted above is:
(a) Management is a continuous process. (b) Management is pervasive.
(c) Management is dynamic. (d) Management is a group activity.
Q.3 “Every member of an organisation has a different purpose for joining the organisation but as members of
the organisation they work towards fulfilling the common organisational goal. This requires team work and
coordination of individual effort in a common direction.” Identify the characteristic of management highlighted
above.
Assertion (A): Management is concerned with the efficient use of resources.
Reason (R): They reduce costs and ultimately lead to higher profits.
Q.5 “Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders
including, shareholders, employees, customers and the government. The main objective of any organisation
should be to utilise human and material resources to the maximum possible advantage.” Identify the objectives
of management highlighted above.
Q.6 Match the objective of management in Column I with their respective definition in Column II:
A. Survival (i) Increase in the number of employees, the number of products or the
increase in capital investment, etc.
B. Profit (ii) A vital incentive for the continued successful operation of the enterprise.
C. Growth (iii) An organisation must earn enough revenues to cover costs.
(a) (i), (ii), (iii) (b) (ii), (i), (iii)
(c) (iii), (ii), (i) (d) (i), (iii), (ii)
Q.7 “The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing,

Q.8 “All management practices are based on the same set of principles; what distinguishes a successful manager from
a less successful one is the ability to put these principles into practice.” Identify the nature of management
highlighted above.
Q.9 Which of the following proves that management is not an exact science?
(a) Management has its own theory and principles that have developed over a period of time, but it also draws
on other disciplines such as Economics, Sociology, Psychology and Mathematics. Like all other organised
activity, management has its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes of these experiments are
not capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have to be modified according to a given
situation.
Q.10 ______ is the management function of monitoring organisational performance towards the attainment of
organisational goals.
Q.11 A production manager was able to produce the desired output with minimum cost but not within the required
time. In this case the manager was:
(a) Effective only (b) Efficient only
(c) Both (a) and (b) (d) Neither effective nor efficient
Q.12 Foremen and Supervisors comprise _____________.
(a) Top level of management (b) Middle level of management
(c) Operational management (d) None of these
Q.13 Coordination is:
(a) a function of management. (b) the essence of management.
(c) an objective of management. (d) None of the above
Q.14 The basic objective of any business is ____________.
(c) Growth (d) Personal
Q.15 Modern organisations are characterised by a high degree of specialisation. Specialisation arises out of the
Assertion (A): The main objective of any organisation should be to utilise human and material resources to the
maximum possible advantage, i.e., to fulfill the economic objectives of a business.
Reason (R): Management of an organisation has three goals - survival, profit and growth.

ead the following text and answer question no. 17-20 on the basis of the same:
R
Mr. Araeb, the director of Shavez Ltd., dealing in costume jewellery, strongly believes that the members of an organisation
should work towards fulfilling the common organisational goals. This requires team work and integration of efforts of
all individuals, departments and specialists.
Ashita and Lakshita are employees working in Shavez Ltd. The firm secured an urgent order for 1,000 bracelets that
were to be delivered within 4 days. They were assigned the responsibility of producing 500 bracelets each at a cost of
`100 per bracelet. Ashita was able to produce the required number within the stipulated time at the cost of ` 55,000
whereas, Lakshita was able to produce only 450 units at a cost of ` 90 per unit.
Q.17 At which level of management is Mr. Araeb working in Shavez Ltd.?
Q.18 "This requires team work and integration of efforts of all individuals, departments and specialists."
Identify the concept of management discussed here.
(a) Staffing (b) Efficiency
(c) Effectiveness (d) Coordination
Q.19 "... strongly believes that the members of an organisation should work towards fulfilling the common
organisational goals." Identify the characteristic of management which is reflected here.
(a) Management is a goal-oriented process. (b) Management is a group activity.
(c) Management is multi-dimensional. (d) Management is a dynamic function.
Q.20 Which of the following statement is true?
(a) Ashita is effective but not efficient.
(b) Lakshita is efficient but not effective.
(c) Both Ashita and Lakshita are effective and efficient.
(d) Neither Ashita nor Lakshita is effective/efficient.

Q.1 ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of
different people in a conscious manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
(b) Coordination is a deliberate function
(d) Coordination is an all-pervasive function
Q.2 H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth.
The management of the company believes that a satisfied employee creates a satisfied customer, who in turn
creates profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to all its employees. All
the employees are happy working in the organisation because of personal growth and development. The
company has a strong sense of social responsibility. It has set up an engineering college in which one-third of the
students are girls to whom the company gives 50% scholarship.
(a) Organisational Objectives
(b) Social Objectives
(c) Personnel Objectives
(d) All of these
Q.3 Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. He found that his
and its cooperation with other departments is improved. Identify the level at which Rishitosh Mukerjee was
working.
Assertion (A): There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs.
Reason (R): If by using less resources (i.e., the inputs) more benefits are derived (i.e., the outputs) then
effectiveness has increased.
Q.5 Hema is one of the most successful managers of her company, ‘Kobe Ltd.’ She uses her creativity and initiative
management institute as well as through her observation and experience over the years is applied by Hema in a
skillful manner in the context of the realities of a given situation. She often reads books and other literature in
various fields of management to keep her knowledge updated. An aspect of the nature of management is being
Q.6 In X Ltd., the purchase department purchased 10 tonnes of raw material for the production department.
However, the production department needed just 7 tonnes. Due to this reason, goods were over produced and
were not accepted by Sales department. As a result, some goods remained unsold. Which aspect of management
is lacking?
(c) Staffing (d) Controlling
conflict amongst different specialists as well as others in the organisation. State the reason why coordination is
required in such a case.
(a) To harmonise individual goals and organisational goals.
(b) To integrate the efforts of individuals and departments.
(c) To reconcile the differences in approach, interest or opinion of the specialists.
(d) To secure unity of action in the realisation of a common purpose.
Q.8 Anushka Fabric Ltd. has been able to achieve its production targets as per plans using a new German technology.
Its employees are happy and satisfied with their pay scale and working environment in the organisation. All the
work proceeds as per plans and there is orderliness in the entire functioning of the organisation. Identify the
feature of the management discussed above.
(a) Management is an intangible force
(c) Management is a dynamic function
(d) Management is a goal-oriented process
Q.9 ABC Group of companies decided to donate 2% of its sales 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 of management depicted in the given case.
Q.10 Das is the Managing Director of ‘Gamut Ltd.’, manufacturing different varieties of cheese. He has an efficient
team working under him consisting of Rajat, the Production manager, Vinay – the Marketing manager and Adit
– the Finance manager. They understand and interpret the policies made by Das, ensure that their departments
have adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives.
Identify the level of management they are working.
Q.11 Name the process of designing and maintaining an environment in which individuals working together in groups
efficiently accomplish selected aims.
Q.12 To meet the objectives of the firm, the management of Bhavya Ltd. offers employment to physically challenged
persons. Identify the organisational objective it is trying to achieve.
(c) Growth (d) Social objectives
Q.13. Dheeraj is working as ‘Operations Manager’ in Tifco Ltd. Name the managerial level at which he is working.
Q.14 Suhasini, the General Manager of Fabmart, perfoms the managerial functions of planning, organising, staffing,
directing and controlling as an ongoing process. Which management feature is highlighted by this?
(a) Management is a goal-oriented process (b) Management is a a continuous process
Q.15 Match the functions of management in Column I with their explanation in Column II:
A. Planning (i) Setting goals in advance and developing a way of achieving them effectively
and effectively.
B. Organising (ii) Establishing an atmosphere that encourages employees to do their best.
C. Directing (iii) Determining what activities and resources are required.
D. Controlling (iv) Determining what activities and outputs are critical to success
Assertion (A): Coordination is a one-time function of the top management.
Reason (R): Coordination begins at the planning stage and continues till controlling.
Read the following text and answer question no. 16-20 on the basis of the same:
Company X is facing a lot of problems these days. It manufactures white goods like washing machines, microwave
ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits and market share are
declining. The production department blames marketing for not meeting sales targets and marketing blames production
department for producing goods, which are not of good quality meeting customers expectations. The finance department
blames both production and marketing for declining return on investment and bad marketing.
Q.17 What quality of management do you think the company is lacking?
Q.18 Which of the following characteristic of management is not fulfilled by the company?
(c) Management is an intangible force (d) Management is all pervasive
Q.19 Why do these kinds of inter-departmental conflicts arise in organisations?
Q.20 What step(s) should the company management take to bring the company back on track?
(a) Linking the activities of various departments through coordination.
(b) The activity of each department needs to be focused on attainment of common organisational goals.
(c) Managers need to reconcile differences in approach, timing, effort or interest.
(d) All the above
Answers to Self Assessment Tests Questions

1. (d) 2. (a) 3. (d) 4. (b) 5. (b) 6. (a) 7. (d) 8. (a)
9. (b) 10. (d) 11. (b) 2. (d) 13. (b) 14. (b) 15. (d) 16. (a)
17. (a) 18. (b) 19. (d) 20. (a)

1. (b) 2. (a) 3. (b) 4. (a) 5. (a) 6. (c) 7. (b) 8. (b)
9. (d) 10. (d) 11. (b) 12. (c) 13. (b) 14. (a) 15. (c) 16. (c)
17. (a) 18. (d) 19. (b) 20. (a), (b)

1. (b) 2. (d) 3. (b) 4. (c) 5. (b) 6. (b) 7. (c) 8. (a)
9. (b) 10. (b) 11. (a) 12. (c) 13. (b) 14. (b) 15. (d) 16. (d)
17. (d) 18. (b) 19. (d) 20. (d)
Sample Question Papers
CBSE Sample Question Paper 2021

(for Term I Nov-Dec 2021 Business Studies XII Examination)
Maximum Marks – 40 Time – 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.
6. There is NO negative marking.
SECTION - A
Q.1 “What distinguishes a successful manager from a less successful one is the ability to put the principles into
practice.” Which aspect of the nature of management is highlighted in the above statement?
(c) Management as a profession (d) Management is an intangible force.
Q.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
Q.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
Q.4 Which level of management is responsible for the welfare and survival of the organisation?
(a) Top level of management
(b) Middle level of management
(c) Supervisory level
CBSE Sample Papers Term-I 2021-22 EXAM HANDBOOK Business Studies XII 199

Q.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 chain
Q.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
Q.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
Q.8 ____________ involves a variety of programmes designed to promote and protect a company’s image and its
individual products in the eyes of the public.
(a) Advertising (b) Personal selling
(c) Publicity (d) Public relations
Q.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
Q.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.
Q.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.
(c) Directing (d) Staffing
Q.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.
Q.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
Q.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
Q.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.
Q.16 Planning is closely connected with ____________ and ____________

(a) Responsibility and accountability (b) Delegation and decentralization
(c) Stability and security (d) Creativity and innovation
Q.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) Labeling
(c) Packaging (d) Branding
Q.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
Q.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
Q.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
Q.21 ____________ is a process of classification of products into different groups on the basis of some important
characteristics such as quality, size, etc.
(a) Standardization (b) Grading
(c) Product Development (d) Selling
Q.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.
Q.23 Name the concept that refers to the number of subordinates that can be effectively managed by a superior and
determines the number of levels of management in the organisation.
(a) Organisation structure (b) Span of management
(c) Hierarchy of authority (d) Delegation of Authority
Q.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
Q.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
Q.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.
Q.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
Q.28 Aiming to revive Jammu and Kashmir’s attraction as a top location for film shooting the J&K film policy, 2021
offers a host of incentives to the filmmakers, such as subsidies and low long term interest rates, for films with
patriotic and certain other themes shot in J&K, for giving work opportunities to local artistes, etc. This will have
an impact on business enterprises in the state. Which component of business environment is highlighted above:
(a) Specific and general forces (b) Technological environment
(c) Economic environment (d) Totality of external forces
Q.29 The Topper group is looking to make a foray into manufacturing of semiconductors and it has set up a business
to seize the business opportunity and add to its prospects in the long run. The company has already pivoted into
a number of new projects like electronics, 5G network equipment, as well as semiconductors. Which economic
objective of management does the business seek to fulfill?:
(a) Survival (b) Growth
(c) Profit (d) Efficiency
Q.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)
Q.31 “A manager in a conscious manner has to ensure that even where members of a department willingly cooperate,
coordination gives direction to the willing spirit.” The characteristic of coordination being highlighted above is :
(a) Coordination is the responsibility of all managers.
(b) Coordination is a deliberate function.
(c) Coordination integrates group efforts.
(d) Coordination is a continuous process
Q.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
Q.33 The CEO of Radhe Cycles Pvt Ltd. Mr. Kumar wants to get maximum output from the employees at a competitive
cost. On the other hand Ramakaant, an employee of the company wants to get the maximum salary while working
the least. The Principle of management given by Fayol being violated by Ramakaant is ____________.
(a) Remuneration (b) Equity
(c) Discipline (d) Subordination of individual interest to general interest.
Q.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)
Q.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
Q.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
Q.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.
Q.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
Q.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
Q.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
Q.41 “Following a pre-decided plan, when circumstances have changed, may not turn out to be in the organisation’s
interest.” The limitation of planning being referred to in the above statement is ____________.
(a) Planning does not guarantee success
(b) Planning may not work in a dynamic environment
(c) Planning leads to rigidity
(d) Planning is a time consuming process.
Q.42 The technique of Scientific Management given by Taylor, which aims to establish interchangeability of
manufactured parts and products is ____________
(a) Method Study (b) Motion study
(c) Standardization (d) Differential Piece wage system.
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
Q.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
(d) Management increases efficiency
Q.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
Q.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
Q.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
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.
Q.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.
Q.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.
Q.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) Quick decision making.
Q.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’
Q.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
Q.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
Q.55 Mohammad Kanjiwal, a beekeeper since April 2021 is now part of the growing tribe of at least 50 urban dwellers
across Maharashtra raising bees and harvesting honey in their balconies, rooftops and back gardens. As he had
been focussed on eating right the thought of domesticating honey bees to promote healthy consumption habits
and seeing honey being cultivated right before his eyes was mesmerising for him. Identify the factor constituting
the general environment being discussed above.
(a) Economic environment (b) Social environment
(c) Technological environment (d) Political environment
Q.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
Q.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
Q.58 A sanitizer manufacturing company wants to become a market leader. For this purpose the manager follows an
activity with certain logical steps. The first step suggested by him is to increase profits by at least 30% in the next
quarter. What will be the last step of the activity being followed by the manager.
(a) Follow-up action (b) Identifying alternative course of action
(c) Setting objectives (d) Evaluating alternative courses of action
Q.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
Q.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) ` 4500 (b) ` 3185
(c) ` 1315 (d) ` 3250
Answer Key
1. (b) 21. (b) 41. (c)
2. (c) 22. (a) 42. (c)
3. (c) 23. (b) 43. (c)
4. (a) 24. (b) 44. (a)
5. (a) 25. (c) 45. (d)
6. (b) 26. (c) 46. (a)
7. (b) 27. (a) 47. (a)
8. (d) 28. (c) 48. (b)
9. (d) 29. (b) 49. (b)
10. (d) 30. (a) 50. (b)
11. (b) 31. (b) 51. (a)
12. (a) 32. (d) 52. (b)
13. (a) 33. (d) 53. (a)
14. (c) 34 (b) 54. (a)
15. (c) 35. (b) 55. (b)
16. (d) 36. (d) 56. (d)
17. (c) 37. (a) 57. (b)
18. (b) 38. (b) 58. (a)
19. (c) 39. (a) 59. (a)
20. (b) 40. (b) 60. (c)
Sample Question Paper-1 (for practice)

(Effective for Term I Business Studies XII Examination)
SECTION - A
Q.1 A company is manufacturing garments. The manager wants to increase profits by purchasing new high speed
machines or increasing the sale price or using waste material in manufacturing stuffed toys.
He decided that ‘using waste material’ to increase the profit is the best solution for him.
Identify the concept of management involved.
Q.2 ‘Various tools of communication are used by the marketers to promote their products.
Why do companies use all tools at the same time?
(a) To promote the sales of their products
(b) To build the reputation and goodwill in the eyes of the public
(c) To promote or protect a company’s image or its individual products.
(d) Because of the nature of market, nature of product, promotion budget and objectives of promotion being
different at different times.
Q.3 Read the following statement-Assertion (A) and Reason (R):
Assertion (A): Principles of management are mainly behavioural in nature.
Reason (R): Management principles aim at influencing behaviour of human beings.
Q.4 The objective of management which consistently creates economic value for various constituents of society is:
Q.5 The principles of management are said to be flexible as:
(a) they aim at influencing behaviour of human beings.
(b) they are general guidelines to action, but do not provide ready made solutions to management problems.
(c) they can be modified by the manager when the situation so demands.
(d) their application is dependent upon the prevailing situation at a particular point of time.
Q.6 Which of the following is a component of economic environment ?
(a) Concern with quality of life
(b) Rates of saving and investment
(c) Extent of government intervention in business
(d) Birth and death rates
Statement I: Prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for
the employees and vice versa.
Statement II: There should be complete harmony between the management and workers. Both should realise
that each one is important.
(a) Both the statements are correct. (b) Both the statements are incorrect.
(c) Statement I is correct and II is wrong. (d) Statement II is correct and I is wrong.
Q.8 Which tool of promotion will primarily be used for the following? Choose the correct option.
(A) Advertisements (i) To promote or protect a company’s image or its individual
products.
(B) Personal Selling (ii) An existing product meant for mass usage by literate people.
(C) Sales Promotion (iii) To introduce a new product to a particular class of people
through door-to-door visits.
(D) Public Relations (iv) To attract attention of the people by using incentives.
(a) (A)-(i), (B)-(ii), (C)-(iii),(D)-(iv)
(b) (A)-(ii), (B)-(iii), (C)-(iv),(D)-(i)
(c) (A)-(ii), (B)-(i), (C)-(iii),(D)-(iv)
(d) (A)-(i), (B)-(ii), (C)-(iv),(D)-(iii)
Statement I: Marketing is merely a business phenomena or confined only to business organisations.
Statement II: Marketing activities are not relevant to non-profit organisations such as hospitals, schools, sports
clubs and social and religious organisations.
(a) Both the statements are correct.
(b) Both the statements are incorrect.
(c) Statement I is correct and II is wrong.
(d) Statement II is correct and I is wrong.
Q.10 “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
Q.11 For delegation to be effective, it is necessary that authority granted must be commensurate with assigned
_________.
(a) Accountability (b) Autonomy
(c) Responsibility (d) None of these
Q.12 Large scale production done to reduce the average cost of production is the essence of ____________ concept of
Marketing management.
(a) Product (b) Selling
(c) Production (d) Marketing
Assertion (A): Planning promotes innovative ideas.
Reason (R): Since planning is the first function of management, new ideas can take the shape of concrete plans.
Q.14 ____________ determines the superior subordinate relationship wherein the superior communicates his
decision to the subordinate, expecting compliance from him and the subordinate executes the decision as per the
guidelines of the superior.
(a) Authority (b) Responsibility
(c) Accountability (d) Delegation
Q.15 Many large organisations with diversified activities have reorganised themselves away from the simpler and basic
organisational design towards a framework which is more suited to their activities. This is particularly true of
those enterprises which have more than one category of products to offer. Identify the type of Organisation
structure highlighted above.
(a) Functional structure (b) Divisional structure
(c) Delegation (d) Decentralisation
Q.16 _________ is the process a manager follows in dividing the work assigned to him so that he performs that part
which only he because of his unique organisational placement, can perform effectively and so that he can get
others to help with what remains.
Statement I: Delegation helps a manager to extend his area of operations as without it, his activities would be
restricted to only what he himself can do.
Statement II: A manager, no matter how capable he is, cannot manage to do every task on his own. The volume
of work makes it impractical for him to handle it all by himself.
Q.18 _______ is useful in providing detailed information about the product, its contents, method of use, etc.
(a) Branding (b) Packaging
(c) Labelling (d) Grading
Q.19 The objective of method study is to _________________.
(a) find out one best way of doing the job
(b) minimise the cost of production
(c) maximise the quality and satisfaction of the customer
(d) All the above
Q.20 “Not only is this function of management important for productive cooperation between the personnel but
also for clarification of extent of authority, as well as responsibility for results and logical grouping of activities.”
Identify the function of management highlighted above.
Q.21 ___________ is a process of decision-making.
Statement I: A successful enterprise has to achieve its goals effectively and efficiently.
Statement II: It is important for management to achieve goals with minimum resources, while maintaining a
balance between effectiveness and efficiency.
Q.23 Fayol, in one of his principles, insists that employees deserve fair and just wages or salary. But what is just and
fair is determined by multiple factors, such as contribution of the employee, paying capacity of the employer and
also prevailing wage rate for the occupation under consideration.
Identify the feature of principles of management highlighted above.
(a) Contingent (b) Flexible
(c) Behavioural (d) Universal applicability
Q.24 In today’s dynamic business environment, companies are specialising in their core competency and divesting
non-core businesses. In this context, one may cite the decision of Hindustan Unilever Limited in divesting
non-core businesses of chemicals and seeds. Some companies are outsourcing their non-core activities like
share-transfer management and advertising to outside agencies. So much so, that even core processes such
as R&D, manufacturing and marketing are being outsourced today. Thus, significance of ‘Business Process
Outsourcing’(BPO) and ‘Knowledge Process Outsourcing’ (KPO) has increased. Identify the principle of
management followed by the companies which are outsourcing their non-core and core activities.
(a) Initiative (b) Order
(c) Division of work (d) Unity of Direction
SECTION - B
Q.25 ABC Ltd. has a plan of profits by 20%. It has devoted a lot of time and money to this plan. But the competition
starts increasing, so it could not change its plan to beat its competitors because huge amount of money had
already been devoted to the pre-decided plan. It caused losses to the company.
Identify the limitations of planning highlighted in the above case.
i. Planning is a time consuming process.
ii. Planning leads to rigidity.
iii. Planning reduces creativity
iv. Planning is a costly process.
Alternatives:
(a) i (b) ii
(c) i, ii (d) iv
Q.26 Since childhood Niru and Janak had been watching their grandmother procuring wheat from the market,
washing it well drying it and getting it converted into atta. They conducted a survey to collect data to identify
whether there is demand for readymade atta and realised that with the growing number of working women, it
is the need of the hour to manufacture high quality atta. They named their product ‘Srijan’ and set up ‘Srijan
Atta Factory’ at Jaunpur Village. To penetrate in the market, they decided to keep the price low. For maintaining
smooth flow of their product into the market and avoiding delays in delivery, it was decided to store wheat at
SKM Services which had scientific processes and logistics facilitating quick delivery. 0.32 They also set up an
online complaint portal to take care of consumer grievances. Identify the marketing function undertaken by
Niru and Janak for successful marketing of ‘Srijan’ atta.
(a) Gathering and analyzing market information
(b) Branding
(c) Storage or warehousing
Q.27 Bye-Bye Motors recently informed the media about its aim to train up to 4,000 people in the next 3 years
in the skills associated with automobile industry as part of its program to provide technical and vocational
education for unemployed youth. The firm has already started the program in collaboration with Automobile
Skill Development Council. This news in the media has helped the firm in promoting its image in the eyes
of the public and consumer activist groups. Which department in the firm can be given the responsibility to
disseminate information and build goodwill of the firm?
(a) The marketing department. (b) A separate department to manage public relations.
(c) Both (a) and (b) (d) Neither (a) nor (b)
Q.28 After acquiring the necessary knowledge and skills on starting an Aloevera Farm, Ashok wanted to be the leading
manufacturer of Aloevera products worldwide. He observed that the products were expensive as the demand of the
products was more than the supply. He was also keen to promote methods and practices that were economically
viable, environmentally sound and at the same time protecting public health. Ashok’s main consideration was
about the amount of money paid by the consumers in consideration of the purchase of Aloevera products. He also
thought that competitors prices and their anticipated reactions must also be considered for this. After gathering
and analysing information and doing correct marketing planning, he came to know that the consumers compare
the value of a product to the value of money which they are required to pay. The consumers will be ready to buy
a product when they perceived that the value of the product is at least equal to the value of money which they
would pay. Since he was entering into a new market, he felt that he may not be able to cover all costs. He knew
that in the long run the business will not be able to survive unless all costs are covered in addition to a mininum
profit. He examined the quality and features of the products of the competitors and the anticipated reactions of
the consumers. Considering the same he decided to add some unique features to the packaging and also decided
to provide free home delivery of the products. The above case relates to a concept which is considered to be an
effective competitive marketing weapon. In conditions of perfect competition most of the firms compete with
each other on this concept in the marketing of goods and services. Identify the concept.
(a) Price (b) Product
(c) Promotion (d) Place
Q.29 An important difference between S&M Ltd 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 for 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.
Identify the philosophy that is being followed by S&M Ltd.
(a) Centralisation (b) Decentralisation
(c) Delegation (d) Authority and resposibility
Q.30 Voltage fluctuations have been common and quite high in India. They harm our electrical appliances like
television, refrigerators and air conditioners, often leaving them in a permanently damaged condition. N-Guard
Company decided to manufacture stabilizers for North India where the voltage fluctuation ranges from
220V-230V. Once the demand for the North India was taken care of, they decided to launch stabilizers of
varying voltages from 90 V -260V for meeting the requirements of voltage fluctuations in other regions of India
also. Three engineers were appointed for South, West and East regions of India, as the voltage was different in
all the three regions. Though all the engineers were appointed to manufacture stabilizers but the product differed
from region to region.
Identify the Organisation structure of N-Guard Company.
(c) Formal organisation structure (d) Informal organisation structure
Assertion (A): Delegation does not mean abdication.
Reason (R): A manager is under obligation to perform the delegated task.
Q.32 “The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing,
Q.33 __________ is an extension of the principle of division of work and specialisation to the shop floor; and it
violates the principle of Unity of command.
(a) Cooperation, not individualism (b) Functional foremanship
(c) Unity of Direction (d) Standardisation and Simplification of work
Statement I: Coordination is the essence of management.
Statement II: Coordination is a process by which a manager synchronises the activities of different departments.
It is the force that binds all other functions of management.
Q.35 H. Tech Ltd. is a company producing IT services. The company’s profits are enough for the survival and growth.
The management of the company believes that a satisfied employee creates a satisfied customer, who in turn
creates profits that lead to satisfied shareholders. So, it pays competitive salaries and perks to all its employees.
All the employees are happy working in the organisation because of personal growth and development. The
company has a strong sense of social responsibility. It has set up an engineering college in which one-third of the
students are girls to whom the company gives 50% scholarship.
Q.37 Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. He found that his
and its cooperation with other departments is improved.
Identify the level at which Rishitosh Mukerjee was working.
Q.38 Hema is one of the most successful managers of her company, ‘Kobe Ltd.’ She uses her creativity and initiative
management institute as well as through her observation and experience over the years is applied by Hema in a
skillful manner in the context of the realities of a given situation. She often reads books and other literature in
various fields of management to keep her knowledge updated. An aspect of the nature of management is being
Q.39 Sanchit, after completing his entrepreneurship course from Sweden returned to India and started a coffee shop
‘Aroma Coffee Can’ in a famous mall in New Delhi. The speciality of the coffee shop was the special aroma of
coffee and a wide variety of flavours to choose from. Somehow, the business was neither profitable nor popular.
Sanchit was keen to find out the reason. He appointed Sandhya, an MBA from a reputed college, as a manager
to find out the causes for the same. Sandhya took feedback from the clients and found out that though they
loved the special unique aroma of coffee but were not happy with the long waiting time being taken to process
the order. She analysed and found out that there were many unnecessary obstructions in between which could
be eliminated. She fixed a standard time for processing the order. She also realised that there were some flavours
whose demand was not enough. So, she also decided to stop the sale of such flavours. As a result within a short
period Sandhya was able to attract the customers.
Identify the technique of scientific management used by Sandhya to solve the problem.
(a) Motion Study (b) Time Study
(c) Simplification of Work (d) All of these
Q.40 Pawan is working as a ‘production manager’ in CFL Ltd. engaged in manufacturing of CFL bulbs. There is no
class conflict between the management and workers. The working conditions are very good. The company is
earning huge profits. As a policy matter, management is sharing the gains with the workers because they believe
that prosperity of the company cannot exist for a long time without the prosperity of the employees.
Identify the principle of scientific management described in the above para.
(a) Science, not rule of thumb
(b) Cooperation, not individualism
(c) Harmony, not discord
(d) Development of each and every person to his/her greatest efficiency
Statement I: Business environment is aggregative in nature.
Statement II: Business environment is the sum total of all things external to business firms (Totality of external forces)
Q.42 Mr. Ajay after completing MBA from USA comes to India to start a new business under the banner Ecom
Creations Ltd. He launches a new product in e-learning for Senior Secondary School students in Commerce
stream, which already has an established market in UK and USA but not in India. His business starts flourishing
in India. Now more Indian companies entered into the market with other subjects also.
Identify the significance of understanding business environment hightlighted below.
“Now more Indian companies entered into the market with different subjects also.”
(a) It helps in assisting in planning and policy formulation.
(b) It helps the firm to identify opportunities and get the first mover advantage.
(c) It helps in improving performance.
(d) It helps the firm to identify threats and early warning signals.
Q.43 The Court passed an order to ban polythene bags as
(i) The bags are creating many environmental problems which affect the life of people in general.
(ii) Society in general is more concerned about quality of life.
The Government decided to give subsidy to jute industry to promote this business.
Innovative techniques are being developed to manufacture jute bags at low rates.
Incomes are rising and people can afford to buy these bags.
Identify the dimension of Business Environment from the line given below :
‘The Government decided to give subsidy to jute industry to promote this business.’
(a) Legal environment (b) Social environment
(c) Political environment (d) Technological environment
Q.44 ‘Konark Ltd.’ is an electronic goods manufacturing enterprise situated in Shivpuri, Madhya Pradesh. It is earning
a very low revenue in comparison to a competing electronic goods manufacturing enterprise, ‘Nova Ltd.’ situated
in Mumbai. Both Konark’s and Nova’s operations are affected directly by the investors, customers, competitors
and suppliers, which are unique to their respective locations. In addition to this, individual firms of this field
are affected indirectly by the factors like the money supply in the economy, composition of the families, the
technological changes, etc. Identify the feature of the concept discussed in the above paragraph.
(a) Specific and General Forces (b) Uncertainty
(c) Dynamic Nature (d) Complex
Q.45 The business environment consists of numerous inter-related and dynamic forces. Because of this it may be
difficult to know the extent of the relative impact of social, economic, political, technological or legal factors on
change in the demand of a product in the market. The feature of business environment being discussed in the
above para is:
(a) Totality of external forces (b) Relativity
(c) Inter-relatedness (d) Complexity
Q.46 Identify the type of organisation structure from the organisational chart given below of Swastika Industries Ltd.
located in Uttarakhand :

(c) Formal organisation structure (d) Centralised structure
Q.47 ________ is the framework within which managerial and operating tasks are performed. It specifies the
relationships between people,work and resources. It allows correlation and coordination among human, physical
and financial resources.
Q.48 The Reserve Bank of India has reduced the REPO rate for providing cheaper loans to the industries during
COVID-19 pandemic. Which dimension of business environment is being discussed here?
(a) Political (b) Economic
(c) Technological (d) Social
SECTION C
As a project work in Business Studies subject, the Commerce students of ‘Creative Public School’ thought of setting up
a recycling plant to recycle all the waste papers from the school and prepare registers and exercise books to be used by
the school students. They approached their principal who not only appreciated the idea of the students but also gave her
consent for the same. The principal insisted that they must focus on quality performance and features of their products.
At the same time, production must be pollution-free. The school also decided to donate 50% of the revenue generated
from the sale of registers and exercise books to a nearby blind school.
Q.49 Identify the product related decision to be taken by the children in the marketing of registered and exercise books.
(a) Deciding the price of registers and exercise books.
(b) Deciding about the quality of registers and exercise books.
(c) Deciding the brand name of registers and exercise books.
(d) All the above
Q.50 Identify the communication tool most appropriate for promotion of registers and exercise books.
(a) Advertising (b) Sales Promotion
(c) Personal Selling (d) Public Relations
Q.51 Which of the following factor should be kept in mind while choosing the right name for the exercise books and
registers?
(a) It should be distinctive.
(b) It should be adaptable to packing or labelling requirements.
(c) It should be short and easy to pronounce
(d) All the above
Q.52 Identify the marketing philosophy discussed in the given case.

(a) The production concept (b) The product concept
(c) The societal marketing concept (d) Both (b) and (c)
Q.53 ______________ is referred to as the essence of marketing.
(a) Price (b) Product
(c) Exchange (d) Customer satisfaction
Q.54 ____________ refers to the name of the whole class of the product.
(a) Brand name (b) Generic name
(c) Brand mark (d) Trade mark
Read the following text and answer question no. 55-60 on the basis of the same:
Mega Ltd. holds an Annual Management Programme every year in the month of March in which the top managerial
personnel formulate plans for the next year by analysing and predicting the future to meet future events effectively. They
make certain assumptions about the future which are considered to be the base material upon which the plans are to be
drawn. As they are responsible for providing direction to the organisation, facts are thoroughly checked through scientific
calculations. Detailed plans are prepared after discussion with professional experts. Preliminary investigations are also
undertaken to find out the viability of the plan. Since it is an intellectual activity requiring intelligent imagination and
sound judgement, it is mainly done by the top management. Usually rest of the members just implement the plans.
Middle level managers are neither allowed to deviate from the plans nor are they permitted to act on their own. The top
management ensures that the expenses incurred in formulating the plans justify the benefits derived from them. The
Management of Mega Ltd. is able to anticipate changes/uncertainties and develop managerial responses to them.
Q.55 “They make certain assumptions about the future which are considered to be the base material upon which the
plans are to be drawn.” Identify the step of the planning process highlighted above.
(a) Setting Objectives (b) Developing Premises
(c) Implementing the plan (d) Follow up action
Q.56 “Middle level managers are neither allowed to deviate from the plans nor are they permitted to act on their
own.” Identify the limitation of the planning highlighted above.
(a) Planning leads to rigidity (b) Planning reduces creativity
(c) Planning is a time-consuming process (d) Planning involves huge costs
Q.57 “Since planning is an intellectual activity requiring intelligent imagination and sound judgement, it is mainly
done by the top management.” Identify the feature of the planning highlighted above.
(a) Planning focuses on achieving objectives (b) Planning is futuristic
(c) Planning is pervasive (d) Planning is a mental exercise
Q.58 “The Management of Mega Ltd. is able to anticipate changes/uncertainties and develop managerial responses to
them.” Identify the point of importance of planning highlighted above.
(a) Planning reduces the risks of uncertainty (b) Planning promotes innovative ideas
(c) Planning provides directions (d) Planning facilitates decision making
Q.59 Following are the steps of Planning Process. Arrange them in correct sequence:
(i) Developing premises (ii) Identifying the course of action
(iii) Setting objective (iv) Evaluating alternative courses
(a) (iii), (i), (ii), (iv) (b) (i), (iv), (iii), (ii)
Q.60 A plan is framed, it is implemented, and is followed by another plan on the basis of new requirements and
future conditions. Which of the following best describes the above statement?
(a) Planning focuses a achieving objectives. (b) Planning is continuous.
(c) Planning is futuristic. (d) Planning is a mental exercise.
Sample Question Paper-10 (for practice)

(Effective for Term I Business Studies XII Examination)
SECTION - A
Q.1 At which level of packaging, the immediate container is referred to?
(a) Primary packaging
(b) Secondary packaging
(c) Transportation packaging
(d) None of these
Q.2 “Each alternative course of action has many variables which have to be weighed against each other.” Identify the
step of planning function of management highlighted above.
(a) Setting Objectives
(b) Developing Premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses
Q.3 “This is the step where other managerial functions also come into the picture. This step would also involve
organising for labour and purchase of machinery.” Identify the step of one of the functions of management
highlighted above.
(a) Evaluating alternative courses (b) Selecting an alternative
(c) Implementing the plan (d) Follow-up action
Q.4 __________ arises from a superior- subordinate relationship because the subordinate is bound to perform the
duty assigned to him by his superior.
(c) Accountability (d) Decentralisation
Q.5 When an organisation grows and needs to add more employees, create more departments and introduce new
levels of management, it will decide to adopt a ____________.
Q.6 A manager has kept all right of decision-making with himself. Each and every employee has to come to him for
orders again and again. Identify the concept of management not followed by the manager.
Q.7 Name the concept of management which helps a manager to extend his area of operations as without it, his
activities would be restricted to only what he himself can do.
Q.8 Planning is concerned with the future which is uncertain. Therefore, the manager is required to make certain
assumptions. These assumptions are called __________.
(a) Ends (b) Alternatives
(c) Premises (d) Ideas
Q.9 Why do inter-departmental conflicts arise in organisations?
(d) Both (b) and (c)]

Assertion (A): Management is the skillful and personal application of existing knowledge to achieve desired
results.
Reason (R): Management is a Science.
Q.11 Ravi runs a locks manufacturing factory. He manufactures locks used in houses. He wants to expand his business.
For this, he wants to enter into the manufacturing of locks for cars and motorcycles.
Which type of Organisation structure will he choose for his factory and why?
(a) Functional structure
(b) Divisional structure
(c) Formal Organisation Structure
(d) Informal Organisation Structure
Q.12 ___________ refers to systematic effort to delegate to the lowest level all authority except that which can be
exercised at central points.
(a) Authority (b) Accountability
Q.13 ‘Most people think ‘selling’ is the same as ‘talking’. But the most effective salespeople know that listening is the
most important part of their job.’ Identify the communication tool used by the marketer.
(c) Sales promotion (d) Public relations
Q.14 Radhika Ltd. manufacturing refrigerators takes all the marketing decisions from the point of view of the
customers. The market research reveals that the customers want features like double door in the refrigerators
and a separate provision for water cooler in it. The company not only started producing refrigerators with these
features but also priced it at a level which the customers are willing to pay. Consequently, the sales of the firm
doubled in a month. Identify the marketing philosophy followed by Radhika Ltd.
(a) Production concept (b) Product concept
(c) Marketing concept (d) Societal marketing concept
Statement I: Management is a dynamic function.
Statement II: In order to be successful, an organisation must change itself and its goals according to the needs of
the environment.
(a) Both the statements are correct.
(b) Both the statements are incorrect.
(c) Statement I is correct and II is wrong.
(d) Statement II is correct and I is wrong.
Q.16 Supervisory management plays a very important role of the organisation since _____________.
(a) They interest with the actual workforce and pass in instructions of the middle management to the
workers.
(b) Supervisors directly oversee the efforts of the workforce and the quality and quantity of output depends on
the hard work, discipline and loyalty of the workforce.
(c) It is through their efforts that quality of output is maintained, wastage of materials is minimised and safety
standards are maintained.
Q.17 Match the example in column I with the function in column II:
A. Planning (i) Matching outcomes with targets
B. Organising (ii) Objectives
C. Directing (iii) Resources for implementation
D. Controlling (iv) Supervision and motivation
(c) (iii), (ii), (i), (iv) (d) (ii), (iii), (iv), (i)
Q.18 According to Consumer Protection Act, 2019, manufacturers are under an obligation to provide all the relevant
information (MRP, ingredients, date of manufacturing, expiry date, etc.) about the product. Which dimension of
business environment is highlighted in the given statement?
(a) Technological environment (b) Legal environment
(c) Political environment (d) Social environment
Q.19 _________ explains the manner in which decision-making responsibilities are decided among hierarchical levels.
(a) Delegation (b) Decentralisation
(c) Authority (d) Accountability
Assertion(A): Marketing is a merely a post-production activity.
Reason (R): Marketing includes many activities that are performed even before goods are actually produced, and
continue even after the goods have been sold.
Q.21 ___________ is an important element of marketing mix by which marketers make use of various tools of
communication to encourage exchange of goods and services in the market.
(a) Product (b) Price
(c) Place (d) Promotion
Q.22 ____________ sets the upper limit of price, which a buyer would be prepared to pay.
(a) Product cost (b) The utility and demand
(c) Extent of competition in the market (d) Pricing objective
Q.23 ____________ refers to the process through which two or more parties come together to obtain the desired
product or service from someone, offering the same by giving something in return.
(a) Exchange (b) Promotion
(c) Marketing (d) Selling
Q.24 Match the following and choose the correct alternative:
(i) Margins (A) Product
(ii) New product and development (B) Price
(iii) Publicity (c) Place
(iv) Channel strategy (D) Promotion
(a) (i) – (A), (ii) – (B), (iii) – (C), (iv) – (D)
(b) (i) – (D), (ii) – (C), (iii) – (B), (iv) – (A)
(c) (i) – (C),(ii) – (D), (iii) – (A), (iv) – (B)
(d) (i) – (B), (ii) – (A), (iii) – (D), (iv) – (C)
SECTION - B
Q.25 A company was marketing ‘water purifiers’ which were very popular due to their quality and after sales services
provided to the customers. The company was a leading company in the market and earning huge profits. Because
of huge profits the company ignored the after sales services. As a result its relations with the customers got
spoiled and the image of the company was damaged in the public. Top management became concerned when
the profits for the current quarter fell steeply. On analysis it was revealed that ignoring the after sales services was
its reason. Therefore the company took all possible measures to protect and promote its favourable image in the
eyes of the public. As a result the goodwill of the company improved in the society. Name the communication
tool used by the marketer in the above case to improve its image.
Q.26 An electronic company manufacturing TV and Refrigerators wants to bring two new products Washing Machines
and ACs in the market. For each product separate division is to be set up. The in-charge of washing machine
division and AC division will be a female and a disabled person respectively. What type of Organisation structure
is suitable for this company?
(c) Formal Organisation Structure (d) Informal Organisation Structure
Q.27 Sindhu Ayurved Ltd, a new and leading manufacturer of herbal and ayurvedic medicines and grocery products
has captured a large share of the market in a short span of time. The Research and Development (R & D)
department of the company spends considerable time and effort in developing eco-friendly, chemical free and
healthy alternatives for a variety of products of daily use, like toothpaste, biscuits, noodles, soaps, shampoos
and detergents etc. Their business orientation differs from competitors who are short sighted and serve only
consumer’s needs. Instead Sindhu Ayurved Ltd. considers larger issues of long term social welfare, paying
attention to social, ethical and ecological aspects of marketing.
Identify the marketing philosophy adopted by Sindhu Ayurved Ltd.
(a) The Marketing Concept
(b) The Selling Concept
(c) The Societal Marketing Philosophy
(d) The Product Concept
Q.28 The Research & Development department of Healthy Production Ltd. has decided to diversify from
manufacturing health drinks to cereals made from millets. They are well aware of the fact that the company will
have to communicate to the people the benefits of eating millets. For this purpose, they plan to sponsor various
events like marathons and encourage people to switch to healthy eating through newsletters.
A meeting was held wherein a brainstorming session took place to decide the name by which the company
will sell its products. In the meeting, it was also decided that the company will spend a lot in advertising, sales
promotion efforts, the type of packaging, product differentiation, credit facility and customer services. This will
give the company a competitive freedom in fixing price of its products.
The company also decided that its products will be distributed effectively throughout the country through its
agents, the wholesalers and retailers.
Identify the promotional tool being discussed above.
(c) Public Relations (d) Personal Selling
Q.29 As a project work in Business Studies subject, the Commerce students of ‘Creative Public School’ thought of
setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise
books to be used by the school students. They approached their principal who not only appreciated the idea
of the students but also gave her consent for the same. The principal insisted that they must focus on quality
performance and features of their products. At the same time, production must be pollution-free. The school
also decided to donate 50% of the revenue generated from the sale of registers and exercise books to a nearby
blind school.
Identify the product related decision to be taken by the children in the marketing of registered and exercise
books.
(a) Deciding the price of registers and exercise books.
(b) Deciding about the quality of registers and exercise books.
(c) Deciding the brand name of registers and exercise books.
(d) All the above
Q.30 The management of Vrinda Electronics Pvt. Ltd. takes all the decisions in the company from the point of view
of the customers what product will be produced, with what features and at what price shall it be sold, or where
shall it be made available for sale depend on what do the customers want. If the customers want features like
double door in a refrigerator or a separate provision for water cooler in it, the company produces a refrigerator
with these features and prices it at a level which the customers are willing to pay. Since all marketing decisions
are taken with this perspective, the average sales turnover of the company is `50 crore. Identify the marketing
philosophy followed by the company.
(c) Selling concept (d) Marketing concept
Q.31 The business needs to communicate effectively to customers, suppliers, and dealers, since they are instrumental in
increasing the sales and profit. Besides those who come into direct contact with the organisation or its products,
there are other members of the general public whose voice or opinion is equally important. This public may be
interested in the company and its product and have an impact on the business ability to achieve its objectives.
Thus, it becomes imperative to manage public opinion and the company’s relation with the public on a regular
basis. The concept of marketing management highlighted in the above para is _____________.
Q.32 ‘Garima Ltd.’ manufacturer of car engines achieves a break through by developing a car engine which runs on
water. This development is effectively communicated by the company to its dealers and prospective customers.
Because of this break through the image of the company has gone up. The company has also set-up a department
that advises its top management to adopt such programmers which will add to its public image. Name the term
that is used for this activity.
Q.33 A company has been registered under the Companies Act with an authorised share capital of `20,000 crore. Its
registered office is situated in Delhi and manufacturing unit in a backward district of Rajasthan. Its marketing
department is situated in Bhopal. The company is manufacturing Fast Moving Consumer Goods (FMCG).
Which type of Organisation structure would suit the requirements of the company?
Q.34 Sunita took her niece, Aishwarya for shopping to ‘Benetto’ to buy her a dress on the occasion of her birthday. She
was delighted when on payment for the dress, she got a discount voucher to get 20% off for a meal of `500 or
above at a famous eating joint. Identify the element of promotion mix used by the company in the above situation.
Q.35 ‘S Ltd., a renowned pen manufacturing company designed a pen which can support a 16 megapixel camera.
The pen has an inbuilt chip to customer-driven company with a focus on identifying the needs of the restore the
images and also to transfer such images to a computer. LE Is a present generation. To fulfil such needs it decided
to fix a price which the target customers can afford. The product was then made available in big shopping malls
where they were likely to get good customers.
Identify the type of marketing philosophy adopted by the company.
(a) The Marketing Concept (b) The Selling Concept
(c) The Societal Marketing Philosophy (d) The Product Concept
Q.36 Neha runs a factory wherein she manufactures shoes. The business has been doing well and she intends to
expand by diversifying into leather bags as well as western formal wear thereby making her company a complete
provider of corporate wear. This will enable her to market her business unit as the one stop for working women.
Which type of structure would you recommend for her expanded organisation?
(a) Functional structure
(b) Divisional structure
(c) Formal organisation structure
(d) Informal organisation structure
Q.37 Hero Ltd.’s target is to produce 10,000 shirts per month at a cost of `150 per shirt. The Production Manager
was able to produce 10,000 shirts at a cost of `140 per shirt but not within the stipulated time. As a result,
there was loss of revenue. In this case the Production Manager is _____________.
Q.38 Tina, a manager of Shikhar Automobiles Ltd.; establishes an atmosphere that encourages employees to do their
Q.39 Anushka Fabric Ltd. has been able to achieve its production targets as per plans using a new German technology.
Its employees are happy and satisfied with their pay scale and working environment in the organisation. All the
work proceeds as per plans and there is orderliness in the entire functioning of the organisation. Identify the
feature of the management discussed above.
(a) Management is an intangible force.
(b) Management is a group activity.
(c) Management is a dynamic function.
(d) Management is a goal-oriented process.
Q.40 A company, which manufactures a popular brand of toys, has been enjoying good market reputation. It has
separate departments for Production, Marketing, Finance, Human Resources and Research and Development.
Lately to use its brand name and also to cash on to new business opportunities it is thinking to diversify into
manufacture of new range of electronic toys for which a new market is emerging. The organisation structure
that should be adopted by the company is ________.
Q.41 The sales manager assigned a target of selling 40 RO Water Purifiers in a month to a group of 10 sales executives.
They mutually decided to sell 4 purifiers each. However, after selling 1 purifier, Kshitij (one of the sales executive)
met with an accident. The other sales executives did not pay any attention to the remaining target of Kshitij and
concentrated on their individual sales target. At the end of the month, only 37 purifiers could be sold. Identify
the principle of management violated in the given case?
(a) Esprit De Corps (b) Centralisation and Decentralisation
(c) Initiative (d) Division of work
Q.42 A production manager at top level in a reputed corporate, Mr. Rathore holds the responsibility for ordering raw
material for the firm. While deciding on the supplier for the financial year 2018-19, he gave the order to his
cousin at a higher price per unit instead of the firm’s usual supplier who was willing to lower the rates for the
order.
Which principle of management was violated by Mr. Rathore?
(a) Subordination of individual interest to general interest
(b) Centralisation and Decentralisation
(c) Discipline
(d) Initiative
Q.43 Mr. Sanjeev, a manager believes that through principles of management do not provide strait jacket solutions to
all managerial problems, yet they cannot be underestimated because even a small guideline helps to solve a given
problem. Mr. Sanjeev, in dealing with a situation of conflict between two departments, always emphasizes the
primacy of the overall goals of the organisation.
Identify the principle of management followed by Mr. Sanjeev.
(a) Subordination of individual interest to general interest
(b) Centralisation and Decentralisation
(c) Discipline
(d) Initiative
Q.44 In a formal organisation, a worker cannot directly contact the CEO of the company. If at all he has to, then all
the formal levels, i.e. foreman, superintendent, manager, director, etc have to know about the matter. However,
in an emergency it can be possible that a worker can contact CEO directly.
Identify the principle of management highlighted above.
(a) Scalar Chain (b) Order
(c) Initiative (d) Gang Plank
Q.45 “The manager of Forex Ltd. has to ensure that there is adequate workforce and continuously monitor whether
production is proceeding according to plans.” Identify the functions of management highlighted in the above
statement. (a) Planning and
Controlling (b) Staffing and Planning
(c) Staffing and Directing (d) Staffing and Controlling
Q.46 Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of
Indian handloom and handicraft products. It sells fabrics, furnishings, ready-mades and household items are
made out of traditional Indian fabrics.
At which level of management Sana is working?
(a) Lower level (b) Top level
(c) Middle level (d) Shop floor
Q.47 “The solar power DEMU (Diesel Electric Multiple Unit) has 6 trailer coaches and is expected to save about
21,000 liters of diesel and ensure a cost saving of `12,00,000 per year.”
Identify the economic objective of management achieved by Indian Railways in the given line.
Q.48 The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout
the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a
special seat in each and every gathering. The Coca-Cola Company has on occasion introduced other cola drinks
under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free
Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca- Cola Cherry, Coca-Cola Vanilla and the list
goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle
of every gathering.
The main reason for such an outstanding placement of product goes to the way they have established the
connection between every occasion and the need for Coke to be present there, product design and creative
advertising.
In the context of the above, identify one valid importance of Business Environment.
(a) Enables a firm to identify opportunities and getting first mover advantage
(b) Uncertainty
(c) Delay in action
(d) Pervasive function
SECTION - C
Tanvi is a manager in Beta Ltd, a company manufacturing plastic glasses and bowls. The government banned plastic
items. As a result, Beta Ltd. incurred a huge loss as it had to stop production of plastic glasses and bowls, and had to
purchase new machinery for producing paper glasses and bowls. The management of the company entered into an
agreement with labour union whereby workers agreed to put in extra hours without additional payment to revive the
company out of loss. In return the management promised to increase wages of the workers when this mission was
accomplished. Tanvi found that workers’ efficiency declined due to long working hours. She conducted an experiment
to see the effect of improvement of physical conditions of work to reduce stress. It worked and workers efficiency and
productivity increased manifold. Within two months, the company revived out of loss. The management in return
increased their wages by 30 per cent.
Q.49 “The management of the company entered into an agreement with labour union whereby workers agreed to
put in extra hours without additional payment to revive the company out of loss. In return the management
promised to increase wages of the workers when this mission was accomplished... Within two months, the
company revived out of loss. The management in return increased their wages by 30 per cent.” Identify the
principle of management highlighted above.
(a) Authority and Responsibility
(b) Unity of command
(c) Discipline
(d) Subordination of individual interest to general interest
Q.50 “Tanvi found that workers’ efficiency declined due to long working hours. She conducted an experiment to see
the effect of improvement of physical conditions of work to reduce stress. It worked and workers efficiency and
productivity increased manifold.” Identify the principle/technique of management highlighted above.
(a) Time Study
(b) Fatigue Study
(c) Initiative
(d) Development of each and every person to his/her greatest efficiency
Q.51 What nature of principles of management is highlighted in the above case?
(a) General guidelines (b) Mainly behavioural
(c) Cause and effect relationships (d) Formed by practice and experimentation
Q.52 Which of the following point of significance of management principles is highlighted in the above case?
(a) Optimum utilisation of resources
(b) Providing managers with useful insights into reality
(c) Meeting changing environment requirements
Q.53 Fayol points out the danger and costs of unnecessary labour turnover in one of his ‘Principles’. Name the
principle.
(a) Initiative (b) Esprit De Corps
(c) Division of work (d) Stability of personnel
Q.54 Which principle of management suggests that employees should be treated with justice and kindness?
(a) Remuneration of employees
(b) Equity
(c) Discipline
(d) Authority and Responsibility
Q.55 Company X is facing a lot of problems these days. It manufactures white goods like washing machines,
microwave ovens, refrigerators and air conditioners. The company’s margins are under pressure and the profits
and market share are declining. The production department blames marketing for not meeting sales targets and
marketing blames production department for producing goods, which are not of good quality meeting customers
expectations. The finance department blames both production and marketing for declining return on investment
and bad marketing.
What quality of management do you think the company is lacking?

Q.56 Kiran Industries is a company manufacturing office furniture. The company chose to diversify its operations
to improve its growth potential and increase market share. As the project was important many alternatives
were generated for the purpose and were thoroughly discussed amongst the members of the organisation.
After evaluating the various alternatives Sukhvinder, the Managing Director of the company decided that they
should add ‘Home Interiors and Furnishings’ as a new line of business activity. Name the framework, which the
diversified organisation should adopt, to enable it to cope with the emerging complexity?
Q.57 Shreemaya Hotel in Indore was facing a problem of low demand for its rooms due to off season. The Managing
Director (MD) of the hotel, Mrs. Sakina was very worried. She called upon the Marketing Manager, Mr. Kapoor
for his advice. He suggested, that the hotel should announce an offer of ‘3 Days and 2 Nights hotel stay’ package
with free breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples’. The MD liked
the suggestion very much. Identify the promotional tool, which can be used by the hotel, through which large
number of prospective pilgrimage tourists, all over the country and also abroad, can be reached, informed and
persuaded to use the incentive.
Q.58 ‘Beauty Products Ltd’ is a natural and ethical beauty brand famous for offering organic beauty products for
men and women. The company uses plant based materials for its products and is the No.1 beauty brand in the
country. It not only satisfies its customers but also believes in overall protection of the planet.
Identify the marketing philosophy being followed by ‘Beauty Products Ltd.’
(c) Marketing concept (d) Societal marketing concept
Q.59 In an environment of rising petroleum prices and a large middle class population in India, KV Motors Ltd.
recognized the need for small cars in India. It created a product far superior than their competitors not only in
terms of quality but also in terms of overall driving experience. It soon became the leader in the small car market.
As the Indian government was encouraging foreign investment, MNCs having a big name in car manufacturing
entered the Indian market. KV Motors further expanded its service network and quality creating an entry barrier
for the competitors. It depicted its strengths through various brand-building activities. As a result, the market
share of KV Motors is refusing to go down in spite of all major automakers as its competitors.
Identify the feature of business environment highlighted above.
(a) Specific and general forces (b) Inter-relatedness
(c) Dynamic nature (d) Uncertainty
Q.60 As a project work in Business Studies subject, the Commerce students of ‘Creative Public School’ thought of
setting up a recycling plant to recycle all the waste papers from the school and prepare registers and exercise
books to be used by the school students. They approached their principal who not only appreciated the idea
of the students but also gave her consent for the same. The principal insisted that they must focus on quality
performance and features of their products. At the same time, production must be pollution-free. The school
also decided to donate 50% of the revenue generated from the sale of registers and exercise books to a nearby
blind school.
Identify the communication tool most appropriate for promotion of registers and exercise books.
(c) Personal Selling (d) Public Relations
ANSWER KEY
Sample Question Paper-1
1. (a) 2. (d) 3. (a) 4. (b) 5. (c) 6. (b) 7. (a) 8. (b)
9. (b) 10. (a) 11. (c) 12. (c) 13. (a) 14. (a) 15. (b) 16. (c)
17. (a) 18. (c) 19. (d) 20. (b) 21. (a) 22. (a) 23. (a) 24. (c)
25. (c) 26. (d) 27. (c) 28. (a) 29. (b) 30. (a) 31. (c) 32. (b)
33. (b) 34. (a) 35. (d) 36. (c) 37. (b) 38. (b) 39. (d) 40. (c)
41. (a) 42. (d) 43. (c) 44. (d) 45. (d) 46. (b) 47. (a) 48. (b)
49. (c) 50. (a) 51. (d) 52. (d) 53. (c) 54. (b) 55. (b) 56. (b)
57. (d) 58. (a) 59. (a) 60. (b)
1. (b) 2. (d) 3. (c) 4. (c) 5. (b) 6. (a) 7. (c) 8. (d)
9. (b) 10. (a) 11. (c) 12. (c) 13. (c) 14. (b) 15. (d) 16. (a)
17. (b) 18. (c) 19. (d) 20. (d) 21. (a) 22. (b) 23. (c) 24. (a)
25. (a) 26. (c) 27. (d) 28. (d) 29. (a) 30. (b) 31. (d) 32. (b)
33. (a) 34. (d) 35. (a) 36. (d) 37. (a) 38. (a) 39. (d) 40. (a)
41. (d) 42. (d) 43. (b) 44. (b) 45. (d) 46. (a) 47. (c) 48. (a)
49. (b) 50. (b) 51. (c) 52. (d) 53. (d) 54. (c) 55. (d) 56. (c)
57. (a) 58. (d) 59. (d) 60. (b)
1. (a) 2. (c) 3. (d) 4. (d) 5. (d) 6. (b) 7. (c) 8. (c)
9. (c) 10. (a) 11. (b) 12. (d) 13. (b) 14. (d) 15. (b) 16. (b)
17. (b) 18. (c) 19. (a) 20. (b) 21. (b) 22. (c) 23. (c) 24. (c)
25. (a) 26. (a) 27. (c) 28. (a) 29. (a) 30. (b) 31. (b) 32. (b)
33. (d) 34. (d) 35. (a) 36. (d) 37. (a) 38. (b) 39. (a) 40. (c)
41. (a) 42. (a) 43. (b) 44. (d) 45. (d) 46. (d) 47. (a) 48. (b)
49. (a) 50. (c) 51. (b) 52. (d) 53. (c) 54. (d) 55. (b) 56. (b)
57. (b) 58. (a) 59. (a) 60. (d)
1. (a) 2. (b) 3. (d) 4. (d) 5. (a) 6. (a) 7. (b) 8. (d)
9. (d) 10. (d) 11. (c) 12. (b) 13. (b) 14. (a) 15. (d) 16. (c)
17. (b) 18. (d) 19. (d) 20. (c) 21. (b) 22. (a) 23. (d) 24. (a)
25. (a) 26. (c) 27. (c) 28. (a) 29. (a) 30. (a) 31. (b) 32. (b)
33. (b) 34. (a) 35. (a) 36. (a) 37. (d) 38. (d) 39. (c) 40. (b)
41. (c) 42. (d) 43. (c) 44. (a) 45. (d) 46. (c) 47. (d) 48. (c)
49. (b) 50. (d) 51. (a) 52. (d) 53. (b) 54. (c) 55. (c) 56. (d)
57. (b) 58. (d) 59. (a) 60. (b)
1. (a) 2. (a) 3. (d) 4. (a) 5. (a) 6. (a) 7. (b) 8. (c)
9. (b) 10. (d) 11. (b) 12. (d) 13. (b) 14. (c) 15. (c) 16. (b)
17. (b) 18. (b) 19. (b) 20. (c) 21. (d) 22. (b) 23. (b) 24. (c)
25. (b) 26. (b) 27. (b) 28. (d) 29. (a) 30. (a) 31. (d) 32. (a)
33. (d) 34. (a) 35. (a) 36. (d) 37. (b) 38. (b) 39. (c) 40. (b)
41. (d) 42. (a) 43. (a) 44. (c) 45. (b) 46. (c) 47. (c) 48. (d)
49. (c) 50. (c) 51. (d) 52. (c) 53. (c) 54. (a) 55. (d) 56. (b)
57. (b) 58. (a) 59. (a) 60. (b)

1. (c) 2. (c) 3. (a) 4. (c) 5. (c) 6. (b) 7. (b) 8. (d)
9. (a) 10. (d) 11. (c) 12. (a) 13. (d) 14. (a) 15. (b) 16. (a)
17. (d) 18. (b) 19. (a) 20. (d) 21. (c) 22. (c) 23. (d) 24. (d)
25. (b) 26. (d) 27. (b) 28. (c) 29. (c) 30. (d) 31. (d) 32. (b)
33. (c) 34. (c) 35. (c) 36. (b) 37. (b) 38. (b) 39. (a) 40. (d)
41. (a) 42. (c) 43. (d) 44. (b) 45. (b) 46. (d) 47. (a) 48. (d)
49. (a) 50. (a), (b) 51. (d) 52. (a) 53. (c) 54. (b) 55. (d) 56. (b)
57. (d) 58. (d) 59. (b) 60. (a)
1. (d) 2. (a) 3. (a) 4. (d) 5. (d) 6. (a) 7. (b) 8. (a)
9. (c) 10. (b) 11. (c) 12. (c) 13. (b) 14. (c) 15. (a) 16. (c)
17. (b) 18. (a) 19. (a) 20. (c) 21. (d) 22. (a) 23. (a) 24. (c)
25. (d) 26. (a) 27. (a) 28. (d) 29. (c) 30. (a) 31. (a) 32. (d)
33. (b) 34. (d) 35. (b) 36. (c) 37. (c) 38. (a) 39. (b) 40. (a)
41. (b) 42. (a) 43. (b) 44. (b) 45. (b) 46. (b) 47. (a) 48. (c)
49. (b) 50. (a) 51. (b) 52. (d) 53. (a) 54. (a) 55. (b) 56. (d)
57. (b) 58. (d) 59. (a) 60. (b)
1. (d) 2. (c) 3. (d) 4. (a) 5. (c) 6. (b) 7. (a) 8. (d)
9. (a) 10. (a) 11. (a) 12. (c) 13. (c) 14. (b) 15. (d) 16 (a)
17. (d) 18. (b) 19. (b) 20. (b) 21. (d) 22. (b) 23. (a) 24. (d)
25. (d) 26. (c) 27. (c) 28. (b) 29. (d) 30. (c) 31. (d) 32. (d)
33. (b) 34. (d) 35. (d) 36. (d) 37. (d) 38. (a) 39. (a) 40. (a)
41. (b) 42. (a) 43. (d) 44. (a) 45. (b) 46. (c) 47. (d) 48. (a)
49. (b) 50. (b) 51. (d) 52. (d) 53. (a) 54. (b) 55. (c) 56. (d)
57. (c) 58. (a) 59. (a) 60. (d)
1. (d) 2. (d) 3. (a) 4. (c) 5. (b) 6. (a) 7. (a) 8. (a)
9. (a) 10. (a) 11. (a) 12. (d) 13. (b) 14. (d) 15. (a) 16. (a)
17. (c) 18. (c) 19. (c) 20. (c) 21. (b) 22 (b) 23. (d) 24. (d)
25. (b) 26. (b) 27. (a) 28. (a) 29. (d) 30. (d) 31. (c) 32. (a)
33. (a) 34. (b) 35. (b) 36. (a) 37. (d) 38. (b) 39. (a) 40. (a)
41. (d) 42. (d) 43. (c) 44. (b) 45. (b) 46. (d) 47. (b) 48. (d)
49. (c) 50. (a) 51. (b) 52. (c) 53. (c) 54. (d) 55. (a) 56. (a)
57. (b) 58. (c) 59. (b) 60. (b)
1. (a) 2. (d) 3. (c) 4. (b) 5. (b) 6. (c) 7. (c) 8. (c)
9. (d) 10. (c) 11. (a) 12. (d) 13. (b) 14. (c) 15. (a) 16. (d)
17. (d) 18. (b) 19. (b) 20. (d) 21. (d) 22. (b) 23. (a) 24. (d)
25. (d) 26. (b) 27. (c) 28. (c) 29. (c) 30. (d) 31. (d) 32. (d)
33 (b) 34. (c) 35. (a) 36. (b) 37. (a) 38. (d) 39. (a) 40. (b)
41. (a) 42. (a) 43. (a) 44. (a) 45. (d) 46. (c) 47. (b) 48. (a)
49. (d) 50. (b) 51. (d) 52. (d) 53. (d) 54. (b) 55. (d) 56. (b)
57. (a) 58. (d) 59. (c) 60. (a)

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vii

CBSE Sample Question Paper 2021-22 (Term-I) 198-205

10 Sample Question Papers (for Practice) 206-296

 Discuss the objectives of management

 Describe the importance of management

 Explain the importance of coordination

Topics Deleted for CBSE Term-I 2021 Exam No Topic Deleted

Multiple Choice Questions (MCQs)

42. Which of the following is not a function of management?

54. _____________ is concerned with the end result.

4. Tata Steel has risen to the top because of ______________.

32. Which of the following statement is true?

Multiple Choice Questions (MCQ) on Assertion-Reasoning Type

15. Assertion (A): Management is all pervasive.

Self Assessment Test 1

Nature and Significance of Management

Select the correct alternative:

Self Assessment Test 2

Nature and Significance of Management

(c) Management creates a dynamic organisation.

Select the correct alternative:

Self Assessment Test 3

Nature and Significance of Management

Answers to Self Assessment Tests Questions

Self Assessment Test 1

Self Assessment Test 2

Self Assessment Test 3

Sample Question Papers

CBSE Sample Question Paper 2021

1. The Question Paper contains 3 sections.

Q.16 Planning is closely connected with ____________ and ____________

Sample Question Paper-1 (for practice)

(a) Functional structure (b) Divisional structure

Q.52 Identify the marketing philosophy discussed in the given case.

Sample Question Paper-10 (for practice)

Q.10 Read the following statement-Assertion (A) and Reason (R):

What quality of management do you think the company is lacking?

Sample Question Paper-6

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Q.16 Planning is closely connected with and