CUET Business Studies Previous Year Solved Paper 3 (17 August 2022 Slot-1) - Humanities/Arts MCQ

The ISI mark is mandatory for certain products to be sold in India, such as many of the electrical appliances like switches, electric motors, wiring cables, heaters, kitchen appliances, etc.,

‘Financial Planning is a financial blueprint of an organisation’s future operations’

Wealth maximization (shareholders’ value maximization) is also a main objective of financial management. Wealth maximization means to earn maximum wealth for the shareholders. So, the finance manager tries to give maximum dividend to the shareholders. He also tries to increase the market value of the shares.

People’s behaviour is based on their needs. Satisfaction of such needs influences their behaviour.

The correct answer is A: B and E Only.

The following statements are incorrect in respect of merits of internal source of recruitment:

B. It provides a complete solution in filling vacancies in the organisations:

• Internal recruitment does not always provide a complete solution for filling vacancies, as sometimes the required skills and expertise may not be present within the organization. In such cases, external recruitment becomes necessary.

E. It provides a wider choice:

• Internal recruitment can limit the choice of potential candidates as it only considers existing employees within the organization. External recruitment, on the other hand, provides a wider choice by considering candidates from outside the organization as well.

The other statements about the merits of internal source of recruitment are correct:

A. It helps in motivating employees which results in improving their performances:

• Internal recruitment allows employees to see a clear career path and growth opportunities within the organization, which can motivate them to work harder and perform better.

C. It is a cheaper and time saving method of recruitment:

• Internal recruitment usually involves fewer costs and takes less time compared to external recruitment, as the organization is already familiar with the employees and their capabilities.

D. It provides a solution of shifting workforce from the surplus departments to understaffed departments:

• Internal recruitment allows organizations to move employees from departments with an excess of staff to those that are understaffed, helping to maintain a balanced workforce and address any skill gaps.

The correct answer is B: C and E Only.

The advantages of a functional structure in an organization are as follows:

C. Promotes control and coordination within a department:

• In a functional structure, employees are grouped together based on their job functions, which allows for better control and coordination within each department.
• The clear definition of roles and responsibilities within each department allows for better communication and collaboration among team members, leading to improved efficiency and productivity.

E. Makes training of employees easier:

• With a functional structure, employees are specialized in their respective job functions, which makes it easier to provide targeted training and development programs.
• As employees perform similar tasks within their department, they can share knowledge and best practices, leading to a faster learning curve and increased expertise.

The other options (A, B, and D) are not advantages of a functional structure:
A. Product specialization is more related to a product-based organizational structure, where employees are grouped together based on the specific products or services they are responsible for.
B. Expansion and growth can be facilitated by various organizational structures, but a functional structure does not inherently promote expansion and growth more than other structures.
D. Flexibility and initiatives may be limited in a functional structure, as employees are focused on their specific job functions and may not have the opportunity or authority to explore new ideas and initiatives outside their department.

Scientific methods involves investigation of traditional methods through work study

The correct answer is D: B, D, E, C, A.

The process of planning involves the following sequence of steps:

1. Specifying quantitative goals:

• The first step in the planning process is to set specific, measurable, and achievable goals for the organization. These goals help guide the overall direction of the plan.

2. Forecasting based on assumptions relating to the future:

• The next step involves making assumptions and predictions about future trends, events, and conditions that could affect the organization's ability to achieve its goals. This helps in formulating a plan that is adaptable to changing circumstances.

3. Identifying alternative courses of action:

• After forecasting the future, it is important to identify and evaluate all the possible alternative courses of action that can be taken to achieve the goals. This step ensures a comprehensive list of options is considered before making a decision.

4. Weighing the pros and cons of each alternative course:

• Once the alternative courses of action have been identified, the next step is to weigh the pros and cons of each option. This involves assessing the risks, challenges, benefits, and potential consequences of each alternative course of action.

5. Selecting the ideal plan with the least negative consequences:

• Based on the evaluation of the pros and cons, the final step is to select the best course of action that has the least negative consequences and offers the greatest chance of success in achieving the goals. This chosen plan is then implemented and monitored to ensure its effectiveness.

Growth. Can be measured in terms of increase in the number of employees. Increase in the number of products. Increase in the number of branches.

The correct sequence to complete the staffing process is as follows:
Step 1: Identifying Staffing Needs

• D. Rajat requires 20 carpenters to complete the order of making tables

Step 2: Sourcing Candidates

• A. Rajat met a labour contractor and told him to send 30 carpenters the next day

Step 3: Selection Process

• E. Rajat selected 20 carpenters from the 30 candidates sent by the contractor

Step 4: Job Assignment

• B. The 20 carpenters were shown their workplace and the job of making the tables were given them

Step 5: Training and Skill Development

• C. Two carpenters were sent for training as they needed some new skills

Hence, the correct answer is Option A: D, A, E, B, C.

Management creates a dynamic organization- Management creates a dynamic organization by motivating employees to accept changes in the organization willingly. Thus creating a dynamic organization.

Business environment differs from country to country and region to region, thus it’s a relative concept

The correct answer is B: D, A, E, C, B.

1. Setting an objective:

• Aren sets an objective to earn 20% profit in the first year of business. (D)

2. Forecasting:

• He has forecasted the demand for his products, interest rate, price of capital goods, and tax rate. (A)

3. Identifying alternatives:

• To achieve the target, Aren can reduce the price of the product, reduce the quality of raw material, or produce in bulk to reduce the cost of production. (E)

4. Evaluating alternatives:

• Aren found out that increasing the price and reducing quality will reduce his customers, but producing in bulk will increase customers. (C)

5. Making a decision:

• Aren decides to produce in bulk to reduce the cost of production. (B)

Facilitates growth as with decentralisation greater autonomy is granted to the lower level managers who then gain more spirit of competition.

The correct answer is A
Functional Structure: refers to an organizational design where employees are grouped based on their area of expertise or function, such as marketing, finance, or human resources. The functional structure offers several advantages, including:
A. It leads to occupational organizations

• When employees are grouped based on their area of expertise, it promotes the development of occupational organizations. This means that employees become experts in their respective fields, leading to increased efficiency and effectiveness in their work.

B. It leads to minimal duplication of efforts which results in economies of scale

• In a functional structure, each department focuses on its specific tasks and responsibilities, which helps to minimize the duplication of efforts. This, in turn, leads to economies of scale, as companies can leverage their specialized resources more effectively.

D. Easy training of employees as focus is on limited range of skills

• In a functional structure, employees are trained in a limited range of skills specific to their department or area of expertise. This makes it easier for the organization to train new employees and develop their skills, as the focus is on a specific set of tasks and responsibilities.

However, the following options are not necessarily true of the functional structure:
C. Product specialization helps in the development of varied skills in divisional head

• This statement is more applicable to a divisional or product-based organizational structure, where each division focuses on a specific product or service. In a functional structure, the focus is on the area of expertise or function, rather than product specialization.

E. New divisions can be added without interrupting the existing operations

• While it may be possible to add new divisions without interrupting existing operations in some cases, this statement is not universally true for functional structures. The ease of adding new divisions depends on the specific organization and its existing structure, as well as the nature of the new division being added.

The correct answer is D: A, C, D, B, E. 
A. Preliminary Screening

• - Initial review of job applications and resumes
• - Filtering out unqualified candidates or those who do not meet the minimum requirements for the position

C. Selection Tests

• Administering various tests to assess candidates' skills, aptitude, and personality
• These tests may include written exams, practical tests, or psychometric assessments

D. Employment Interview

• Conducting face-to-face or virtual interviews with shortlisted candidates
• Evaluating candidates' communication skills, problem-solving abilities, and overall fit for the organization

B. Reference and Background Checks

• Contacting previous employers, colleagues, or academic institutions to verify candidates' work history, qualifications, and professional conduct
• Performing background checks, such as criminal records, credit history, or social media activity, to ensure candidates are reliable and trustworthy

E. Selection Decision

• Comparing and evaluating the results of the selection tests, interviews, and reference checks
• Making a final decision on the most suitable candidate(s) for the position and extending a job offer

The correct answer is B: A and D Only.

Labelling serves various functions in the context of products and their packaging. The main functions performed by labelling include:

A. Describes the product and specifying its content:

• Labelling helps in providing essential information about the product, such as its name, ingredients, contents, and usage instructions. This information allows consumers to make informed decisions about whether the product is suitable for them.

B. Provides protection to the content of the product:

• While labelling itself does not provide physical protection to the product, it may include information about how to store and handle the product to ensure its safety and quality. This information is crucial for maintaining the product's integrity and preventing damage.

D. Provides information required as per the law:

• Labelling is often required by law to include specific information for the benefit of consumers and to ensure compliance with regulations. This may include details like nutritional facts, allergen warnings, manufacturing and expiration dates, and other legally required information.

The other options, C and E, are not primary functions of labelling:
C. Gives generic name to the product:

• Labelling typically provides the specific name of the product rather than a generic name. It helps consumers identify the exact product they are looking for.

E. Facilitates the introduction of new products:

• While labelling can contribute to the marketing of a new product, it is not a core function of labelling. The primary purpose of labelling is to provide essential information about the product and ensure compliance with legal requirements.

Primary packaging is the packaging in direct contact with the product itself and is sometimes referred to as consumer or retail packaging.

A marketing channel in which there are two levels of intermediaries (for example, a wholesaler and a retailer) between the manufacturer and the enduser

Noise. It refers to any obstruction that is caused by the sender, message or receiver during the process of communication

Esteem needs encompass confidence, strength, self-belief, personal and social acceptance, and respect from others. These needs are represented as one of the key stages in achieving contentedness or self-actualization

Horizontal or lateral communication takes place between one division and another.

Pre-determined goals can be achieved only through controlling., Planning without control is useless and control without planning is meaningless. Planning, based on facts, makes controlling easier. Thus, planning and controlling are mutually inter-related and interdependent.

If performance is not measured, it cannot be ascertained whether standards have been met. Comparing actual performance with standards or goals: Accept or reject the product or outcome.

Financial risk refers to a situation when a company is not able to meet its fixed financial charges such as interest payment, preference dividend and repayment obligations. In other words, it refers to the probability that the company would not be able to meet its fixed financial obligations

Organisations use debentures when they need to borrow cash at a fixed rate of interest for their development. Hence, debentures are not a part of the owner’s capital.

Financial planning refers to estimating the requirements of a business and determining the sources of funds. Financial planning includes both short-term and long-term planning