CUET Business Studies Sample Paper Set A

Question. ............... is concerned with the performance of various activities/tasks in an organisation.
a) Management of people
b) Management of operations
c) Management of work
d) Management of individuals

Answer : C

Question. Every manager applies his personal skills and knowledge in the day-to-day functioning of an enterprise. It is proved because
a) management is an art
b) management is a science
c) management is a profession
d) None of the above

Answer : A

Question. Which of the following functions are required to be carried out for successfully establishing coordination?
a) Planning and directing
b) Organising
c) Staffing
d) All of the above

Answer : D

Question. CEO is at which level of management in a company?
a) All levels of management
b) Supervisory level of management
c) Middle level of management
d) Top level of management

Answer : D

Question. Identify the technique of scientific management in which a specialist supervises each worker.
a) Science, not rule of thumb
b) Mental revolution
c) Functional foremanship
d) None of the above

Answer : C

Question. Which of the following techniques rely on operation research and process charts to minimise the cost of production and maximise the quality of product and satisfaction of customer?
a) Fatigue study
b) Time study
c) Method study
d) Motion study

Answer : C

Question. Which principle of scientific management discards the old approach of rule of thumb?
a) Harmony, not discord
b) Cooperation, not individualism
c) Science, not rule of thumb
d) Either (a) or (c)

Answer : C

Question. Which principle of management states that each group having same objectives must have one head and one plan?
a) Principle of equity
b) Principle of unity of command
c) Principle of unity of direction
d) Principle of authority and responsibility

Answer : C

Question. 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

Answer : C

Question. ‘‘Nothing can be said with certainty about the factors of business environment’’. Why?
a) Because business environment is simple
b) Because business environment is dynamic
c) Because business environment is certain
d) Because business environment is inter-related

Answer : B

Question. “Spirit of invention and innovation among people” is the component of which environment?
a) Legal environment
b) Technological environment
c) Social environment
d) Economic environment

Answer : B

Question. Manav Ltd. prepares budget in its Annual General Meeting for the year 2021-2022. What kind of plan is it?
a) Single use plan
b) Standing plan
c) Objective plan
d) None of these

Answer : A

Question. What is meant by ‘follow-up action’ as the step involved in the process of planning?
a) Managing the plan
b) Checking the plan
c) Selecting the plan
d) None of the above

Answer : B

Question. Plans are made for a specific time period. At the end of such time period, new plans have to be drawn. Identify the feature of planning.
a) Planning is pervasive
b) Planning is futuristic
c) Planning involves decision-making
d) Planning is continuous

Answer : D

Question. Which of the following is/are the importance of organising?
a) Adaptation to change
b) Effective administration
c) Expansion and growth
d) All of the above

Answer : D

Question. What explains informal organisation the best?
a) All departments in an organisation reports to a coordinating head
b) Network of personal and social relationships that arise as peopleassociate with other people in work environment
c) This structure is created intentionally by the managers for achievement of organisational goal
d) None of the above

Answer : B

Question. Minimum freedom for managers and maximum constraints are main features of
a) total autonomy
b) total decentralisation
c) total centralisation
d) total congruency

Answer : C

Question. I refer to a network of personal and social relationships which spontaneously originates within the formal set up. Who am I?
a) Informal organisation
b) Party organisation
c) Social organisation
d) Formal organisation

Answer : A

Question. Under which of the following external sources of recruitment, a business organisation keeps a database of unsolicited applications in their files and such files are re-called to fill current vacant positions.
a) Advertisement
b) Casual callers
c) Campus recruitment
d) None of these

Answer : B

Question. Training is provided to employees on the actual machines, but away from actual work floor is known as vestibule training. It is provided where the employees are supposed to work on
a) sophisticated machinery
b) clients
c) outdated technology
d) None of these

Answer : A

Question. Human resource management includes many specialised activities to be performed by HR personnel except
a) recruitment
b) preparation of job description
c) handling employee grievances
d) customer focus

Answer : C

Question. ................. refers to process by which skills and abilities of employees to perform specific jobs are increased.
a) Training
b) Selection
c) Development
d) Both (a) and (a)

Answer : A

Question. Which of the following is not an advantage of directing?
a) Initiates action
b) Integrates employee efforts
c) Provides leadership
d) Restricts changes

Answer : D

Question. Out of the following, which is a financial incentive?
a) Promotion
b) Stock option
c) Job security
d) Employee participation

Answer : B

Question. In which of the following networks an individual, communicates with only those people whom he trusts?
a) Single strand network
b) Gos sip network
c) Probability network
d) Cluster network

Answer : D

Question. The need of affection, sense of belongingness, acceptance and friendship is related with
a) safety/security needs
b) social needs
c) esteem needs
d) self-actualisation needs

Answer : B

Question. Ishaan resigned from a company on the ground of ‘lack of recognition’ in organisation towards his work. Which need is not fulfilled here?
a) Physiological need
b) Safety need
c) Affiliation need
d) Esteem need

Answer : D

Question. Which of the following is not applicable to responsibility accounting?
a) Investment centre
b) Accounting centre
c) Profit centre
d) Cost centre

Answer : B

Question. Controlling provides direction to all activities and each department and employee is governed by predetermined standards, which helps in establishing ……… among them.
a) organising
b) directing
c) planning
d) co-ordination

Answer : D

Question. In controlling process, the next stage after setting performance standards is
a) measurement of actual performance
b) comparing actual performance with standards
c) analysing deviations
d) taking corrective action

Answer : A

Question. Which of the following is the technique of measurement of performance?
a) Personal observation
b) Sample checking
c) Performance reports
d) All of the above

Answer : D

Question. Debt is considered to be cheaper than equity because for borrowers, interest on debentures is a .............. while dividend on equity is not.
a) exempt from tax
b) deductible expenditure
c) non-deductible expenditure
d) None of the above

Answer : B

Question. Financial planning helps in
a) running the business smoothly by forecasting
b) avoiding business shocks and surprises
c) coordinating various business functions
d) All of the above

Answer : D

Question. The process of estimating the financial requirements of an organisation specifying the sources of funds and ensuring that enough funds are available at the right time is called
a) financial management
b) financial planning
c) financial decision
d) business finance

Answer : B

Question. Which concept helps to increase the return on equity shares with a change in the capital structure of a company?
a) Trading on equity
b) Debt financing
c) Equity financing
d) Capital structure

Answer : A

Question. Clearing and settlement operations of NSE are carried out by
a) NSDL
b) NSCCL
c) SBI
d) CDSL

Answer : B

Question. In which of the following aspects, money market is different from capital market?
a) Participants
b) Tenure of securities traded
c) Liquidity of securities traded
d) All of the above

Answer : D

Question. Mr. A, an existing shareholder of a company is offered the ‘right’ to buy new shares in proportion to the number of shares, he already possess. This kind of issue is known as
a) offer through sale
b) e-IPOs
c) private placement
d) rights issue

Answer : D

Question. What can be the method of floating new issues in the primary market?
a) Offer through prospectus
b) Private placement
c) Rights issue
d) All of the above

Answer : D

Question. …………. is the process of planning, organising, directing and controlling the activities relating to exchange of goods and services.
a) Marketing management
b) Sales management
c) Personnel management
d) Financial management

Answer : A

Question. Which of the following should not be performed by the channels of distribution of goods?
a) Sorting
b) Assorting
c) Quality improvement
d) Risk taking

Answer : C

Question. As soon as CocaCola reduced its selling price on 2 ltr to Rs 75, soon Pepsi followed with a price reduction in its selling price and priced its 2 ltr per bottle at Rs 74.50. Which factor of pricing is being discussed here?
a) The utility and demand
b) Extent of competition in the market
c) Marketing methods used
d) Pricing objectives

Answer : B

Question. The function of marketing, concerned with informing the customers about the firm’s product is
a) market analysis
b) standardisation
c) promotion
d) grading

Answer : C

Question. To publish a magazine under the title ‘Upbhokta Jagran’ is an example of which right of consumer?
a) Right to be informed
b) Right to safety
c) Right to be heard
d) Right to consumer education

Answer : D

Question. State commission entertains complaints of goods or services whose value exceeds ……… but less than ……… .
a) Rs 40 lakh and Rs 50 lakh
b) Rs 1 crore, Rs 10 crore
c) Rs 10 crore, Rs 100 crore
d) None of the above

Answer : B

Question. Shweta wants to buy a gold ring. As an aware consumer, how can she be sure about the quality of gold ring she is going to buy?
a) She should check hallmark on the jewellery
b) She should check agro mark on the jewellery
c) She should check FPO mark on the jewellery
d) She can ask from another jewellery

Answer : A

Question. ‘Jago Grahak Jago’ is the publicity campaign undertaken by government in eleventh five year plan to
a) promote the demand
b) protect the seller
c) protect the interest of consumers
d) promote the development of India

Answer : C

Question. Which of the following attitudes is not generally associated with successful entrepreneurship?
a) Competition and co-operation
b) Desire to influence others
c) Innovation and product improvement
d) Status quo in business

Answer : D

Question. What is the main purpose of entrepreneurship development?
a) To increase foreign trade
b) To increase number of entrepreneurs
c) To increase GDP
d) To increase literacy

Answer : B

Question. Name the process by which individuals pursue opportunities without regard to resources they currently control.
a) Start-up management
b) Entrepreneurship
c) Financial analysis
d) Feasibility planning

Answer : B