R.K.

Academy of Commerce

5K/84 NIT 5 FARIDABAD, 9582959759

Class: 12th

Subject: Business

Part – A
Q1. Successful organizations do not achieve goals by chance but by following a deliberate process
known as
(a) Planning
(b) Co-ordination
(c) Controlling
(d) Management

Q2. By profession, FW Taylor was a

(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer

Q3. Business environment includes both specific and general forces. List any four specific forces.

Q4. Assertion (A): Planning is a choice-making activity.

Reason (R): Planning involves selecting the best alternative out of various available options.

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

Q5. Raman and Vasudev were two employees who were embezzling an import-export company in
Varanasi where they were working. The finance manager of the company Sampat Singh became
suspicious of the two employees when he realized that their activities were not being performed as per
the plans. He installed a software program that could secretly log every single stroke of the suspects’
computer keys and send an encrypted email report to the Cyber police. The police were able to catch
the two dishonest employees red-handed and arrest them. Identify the function of management being
discussed above.

(a) Staffing
(b) Coordination

(c) Controlling

(d) Organizing

Q6. Statement-I Management by exception facilitates delegation of authority and increases the morale
of the employees.

Statement-II . It saves the time and effort of managers as they deal with only significant deviations.

Choose the correct option from the options given below:

(a) Statement I is true and II is false

(b) Statement II is true and I is false

(c) Both statements are true

(d) Both statements are false

Q7. Basic Physiological Needs are concerned with ____________.

(a) Shelter

(b) Hunger

(c) Thirst

(d) All of These

Q8. Rakesh is working under his superior Neeraj. He always communicates useful ideas and suggestions
to his superior regarding reduction of cost, improvement in the product, etc. Neeraj implements his
suggestions and has always found favorable results, but he never appreciates Rakesh for his suggestions.
Now Rakesh decided not to communicate any suggestion or idea to Neeraj. Identify the communication
barrier.

(a)Semantic barriers

(b) Personal Barriers

(c)Organizational barriers

(d) psychological barriers

Q9. Assertion (A): Expenses on training are the investment for the future.

Reason (R): Expenses on training makes employees able to complete their work in an efficient manner
and give the benefit of specialization to the organization.

Choose the correct option from the following:

(a) A is correct but R is not the correct explanation of A.

(b) A is correct and R is the correct explanation of A.

(c) Only A is correct, R is incorrect.

(d) Both A and R is incorrect.

Q10. Infosys recruits candidate from Kirorimal College' is an example of ______________method of one
of the sources of recruitment.

Q11. Statement I: Out of training and development, Development is wider in scope.

Statement II: Freshly appointed people need orientation.

Choose the correct option:

(a) Statement I and II both are correct.

(b) Statement I is correct but Statement II is incorrect.

(c) Statement II is correct but Statement I is incorrect.

(d) None of these

Q12.Manohar was given a task by his superior to prepare a plan in 20 days. He asked two of his
subordinates to work on two aspects of his task. One of the subordinates met with an accident and
could not complete his work. Who is answerable for this task?

(a) Manohar is accountable.

(b) Manohar’s subordinate is responsible.

(c) Manohar’s superior is responsible.

(d) None of them is responsible.

Q13. Assertion(A): While authority is delegated, responsibility is imposed, and

accountability is assumed.
Reason(R): Authority can be delegated by a manager to a subordinate, which
means granting of authority to the subordinate to operate within prescribed limits.
Responsibility is the obligation of a subordinate to properly perform the assigned
duty. Accountability implies being answerable for the final outcome.
Choose the correct option:
(a) Both Assertion (A) and Reason (R) are true.
(b)Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason (R) is false.
(d)Assertion (A) is false and Reason (R) is true.

Q14. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify the type
of organizational structure followed by the organization.
(a) Functional structure

(b) Relational structure

(c) Divisional structure

(d) None of the above

Q16. Decentralization is an extension of delegation.

(a) True

(b) False

(c) Partially True

(d)Partially

Q17 Kundan Lai joined a food processing unit as a factory worker. Since he was expected to
work on sophisticated machinery, he was asked to undergo special training. Identify the training
method with reference to the above lines.

(a) Vestibule training

(b) Apprenticeship training

(c) Internship training

(d) Induction training

Q18. Which of the following is the appropriate order of hierarchy of needs according to Abraham
Maslow?

(a) Safety Needs → Physiological needs → Affiliation needs → Esteem Needs → Self
Actualization needs

(b) Physiological needs → Safety Needs → Affiliation needs → Esteem Needs → Self
Actualization needs

(c) Affiliation needs → Safety Needs → Psychological needs → Esteem Needs → Self
Actualization needs

(d) Physiological needs → Safety Needs → Esteem Needs → Affiliation needs → Self
Actualization needs

Q19. Assertion (A): Motivation is the technique used to motivate people in an organization.

Reason (R): Negative motivation provides rewards like increase in pay, promotion, recognition,
etc.
In the following questions, a statement of Assertion (A) is followed by a statement of Reason
(R). Mark the correct choice as:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).

(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(c) (A) is true, but (R) is false.

(d) (A) is false, but (R) is true.

Q20. Assertion (A): Directing is a key managerial function.

Reason (R): Directing is a continuous activity.

In the following questions, a statement of Assertion (A) is followed by a statement of Reason

(R). Mark the correct choice as:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).

(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(c) (A) is true, but (R) is false.

(d) (A) is false, but (R) is true.

Q21. Alok is view supervisor of Ram, Rahim and Khan. He consults all his subordinates while
framing work schedules, they provide suggestions and Alok consider such suggestions if they
are productive. Which leadership style is followed by Alok?

(a) Democratic style

(b)Autocratic style

(c)Free rein style

(d)none of the above

Q22. Assertion (A): Controlling ensures that resources are used in the most effective and
efficient manner.

Reason (R): In controlling, each activity is performed in accordance with predetermined

standards and norms to reduce wastage and spoilage of resources.

In the following questions, a statement of Assertion (A) is followed by a statement of Reason

(R). Mark the correct choice as:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(c) (A) is true, but (R) is false.

(d) (A) is false, but (R) is true.

Q23. “Employee know well in advance what they are expected to do and what are the standards
of performance on the basis of which they will be appraised, which in turn help them to give
better performance.” Which importance of controlling is highlighted above?

(a) Facilitating coordination in action

(b) Making efficient use of resources

(c) Accomplishing organizational goals

(d) Improves employee motivation

Q24. Assertion (A): The controlling function measures progress towards the organizational
goals.

Reason (R): Controlling guides the organization and keeps it on the right track so that
organizational goals might be achieved.

In the following questions, a statement of Assertion (A) is followed by a statement of Reason

(R).

Mark the correct choice as:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).

(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(c) (A) is true, but (R) is false.

(d) (A) is false, but (R) is true.

Q25. Which of the following statements best defines the techniques of management?
(a) It is a set of guidelines to take decisions and actions.
(b) It is a procedure which involves a series of steps to be taken.
(c) They are general rules for behaviour of individuals.
(d) None of the above.

Q26. Rahul, sales executive of Mankind Pharma Ltd. Put forth the idea of using artificial
intelligence in the marketing of its products which will help in saving time, cost, and energy for
both ends. The marketing manager appreciated him but suggested continuing with the already-
developed marketing strategy. which limitation of planning is reflected in the above case.

(a) Planning is time-consuming

(b) Planning reduces creativity

(c) Planning leads to rigidity

(d)Planning does not guarantee success

Q27. For the following two statements choose the correct option:

Statement I: Planning is pervasive.

Statement II: Planning reduces creativity as it is usually made by top management and the rest
of the members just implements these plans.

Choose the correct option from the options given below:

(a) Statement I is correct and II is wrong

(b) Statement II is correct and I am wrong

(c) Both statements are correct

(d) Both statements are incorrect

Ans: c) Both statements are correct

Q28. There are two statements marked as Assertion (A) and Reason(R). Read the statements
and choose the appropriate option from the options given below;

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

(b) Both Assertion (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

Assertion (A): Monitoring the plan is equally important to ensure that objectives are achieved.

Reason(R): To see whether plans are being implemented and activities are performed
according to schedule is also part of the planning process.

Q29. 14.There are two statements marked as Assertion (A) and Reason(R). Read the
statements and choose the appropriate option from the options given below;

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

Assertion (A): Middle management and other decision-makers are neither allowed

to deviate from the plan nor they are permitted to act on their own.

Reason(R): Planning in a way reduces creativity since people tend to think along the

same lines as others

Q30. There are two statements marked as Assertion (A) and Reason(R). Read the statements
and choose the appropriate option from the options given below;

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

(b) Both Assertion (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

Assertion (A): Sales forecast is the basis on which a business firm prepares its annual plan for
production and sales

Reason(R): Planning is the primary function of management

Q31. Statement-I Management by exception facilitates delegation of authority and increases the
morale of the employees.

Statement-II. It saves the time and effort of managers as they deal with only significant
deviations.

Choose the correct option from the options given below:

(a) Statement I is true and II is false

(b) Statement II is true and I is false

(c) Both statements are true

(d) Both statements are false

Q32. Assertion (A): Controlling ensures that resources are used in the most effective and
efficient manner.

Reason (R): In controlling, each activity is performed in accordance with predetermined

standards and norms to reduce wastage and spoilage of resources.

In the following questions, a statement of Assertion (A) is followed by a statement of Reason

(R). Mark the correct choice as:

(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).

(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

(c) (A) is true, but (R) is false.

(d) (A) is false, but (R) is true.

Q33. While scrutinizing the production records it is found that in a particular Batch, the rejection
rate was 5% against the standard of 2%. The management found out that this was due to the
negligence of quality control staff. This action is part of which step in the controlling process.

(a) Measurement of actual performance

(b) comparing actual performance with standards

(c) analysing deviations

(d) taking corrective action

Q34. 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

Q35. To make sure employees focus on work and follow the method of production as per plan
the management of Jai Ltd. decided to install CCTV (close circuit television) in the factory for
monitoring the activity of workers.

(a) Planning

(b) Controlling

(c) Staffing

(d) Directing
Q36. “Employee know well in advance what they are expected to do and what are the standards
of performance on the basis of which they will be appraised, which in turn help them to give
better

performance.” Which importance of controlling is highlighted above?

(a) Facilitating coordination in action

(b) Making efficient use of resources

(c) Accomplishing organizational goals

(d) Improves employee motivation

Q37. Which of the following is a financial incentive?

(a) Productivity linked wage incentive

(b) Organizational climate

(c) Status

(d) Job Enrichment

Q38. Directing is initiated at................. level of management.

(a) Lower

(b) Middle

(c) Top

(d) All of these

Q39. In which situation the divisional structure happens to be appropriate?

(a) Where the number of major products is more than one

(b) Where the size of the organization is quite large

(c) Both (a) and (b)

(d) Where primarily only one product is sold

Q40. There are two statements marked as Assertion (A) and Reason(R). Read the statements
and choose the appropriate option from the options given below;
(a) Both Assertion (A) and Reason(R) are true and Reason (R) is the correct explanation of
Assertion (A)

(b) Both Assertion (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

Assertion (A): Monitoring the plan is equally important to ensure that objectives are achieved.

Reason(R): To see whether plans are being implemented and activities are performed
according to schedule is also part of the planning process.

Q41 Identify the types of plans (only name):

1. Ramesh is a senior middle level manager. He is busy in allocating resources to his staff,
he has also finalized the objectives and decided the course of action to be followed. He
is expecting energy in his staff for the whole season but he will have to be cautious.
2. Suresh is giving a speech to the workers of his factory. He is the owner of a toy
manufacturing factory and has 123 workers. He tells them that this year’s target of
production is 7.5 lakh toys.
3. On the wall of ‘Health is Wealth’ hospital a board is hanging. On this board. It is written
‘We care for the health of senior citizens as our topmost priority’. This hospital is known
for treating people aged more than 60 years.
4. Rakesh calls his new subordinates for a meeting. He is a top level manager. He
arranges for a power point presentation to train his subordinates who are all middle level
managers. He tells them the way of doing task of treating suppliers through a new
software system to be installed within next 30 days.
5. Dinesh takes a meeting and guides his employees in a type of plan which is
chronological in nature and is situation specific. It is a collection of various methods in a
step wise sequence.
6. Amit has given a detailed statement of expected results in numerical terms. This plan is
conveyed to the subordinates by him in a special meeting. (6)

Q42.Read the following text and answer the following questions on the basis of the same: Sana
is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the
sales of Indian handloom and handicraft products. It sells fabrics, furnishings, ready-mades and
household items are made out of traditional Indian fabrics. Sana decides quantities, variety,
colour and texture of all the above items and then allocates resources for their purchase form
different suppliers. She appoints a team of designers and crafts people in the company, who
developed some prints for bed covers in bright colour on silk. Although the products looked very
attractive and impressive, they were relatively expensive on the front of affordability for an
average customer. Sana suggested that they should keep the silk bed covers for special festive
occasions and offer the cotton bed covers on a regular basis to keep costs under control. (4)

Q1. “She appoints a team of designers and crafts people in the company, who developed some
prints for bed covers in bright colour on silk.” Which function of management is highlighted in
this context?
(A)Controlling

(B) Staffing

(C) Planning

(D)Directing

Q.2 In the above case “company’s objective is to promote the sales of Indian handloom and
handicraft products.” The above line focus on which feature of management?

(A)Management is an intangible force

(B) Management is a goal oriented process

(C) Management is pervasive in nature

(D)Management is a continuous process

Q.3 With reference to the above case, at which level of management Sana is working?

(A)Lower level

(B) Top level

(C) Middle level

(D)Shop floor

Q.4 “Sana suggested that they should keep the silk bed covers for special festive occasions and
offer the cotton bed covers on a regular basis to keep costs under control.” Which function of
management is highlighted in this context?

(A)Controlling

(B) Staffing

(C) Organising

(D)Planning

Q43. After completing her Bachelors in Fashion Designing from a well-known college in France,
Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller
units and each employee is well trained to perform his/her task efficiently. The sales persons
are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas
the decision to give any further discount rests with Aditi as the final authority. In the earlier
period of her business venture, employees were asked to put in extra hours of work. In return
she had promised to give them a special incentive within a year. Therefore, when the business
was doing well, she honour her commitment by giving bonus to her employees. She also
instructed her employees that communication from top to bottom should follow the official lines
of command. However, she tends to be more biased towards her female employees, when it
comes to solve the conflicts among employees. (4)

Q .1 Aditi has divided the work in smaller units and each employee is well trained to perform his/
her task efficiently. Which principle of management is being followed here?

(a) Centralization and Decentralization

(b) Division of work

(c) Discipline

(d) Order

Q .2 "The sales persons are allowed to close a deal with a buyer by giving a maximum of 5
percent discount, whereas the decision to give any further discount rests with Aditi as the final
authority." Identify the principle of Management being followed here:

(a) Centralization and Decentralisation

(b) Authority and Responsibility

(c) Unity of Command

(d) Unity of Direction

Q . 3 “Therefore, when the business was doing well, she honoured her commitment by giving
bonus to her employees.” Which principle of management is being highlighted here?

(a) Discipline

(b) Order

(c) Remuneration to Employees

(d) Unity of Direction

Q.4 Aditi tends to be more biased towards her female employees, when it comes to solve the
conflicts among employees. Which principle is being violated here?

(a) Discipline

(b) Order

(c) Equity

(d) None of these

Q44. Read the following text and answer the following questions on the basis of the same: The
name and taste of Coca-Cola is known to almost each and every individual in India as well as
throughout the world. This carbonated soft drink holds the most market share in the soft drink
market and got itself a special seat in each and every gathering. The Coca-Cola Company has
on occasion introduced other cola drinks under the Coke name. The most common of these are
Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-
Cola Zero Sugar, CocaCola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on
each and every opportunity to market itself effectively and place itself in the middle of every
gathering. The main reason for such an outstanding placement of product goes to the way they
have established the connection between every occasion and the need for Coke to be present
there, product design and creative advertising. (4)

Q.1 In the context of the above given case, identify one valid importance of Business
Environment.

a) Enables a firm to identify opportunities and getting first mover advantage

b) Uncertainty

c) Delay in action

d) Pervasive function

Q.2 Identify the feature of Business Environment which The Coca-Cola Company managed to
get in their favour.

a) Complex

b) Specific and general forces

c) Futuristic

d) Mental Exercise

Q.3 Which business environment did Coca-Cola majorly tap into?

a) Technological Environment

b) Social Environment

c) Political Environment

d) Economic Environment

Q.4 Which of the following is not a product of COCA-COLA?

a) Diet Coke Caffeine free

b) Coca-Cola Zero Sugar

c) Coca-Cola Avocado

d) Coca-Cola Cherry

Q45. Read the following text and answer the following questions on the basis of the same:
Simplex limited had been taken over by Mundhra Group immediately following India’s
independence. Since then it enjoys a rich record of industry presence and experience. In 2005,
with the aim to accelerate growth the company had gone through several rounds of meetings
and discussions before launching ERP system to attract large projects. The management had
done effective forecast and critical thinking regarding allocation resources to reduce wastage.
For this purpose the company had laid down multiple courses of action to meet the challenge of
adverse situations. In 2008, the company suffered loss in many projects due to the great
recession despite taking many cost cutting measures. The management had taken utmost care
regarding the possible outcome and timely review of the plans to achieve the set target during
that hard time. In 2010 the system implemented successfully which subsequently helped the
company to execute numerous projects with precision and timeliness. (4)

Q.1 “In 2005, with the aim to accelerate growth the company had gone through several rounds
of Meetings and discussions.” What is the objective mentioned here according to the process
stated here?

A. Developing Premises

B. Growth & development

C. Launching IT enabled system

D. Cost cutting.

Q.2 “In 2008, the company suffered loss in many projects due to the great recession despite
taking many cost cutting measures.” Which limitation of the management process is indicated
here?

A. It fails to cope with sudden changes

B. It involves huge cost

C. It requires critical thinking

D. Need to construct multiple action plans

Q.3 State whether the given statement is True or False:

“The management had done effective forecast and critical thinking regarding allocation of
resources to reduce wastage.”

Q.4 “The management had taken utmost care regarding the possible outcome and timely review
of the Plans to achieve the set target during that hard time.” Which is the last step of the
Process mentioned here?
A. Implementation of plan

B. Timely execution of projects

C. Follow up

D. To prepare alternative course of action

Q46. Read the following text and answer the following questions on the basis of the same: Mr.
Vikas Goel is an H.R. Manager of “Sanduja Furniture Private Limited.” At the beginning of the
new year he anticipated that the company will need 30 new additional persons to fill up different
vacancies. He gave an advertisement in the newspaper inviting applications for filling up
different vacant posts. As many as 120 applications were received. The same were scrutinized.
Out of these, conditions of 15 applicants were not acceptable to the company. Letters of regret,
giving reasons, were sent to them. Remaining candidates were called for preliminary interview.
The candidates called for were asked to fill up blank application forms. Thereafter, they were
given four tests. The objective of the first test was to find out how much interest the applicant
takes in his work. The objective of the second test was to find out ‘specialization’ of the
applicant in any particular area. Third test aimed at making sure whether the applicant was
capable of learning through training or not. The purpose of the fourth test was to find out how
much capability a person has to mix-up with other persons, and whether he can influence other
persons and get influenced by them. (4)

Q.1 The purpose of the fourth test was to find out how much capability a person has to mix-up
with other persons, and whether he can influence other persons and get influenced by them.
Which tests is indicated in this situation.

A. Personality Test

B. Intelligent Tests

C. Aptitude Test

D. Trade Test

Q.2 At the beginning of the new year he anticipated that the company will need 30 new
additional persons to fill up different vacancies. Identify the first step of staffing.

A. Placement and Orientation

B. Training and Development

C. Recruitment

D. Estimating Man power Requirement

Q.3 From the given lines, ‘Out of these, conditions of 15 applicants were not acceptable to the
company.’ Letters of regret, giving reasons, were sent to them. Which aspect of staffing is
highlighted in the statement?
A. Recruitment

B. Selection

C. Training

D. Education

Q.4 The applicants were given four tests like intelligent test to interest test after filling up blank
application form. Identify which step of selection process was followed by the management.

A. Selection Decision

B. Selection Tests

C. Job Offer

D. Medical Examination

Q47. Read the following text and answer the following questions on the basis of the same: Mr.
Sunil Diali is a safety officer in a reputed PSU sector ECL. He supervises the workers towards
the predetermined goals of the organisation and directs how to eradicate unsafe practices of
inundation, fire breakouts, existence of inflammable gases etc. On one such instances there
was huge fire breakout in the underground mines and the workers morale was down and
demotivated because of several risk hazards. Mr. Diali observed the whole situation and
consulted with all his workers and constantly monitored, guided and inspired them to integrate
their efforts and accept the situation as a challenge and take adequate safety measures for fire
extinguish and subsidizing its effects. Thereby, production turnover was outstanding and
outperformed other subsidiaries. Mr. Diali was recognized with Bravery Award from CIL. (4)

Q.1 Mr. Diali worked towards predetermined goals of the organization. Which important function
of directing is addressed here?

A. Means of motivation

B. Initiates action

C. Facilitate change

D. Brings stability

Q.2 Mr. Diali consulted with all his workers; he listened to their opinions. Which form of
leadership is identified here?

A. Laissez-faire

B. Autocratic

C. Democratic
D. Free-rein

Q.3 Bravery award is form of non-financial incentive.

A. Status

B. Job security

C. Career Advancement

D. Employee recognition

Q.4 Under Maslow’s hierarchy need theory which need of Mr. Diali has been met through
respect and recognition among other employees?

A. Self – Actualization need

B. Safety and security needs

C. Esteem needs

D. Physiological needs.

Q48. Anjana chemicals is looking for qualified and talented people to apply for vacant jobs in the
organisation. With the passage of time the organisation has learned a lot with its experience. It
knows when it goes for final selection of candidates, if will have to
design different tests. They want to test the employees on the basis of their learning and
decision making ability. The company wants to ensure proper testing of the recruited
candidates. After this the candidates will be judged on the basis of in-depth formal conversation.
After the selection the candidates are placed and trained. Employees have to be trained on the
equipment they will be using but this training will take place away from the workplace.(4)

1. Which type of recruitment should the company depend upon?

2. Which type of test should be conducted done by the organisation to suit their need?
3. Which stage in the selection process is highlighted after the written test?
4. What type of training is given to the candidates?

Q49. Identify the following into formal and informal organisation:

1. Mountain cold storage has a well defined structure of authority relationships. This
structure is created after a lot of planning by the top level management.
2. Tanuj Drinks is an organisation which helps quench the thirst of people sitting on
roadside and parks on Sundays. This organisation has originated from Mountain cold
storage spontaneously.
3. An organisation holds its meeting according to the mood of the members. It has no set
pattern of behavior.
4. An organisation which is run in Central Delhi is known for its rigid nature.
5. Cricket Club is an organisation in which the authority of the members, constituting it, is
because of their positions in the management.
 6. Translife is an organisation in which only the managers are the leaders.

Part – B

Q50. Read the following text and answer the following questions on the basis of the same: Mr.
A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose
decided to expand his business by acquiring a Steel Factory. This required an investment of Rs.
60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who
advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper
debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial
institution as the cost of raising funds from financial institutions is low. Though this will increase
the financial risk but will also raise the return to equity shareholders. He also apprised him that
issue of debt will not dilute the control of equity shareholders. At the same time, the interest on
loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr.
Ghosh, Mr. Bose decided to raise funds from a financial institution. (4)

Q.1 Identify the concept of Financial Management as advised by Mr. Ghosh in the above
situation.

A) Capital Budgeting

B) Capital Structure

C) Dividend Decision

D) Working Capital Decision

Q.2 In the above case Mr. Ghosh suggested to raised more fund from debt. Higher debt-equity
ratio results in:

A) Lower financial risk

B) Higher degree of operating risk

C) Higher degree of financial risk

D) Higher Earning of profit.

Q.3 “Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%)”
The proportion of debt in the overall capital is called___________.

A) Working Capital
B) Financial Leverage

C) Total Assets

D) None of these

Q.4 Employe more of cheaper debt may enhance the EPS. Such practice is called:

A) Equity Trading

B) Financial Leverage

C) Investment Decision

D) Trading on Equity

Q51. Read the following text and answer the following questions on the basis of the same:
Sunrises Ltd. dealing in readymade garments, is planning to expand its business operations in
order to cater to international market. For this purpose, the company needs additional
Rs.80,00,000 for replacing machines with modern machinery of higher production capacity. It
involves committing the finance on a long-term basis. These decisions are very crucial for any
business since they affect its earning capacity in the long run. The company wishes to raise the
required funds by issuing debentures. The debt can be issued at an estimated cost of 10%. The
EBIT for the previous year of the company was Rs. 8,00,000 and total capital investment was
Rs. 1,00,00,000. Instead of issuing 10% Debenture the Company can issue Equity Shares for
raising the fund. The financial manager of the company would normally opt for a source which is
the cheapest. (4)

Q.1 What is the other name of long-term decision?

A) Capital Budgeting

B) Gross working capital

C) Financial management

D) Working Capital

Q.2 A decision for replacing machines with modern machinery of higher production capacity is
a:

A) Financing decision

B) Working capital decision

C) Investment decision

D) None of the above

Q.3 A decision for raising fund of Rs. 80,00,000 either from 10% Debenture or Equity Shares is
a:

A) Financing decision

B) Dividend decision

C) Investment decision

D) None of the above

Q.4 The financing decisions are affected by various factors. Which one of the following factors is
discussed in the above case?

Choose the correct option.

A) Cash Flow Position of the Company

B) Cost

C) Amount of Earnings

D) Taxation Policy

Q52. Read the following text and answer the following questions on the basis of the same: Piyali
purchased an ISI marked Heater from Bharti Appliances. She made Cash Payment. But failed
to get a Cash Memo. While making use of the heater she observed that it was not working
properly. She contacted the shopkeeper immediately and told him the problem. Shopkeeper
paid no heed to her complaint. Rather he marked that the good in question was not bought from
his shop. Piyali had no evidence of proving that the heater was purchased from his shop only.
She discussed the problem with her friend Sohini who advised her to approach Consumer
Forum and lodge the complaint. Piyali was convinced with the idea of lodging the complaint
against the shopkeeper but due to lack of cash memo it was difficult for her to proceed. (4)

Q.1 Identify the Right of the consumer as refer red to in the above paragraph.

A. Right to be Informed

B. Right to Safety

C. Right to be Heard

D. Right to Choose

Q.2 Identify the responsibility of the consumer refer red in the above case.

A. Quality Conscious

B. Must Obtain Cash Memo

C. Cautious Consumer

D. Ready to Lodge Complaint

Q.3 Piyali cannot lodge a complaint against the shopkeeper. Why?

A. She do not have the right

B. She was aware of the fact

C. She do not have the Cash Memo

D. She was happy with the product

Q.4 Under which Act Piyali can seek to protect her rights being a consumer?

A. Consumer Protection Act,1986

B. Consumer Protection Act,1968

C. The Indian Contract Act,1872

D. The competition Act, 2002

Q53. Golu bought an iron from ‘Sidhu Electricals.” She got an electric shock while using the
iron. Which consumer right has been violated here?

(a) Right to be heard

(b) Right to seek redressal

(c) Right to safety

(d) Right to choose.

Q54. Shubhangi purchased a car for Rs. 11 crores and found its engine defective. Despite
many complaints, the defect was not rectified. She filed a complaint to National Commission but
was not satisfied with its order. Suggest to her the appropriate authority where she can appeal.

(a) National Commission

(b) District Commission

(C) Supreme Court of India

(d) None of the above.

Q55. Mention the quality mark which a consumer should look for while purchasing jewelry.
(a) ISI Mark

(b) FSSAI Mark

(c) Eco Mark

(d) Hall Mark Match

Q56. Vijay purchased a flat for Rs. 150 lacs and found it different from what was agreed. He
wants his money back. Suggest him the appropriate authority to file his complaint in the three-
tier machinery under the Consumer Protection act, 2019.

(a) State commission

(b) District forum

(c) National Commission

(d) Supreme court

Q57. _______ is a link between savers & borrowers, helps to establish a link between savers &
investors

(a) Marketing

(b) Financial market

(c) Money market

(d) None of these

Q58. In which year the SEBI was established by the Government of India?

(a) 1980

(b) 1988

(c) 1992

(d) 1993

Q59. Avik is the finance manager of Mars Ltd. In the current year, the company earned high
profits. However, Avik thinks that it is better to declare a smaller dividend as he is unsure about
the earning potential of the company in the coming years. Avik’s choice of dividend decision is
based on which of the factor affects it?

(a) Amount of earnings

(b) Stability in earnings

(c) Stability of dividends

(d) Growth opportunities

Q60. The cheapest source of finance is:

(a) Debenture

(b) Equity share capital

(c) Preference shares

(d) Retained earnings

Q61. Higher debt-equity ratio results in:

(a) Lower financial risk

(b) Higher degree of operating risk

(c) Higher degree of financial risk

(d) Higher EPS

Q62. Financial planning arrives at :

(a) Minimizing external borrowing by resorting to equity issues

(b) Entering that the firm always have significantly more fund than required so that there is no
paucity of funds

(c) Ensuring that the firm faces neither a shortage nor a glut of unusable funds.

(d) Doing only what is possible with the funds that the firm has at its Disposal

Q63. Long-term investment decisions are also called as

(a) Working capital decisions

(b) Capital budgeting decisions

(c) Dividend decision

(d) Financing decisions

Q64. Debts financing is better than equity if

(a) Company has a strong cash flow

(b) Company has a weak cash flow

(c) Cash flow position does not matter

(d) None of the above

Q65. Harsh asked for a bottle of mineral water from a shopkeeper. The maximum retail price
printed on the bottle was Rs. 20 only whereas the shopkeeper was charging Rs. 35. In spite of
many arguments the shopkeeper was not ready to sell the bottle for less than Rs. 35. Harsh
was in need of it and had no option except to buy. Identify the ‘Right’ that Harsh can exercise.

(a) Right to choose

(b) Right to seek redressal

c) Right to be heard

(d) Right to information

Q66.Consumer has the right to file a complaint in case of dissatisfaction with goods or services
in the grievance cell. Which consumer right is it?

(a) Right to seek redressal

(b) Right to be heard

(c) Right to be informed

(d) None of the above.

Q67.A consumer is not certain satisfied with State Commission. In how many days we can
challenge the same and approach the National Commission?

(a) 20 days.

(b) 30 days

(c) 40 days.

(d) 50 days

Q68.Higher debt-equity ratio results in:

(a) Lower financial risk

(b) Higher degree of operating risk

(c) Higher degree of financial risk

(d) Higher EPS

Q69. Stock exchange is known as __________ market for securities.

(a) Primary market

(b) Secondary market

(c) Capital market

(d) None of the above

Q70.The settlement Cycle in NSE is:

(a) T+3

(b) T+2

(c) T+5

(d) T+1