Business Studies

N.C.E.R.T Solutions

M.C.Q.

M.C.Q. 1. Which is not a function of management of the following?
A. Planning B. Cooperating
C. Staffing D. Controlling
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M.C.Q. 2. Management is:
A. An art B. A science
C. Both art and a science D. Neither Science nor an art
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M.C.Q. 3. The following is not an objective of management.
A. Earning profits B. Growth of the organisation
C. Policy making D. Providing employment
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M.C.Q. 4. Policy formulation is the function of:
A. Top level managers B. Operational management
C. Middle level managers D. All of the above
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M.C.Q. 5. Coordination is:
A. Function of management B. An objective of management
C. The essence of management D. None of the above
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M.C.Q. 6. Which level of management keeps its focus on staffing and coordination?
A. Top level management B. Middle level management
C. Lower level of management D. All of the above
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M.C.Q. 7. Which is the first and primary function of management?
A. Controlling B. Organising
C. Staffing D. Planning
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M.C.Q. 8. Which is not the element of coordination?
A. Planning B. Integration
C. Timing D. Balancing
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M.C.Q. 9. Which is not the function of top level management?
A. Determining the objectives of the enterprise B. Framing plans and policies of the enterprise
C. Laison with outside world D. Motivating the employees to perform to their best ability
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M.C.Q. 10. Which is not the function of lower level management?
A. Selecting and appointing employees of its department B. Boosting the morale of the workers and developing the team spirit in them
C. Maintaining good working conditions D. Maintaining precise standard of quality and ensuring steady flow of output
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M.C.Q. 11. Which consists of middle level management?
A. Finance Manager B. Foreman
C. Supervisor D. Chairman
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M.C.Q. 12. Which is correct statement?
A. There exists the ethical codes in management B. There is restricted entry to management
C. Management is an exact science D. Management is a systematic body of knowledge
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M.C.Q. 13. Which is the organisational objective of management?
A. Earning adequate amount of profit B. Supplying quality products at reasonable prices
C. Financial support to community D. Creating good and healthy conditions
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M.C.Q. 14. Which statement is correct?
A. There is no difference between effectiveness and efficiency B. There is no difference between coordination and cooperation
C. Effectiveness and efficiency together lead to higher profit and prosperity of an organisation D. Only effectiveness leads to higher profit and prosperity of an organisation
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M.C.Q. 15. Principle of management are NOT
A. Universal B.  Flexible
C. Behavioural D. Absolute
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M.C.Q. 16. How are management formed:
A. In a laboratory B. By experience of customers
C. By experiences of managers D. By propagation of social scientists
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M.C.Q. 17. The principles of management are significant because of
A. Increase in efficiency B. Optimum utilization of resources
C. Initiative D. Adaptation to changing technology
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M.C.Q. 18. Henry Fayol was a
A. Social scientist B. Accountant
C. Mining engineer D. Production engineer
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M.C.Q. 19. Which of the following statement best describes the principle of "Division of Work"?
A. Work should be divided into small tasks B. It leads to specialisation
C. Resources should be divided among jobs D. Labour should be divided
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M.C.Q. 20. "She/he keeps machines, materials, tools etc. ready for operations by concerned workers." Whose work is described by this sentence under functional foremanship?
A. Instruction Card Clerk B. Gang Boss
C. Repair Boss D. Route Clerk
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M.C.Q. 21. Which of the following is NOT a principle of management given by Taylor?
A. Science, not rule of the thumb B. Maximum, not restricted output
C. Functional foremanship D. Harmony, not discord
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M.C.Q. 22. Management should find "One best way" to perform a task. Which technique of scientific management is defined in this sentence?
A. Time study B. Method study
C. Motion study D. Fatigue study
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M.C.Q. 23. Which of the following statements best describes
A. The management and workers should not play the game of one upmanship B. It implies change of attitude
C. Both management and workers require each other workers should be paid more wages D. Functional foremanship
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M.C.Q. 24. Which of the following does not characterise the business environment?
A. Uncertainty B. Employees
C. Relativity D. Complexity
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M.C.Q. 25. Which of the following best indicates the importance of business environment?
A. Identification B. Improvement in performance
C. Coping with rapid changes D. All of them
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M.C.Q. 26. Which of the following is an example of social environment?
A. Money supply in the economy B. Consumer Protection Act
C. The constitution of the country D. Composition of family
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M.C.Q. 27. Liberalisation means:
A. Integration among economies B. Reduced government controls and restrictions
C. Policy of planned disinvestment D. None of them
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M.C.Q. 28. Which of the following does not explain the impact of government policy changes on business and industry?
A. More demanding customers B. Increasing competition
C. Change in agricultural prices D. Market orientation
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M.C.Q. 29. Which is not true in case of planning?
A. Planning is pervasive B. Planning is not a costly process
C. Planning is a mental exercise D. Planning is focuses on achieving objectives
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M.C.Q. 30. Which is not one of the processes of planning?
A. Setting objectives B. Identifying alternative courses
C. Selecting the most feasible, profitable alternatives D. Controlling the activities
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M.C.Q. 31. A good plan should be:
A. Expensive B. Elastic
C. Time consuming D. Rigid
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M.C.Q. 32. Planning means:
A. Deciding in advance what to do in future B. Reducing uncertainties
C. Encouraging innovation D. All above
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M.C.Q. 33. Steps involved in planning process:
A. Setting objectives B. Identifying the alternative courses of action
C. Evaluating alternative courses and selecting the best one D. All the above
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M.C.Q. 34. Procedure is:
A. Taking important decisions of an institution B. Operating daily activities
C. Preparing outline of business institution D. Selecting the suppliers
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M.C.Q. 35. Programme is:
A. A general process for specific situation B. Selecting the sellers
C. A detailed description of a project D. A specific statement
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M.C.Q. 36. Strategy:
A. Sets short-term objectives B. Presents basis of analysis
C. Presents an outline of a business institution D. Implements the plan
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M.C.Q. 37. Which of the following is not an element of delegation?
A. Accountability B. Authority
C. Responsibility D. Informal organisation
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M.C.Q. 38. A network of social relationship that arise spontaneously due to interaction at work is called:
A. Formal organisation B. Informal organisation
C. Decentralisation D. Delegation
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M.C.Q. 39. Which of the following does not follow the scalar chain?
A. Functional structure B. Divisional structure
C. Formal organisation D. Informal organisation
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M.C.Q. 40. A tall structure has a:
A. Narrow span of management B. Wide span of management
C. No span of management D. Less levels of management
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M.C.Q. 41. Centralization refers to:
A. Retention of decision-making authority B. Dispersal of decision-making authority
C. Creating divisions as profit centres D. Opening new centres or branches
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M.C.Q. 42. For delegation to be effective, ii is essential that responsibility be accompanied with necessary:
A. Authority B. Manpower
C. Incentives D. Promotions
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M.C.Q. 43. Span of management refers to:
A. Number of managers B. Length of term for which a manager is appointed
C. Number of subordinates under a superior D. Number of members in top management
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M.C.Q. 44. The form of organisation known for giving rise to rumours is called
A. Centralised organisation B. Decentralised organisation
C. Informal organisation D. Formal organisation
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M.C.Q. 45. Grouping of activities on the basis of product lines is a part of:
A. Delegated organisation B. Divisional organisation
C. Functional organisation D. Autonomous organisation
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M.C.Q. 46. Grouping of activities on the basis of functions is a part of:
A. Decentralised organisation B. Divisional organisation
C. Functional organisation D. Centralised organisation
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M.C.Q. 47. Which one of the following is not an element of direction?
A. Motivation B. Communication
C. Delegation D. Supervision
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M.C.Q. 48. The motivation theory which classifies needs in hierarchical order is developed by:
A. Fred Luthans B. Scott
C. Abraham Maslow D. Peter F. Drucker
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M.C.Q. 49. Which of the following is a financial incentive?
A. Promotion B. Stock incentive
C. Job Security D. Employee participation
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M.C.Q. 50. Which of the following is not an element of communication process?
A. Decoding B. Communication
C. Channel D. Receiver
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M.C.Q. 51. Grapevine is:
A. Formal communication B. Barrier to communication
C. Lateral communication D. Informal communication
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M.C.Q. 52. Status comes under the following type of barriers:
A. Semantic barrier B. Organisational barrier
C. Non-semantic barrier D. Psychological barrier
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M.C.Q. 53. The software company promoted by Narayan Murthy is:
A. Wipro B. Infosys
C. Satyam D. HCL
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M.C.Q. 54. The highest level need in the Need Hierarchy of Abraham Maslow:
A. Safety need B. Belongingness need
C. Self-actualization need D. Prestige need
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M.C.Q. 55. The process of converting the message into communication symbols is known as
A. Media B. Encoding
C. Feedback D. Decoding
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M.C.Q. 56. The communication network in which all subordinate under a supervisor communicate though supervisor only is
A. Single Chain B. Inverted V
C. Wheel D. Free Flow
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M.C.Q. 57. An efficient control system helps to:
A. Accomplishes organisational objectives B. Boosts employee morale
C. Judges accuracy of standards D. All of the above
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M.C.Q. 58. Controlling function of an organisation is:
A. Forward looking B. Backward looking
C. Forward as well as backward looking D. None of the above
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M.C.Q. 59. Management audit is a technique to keep a check on the performance of:
A. Company B. Management of the company
C. Shareholders D. Customers
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M.C.Q. 60. Budgetary control requires the preparation of:
A. Training schedule B. Budgets
C. Network diagram D. Responsibility centres
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M.C.Q. 61. Which of the following is not applicable to responsibility accounting:
A. Investment centre B. Andocentric centre
C. Profit centre D. Cost centre
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M.C.Q. 62. The cheapest source of finance is:
A. Debenture B. Equity share capital
C. Preference share D. Retained earning
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M.C.Q. 63. A decision to acquire a new and modern plant to upgrade an old one is a:
A. Financing decision B. Working capital decision
C. Investment decision D. None of the above
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M.C.Q. 64. Other things remaining the same, an increase in the tax rate on corporate profit will:
A. Make the debt relatively cheaper B. Make debt relatively the dearer
C. Have no impact on the cost of debt D. We cannot say
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M.C.Q. 65. Companies with a higher growth pattern are likely to:
A. Pay lower dividends B. Pay higher dividends
C. Dividends are not affected by growth considerations D. None of these
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M.C.Q. 66. Financial leverage is called favourable if:
A. Return on investment is lower than cost of debt B. ROI is higher than the cost of debt
C. Debt is easily available D. If the degree of existing financial leverage is low
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M.C.Q. 67. Higher debt-equity ratio results in Debt- Equity
A. Lower financial risk B. Higher degree of operating risk
C. Higher degree of financial risk D. Higher EPS
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M.C.Q. 68. Higher working capital usually results in:
A. Higher current ratio, higher risk and higher profits B. Lower current ratio, higher risk and profits
C. Higher equity, lower risk and lower profits D. Lower equity, lower risk an higher profits
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M.C.Q. 69. Current assets are those asset which get converted into cash:
A. Within six months B. Within one year
C. Between one and three years D. Between three and five years
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M.C.Q. 70. Financial planning arrives at:
A. Minimising the external borrow by resorting the equity issues B. Ensuring that the firm always significantly more fund than required so that there is paucity of funds
C. Ensuring that the firm faces neither a shortage nor a glut unusable funds D. Doing only what is possible the funds that the firms has at disposal
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M.C.Q. 71. Higher dividend per share is associated with:
A. High earnings, high cash flows, unstable earnings and higher growth opportunities B. High earnings, high cash flows, stable earnings and higher growth opportunities
C. High earnings, high cash flows, stable earnings and lower growth opportunities D. High earnings, low cash flows, stable earnings and lower growth opportunities
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M.C.Q. 72. A fixed asset should be financed through
A. A long term liability B. Short term liability
C. A mix of long term and short term liabilities D. Non of the Above
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M.C.Q. 73. Current assets of a business firm should be financed through
A. Current liability only B. Long term liability
C. Both types (long term and short term liabilities) D. None of the above
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M.C.Q. 74. Primary and secondary markets:
A. Compete with each other B. Complement to each other
C. Function independently D. Control each other
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M.C.Q. 75. Total number of stock exchanges in India is:
A. 20 B. 21
C. 22 D. 23
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M.C.Q. 76. The settlement cycle in NSE is:
A. T + 5 B. T + 3
C. T + 2 D. T + 1
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M.C.Q. 77. National Stock Exchange of India was recognised as stock exchange in the year:
A. 1992 B. 1993
C. 1994 D. 1995
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M.C.Q. 78. NSE commenced futures trading in the year:
A. 1999 B. 2000
C. 2001 D. 2002
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M.C.Q. 79. Clearing and settlement operations of NSE is carried out by:
A. N.S.D.L B. N.S.C.C.L
C. S.B.I D. C.D.S.L
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M.C.Q. 80. OTCEI was started on the lines of:
A. NASDAQ B. NYSE
C. NASAQ D.  NSE
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M.C.Q. 81. To be listed on OTCEI, the minimum capital requirement for a company is:
A. Rs. 5 crores B. Rs. 3 crores
C. Rs. 6 crores D. Rs. 1 crore
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M.C.Q. 82. A treasury bill is basically
A. An instrument to borrow short term funds B. An instrument to borrow long term funds
C. An instrument of capital market D. None of the above
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M.C.Q. 83. Marketing is:
A. It is merely a post production activity B. It does not include any activity except of selling
C. It is described as performance of business activities that direct the flow of goods and services from producers to consumers D. There is no difference between marketing and selling
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M.C.Q. 84. Marketing and selling are:
A. Complementary to each other B. Selling is a part of marketing
C. Selling is a wider concept D. Marketing is a narrower concept
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M.C.Q. 85. The concepts of marketing management are:
A. Product concept B. Selling concept
C. Marketing concept D. All of the above
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M.C.Q. 86. Functions of marketing include:
A. Gathering and analysing market information B. Product designing and development
C. Standardisation, grading, packaging and labelling D. All of the above
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M.C.Q. 87. Marketing mix is a combination of:
A. Product B. Price
C. Place and physical distribution D. All of the above
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M.C.Q. 88. Generic names:
A. It is the name of the whole class of the product B. It is a particular name
C. It belongs to a particular quality D. It may belongs to a brand
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