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Business studies class XII Quiz-9

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Mr. Raj has taken over the new CEO of Narayan public Ltd. form the 1st of june. Has announced in his first address to all the managers of the company that he will be taking all the necessary steps and keeping the increase in raw material as his top most priority. Last year the raw material cost increased by over 3% and was brought the previous CEO of the company. This year Mr. Raj has announced that he will go for immediate action in case the cost of raw material increases by more than 5%.

Which principle of management control is indicated in the above case?

a)

Key results area

b)

Management by exception

c)

Positive deviation

d)

Negative deviation

2.

In the recent ruling, the Supreme Court of India has ordered an immediate stop on commercial activities in a 500-metre radius of the Taj Mahal and asked Agra Development Authority to ensure compliance of its directive. Which dimension of business environment is reflected here?

a)

social

b)

Technological

c)

legal

d)

polictical

3.

Match the following functions of management with their features:

a)

(i-b) (ii-c)

b)

(i-c) (ii-a)

c)

(i-b) (ii-a)

d)

(i-c) (i-b)

4.

Assertion (A): Functional structure places less importance to organisation's objectives.

Reason (R): In functional structure, all the departments focus on their own objectives and not on organisational objectives.

a)

Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A)

b)

Both A ssertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A).

c)

Assertion (A) is true but Reason (R) is false.

d)

Assertion (A) is false but Reason (R) is true.

5.

Manohar a sales manager in Essential Oils Ltd., exercises complete power and control over his subordinates. He does not like consulting his subordinates in any matter.

Which leadership style is being followed by Manohar?

a)

Autocratic leadership

b)

Democratic leadership

c)

Free-rein leadership

d)

Paternalistic leadership.

6.

With the introduction of mineral water bottles in India, Bisleri was able to capture the big market share in India. Which importance of business environment is highlighted in the above case?

a)

Helps to tap resources

b)

Helps in policy making

c)

Improves performance

d)

Helps to identify opportunity and getting first mover advantage

7.

Identify the principle of management in the statement "She divides the work into small tasks and each employee is trained to perform his/ her specialised job."

a)

Unity of command

b)

Division of work

c)

Unity of direction

d)

Discipline

8.

ldentify the principle of management in the statement."The sales persons are allowed to close a deal with a buyer bv giving a maximum of 10% discount, whereas the decision to give any further discount rests with Radhika as the final authority.

a)

Division of work

b)

Initiative

c)

Discipline

d)

Centralisation and decentralisation

9.

The management of Hima Ltd., has achieved the target of 20% profit in the previous year. However, they are hesitant to share the increased gain of the company with the workers.

Identity the principle of management being overlooked by the management.

a)

Harmony, not Discord

b)

Development of Individuals

c)

Science, not Rule of thumb

d)

None of these

10.

Statement 1: "To establish interchangeability of manufactured parts and products" is an objective of 'simplification of work' technique of scientific management.

Statement 2: Simplification aims at eliminating superfluos varieties, sizes and dimensions while standardisation implies establishing standards of excellence and quality in materials.

a)

Statement 1 is correct and statement 2 is not correct.

b)

Statement 2 is correct and statement 1 is not correct.

c)

Both the statements 1 and 2 are correct.

d)

Both the statements 1 and 2 are not correct.

11.

Which of the following statements is incorrect?

a)

Providing liquidity to securities is one of the functions of stock exchange.

b)

Process of holding shares in electronic form is known as Dematerialisation.

c)

Securities Exchange Board of India performs the regulatory function of controlling insider trading and imposing

d)

The main instruments traded in capital market are short-term debt instruments.

12.

Tata Limited has a staff of 300 people which is grouped into different departments. The organisational structure depicts that 100 people work in Production Department, 150 in Finance Department, 20 in Technological Department and 30 in Human Resource Department. Identify the type of organisational structure being followed by the company.

a)

Functional

b)

Divisional structure

c)

Informal structure

d)

None of the above.

13.

Given picture highlights a concept of financial management. Identify it.

a)

Trading on equity

b)

Financial Planning

c)

Investment Decision

d)

Dividend Decision

14.

As per Consumer Protection Act, 2019, the consumer has a right to get relief in case the product or service falls short of his expectation.

Which consumer right is discussed in the above statement?

a)

Right to be heard

b)

Right to be assured

c)

Right to seek redressal

d)

Right to safety

15.

In the paint industry, various raw materials are mixed in difterent proportions with petroleum for manufacturing different kinds of paints. One specifiC raw material is not readily and regularly available to the paint manufacturing companies. Bonler Paint Company is also facing this problem and because of this, there is time lag between placing a order and the actual receipt of the material. However, once it receives the raw materials, it takes less time in converting it into finished goods.

Idetify the factor affecting the working capital requirements of this industry.

a)

Availability of Raw Materials

b)

Cost

c)

Risk

d)

Cash flow position

16.

Extended form of delegation of authority is called

a)

specialisation

b)

decentralisation

c)

centralisation

d)

division of labour

17.

Radhika Ltd. uses environment friendly methods of production. Identify the objective it is trying to achieve.

a)

economic objective

b)

social objective

c)

personal objective

d)

organisational objective

18.

Stock exchange helps in................................

a)

providing liquidity to existing securities

b)

contributing to economic growth

c)

determining the prices of securities

d)

all of the above

19.

Sudha's grandmother in her will have shares worth 50 lakh in her name, when she opened the bank locker to get the share certificates, she found all were in very bad shape, half torn, etc. To overcome this problem, the financial market has started a new concept called

a)

Dematerialisation

b)

Demutualisation

c)

Both Dematerialisation & Demutualisation

d)

None of these

20.

Raghu purchased a truck worth 35 lakhs. The truck had some in-built problems and after some days stopped working properly. Since it was in the guarantee period, it was shown to the company. The people in the company refused to attend Raghu's complaints. It was heart breaking for him so he decided to file a complaint in the District Commission. The District Commission on hearing the pleas from both the parties, gave decision in favour of the truck company. It was shockingly bad news for Raghu. At what level of authority, should Raghu file a complaint

a)

Supreme Court

b)

State Commission

c)

District Commission

d)

National Commission