Business studies Class XII Quiz-1

A bottle of Anti- dandruff shampoo mentions ' Clean your hair and get rid of dandruff in one squeeze'. The product related decision involved is

• Branding

• Product quality

• Packaging

• Labelling

The allocative function of Financial market helps in ________

• Bringing transparency in trading procedure

• Earning higher rate of return to household sector

• Better functioning of depository

• Determining the prices of securities

Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek observed that Government was taking a special interest in the Tourism industry as this sector is an important source of foreign exchange and employment promotion. On the basis of this news, the company decided to set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels before other companies considered this issue. Very soon, this brand Oshin Hotels Ltd. became well known in the market. Identify the importance of business environment described here.

• It enables the firm to identify opportunities and getting the first mover advantage.

• It helps the firm to identify threats and early warning signals.

• It helps in tapping useful resources.

• It helps in improving performance.

The Board of directors of Medex Pharma Ltd. decided to issue debentures worth ₹40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1. However, at the same time it would increase the Earnings per share. The reason that will justify the above situation is:

• Unfavourable financial leverage, as the financial risk will be higher.

• Unfavourable financial leverage, as return on investment is lower than the cost of debt.

• Favourable financial leverage as debt is easily available

• Favourable financial leverage, as return on investment is higher than cost of debt

STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialisation. STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialisation. Choose the correct option from the following:

• Statement I is true and II is false

• Statement II is true and I is false

• Both the statements are true

• Both the statements are false

With the presence of women in the workforce, there has been a shift towards formal wear, increased demand of electronic gadgets and increase in demand of cosmetics. The related dimension of business environment referred in the above lines is:

• Technological environment.

• Social environment

• Political environment.

• Economic environment

Name the function of marketing which is effective in bringing repeat sales from the customers and developing brand loyalty for a product.

• Standardization and grading

• Promotion

• Customer support services

• Packaging and labelling

Concentration of decision making functions at the apex of management hierarchy is called __________

• Decentralisation.

• Delegation

• Organisational structure.

• Centralisation

SEBI calls for information and issues a show cause notice to stock exchange and its officials seeking explanation and conducting audit and enquiry. Which function is SEBI performing?

• Regulatory function

• Development function

• Protective function

• Both Regulatory and protective function.

IND Dyechem Ltd. is a chemical manufacturing company producing dyes and pigments both for domestic and international market. It has enjoyed a considerable market share but lately, it has been facing problems in terms of target sales and customer satisfaction. This is due to the reason that new entrants have emerged with better technology and competitive pricing. The Chairman of the company addressed this issue in the departmental meeting. The production head, Mr. Kamble, advised the Chairman to revamp the system and take immediate necessary actions to rectify the problem so that sales are achieved as per the plans. Identify the relevant function of management being discussed here.

• Organising

• Staffing

• Controlling

• Planning