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Business Studies: CUET Mock Test - 3 - CUET MCQ


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Business Studies: CUET Mock Test - 3 - Question 1

Identify the correct sequence of steps in the controlling function of management:
(A) Establishing standards
(B) Measuring performance
(C) Comparing performance with standards
(D) Taking corrective action
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 1
The controlling function involves setting standards to define expected performance, measuring actual performance, comparing it with the established standards, and taking corrective action to address deviations. This ensures organisational goals are met. Thus, the correct sequence is Establishing standards, Measuring performance, Comparing performance with standards, Taking corrective action. Hence, Option A is the correct choice.
Business Studies: CUET Mock Test - 3 - Question 2

Identify the correct sequence of Henri Fayol’s functions of management:
(A) Planning
(B) Organising
(C) Commanding
(D) Controlling
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 2

Henri Fayol outlined management functions in a sequential process. Planning involves setting objectives and strategies, followed by Organising to arrange resources. Commanding directs and motivates employees to execute plans, and Controlling ensures activities align with goals. The correct sequence is Planning, Organising, Commanding, Controlling. Hence, Option C is the correct choice.

Business Studies: CUET Mock Test - 3 - Question 3

Identify the correct sequence of economic reforms introduced in India in 1991:
(A) Liberalisation
(B) Privatisation
(C) Globalisation
(D) Reduction in public sector industries
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 3
The 1991 economic reforms began with liberalisation, removing licensing and restrictions. This was followed by reducing the number of industries reserved for the public sector (dereservation). Privatisation then encouraged private sector roles through disinvestment, and globalisation promoted foreign investment and trade liberalisation. Thus, the correct sequence is Liberalisation, Reduction in public sector, Privatisation, Globalisation. Hence, Option C is the correct choice.
Business Studies: CUET Mock Test - 3 - Question 4
Identify the correct sequence of types of plans based on their development and use:
(A) Objectives
(B) Strategy
(C) Policy
(D) Procedure
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 4
Objectives are set first as the desired future position of the organization. Strategy follows, outlining the broad plan to achieve objectives. Policy comes next, providing general guidelines for decision-making. Finally, procedure details the specific steps to carry out activities within the policy framework. Thus, the correct sequence is (A), (B), (C), (D). Hence, Option C is the correct choice.
Business Studies: CUET Mock Test - 3 - Question 5

Identify the correct sequence of benefits derived from effective organising:
(A) Benefits of specialisation
(B) Clarity in working relationships
(C) Optimum utilisation of resources
(D) Adaptation to change
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 5

Effective organising first leads to specialisation by systematically allocating jobs, followed by clarity in working relationships through defined reporting lines. This ensures optimum utilisation of resources by avoiding duplication, and finally enables adaptation to change by providing structural flexibility. Thus, the correct sequence is (A), (B), (C), (D). Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 3 - Question 6

Identify the correct sequence of activities in the recruitment process:
(A) Identifying sources of labour supply
(B) Assessing the validity of sources
(C) Choosing the most suitable source
(D) Inviting applications from prospective candidates
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 6

Recruitment involves first identifying different sources of labour supply, followed by assessing their validity to ensure they are reliable. Next, the most suitable source is chosen, and finally, applications are invited from prospective candidates. Thus, the correct sequence is Identifying sources of labour supply, Assessing the validity of sources, Choosing the most suitable source, Inviting applications from prospective candidates. Hence, Option C is the correct choice.

Business Studies: CUET Mock Test - 3 - Question 7
Recruitment is a key component of staffing and includes the following activities:
(A) Identifying various sources of labor supply, such as internal and external sources.
(B) Assessing the validity of recruitment sources to ensure reliability.
(C) Conducting performance appraisals to evaluate candidate suitability.
(D) Inviting applications from prospective candidates for vacant positions.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 7
Recruitment involves identifying sources of labor supply (A), assessing their validity (B), and inviting applications from prospective candidates (D). However, conducting performance appraisals (C) is part of the performance management process, not recruitment, as it evaluates existing employees, not candidates. Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 3 - Question 8

The role of top management includes which of the following:
(A) Formulating overall organisational goals and strategies.
(B) Directly overseeing the workforce to ensure quality output.
(C) Integrating diverse elements and coordinating departmental activities.
(D) Implementing plans and policies developed by middle management.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 8

(A) Formulating overall organisational goals and strategies.

  • Top management (e.g., CEOs, Board of Directors) is responsible for setting long-term objectives, vision, and strategic direction for the organization.

(C) Integrating diverse elements and coordinating departmental activities.

  • Top management ensures that different departments (finance, marketing, operations) work together toward common goals through coordination and integration.

Incorrect Options:

(B) Directly overseeing the workforce to ensure quality output.

  • This is the role of supervisory/lower-level management, not top management.

(D) Implementing plans and policies developed by middle management.

  • Implementation is primarily handled by middle and lower management. Top management focuses on strategy formulation, not execution.

Final Answer:

A & C (Formulating goals/strategies and integrating/coordinating activities).

Business Studies: CUET Mock Test - 3 - Question 9
Henri Fayol’s principles of management focus on administrative efficiency. Which of the following statements align with his principles?
(A) Workers should receive orders from multiple superiors to ensure flexibility in decision-making.
(B) Each group of activities with the same objective should have one head and one plan.
(C) Individual interests should always take precedence over organizational goals.
(D) A formal chain of authority should exist from top to bottom, with provisions for direct communication in emergencies.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 9
Fayol’s principles include Unity of Direction, where each group of activities with the same objective has one head and one plan (B is correct), and Scalar Chain, which establishes a formal line of authority with a “gang plank” for direct communication in emergencies (D is correct). However, Unity of Command states that workers should receive orders from only one superior (A is incorrect), and Subordination of Individual Interest prioritizes organizational goals over individual ones (C is incorrect). Thus, Option B is the correct choice.
Business Studies: CUET Mock Test - 3 - Question 10

Which of the following is the feature of business environment?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 10

The business environment is characterized as a relative concept because it varies from one country to another and even within regions. Unlike advantages or benefits, which focus on what businesses can gain, this feature highlights the variability and contextual differences inherent in business environments across different locations.

Business Studies: CUET Mock Test - 3 - Question 11

Which of the following best indicates the importance of business environment?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 11

The business environment is crucial because it helps in identifying opportunities and threats (A), improving performance by adapting to changes (B), and coping with rapid changes in the market (C). Thus, "All of the above" (D) is the best answer.

Business Studies: CUET Mock Test - 3 - Question 12

“The increase in the demand for many Ayurvedic medicines, Health products and services in the past few months, is related to the need for building immunity and an increased awareness for healthcare due to the spread of Corona virus.” Identify the feature of business environment being described above.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 12

Inter-relatedness refers to how different elements of the business environment (e.g., health awareness and demand for Ayurvedic products) are interconnected and influence each other. This fits the scenario described.

Business Studies: CUET Mock Test - 3 - Question 13

Since more number of people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics.Related feature of business environment being described in the above lines is

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 13

The rise in health and beauty consciousness (social factor) leading to more spas and clinics shows how different elements of the environment are inter-related, making C the correct choice.

Business Studies: CUET Mock Test - 3 - Question 14

With the introduction of mineral water bottle in India, Aqua was able to capture the big market share in India.Which importance of business environment is highlight in the above case.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 14

Aqua identified the opportunity for mineral water and acted first, gaining a competitive edge. This highlights the importance of the business environment in spotting opportunities and securing a first-mover advantage.

Business Studies: CUET Mock Test - 3 - Question 15

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

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 15

The case of Yo Tummy adapting to customer demand for healthier foods highlights the importance of the business environment in helping firms cope with rapid changes (A). By responding to shifting consumer preferences, Yo Tummy maintained its customer base.

Business Studies: CUET Mock Test - 3 - Question 16

The Rajasthan government has developed surveillance network using latest satellite technology. Under this system, the state’s mining department would be in a position to check illegal mining activities across the state. The state government is also considering the use of drones in its proposed campaign against illegal mining. Identify the related dimensions of business environment.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 16

The development of a surveillance network using the latest satellite technology and the proposed use of drones to monitor illegal mining activities are examples of the technological dimension of the business environment. The technological dimension refers to the ways in which technological advancements impact businesses and their operations.

The involvement of the Rajasthan government in implementing this surveillance network and using drones to combat illegal mining activities is an example of the political dimension of the business environment. The political dimension refers to the ways in which government policies, regulations, and actions impact businesses and their operations.

Therefore, the related dimensions of the business environment in this scenario are the technological dimension and the political dimension.

Business Studies: CUET Mock Test - 3 - Question 17

Which of the following statements is true with respect to the political environment?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 17

The political environment includes factors like political stability, peace, and government policies (C). Option A refers to the social environment, and option B refers to the technological environment, making C the correct choice.

Business Studies: CUET Mock Test - 3 - Question 18

In accordance with the economic planning, the government of India gave a lead role to the public sectors for infrastructure industries whereas the private sectors was broadly given the responsibility of developing consumer goods industry. At the same time, the government imposed several restrictions, requisitions and controls on the working of private sector enterprises. Identify the dimension(s) of business environment highlighted above.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 18

Economic (public/private sector roles), legal (restrictions/controls), and political (government planning) dimensions are all highlighted in the scenario, making D correct.

Business Studies: CUET Mock Test - 3 - Question 19

What is Toyota's main focus in its business operations?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 19

Adhering to laws and fostering community development
The passage emphasizes Toyota’s commitment to legal compliance and contributing to local community development, making this the correct focus.

Business Studies: CUET Mock Test - 3 - Question 20

How does Toyota aim to enhance its global vision?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 20

Through fostering sustainable growth and community respect 
The passage clearly mentions Toyota's global vision, which includes sustainable growth and respect for cultural customs.

Business Studies: CUET Mock Test - 3 - Question 21

Which of the following principles is central to Toyota’s corporate values?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 21

Fostering individual creativity and teamwork 
The passage mentions fostering individual creativity and teamwork as one of the key principles of Toyota’s corporate culture.

Business Studies: CUET Mock Test - 3 - Question 22

What type of technologies does Toyota prioritize according to the passage?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 22

Environmentally friendly technologies
Toyota is focused on developing environmentally friendly technologies, as mentioned in the passage.​​​​​​​

Business Studies: CUET Mock Test - 3 - Question 23

Toyota's principles are designed to guide the company toward which objective?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 23

Long-term growth with respect for society 
The passage discusses Toyota’s aim for sustainable and socially responsible growth.​​​​​​​

Business Studies: CUET Mock Test - 3 - Question 24

Management audit is a technique to keep a check on the performance of

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 24

Answer: B

Management Audit and its Purpose
- Management audit is a technique used to assess and evaluate the performance of the management of a company.
- The purpose of a management audit is to identify strengths, weaknesses, and areas for improvement in the management practices and processes of a company.
Key Components of a Management Audit
- Structure and Organization: The audit assesses the organizational structure of the company, including the roles and responsibilities of the management team.
- Decision-Making Processes: The audit evaluates the decision-making processes followed by the management, including the involvement of key stakeholders and the use of data and analysis.
- Communication and Collaboration: The audit examines how effectively the management communicates and collaborates with employees, shareholders, and other stakeholders.
- Performance Evaluation: The audit assesses the performance evaluation methods used by the management to measure the effectiveness of their strategies and initiatives.
- Risk Management: The audit evaluates the management's approach to identifying, assessing, and mitigating risks that may impact the company's performance.
- Financial Management: The audit examines the financial management practices of the company, including budgeting, cost control, and financial reporting.
Target Audience of a Management Audit
- The primary target audience of a management audit is the management team of the company.
- The audit helps the management team to identify areas for improvement and make informed decisions to enhance their performance.
- The audit also serves as a tool for the board of directors and shareholders to assess the effectiveness of the management team and hold them accountable.
Conclusion
- A management audit is a valuable tool to assess and evaluate the performance of the management team of a company.
- It helps in identifying areas for improvement and making informed decisions to enhance the overall performance of the company.

Business Studies: CUET Mock Test - 3 - Question 25

Budgetary control requires the preparation of

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 25

Answer: B

Budgetary control technique of managerial control involves the preparation of budgets for each operation of the organisation and then comparing the realised results with the budgetary standards.  budget is a quantitative statement defining the objectives to be achieved in a specified time period and the policies to be followed.

Business Studies: CUET Mock Test - 3 - Question 26

Which of the following is not a technique of controlling?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 26

Answer: c

To understand which is not a technique of controlling, consider the following:

  • Break-even analysis: Used to determine when a business will be able to cover all its expenses and begin to make a profit. It is a control tool for evaluating financial performance.
  • Budget: A financial plan that outlines expected revenues and expenses. It acts as a guide to control financial resources.
  • Managerial Audit: An internal review process to evaluate the efficiency and effectiveness of management. It helps in controlling by ensuring that management practices meet organisational goals.
  • Cash Flow Statement: A financial statement showing cash inflows and outflows. It provides insights into the financial health of a business but is not primarily a control tool.

The Cash Flow Statement is not primarily used as a technique of controlling, unlike the other options.

Business Studies: CUET Mock Test - 3 - Question 27

Planning gives direction, reduces the impact of change, minimises waste and redundancy and

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 27

Planning provides direction by stating in advance how work is to be done, reduces the impact of change, minimizes waste and redundancy, and sets standards used in controlling. By establishing goals, budgets, and performance metrics, planning provides the benchmarks against which actual performance is measured during the controlling process. Thus, option D is correct.

Business Studies: CUET Mock Test - 3 - Question 28

“All other managerial functions are performed within the framework of the plans drawn. Thus, it can be said that planning preceeds other functions.” This statement describes which function of planning?

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 28

The statement highlights the primacy of planning, which means planning is the first managerial function that precedes all others, such as organizing, staffing, directing, and controlling. By formulating plans first, it provides the foundation for all other functions, ensuring coordinated action. Thus, option C is correct

Business Studies: CUET Mock Test - 3 - Question 29

‘Bawa Cycles’ was in the business of manufacturing racing cycles and had a monopoly in the market. The business was doing well and the company was consistently meeting its objective of 10% increase in sales every year. Encouraged by the good track record, the Managing Director of the company kept an ambitious target of 15% increase in sales for the next year. The same year, two competitors also entered the market and because of this the company was not able to meet target. Identify the limitation of one of the functions of management because of which the company was not able to achieve its target.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 29

The entry of competitors (dynamic environment) disrupted the plan, showing that planning struggles in unpredictable conditions.

Business Studies: CUET Mock Test - 3 - Question 30

“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 department.” Identify the feature/characteristic of planning highlighted above.

Detailed Solution for Business Studies: CUET Mock Test - 3 - Question 30

Pervasive means planning occurs at all levels and departments, as described.

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