ST CHARLES WOMEN’S PU COLLEGE - BANGALORE

SUBJECT: BUSINESS STUDIES

MULTIPLE CHOICE QUESTIONS:

1. Which of the following is not a function of Management?

a. Planning b. Staffing
c. Co-operating d. Controlling

2. The following is not an objective of Management

a. Earning Profits b. Growth of the Organisation
c. Providing employment d. Policy

3. Policy formulation is the function of

a. Top level management b. Middle level management
c. Operational Management d. All of the above

4. Successful Management ensures that

a. Goals are achieved with least cost b. Timely achievement of goals
c. Both of the above d. None of the above

5. Management as a profession is
a. Well defined body of knowledge b. Restricted entry
c. Ethical code of conduct d. All of the above

6. Hemangi enterprises limited is planning to increase its sales by 30% in the next quarter. Identify the
feature of management being highlighted in the given statement.
a. Management is all pervasive b. Management is goal-oriented process
c. Management is a continuous process d. All of the above

7. Coordination is
a. Function of Management b. The essence of Management
c. An objective of Management d. None of the above

8. Refers to doing the task correctly and with minimum cost

a. Effectiveness b. Co-ordination
c. Process d. Efficiency

9. Management is considered as
a. Art b. Science
c. Both Art and Science d. None of the above

10. Providing facilities of Schools, creches, and Hospitals is the ______ objective of Management.
a. Social Objective b. Organizational Objective
c. Personal Objective d. None of the above

11. Principles of management are not

a. Universal b. Flexible
c. Absolute d. Behavioural

12. How are principles of management formed?

a. In a Laboratory b. By experience of Managers
c. Experiences of Customers d. By propagation of social scientists
13. The principles of management are significant because of
a. Increase in efficiency b. Initiative
c. Optimum utilisation of resources d. Adaptation to changing technology

14. Henri Fayol was a

a. Social scientist b. Mining Engineer
c. Accountant d. Production engineer

15. Which of the following statement best describes the principle of ‘Division of Work’?
a. Work should be divided into small tasks b. Labour should be divided
c. Resources should be divided among jobs d. It leads to specialisation

16. Which of the following is NOT a Principle of Management given by Taylor?

a. Science, not rule of Thumb b. Division of Work
c. Cooperation not Individualism d. Harmony not discord

17. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers. Whose work is
described by this sentence under functional foremanship?
a. Instruction card clerk b. Repair boss
c. Gang boss d. Speed boss

18. Management should find “One best way” to perform a task. Which technique of Scientific management
is defined in this sentence?
a. Time study b. Motion study
c. Fatigue study d. Method study

19. Which of the following statements best describes ‘Mental Revolution’?

a. It implies change of attitude b. The management and workers should not play
c. Both management and workers require
each other the game of Upmanship d. Workers should be paid more

20. Basic aim of Functional foremanship is

a. Not to provide free time to workers b. Not to divide the work
c. To separate planning functions from d. To separate Top level management from
execution functions Chief Executive Officer

21. Which of the following does not characterize the business environment?
a. Uncertainty b. Relativity
c. Employees d. Complexity

22. Which of the following best indicates the importance of business environment?
a. Identification b. Improvement in performance
c. Coping with rapid changes d. All of them

23. Which of the following is an example of social environment?

a. Money supply in the economy b. Consumer Protection Act
c. The Constitution of the country d. Composition of family

24. Liberalisation means

a. Integration among economies b. Reduced govt. controls and restrictions
c. Policy of planned disinvestments d. None of the above

25. Which of the following is a feature of demonetization?

a. Tax Administration measure b. Channelizing savings into the formal financial
system
c. Development of less cash economy d. All of the above
26. Between June 2023 and June 2024, a report says the exports of India have increased by 2.47% while
imports have increased by 5.04%. Identify the related dimensions of the business environment.
a. Social dimension b. Technological dimension
c. Legal dimension d. Economic dimension

27. Identify the related dimensions of the business environment which led to the mandatory usage of masks
and PPE kits during COVID-19.
a. Social dimension b. Legal dimension
c. Technological dimension d. Political dimension

28. The Government of India has allowed foreign direct investment in the insurance sector. What economic
reform is the reason for this change in government’s policy?
a) Globalisation b) Liberalisation
c) Privatisation d) Demonetisation

29. Which one of the following is a part of the economic environment?

a. Public debt b. Lifestyle of people
c. Technological changes d. Level of education

30. The aim of demonetisation was to

a. Curb corruption b. Curb accumulation of black money
c. Counterfeiting the use of high
denomination notes for illegal activities d. All of the above

31. Name the function of management which involves setting objectives

a. Directing b. Planning
c. Staffing d. Organising

32. Which of the following is a type of standing plan?

a. Budget b. Project
c. Programmes d. Rule

33. Which of the following is not a type of plan?

a. Objectives b. Co-ordination
c. Budget d. Rule

34. First step in the planning process is

a. Implementing the plan b. Evaluate alternative courses
c. Setting an objective d. None of the above

35. Which of the following is an example of a single-use plan?

a. Policy b. Procedure
c. Budget d. Method

36. Name the type of budget which determines the net cash position
a. Purchase budget b. Sales budget
c. Cash budget d. Production budget

37. The form of organisation known for giving rise to rumours is called
a. Centralised organisation b. Decentralised organisation
c. Formal organisation d. Informal organisation

38. Mohan was given a task by his superior to prepare a plan in one week. He asked two of his subordinates
to work on two aspects of his task. One of the subordinates was sick and could not complete his work.
Who is accountable for his task?
a. Mohan is accountable b. Mohan’s subordinate is accountable
c. Mohan’s superior is accountable d. None of them
39. Grouping of activities on the basis of functions is a part of
a. Centralised organisation b. Decentralised organisation
c. Divisional organisation d. Functional organisation

40. Which of the following is not an element of delegation?

a. Accountability b. Authority
c. Responsibility d. Informal organisation

41. Under this type of organisational structure manpower is grouped on the basis of different products
manufactured
a. Divisional structure b. Functional structure
c. Network structure d. Matrix structure

42. Promotion of employees results in

a. Increase in pay b. Increase in responsibility
c. Increase in job satisfaction d. All of the above

43. Which of the following is an off-the-job training method?

a. Coaching b. Vestibule training
c. Internship d. Job rotation

44. Which of the following is an on-the-job training method?

a. Job rotation b. Films
c. Computer modelling d. Vestibule training

45. Which of the following is an Internal source of recruitment?

a. Advertisement b. Campus recruitment
c. Transfer d. Employment exchange

46. Horizontal movement of employees within the organisation is called

a. Promotion b. Transfer
c. Campus recruitment d. Demotion

47. The test which is helpful in assessing the individual capacity for learning new skills
a. Aptitude test b. Personality test
c. Interest test d. Intelligence test

48. Which one of the following is not an element of direction?

a) Motivation b) Communication
c) Delegation d) Supervision

49. The motivation theory which classifies needs in hierarchical order is developed by:
a) Fred Luthans b) Scott
c) Abraham Maslow d) Peter F. Drucker

50. Which of the following is a financial incentive?

a) Promotion b) Stock Incentive
c) Job Security d) Employee Participation

51. Which of the following is not an element of the communication process?

a) Decoding b) Communication
c) Channel d) Receiver

52. Grapevine is:

a) Formal Communication b) Barrier to Communication
c) Lateral Communication d) Informal Communication
53. Status comes under the following type of barriers:
a) Semantic barrier b) Organisational barrier
c) Non-Semantic barrier d) Psychological barrier

54. The software company promoted by Narayana Murthy is:

a) Wipro b) Infosys
c) Satyam d) HCL

55. The highest level need in the need hierarchy of Abraham Maslow is:
a) Safety need b) Belongingness need
c) Self-actualization need d) Prestige need

56. The process of converting the message into communication symbols is known as:
a) Media b) Encoding
c) Feedback d) Decoding

57. The communication network in which all subordinates under a supervisor communicate through the
supervisor only is:
a) Single Chain b) Inverted V
c) Wheel d) Free Flow

58. On the successful completion of two years in a company, Kailash received a letter confirming his job as
a permanent employee. Identify the need of Kailash being fulfilled as per Maslow’s need hierarchy
theory.
a) Esteem Needs b) Self-actualisation Needs
c) Basic Physiological Needs d) Security Needs

59. If there is no reward or appreciation for a good suggestion, the subordinates may not be willing to offer
useful suggestions. Identify the type of barrier to communication in the above statement.
a) Unwillingness to communicate b) Lack of proper incentive
c) Distrust d) Lack of confidence of superior on subordinate

60. An efficient control system helps to:

a) Accomplish organisational objectives b) Boost employee morale objectives
c) Judge accuracy of standards d) All the above

61. . Controlling function of an organisation is:

a) Forward looking b) Backward looking
c) Both forward and backward looking d) None of the above

62. The controlling function is performed by a manager at:

a) Top level b) Middle level
c) Lower level d) All the levels

63. Standards can be set in terms of:

a) Quantitative b) Qualitative
c) Both quantitative and qualitative d) None of the above

64. What should be the ‘Critical Point’ for a manager to attend to while controlling as controlling in each
and every step is not possible?
a) Special area b) Key result area
c) Normal area d) None of these

65. Business finance is needed to:

a) Establish a business b) Run a business
c) Expand a business d) All of the above
66. The primary aim of financial management is to:
a) Maximise shareholder’s wealth b) Wealth maximisation concept
c) Maximisation of the market value of
equity shares d) All of the above

67. Current assets are those assets which get converted into cash:
a) Within 6 months b) Within 1 year
c) Between 1 & 3 years d) Between 3 & 5 years

68. Name the financial decision which relates to the disposal of profits.
a) Investment decision b) Financing decision
c) Dividend decision d) Capital budgeting decision

69. ‘Focus on satisfaction of customer’s needs is the key to the success of any organisation in the market’.
The underlying marketing philosophy is:
a) Production concept b) Selling concept
c) Marketing concept d) Product concept

70. A decision to acquire a new & modern plant to upgrade an old one is a:
a) Financing decision b) Working capital decision
c) Investment decision d) None of the above

71. Marketing mix is the set of:

a) Selling tools b) Production tools
c) Publicity tools d) Marketing tools

72. Which of the following is a durable product?

a) Toothpaste b) Chocolate
c) Television d) Stationery item

73. Amazon is an example for:

a) Brand Name b) Brand mark
c) Trade mark d) Label

74. Which of the following factors affects price determination?

a) Product cost b) Demand
c) Government regulations d) All of these

75. Which of the following is not a component of Physical Distribution?

a) Transportation b) Warehousing
c) Inventory control d) Packaging

76. Providing information to the customers about the product, its features, and quality etc., are part of:
a) Production b) Promotion
c) Pricing d) None of the above

77. Which of the following is not a part of the promotion mix?

a) Sales promotion b) Personal selling
c) Advertising d) Physical distribution

78. Discount, contests, free samples, and lucky draws etc., are the examples of:
a) Personal selling b) Sales promotion
c) Channels of distribution d) Advertising
79. The Consumer Protection Act was formed in the year:
a) 2019 b) 1984
c) 1987 d) 2007

80. Consumer protection is important for business because of:

a) Long-term interest b) Social responsibility
c) Uses society’s resources d) All of the above

81. Consumers are exploited when:

a) The shopkeeper underweights b) The shopkeeper overcharges
c) The shopkeeper sells goods of inferior quality d) All of the above

82. Which of the following rights is not provided by the Consumer Protection Act to the consumers?
a) Right to safety b) Right to choose
c) Right to scold d) Right to seek redressal

83. Those complaints that can be filed in the State Commission where the value of goods or services and the
amount of compensation claimed is:
a) More than Rs. 20 Lakhs but less than Rs. 1 Crore
b) More than Rs. 1 Crore but less than Rs. 10 Crores
c) More than Rs. 10 Crores
d) More than Rs. 10 Lakhs but less than Rs. 20 Lakhs

84. Which of the following functions are not carried out by the consumer organisation?
a) Accelerating consumer awareness b) Filing suits, complaints on behalf of consumers
c) Solving personal and marital problems d) Collecting information of different products and
of consumers testing them

85. Where can the aggrieved party appeal further, in case, he is not satisfied with the order of the District
Commission?
a) State Commission b) National Commission
c) Supreme Court of India d) All of the above