MULTIPLE CHOICE QUESTIONS -BUSINESS STUDIES (Class 12) CBSE(MCQ5)

1. ------------------------- is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.

A. Coordination
B. Departmentalisation
C. Organisation Structure
D. Delegation of authority

2. Even Though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the Business environment is being highlighted in the above statement?

A. Specific and general forces
B. Dynamic nature
C. Relativity
D. All the above.

3. “Anyone can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfill in the statement being discussed above.

A. Ethical code of Conduct
B. Professional Association
C. Restricted Entry
D. Service Motive

4. “Even after opening up of the Indian economy in 1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business.”
Identify the dimension of the business environment which led to creation of the negative impact on business.

A. Social Environment
B. Technological
C. Political Environment
D. Legal Environment

5. 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.

6. “The increase in the demand for many Ayurvedic medicines, Health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Coronavirus.” Identify the feature of business environment being described above.

A. Specific and general forces
B. Interrelatedness
C. Relativity
D. None of the above (the answer would be uncertainty)

7. Which of the following is not an element of social environment?

A. Birth and Death rate
B. Constitution of the country
C. Population Shifts
D. Life expectancy

8. ‘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

9. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.

A. Planning 

B. Organising

C. Directing

D. Controlling

10. Identify an important principle of management control in which only significant deviations which go beyond the permissible limit should be brought to the notice

of management.

A. Management by control 

B. Control by exception 

C. Critical point control 

D. (a)&(b)

11. ----------------------------- is the process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.

A. Planning 

B. Organising 

C. Staffing

D. Controlling

12. ---------------------------------- ensures that the heads of separate business units in the organisation are responsible for profit or loss of their unit and have authority over it”.

A. Span of management 

B. Divisional Structure

C. Functional structure 

D. Hierarchy of Authority

13. Match the concept of marketing in Column I with their respective definition in Column II

             COLUMN – I                                                             COLUMN – II

A) Product Concept                              i) relates to maintaining high quality of the product

B) Selling Concept                              ii)   relates to satisfying customer needs

C) Marketing Concept                        iii) relates to aggressively persuading buyer to purchase the product

A)- i), B)- iii), C)- ii)

14. In order to get feedback about its recently launched immunity boosting ayurvedic medicine, Atulya limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya limited.

A. Standardisation 

B. Product Designing

C. Customer support service 

D. Gathering and analyzing market information

15. Read the following text and answer questions a to d on the basis of the same:

ISQAA SOLAR limited is searching options to raise Rs 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI PVT. LTD. for suggesting options for the same. DHAN LAXMI PVT. LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of Rs 1500 crores the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. Rs 4500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of Rs 6000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise Rs 8,000 crores through the on-line system of the stock exchange by entering into an agreement with the exchange. 

a. Identify the method of floatation of new issues in the primary market, not taken up by ISQAA SOLAR LTD.

A. Offer for sale
B. Rights issue
C. E-IPO
D. Offer through prospectus

b. “Rs 4500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital.’’ Identify the method of flotation of new issues in the primary market being discussed above, which the company has decided to use. 

A. Offer for sale
C. Right Issue
B. Private placement
D. Offer through Prospectus

c. Identify the reason which has made the firm raise funds from the institutional investors.

A. It helps to raise funds quickly
B. It is not expensive

C. Both a & b
D. None of the above.

d. How much money was raised by the company through E-IPO’s

A. Rs 8000 crores
B. Rs 4500 crores
C. Rs 20,000 crores
D. Rs 6000 crores