ASSERTION AND REASON BASED QUESTIONS

CH 3- BUSINESS ENVIRONMENT

Read the following statements: Assertion (A) and Reason

(R). Choose one of the correct alternatives given below:
Alternatives:
a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of
Assertion (A).
b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation
of Assertion (A).
c) Assertion (A) is true but Reason (R) is False
d) Assertion (A) is false but Reason (R) is True.

1. Assertion (A): The business environment is the sum total of all the external forces.
Reason (R): The different elements of the business environment are closely
interrelated.
Ans Option b

2. Assertion [A]: Totality of external forces is an important feature of the

business environment.
Reason [R]: Business environment is the sum total of all things external to
business organizations and,as such, is aggregative in nature.
Ans. Option c

3. Assertion (A) : Sales forecast is the basis on which a business firm prepares
its annual plan for production and sales.
Reason (R) : Planning is the primary function of management.

Answer: (b)

4. Assertion (A) : Middle management and other decision makers are neither
allowed to deviate from the plan nor they are permitted to act on their own.
Reason(R) : Planning in a way reduces creativity since people tend to think along
the same lines as others.
Answer: (a)
5. .Assertion (A) : Monitoring the plan is equally important to ensure that objectives
are achieved.
Reason(R) : To see whether plans are being implemented and activities are
performed according to schedule is also part of planning process.
Answer: (b)

6. Assertion (A): That part of brand, which can be spoken is called a brand name.
Reason(R): That part of brand which can be recognized but which is not
untearable is called trademark.
Answer: (c)

7. .Assertion (A):The various functions of planning are inter related, however

planning provides the basis of all other functions.
Reason (R) : Planning is a continuous activity.
Answer: (b)

8. Assertion (A) : Planning is pervasive

Reason (R) : It is an exclusive function of top management or of some particular
department or manager.
Answer: (c)

9. Assertion (A): Delegation refers to the downward transfer of authority from a

superior to a subordinate.
Reason (R): It is a prerequisite to the efficient functioning of an organization,
because it enables a manager to use his time on high priority activities.
Answer: (a)

10. Assertion (A): Price may be called by different names for example, price of the
education is tuition fees, price for using road is toll etc.
Reason (R) : Price is the monetary sacrifice which a buyer makes when he buys
something.
Answer: (a)
11. Assertion (A): Directing involves motivation and encourages the employees to
perform the tasks assigned to them.
Reason (R): Controlling involves comparison of current performance of the
employees with the established standards.
Answer: (b)

12. 12.Read the following statements Assertion (A) and Reason (R):
Assertion(A): Only one product or service can be marketed
Reason (R): Anything that is of value to the other can be marketed
Answer: (d)