R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Business Studies Set-1

__ involves harmony and team spirit among employees.

1. Discipline
2. Esprit de corps
3. Order
4. Standardisation

✅ Correct Answer: 2

Principles of management are not

1. behavioural.
2. absolute
3. universal.
4. flexible

✅ Correct Answer: 2

Principles of management provide

1. readymade solutions to problems.
2. general guidelines.
3. methods and procedures.
4. rules and regulations.

✅ Correct Answer: 2

Management principles differ from pure science principles because management principles are

1. vague.
2. situation-bound.
3. rigid.
4. easy to learn.

✅ Correct Answer: 2

Principles of management are significant because these result in

1. taking initiative.
2. adapting to new technology.
3. employee satisfaction.
4. optimum utilisation of resources.

✅ Correct Answer: 4

Which one of the following is not a principle of scientific management?

1. Functional foremanship
2. Development of personnel
3. Harmony, not discord
4. Maximum, not restricted output

✅ Correct Answer: 1

Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?

1. Time Study
2. Method Study
3. Fatigue Study
4. Motion Study

✅ Correct Answer: 2

Unity of command is related to

1. superiors and subordinates.
2. management and workers.
3. planned actions.
4. cooperation among employees

✅ Correct Answer: 1

Gang plank is related to

1. communication.
2. motivation
3. supervision of workers.
4. incentives to workers

✅ Correct Answer: 1

Management principles are flexible whereas ___ principles are rigid.

1. Pure Science
2. Employment
3. Scientific Management
4. Art

✅ Correct Answer: 1

___ denotes concentration of authority at the top level.

1. Decentralisation
2. Centralisation
3. Coordination
4. Delegation

✅ Correct Answer: 2

___ is the technique in which each worker is supervised by eight supervisors.

1. Functional foremanship
2. Unity of action
3. Centralisation
4. Simplification of work

✅ Correct Answer: 1

___ principle of management puts emphasis on judicious application of penalties by the management.

1. Esprit de corps
2. Order
3. Division of work
4. Discipline

✅ Correct Answer: 4

___ principle of management states that there should be a place for everything and everything should be in its place.

1. Equity
2. Discipline
3. Order
4. Esprit de corps

✅ Correct Answer: 3

____ means one plan, one boss.

1. Unity of direction
2. Unity of command
3. Centralisation
4. Gang plank

✅ Correct Answer: 1

Which one of the following is not a feature of business environment?

1. Uncertainty
2. Interdependence
3. Complexity
4. Stability

✅ Correct Answer: 4

Which one of the following is a part of economic environment?

1. Public debt
2. Lifestyle of people
3. Technological changes
4. Level of education

✅ Correct Answer: 1

Proper understanding of business environment is not a prerequisite for

1. tapping of useful resources.
2. identification of opportunities and threats.
3. formulation of strategies.
4. better coordination of employee efforts.

✅ Correct Answer: 3

Globalisation means

1. reduced role of public sector
2. integration of economies
3. lowering interest rates
4. control of inflation

✅ Correct Answer: 2

Which one of the following is the impact of Government policy changes on business and industry?

1. Increase in agricultural productivity
2. Increase in product prices
3. Increase in competition
4. Increase in urbanisation

✅ Correct Answer: 3

___ nature of business environment suggests that environment keeps on changing.

1. Dynamic
2. Pervasive
3. Continuous
4. Multidimensional

✅ Correct Answer: 1

___ is the integration of world economy into a single market through removal of trade barriers between countries.

1. Privatisation
2. Liberalisation
3. Globalisation
4. Both(a) and (b)

✅ Correct Answer: 3

___ feature of business environment states that various factors of business environment affect each other.

1. Pervasive
2. Continuous
3. Dynamic
4. Interrelatedness

✅ Correct Answer: 4

Legal rules and regulations relevant to business are included in ___ environment of business.

1. Legal
2. Political
3. Economic
4. Technological

✅ Correct Answer: 1

The Government of India launched “Make in India” initiative in September, 2014 to increase foreign direct investment (FDI) in 25 sectors. As of April, 2015, FDI inflow in India increased by 48% since the launch of “Make in India” initiative. Identify the concept being described in the above lines, with regard to inflow of FDI.

1. Demonetisation
2. Privatisation
3. Liberalisation
4. Globalisation

✅ Correct Answer: 3

According to a report by the India Staffing Federation (ISF), India has emerged as the fifth largest market worldwide in flexi-staffing in 2018 and the country would have 6.1 million flexi-workforce by 2021. It showed that Haryana, Gujarat, Karnataka, Madhya Pradesh and Telangana are the states with high growth potential for flexi- staffing but Andhra Pradesh tops the list of states with favourable business environment. Identify the feature of business environment being discussed above,

1. Relativity
2. Dynamic nature
3. Uncertainty
4. Interrelatedness

✅ Correct Answer: 1

In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down cost of capital and simplify regulatory and tax framework. Identify the related dimension of business environment.

1. Social dimension and Legal dimension
2. Technological dimension and Political dimension
3. Political dimension and Social dimension
4. Economic dimension and Legal dimension

✅ Correct Answer: 1

Pervasiveness of planning indicates that planning

1. is a top management function.
2. extends throughout the organisation.
3. is a future-oriented activity.
4. is the first element of management process.

✅ Correct Answer: 2

Which one of the following is an importance of planning?

1. Reducing uncertainty
2. Identifying alternatives critically
3. Developing leadership
4. Selecting the most appropriate plan

✅ Correct Answer: 1

Which one of the following is not a limitation of planning?

1. Dynamic environment
2. Costly process
3. Rigidity
4. Top management approach

✅ Correct Answer: 4

Which one of the following is a step of planning?

1. Analysis of organisation structure
2. Analysis of environment
3. Analysis of employee behaviour
4. Analysis of employee morale

✅ Correct Answer: 2

The basic role of strategy is to provide

1. setting procedures.
2. direction for action
3. direction for motivation.
4. direction for control

✅ Correct Answer: 2

Which one of the following plans prescribes chronological steps for performing activities?

1. Procedure
2. Rule
3. Policy
4. Method

✅ Correct Answer: 1

Which one of the following is a single-use plan?

1. Strategy
2. Rule
3. Budget
4. Method

✅ Correct Answer: 3

Decision-making is the case of __

1. Planning
2. Organising
3. Staffing
4. Directing

✅ Correct Answer: 1

__ is a statement of expected results in numerical terms.

1. Forecast
2. Budget
3. Plan
4. Estimate

✅ Correct Answer: 2

___ is a feature of planning also referred to as primacy of planning.

1. Pervasive
2. Primary function of management
3. Continuous
4. Integrating

✅ Correct Answer: 2

___ is a comprehensive plan for achieving its objectives.

1. Strategy
2. Method
3. Rule
4. Policy

✅ Correct Answer: 1

___ is the type of plan which is time-bound and linked with measurable outcome.

1. Strategy
2. Policy
3. Rule
4. Budget

✅ Correct Answer: 4

___ is a standardised way or manner of performing a routine activity considering its objectives.

1. Procedure
2. Method
3. Rule
4. Programme

✅ Correct Answer: 2

___ specifies the end to be achieved.

1. Objective
2. Strategy
3. Policy
4. Method

✅ Correct Answer: 1

___ are relevant to recurring activities.

1. Single-use plans
2. Standing plans
3. Objectives
4. Programmes

✅ Correct Answer: 2

In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others. Identify the type of plan being described in the above lines.

1. Method
2. Strategy
3. Programme
4. Procedure

✅ Correct Answer: 2

The government has been doubling down on its efforts to switch to 100% electric vehicles by 2030. Many companies such as Tata Motors, Kinetic Motors, Maruti Suzuki and Hyundai Motors are all readying their EV models for a 2020 launch in order to support the plan. Identify the type of plan being described in the above lines.

1. Method
2. Strategy
3. Programme
4. Objective

✅ Correct Answer: 2

Based on National Common Mobility Card standards, India’s first indigenously developed inter-operable transport card was launched in March 2019 to make travel across various modes convenient. Identify the type of plan being described in the above lines.

1. Strategy
2. Programme
3. Method
4. Rule

✅ Correct Answer: 1

Organising process includes one of the following:

1. Grouping of activities
2. Prescribing disciplinary action
3. Determining objectives
4. Prescribing work schedule

✅ Correct Answer: 1

One of the following is not an importance of organising:

1. Role clarity
2. Performance appraisal
3. Adaptation to change
4. Growth and expansion

✅ Correct Answer: 2

Organisation structure establishes relationships between

1. organisation and environment.
2. people, work and resources.
3. organisation and society.
4. suppliers and customers.

✅ Correct Answer: 2

One of the following is an advantage of functional structure:

1. Responsibility for end results
2. Flexibility
3. Personalised attention
4. Easier employee learning

✅ Correct Answer: 4

Divisional structure leads to conflict in

1. resource allocation.
2. marketing management.
3. motivation.
4. planning process.

✅ Correct Answer: 1