Business Studies: CUET Mock Test - 4 - CUET MCQ

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): Managers need to be given some flexibility to be able to cope with the changed circumstances.
Reason (R): Planning reduces creativity.

The term ‘business environment’ means the sum total of

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

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?

Match List - I with List - II.

Non-discriminatory employment practices is the part of which dimension of business environment?

Earlier firms used to follow production orientation concept and now they study and analyse the market first and then produce the goods.

What is the principle of unity of command?

Why does Fayol stress the balance of authority and responsibility?

According to Fayol, what happens if the unity of command principle is violated?

According to Fayol, what happens if the unity of command principle is violated?

How does Fayol suggest balancing centralization and decentralization?

The cost of production increased due to increase in minimum wage rate by government is an economic dimension.

Telecom sector was opened up to private sector as a reform under Economic Policy, 1991. Nokia became the first cellular company to operate in 1994 and dominated the market. Later, it lost its market share and was absorbed by Microsoft. The management of Microsoft examined the environment and made suitable changes.Identify the point of importance of business environment with appropriate actions reflected in the above case.

Understanding of business environment may assist an enterprise in planning and policy formulation.

Identify the key elements of planning from the following.

Which of the following is a feature of planning?

Which of the following is not a step in the process of planning?

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.

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.

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.

Which of the following steps in the process of planning states that the manager is required to make certain assumptions about the future?

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.

“A plan is framed, it is implemented, and is followed by another plan, and so on.” Identify the feature/characteristic of planning highlighted above.

“Accurate forecasts become essential for successful plans.” Identify the step of one of the functions of management highlighted above.

“In financial plans, the risk-return trade-off is very common. The more risky the investment, the higher the returns it is likely to give. To evaluate such proposals, detailed calculations of earnings, earnings per share, interest, taxes, dividends are made and decisions taken.” Identify the step of planning function of management highlighted above.

Reliable communication limited scans the business environment and adapt itself to the changes in the environment, yet it becomes difficult to foresee the future trends. Which limitation of planning is related to the above statement?