BST Test

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Business Studies

Practice Test

Time Allowed : 1 Hour 30 Minutes MM: 40

Q 1. Which of the principles of management does functional foremanship violates? (1)

(a) Unity of Direction (b) Unity of Command (c) Principle of Order (d) Principle of Discipline

Q 2. Management should find one best way to perform a task, which technique of scientific Management
is defined in this sentence? (1)

(a)Time study (b) Motion study (c) Method study (d) Fatigue study

Q 3. Assertion: Business environment includes both specific and general forces. However, manager
should be careful for both forces but give priority or more focus to specific force.

Reason: If work force of abc Pvt. Ltd. Is not satisfied due to unequal distribution of remuneration, it will
affect smooth functioning of the entire Industry and will not affect the functioning of abc Pvt. Ltd.

a. Both Assertion and reason are true and reason is correct explanation of assertion. (1)

b. Assertion and reason both are true but reason is not the correct explanation of assertion.

c. Assertion is true, reason is false.

d. Assertion is false, reason is true.

Q 4. Identify the characteristic of planning displayed in the picture and choose the correct option. (1)

(a) Planning is futuristic (b) Planning is continuous

(c) Planning focuses on achieving objective (d) Planning is pervasive

Q 5. Do management need to take corrective action every time when deviation occur? (3)

Q 6. What are the essential of fixing standard in controlling? (3)

Q 7. ABC Co. which is manufacturing paints has been enjoying a prominent market position as it
manufactured best quality paints, made timely payment of taxes to government. It assembled various
inputs like finance, machines, raw materials, etc. from its environment. But since last year it has been
dumping its untreated poisonous waste on the river bank which has created many health problems for
the people. As a result, the court passed an order to seal the manufacturing unit of the company. (4)

1. State the importance of business environment highlighted quoting the line from the above case.

2. Identify any two dimensions of business environment mentioned in the above case by quoting lines
from it.

Q 8. Explain Procedure and rule. (4)

Q 9. Explain principles of deviation. (4)

Q 10. Explain any four non - financial incentives used as a means of motivation. (6)

Q 11. VLPS Hotels is a disciplined organisation. It has many branches. The organisation tries to apply
discipline in all its branches with equal effectiveness. However it knows that the nature and location of
different branches are different. They work under the impact of different cultures and work environments.
Even then discipline as an important management principle is applied to all its branches - big or small,
within the country or at foreign locations. Recently it formed a special body of five members to do
research on cross functional expertise. The organisation has learnt through the experience of the
competitors that understanding among various functional departments is important for increasing the
productivity of the organisation. So broadly it can be understood how such body is going to likely effect
the organisation through others' experience. When it comes to remuneration of employees the
organisation adopts payment of different salaries for the same post. The logic given the organisation is
that remuneration is based on situations and depends upon the employee' s capacity and the expenses
involved in a particular city.

Which natures of principles of management have been highlighted in the above case? Explain. (3x2=6)

Q 12. Explain four steps after employment interview in staffing process. (6)

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