Class XII - Business Studies - 4 Date of Taking Test : July 7, 2026 Time: 20 Minutes 1. Why did FW Taylor propose eight specialists under functional foremanship? (a) Because all qualities like education, intelligence, tact, manual dexterity, energy etc. cannot be found in one person. (b) Because the number of foremen or supervisors in a factory set up is very large. (c) Because the number of workers in a factory set up is very large. (d) All of the above None 2. The demonetisation move of the government has resulted in the accumulation of crores of rupees in the banks. Now, the banks will give more loans to the people at lower interest rate. General public can now afford home loans more easily. Identify the dimension of business environment highlighted in the given case. (a) Economic environment (c) Political environment (b) Social environment (d) Legal environment None 3. ‘Indian Drugs and Pharmaceuticals Ltd.' is engaged in the manufacturing and distribution of medicines. The company has set up an objective of increasing its sales turnover by 20%. To achieve this objective, the company has decided to diversify into baby health care products. Accordingly, the company has identified various alternative courses of actions for the diversification process. They divided this process by determining the positives and the negatives and selected the ideal plan which is the most feasible and profitable. Which steps of planning have been followed in the above case? (a) Identifying alternatives (b) Follow up action (c) Selecting an alternative (d) Both (a) and (c) None 4. Which of the following statements justifies that management is a continuous process? (a) The task of a manager is to make employees work towards achieving goals. (b) In an organisation, diverse individuals have diverse goals. (c) The functions of management are always performed by the managers. (d) Management converts goals into actions. None 5. In an artificial plant manufacturing unit, the standard output set for a worker is 50 units per day. Dinesh produces 48 units in one day. In the given case, the value of deviation is: (a) - 2 (b) 98 (c) 2 (d) None of the above None 6. ___________ and __________are the two sides of the same coin. (a) People; Work (b) Efficiency; Effectiveness (c) Planning; Organising (d) Management; Humans None 7. Arrange the following steps involved in the staffing process in correct sequence and choose the correct alternative: (a) (ii), (i), (iv), (iii), (v) (b) (i), (ii), (iii), (iv), (v) (c) (ii), (i), (iv), (v), (iii) (d) (ii), (i), (v), (iv), (iii) None 8. Read the following statements carefully. Statement I: Responsibility is derived from authority and accountability is derived from responsibility. Statement II: Responsibility is the obligation of a subordinate to properly perform the assigned duty, for which he/she has been delegated authority by his/her superior. Choose the correct option from the options given below: (a) Statement I is true and II is false (b) Statement II is true and I is false (c) Both the statements are true (d) Both the statements are false None 9. To improve upon its competitive edge, Ratan Limited has changed the packaging of its hair care products. They are now available in a consumer-friendly design, which has a nozzle attached to the lid so that at the time of usage, the consumer does not need to open the cap of the bottle. Identify the marketing function being performed in the given case. (a) Product design and development (b) Customer support service (c) Promotion (d) Labelling None 10. Cost of issuing new shares to the public is known as: (a) Cost of equity (b) Cost of capital (c) Floatation cost (d) Marginal cost of capital None 11. Read the following Statements-Assertion (A) and Reason (R), and choose one of the correct alternatives given below: Assertion (A): Economic environment includes the social forces like customs and traditions. Reason (R): Reserve Bank of India is the key regulator of county's economic environment. (a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A) (b) Both Assertion (A) and Reason (R) are true but Reason (R) is not the correct explanation of Assertion (A) (c) Assertion (A) is true but Reason (R) is false (d) Assertion (A) is false but Reason (R) is true None 12. Organising is a process by which a manager: (a) establishes order out of chaos. (b) removes conflict among people over work or responsibility sharing. (c) creates an environment suitable for teamwork. (d) All of the above None 13. Which importance of planning is highlighted in the lines, "If goals are well-defined, employees are aware of what the organisation has to do and what they must do to achieve those goals"? (a) Planning facilitates decision making (b) Planning promotes innovative ideas (c) Planning provides direction (d) Planning reduces the risk of uncertainty None 14. Which of the following statements is not true with regard to stock exchange? (a) It provides an opportunity to the investors to disinvest and reinvest. (b) It curbs the marketability of the securities. (c) By providing a ready market, it extends liquidity to the securities. (d) It provides a platform for buying and selling of old securities. None 15. Identify the style of leadership, where there is no delegation of authority, being highlighted in the picture given below: (a) Laissez faire style of leadership (b) Democratic style of leadership (c) Autocratic style of leadership (d) None of the above None 16. Name the law which regulates the working of stock exchanges in India. (a) Companies Act, 2013 (b) Securities Contracts (Regulation) Act, 1956 (c) Transfer of Property Act (d) None of the above None 17. Rishi Limited is a company dealing in lights and illumination. Whenever the company is in need of daily wage workers, a notice is placed on the factory gate for the same. Identify the source of recruitment being used by the company. (a) Placement agencies and management consultants (b) Direct recruitment (c) Labour contractors (d) Advertising None 18. The highest level need in the need hierarchy theory of Abraham Maslow is: (a) Belongingness needs (b) Safety needs (c) Esteem needs (d) Self-actualisation needs None 19. Match the various types of training given in Column I with their respective statements given in Column II and choose the correct alternative: (a) A - (ii), B - (iv), C – (iii), D – (i) (b) A - (iv), B - (iii), C – (i), D – (ii) (c) A - (ii), B - (iv), C – (i), D – (iii) (d) A - (i), B - (iv), C – (ii), D – (iii) None 20. Derivation of Principles of Management is a matter of ___________ and their application is _________. (a) art; science (b) science; art (c) art; discipline (d) discipline; science None 1 out of 1 Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Name * Email * Website Comment * Save my name, email, and website in this browser for the next time I comment.