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Business Studies: CUET Mock Test - 4 - CUET MCQ


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30 Questions MCQ Test CUET UG Mock Test Series 2026 - Business Studies: CUET Mock Test - 4

Business Studies: CUET Mock Test - 4 for CUET 2025 is part of CUET UG Mock Test Series 2026 preparation. The Business Studies: CUET Mock Test - 4 questions and answers have been prepared according to the CUET exam syllabus.The Business Studies: CUET Mock Test - 4 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 - 4 below.
Solutions of Business Studies: CUET Mock Test - 4 questions in English are available as part of our CUET UG Mock Test Series 2026 for CUET & Business Studies: CUET Mock Test - 4 solutions in Hindi for CUET UG Mock Test Series 2026 course. Download more important topics, notes, lectures and mock test series for CUET Exam by signing up for free. Attempt Business Studies: CUET Mock Test - 4 | 50 questions in 60 minutes | Mock test for CUET preparation | Free important questions MCQ to study CUET UG Mock Test Series 2026 for CUET Exam | Download free PDF with solutions
Business Studies: CUET Mock Test - 4 - Question 1
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Sun Pharmacy planned to sell 1 crore ‘Covicare’ tablets in a year. The company received good response from the market and sold 1.5 crore tablets in a year. Seeing the progress, the company decided to increase sales target to 2 crore tablets in a year.

Q. Which major benefit of planning has the company achieved?

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

Planning sets objectives and targets that serve as benchmarks for measuring actual performance. Since Sun Pharmacy revised its sales target after exceeding the initial plan, it shows how planning helps in setting standards for control.

Business Studies: CUET Mock Test - 4 - Question 2
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Identify the correct sequence of Fayol’s principles related to organisational structure and authority:
(A) Division of Work
(B) Authority and Responsibility
(C) Unity of Command
(D) Scalar Chain
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 2

Fayol’s principles concerning organisational structure and authority follow a logical order. Division of Work assigns tasks to specialists, followed by Authority and Responsibility to empower managers. Unity of Command ensures employees receive orders from one superior, and Scalar Chain establishes a formal line of authority. The correct sequence is Division of Work, Authority and Responsibility, Unity of Command, Scalar Chain. Hence, Option D is the correct choice.

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Business Studies: CUET Mock Test - 4 - Question 3
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Identify the correct sequence of impacts of demonetisation on the Indian economy:
(A) Decline in cash transactions
(B) Increase in financial savings
(C) Rise in income tax collection
(D) Growth in digital transactions
Choose the correct answer from the options given below:

Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 3
Demonetisation first led to a decline in cash transactions as high-denomination notes were invalidated. This spurred growth in digital transactions as people adopted cashless methods. Increased bank deposits resulted in higher financial savings, and greater transparency boosted income tax collection. Thus, the correct sequence is Decline in cash transactions, Growth in digital transactions, Increase in financial savings, Rise in income tax collection. Hence, Option C is the correct choice.
Business Studies: CUET Mock Test - 4 - Question 4
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Identify the correct sequence of features of planning:
(A) Planning is pervasive
(B) Planning is futuristic
(C) Planning involves decision making
(D) Planning is a primary function of management
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 4
Planning is first a primary function of management, as it lays the foundation for other managerial functions. It is pervasive, required at all levels and departments. Planning is futuristic, involving forecasting future conditions. Finally, it involves decision making by choosing among alternatives. Thus, the correct sequence is (D), (A), (B), (C). Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 4 - Question 5
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Identify the correct sequence of advantages of a functional structure:
(A) Occupational specialisation
(B) Promotes control and coordination
(C) Increases managerial efficiency
(D) Minimal duplication of effort
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 5

A functional structure first promotes occupational specialisation by grouping similar tasks, which enhances control and coordination within departments. This leads to increased managerial efficiency due to focused operations, and results in minimal duplication of effort, lowering costs. Thus, the correct sequence is (A), (B), (C), (D). Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 4 - Question 6
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Identify the correct sequence of stages in training and development for employees:
(A) Training
(B) Performance Appraisal
(C) Promotion and Career Planning
(D) Compensation
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 6

The training and development process starts with training to enhance employees’ skills and knowledge. This is followed by performance appraisal to evaluate their performance, promotion and career planning to provide growth opportunities, and compensation to reward their contributions. Thus, the correct sequence is Training, Performance Appraisal, Promotion and Career Planning, Compensation. Hence, Option A is the correct choice.

Business Studies: CUET Mock Test - 4 - Question 7
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Identify the correct sequence of principles of directing that ensure effective management of subordinates:
(A) Maximum Individual Contribution
(B) Harmony of Objectives
(C) Unity of Command
(D) Managerial Communication
Choose the correct answer from the options given below:
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 7

The principles of directing guide managers in effectively leading subordinates. Harmony of Objectives aligns individual and organizational goals first, followed by Unity of Command to ensure clear instructions from one superior. Maximum Individual Contribution then encourages employees to give their best, and Managerial Communication ensures clear and effective information flow. This sequence logically supports the directing process. Hence, Option C is the correct choice.

Business Studies: CUET Mock Test - 4 - Question 8
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The importance of understanding the business environment includes the following aspects:
(A) It enables firms to identify opportunities and gain a first-mover advantage.
(B) It helps firms ignore external threats to focus on internal operations.
(C) It assists in coping with rapid changes in market conditions.
(D) It supports planning and policy formulation by analyzing opportunities and threats.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 8
Understanding the business environment helps firms identify opportunities for first-mover advantage (A), cope with rapid market changes (C), and formulate plans and policies based on environmental analysis (D). However, it does not involve ignoring threats (B), as it emphasizes identifying and addressing them. Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 4 - Question 9
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The importance of planning lies in its ability to guide organizational activities. Which of the following statements highlight the benefits of planning?
(A) It reduces the risks of uncertainty by anticipating changes and preparing forecasts.
(B) It promotes innovative ideas by encouraging new plans as the first function of management.
(C) It ensures that all activities are performed without any coordination among departments.
(D) It establishes standards for controlling by setting goals against which performance is measured.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 9
Planning reduces uncertainty by forecasting changes, promotes innovative ideas as the first management function, and sets standards for controlling by defining goals. However, it does not lead to uncoordinated activities; it reduces overlapping and wasteful activities. Thus, (A), (B), and (D) are correct. Hence, Option B is the correct choice.
Business Studies: CUET Mock Test - 4 - Question 10
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The functional structure of an organisation has specific characteristics. Which of the following statements accurately describe its features?
(A) It groups activities based on functions like production, marketing, and finance.
(B) It promotes occupational specialisation, enhancing efficiency.
(C) It is suitable for organisations with a single product line and large scale.
(D) It allows each division to operate as an autonomous unit.

Which of the following options are correct?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 10
A functional structure groups activities by functions (A), promotes occupational specialisation (B), and is suitable for large organisations with a single product line (C). However, allowing divisions to operate autonomously (D) is a feature of a divisional structure, not a functional one. Hence, Option A is the correct choice.
Business Studies: CUET Mock Test - 4 - Question 11
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Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only for cash. In 2020, for the first time company’s number one position in the industry has been threatened because other companies started selling rice on credit also. But the managers of Super Fine Rice Ltd. continued to rely on its previously tried and tested successful plans which didn’t work because the environment is not static. This led to decline in sales of Super Fine Rice Ltd. The above situation is indicating limitation of planning which led to decline in it sales, Identify it.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 11

Super Fine Rice Ltd. stuck to its old plan despite market changes, which led to a decline in sales. This highlights how planning sometimes fails in a dynamic business environment.

Business Studies: CUET Mock Test - 4 - Question 12
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Specific attitudes that elected government representatives hold towards business is called.......... environment.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 12

Specific attitudes that elected government representatives hold towards business is called.......... environment.

  • The term used to describe the attitudes of elected officials towards business is the political environment.
  • This environment includes factors such as:
    • Government policies and regulations
    • Political stability and risk
    • Public opinion on business practices
  • Understanding the political environment is crucial for businesses as it influences their operations and strategies.
Business Studies: CUET Mock Test - 4 - Question 13
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Even though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future.
Which feature of the Business Environment is being highlighted in the above statement?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 13

The correct answer is C: Dynamic nature.

Explanation: The statement highlights how political conditions, which can change over time, affect an investor's sentiment and make it difficult to predict the future. This refers to the dynamic nature of the business environment, where external factors like political instability can shift unpredictably, affecting business decisions.

Business Studies: CUET Mock Test - 4 - Question 14
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Match List - I with List - II.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 14
  • A → 4: A goal-oriented process focuses on achieving organizational goals effectively.
  • B → 1: Efficiency is concerned with performing tasks in a way that optimizes resources and minimizes costs.
  • C → 3: Multidimensional management deals with the management of work, people, and operations across different departments.
  • D → 2: Continuous process refers to ongoing, interrelated management functions such as planning, organizing, and controlling.
Business Studies: CUET Mock Test - 4 - Question 15
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Non-discriminatory employment practices is the part of which dimension of business environment?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 15

Non-discriminatory employment practices fall under the legal dimension of the business environment. This aspect focuses on ensuring fairness and equality in hiring practices, protecting employees' rights, and adhering to anti-discrimination laws. Key points include:

  • Promoting equal opportunity for all candidates.
  • Ensuring compliance with relevant legislation.
  • Creating a fair workplace for employees.
Business Studies: CUET Mock Test - 4 - Question 16
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Earlier firms used to follow production orientation concept and now they study and analyse the market first and then produce the goods.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 16

Earlier firms focused on production orientation, whereas now they prioritize market analysis before producing goods.

In the past, companies primarily concentrated on manufacturing, assuming that products would sell themselves. Today, the approach has shifted significantly:

  • Market Research: Firms now conduct thorough research to understand consumer needs and preferences.
  • Consumer-Centric Production: Products are developed based on insights gathered from the market, ensuring they meet demand.
  • Competitive Advantage: This method allows businesses to stay ahead of competitors by adapting to market trends.

This evolution highlights the importance of aligning production with consumer expectations for sustained success.

Business Studies: CUET Mock Test - 4 - Question 17
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What is the principle of unity of command?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 17

Employees should receive orders from one superior 
The passage clearly states that unity of command means employees should only receive orders from one superior to avoid confusion.

Business Studies: CUET Mock Test - 4 - Question 18
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Why does Fayol stress the balance of authority and responsibility?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 18

To ensure that managers have enough power to fulfill their duties
Fayol emphasized that authority should match responsibility to ensure that managers can effectively fulfill their tasks.

Business Studies: CUET Mock Test - 4 - Question 19
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According to Fayol, what happens if the unity of command principle is violated?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 19

The passage explicitly states that violating the unity of command principle leads to confusion and inefficiency, as employees receiving orders from multiple superiors can create conflicting instructions.

Business Studies: CUET Mock Test - 4 - Question 20
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How does Fayol suggest balancing centralization and decentralization?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 20

By balancing both based on the situation
Fayol suggests that the balance between centralization and decentralization depends on the prevailing circumstances.

Business Studies: CUET Mock Test - 4 - Question 21
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Which of the following best describes why Fayol emphasized the unity of command principle?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 21

Answer: C
Fayol emphasized unity of command so that employees receive orders from only one superior, which helps avoid confusion and inefficiency.

Business Studies: CUET Mock Test - 4 - Question 22
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Understanding of business environment may assist an enterprise in planning and policy formulation.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 22

Understanding the business environment can greatly aid an enterprise in planning and developing policies.

  • Awareness of the business landscape helps identify opportunities and threats.
  • It allows for better allocation of resources and strategic decision-making.
  • Knowledge of market trends can enhance competitive advantage.
  • Understanding regulations and economic factors informs risk management.

Overall, a thorough grasp of the environment leads to more effective planning and policy creation.

Business Studies: CUET Mock Test - 4 - Question 23
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Identify the key elements of planning from the following statements:
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 23

The key elements of planning in management include determining the objectives, identifying alternative courses of action, and selecting the best course of action. These steps are fundamental in ensuring that planning is comprehensive and effective, making option (d) 'All of the above' the correct choice.

Business Studies: CUET Mock Test - 4 - Question 24
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Which of the following is a feature of planning?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 24

Features of Planning

  • Provides directions: Planning establishes a clear path to follow, guiding actions towards desired outcomes.
  • Reduces risks of uncertainty: By anticipating potential challenges, planning helps minimise unexpected issues.
  • Focuses on achieving objectives: It ensures that all efforts are directed towards reaching specific goals.

In summary, planning encompasses all these aspects, making it essential for effective management.

Business Studies: CUET Mock Test - 4 - Question 25
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Which of the following is not a step in the process of planning?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 25

Job allocation is part of the organising process, not the planning process. Here are the key distinctions:

  • Planning involves setting objectives and determining the actions needed to achieve them.
  • It includes activities such as making assumptions about the future and evaluating proposals.
  • Job allocation focuses on assigning tasks within departments, which falls under organizing.

Thus, while planning is crucial for guiding actions, job allocation is a separate step in management.

Business Studies: CUET Mock Test - 4 - Question 26
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A Co is manufacturing garments. The manager wants to increase profits by purchasing new high speed machines or increasing the sale price or using waste materials in manufacturing stuffed toys. He decided that “using waste material” is the best solution for him.

Identify the concept of management involved.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 26

The manager in a garment manufacturing company aims to boost profits through various strategies. He has considered three options:

  • Investing in new high-speed machines
  • Increasing the sale price of garments
  • Utilising waste materials to produce stuffed toys

After evaluation, he determined that using waste materials is the most effective solution. This decision demonstrates the concept of planning in management, as it involves setting goals and determining the best approach to achieve them.

Business Studies: CUET Mock Test - 4 - Question 27
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Rahul decided to start a desert cooler manufacturing business. He sets the target of earning 20% profit on sales in the first year. He was very much concerned about the future prospects of the business, which were uncertain. For this, he gathered information from the potential market and analysed that the demand for wall mounted coolers is increasing day by day. He used this information as the base for future planning. On the basis of the gathered information, he called a meeting in the following week to find new methods to achieve the objective.
Identify the function of management involved in the above case.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 27

Rahul is focused on achieving a 20% profit from his desert cooler manufacturing business. He has recognised the growing demand for wall-mounted coolers and is using this insight for future planning. He convened a meeting to explore new strategies to meet his objectives.

  • This scenario reflects the planning function of management.
  • Rahul's actions include:
    • Setting clear profit targets for the first year.
    • Gathering market information to inform decisions.
    • Analysing trends to identify opportunities.
    • Organising a meeting to strategise on achieving goals.
  • Overall, effective planning is crucial for navigating uncertainties in business.
Business Studies: CUET Mock Test - 4 - Question 28
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Gautama, Product Head at Ashok Leyland Limited, plans to make his company of the decade. For this purpose, he sets objectives, prepares strategies and other action plans keeping the internal as well as external forces in mind so that departments and individuals working in the organisation are able to decide what action should be taken and in which direction. Identify the importance of management highlighted in the case.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 28

Gautama, the Product Head at Ashok Leyland Limited, aims to transform his company into a leader within the decade by focusing on strategic planning.

  • Planning reduces uncertainty: By setting clear objectives and strategies, Gautama can anticipate challenges and prepare accordingly.
  • Planning reduces overlapping: A well-defined plan helps ensure that various departments work cohesively without duplicating efforts.
  • Planning provides direction: Establishing goals guides departments and individuals in choosing the right actions.
  • Planning facilitates decision-making: With a strategic framework in place, decisions can be made more efficiently and effectively.
Business Studies: CUET Mock Test - 4 - Question 29
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Which of the following steps in the process of planning states that the manager is required to make certain assumptions about the future?
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 29

The step in the planning process where a manager must make specific assumptions about the future is known as:

  • Developing premises

This step involves:

  • Identifying key factors that could influence future outcomes.
  • Formulating assumptions based on trends and data.
  • Creating a foundation for decision-making and strategy development.
Business Studies: CUET Mock Test - 4 - Question 30
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On the introduction of ‘Goods and Services Tax Act’, experts in the field of business started analysing and forecasting its impact on various sectors and industries. Kanha, an established businessman, attended a few seminars and conferences organised by such experts to familiarise himself with this information. He wanted to use these forecast and conjectures to reduce the uncertainty in making decisions for the future in his business.
Name the step in the planning process that is being discussed in the above paragraph.
Detailed Solution for Business Studies: CUET Mock Test - 4 - Question 30

The step in the planning process being discussed is:

  • Developing premises: This involves gathering and analysing information to make informed predictions about future conditions affecting the business.
  • Kanha's attendance at seminars indicates his effort to reduce uncertainty by understanding potential impacts on his industry.
  • This step is crucial as it establishes the foundation upon which future business decisions will be made.
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