BUSINESS STUDIES HOTS QUESTION (2024-25) CHAPTER:- 1-4

Q1. Assertion (A) An organization without proper management can still achieve its goals effectively

Reason (R) Management is responsible for organizing resources, setting objectives,

Coordinating the activities leading to achievement of goals.

a. Both A & R are true b. Both A & 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

Q2. Which of the following is a feature of Management as an Art?

a. It is based on Research b. It is based on study of cause & effect relationship

c. It is based on the spirit of scientific enquiry d. It is based on Practice & individual skills.

Q3. Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders including
shareholders, employees, customers and the government. The main objective of any organisation should be to utilize
human and material resources to the maximum possible advantage.” Identify the objectives of management
highlighted above.

(a) Organisational Objectives (c) Social Objectives (b) Personal Objectives (d) None of these

Q4. Alak Das a Professor of Management conducted a class on ‘Management principles’ explained to his students the
significance of management Principles. In the next class, the Professor asked his students to play roles of different
managers. He gave various situations to the students and ask them to think like managers and provide solutions to the
problems given. They should apply principles of management in their own personalized manner, depending upon his
creativity,The nature of management highlighted in the above case is:

(a) Management as Science (b) Management as Art (c) Management both Art & Science (d) Management as Profession

Q5.Assertion (A): Under formal organization, it is easier to fix responsibility.

Reason (R): Because mutual relationships are clearly defined.

(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 and Reason (R) is false.

(d) Assertion (A) is false and Reason (R) is true.

Q6. All the people have to pay tax on their income according to the rule of the tax system of the country. Everybody
wants to pay the minimum possible tax. To realise this objective, some people get their tax reduced by availing of the
concessions provided in the tax rules. But some others try to get their tax reduced through unacceptable means,
Through the medium of demonetization, the government has made an attempt to make the people have their tax
reduced through only acceptable methods, Which ‘feature of demonetization has been explained in the above event?

(a) Tax administration measure (b) Creating less cash economy

(c) Channelizing savings into the formal financial system. (d) Tax evasion control measure.
Q7. Vimal was a founder of a leading chain of Automobile shops dealing in high-end cars. He believed in retaining of all
decision-making authority with him. He wanted tight control over the entire business. Getting overburdened with work,
he decided to focus only on crucial decisions. He asked the vice president of his company to help him with routine
matters. This case study reflects a shift from one concept of organization to another which is:

(a) Delegation to decentralisation (c) Centralisation to decentralisation

(b) Decentralisation to delegation (d) Centralisation to delegation

Q8. Statement I: Birth and death rates, Population shifts, Consumption habits and composition of family are major
elements of social environment.

Statement II: “The extent and nature of government intervention in business” is one of the major elements of the
political environment.

(a) Statement I is correct and Statement II is not correct (b) Statement II is correct and Statement I is not correct

(c) Both the Statements I and II are correct (d) Both the Statements I and II are not correct

Q9. Statement 1: Controlling is forward looking function

Statement 2: Planning without controlling is meaningless.

Both the above statements are: (a) True (b) False (c) Statement 1 is true and statement 2 is false.

(d) Statement 1 is false and statement 2 is true.

Q10. The objective of time study is not to determine :

(a). Unnecessary movements to complete the job efficiency (b). The number of workers to be employed

(c). Frame suitable incentive schemes d. Determine labour costs

Q11. Assertion (A): The principles of management should be distinguished from techniques of management.

Reason (R ) : Techniques are guidelines to take decisions while practicing principles

(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 and Reason (R) is false

(d)Assertion (A) is false and Reason (R) is true

Q12. Assertion(A) : Unity of Command affects the entire organisation adversely.

Reason (R ): Unity of command prevents dual subordination

(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 and Reason (R) is false

(d)Assertion (A) is false and Reason (R) is true

Q13. Assertion (A): A tenet ofscientific management is cooperation and harmony between workers and managers.

Reason (R): Taylor believed in participative management.

In the context of the above two statements, which one of the following is correct?

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

(b)A and R are true and R is not the correct explanation of A

(c)A is true but R is false

(d)A is false but R is true

Q14. …………… is the process of working with and through others to effectively achieve organizational objectives by
efficiently using limited resources in a changing environment.

a. Planning b. Organizing c. Management d. Controlling

Q15. “In order to increase awareness of the company’s products in the market andcustomers, Mr. Rahul the CEO has
decided to advertise in all the leading News papers in every state of India for next four months”. Identify the type of
plan highlighted in the given statement. (1)

(a) Strategy (b) Policy (c) Procedure (d) Method

Q16. Identify the reason which makes management important in the light of the fact that it is generally seen that
managers in an organization try to reduce costs and increase productivity. (1)

(a) Management helps in achieving group goals. (b) Management creates a dynamic organization

(c) Management increases efficiency (d) Management helps in the development of society.

Q17. The government of India made an amendment in the Payment of Wages Act 1936, to allow employers of certain
industries to make payment through various electronic modes of payment. This is another milestone in the direction to
further push to cashless economy. Identify the dimension of business environment which does not relate to the above
mentioned case. (1)

(a) Technological environment (c) Political environment (b) Legal environment (d) Economic environment

Q18. Madhvi is working as a manager in ‘Taarik and Company’. She is involved in a problem related to a particular
product. She is unable to decide whether she should produce that product in her own company or she should buy it
from the market. She studied both the options deeply with the help of specialists. In order to maintain the company’s
impression on the minds of the customers, she decided to produce the product in the company itself. She is hopeful of
the complete success of this decision. Identify the stage of the ‘planning process’ on which Madhvi reached the final
decision. (1)

(a) Evaluating alternative courses (b) Selecting an alternative (c) Implementing the plan (d) Follow-up action
Q19. Which dimension of the business environment is highlighted in the given lines,” The governments all over the
world are becoming more and more cautious towards the environment.To ensure the same, numerous national
governments recently overturned an order prohibiting the use of plastic luggage, which is non-biodegradable.”?

(a) Political (b) Legal (c) Technological (d) Economic

Q20. TASTRY a retail food outlet began its business by offering the classic combo of hamburgers and fries. But over
time, their customers wanted healthier foods, so it responded and began offering healthy alternatives such as salads,
fruits, wraps, and oatmeal. If ‘TASTRY’ hadn’t responded, they may have lost customers that wanted to eat healthier
foods. The above case highlights one of the points related to the importance of the business environment and its
understanding by managers. Identify it.

(a) It helps in coping with rapid changes (b) It helps in improving performance

(c) Iidentify threats and early warning signals (d) identify opportunities and get the first- mover advantage

Q21. Which of the following statements is true regarding planning?

(a) Once plans are made to decide the future course of action, the management may not be in a position to change
them.

(b) Planning is a one-time process.

(c) Planning is required only at Top Level of Management as plans are made by Top Level of Management.

(d) Planning always leads to success.

Q22. Niket, a proofreader in Jai Publications, has been given a target of reading at least 50 pages per day. She has a
habit of doing things differently. While doing her work and idea struck her that a summary of a chapter in the form of a
map where all the concepts related to the chapter would be interlinked, should be given in starting of each chapter. It
will give students gist of the chapter as well as provide a competitive edge over the other publishers. But instead of
appreciating her idea, her boss scolded her and asked to complete the work as per prescribed format. Out of the
following, identify the limitation of planning stated in the above paragraph.

(a) planning reduces creativity (b) planning involves huge cost

(c) planning is a time-consuming process (d) planning does not work in dynamic environment

Q23. Which of the following is not a standing plan

(a) Policy (b) Procedure (c) Programme (d) Rule

Q24. Principles of management equip the managers to foresee the cause and effect relationships of their decisions and
actions so that the wastages associated with a trial and error approach can be overcome. Identify the point of
significance of principles of management highlighted here.

a. Management training, education and research b. Fulfilling social responsibility

c. Optimum utilisation of resources and effective administration d. Provide managers with useful insight into realty

Q25. Statement- (i) Delegation of authority is inevitable and decentralisation is voluntary.

Statement- (ii) Scope of delegation of authority is limited and the scope of decentralisation is broad.
Both the above statements are:

(a) True (b) False

(c) Statement(i) is True and Statement (ii) is False (d) Statement(i) is False and Statement (ii )is True

Q26. Which of the following statement is false with respect to planning?

a) It is one of the basic funcƟons of management. b) It requires taking decision.

c) Planning is connected with creaƟvity and innovaƟon. d) None of the above.

Q27. R-Ox Ltd. wants to increase their market share by 4.5 % in next two years. It spent a lot of money to hire
specialized people for framing their plans, collecƟng important facts about environment who took lot of Ɵme to frame
plans for the company. The compeƟƟon has started increasing, and it is not able to beat its compeƟtors because it
already spent a huge amount. The plan failed and the company suffered a huge loss. IdenƟfy the limitaƟon of planning
stated in the given case.

a) Planning involves huge cost. b) Planning may not work in a dynamic environment.

c) Planning is a Ɵme consuming process. d) All of the above.

Q28. A company is manufacturing garments. The manager wants to increase profits by purchasing new high speed
machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that “using
waste material” is the best soluƟon for him. IdenƟfy the funcƟon of management involved.

a) DirecƟng b) Planning c) Organising d) Controlling

Q29. “An innovative course may be adopted by involving more people and sharing their ideas.” IdenƟfy the step of
planning function of management highlighted above.

a) Setting objectives b) Developing premises c) IdenƟfying alternaƟve course of acƟon.d)EvaluaƟng alternaƟve courses.

Q30. ‘Ronak Cycles’ was in the business of manufacturing racing cycles and had a monopoly in the market. The business
was doing well and the company was meeƟng consistently meeƟng its objecƟves of 10% increase in sales every year.
Encouraged with the good track record, the managing director of the company kept an ambiƟous target of 15%
increase in sales for the next year. The same year, two companies also entered the market and because of this the
company was not able to meet its target. IdenƟfy the limitaƟon of one of the funcƟons of management because of
which the company was not able to achieve the target.

a) Planning may be rigid b) Planning may not work in dynamic environment.

c) Planning does not guarantee success. d) None of the above.

Q31. ASSERTION (A): Through planning, the uncertain events or changes can be anƟcipated and eliminated.

REASON (R) : planning reduces the risk of uncertainty.

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

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

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

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

Q32. ______________________ are formalised and prescribed way of accomplishing repetitive and routine job.

a) Budget b) Method c) Objectives d)Strategy

Q33. Mrs. Sarla is working as the General Manager of Green Hotels Ltd. Mrs. Sarla observed that government was
taking a special interest in the tourism industry as this sector is an important source of foreign exchange an
employment promotion. Based on this news, the company decided to set- up hotels at several tourist places. Green
Hotels Ltd.established 50 hotels before other companies considered this issue. Very soon, this brand Green Hotels Ltd.
became well known in the market. Identify the importance of business environment described here.

(A) It enables the firm to identify and getting the first mover advantage

(B) It helps the firm to identify threats and ear warning signals

(C) It helps in tapping useful resources

(D) It helps in improving performance

Q34. Over the past five years, there has been an exponential increase in the number of people practicing healthier
lifestyles in India. Doctors and nutritionists are advising people to reduce the daily intake of soft drinks as they are
aerated, which can lead to obesity and other health issues. In order to cope up with the setback in the demand from
the consumers, "NECTOR” a soft drink giant, decided to introduce a tea brand named 'HOLY-TEA'

Identify the feature of management reflected in the above paragraph.

(A) Management is intangible (B) Management is a dynamic function

(C) Management is a group activity (D) Management is multidimensional

Q35. Identify the type of plans discussed in the following cases:

a) Mr. S.K.Kumar , financial manager of the company has prepared the annual statement of proposed advertisement
expenditure to be prepared in Annual General Meeting for financial year 2015-16.
b) Hindustan Unilever Ltd. started a promotional offer of one KG of Rin detergent free on purchase of Five KG of Rin
detergent to increase the sale.
c) “We do not supply to our clients on credit”.
d) The sales manager of XYZ Ltd. gave its sales executives, the directive that they would sell the goods on credit of two
months but told them to strictly inform the customer that I they will not make the payment within two months they
will have to pay an interest of 12% per annum on amount due.

Q36. Identify the importance of business environment:

A. "By understanding and analysis the business environment we can decide the future course of actions."
B. Suitable actions not only improve the present performance but also continue to succeed in the market for a
longer period.
Q37. Identify the elements of business environment:-
A. Rise in the GDP
B. The nature of relationship of our county with foreign countries
C. Attitude towards product innovations, lifestyles and consumer preferences.
D. Decisions rendered by various commissions and agencies at every level of the government.