CHAPTER -1

NATURE AND SIGNIFICANCE OF MANAGEMENT

I Choose and write the correct answer:

1. Which is not a function of Management?

a. Planning b. Staffing

c. Co-operating d. Controlling

2. The following is not an objective of Management

a. Earning Profits b. Growth of the Organisation

c. Providing employment d. Policy formulation

3. Policy formulation is the function of

a. Top level management b. Middle level management

c. Operational Management d. All of the above

4. Successful Management ensures that

a. Goals are achieved with least cost b. Timely achievement of goals

c. Both of the above d. None of the above

5. Management as a profession is
a. Well defined body of knowledge b. Restricted entry

c. Ethical code of conduct d. All of the above

6. Hemangi enterprises limited is planning to increase its sales by 30% in the next quarter. Identify the
feature of management being high lightened in the given statement.
a. Management is all pervasive b. Management is goal-oriented process

c. Management is a continuous process d. All the above

7. Coordination is
a. Function of Management b. The essence of Management

c. An objective of Management d. None of the above

8. refers to doing the task correctly and with minimum cost

a. Effectiveness b. Co-ordination

c. Process d. Efficiency

9. Management is considered as
a. Art b. Science
c. Both Art and Science d. None of the above

10. Providing facilities of Schools, creches and Hospitals is the objective of Management.
a. Social Objective b. Organizational Objective

c. Personal Objective d. None of the objective

II Fill in the blanks by choosing appropriate answers from those given in the brackets.

(Planning, Link, Unity of action, Achieving goals, Top level)

1. Management is the process of getting things done with the aim of Achieving goals,
2. Planning is considered as the base for all the other managerial functions.
3. Top level Management consists of seniormost executives of the organisation.
4. Middle level Management act as a Link between top level management and lower-level management.
5. Co-ordination ensures Unity of action

III Match the following:

A B
a. Effectiveness i. Doing the right task
b. Organisation Objective ii. Survival of Business
c. Co-ordination iii. Integrates group efforts
d. Social Objective iv. Environment friendly methods
e. Supervisory level v. Foremen

IV Answer the following questions in one word or one sentence each:

1. What is efficiency?
Ans: Efficiency means doing the task correctly with minimum cost and minimum resources.

2. What is effectiveness concerned with?

Ans: Effectiveness in management is concerned with doing the right task, completing with activities and
achieving goals. OR In other words, it concerned with the end result.

3. State any one dimension of management.

Ans: Management of work, Management of people, Management of operations.

4. Give an example of Top-level Management.

Ans: Chairman, President, Chief executive officer, Managing Director, Chief Finance Officer,Etc

5. Give an example of Middle level Management.

Ans: Purchase manager, Production manager, Sales manager, Marketing manager etc.

6. State any one social objective of management.

Ans: Protecting the environment by using environmental friendly method of Production.

7. State any one personal objective of management.

Ans: Satisfying the financial needs of the employees by giving them fair salaries, incentives, and other financial
benefits.

8. Mention any one function of management.

Ans: Planning

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.

1. Define Management.
“Management is the process of working with and through others to effectively achieve the organizational
objectives by efficiently using limited resources in the changing environment.” by Kreitner.
 OR
According to Harold Koontz and Heinz Weihrich “Management is the process of designing and maintaining an
environment in which individuals working together in groups, to efficiently accomplish selected aims”

2. Mention any two levels of Management.

a. Top level management b. Middle level management

3. State any two objectives of Management.

Ans: organisational objectives, social objectives

4. Give any two organizational objectives of Management.

Ans: 1. Survival 2. Profit 3. Growth

5. State any two importance of management.

Ans: 1. Management helps in achieving group goals 2. Management increases efficiency

6. Define Co- ordination.

Coordination is the process whereby an executive develops an orderly pattern of group efforts among his
subordinates and secures unity of action in pursuit of common purpose. By McFarland

OR
E.F.L Brech “Coordination is balancing and keeping together the team by ensuring suitable allocation of tasks
to the various members and seeing that the tasks are performed with harmony among the members themselves.

Management is a three - tier activity. Show the levels of Management with a Neat diagram. Explain
them with examples.

Meaning of Management: Management is the process of getting things done with aim achieving goals
effectively and efficiently. Levels of Management are:

1. Top level management:

Top level management they are superiors to another member of the organization. They determine overall
organisational goals and strategies for their achievements. They also formulate policies and coordinate the
activities of different departments.
2. Middle level Management:
Middle Management generally consists of the heads of the functional
departments. E,g. Production manager, purchase manager and so on. Middle management is the link between
top level and lower-level managers. They are subordinate to top managers and superiors to the lower-level
managers, they responsible for implementing and controlling plans and strategies developed by top
management.

3. Operational level management;

It consists of supervisor, foreman, etc. Their main work is to get the work done by workers and employees.
Lower-level managers act as a link between the middle level managers and the workers.
 CHAPTER -2
PRINCIPLES OF MANAGEMENT
I Choose and write the correct answer:

1. Principles of management are not

a. Universal b. Flexible
c. Absolute d. Behavioural
2. How are principles of management formed?
a. In a Laboratory b. By experience of Managers
c. Experiences of Customers d. By propagation of social scientists
3. The principles of management are significant because of
a. Increase in efficiency b. Initiative
c. Optimum utilisation of resources d. Adaptation to changing technology
4. Henri Fayol was a
a. Social scientist b. Mining Engineer
c. Accountant d. Production engineer
5. Which of the following statement best describes the principle of ‘Division of Work’.
a. Work should be divided into small task b. Labour should be divided.
c. Resources should be divided among jobs. d. It leads to specialisation.

6. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work
is described by this sentence under functional foremanship?
a. Instruction card clerk b. Repair boss
c. Gang boss d. Speed boss
7. Which of the following is NOT a Principle of Management given by Taylor?
a. Science, not rule of Thumb b. Functional foremanship
c. Maximum not restricted output d. Harmony not discord
8. Management should find ’One best way’ to perform a task. Which technique of Scientific management
is defined in the sentence?
a. Time study b. Motion study
c. Fatigue study d. Method study
9. Which of the following statements best describes ‘Mental Revolution’?
a. It implies change of attitude
b. The management and workers should not play the game of Upmanship
c. Both management and workers require each other
d. Workers should be paid more.
10. Basic aim of Functional foremanship is
a. Not to provide free time to workers
b. Not to divide the work
c. To separate planning functions from execution functions
d. To separate Top level management from Chief Executive Officer
II Fill in the blanks by choosing appropriate answers from those given in the brackets.
(Henri Fayol, Order, Fatigue Study, F W Taylor, Mental Revolution, Just in Time.)

1. F W Taylor, is known as Father of Scientific Management.

2. Just in Time is the new technique of management developed on the basis of Principles of management.
3. The amount and frequency of rest intervals in completing a task is determined by Fatigue Study,
4. Complete change in the attitude of workers and management towards each other is called Mental Revolution
5. Henri Fayol is called Father of General Management
6. Order Principle states that there is a place for everything and everything in its place.

III Match the following:

A B
a. F W Taylor i. Piece wage System
b. Time Study ii Standard time for a well-defined job
c. Repair Boss iii. Functional foremanship
d. Kiran Mazumdar Shaw iv. Biocon
e. Unity of Direction v. One Head One Plan
f. Espirit De Corps vi. Team spirit

IV Answer the following questions in one word or one sentence each:

1. What is Standardization according to Taylor?
Ans: Standardizations refer to the process of setting standards for every business activity such as standard raw
material, standard time standard product, etc.

2. What is the aim of simplification according to Taylor?

Ans: Simplification aims at eliminating unnecessary diversity of products which results in saving
of cost.

3. Who advocated the separation of planning and execution of functions in any organization?
Ans: F.W. Taylor

4. Identify the technique of scientific management which is an extension of principle of division of work
and specialisation to the shop floor.
Ans: Functional foremanship.

5. State the role of ‘Inspector’ in functional foremanship.

Ans: Check the quality of work.

6. State the objective of Method Study.

The objective of method study is to find out one best way of doing the job

7. How many principles are given by Henri Fayol?

Ans: 14
8. Which management principle of Fayol advocates that there should be only one boss for each individual
employee?
Ans: Unity of command.

9. When is gang plank used?

Ans: Gang plank can be used in case of emergency.

10. ‘Workers should be encouraged to develop and carry out their plans for improvement’. Identify the
particular principle of management by Henri Fayol.
Ans: Initiative.

11. Which principle of management suggest the concept of replacing ‘I’ with ‘WE’?
Ans: Esprit De corps.

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks

1. What do you mean by Principles of Management?

Principles of management are the statements of basic truths that provide general guidelines
to the managers for decision making and actions.

2. What is Scientific Management?

Scientific Management refers to the use of scientific and standardised tools, methods and trained workers in all
organisational activities in order to increase the production with minimum cost and minimum wastage.
OR
According to Fredrick Winslow Taylor, “Scientific Management means knowing exactly what you
want men to do and seeing that they do it in the best and the cheapest way.

3. What is Motion Study?

Motion study refers to the study of movements like lifting and putting objects, sitting and changing positions,
etc., which are undertaken while doing a job.

4. State two differences between unity of command and unity of direction.

Basis Unity of Command Unity of Direction

1.Aim Prevent dual subordination Preventing overlapping of activities

2.Affect It affects an individual employee It affects the entire organizations.

5. What is scalar chain?

Scalar chain is the formal lines of authority from the highest rank in the organization.
Scalar chain principle says that every information should pass from top level to bottom level in the scalar chain.

6. What is gang plank?

Gang plank is a shorter route in scalar chain which allows employees at the same level to communicate with each
other directly to avoid delay in communication. Gang plank can be used only in case of emergency.
 CHAPTER -3
BUSINESS ENVIRONMENT

I Choose and write the correct answer

1. Which of the following does not characterize the business environment?
a. Uncertainty b. Relativity
c. Employees d. Complexity
2. Which of the following best indicates the importance of business environment?
a. Identification b. Improvement in performance
c. Coping with rapid changes d. All of them
3. Which of the following is an example of social environment?
a. Money supply in the economy b. Consumer Protection Act
c. The Constitution of the country d. Composition of family
4. Liberalisation means
a. Integration among economies b. Reduced govt. controls and restrictions
c. Policy of planned disinvestments d. None of the above
5. Which of the following is feature of demonetization?
a. Tax Administration measure b. Channelizing savings into the formal financial system
c. Development of less cash economy d. All of the above
6. Between June 2023 and June 2024, a report say the exports of India have increased by 2.47% while
imports have increased by 5.04%. Identify the related dimensions of the business environment.
a. social dimension b. Technological dimension
c. Legal dimension d. Economic dimension
7. Identify the related dimensions of the business environment which led to the mandatory usage of
masks and PPE kits during COVID - 19
a. social dimension b. Legal dimension
c. Technological dimension d. Political dimension
8. The Government of India has allowed foreign direct investment in insurance sector. What economic
reform is the reason of this change in government’s policy?
a. Globalisation b. Liberalisation
c. Privatisation d. Demonetisation
9. In today’s world, Internet has connected people for doing business without any limitations in
boundaries. It has allowed for the free flow of goods and services which are reliable and at a reasonable
price with speed. Identify the concept of being described in the above lines:
a. Globalisation b. Liberalisation
c. Privatisation d. Demonetisation
10. Which one of the following is a part of economic environment?
a. Public debt b. Lifestyle of people
c. Technological changes d. Level of education.
11. The aim of demonetisation was to
a. Curb corruption
b. Curb accumulation of black money
c. Counterfeiting the use of high denomination notes for illegal activities
d. All of the above
II Fill in the blanks by choosing appropriate answers from those given in the brackets.
(Scientific, Privatisation, Tax, dynamic, Political environment, uncertain.)
1. Business Environment is dynamic in nature.
2. Government rules and regulations relevant to business are included in political environment of business.
3. Technological environment includes forces relating to Scientific improvements and innovations.
4. It is very difficult to predict the future happenings because business environment is largely uncertain.
5. Demonetisation is viewed as a tax administration measure.
6. Privatisation refers to giving more resources in the hands of private sector.

III Match the following:

A B
a. Totality of external forces i. Characteristics of Business Environment
b. Disinvestments ii. Sale of shares in public sector to private individuals
c. Dimensions of Business Environment iii. Economic, technological, social, legal and political
d. Demonetisation iv. November 8, 2016
e. Globalisation v. Integrating the economy with economies of other countries

IV Answer the following questions in one word or one sentence each:

1. What is Liberalisation?
Ans: Liberalising the Indian business and industry from all unnecessary controls and restrictions is called
liberalization.

2. What is Globalisation?
Ans: Globalisation means the integration of the various economies of the world leading towards the
emergence of a global economy. OR
Integrating the economy of a country with the world economy.
3. What is Privatisation?
Ans: Privatization is the process of transfer of ownership and management of public sector enterprises to
private sector through disinvestment.

4. Expand BIFR.
Board of Industrial and Financial Reconstruction

5. Expand FIPB
Ans: Foreign Investment Promotion Board

6. Expand LPG.
Ans: Liberalization, Privatization and Globalization.

7. Mention any one denominations of Notes which was demonetized by Govt. of India in the year 2016.
Ans: Rs. 500 and Rs. 1000.
 CHAPTER -4
PLANNING
I Choose and write the correct answer:

1. Name the function of management which involves setting objectives

a. Directing b. Planning
c. Staffing d. Organising
2. Which of the following is a type of standing plan?
a. Budget b. Project
c. Programmes d. Rule
3. Which of the following is not a type of plan?
a. Objectives b. Co-ordination
c. Budget d. Rule
4. First step in the planning process is
a. Implementing the plan b. Evaluate alternative courses
c. Setting an objectives d. None of the above
5. Which of the following is an example of a single use plan?
a. Policy b. Procedure
c. Budget d. Method
6. Name the type of budget which determines the net cash position
a. Purchase budget b. Sales budget
c. Cash budget d. Production budget

II Fill in the blanks by choosing appropriate answers from those given in the brackets
(Planning, Single use, Dynamic, Standing plan, Budget, Rule, Primary)

1. Budget is a statement of expected results expressed in numerical terms.

2. Planning is deciding in advance what to do and how to do.
3. Planning is a Primary function of management.
4. Single use plan is developed for a one time event.
5. Standing plan is likely to be repeated in future.
6. Rule are specific statement that inform what is to be done.
7. Planning may not work in a Dynamic environment.

III Match the following:

A B
a. Planning i. Primary function of management
b. Implementing the plan ii. Putting plan into action
c. Strategy iii. Comprehensive plan
d. Policies iv. General statement
e. Planning premises v. Assumption about the future
IV Answer the following questions in one word or one sentence each:
1. Which function of management involves decision making?
Ans: Planning.

2. What is Planning?
Ans: Planning is deciding in advance what to do, and how to do.

3. Give an example for a standing plan.

Ans: Methods, Rules

4. Give an example for a single use plan.

Ans: Budgets, Programmes.

5. Give an example for policy in planning.

Ans: Recruitment policy, pricing policy, purchase policy, sales policy etc.

6. “No smoking in office” is an example of which type of plan?

Ans: Rule

7. Name the plan which specifies a detailed step by step presentation of a job.
Ans: Procedure

8. Name the type of plan in which expected results are expressed in numerical terms.
Ans: Budget

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.
1. Define Planning.

2. State the first two steps in planning.

a. Setting objectives b. Developing planning premises.

3. Give the meaning of planning premises.

Planning premises are the assumptions about the future conditions and events like trends in population, changes
in political and economic environment, variations in production cost and prices, government and legal
regulations etc.

4. Mention any two standing plans.

Ans: Methods, Rules

5. Give any two examples for policy in planning.

Ans: Recruitment policy, pricing policy, purchase policy, sales policy etc.
6. What are the Rules? Give an example
Rules are specific statements that inform what is to be done. Example: Wearing I D card in the organization,
No smoking in office

7. What is “Budget”?
Budget is a statement of expected results expressed in numerical terms for a definite period of time.
Example: Cash budget, Sales budget, Production budget
 CHAPTER -5
ORGANISING

I Choose and write the correct answer:

1. The form of organization known for giving rise to rumors is called

a. Centralized organization b. Decentralized organization
c. Formal organization d. Informal organization

2. Mohan was given a task by his superior to prepare a plan in one week. He asked two of his
subordinates to work on two aspects of his task. One of the subordinate was sick and could not
complete his work. Who is accountable for his task?
a. Mohan is accountable b. Mohan’s subordinate is accountable
c. Mohan’s superior is accountable d. None of them

3. Grouping of activities on the basis of functions is a part of

a. Centralized organization b. Decentralized organization
c. Divisional organization d. Functional organization

4. Which of the following is not an element of delegation?

a. Accountability b. Authority
c. Responsibility d. Informal organization

5. Under this type of organizational structure manpower is grouped on the basis of different
products manufactured
a. Divisional structure b. Functional structure
c. Network structure d. Matrix structure

II Fill in the blanks by choosing appropriate answers from those given in the brackets
(Formal, Responsibilities, Organizing, Delegation)

1. Organizing is the process of identifying and grouping the activities of the enterprise and establishing
authority relationships among them
2. Formal organization specifies the relationships among various job positions and the nature of their inter-
relationship.
3. Organization in which decision making authorities lie with the top management are termed as Centralization
4. Delegation refers to the downward transfer of authority from a superior to a subordinate.
5. Responsibilities is the obligation of a subordinate to properly perform the assigned duty.

III Match the following:

A B
a. Decentralization i. Delegation of authority throughout all the levels of organization
b. Authority ii. Right to command
c. Informal Organization iii. Arises as a result of social interaction
d. Accountability iv. Answerable for the final outcome
e. Scalar Chain v. Formal Organization

IV Answer the following questions in one word or one sentence each:

1. Which management function translates the plans into action?

Ans: Organizing
 2. State any one type of organization structure
Ans: Functional structure

3. What is span of management?

Span of management refers to the number of subordinates that can be effectively managed by a
superior.

4. Give the meaning of authority.

Authority is the power to command employees and instruct them to perform a job. OR Authority is the right to
give orders and obtain obedience.
5. Can accountability be delegated?
No. Accountability cannot be delegated

6. Name the activity which increases the importance of the role of subordinates.
Ans: Delegation

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.

1. Define Organising.
Organizing is the process of defining and grouping the activities of the enterprise and establishing authority
relationships among them. “By Theo Haimman

2. State any two steps in the process of organising.

1. Identification and Division of Work 2. Departmentalization
3. What is organizational structure?
It is the framework within which managerial and operating tasks are performed in an enterprise.

4. State any two differences between Functional and Divisional organization.

Functional Structure Divisional Structure
Formation is based on functions Formation is based on product lines and is supported by functions.
It is difficult to fix responsibility for a department. Easy to fix responsibility for performance.

5. Why does informal organization exist within the framework of formal

organization? Give any two reasons for the emergence of informal organization.
Informal organisation emerges from within the formal organisation when people interact beyond their officially
defined roles. Two reasons for the emergence of informal organization.
1. Social Interaction and Emotional Needs
2. Communication and Information Sharing

6. State any two elements of Delegation.

Ans: Authority and Responsibility

7. What is Responsibility?
Responsibility is the obligation of a subordinate to perform the assigned duty.

8. What is Accountability?
Accountability means being answerable for the final results.

9. State any two difference between delegation and decentralization.

Basis Delegation Decentralization.

1.Status It is a process that followed to share It is the result of the policy decision of the top
tasks. management.
2. Scope It is a narrow scope It is wide scope.
10. State any two difference between Centralization and Decentralization.

SL.No Centralization Decentralization

1 There is no delegation of authority There is a delegation of authority
2. Found in small organizations. Found in case of large organizations.

11. A manager is of the view that he is not responsible for the quality of work that he has delegated to his
subordinate. Do you agree with this viewpoint? Explain.
I do not agree with the viewpoint of the manager, as authority can be delegated, but responsibility cannot be
delegated by a manager. The manager remains responsible to his own superior for the tasks, which he may have
assigned to his subordinate.

Reference purpose (The manager cannot escape his responsibility for any mistake on the part of his
subordinates. The process of delegation does not relieve the manager of his own responsibility.)
 CHAPTER -6
STAFFING

I Choose and write the correct answer:

1. Promotion of employees results in

a. Increase in pay b. Increase in responsibility
c. Increase in job satisfaction d. All the above
2. Which of the following is off-the-job training method
a. Coaching b. Vestibule training
c. Internship d. Job rotation
3. Which of the following is on the job training method
a. Job rotation b. Films
c. Computer modelling d. Vestibule training
4. Which of the following is an Internal source of recruitment
a. Advertisement b. Campus recruitment
c. Transfer d. Employment exchange
5. Horizontal movement of employees within the organisation is called
a. Promotion b. Transfer
c. Campus recruitment d. Demotion
6. The test which is helpful in assessing the Individual capacity for learning new skills
a. Aptitude test b. Personality test
c. Interest test d. Intelligence test

II Fill in the blanks by choosing appropriate answers from those given in the brackets.
(Orientation, Job Rotation, External, Development, Selection)

1. Selection is the process of choosing from among the prospective job candidates.
2. Development refers to the learning opportunities designed to help employees grow.
3. Orientation is the process of introducing the selected employee to other employees.
4. Shifting of trainees from one department to another is known as Job Rotation
5. External Source of recruitment helps to bring in new blood in the organization

III Match the following:

A B
a. Estimating Manpower requirement i. 1st step in staffing process
b. Preliminary scrutiny ii. Selection process
c. Campus recruitment iii. External sources
d. Transfer iv. Internal sources
e. Coaching v. On the job training
f. Vestibule training vi. Off the job training

IV Answer the following questions in one word or one sentence each:

1. What do you mean by recruitment?
Recruitment may be defined as the process of searching for prospective employees and stimulating them to apply
for jobs in the organization.

2. Give the meaning of Transfer.

Transfer means shifting of an employee from one job to another, one branch to another or one shift to another.

3. What is promotion?
Promotion leads to shifting an employee to a higher position, carrying higher responsibilities, facilities, status
and pay.
4. State any one type of selection test.
Ans: Interest test

5. Name On-the-job training method used to train plumbers, electricians and iron workers.
Ans: Apprenticeship programmes.

6. Name Off-the-job training method used to train employees before handling sophisticated machinery
and equipment.
Ans: Vestibule training.

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.

1. What is staffing?
Staffing has been described as the managerial function of filling and keeping filled the positions in the
organisation structure. Staffing is a process of recruiting right people for the right job.

2. Write any two importance of staffing.

1. Staffing function contributes for higher performance by putting right person on the right job.
2. It ensures continuous survival and growth of the enterprise.

3. Give the meaning of placement.

Placement refers to the employee occupying the position or post for which the person has been selected.

4. What is orientation in the staffing process?

Introducing the selected employee to other employees and familiarizing him with the rules, regulations and
policies of the organization.

5. Name any two methods of recruitment suitable to recruit technical, professional and managerial
personnel.
Ans: 1. Placement Agencies and Management Consultants 2. Campus Recruitment:

6. Name the internal sources of recruitment.

1. Transfer 2. Promotion

7. Give the meaning of selection.

It is the process of choosing and appointing the right candidates for right job in an organization by conducting
various exams, tests and interviews.

8. What is Training?
Training is an act of increasing the knowledge and technical skills of an employee for doing a particular job
efficiently.

9. Bring out any two differences between training and development.

Training Development
It is a process of increasing knowledge and skills It is a process of learning and growth.
It is a job-oriented process. It is a career oriented process.

10. What do you mean by Job rotation?

Shifting the trainee from one department to another or from one job to another so that he may learn the working
of various departments or jobs
.
11. The manager of the company designed learning opportunities to improve skills and abilities of
employees and help in the growth of individuals in all respects. Identify the two concepts involved in it.
Ans: Training and Development
 CHAPTER -7
DIRECTING

I Choose and write the correct answer:

1. Which one of the following is not an element of direction?

a. Motivation b. Communication
c. Delegation d. Supervision
2. The motivation theory which classifies needs in hierarchical order is developed by
a. Fred Luthans b. Scott
c. Abraham Maslow d. Peter.F.Druker
3. Which of the following is a financial Incentive?
a. Promotion b. Stock Incentive
c. Job Security d. Employee Participation
4. Which of the following is not an Element of Communication process?
a. Decoding b. Communication
c. Channel d. Receiver
5. Grapevine is
a. Formal Communication b. Barrier to Communication
c. Lateral Communication d. Informal Communication
6. Status comes under the following type of barriers
a. Semantic barrier b. Organisational barrier
c. Non-Semantic barrier d. Psychological barrier

7. The software company promoted by Narayana Murthy is

a. Wipro b. Infosys
c. Satyam d. HCL
8. The highest-level need in the need Hierarchy of Abraham Maslow.
a. Safety need b. Belongingness need
c. Self-actualization need d. Prestige need
9. The process of converting the message into communication symbols is known as
a. Media b. Encoding
c. Feedback d. Decoding
10. The communication network in which all subordinates under a supervisor communicate through
supervisor only is
a. Single Chain b. Inverted V
c. Wheel d. Free Flow
11. On the successful completion of two years in a company, Kailash received a letter confirming his job as a
permanent employee. Identify the need of Kailash being fulfilled as per Maslow’s need Hierarchy Theory.
a. Esteem Needs b. Self Actualisation Needs
c. Basic Physiological Needs d. Security Needs.

12. If there is no reward or appreciation for a good suggestion, the subordinates may not be willing to offer
useful suggestion Identify the above type of barrier to communication.
a. Unwillingness to communicateb. b.Lack of proper incentive
c. Distrustd. d.Lack of confidence of superior on subordinate
II Fill in the blanks by choosing appropriate answers from those given in the brackets.
[Motivation, Wheel Network, Instructions, Motivators/Incentives, Motivation, Bonus, Motive,]
1. Directing means giving Instructions to do the work
2. Motive is an inner state that activates and directs behaviour towards goal.
3. Motivation is the process of stimulating people to action to accomplish desired goals.
4. Motivators/Incentives is a technique used to motivate people in an organisation.
5. The communication network in which all subordinates under a supervisor communicate through supervisor only is
called Wheel Network
6. Bonus is an incentive offered over and above the wages /salary to the employees.
7. Supervision + Motivation +Leadership+ Communication = Directing.

III Match the following:

A B
a. Unity of command i. Principle of directing
b. Pay and allowance ii. Financial incentives
c. Non-financial incentives iii. Job enrichment
d. Issue of orders and Instructions iv. Supervision
e. Need Hierarchy Theory v. Abraham Maslow
f. Basic physiological needs vi. Food, shelter, clothing
g. Hindrance to communication vii. Lack of attention
h. Faulty translations viii. Semantic barriers

IV Answer the following questions in one word or one sentence each:

1. What is Directing?
Directing refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation
to achieve its objectives.

2. State any one element of Directing.

Ans: Motivation, Communication.

3. State any one assumption of Maslow’s Hierarchical Theory of Needs.

Ans: People’s behaviour is based on their needs.

4. State any one Leadership style.

Ans: Autocratic style of leadership.

5. State any one type of Grapevine Network.

Ans: Gossip network, Cluster network.

6. Is it possible to motivate the employees, if their needs are fulfilled completely?

Ans: No

7. Name the kind of monetary incentive in which employees are offered company’s share at a set price which
is lower than market price.
Ans: Co-partnership/ Stock option

8. A company displays on the notice board or in the company’s newsletter about the achievement of employees.
Name the kind of non-monetary incentive given by the company.
Ans: Employee Recognition programmes

9. Communication originally directed in English has been poorly translated in Kannada. Name the type of
barrier to effective communication.
Ans: Faulty translations
10. State the highest level of need in the Maslow’s need Hierarchy Theory?
Ans: Self-Actualization Needs

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.

1. Give the meaning of Supervision.

Supervision means overseeing what is being done by subordinates and giving instructions to ensure optimum
utilisation of resources and achievement of work targets.

2. What do you understand by motivation?

Motivation is the process of stimulating people to action to accomplish desired goals.

3. What is Leadership?
Leadership is the process of influencing the behaviour of people by making them strive voluntarily towards
achievement of organisational goals.

4. What is Communication?
Exchange of information between two or more persons to reach common understanding.

5. What is Formal Communication?

The communication which flows through official channels designed in the organisation chart is called as formal
organisation. This communication may take place between superior and subordinate.

6. What is Grapevine Communication?

Communication that takes place without following the formal lines of communication is said to be informal
communication. Social interactions, friendly talks, and non official matters are discussed in the informal
communication.

7. Classify the following motivations into positive and negative motivation.

(a) Threatening. Ans: Negative Motivation
(b) Promotion.Ans. Positive Motivation
 CHAPTER-8
CONTROLLING

I Choose and write the correct answer:

1.An efficient Control System helps to

a. Accomplish Organisational objectives b. Boosts employee Moral objectives
c. Judge accuracy of standards d. All the above
2. Controlling function of an organisation is
a. Forward looking b. Backward looking
c. Both forward- and Backward-looking d. None of the above
3. Controlling function is performed by Manager at
a. Top level b. Middle level
c. Lower-level d. All the levels
4. Standards can be set in terms
a. Quantitative b. Qualitative
c. Both Quantitative and Qualitative d. None of the above.
5. What should the ‘Critical Point’ for a manager while controlling as controlling at each and every step
is not possible.
a. Special area b. Key result area
c. Normal area d. None of these

II Fill in the blanks by choosing appropriate answers from those given in the brackets.
(Inseparable twins, Controlling, Costly, Corrective, Quantitative)

1. Controlling is the process of ensuring that activities in an organisation are performed as per plan.
2. Planning and Controlling are Inseparable twins of Management.
3. Comparison becomes easier when standards are set in Quantitative terms.
4. Controlling is a Costly affair.
5. Taking Corrective action is the last step in Controlling.

III Match the following:

A B
a. Controlling function i. Indispensable function of every Management
b. Setting performance standards ii. First step of controlling
c. Controlling limitation iii. Resistance from employee
d. Defective Machine iv. Repair/Replacement of machinery
e. Critical point control v. Key Result Area

IV Answer the following questions in one word or one sentence each:

1. What is meant by controlling?
Controlling means ensuring that activities in an organisation are performed as per the plans.

2. Mention any one method used to measure actual performance.

personal observation, sample checking, performance reports, etc
3. What is standard in controlling process?
Standards are the criteria against which actual performance would be measured.

4. Which are considered as inseparable twins of Management?

Planning and Controlling

5. Expand KRA.
Ans: Key Results Areas

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.
1. Define Managerial Control.
According to Koontz and O’ Donnel, “Managerial control implies the measurement of accomplishment against the
standard and the correction of deviations to assure attainment of objectives according to plans”.

2. Give any two advantages of controlling.

(a) It helps in accomplishing organisational goals
(b) It helps in improving employee motivation:

3. State any two limitations of controlling.

(a) Little control on external factors:
(b) Costly affair

4. State the methods used by managers to analyse deviations.

a. Critical point control. B. Management by exception.
 CHAPTER -9
FINANCIAL MANAGEMENT

I Choose and write the correct answer:

1. Business Finance is needed to

a. Establish a business b. Run a business
c. Expand a business d. All of the above
2. Primary aim of Financial Management is to
a. Maximise shareholder’s wealth b. Wealth maximisation concept
c. Maximisation of the market value of equity shares d. All of the above
3. Current Assets are those Assets which get converted into Cash
a. within 6 month b. within 1 year
c. between 1 & 3 years d. between 3 & 5 years.
4. Name the financial decision which relates to disposal of profits.
a. Investment decision b. Financing decision
c. Dividend decision d. Capital budgeting decision
5. A decision to acquire a new & modern plant to upgrade an old one is a:
a. Financing decision b. Working Capital decision
c. Investment decision d. None of the above

II Fill in the blanks by choosing appropriate answers from those given in the brackets.
[Blueprint, Capital Structure, Current assets, Fixed, Business Finance]
1. The money required for carrying out business activities is called Business Finance
2. Financial planning is essentially preparation of a financial Blueprint of an organization’s future operations.
3. Fixed capital refers to investment in Fixed assets.
4. Investment in Current assets facilitates smooth day-to-day operations of the business.
5. Capital Structure refers to the mix between owners and borrowed funds.

III Match the following:

A B
a. Financial Management i. Wealth Maximisation
b. Capital Budgeting ii. Long term Investment decision
c. Current Assets-Current Liabilities iii. Net working capital
d. Cash & Cash Equivalents iv. Current Assets
e. Return on Investment v. Trading on Equity

IV Answer the following questions in one word or one sentence each:

1. What is Business Finance?
Money required for carrying out the business activities is called as business finance.

2. State the primary objective of Financial Management.

The primary aim of financial management is to maximise shareholders’ wealth.
3. What is fixed capital?
Fixed capital refers to investment in long term assets or fixed assets such as investment in plant and machinery,
investment in buildings etc.

4. Give an example for fixed asset.

Land and Buildings, Furniture, Machinery

5. What is working capital?

Working capital refers to the funds invested to meet the day to day activities of an organization.

6. Give an example for current assets.

Cash in hand, stock, debtors, bills receivables. Etc,

7. Give the meaning of Current assets.

Current Assets are those Assets which get converted into Cash with in one year.

8. Give the meaning of Current Liabilities.

Current liabilities are those payment obligations which are due for payment within one year.

9. How do you calculate net working capital?

Net working capital = Current assets – Current Liabilities.

10. Write the meaning of financial risk.

Financial risk refers to a position when a company is unable to meet its fixed financial charges namely interest
payment, preference dividend and repayment obligations.

11. What is floatation cost?

It is the cost incurred for floating (issue) securities such as brokerage, underwriting commission etc.

12. A Company wants to establish a new unit in which a machinery worth Rs.5 Lakhs is involved.
Identify the type of decision involved in Financial Management.
Capital budgeting decision OR Long-term investment decision,

13. A decision is taken to distribute certain parts of the profit to shareholders after paying tax. What is
this decision called?
Ans: Dividend decision

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.
1. What do you mean by Financial Management?
Financial management means procurement of required funds at minimum cost and utilisation of such funds in
an effective manner.
OR
Financial management refers to efficient acquisition of finance, efficient utilisation of finance and efficient
distribution and disposal of surplus for smooth working of company.

2. What is meant by Capital Structure?

Capital structure refers to the mix between owner’s funds and borrowed funds.
Capital Structure = Debt/ Equity
3. State the two objectives of Financial Planning.
a. To ensure availability of funds, whenever these are required.
b. To see that the firm does not raise resources unnecessarily

4. Give the meaning of Investment decision with an example.

The investment decision is a financial decision which relates to how the firm’s funds are invested in different
assets. For example: a decision to make investment of Rs. 5 crores to purchase a new machine.

5. Give the meaning of Financing decision with an example.

This decision is about the quantum of finance to be raised from various long-term sources. They are
shareholders’ fund and borrowed funds such as shares, debentures, loans etc.
OR
A company can raise finance from various sources, such as by issue of shares, debentures or by taking loan and
advances. Deciding how much to rise from which sources concern of financing decision

6. Give the meaning of Dividend decision.

The decision involved here is how much of the profit earned by company (after paying tax) is to be
distributed to the shareholders and how much of it should be retained in the business.

7. Give the meaning of Financial Planning

The preparation of a financial blueprint of an organization’s future operations is called as financial planning.

8. What is Financial leverage?

The proportion of debt in the overall capital is also called financial leverage.
Financial leverage is computed as D÷E or D÷D+E. Where D is Debt and E is the Equity.

9. Give the meaning of Trading on Equity.

It refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges
like interest.

10. A Businessman who wants to start a manufacturing concern, approaches you to suggest him whether
the following manufacturing concern would require large or small working capital.
a. Bread : Small working capital
b. Motor Car. Large working capital

11. State why the working capital needs for a service industry are different from that of a manufacturing
Industry.
Ans: Service industries require no inventory and manufacturing process, hence, require less working capital
 CHAPTER -10
MARKETING

I Choose and write the correct answer:

1. ‘Focus on satisfaction of customer’s needs is the key to the success of any organisation in the market’.
The underlying marketing philosophy is
a. Production concept b. Selling concept
c. Marketing concept d. Product concept
2. Marketing mix is the set of tools.
a. Selling tools b. Production tools
c. Publicity tools d. Marketing tool
3. Which of the following is a durable product?
a. Toothpaste b. Chocolate
c. Television d. Stationery item
4. Amazon is an example for
a. Brand Name b. Brand mark
c. Trademark d. Label
5. Which of the following factors affects the price determination?
a. Product cost b. Demand
c. Government regulations d. All of these
6. Providing information to the customers about the product, its features and quality etc., are part of
a. Production b. Promotion
c. Pricing d. None of the above
7. Which of the following factor will not affect the choice of channel of distribution?
a. Market factors b. Environmental Factors
c. Trademark d. Competitive factors
8. The shortest channel in the distribution is
a. One level channel b. Two level channel
c. Three level channel d. Zero level channel
9. Which of the following is not a part of promotion mix?
a. Sales promotion b. Personal selling
c. Advertising d. Physical distribution
10. Discount, contests, free samples and lucky draw etc., are the examples of
a. Personal selling b. Sales promotion
c. Channels of distribution d. Advertising

II Fill in the blanks by choosing appropriate answers from those given in the brackets.

(Trademark, Zero Level, Primary package, Personal selling, Selling, Packaging, Generic name, Unpaid,
Market, Place mix.)
1. Market refers to set of actual and potential buyers of a product or service.
2. Selling activities start after the product has been developed.
3. Generic name refers to the name of the whole class of the product.
4. A brand or part of a brand that is given legal protection is called Trademark
5. Packaging refers to the act of designing and producing the container or wrapper of a product.
6. Primary package refers to the product’s immediate container.
7. Direct channel is also called as Zero Level
8. Place mix covers all the activities required to physically move the goods from producers to customers.
9. Personal selling provides direct and immediate feedback.
10. Publicity is a unpaid form of communication.
III Match the following:
A B
a. Marketing Philosophy i. The Product concept
b. Shopping product ii. Jewellery
c. Services iii. Intangible
d. Brand iv. Identification of a product
e. Personal selling v. Promotion mix
f. Sales Promotion vi. Discount

IV Answer the following questions in one word or one sentence each:

1. State anyone Marketing Philosophy.

Product concept

2. State any one feature of Marketing.

Needs and Wants: Marketing process is on satisfaction of the needs and wants of individuals and organizations.

3. Give an example of the marketing of services.

Insurance, Health Care services etc.

4. Give the meaning of Product.

Product means goods or services or 'anything of value' which is offered to the market for sale.

5. Name any one level of packaging.

Primary level of packaging

6. What is labelling?
Labelling refers to designing and developing the label to be put on the package.

7. State any one function of labelling.

Grading of Products:

8. Give the meaning of Price.

Price is the amount of money paid by a buyer in consideration of the purchase of a product or service.

9. State any one feature of shopping goods.

The shopping products are generally of durable nature.

10. State any one function of channel of distribution.

Ans: Allocation

11. State any one feature of personal selling.

Ans: Personal form

12. What is Publicity?

Publicity is a non-paid form of communication. It generally takes place when favourable news is presented in
the mass media about a product or service.

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.

1. What is Marketing?
Marketing is a process whereby people exchange goods and services for money or for something of value to
them.
2. Define Marketing.
Phillip Kotler has defined marketing as, “a social process by which individual groups obtain what they need and
want through creating offerings and freely exchanging products and services of value with others”.

3. Define marketing Management.

Philip Kotler has defined Marketing management as the art and science of choosing target markets and getting,
keeping and growing customers through creating, delivering and communicating superior customer values of
management.

4. What is Standardization?
Standardisation refers to determining of standard regarding size, quality, design, weight, colour, raw material to
be used etc in respect of a particular product. This ensures uniformity and consistency in the output.

5. Give the meaning of Grading of products.

Grading is the process of classification of products into different groups, on the basis of some of its important
characteristics such as quality, size, etc. E.g. food grains, cotton, tobacco, apples, mangoes etc.

6. What are Consumer goods?

Products, which are purchased by the ultimate consumers or users for satisfying their personal needs and
desires are referred to as consumer products. For example, soap, edible oil, eatables, textiles, toothpaste, fans,
etc.

7. Give two examples for Convenience goods.

Examples of convenience goods are ,ice creams, medicines, newspaper, stationery items toothpaste etc.

8. Give two examples for Industrial goods.

The examples Industrial products are raw materials, engines, lubricants, machines, tools, etc.

9. How do you describe shopping goods?

Shopping products are those consumer goods where buyers devote considerable time, to compare the quality,
price, style, suitability, etc., at several stores, before making final purchase.
Examples: clothes, shoes, jewellery, furniture, radio, television, etc.

10. List out two characteristics of services.

1) Services are intangible. 2) The services cannot be stored.

11. Mention any two objectives of pricing.

1) Obtaining Market Share Leadership 2) Surviving in a Competitive Market:

12. Name any two channel of distribution.

1. Direct channel: Selling without middlemen
2. Indirect channel: Selling through middlemen

13. State any two features of advertising.

(i) Paid Form: (ii) Impersonality:

14. What is personal selling?

Personal selling involves oral presentation of message in the form of conversation with one or more prospective
customers for the purpose. It is a personal form of communication.

15. State any two-marketing objective of public relations.

a. Building awareness b. Building credibility.
b.
 HOTS Questions

1. List out promotional message given on the package of any three consumer products of your choice and
comment how these promotional messages helps in the sale of these products.
1. Boost : Boost is the secret of my energy Buy 1 kg get free tennis Ball.
2. Dove India: "Real Beauty, Real Care" get 10% extra.
3. Horlicks: Stronger, taller and sharper. Get 25 rupees Cash back

2. Identify the type of sales promotion activities involved in the following statements.
a. ‘Scratch a card and win exciting prizes’. Ans: Instant Draws and Assigned Gift
b. ‘Buy 2 Get 1 Free. Ans: Quantity Gift
c. ‘A refund of Rs 5 and return of empty wrapper/foil. Ans: Refund
d. ‘Buy 2 kgs of detergent powder and get one bucket free. Ans: Quantity Gift

3.“An important task in the marketing of goods relates to designing the label as it provides useful and
detailed information about the product’. In the light of the above statement, draw a label for a packet of
juice and highlight the important information to be provided on it.

Brand Name: Sunshine Juice

Product Name: Orange Delight
Net Weight: 1Litre.

Ingredients:
- Orange Juice (100%)
- No added preservatives
- No artificial flavors
Nutritional Information (per serving):
- Energy: 50 kcal
- Carbohydrates: 12g
- Sugars: 10g
- Protein: 1g
- Fat: 0g
Storage Instructions:
- Store in a cool, dry place
- Refrigerate after opening
Manufacturing Details:
- Manufactured by: Sunshine Beverages Pvt. Ltd.
- Date of Manufacture: 12/02/2024
- Best Before: 12/02/2025
Maximum Retail Price:
Rs. 90 (inclusive of all taxes)
 CHAPTER -11
CONSUMER PROTECTION

I Choose and write the correct answer:

1. Consumer protection Act was formed in the year

a. 1986 b. 1984
c. 1987 d. 2007
2. Consumer protection is important for business because of
a. Long term interest b. Social responsibility
c. Uses Society’s resources d. All of the above
3. Consumers are exploited when
a. The shopkeeper under weights b. The shopkeeper overcharges
c. The shopkeeper sells goods of inferior quality d. All of the above
4. Which of the following right is not provided by the Consumer Protection Act to the consumers?
a. Right to safety b. Right to choose
c. Right to scold d. Right to seek redressal
5. Those complaints that can be filed in the State Commission where the value of goods or services and
the amount of compensation claimed is :
a. More than Rs.20 Lakhs but less than Rs.1 Crore. b. More than Rs.1 Crore but less than Rs.10 Crores.
c. More than Rs.10 Crores. d. More than Rs.10 Lakhs but less than Rs.20 Lakhs.
6. Which of the following functions are not carried out by the consumer organisation?
a. Accelerating consumer awareness
b. Filing suits, complaints on behalf of consumers
c. Solving personal and marital problems of consumers
d. Collecting information of different products and testing them.
7. Consumer Organisation – VOICE is located in
a. Mumbai b. Delhi
c. Ahmedabad d. Chennai
8.Where can the aggrieved party appeal further, in case, he is not satisfied with the order of District
Commission?
b. State Commission b. National Commission
c. Supreme Court of India d. All of the above.

II Fill in the blanks by choosing appropriate answers from those given in the brackets.
[Supreme Court of India, Interest, Bengaluru, State Government]

1. The concept of consumer protection is to safeguard the of Interest the consumers.

2. State commission is established by the respective State Government
3. An order passed by the National Commission in a matter of its original Jurisdiction is appealable before the
Supreme Court of India
4. Karnataka Consumer Service Society, a consumer organisation is located at Bengaluru

III Match the following:

A B
a. Beware of various goods i. Consumer responsibility
b. District Commission ii. Redressal Agencies
c. Indian Contract Act iii. 1872
d. The sale of Goods Act iv. 1930
e. Halmark v. Jewellery
f. File a complaint vi. Section 2(b) of Consumer Protection Act of 1986
IV Answer the following questions in one word or one sentence each:
1. What does the approach of “caveat emptor” mean?
Ans: caveat emptor which means Let the buyer beware,

2. State any one unfair trade practice of manufacturers and service providers by which consumers are
exploited.
Ans: Black marketing

3. State any one regulation which provides legal protection to the consumers.
Ans: Consumer protection act 2019

4. On which day, the world consumer rights day is celebrated?

Ans: March 15.

5. On which type of products can AGMARK be used?

Ans: Agricultural products

6. Name any one redressal agency set up under consumer protection Act to redress consumer grievances.
Ans: District Consumer Disputes Redressal Commission or District Commission.

7. If a case is decided by the District forum, can it be appealed before the Supreme Court?
Ans: No, a case decided by the District Forum cannot be directly appealed to the Supreme Court.

8. Who establishes the National Commission?

Ans: Central Government.

9. Name the apex institution to seek redressal under consumer protection Act, 1986.
Ans: The National Consumer Disputes Redressal Commission (NCDRC).

10. What is the monetary limit of claim in National Consumer Disputes Redressal Commission?
Ans: Exceeds ten crores of rupees.

11. Name any one consumer organisation / NGO engaged in protecting and promoting consumers
interests.
Ans: Karnataka Consumer Service Society, Bangalore

12. Santhosh bought a laptop for Rs.80,000 from a laptop seller on his verbal commitment that the laptop
will be replaced in case of any defect. Within a span of six months, the system started creating technical
issues in spite of proper maintenance. The seller denied taking any action on the complaint made by
Santhosh. Name the redressal agency under the Consumer Act where Santhosh can file his complaint.

Ans: No Mohit cannot file a complaint against the seller in the consumer court as he does not have cash-memo.
He had purchased mobile phone on the verbal commitment only.

V Answer the following questions in 2 or 3 sentences each. Each question carries 2 marks.
1. Give two examples of Unfair Trade Practices.
Black marketing, Hoarding, Adulteration, Supply of defective and unsafe products, False and misleading
advertising.

2. What is Consumer Protection?

Consumer Protection means protecting the consumers against anti-consumer trade practices by the producers or
sellers.

3. State any two causes of consumer exploitation.

1. Lack of Awareness 2. Unfair Trade Practices
4. State any two reasons to emphasize the importance of consumer protection from consumers point of
view.
1) Consumer Ignorance 2) Unorganised Consumers:

5. State any two who can file a complaint before the consumer forum?
(i) Any consumer.
(ii) Any registered consumers’ association.
(iii) The Central Government or any State Government.

6. “An order passed by the National Commission is a matter of its original Jurisdiction is appealable
before the Supreme Court” In this context, what does original Jurisdiction mean?
Ans: Original jurisdiction means cases that can be directly considered by the Supreme Court without going to
the lower courts before that.

7. Nikhitha who works in a school, purchased two shirts for Rs.300 each for her son. When she went back
home, she realised that the shirts was small in size for her son. She decided to ask for exchange in the size
of the shirt or for return of money. But the store owner refused to return the money or exchange the
shirt. Nikhitha was disheartened. Her friend advised her to go to a consumer organisation working for
the protection of consumer welfare. The organisation helped her by explaining to her the legal procedure,
as well as educated her about her rights as a consumer. They helped her in filling a complaint against the
store owner and getting relief. With the help of the organisation Nikhitha was able to get her money back
from the store. State any two rights of a consumer which Nikhitha was able to exercise with
the help of the organisation.

Ans: a. Right to be heard

c. Right to seek redressal
d. Right to consumer education