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30 Questions MCQ Test CUET UG Mock Test Series 2026 - Business Studies: CUET Mock Test - 1

Business Studies: CUET Mock Test - 1 for CUET 2025 is part of CUET UG Mock Test Series 2026 preparation. The Business Studies: CUET Mock Test - 1 questions and answers have been prepared according to the CUET exam syllabus.The Business Studies: CUET Mock Test - 1 MCQs are made for CUET 2025 Exam. Find important definitions, questions, notes, meanings, examples, exercises, MCQs and online tests for Business Studies: CUET Mock Test - 1 below.
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Business Studies: CUET Mock Test - 1 - Question 1

Mr. Rohit, who was an employee in Z Cosmetics Limited was able to produce the goods in time but at higher cost. Mr. Rohit was

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 1

Effectiveness is concerned with doing the right things on time and efficiency is concerned with doing things in the right way.

Business Studies: CUET Mock Test - 1 - Question 2

What is the foundation of the success of the Tata Group?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 2

Effective management and coordination
The success of Tata Group is attributed to effective management and coordination across all levels of the organisation. The passage mentions how these practices helped achieve the group's global success.

Business Studies: CUET Mock Test - 1 - Question 3

What does Tata's management approach emphasize?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 3

Social responsibility and environmental protection.

The passage highlights that the Tata Group’s management practices focus on "both economic prosperity and social responsibility, such as its involvement with UNICEF and efforts in reducing carbon footprints." While economic prosperity is part of the approach, option B (social responsibility and environmental protection) captures the emphasized aspects, as evidenced by specific examples like UNICEF and carbon footprint reduction. Option A is incorrect because it excludes social responsibility, and options C and D are not mentioned in the passage.

Business Studies: CUET Mock Test - 1 - Question 4

Which of the following is NOT mentioned as a Tata Group company in the passage?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 4

Tata Electronics
Tata Electronics is not mentioned in the passage. The companies listed are Tata Steel, Tata Consultancy Services, and Tata Motors

Business Studies: CUET Mock Test - 1 - Question 5

Who founded the Tata Group?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 5

Jamsetji Nusserwanji Tata
The Tata Group was founded by Jamsetji Nusserwanji Tata in 1868, as mentioned in the passage.

Business Studies: CUET Mock Test - 1 - Question 6

What aspect of Tata Group’s operations helps ensure its success?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 6

Management’s strong sense of values
The Tata Group’s success is largely attributed to the management’s strong sense of values, as described in the passage. These values guide the company to this day.

Business Studies: CUET Mock Test - 1 - Question 7
Identify the correct sequence of activities involved in the process of business:
(A) Production
(B) Distribution
(C) Exchange
(D) Commerce
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 7
Business involves a sequence of activities starting with the production of goods or services, followed by their distribution to various places, and culminating in their exchange through sale. Commerce supports these activities (e.g., transport, banking). Thus, the correct sequence is Production, Distribution, Exchange, Commerce. Hence, Option 1 is the correct choice.
Business Studies: CUET Mock Test - 1 - Question 8

Identify the correct sequence of principles of Scientific Management as proposed by F.W. Taylor:
(A) Science, not Rule of Thumb
(B) Harmony, not Discord
(C) Cooperation, not Individualism
(D) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 8

F.W. Taylor’s principles of Scientific Management are presented in a logical sequence starting with replacing rule of thumb with scientific methods (Science, not Rule of Thumb), followed by fostering harmony between management and workers (Harmony, not Discord), emphasizing cooperation over individualism (Cooperation, not Individualism), and finally focusing on worker development for efficiency and prosperity (Development of Each and Every Person). Thus, the correct sequence is (A), (B), (C), (D). Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 1 - Question 9
Identify the correct sequence of steps taken by Dharamveer Kamboj in developing his multipurpose processing machine:
(A) Observing the manual gooseberry processing by women
(B) Creating the first prototype
(C) Solving the overheating issue
(D) Incorporating portability features
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 9
Dharamveer Kamboj first observed women manually processing gooseberries, which inspired his idea. He then created the first prototype, faced an overheating issue, and solved it in the third prototype. Finally, he incorporated portability features like foldable legs in the fourth prototype. Thus, the correct sequence is Observing, Creating the first prototype, Solving overheating, Incorporating portability. Hence, Option A is the correct choice.
Business Studies: CUET Mock Test - 1 - Question 10
Identify the correct sequence of steps in the planning process:
(A) Setting objectives
(B) Developing premises
(C) Identifying alternative courses of action
(D) Selecting an alternative
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 10
The planning process begins with setting objectives to define what the organization aims to achieve. Next, developing premises involves making assumptions about future conditions. Then, identifying alternative courses of action explores possible ways to achieve the objectives. Finally, selecting an alternative involves choosing the best course of action. Thus, the correct sequence is (A), (B), (C), (D). Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 1 - Question 11

Identify the correct sequence of steps in the process of organising:
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationships
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 11

The process of organising involves a systematic sequence starting with identifying and dividing the work into manageable tasks, followed by grouping similar activities into departments (departmentalisation), assigning duties to individuals based on their skills, and finally establishing authority and reporting relationships to ensure coordination. Thus, the correct sequence is (A), (B), (C), (D). Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 1 - Question 12

Identify the correct sequence of steps in the staffing process:
(A) Estimating the Manpower Requirements
(B) Recruitment
(C) Selection
(D) Placement and Orientation
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 12

The staffing process begins with estimating the manpower requirements to determine the number and type of employees needed. This is followed by recruitment to attract potential candidates, selection to choose the best candidates, and finally placement and orientation to integrate the selected employees into the organization. Thus, the correct sequence is Estimating the Manpower Requirements, Recruitment, Selection, Placement and Orientation. Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 1 - Question 13
The characteristics of management as a science include which of the following:
(A) It has a systematised body of knowledge with its own principles.
(B) Its principles are based on repeated experimentation and observation.
(C) It has universal validity applicable in all situations without modification.
(D) It draws on disciplines like Economics and Psychology.
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 13
Management as a science has a systematised body of knowledge, principles developed through experimentation and observation, and draws on disciplines like Economics and Psychology. However, its principles lack universal validity as they require modification based on specific situations. Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 1 - Question 14
The principles of Scientific Management as proposed by F.W. Taylor emphasize improving industrial efficiency. Which of the following statements correctly describe these principles?
(A) Replace traditional methods with rule-of-thumb approaches to enhance productivity.
(B) Promote harmony between management and workers to avoid conflict.
(C) Encourage competition rather than cooperation to drive individual performance.
(D) Develop each worker to their greatest efficiency through scientific selection and training.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 14
F.W. Taylor’s Scientific Management principles include replacing rule-of-thumb with scientific methods (not promoting rule-of-thumb, so A is incorrect), fostering harmony between management and workers (B is correct), encouraging cooperation over individualism (not competition, so C is incorrect), and developing workers through scientific selection and training (D is correct). Hence, only statements B and D are accurate, making Option B the correct choice.
Business Studies: CUET Mock Test - 1 - Question 15
Supervision, as an element of directing, plays a vital role in organizations due to the following functions:
(A) Maintaining day-to-day contact and friendly relations with workers.
(B) Acting as a link between workers and management to avoid misunderstandings.
(C) Setting organizational goals and developing strategic plans for the company.
(D) Providing on-the-job training to build an efficient team of workers.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 15
Supervision involves maintaining close contact with workers, acting as a communication bridge between workers and management, and providing training to enhance team efficiency. Setting organizational goals and strategic planning are functions of higher management, not supervision. Hence, (A), (B), and (D) are correct, making Option B the correct choice.
Business Studies: CUET Mock Test - 1 - Question 16

Personal objectives are related with satisfying the personal needs of the employees. Management must seek to satisfy the diverse needs of employees like

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 16

The satisfaction of personal objectives of individuals is necessary, as only satisfied employees will help to achieve the organisational goals.

Business Studies: CUET Mock Test - 1 - Question 17

Efficiency means doing the task correctly and with maximum cost.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 17

Efficiency means doing the task with minimum cost.

Business Studies: CUET Mock Test - 1 - Question 18

The marketing manager of ‘Informatics Limited’ always keeps a check on the changes happening in the surroundings and instructs the research and development department to improve the products accordingly. This habit of the marketing manager helps the company to keep an edge over the competitors.Which feature of management is depicted in the above case?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 18

Management has to adapt itself and its goals according to the changing needs of the business environment.

Business Studies: CUET Mock Test - 1 - Question 19

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

Assertion (A): The effect of management is noticeable in an organisation where targets are according to plans, employees are happy and satisfied and there is orderliness instead of chaos.
Reason (R): Every member of the organisation has a different purpose for joining the organisation and each member works towards his personal goal.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 19

Assertion is correct and the reason behind is that management is an intangible force. Reason is not a correct statement as the members of the organisation work towards fulfilling the common organisational goals.

Business Studies: CUET Mock Test - 1 - Question 20

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

Assertion (A): Through management, the personal objectives can be achieved.
Reason (R): Management helps to provide good quality products, create employment opportunities and adapt new technologies.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 20
  • Assertion (A) is true: Management aligns individual employees’ personal objectives (e.g., financial security, career growth, recognition) with organizational goals. By motivating and leading employees effectively, management ensures personal objectives are achieved alongside organizational success.
  • Reason (R) is true: Management is responsible for delivering high-quality products, creating employment opportunities, and adopting new technologies, which are common outcomes of effective management practices.
  • Explanation: The reason does not explain the assertion. The assertion focuses on achieving personal objectives (e.g., employee satisfaction or growth), while the reason describes broader organizational outcomes (product quality, job creation, technology adoption). While these outcomes may indirectly benefit employees (e.g., jobs provide income), they do not specifically address personal objectives. Thus, option B is correct because both statements are true, but R is not the correct explanation of A.
Business Studies: CUET Mock Test - 1 - Question 21

Match List - I with List - II.

Choose the correct answer from the options given below :​​​​​

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 21

The correct answer is (A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Key Points

  • Intelligence Tests gauge an individual's cognitive abilities, such as problem-solving skills, memory, reasoning, and understanding complex concepts. These abilities are crucial for learning, assimilating new information, and applying knowledge to different situations. Therefore, intelligence tests are an accurate indicator of a person's learning ability, making the pairing of (A) with (III) appropriate.
  • Personality Tests assess various dimensions of an individual's personality, including attitudes, motivations, preferences, and values. Through a detailed evaluation of personality traits, these tests can provide deep insights into a person's value system, including what they prioritize in life and their ethical or moral stances. Hence, the matching of (B) with (IV) accurately reflects how personality tests can reveal an individual's value system.
  • Aptitude Tests are designed to predict an individual's ability to acquire certain skills or perform specific tasks with training. These tests measure various facets of aptitude, such as verbal, mathematical, mechanical, or spatial ability, providing a forecast of the individual's potential for success in learning new skills or in certain job roles. Consequently, linking (C) with (I) is logical since aptitude tests specifically aim to measure potential learning capabilities.
  • Interest Tests evaluate what subjects, activities, or tasks an individual is drawn to or finds engaging. By identifying these interests, the tests can predict certain patterns of involvement, such as a preference for working with people versus working with objects or data, or a proclivity for artistic versus analytical activities. The connection between an individual's interests and their pattern of involvement in activities makes the pairing of (D) with (II) valid, as these tests offer insights into how a person is likely to engage with the world around them.

Business Studies: CUET Mock Test - 1 - Question 22

It is always noticed that efficient management motivates employees to adopt changes by convincing them. Which point of importance of management discussed here?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 22

Importance of Efficient Management in Motivating Employees

  • Efficient management motivates employees: Efficient management plays a crucial role in motivating employees to adopt changes by convincing them. When employees see that their managers are effective in leading and guiding them, they are more likely to trust and follow their direction.
  • Creating a dynamic organization: Management helps in creating a dynamic organization that can adapt to changes and challenges in the external environment. A well-managed organization is more likely to innovate, grow, and stay competitive in the market.
  • Achieving personal objectives: Management also helps employees in achieving their personal objectives by providing them with opportunities for growth, development, and advancement within the organization. When employees see that their personal goals align with the organization's goals, they are more likely to be motivated and engaged in their work.
  • Achieving group goals: Management plays a key role in aligning individual goals with group goals, ensuring that everyone is working towards a common objective. By setting clear goals, communicating effectively, and providing support and resources, management can motivate employees to work together towards achieving shared goals.
Business Studies: CUET Mock Test - 1 - Question 23

The policies framed by the top management is interpreted by _______ level of management.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 23

Interpreting Policies by Middle Management

  • Role of Middle Management: Middle management plays a crucial role in interpreting and implementing the policies framed by the top management.
  • Bridge between Top and Lower Levels: Middle managers act as a bridge between the top management and lower-level employees, ensuring that the policies are effectively communicated and executed.
  • Understanding Strategic Goals: Middle managers are responsible for understanding the strategic goals set by the top management and translating them into actionable plans for their teams.
  • Implementing Policies: Middle managers are tasked with overseeing the implementation of policies within their departments, ensuring that they align with the overall objectives of the organization.
  • Feedback Loop: Middle managers also provide valuable feedback to the top management regarding the effectiveness of policies and any necessary adjustments that may be required.
Business Studies: CUET Mock Test - 1 - Question 24

It is a common view that efficient management always satisfy its employees. Which point of features of management discussed here?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 24
  • Intangible force: Efficient management satisfying its employees is an intangible force that drives employee motivation and engagement. When employees feel satisfied, they are more likely to be productive and loyal to the organization.
Business Studies: CUET Mock Test - 1 - Question 25

Match List - I with List - II.

Choose the correct answer from the options given below :

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 25

The correct answer is (A) - (III), (B) - (IV), (C) - (II), (D) - (I)
Key Points

  • The mix between owners' and borrowed funds:
    • This refers to the capital structure of a company, which is the mix of different types of debt and equity that a company uses to finance its operations. Thus, it correctly matches with (III) Capital Structure.
  • Quantum of finance to be raised from various long term sources:
    • This pertains to the decisions regarding the long-term financing of a company, i.e., how a company decides to fund its operations and growth through various sources like equity, debt, or other financial instruments. Therefore, it aligns with (IV) Financing Decisions.
  • How the firm's funds are invested:
    • This is related to investment decisions, which involve deciding where to allocate the firm's funds to generate the best possible returns. These decisions are crucial for the firm's growth and profitability, matching with (II) Investment Decisions.
  • Financial blue print of an organisation:
    • This refers to the financial planning of an organization, which encompasses the budgeting and forecasting processes to ensure the efficient use of resources, aligning with (I) Financial Planning.

Additional Information

  • Incorrect Options:
    • Options 1, 2, and 4 present incorrect matches 
Business Studies: CUET Mock Test - 1 - Question 26

Levels of management in an organisation serve as a ______ line among the different managerial posts.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 26

Levels of Management in an Organisation

  • Importance of Levels: Levels of management in an organisation serve as a dividing line among the different managerial posts.
  • Clear Hierarchy: The levels of management help in establishing a clear hierarchy within the organisation.
  • Roles and Responsibilities: Each level of management has its own set of roles and responsibilities which helps in creating a structured work environment.
  • Communication: The levels of management facilitate smooth communication flow within the organisation.
  • Decision Making: Different levels of management are responsible for decision-making at various levels of the organisation.
  • Coordination: The levels of management help in coordinating the efforts of different departments towards achieving common goals.
  • Efficiency: By clearly defining the levels of management, the organisation can ensure efficiency in operations and decision-making processes.

Therefore, the levels of management in an organisation play a crucial role in maintaining order, clarity, and efficiency within the organisational structure.

Business Studies: CUET Mock Test - 1 - Question 27

A _______ chain is formed from top-level management to the lower-level management.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 27
  • Scalar Chain: The scalar chain is a chain of authority and communication that runs from the top of the organization to the bottom. It ensures a clear line of communication and authority within the organization.
  • Top-Level Management: This refers to the senior executives or leaders of the organization who are responsible for making strategic decisions and setting goals for the company.
  • Lower-Level Management: This includes middle managers and supervisors who are responsible for implementing the decisions made by top-level management and overseeing day-to-day operations.
  • Vertical Chain: The scalar chain is vertical in nature, meaning it flows vertically from the top level of management to the lower levels.
  • Communication: The scalar chain helps facilitate effective communication within the organization by ensuring that information flows smoothly up and down the chain of command.

By following the scalar chain, organizations can maintain order, clarity, and efficiency in their operations. It helps to avoid confusion, minimize errors, and ensure that everyone is aligned with the organization's goals and objectives.

Business Studies: CUET Mock Test - 1 - Question 28

Google and Microsoft make the provision of creche, laundry, gym and entertainment facilities for their employees. Which objective of management is achieved by the management?

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 28

The provision of facilities like creche, laundry, gym, and entertainment is primarily aimed at addressing the personal needs and well-being of employees. This aligns with the personal objective of management, which focuses on fulfilling the needs and aspirations of employees.
Personal objectives of management include ensuring the well-being of employees, improving job satisfaction, and promoting a healthy work-life balance, which is exactly what these provisions aim to achieve.
So, the correct answer is:
b) Personal objective.

Business Studies: CUET Mock Test - 1 - Question 29

Human resource resist to adapt the changes in business environment.

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 29

Human Resource Resistance to Change in Business Environment

  • Comfort Zone: Human resources often resist change because they are comfortable with the current way of doing things and fear the unknown.
  • Job Security: Change can bring uncertainty about job roles and responsibilities, leading to resistance from employees who fear losing their jobs.
  • Training and Development: Lack of training and development opportunities can make employees resistant to change as they may feel unprepared to adapt to new processes.
  • Communication: Poor communication from management about the reasons for change and the benefits it will bring can lead to resistance from employees who feel left in the dark.
  • Organizational Culture: If the organizational culture does not support change or encourages resistance, employees are more likely to resist adapting to new business environments.
  • Leadership: Strong leadership is needed to guide employees through change and motivate them to embrace new ways of working. Without effective leadership, resistance is more likely to occur.

In conclusion, human resource resistance to change in the business environment is a common challenge that organizations face. By addressing the root causes of resistance and implementing strategies to overcome it, businesses can successfully navigate change and thrive in an ever-evolving market.

Business Studies: CUET Mock Test - 1 - Question 30

Match List - I with List - II.

Choose the correct answer from the options given below :

Detailed Solution for Business Studies: CUET Mock Test - 1 - Question 30

The correct answer is (A) - (II), (B) - (IV), (C) - (I), (D) - (III)
Key Points

  • Packaging:
    • Refers to the act of designing and producing containers or wrappers for products. It is correctly matched with (II), highlighting its role in product presentation and protection.
  • Labelling:
    • Entails the act of designing labels, which includes the brand name, product benefits, and other information. This is aptly paired with (IV), indicating the process of creating informative and appealing labels for products.
  • Advertising:
    • Is an impersonal form of communication aimed at informing, persuading, and reminding potential customers about a product or service. Therefore, it is correctly matched with (I), as it involves mass communication through various media.
  • Branding:
    • Refers to the process of giving a product a unique identity through a name, sign, symbol, or design. This is correctly linked with (III), illustrating the essence of branding in distinguishing products in the marketplace.

Additional Information

  • Misconceptions:
    • It is easy to confuse the roles and definitions of packaging, labelling, advertising, and branding as they all contribute to the marketing mix and are closely related. However, each has a distinct function and purpose in the marketing strategy.
  • Marketing effectiveness:
    • The correct understanding and application of these concepts are crucial for the effectiveness of marketing strategies. They work together to create a cohesive and compelling product presentation that can significantly influence consumer behavior.
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