Test: Class 12 Business Studies: CBSE Sample Question Papers- Term I (2021-22)


60 Questions MCQ Test Sample Papers for Class 12 Commerce | Test: Class 12 Business Studies: CBSE Sample Question Papers- Term I (2021-22)


Description
Attempt Test: Class 12 Business Studies: CBSE Sample Question Papers- Term I (2021-22) | 60 questions in 90 minutes | Mock test for Class 12 preparation | Free important questions MCQ to study Sample Papers for Class 12 Commerce for Class 12 Exam | Download free PDF with solutions
QUESTION: 1

“The activities involved in managing an enterprise are common to all organisations whether economic, social or political.” Which characteristic of management is highlighted in the above statement?

Solution:

The activities involved in managing an enterprise are common to all organisations whether economic, social or political. A petrol pump needs to be managed as much as a hospital or a school. What managers do in India, the USA, Germany or Japan is the same. How they do it may be quite different. This difference is due to the differences in culture, tradition and history.

QUESTION: 2

Which of the following statements is false with respect to Planning?

Solution:

Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. But the manager would first have to set objectives, only then will a manager know where he has to go. Planning seeks to bridge the gap between where we are and where we want to go. Planning is what managers at all levels do. It requires taking decisions since it involves making a choice from alternative courses of action.

QUESTION: 3

Which function of marketing is concerned with the cost and location of target market?

Solution:

Transportation involves physical movement of goods from one place to the other. As generally the users of products, particularly consumer products are wide spread and geographically separated from the place these are produced, it is necessary to move them to the place where it is needed for consumption or us. A marketing firm has to analyse its transportation needs after taking into consideration various factors such as nature of the product, cost and location of target market and take decisions in respect of mode of transportation to be chosen and other related aspects.

QUESTION: 4

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

Solution:

Management is a process of getting things done with the aim of achieving goals effectively and efficiently. Management as a process means to carry out primary functions or activities that management performs to get things done. These functions are planning, organising, staffing, directing and controlling.

QUESTION: 5

Management principles are very _________ whereas pure science principles are rigid.

Solution:

The principles of management are not rigid prescriptions, which have to be followed absolutely. They are flexible and can be modified by the manager when the situation so demands. They give the manager enough discretion to do so. For example, the degree of concentration of authority (centralisation) or its dispersal (decentralisation) will depend upon the situations and circumstances of each enterprise.

QUESTION: 6

“A car manufacturer offers to sell a particular brand of car at a discount of ₹ 10,000 for a limited period”. Identify the sales promotion activity in the above example.

Solution:

Offering products at special prices, to clear off excess inventory is called rebate.

QUESTION: 7

Identify the nature of management which specifies that “A manager applies acquired knowledge in a personalised and skillful manner in the light of the realities of a given situation.”

Solution:

Art is the skillful and personal application of existing knowledge to achieve desired results. It can be acquired through study, observation and experience. Since art is concerned with personal application of knowledge some kind of ingenuity and creativity is required to practice the basic principles learnt. Management is an art because it requires personal skill, creativity and practice to apply systematic and well-organised body of knowledge in the best possible way.

QUESTION: 8

That part of a brand which can be recognized but which is not utterable is called _______.

Solution:

That part of a brand which can be recognised but which is not utter able is called brand mark. It appears in the form of a symbol, design, distinct colour scheme or lettering. For example, the Gattu of Asian Paints or Devil of Onida or symbol of Yogkshma of LIC, or four fingers and a palm of Anacin are all brand marks.

QUESTION: 9

Delegation refers to the_______ transfer of authority.

Solution:

A manager, no matter how capable he is, cannot manage to do every task on his own. The volume of work makes it impractical for him to handle it all by himself. As a consequence, if he desires to meet the organisational goals, focus on objectives and ensure that all work is accomplished, he must delegate authority. Delegation refers to the downward transfer of authority from a superior to a subordinate. It is a pre-requisite to the efficient functioning of an organisation because it enables a manager to use his time on high priority activities. 

QUESTION: 10

“By stating in advance how work is to be done planning provides direction for action.” is suggested by which of the following importance of planning:

Solution:

By stating in advance how work is to be done planning provides direction for action. Planning ensures that the goals or objectives are clearly stated so that they act as a guide for deciding what action should be taken and in which direction. If goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals individuals in the organisation are able to work in coordination. If there was no planning, employees would be working in different directions and the organisation would not be able to achieve its desired goals.

QUESTION: 11

Which of the following is an advantage of divisional structure?

Solution:

Product specialization helps in the development of varied skills in a divisional head and this prepares him for higher positions. This is because he gains experience in all functions related to a particular product. Divisional heads are accountable for profits, as revenues and costs related to different departments can be easily identified and assigned to them. This provides a proper basis for performance measurement. It also helps in fixation of responsibility in cases of poor performance of the division and appropriate remedial action can be taken.

QUESTION: 12

“Top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-to-day operational planning is done by supervisors”.
Which of the following feature of planning is highlighted in the above text?

Solution:

Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department. But the scope of planning differs at different levels and among different departments. For example, the top management undertakes planning for the organisation as a whole. Middle management does the departmental planning. At the lowest level, day-today operational planning is done by supervisors.

QUESTION: 13

Which of the following statement is correct with respect to marketing management?

Solution:

Marketing management means management of the marketing function. In other words, marketing management refers to planning, organising, directing and control of the activities which facilitate exchange of goods and services between producers and consumers or users of products and services. Thus the focus of marketing management is on achieving desired exchange outcomes with the target markets.

QUESTION: 14

“The significance of political conditions in business success lies in the predictability of business activities under stable political conditions”, is a major element of which of the following components of the Business Environment?

Solution:

Political environment includes political conditions such as general stability and peace in the country and specific attitudes that elected government representatives hold towards business. The significance of political conditions in business success lies in the predictability of business activities under stable political conditions. On the other hand, there may be uncertainty of business activities due to political unrest and threats to law and order. Political stability, thus, builds up confidence among business people to invest in the long-term projects for the growth of the economy.

QUESTION: 15

Why packaging and labelling have become so important in modern day marketing?

Solution:

Packaging and labelling have become so important in modern day marketing that these are considered as the pillars of marketing. Packaging is important not only for protection of the products but also serves as a promotional tool. Sometimes, the quality of the product is assessed by the buyers form packaging.

QUESTION: 16

Which of the following is the first step in the process of planning?

Solution:

The first and foremost step is setting objectives. Every organisation must have certain objectives. Objectives may be set for the entire organisation and each department or unit within the organisation. Objectives or goals specify what the organisation wants to achieve. Objectives should be stated clearly for all departments, units and employees. They give direction to all departments. Departments/ units then need to set their own objectives within the broad framework of the organisation’s philosophy. Objectives have to percolate down to each unit and employees at all levels. At the same time, managers must contribute ideas and participate in the objective setting process.

QUESTION: 17

____ refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output.

Solution:

Standardisation refers to producing goods of predetermined specifications, which helps in achieving uniformity and consistency in the output. Standardisation ensures the buyers that goods conform to the predetermined standards of quality, price and packaging and reduces the need for inspection, testing and evaluation of the products.

QUESTION: 18

Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’. Which dimension of the business environment is highlighted in the above statement?

Solution:

Legal environment includes various legislations passed by the Government administrative orders issued by government authorities, court judgments as well as the decisions rendered by various commissions and agencies at every level of the government— centre, state or local. Impact of legal environment can be illustrated with the help of government regulations to protect consumer’s interests. For example, the advertisement of alcoholic beverages is prohibited. Advertisements, including packets of cigarettes carry the statutory warning ‘Cigarette smoking is injurious to health’.

QUESTION: 19

Management principles are derived by______

Solution:

The management principles are developed only after deep and thorough research work. They are not developed overnight or they are not the personal feelings of any person. Proper observations and experiments are conducted before developing them. These are the expressions of deep experiences of the leaders of management thoughts.

QUESTION: 20

Which of the following importance of organizing “reduces the workload as well as enhances productivity”?

Solution:

Organising leads to a systematic allocation of jobs amongst the work force. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis. Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialisation.

QUESTION: 21

______ is referred to as the essence of marketing.

Solution:

The process of marketing facilitates exchange of products and services between the buyers and the sellers. The buyers, however, make buying decisions on their perceptions of the value of the product or service in satisfying their need, in relation to its cost. A product will be purchased only if it is perceived to be giving greatest benefit or value for the money. Goods are produced at different places and are distributed over a wide geographical area through various middlemen, involving exchanges at different levels of distribution. Exchange is, therefore, referred to as the essence of marketing.

QUESTION: 22

Business environment is a _________ phenomenon.

Solution:

Since business environment consists of numerous interrelated and dynamic conditions or forces which arise from different sources, it becomes difficult to comprehend at once what exactly constitutes a given environment. In other words, environment is a complex phenomenon that is relatively easier to understand in parts but difficult to grasp in its totality.

QUESTION: 23

A ________  structure is an organisational design that groups similar or related jobs together.

Solution:

Grouping of jobs of similar nature under functional and organising these major functions as separate departments creates a functional structure. All departments report to a coordinating head. For example, in a manufacturing concern division of work into key functions will include production, purchase, marketing, accounts and personnel. These departments may be further divided into sections. Thus, a functional structure is an organisational design that groups similar or related jobs together.

QUESTION: 24

According to Taylor, there should be an almost equal division of work and responsibility between workers and management. 
Identify the principle of Scientific management being discussed above.

Solution:

There should be complete cooperation between the labour and the management instead of individualism. Competition should be replaced by cooperation. Both should realise that they need each other. For this, management should not close its ears to any constructive suggestions made by the employees. They should be rewarded for their suggestions which results in substantial reduction in costs. They should be part of management and, if any important decisions are taken, workers should be taken into confidence. According to Taylor, there should be an almost equal division of work and responsibility between workers and management. All the day long the management should work almost side by side with the workers helping, encouraging and smoothing the way for them.

QUESTION: 25

Sana enterprises Ltd. manufactures dresses for women. Sana plans her dresses collection in the month of January itself. She has to then ensure that there is adequate workforce and continuously monitor whether production is proceeding according to plans. 
Identify the feature of coordination mentioned in the above the text?

Solution:

Coordination is not a onetime function but a continuous process. It begins at the planning stage and continues till controlling. It involves a continuous review of performance and is not a one-time exercise.

QUESTION: 26

____ principle of management is being violated if management does not fulfill its promise to increase wages of the workers after the mission is accomplished.

Solution:

Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties.

QUESTION: 27

For the following two statements choose the correct option:
Statement I: By deciding in advance the tasks to be performed, planning shows the way to deal with changes and uncertain events.
Statement II: Planning helps in avoiding confusion and misunderstanding.
Choose the correct option from the options given below:

Solution:

Planning is an activity which enables a manager to look ahead and anticipate changes. By deciding in advance, the tasks to be performed, planning shows the way to deal with changes and uncertain events. Changes or events cannot be eliminated but they can be anticipated and managerial responses to them can be developed. Planning serves as the basis of coordinating the activities and efforts of different divisions, departments and individuals. It helps in avoiding confusion and misunderstanding.

QUESTION: 28

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, collecting important facts about environment who took lot of time to frame plans for the company. The competition has started increasing, and it is not able to beat its competitors because it has already spent a huge amount. The plan failed and company suffered a huge loss. Identify the limitation of planning stated in the given case.

Solution:

Planning requires a lot of time to collect information, its analysis and interpretation. So, it is a timeconsuming process. When plans are drawn up huge costs are involved in their formulation. The environment in which a business survives is dynamic as it keeps on changing. The dynamic environment may sometimes lead to failure of plans.

QUESTION: 29

Which of the following statement is incorrect with respect to limitations of planning?

Solution:

Planning does not guarantee success. The success of an enterprise is possible only when plans are properly drawn up and implemented. Any plan needs to be translated into action or it becomes meaningless. Managers have a tendency to rely on previously tried and tested successful plans. It is not always true that just because a plan has worked before it will work again. Besides, there are so many other unknown factors to be considered. This kind of complacency and false sense of security may actually lead to failure instead of success. Planning involves huge costs. When plans are drawn up huge costs are involved in their formulation. These may be in terms of time and money for example, checking accuracy of facts may involve lot of time.

QUESTION: 30

A _____ is a state of felt deprivation or feeling of being deprived of something.

Solution:

A need is a state of felt deprivation or feeling of being deprived of something. If unsatisfied, it leaves a person unhappy and uncomfortable. For example, on getting hungry, we become uncomfortable and start looking for objects that are capable of satisfying our hunger. Needs are basic to human beings and do not pertain to a particular product.

QUESTION: 31

Himanshu Mehta was working as a sales manager in a reputed company. A company was manufacturing refrigerator. He found that the sales of refrigerators were declining in the past few months. So, he decided to bring it to the notice of top management. The top management framed strategies and policies to increase the sales of the refrigerators. Himanshu thus instructed this to Davik Sharma who in turn share the instructions to actual work force.
Identify the level at which Daivik Sharma was working in the company.

Solution:

Supervisors directly oversee the efforts of the workforce. Their authority and responsibility are limited according to the plans drawn by the top management. Supervisory management plays a very important role in the organisation since they interact with the actual work force and pass on instructions of the middle management to the workers.

QUESTION: 32

Lavender Ltd. is an Indian company dealing with cosmetics. The company finds that a foreign multinational namely Floral beauty is entering the Indian market with new substitutes. On the basis of this information, Lavender Ltd. can prepare themselves to meet the threat by adopting measures such as improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on.
Identify the significance of business environment mentioned in the above text.

Solution:

Threats refer to the external environment trends and changes that will hinder a firm’s performance. Besides opportunities, environment happens to be the source of many threats. Environmental awareness can help managers to identify various threats on time and serve as an early warning signal. For example, if an Indian firm finds that a foreign multinational is entering the Indian market with new substitutes, it should act as a warning signal. On the basis of this information, the Indian firms can prepare themselves to meet the threat by adopting such measures as improving the quality of the product, reducing cost of the production, engaging in aggressive advertising, and so on.

QUESTION: 33

   Authority is________, responsibility is _____________, accountability is __________.

Solution:

Authority determines the superior subordinate relationship wherein the superior communicates his decision to the subordinate, expecting compliance from him and the subordinate executes the decision as per the guidelines of the superior. Responsibility arises from a superior– subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. Once authority has been delegated and responsibility accepted, one cannot deny accountability. Thus, it can be stated that while authority is delegated, responsibility is assumed, accountability is imposed.

QUESTION: 34

‘Buy two get one free’ is printed on the label of the package of toothpaste. Which labelling function is being performed by this statement?

Solution:

An important function of label is to aid in promotion of the products. A carefully designed label can attract attention and give reason to purchase. Labels play an important role in sales promotional schemes launched by companies.

QUESTION: 35

Which of the following is an advantage of branding to the customers?

Solution:

Branding helps the customers in identifying the products. For example, if a person is satisfied with a particular brand of a product, say tea leaves or detergent soap, he need not make a close inspection every time, he has to buy that product. Thus, branding greatly facilitates repeat purchase of the products.

QUESTION: 36

Which of the following step in the planning of process is related to making assumptions about the future?

Solution:

The manager is required to make certain assumptions about the future. These assumptions are called premises. Assumptions are the base material upon which plans are to be drawn. The base material may be in the form of forecasts, existing plans or any past information about policies. The premises or assumptions must be the same for all and there should be total agreement on them. All managers involved in planning should be familiar with and use the same assumptions.

QUESTION: 37

As per the principle of unity of command what should be avoided?

Solution:

According to Fayol there should be one and only one boss for every individual employee. If an employee gets orders from two superiors at the same time the principle of unity of command is violated. The principle of unity of command states that each participant in a formal organisation should receive orders from and be responsible to only one superior. Dual subordination should be avoided. This is to prevent confusion regarding tasks to be done.

QUESTION: 38

For the following two statements choose the correct option:
Statement I: Management helps in achieving group goals.
Statement II: Management increases efficiency.
Choose the correct option from the options given below:

Solution:

Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation. The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.

QUESTION: 39

Management can be called an _______ science.

Solution:

The principles of management have evolved over a period of time based on repeated experimentation and observation in different types of organisations. However, since management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated. Therefore, management can be called an inexact science.

QUESTION: 40

Which of the following statements is true?

Solution:

Authority is both formal and informal. Managers require authority commensurate with their responsibility. There should be a balance between authority and responsibility. An organisation should build safeguards against abuse of managerial power. At the same time a manager should have necessary authority to carry out his responsibility.

QUESTION: 41

In the question given below, there are two statements marked as Assertion (A) and Reason (R). Read the Statements and choose the correct option:
Assertion ((A): Organising leads to the proper usage of all material, financial and human resources.
Reason (R): The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources.
Options are: 

Solution:

Organising leads to the proper usage of all material, financial and human resources. The proper assignment of jobs avoids overlapping of work and also makes possible the best use of resources. Avoidance of duplication of work helps in preventing confusion and minimising the wastage of resources and efforts.

QUESTION: 42

Comfort manufacturers build beautiful furniture’s. Their main focus is always to improve the designs of the product and not on the quality of the product. They try to include as many designs as possible in their furniture. However, the customers did not like the product as well the designs.
Identify the marketing management philosophy discussed in the above case.

Solution:

With the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products. The focus of business activity changed to bringing continuous improvement in the quality, incorporating new features etc. Thus, product improvement became the key to profit maximisation of a firm, under the concept of product orientation.

QUESTION: 43

Suganya decided to start the business of selling dress materials. She did some research to find out about the preferences of prospective customers. Based on this, she prepared a detailed business plan. She then made important decisions about the features, quality, packaging, labelling and branding of the dress material. Which of the following elements of Marketing Mix is being discussed here?

Solution:

In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs. Product means goods or services or ‘anything of value’, which is offered to the market for sale. Product may be defined as anything that can be offered to a market to satisfy a want or need. It is offered for attention, acquisition, use or consumption.

QUESTION: 44

“It is that function of management which is considered as the base of all other functions.” Identify the function of management stated in the above lines.

Solution:

Planning precedes all other managerial functions and provides the very basis for organising, staffing, directing and controlling. Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation.

QUESTION: 45

Zamara Garments Ltd., found that there was decline in sales even in the festive season. After analyzing, it was found that purchase and sales departments were not synchronizing so that supply of goods could take place according to purchase orders. ............... aspect of management is lacking above.

Solution:

Coordination involves synchronisation of the different actions or efforts of the various units of an organisation. Coordination is the force that binds all the other functions of management. It is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation. Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels. The purchase, production and sales departmental efforts have to be coordinated for achieving organisational objectives harmoniously.

QUESTION: 46

Which of the following nature of management has a feature “Management has a systematised body of knowledge”

Solution:

Management has a systematised body of knowledge. It has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as Economics, Sociology, Psychology and Mathematics. Like all other organised activity, management has its own vocabulary of terms and concepts.

QUESTION: 47

For organisational efficiency, it is important to harmonise individual goals and organisational goals through ______ .

Solution:

All individuals differ in their habits of work, background, approaches to situations and relationships with others. It becomes necessary to ensure that all individuals work towards the common goals of the organisation. But employees may have their own individual goals also. Therefore, for organisational efficiency, it is important to harmonise individual goals and organisational goals through coordination.

QUESTION: 48

The macrolevel factors related to the means of production and distribution of wealth which have an impact on business and industry includes:

Solution:

The economic environment in India consists of various macrolevel factors related to the means of production and distribution of wealth which have an impact on business and industry. These include stage of economic development of the country. The economic structure in the form of mixed economy which recognizes the role of both public and private sectors. Infrastructural factors, such as, financial institutions, banks, modes of transportation communication facilities.

QUESTION: 49

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. Which characteristic of coordination has been highlighted in the above case?

Solution:

Coordination unifies unrelated or diverse interests into purposeful work activity. It gives a common focus to group effort to ensure that performance is as it was planned and scheduled. The purpose of coordination is to secure unity of action in the realisation of a common purpose. It acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. Coordination is the function of every manager in the organisation. Top level managers need to coordinate with their subordinates to ensure that the overall policies for the organisation are duly carried out. Middle level management coordinates with both the top level and first line managers. Operational level management coordinates the activities of its workers to ensure that work proceeds according to plans.

QUESTION: 50

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. Which of the following importance of coordination has been described in the above case?

Solution:

Functions of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, marketing or human resources. All these departments may have their own objectives, policies and their own style of working. All departments and individuals are interdependent and they have to depend on each other for information to perform their activities. The activity of each department needs to be focused on attainment of common organisational goals. The process of linking the activities of various departments is accomplished by coordination.

QUESTION: 51

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. Which type of objective is fulfilled here?

Solution:

Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher-level needs such as personal growth and development. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

QUESTION: 52

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. At which level of management does Sanjeev work?

Solution:

Middle Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first line managers.

QUESTION: 53

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. Which of the following task is performed by the middle level managers?

Solution:

Middle Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first line managers. Their main task is to carry out the plans formulated by the top managers.

QUESTION: 54

Read the following text and answer question on the basis of the same.
Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middlelevel managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers. The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals. 
The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero. When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He gives a common direction to the individual effort in achieving the overall goal of the organisation. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Q. “He gives a common direction to the individual effort in achieving the overall goal of the organisation.” Identify the importance of management highlighted in the above text.

Solution:

Management is required not for itself but for achieving the goals of the organisation. The task of a manager is to give a common direction to the individual effort in achieving the overall goal of the organisation.

QUESTION: 55

“Happy homes” are the leading manufacturers of home decors items, bedsheets curtains etc. The owner of a company suddenly notice that the sales of the company are deteriorating.  After analysis, he came to know that the productivity of workers has fallen. He decided to increase the productivity of his workers. For this he will be hiring operational managers and each single worker will have to work under eight managers.
Which technique of scientific management is followed here? 

Solution:

Functional foremanship is an extension of the principle of division of work and specialisation to the shop floor. Each worker will have to take orders from the eight foremen in the related process or function of production. Foremen should have intelligence, education, tact, grit, judgment, special knowledge, manual dexterity, and energy, honesty and good health. Since all these qualities could not be found in a single person so Taylor proposed eight specialists. Each specialist is to be assigned work according to his qualities.

QUESTION: 56

Melbon Ltd. has determined the standard time and other parameters on the basis of the work-study techniques of Scientific Management. It has been determined that the standard output per worker per day is 10 units and those who made standard or more than standard will get ₹50 per unit and those below will get ₹40 per unit.
What will be the earnings of a worker producing 15 units?

Solution:

Output is more than standard.
Earnings = 15 units × ₹50 =₹ 750

QUESTION: 57

“Even after opening up of the Indian economy in 1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business.” Identify the dimension of the business environment which led to creation of the negative impact on business.

Solution:

Political Environment means that the actions were taken by the government, which potentially affect the routine activities of any business or company on a domestic or at the global level.

QUESTION: 58

A company owned by Vikas Malhotra has a set target and objectives to achieve in the coming year. He informed the production manager in one of the meeting that the company has to produce 1 million units of the product every day to meet its objectives and Mr. Vikas has decided to monitor the performance of production manager so as to control it accordingly. Identify the importance of planning in the above case.

Solution:

Planning involves setting of goals. The entire managerial process is concerned with accomplishing predetermined goals through planning, organising, staffing, directing and controlling. Planning provides the goals or standards against which actual performance is measured. By comparing actual performance with some standard, managers can know whether they have actually been able to attain the goals. If there is any deviation it can be corrected. Therefore, we can say that planning is a prerequisite for controlling.

QUESTION: 59

Prateek took his nephew Raman for shopping to ‘Hamleys’ to buy him a toy car for his birthday. Raman was delighted when on payment of the bag, he got a school bag along with the toy car free of cost. Identify which technique of sales promotion is being used by the company.

Solution:

Product combinations is offering another product as gift along with the purchase of a product, say offer of a pack of ½ kg of rice with the purchase of a bag of aatta (wheat flour).

QUESTION: 60

Sumit has been using ‘Smooth Shave’’, a famous shaving cream available in the market. On watching numerous advertisements in the television, he decided to try a new brand of shaving cream. When he went to the near-by store to purchase the same, he saw shaving creams by other producers making similar claims. Hence, he could not make up his mind as to which shaving cream to purchase.
Which of the following objection to advertising is being discussed in this case?

Solution:

So many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. For example, we may note similar claims of whiteness or stain removing abilities in competing brands of detergent powder or claims of whiteness of tooth or ‘feelings of freshness’ in competing brands of toothpaste that it is sometimes confusing to us as to which one to buy.

Use Code STAYHOME200 and get INR 200 additional OFF
Use Coupon Code