1.

The process of creating an internal environment, where individual work effectively and efficiently
for achievement of goal is known as
(a) Coordination (b) Delegation (c) Management (d) Planning

2. When a worker achieves target production of 100 unit at a higher cost, he is

(a) Efficient (b) Effective
(c) Both Effective and Efficient (d) None of the above

3. Management is a process because

(a) It involves series of steps (b) It leads to systematic working
(c) It involves one single activity (d) None of the above
4. Management is always denoted by ‘We’ and not by ‘I’ because
(a) It is a process (b) It is continuous
(c) It is a group activity (d) It is intangible

5. Management works with the following objectives

(a) Objective of profit maximisation
(b) Objective of sales maximisation
(c) Objective of becoming market leader
(d) Multiple objective

6. A good manager focuses on

(a) Prosperity of management
(b) Prosperity of employees
(c) Prosperity of both management and employees
(d) None of the above

7. Managers apply management principles by using creativity. This is related to

(a) Management as Science
(b) Management as an Art
(c) Management as both Science and Art
(d) Management as a profession
Objective Type Questions
 3

8. Liaison with the outside world is the function of

(a) Top Level (b) Supervisory Level
(c) Middle Level (d) All of the above

9. Providing good working conditions and ensuring quality work is the function of
(a) Top Level (b) Middle Level .
(c) Supervisory Level (d) All of the above

10. As Top Level is responsible for the welfare and operations of whole organisation, Middle Level is
responsible for the welfare and operations of
(a) Workers (b) Department
(c) Both (a) and (b) (d) None of the above

11. Coordination is
(a) A function of management (b) An essence of management (c) Part of Management
(d) None of the above

12. Which function of management ensures work accomplishment as per plan?

(a) Planning (b) Directing
(c) Controlling (d) Organising

13. The process by which a manager integrates and synchronises the activities of different department
is called
(a) Management (b) Controlling
(c) Planning (d) Coordination
14. Coordination is more important in an organisation (a) Performing or dealing with single function
(b) Performing or dealing with multiple functions
(c) Performing or dealing with manufacturing goods
(d) All of the above

15. All the businessmen prefer their children to do MBA and then join business. This is related to
(a) Management as Science (b) Management as an Art
(c) Management as a profession (d) Management as both Science and Art

FILL IN THE BLANKS

1. The management of an organisation does not achieve its objective by chance, but it is done by
following a process called __________________.
2. The function of management, which creates various departments is called
__________________.
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 4

3. The primary or first function of every manager is __________________.

4. Division/Department head belongs to __________________ Level of management.
5. Managers must update and modify its objectives from time to time is indicated in
__________________ feature of management.
6. Management has __________________ objectives.
7. Completing the task with minimum cost and optimum utilisation of resources is called
__________________.
8. Completing the task on time or achievement of target is called __________________.
9. Increase in number of branches, number of products indicate that management is achieving
__________________ objective.
10. Coordination does not come by chance but is a __________________ process.

TRUE OR FALSE
1. Management is a single activity.
2. Management is used only in Business Organisations.
3. Management work with the single objective of Profit Maximisation.
4. Management is a group activity.
5. Coordination is a function of management.
1. When a superior does not fulfil the promise to raise the salary/wages of workers on achievement of
target effectively and efficiency, it is violation of
(a) Principle of Renumeration (b) Principle of Discipline
(c) both (a) and (b) (d) None of the above

2. Management Principles provide

(a) Readymade solution to managerial problems
(b) Guidelines for managerial action
(c) Guarantee for success of an organisationn (d) All of the above

3. Gang Plank permits direct communication between

(a) Employees working at same level
(b) Any employees irrespective of their level
(c) Employees of same department only
(d) None of the above
4. Organisation Interest supersede employees interest is indicated in
(a) Principle of Subordination of Individual Interest to General Interest
(b) Principle of Espirit De Corps
(c) Principle of Initiative
(d) Principle of Discipline

5. The employees should be judiciously penalised for their actions against the organisation is indicated
in
(a) Principle of Equity (b) Principle of Responsibility, Authority
(c) Principle of Discipline (d) None of the above

6. Principle of Responsibility and Authority insists on

(a) Responsibility > Authority (b) Authority > Responsibility
(c) Responsibility = Authority (d) All of the above
Objective Type Questions

7. Frequent transfer and turnover of employees lead to violation of

 7

(a) Principle of Espirit De Corps (b) Principle of Discipline

(c) Principle of Initiative (d) Principle of Stability of Personnel

8. Principle of Initiative-
(a) Boosts up the morale of employees
(b) Brings down the morale of employees
(c) Does not effect on morale of employees
(d) None of the above

9. Unity of Command insists on (a) One Boss One employee

(b) Orders from a single superior
(c) Match between orders of different bosses
(d) All of the above

10. If a manager is biased in dealing with people from different states, he is violating
(a) Principle of Discipline (b) Principle of Espirit De Corps
(c) Principle of Renumeration (d) Principle of Equity

11. Simplification technique insists on

(a) Using simple method of production
(b) More varieties of product
(c) Elimination of unnecessary diversity of products, size and types
(d) All of the above

12. The main objective of Fatigue Study is

(a) To eliminate tiring movements of workers
(b) To decide number, duration and frequency of break intervals
(c) To differentiate productive and non-productive movements of workers
(d) All of the above
13. Unity of Direction insists on
(a) One unit one plan
(b) Efforts of all employees should be directed in one direction only
(c) No overlapping of different department
(d) All of the above

14. Technique of mental revolution is based on the principle of

(a) Harmony not discord
(b) Science not rule of thumb
(c) Principle of responsibility and authority
(d) All of the above
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 8

15. Principle of Order insists on

(a) Orders from single superior
(b) Fix and right place for every men and material
(c) Employees must work as per order of superior only
(d) One boss one command

16. According to Fayol

(a) Organisation must use policy of centralisation
(b) Organisation must use policy of decentralisation
(c) Organisation must use combination of centralisation and decentralisation
(d) None of the above

FILL IN THE BLANKS

1. __________________ scientific technique insists on hiring specialised or expert for each job.
2. __________________ scientific technique brings uniformity in products and permits
interchangeability
3. Sharing of gain between employee and management is indicated in __________________.
4. Sharing of work is indicated in __________________ scientific principle
5. Sequence of steps to be followed is decided by __________________ functional expert.
6. __________________ scientific technique is the strongest motivator for workers to perform
efficiently.
7. The purpose of time study is to find out __________________ to perform a job.
8. __________________ scientific technique help in finding one best way of doing a job.
9. Management principles can be modified as per the requirement of an organisation as they are
__________________.
10. __________________ refers to taking first step with self motivation.

TRUE OR FALSE
1. Management principles offer readymade solutions for managerial problems.
2. Management principles are rigid statements like scientific principles.
3. Management principles are useful for business as well as nonbusiness organisation.
4. Management principles can be formed overnight.
5. The application and result of management principles remain same in all organisations.
1. Business environment includes
(a) Surroundings of Business
(b) Forces, Factors, Institutions which directly or indirectly effect business
(c) Customers and Employees
(d) None of the above

2. The forces in Business Environment that effect all the business houses are known as
(a) General (b) Specific
(c) Particular (d) Influential

3. The conditions in Business Environment keep changing as it is

(a) External Environment (b) Complex
(c) Dynamic (d) None of the above

4. The environment scanning helps to identify

(a) Opportunities (b) Threats
(c) Both (a) and (b) (d) None of the above

5. The importance of business environment which helps to know in advance forthcoming constraints
and threats of business is
(a) Helpful in getting first mover advantage
(b) Early warning signals
(c) Assist in planning and policy making
(d) All of the above

6. Change in taxes is part of

(a) Economic Environment (b) Political Environment
(c) Legal Environment (d) Social Environment

7. Demonetisation had direct impact on

(a) Social Environment (b) Political Environment
(c) Economic Environment (d) None of the above
Objective Type Questions
 11

8. It is compulsory that advertisement on baby food must inform that mother’s milk is the best is
related to
(a) Social Environment (b) Economic Environment (c) Political Environment (d)
Legal Environment

9. Relaxation or removal of strict rules and regulations is part of

(a) Liberalisation (b) Globalisation
(c) Privatisation (d) All of the above

10. Opening doors for private sector in the area reserved for public sector is known as
(a) Privatisation (b) Liberalisation
(c) Globalisation (d) None of the above

11. Swachha Bharat Abhiyaan started by BJP government is part of

(a) Legal Environment (b) Social Environment
(c) Political Environment (d) Economic Environment

12. Creating a website and selling online is related to

(a) Social Environment (b) Political Environment (c) Economic Environment (d) Technologic
13. Attitude of customers towards innovation, lifestyle, etc. is part of (a) Technological Environment
(b) Social Environment
(c) Political Environment (d) Legal Environment

14. Change in sensex and Nifty during election is part of

(a) Political Environment (b) Social Environment
(c) Legal Environment (d) Economic Environment

15. Shift of youth in India towards packed food, online buying is part of
(a) Political Environment (b) Social Environment
(c) Legal Environment (d) Technological Environment

FILL IN THE BLANKS

1. __________________ refers to end of licence quota and many more restrictions.
2. Freedom in fixing the prices of goods and services is part of __________________.
3. __________________ refers to giving greater role to private sector and reducing the role of public
sector.
4. __________________ refers to integration of various economies of world.
5. The main aim of demonetisation was to curb __________________.
6. The first response seen after New Economic Policy is companies are going for
__________________.
 12

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7. After New Economic Policy firms shifted from selling concept to __________________ concept.
8. The business environment has __________________ impact on different Business Enterprise.
9. All the forces of Business Environment are __________________.
10. Maruti Company was the first company to understand the need of middle class people and
launched the small car concept and availed __________________.

TRUE OR FALSE
1. Demonetisation was launched on 1st November 2016.
2. Conditions prevailing in business environment have same effect on all the organisation.
3. After New Economic Policy, the customers became more demanding.
4. After New Economic Policy, brand building, goodwill and image of company has become an
important element for promotion of a company.
5. With entry of MNC, there is no change in the salary packages of all the employees.
1. Planning is the
(a) Primary/First function of manager (b) Last function of manager
(c) Both (a) and (b) (d) None of the above

2. Making assumptions for future is called

(a) Making derivative plans (b) Making policy
(c) Setting planning premises (d) All of the above

3. The composite plan which involves setting up of long term objective finding course of action and
allocation of resources is called
(a) Policy (b) Strategy
(c) Programme (d) Procedure

4. The plan which includes objective, policy, procedure and rule is called
(a) Strategy (b) Budget
(c) Programme (d) All of the above

5. Standardised way in which a task has to be performed is called

(a) Policy (b) Procedure (c) Strategy (d) Method

6. The sequence of steps or actions to be taken to enforce a policy and attain predetermined objectives
is called
(a) Objective (b) Policy
(c) Procedure (d) Strategy

7. Organisations own customised way of handling problems or taking decisions is called

(a) Strategy (b) Policy (c) Budget (d) Rule

8. End Results towards which all the activities are directed is called
(a) Policy (b) Strategy
(c) Objective (d) Programme
Objective Type Questions

9. Controlling device from which deviations can be taken care of is

(a) Procedure (b) Strategy
 15

(c) Policy (d) Budget

10. Planning is performed at

(a) Top Level (b) Middle Level
(c) Supervising Level (d) All Level

11. Planning is
(a) Routine Activity (b) Mental exercise
(c) None of the above 12. After (d) All of the above
implementation of plan

(a) Planning ends (b) New plan is made

(c) Follow up is done (d) None of the above
13. Standing Plan
(a) Stands as an example for other planner
(b) Recurring plans
(c) Discarded after use
(d) All of the above

14. Single use plan

(a) Used only once (b) Used for one single department
(c) Used by single individual (d) All of the above

15. Planning establish base or standard for

(a) Organising (b) Staffing
(c) Directing (d) Controlling

FILL IN THE BLANKS

1. Planning contributed to ___________________.

2. Planning involves ___________________.

3. Once plans are made, it is difficult to change them, so planning leads to

___________________.
4. Employees become blind followers of plans, so planning reduces ___________________.

5. Plans work successfully in past, may not work successfully in future also as planning does not give
___________________.
6. The blue print of business is called ___________________.

7. ___________________ spell out actions and non actions of employees.

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 16

8. ___________________ includes entire gamut of activities.

9. Planning bridges the gap between where we are standing and where we want to
___________________.
10. Repeat use plans are known as ___________________.

TRUE OR FALSE
1. Planning involves choice.
2. Planning is a function of Top Level managers.
3. Planning gives guarantee of success.
4. Planning is time consuming and involves huge cost.
5. Supportive plans are derived from main plan.
1. The organisation producing multiproduct must adapt
(a) Functional Structure (b) Divisional Structure
(c) None of the above (d) All of the above

2. Uniproduct manufacturing company must adapt

(a) Functional Structure (b) Divisional Structure
(c) Both (a) and (b) (d) None of the above

3. For fast communication and to get correct feedback, the following organisation is suitable.
(a) Formal Organisation (b) Informal Organisation (c) Functional Structure (d) Divisional
Structure

4. Organisations having plans of expansion and diversification must adapt

(a) Functional Structure (b) Divisional Structure
(c) Both (a) and (b) (d) None of the above

5. Span of management refers to

(a) Area of responsibilities of a manager
(b) Manager’s accountability
(c) Number of subordinates who can be effectively controlled by one manager (d)
None of the above

6. If manager is overburdened then he must use following concept.

(a) Delegation (b) Decentralisation
(c) Span of management (d) None of the above

7. Evenly distribution of authority at every level leads to

(a) Delegation (b) Decentralisation
(c) Informal Organisation (d) Formal Organisation

8. Fast decision can be taken by using the concept of

(a) Delegation (b) Formal Organisation
(c) Decentralisation (d) None of the above
Objective Type Questions
 19

9. Informal organisation is dependent on

(a) Formal Organisation (b) Delegation (c) Decentralisation (d) None of the above
10. Which organisation gets created automatically?
(a) Formal Organisation (b) Informal Organisation
(c) Both (a) and (b) (d) None of the above

11. The managerial function which establishes relation between responsibility and
authority is
(a) Planning (b) Staffing
(c) Organising (d) Directing

12. In Delegation, we have sharing of authority and responsibility between

(a) Two levels (b) Multiple level
(c) Department wise (d) None of the above

13. In Decentralisation, we have sharing of authority and responsibility at

(a) Two levels (b) Multiple level
(c) Department wise (d) None of the above

14. Which of the following a policy matter

(a) Decentralisation (b) Delegation
(c) Formal Organisation (d) Informal Organisation

15. Which of the following is a routine activity

(a) Decentralisation (b) Delegation
(c) Formal Organisation (d) Informal Organisation

16. Who reports to whom is decided in the following step of organising process (a) Identifying the
activities (b) Grouping the activities
(c) Assignment of duties (d) Establish authority relationship

FILL IN THE BLANKS

1. __________________ is a framework within which organisational activities are performed.
2. Strict Rules and Regulations are followed in __________________ organisation.
3. Most of the rumours are spread by __________________ organisation.
4. The main purpose of __________________ is to reduce the work load of managers.
5. The main purpose of __________________ is involvement of all the employees working at different
levels.
6. Psychological and social needs get satisfied in __________________ organisation.
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 20

7. Functional Structure focuses on __________________ specialisation.

8. Divisional structure focuses on __________________ specialisation.
9. Decentralisation is __________________ of Delegation.
10. Selective Dispersal of Authority leads to __________________.

TRUE OR FALSE
1. Accountability can be delegated by using the process of delegation.
2. In delegation, we multiply the authority with two, whereas in decentralisation, we mutliply with
many.
3. Formal organisation is dependent on informal organisation.
4. As end result of organisation function, a structure gets created automatically.
5. Formal organisation focuses on work only, and ignores human relations.
1. Imparting skill necessary to perform a job is called
(a) Training (b) Development
(c) Recruitment (d) Selection

2. Analysing existing employees is known as

(a) Work load analysis (b) Work force analysis
(c) Training (d) Development

3. Staffing is a part of
(a) Marketing management (b) Financial management
(c) Human Resource management (d) None of the above

4. Analysing total number of employees required to perform the job in the organisation is known as
(a) Work load analysis (b) Work force analysis
(c) Recruitment (d) Selection

5. Visit by senior manager to various professional colleges to search for prospective candidates is
known as
(a) Internal Recruitment (b) Recommendations from employees (c) Employment
Exchange (d) Campus Recruitment

6. To find out the potential of learning new job in the candidate, the following test is conducted.
(a) Intelligence Test (b) Aptitude Test (c) Trade Test (d) Personality Test

7. Which of the following is called a negative process:

(a) Recruitment (b) Training
(c) Selection (d) None of the above

8. The purpose of one of the training methods is to make the new employee feel at home and develop
a feeling of belongingness in the organisation. That method is
(a) Induction training (b) Apprenticeship training
(c) Internship (d) Vertibule school
Objective Type Questions

9. Duplicate model is prepared in

(a) Induction training (b) Vertibule school (c) Apprenticeship training (d) Internship
 23

10. Which method of recruitment is economical?

(a) Internal (b) External
(c) Both (a) and (b) (d) None of the above

11. The candidate who has applied for job can clarify his queries during
(a) Test (b) Employment interview
(c) Medical examination (d) Selection decision

12. To know the emotions and values of the candidate following test is conducted
(a) Intelligence Test (b) Trade Test
(c) Personality Test (d) Aptitude Test

13. The suitable method of External Recruitment for getting unskilled labourer is
(a) Recommendations from present employees
(b) Employment exchange
(c) Advertisement
(d) Labour contractors

14. Professional Institutes send their students to corporate sector for doing
(a) Apprenticeship Training (b) Internship
(c) Induction Training (d) Vestibule School

15. No fresh idea will come under

(a) Internal Recruitment (b) External Recruitment
(c) Direct Recruitment (d) Indirect Recruitment
FILL IN THE BLANKS
1. Process of searching for prospective candidates is known as __________________.
2. __________________ bring overall growth of an employee.
3. __________________ Recruitment motivates existing employees.
4. Staffing process begins with __________________.
5. Providing the candidate the post for which he is selected is called __________________.
6. The new employee gets familiarise with working style of an organisation under
__________________ training.
7. Professional Institutes organise __________________ Training for their students.
8. Two methods of Internal Recruitment are __________________ and __________________.
Business Studies

9. Terms and conditions of job are written in __________________.

10. __________________ Recruitment is suitable when we require large number of candidates.
 24

TRUE OR FALSE
1. Spending money on training is waste when we are already spending huge amount in selection of
efficient employees.
2. Internal recruitment motivates existing employees.
3. Operational problems can be solved by training.
4. When a trainee learns under the guidance of a master worker it is called Vestibule school.
5. In internship, the employee works under the guidance of master work.
MULTIPLE CHOICE QUESTIONS
1. Directing
(a) Is a primary function of management (b) Initiates action
(c) Recruits and Selects employees (d) Identifies and groups the activities

2. Directing is performed at
(a) Top level (b) Middle level
(c) Supervisory level (d) All levels

3. To build up the morale of employees and to develop interest in the job, manager uses the following
element of directing.
(a) Supervision (b) Leadership
(c) Motivation (d) Communication

4. Motivators can be
(a) Positive only (b) Negative only
(c) Positive as well as negative (d) None of the above

5. Safety from illness, accident, fire, etc. is included in

(a) Physical security (b) Economic security
(c) Social security (d) None of the above

6. Respect and recognition is part of

(a) Physiological need (b) Social need
(c) Safety Security need (d) Esteem need

7. Informal organisation and informal communication tries to fulfil

(a) Physiological need (b) Social need
(c) Safety security need (d) Self-actualisation need

8. The incentive to provide company’s share at very low price or free to employee workers is called
(a) Profit sharing (b) Commission
(c) Retirement benefit (d) Co-partnership stock option
Objective Type Questions

9. The leader who does not welcome suggestions of employees is called

 27

(a) Autocratic leader (b) Democratic leader

(c) Free Rein leader (d) None of the above

10. Giving a special rank, position, or authority to employees is part of

(a) Monetary Incentive (b) Non-monetary Incentive
(c) Profit sharing (d) Compartnership

11. The leader who encourages the employees to give suggession and allots the work after consulting
the employees is called
(a) Autocratic leader (b) Free Rein leader
(c) Democratic leader (d) None of the above

12. The communication between Production Head and Sales Head is (a) Downward communication (b)
Upward communiation
(c) Horizontal communication (d) None of the above

13. The barrier due to lack of vocabulary, wrong grammer or use of wrong words is called
(a) Badly expressed message (b) Technical Jargon
(c) Faulty Translation (d) Symbol with different meaning
14. The communication gap due to size and complexity of organisation’s structure comes under the
following category.
(a) Semantic Barrier (b) Psychological Barrier (c) Organisational Barrier (d) Personal Barrier

15. According to Maslow, how many level of needs are there in every human being?
(a) 3 (b) 5
(c) 4 (d) 6

FILL IN THE BLANKS

1. __________________ is a psychological process.
2. Complete delegation of authority is part of __________________ style of leadership.
3. Under __________________ category of communication barriers, senders and receivers have
different state of mind.
4. The need for love, affection and companionship comes under __________________ need.
5. Basic necessities like food, shelter, clothing, fresh air, etc. come under __________________ need.
6. According to Maslow, human needs follows a __________________.
7. Motivation develops __________________ to work.
Business Studies

8. To fulfil esteem need, __________________ incentive is suitable.

 28

9. Leadership is a process of __________________ the behaviour of employees.

10. Communication is a __________________ way process.

TRUE OR FALSE
1. To motivate employees, only positive motivators can be used.
2. Lack of attention is a part of organisational barrier.
3. We must always clarify the idea before communication.
4. Use of words having same pronunciation but different meaning is called personal barrier.
5. Directing flows from all the directions.
1. In Controlling, actual performance is compared with
(a) Performance of other employees
(b) Performance of previous year
(c) Planned Performance
(d) None of the above

2. Controlling is
(a) Backward looking function
(b) Forward looking function
(c) Both backward as well as forward looking function
(d) None of the above

3. Controlling and Planning are

(a) Independent functions (b) Interdependent functions
(c) Both (a) and (b) (d) None of the above

4. Under critical point, control manager

(a) Critically observes and takes action on every deviation
(b) Ignores deviation
(c) Gives more importance to deviations taking place in key areas
(d) None of the above

5. Under management by exception manager

(a) Set up a range and deviation with in the range are ignored and beyond range are taken
seriously.
(b) All deviations are taken seriously
(c) Both (a) and (b)
(d) None of the above

6. Management by exception and critical point control techniques of controlling

(a) Waste energy and efforts of managers
(b) Saves energy and efforts of managers
 31

Objective Type Questions

(c) Does not effect on energy and effects of managers

(d) All of the above

7. When mismatch between plan and actual performance is due to over or under stating of plan, then it
is called
(a) Strategic Control (b) Operational Control
(c) Both (a) and (b) (d) None of the above

8. Controlling is performed at
(a) Top level (b) Middle level
(c) Supervisory level (d) All of the above

9. Planning provides
(a) Direction to Controlling
(b) Base of Controlling .
(c) Standard for Controlling
(d) All of the above
10. If deviations are minor, it should
(a) Be taken seriously
(b) Be ignored
(c) Be reported to top level
(d) None of the above

FILL IN THE BLANKS

1. Difference between plan and actual performance is called __________________.

2. Planning is __________________, whereas controlling is __________________.

3. There is a close and reciproced relation between planning and __________________.

4. Controlling not only checks performance, but it also judges accuracy of _________________.

5. If there is any deviation between plan and actual performance, then managers take
__________________.

6. Under Critical Point Control, the whole organisation’s departments are divided into
__________________ and __________________.

7. __________________ function ensures work accomplishment as per plan.

8. Planning provides __________________ for controlling.

9. In last step in Controlling process __________________ is prepared.

10. Controlling is both __________________ looking and __________________ looking function.

 32

Business Studies

TRUE OR FALSE
1. Controlling functions end after giving feedback report.
2. Controlling is a task of supervisory level.
3. Controlling is an empty exercise without planning.
4. A manager who tries to control everything may end up controlling nothing.
5. Deviations can be negative only.
MULTIPLE CHOICE QUESTIONS
1. The main objective of financial management is
(a) Profit Maximisation (b) Wealth Maximisation
(c) Ensuring availability of finance (d) None of the above

2. Investment decision is also called

(a) Capital Budgeting decision (b) Working capital decision
(c) Current Assets decision (d) None of the above

3. Capital Structure indicates ratio between

(a) Assets and liabilities of the firm (b) Current Assets and Fixed Assets
(c) Debt and equity in the total capital (d) Profit and Revenue of the firm

4. If fixed operating cost is high, a firm should prefer

(a) Debt (b) Equity
(c) Both (a) and (b) (d) None of the above

5. The decision related to acquiring funds from debt or equity is called

(a) Investment decision (b) Financing decision (c) Dividend decision (d) All of the above
6. The decision related to distribution of residual profit is called
(a) Investment decision (b) Financing decision (c) Dividend decision (d) None of the above
7. If a firm has growth opportunities, it should prefer giving
(a) Low dividend (b) High dividend
(c) Does not effect dividend decision (d) None of the above

8. If large number of shareholders of the firm are from middle income group and old age group who
prefer regular income, then the firm should prefer giving
(a) Low dividend (b) High dividend
(c) No dividend (d) None of the above
Objective Type Questions

9. The concept which makes sure the availability of right amount of finance at the right time is called
(a) Financial Planning (b) Capital Structure .
(c) Working Capital (d) Fixed Capital
 35

10. Financial Planning links

(a) Investment and dividend decision (b) Investment and financing decision
(c) Dividend and financing decision (d) None of the above

11. If ICR is high, firm prefers

(a) Debt (b) Equity
(c) Both (a) and (b) (d) None of the above

12. The amount of fixed assets is decided by

(a) Working capital concept (b) Fixed capital
(c) Investment decision (d) Financing decision

13. The amount of current assets is decided by

(a) Working capital concept (b) Fixed capital
(c) Investment decision (d) Financing decision

14. Positive leverage effect brings

(a) Gain for equity shareholders (b) Loss for equity shareholders
(c) Both (a) and (b) (d) None of the above

15. If return on investment is less than the rate of interest, then company must prefer
(a) Equity (b) Debt
(c) Both (a) and (b) (d) None of the above

FILL IN THE BLANKS

1. __________________ ensures availability of finance, whenever required.
2. Capital budgeting or investment decision helps in deciding the __________________ of fixed
assets.
3. Financing decision helps in deciding __________________ of capital.
4. Dividend decision helps in appropriate allocation of __________________.
5. During negative leverage effect, firm prefers __________________.
6. Positive leverage effect is __________________ for equity shareholders.
7. Service providers require __________________ working capital.
8. Manufacturer requires __________________ working capital.
Business Studies

9. If firm has liberal credit policy, it will require __________________ working capital.
10. If firm has long operating and production cycle, it will require ___________________ working
capital.
 36

TRUE OR FALSE
1. Financial management and financial planning are synonyms of each other.
2. If tax rate is high, firms prefer to give high dividend.
3. Firms can avoid Floatation Cost by raising funds through loan.
4. Firms having stable earnings prefer to give less dividend.
5. Easy access to capital market allows firms to give more dividend.
1. If a firm requires to two crores for six months time to keep the stock of raw material, it should
approach
(a) Money market (b) Capital market
(c) Both (a) and (b) (d) None of the above

2. Call money, treasury bill, C.R., etc. are the instruments of

(a) Capital Market (b) Money market
(c) Both (a) and (b) (d) None of the above

3. The safest instrument of money market is

(a) Call Money (b) Commercial Paper
(c) Treasury Bill (d) Commercial Bill

4. To meet floatation cost, firms generally issue the following instrument of money market.
(a) Call Money (b) Commercial Paper (c) Treasury Bill (d) Commercial Bill

5. Which instrument of money market is also called zero coupon bond?

(a) Call money (b) Commercial Paper
(c) Certificate of Deposit (d) Treasury Bill

6. Which market directly contributes for capital formation and increase in capital of firms?
(a) Primary market (b) Secondary market
(c) Both (a) and (b) (d) None of the above

7. The duration of money market instruments are

(a) Upto one year (b) Upto three years (c) Upto five years (d) Upto ten
years

8. Under Private Placement, shares are never offered to

(a) Institutes (b) Brokers
(c) General Public (d) None of the above
Objective Type Questions

9. Under secondary market, sale of securities take place between

(a) Company and Investors (b) Company and Company
 39

(c) Investor and other investor (d) None of the above

10. In Right Issue, shares are issued to

(a) General public (b) Existing shareholders (c) Institutes only (d) None of the above
11. The economic condition of every country is reflected by dealings in
(a) Stock Market (b) Money Market
(c) Primary Market (d) None of the above

12. The Apex Body who controls the Capital Market of our country is
(a) RBI (b) SBI
(c) SEBI (d) None of the above

13. SEBI protects the interest of

(a) Investor (b) Companies
(c) Brokers (d) None of the above
14. Conversion of physical form of share certificate into an electronic entry is called
(a) Exchange Mechanism (b) Conversion
(c) Dematerialisation (d) Rematerialisation

15. To buy securities, i.e., share or debentures, it is compulsory to open

(a) Current Account (b) Demat Account
(c) Fixed Deposit Account (d) Recurring Account

FILL IN THE BLANKS

1. Capital market is a link between __________________ and __________________ opportunities.
2. In India, there are __________________ number of depositories.
3. NSDL refers to __________________.
4. CDSL refers to central __________________.
5. The agent between Investor and Depositories is called __________________.
6. The day when investor has to deliver shares sold or pay cash for shares bought is called
__________________.
7. The day when stock exchange delivers the share or makes payment to the other broker is called
__________________.
8. Bombay Stock Exchange Index is called __________________.
Business Studies

9. National Stock Exchange Index is called __________________.

10. To promote and develop activities in stock exchange, SEBI performs __________________ function.
 40

TRUE OR FALSE
1. SEBI was set up with the main purpose of increasing business is stock markets.
2. Under offer for sale, companies offer shares directly to general public.
3. Money market is a market for short term or market for working capital.
4. Call money is also called Inter bank money.
5. Capital market is a branch of money market.
MULTIPLE CHOICE QUESTIONS
1. The concept which focuses on large scale production and minimum cost is called
(a) Production concept (b) Product concept
(c) Selling concept (d) Marketing concept

2. The concept which forces on quality of product is called

(a) Production concept (b) Product concept
(c) Selling concept (d) Marketing concept

3. The concept which focuses on customer satisfaction is called

(a) Production concept (b) Product concept
(c) Selling concept (d) Marketing concept

4. The concept which focuses on customer welfare is called

(a) Production concept (b) Product concept
(c) Marketing concept (d) Societal concept

5. Product, price, place and promotion are part of

(a) Product mix (b) Price mix
(c) Marketing mix (d) Place mix

6. The carrier of information is called

(a) Packaging (b) Labelling (c) Branding (d) Goodwill

7. The only element of marketing mix, which generates revenue is called

(a) Product mix (b) Place mix
(c) Price mix (d) Promotion mix

8. The product reaches the customer at the right time, in the right quantity and at the right place by
using the following element of marketing mix.
(a) Product mix (b) Price mix
(c) Promotion mix (d) Place mix
Objective Type Questions

9. The time period between receiving of order and delivery of goods and services is called
(a) Order Processing Time (b) Inventory
 44 43

(c) Warehousing (d) Transportation

10. To reach the mass customer in non personnel manner, the following element of promotion mix is
used.
(a) Advertisement (b) Sales Promotion (c) Personal Selling (d) Public Relation
11. To regain the lost reputation and to build goodwill, firm uses
(a) Advertisement (b) Sales Promotion
(c) Personal Selling (d) Public Relation

12. To bring rise in sale with immediate effect for short period, firm uses
(a) Advertisement (b) Sales Promotion (c) Personal Selling (d) Public Relation
13. The first level packing in which product is initially packed is called
(a) Primary Packing (b) Secondary Packing
(c) Transportation Packing (d) None of the above

14. Following level of packing is optional, products may have or may not have
(a) Primary Packing (b) Secondary Packing
(c) Transportation Packing (d) None of the above

15. The firms can charge high price for their product, when the product has
(a) Low demand and low utilities (b) High demand and high utilities
(c) Both (a) and (b) (d) None of the above

FILL IN THE BLANKS

1. __________________ is also called as silent salesman.
2. __________________ is legal protection given to a brand.
3. Range of products or variety or assortment of products a company is manufacturing is called
__________________.
4. The decisions related to distribution of product is called __________________.
5. Decisions related to increasing the sale of the product is called __________________.
6. Under direct channels, firm has __________________ intermediaries.
7. Maintenance of stock is called __________________.
8. __________________ is a paid form of presentation of a product or idea by an identified sponsor.
Business Studies

9. The communication tool which is used to improve the image or goodwill of the company is called
__________________.
10. Firm shares and informs all the details about the product to customers through
__________________.
TRUE OR FALSE
1. Selling concept focuses on customer satisfaction.
2. Undergrading the quality of product is decided.
3. Packaging and Labelling are same or synonyms of each other.
4. The spoken part of brand is called brand name.
5. The brand name should be suggestive.
1. The Provisions of Consumer Protection act came into force from
(a) 1986 (b) 1987
(c) 1988 (d) 1991

2. Informing consumer about their rights is part of

(a) Right to Safety (b) Right to Information
(c) Right to Consumer Education (d) Right to be Heard

3. Informing consumer about the contents of the product, its usage, etc. is part of
(a) Right to Safety (b) Right to Information
(c) Right to Consumer Education (d) Right to be Heard

4. Right to safety
(a) Protects consumer from physical damage or injury
(b) Informs the consumer
(c) Both (a) and (b) (d) None of the above

5. If the value of product is ™10 lacs the consumer can file case in
(a) District Forum (b) State Commission
(c) National Commission (d) All of the above

6. If the value of goos or services is more than 20 lac but less than one one crore, then consumer can
file case in
(a) District Forum (b) State Commission
(c) National Commission (d) All of the above

7. If a customer is not satified with the judgement of state commission, he can file appeal in
(a) District Forum (b) Supreme Court
(c) High Court (d) National Commission

8. As per Consumer Protection Act, the retailer or wholeseller is

(a) A consumer (b) Not a consumer
(c) Both (a) and (b) (d) None of the above
 47
Objective Type Questions

9. To avail the benefits of Consumer Protection Act, the consumer

(a) Must insist on cash memo (b) No necessity for cash memo (c) Need a certificate of
consumer (d) None of the above

10. If goods require no testing, then complaint must be filed within

(a) 1 month (b) 2 months
(c) 3 months (d) 4 months

FILL IN THE BLANKS

1. In district forum, president can be __________________.
2. The president and member of National Commission are appointed by ________________.
3. District Forum entertains complaints for the goods or services, whose value does not exceed
__________________.
4. State Commission entertains complaints of goods or services, whose value exceeds
__________________ and less than __________________.
5. The consumer must insist on __________________.

TRUE OR FALSE
1. Consumer can file direct case in Supreme Court.
2. In place of consumer, NGO can also file a case on behalf of consumer.
3. Appeal against district forum can be filed in National Commission.
4. The right to be heard provides compensation to consumers.
5. Consumer Protection Act is beneficial only for consumer it is a penalty for businessmen.
CHAPTER-1
(Nature and Significance of Management)
3. (a) 4. (c) 5. (d)
Multiple Choice Quetsions
 1. (c) 2. (b)
6. (c) 7. (b) 8. (a) 9. (c) 10. (b)
11. (b) 12. (c) 13. (d) 14. (b) 15. (c)

Fill in the Blanks

1. Management 2. Organising 3. Planning 4. Middle
5. Dynamic 6. Multiple 7. Efficiency 8. Effectiveness
9. Organisational 10. Deliberate

True or False
1. (F) – Management is a process.
2. (F) – It is pervasive.
3. (F) – It has multiple objectives.
4. (T)

5. (F) – It is the essence of management.

CHAPTER-2

(Principles of Management)
Multiple Choice Quetsions
1. (b) 2. (b) 3. (b) 4. (a) 5. (c)
6. (c) 7. (d) 8. (a) 9. (b) 10. (d)
11. (c) 12. (b) 13. (d) 14. (a) 15. (b)
16. (c)
Fill in the Blanks
1. Functional formanship 2. Standardisation
3. Principle of Harmony not discard 4. Cooperation not individualism
5. Route Clerk 6. Differential place wage system
7. Standard time 8. Method study
9. Flexible 10. Initiative

True or False
1. (F) – Management principles provided only guidelines.
2. (F) – Management principles are flexible.
3. (T) – Management principles are pervasive.
4. (F) – Management principles are formed as a result of deep observation and repeated experiments.
 49
Objective Type Questions

5. (F) – Management principles are contingent. Their application vary from organisation to
organisation depending upon conditions and situations.

CHAPTER-3
(Principles of Management)
Multiple Choice Quetsions
1. (b) 2. (a) 3. (c) 4. (c) 5. (d)
6. (a) 7. (c) 8. (d) 9. (a) 10. (a)
11. (c) 12. (d) 13. (b) 14. (a) 15. (b)

Fill in the Blanks

1. Liberalisation 2. Liberalisation 3. Privatisation
4. Globalisation 5. Corruption 6. Diversification or Export
7. Marketing 8. ‘Relative’ 9. Inter-related
10. First Mover advantage

True or False
1. (F) – It was launched on 8th November 2016
2. (F) – They have Relative different impact on all enterprises
3. (T)
4. (T)
5. (F) – There is increase in salary packages of employees, with entry of MNC
Business Studies
50

CHAPTER-4
(Planning)

Multiple Choice Quetsions

1. (a) 2. (c) 3. (b) 4. (c) 5. (d)
6. (c) 7. (b) 8. (c) 9. (d) 10. (d)
11. (b) 12. (c) 13. (b) 14. (a) 15. (d)

Fill in the Blanks

1. Objectives 2. Decision Making or Choice 3. Rigidity
4. Creativity 5. Guarantee of success 6. Strategy
7. Rules 8. Programme 9. Reach
10. Standing plans

True or False
1. (T)
2. (F) – It is the task of all level
3. (F) – No due to uncertainties and change in environment.
4. (T)
5. (T)

CHAPTER-5
(Organising)
Multiple Choice Quetsions
1. (b) 2. (a) 3. (b) 4. (b) 5. (c)
6. (a) 7. (b) 8. (c) 9. (a) 10. (b)
11. (c) 12. (a) 13. (b) 14. (a) 15. (b)
16. (d)

Fill in the Blanks

1. Organisation Structure 2. Formal 3. Informal
4. Delegration 5. Decentralisation 6. Informal 7. Functional
8. Product 9. Extension 10. Decentralisation

True or False
1. (F) – It can never be delegated
2. (T)
Objective Type Questions
51

3. (F) – Informal is dependent on fomal

4. (T)
5. (T)

CHAPTER-6
(Staffing)

Multiple Choice Quetsions

1. (a) 2. (b) 3. (c) 4. (a) 5. (d)
6. (b) 7. (b) 8. (a) 9. (b) 10. (a)
11. (b) 12. (c) 13. (d) 14. (b) 15. (a)

Fill in the Blanks

1. Recruitment 2. Development 3. Internal
4. Estimating man power requirement 5. Placement

6. Induction training 7. Internship 8. Transfer and Promotion

9. Contract of Employment 10. External

True or False
1. (F) – No. It is very important
2. (T)
3. (T)
4. (F) – It is called apprenticeship.
5. (F) – Under Apprenticeship employee work under the
guidance of master work.

CHAPTER-7
(Directing)
Multiple Choice Quetsions
1. (b) 2. (d) 3. (c) 4. (c) 5. (a)
6. (d) 7. (b) 8. (d) 9. (a) 10. (b)
11. (c) 12. (c) 13. (a) 14. (c) 15. (b)

Fill in the Blanks

1. Motivation 2. Free Rain 3. Psychological Barrier
Business Studies
52

4. Social 5. Psychological 6. Hirarchy

7. Willingness 8. Employees recognition or Non-monetary

9. Influencing 10. Two

True or False
1. (F) – Motivators can be positive as well as negative.
2. (F) – It is Psychological barrier
3. (T)
4. (F) – It is symbol with different meaning.
5. (F) – It flows from top to bottom

CHAPTER-8
(Controlling)

Multiple Choice Quetsions

1. (c) 2. (c) 3. (b) 4. (c) 5. (a)
6. (b) 7. (a) 8. (d) 9. (d) 10. (b)

Fill in the Blanks

1. Deviation 2. Prescriptive, evaluative
3. Controlling 4. Standard 5. Corrective Action
6. Key area and non-key area 7. Controlling

8. base/standard/yardstick 9. Feedback Report

10. backward/forward

True or False
1. (F) – It is a continuous function.
2. (F) – All level
3. (T)
4. (T)
5. (F) – Deviations can be positive as well as ne gative.

CHAPTER-9
(Financial Management)
Objective Type Questions
53

Multiple Choice Quetsions

1. (b) 2. (a) 3. (c) 4. (b) 5. (b)
6. (c) 7. (a) 8. (b) 9. (a) 10. (b)
11. (a) 12. (b) 13. (a) 14. (a) 15. (a)
Fill in the Blanks
1. Financial Planning 2. Composition or Types
3. Source of Structure 4. Profit 5. Equity 6. Gainful
7. Less 8. More 9. More 10. More
True or False
1. (F) – Financial planning is a part of financial management.
2. (F) – They prefer to give low dividend.
3. (T)
4. (F) – They prefer giving high dividend.
5. (T)

CHAPTER-10
(Financial Market)
Multiple Choice Quetsions
1. (a) 2. (b) 3. (c) 4. (b) 5. (d)
6. (a) 7. (a) 8. (c) 9. (c) 10. (b)
11. (a) 12. (c) 13. (a) 14. (c) 15. (b)

Fill in the Blanks

1. Savers and investment 2. Two
3. National securities Depository Limited 4. Depositories Securities Ltd.
5. Depository Participant. 6. Pay in Day
7. Pay out day. 8. Sensex 9. Nifty 10. Developmental

True or False
1. (F) – SEBI was set jp with the main purpose of keepign a check on malpractices and protecting the
interest of investors.
2. (F) – Under offer for sale company sell the whole lot to Intermediary and then Intermediary sell the
whole lot to pubic.
3. (T)
4. (T) – They preer giving high dividend.
Business Studies
54

5. (F)

CHAPTER-11
(Marketing Management)

Multiple Choice Quetsions

1. (a) 2. (b) 3. (d) 4. (d) 5. (c)
6. (b) 7. (c) 8. (d) 9. (a) 10. (a)
11. (d) 12. (b) 13. (a) 14. (b) 15. (b)

Fill in the Blanks

1. Packaging 2. Trade mark 3. Product mix 4. Place Mix
5. Promotion mix 6. Zero 7. Inventory 8. Advertisement
9. Public Relation 10. Labelling

True or False
1. (F) – It focus on sales maximisation.
2. (F) – Under grading the product is classified on the basis of size, quality, etc.
3. (F)
4. (T)
5. (T)

CHAPTER-12
(Consumer Protection)
Multiple Choice Quetsions
1. (b) 2. (c) 3. (b) 4. (a) 5. (a)
6. (b) 7. (d) 8. (b) 9. (a) 10. (c)

Fill in the Blanks

1. Working or retired judges of district court. 2. Central Government

3. ™ 20 lakhs 4. ™ 20 lakhs and one crore

5. Cash Memo

True or False
1. (F)
2. (T)
3. (F) – It can be filed in State Commission.
4. (F)
Objective Type Questions
55

5. (F) – In long term interest of businessmen also.