CHAPTER-4

PLANNING
1. Radha Rani is the C.E.O. of ‘Radhika Sales Pvt. Ltd.’ Besides other managerial activities, she is
an expert in planning. While planning for her company, she noticed that at first several options are
gathered, then their evaluation is done and finally the most suitable option is selected. Once she was
confronted with such a problem as had only one option available for its solution. To select this very
option was her compulsion. Now, for the first time she realized that the necessity of planning is there
only when several options are available. Identify the feature of planning in the event stated above.
(a) Planning is continuous. (b) Planning is futuristic.
(c) Planning involves decision making. (d) Planning is pervasive.

2. Saurabh decided to start a chocolates manufacturing business. He set the target of earning 10%
profit on sales in the first year. As a good businessman, he was concerned about the future of the
business, which was uncertain. He gathered information that the demand for chocolates is increasing
day by day. He used this information as the base for future planning and shared it with his team. On
the basis of the gathered information, he scheduled a meeting in the following week to find
innovative ways to achieve the objectives. Identify one out of the two steps, which have been
followed by Saurabh that are related to the process of one of the functions of management.
(a) Follow up action (b) Selecting an alternative
(c) Developing Premises (d) Evaluating alternative courses

3. In a business organization, the manager is busy in making plans for the coming year. The
company has launched so many new products in the market. The main question before the company
is how to advertise the new products. In the answer to this question, the planners collected several
suggestions; namely, the job of advertisement should be done by the company itself; for
advertisement the help of outsourcing of services should be taken; some of the work of
advertisement should be done by the company itself and for some of it the outsourcing should be
depended on. Still, other answers to this question are being looked for. Which particular stage of the
‘Planning Process’ in the above event is being completed by the managers?
(a) Setting objectives (b) Developing premises
(c) Identifying alternative courses of action (d) Evaluating alternative courses

4. Suhani a home science graduate from a reputed college has recently done a cookery course. She
wished to start her own venture with a goal to provide ‘health food’ at reasonable price. She
discussed her idea with her teacher (mentor) who encouraged her. After analyzing various options
for starting her business venture, they shortlisted the option to sell readymade and ‘ready to make
‘vegetable shakes and sattu milk shakes. Then they both weighed the pros and cons of both the
shortlisted options. Name the function of management being discussed above.
a) Planning b)Organizing
c) Directing d) Controlling
Q.Read extract given below and answer the question on the basis of the same.
The CEO of ABC limited, auto mobile enterprise dreams of his company becoming the best player
in future for which he sets the objectives, forecast the future and develops various courses of action.
He has also made a statement indicating sales volume for the next financial year to achieve the
desired sales as highlighted in the statement. He decided to advertise in all the leading newspapers
is in every state of India for the next six months, so he also wants to train his employees for
achieving his sales target.
As a part of the training programme for newly appointed sales executive, CEO fixes responsibility of
sales managers as mentors to take the executives for visit to their existing customers and help them
learn on the job.

5. Which function of management is highlighted in the first line of the given extract?
1. Planning 2. Controlling
2. Staffing 4. None of these

6. Changes and events cannot be eliminated but they can be anticipated and managerial response to
them can be developed. Which importance of planning is highlighted in the above statement?
a) Planning provides direction.
b) Planning reduces overlapping and wasteful activities.
c) Planning reduces the risk of uncertainty.
d) Planning facilitates decision making.

7. Sales Forecasting is the basis on which a business firm prepares its annual plan for production
and sales. Which feature of planning is highlighted in the above case?
a) Planning focuses on achieving objectives.
b) Planning is continuous.
c) Planning is the primary function of management.
d) Planning is futuristic.

Q.Read the extract given below and answer the questions on the basis of the same. (Q.8-Q.11)
Mona inherited a 30-acres ancestral land from her grandparents. She decided to venture into
agriculture, for this purpose she set out specific goals, objectives. Everything was a challenge
because she was not aware about farming. She learned every activity and, in the process, thought of
assisting other farmers as well. She eventually launched her own company Agro limited.She wanted
to be sure that the activities effectively met the best interest of the company and the farmers.Hence,
she prepared an annual plan for production, sales and marketing, through sales forecasting she’ll I
realized that farmers were growing only one or two crops. On account of this the land remained idle
for the rest of the year. she identified and evaluated different alternatives through which the farms
could be utilized throughout the year.She used her foresight and systematic thinking,based on
analysis of all fixed analysis of all the facts and examined and evaluated all the alternatives. She
presented a plan to the Farmers Union, where after harvesting the primary crops, seasonal vegetables
and foods could be grown.
 8. Hence she prepared an annual plan for production sales and marketing through sales forecasting.
Which feature of planning is depicted in this statement?
1. Planning is continuous
2 planning is futuristic
3 planning involves decision-making
4 planning is a mental exercise

9. For this purpose she set out specific goals objectives and activities which feature of planning is
depicted in this statement?
1.Planning focuses on achieving objectives
2.planning is a primary function of management
3.planning involves decision-making
4.planning is a mental exercise

10. Thus, she identified and evaluated different alternatives through which the farms could be
utilized throughout the year. Which feature of planning is depicted here?
1.Planning is pervasive 2.planning is continuous
3.planning is futuristic 4.planning involves decision-making

11. She used her foresight and logical and systematic thinking based on analysis of all facts and
examined and evaluated all the alternatives. which feature of planning is depicted here?
a. Planning focuses on achieving objectives
b. planning is a primary function of management
c. planning is mental exercise
d. planning involves decision-making

12. Identify the statement which is not correct.

a) Planning is required a top-level management only.
b) Planning facilitates decision-making
c) Planning is a time consuming process
d) All are correct.

13. Are the anticipated environments in which plans are expected to operate.
a) Planning premises
b) Forecasting
c) Objectives
d) none of these.

14. Mr. Ram is the C.E.O. in ‘Ram Lakhan General Pvt. Ltd.’ He is the head of the team making plans
for the company also. He gave a number of suggestions to the team out of which the two main
suggestions were: First, Mr. Ram said that they had to face a lot of problem in getting the main raw
material used in the company, but in the next year it was possible that they could get it easily.
Secondly, in the second coming year the rate of bank interest was most likely to increase, which
would affect the company’s costs. He laid emphasis on this matter that both of his remarks should
be kept in view while preparing the plans. Clarify to which stage of the planning process the above
event is related.
(a) Setting objectives
(b) Developing premises
(c) Identifying alternative courses of action
(d) Evaluating alternative courses

15. MrsMadhviBhire is working as a manager in ‘Taarik and Company’. She is involved in a problem related to a
particular product. She is unable to decide whether she should produce that product in her own company or she
 should buy it from the market. She studied both the options deeply with the help of specialists. In order to maintain
the company’s impression on the minds of the customers, she decided to produce the product in the company
itself. She is hopeful of the complete success of this decision. Identify the stage of the ‘planning process’ on which
Mrs Madhvi reached the final decision.
(a) Evaluating alternative courses
(b) Selecting an alternative
(c) Implementing the plan
(d) Follow-up action

16. During partition, Kundan Lal came to Mumbai from Lahore with a lot of wealth. Keeping in view
his innate ability to visualize and create things, he decided to work as a junior assistant in a film
studio. Over a period of time, as he gained experience and his work was well acclaimed, he decided
to set up his own film studio. Initially he was himself looking into every aspect of the business, but
as his work increased manifolds and his own productivity reduced with age, he hired Jummy as
manager. Jimmy being immature in his work started giving bookings for the studio haphazardly. He
would never decide anything in advance or do any kind of forecasting of events. This led to lot of
confusions and conflicts. As a result, the goodwill earned by Kundan Lal over the years began to
decline. In context of the above case. Identify and explain the function of management which
Jimmy failed to perform by quoting lines form the paragraph.
1. Planning
2. Directing
3. Controlling
4. staffing

17. Rakhi Dua is employed at the middle level management of ‘Punjab Food Suppliers’. Working in her
department she noticed that they are asked to implement the plans prepared by the top management
without making any change. Many a time, even though wishing to do so, she cannot make any change in
them. As a result of it, the initiative and creativity of the managers at the middle level management, gets
killed. Not only this, several times, even opportunities of advantage slip out of hand. Rakhi is very
unhappy with this state of affairs of the company, and she is thinking of shifting to some other company
at the earliest. Identify the ‘limitation of planning’ in the above event.
(a) Planning leads to rigidity.
(b) Planning may not work in a dynamic environment.
(c) Planning reduces creativity.

18. Super Fine Rice Ltd. has the largest share of 55% in the market. The company’s policy is to sell only
for cash. In 2015, for the first time company’s number one position in the industry has been
threatened because other companies started selling rice on credit also. But the managers of Super
Fine Rice Ltd. continued to rely on its previously tried and tested successful plans which didn’t work
because the environment is not static. This led to decline in sales of Super Fine Rice Ltd. The above
situation is indicating two ‘limitations of planning’ which led to decline in it sales. Identify one of
them.
(a) Planning creates rigidity (b) Planning reduces creativity
(c) Planning involves huge costs (d) Planning does not guarantee success

19. Planning is futuristic.

1. False 2.True

20. All other managerial functions are performed within the framework of the plans drawn. Identify the
related feature of planning.
(a) Planning focuses on achieving objectives. (b) Planning is pervasive.
(c) Planning is futuristic. (d) Planning is primary function of management.

21. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the
 related feature of planning.
(a) Planning is futuristic.
(b) Planning is a mental exercise.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

22. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the
related limitation of planning.
(a) Planning leads to rigidity. (b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success. (d) Planning reduces creativity.

23. Identify the correct sequence of steps involved in the planning process.
(a) Evaluating alternative courses, Identifying alternative course of actions, Setting objectives,
Developing premises
(b) Setting objectives, Identifying alternative course of actions, Evaluating alternative courses,
Developing premises
(c) Setting objectives, Developing premises, Identifying alternative course of actions,
Evaluating alternative courses

24. By comparing with standards manager can know whether the goals are achieved or
not:-
(a) Risk
(b) Ideas
(c) Actual performance
(d) Costs

25. Planning provides direction is a

(a) Importance of planning
(b) Limitation of planning
(c) Characteristics of planning
(d) Method

26. Pervasiveness of planning indicates that planning

(a) is a top management function.
(b) extends throughout the organization.
(c) is a future-oriented activity.
(d) is the first element of management process.

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

(a) Pervasive
(b) Primary function of management
(c) Continuous
(d) Integrating

28. Which of the following quality a manager must possess to succeed in planning?
(i) Reflective Thinking
(ii) Imagination
(iii) Farsightedness
(iv) All of these

29. Planning requires logical and systematic thinking rather than guess work or wishful thinking.
Identify the related feature of planning.
 (i) Planning is futuristic
(ii) Planning is a mental exercise.
(iii) Planning establishes standards for controlling.
(iv) Planning focuses on achieving objectives.

30. Planning results in decreasing

(a) Coordination (b) Proper use of resource
(c) Future uncertainties (d) Control

31. Making assumptions for future is called

(a) Making derivative plans (b) Making policy
(c) Setting planning premises (d) All of the above.

Read the extract given below and answer the questions on the basis of the same. (Q.32-Q.33)
After completing a diploma in Bakery and Patisserie, Julie sets up a small outlet at Goa
Airport to provide a healthy food option to the travellers. To begin with, she has decided to
sell five types of patties, three types of pizzas and low sugar muffins in four flavours. Thus,
by deciding in advance what to do and how to do, she is able to reduce the risk of
uncertainty and avoid overlapping and wasteful activities. But sometimes her planning does
not work due to some unavoidable circumstances like cancellation of flights due to bad
weather conditions, government alert etc. which adversely affects her business.
In context of the above case:
32. Identify points highlighting the importance of planning mentioned in the above paragraph.
1. Reduces the risk of uncertainty:
2. Avoiding overlapping and wasteful activities
3. 1 and 2
4. None of these.

33. The limitation of planning which adversely affects Payal’s business is:
1. Planning may not work in a dynamic environment:
2. Planning may not guarantee success.
3. Planning involves huge costs
4. None of these.

Q.Read the following text and answer the following questions on the basis of the same:(Q.34-Q.37)

Simplex limited had been taken over by Mundhra Group immediately following India’s independence.
Since then, it enjoys a rich record of industry presence and experience. In 2005, with the aim to
accelerate growth the company had gone through several rounds of meetings and discussions before
launching ERP system to attract large projects. The management had done effective forecast and critical
thinking regarding allocation resources to reduce wastage. For this purpose, the company had laid down
multiple courses of action to meet the challenge of adverse situations. In 2008, the company suffered
loss in many projects due to the great recession despite taking many cost cutting measures. The
management had taken utmost care regarding the possible outcome and timely review of the plans to
achieve the set target during that hard time. In 2010 the system implemented successfully which
subsequently helped the company to execute numerous projects with precision and timeliness.

34. “In 2005, with the aim to accelerate growth the company had gone through several rounds of
Meetings and discussions.” What is the objective mentioned here according to the process stated
here?

A. Developing Premises B. Growth & development

 C. Launching IT enabled system D. Cost cutting.

35. “In 2008, the company suffered loss in many projects due to the great recession despite taking
many cost cutting measures.” Which limitation of the management process is indicated here?
A. It fails to cope with sudden changes B. It involves huge cost
C. It requires critical thinking d) Economic Environment

CHAPTER 5
ORGANISING

Multiple Choice Questions

1. Name the process which co-ordinates human efforts, assembles resources and integrates both
into a unified whole to be utilized for achieving specified objectives,
(a) Management (b) Planning (c) Organising (d) Directing

2. It refers to the number of subordinates that can be effectively managed by a superior

(a) Organisational structure (b) Informal organisation
(c) Span of management (d) None of the above

3. As the span of management increases in an organisation, the number of levels of management in

the organisation
(a) Increases (b) Decreases
(c) Remains unaffected (d) None of the above

4. Uranus Limited is a company dealing in metal products. The work is mainly divided into
functions including production, purchase, marketing, accounts and personnel. Identify the type
of organisational structure followed by the organisation.
(a) Functional structure (b) Relational structure
(c) Divisional structure (d) None of the above

5. Under this type of organisational structure, manpower is grouped on the basis of different
products manufactured.
(a) Divisional structure (b) Functional structure
(c) Network structure (d) Matrix structure

6. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the
work has been divided into small and manageable activities and also the activities of similar
nature are grouped together. Identify the related step in organising process being mentioned in
the above lines.
(a) Identification and division of work (b) Departmentalisation
(c) Assignment of duties (d) Establishing reporting relationships

7. Identify the correct sequence of steps to be followed in an organising process.

(a) Departmentalisation, Establishing reporting relationships, Assignment of duties,
Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing
reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing
reporting relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation,
Assignment of duties
8. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility (b) Authority
(c) Accountability (d) All of the above
9. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on
overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

10. When decision-making authority is retained organisation is said to be by higher management

levels, an
(a) Decentralised (b) Centralised
(c) Fragmented (d) None of the above

11. Which of the following cannot be delegated?

(a) Authority (b) Responsibility
(c) Accountability (d) None of these

12. Which of the following is not an element of delegation?

(a) Authority (b) Accountability
(c) Responsibility (d) None of these

13. Harshit Ltd. has grown in size. It was a market leader but with changes in business environment
and with the entry of MNCs, its market share is declining. To cope up with the situation CEO
starts delegating some of his authority to the General Manager, who also felt himself
overburdened and with the approval of CEO disperses some of his authority to various levels
throughout the organisation. Identify the concept of management discussed above.

(a) Delegation (b) Organising

(c) Decentralisation (d) Centralisation

14. In which situation the divisional structure happens to be appropriate?

(a) Where the number of major products is more than one
(b) Where the size of the organisation is quite large
(c) Both (a) and (b)
(d) Where primarily only one product is sold

15 In order to successfully realize the objectives of an organisation, first of all it is ensured which
activities will have to be performed. In the list of activities, all the activities, both big and small,
are included. But it is not possible to set up separate departments for all the activities. Some
similar activities are put together in the same department. In this way some necessary
departments are set up. The reason for doing so is to exercise control over unnecessary
administrative expenses. Identify the concept of management under which similar activities are
put together and departments are set up.

(a) Departmentalisation (b) Delegation

(c) Decentralisation (d) Centralisation

16. The accountability flows

(a) In all directions (b) Downwards
 (c) Upwards (d) None of the above

17 Which of the following is not a merit of divisional structure?

(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.

18 Centralisation 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

Match the columns

19. Match the following on the basis of meaning of the content (remembering)
(i) Divisional structure (a) formation is based on functions
(ii)Functional Structure (b) number of subordinates that can be managed by superiors
(iii) Span of management (c) product specialization
i ii iii i ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (b) (a) (c)

20. Match the following on the basis of demerits of the content:

(i) Divisional structure (a) Difficult for a multiproduct company
(ii)Functional Structure (b) Difficult to fix responsibility
(c) Non economical
i ii i ii
A. (a) (b) B. (b) (a)
C. (c) (a) D. (b) (c)

21. Match the following on the basis of features:

(i) Divisional structure (a) occupational Specialization
(ii)Functional Structure (b) Perfect control
(c) Business Environment
I ii i ii
A. (a) (b) B. (b) (a)
C. (c) (a) D. (b) (c)

22. Match the following:

i. Departmentalization. a. Dividing the work as per plan
ii. Assignment of duties. b. Allocation of responsibility
iii. Division of Work c. The activities which are of similar nature.
i ii Iii i ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (c) (b) (a)
23. Match the following by choosing the correct option:
Column I Column II

i. Leads to specialization a. Delegation

ii. Functional anddivisional b. Step of organising process
iii. It has narrow scope c. Importance of organization
iv. Establishing reporting relationships d Types of organisation structure

i ii iii iv. i ii iii iv

A. (a) (b) (c) (d) B. (b) (d) (a) (c)
C. (c) (d) (a) (b) D. (d) (a) (b) (c)

24. Match the following:

i. Authority a. Arises from formal position
ii. accountability b. Arises from delegation of authority
iii. Responsibility c. Arises from responsibility

I ii Iii i Ii iii
A. (a) (b) (c) B. (a) (c) (b)
C. (c) (a) (b) D. (c) (b) (a)

25. Q 28. Match the steps in the process of organising' in Column I with the appropriate
'explanation' in Column II:

Column I Column Il

i. Identification and division of work a. Dividing work into manageable

activities
ii. Departmentalisation b. Establishing a hierarchal structure
iii. Assignment of duties c Grouping similar activities together
iv. Establishing authority & reporting d. Allocating jobs to the members of each
relationships department
i ii iii iv. i ii iii iv
A. (a) (b) (c) (d) B. (a) (c) (d) (b)
C. (c) (d) (a) (b) D. (d) (a) (b) (c)

Multiple Choice Questions on Assertion -Reasoning Type

26 Assertion(A):Identification and division of work is the first step in the process of organising.
Reason (R): Organising involves identifying and dividing the work that has to be done in
accordance with previously determined plans.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true and (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

27. Assertion(A):Assertion (A): Organising provides a cleardescription of jobs and related duties.
Reason (R): Organising stimulates creativity amongst the managers.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true
28. Assertion(A): Functional Organization helps in increasing managerial and operational efficiency
and this results in increased profit.
Explanation(R): Functional Organization promotes efficiency in utilisation of manpower as
employees perform similar tasks within a department and are able to improve performance.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

29. Assertion(A): Organising helps management in implementing the principle of initiative among
employees.
Explanation(R): Organising satisfies the subordinate’s need for recognition and provides them with
opportunities to develop and exercise initiative.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

30. Assertion(A): Authority determines the superior subordinate relationship wherein the superior
communicates his decision to the subordinate, expecting compliance from him and the subordinate
executes the decision as per the guidelines of the superior.
Explanation(R): Accountability is the obligation of a subordinate to properly perform the assigned
duty.
(a) Both (A) and (R) are true and (R) is the correct explanation of (A)
(b) Both (A) and (R) are true but (R) is not the correct explanation of A
(c) (A) is true, but (R) is false
(d) (A) is false, but (R) is true

31. Assertion (A): The span of management at the upper level is generally narrow while at the
lower level span is wide.
Reason (R) : The task allocated to subordinates at the lower level of management are more specific
and precise and thus making supervision easy and simple.
a. (A) is correct, but (R) is wrong
b. (A) is wrong, but (R) is correct
c. Both (A) and (R) are correct
d. Both (A) and (R) are wrong

32. Assertion (A): Delegation helps a manager to extend his area of operations as without it, his
activities would be restricted to only what he himself can do.
Reason (R): A manager, no matter how capable he is, cannot manage to do every task on his own.
The volume of work makes it impractical for him to handle it all by himself.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

33. Assertion (A): Delegation does not mean abdication.

Reason (R): A manager is under obligation to perform the delegated task.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true
34.Assertion (A): Responsibility is derived from authority and accountability is derived from
responsibility.
Reason (R): 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. Once authority has been
delegated and responsibility accepted, one cannot deny accountability.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

35. Assertion (A): A large sized organisation can be totally decentralised.

Reason (R): As an organisation grows in size and complexity, there is a tendency to move
towards decentralised decision-making. Complete centralisation would imply concentration of
all decision making functions at the apex of the management hierarchy.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

36. Assertion (A): Decentralisation must always be balanced with centralisation in areas of major
policy decisions.
Reason (R): Decentralisation recognises the decision maker's need for autonomy. The
management, however, needs to carefully select those decisions which will be pushed down to
lower levels and those that will be retained for higher levels.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

37. Assertion (A): Decentralisation should be applied with caution by the top management.
Reason (R): It can lead to organisational disintegration if the departments start to operate on
their own guidelines which may be contrary to the interest of the organisation.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

38. Assertion (A): Organisation structure is the outcome of the planning process.
Reason (R): The organising process leads to the creation of an organisation structure which
includes the designing of roles to be filled by suitably skilled people and defining the inter-
relationship between these roles so that ambiguity in performance of duties can be eliminated.

a. Both Assertion (A) and reason (R) are true.

b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true
 39. Assertion (A): The need for an adequate organisation structure is felt by an enterprise whenever
it grows in size or complexity.
Reason (R): As an organisation grows, coordination becomes difficult due to the emergence of
new functions and increase in structural hierarchies. Thus, for an organisation to function
smoothly and face environmental changes, it becomes necessary to pay attention to its structure.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true

40. Assertion (A): Organisation structure is an indispensable means; and the wrong structure
will seriously impair business performance and even destroy it.
Reason (R): A proper organisation structure is essential to ensure a smooth flow of
communication and better control over the operations of a business enterprise. It specifies the
relationships between people, work and resources.
a. Both Assertion (A) and reason (R) are true.
b. Both Assertion (A) and reason (R) are false
c. Assertion (A) is trueand reason (R) is false
d. Assertion (A) is false and reason (R) is true
Case Study Based Questions
41. Read the extract given below and answer the questions on the basis of the same:
Mohit, the owner of 'Ravi Constructions' decided to begin a campaign in order to create
awareness among the residents for creating a clean and safe environment. In an effort to develop
clean surroundings in the area, he formed a team of 30 members to list the different ways that can be
adopted for keeping the area clean. Different people had different suggestions, someone suggested to
take the help of local residents including young children, one suggestion was to involve unemployed
youth. The idea to take the help of volunteers was also given. A combination of the most effective
strategies after evaluating all options was selected for implementation. To achieve the desired goals
and objectives, various activities were identified like:
(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.
(ii) Door-to-door collection of garbage.
(iii) Recycling of garbage. (iv) Disposal of garbage, etc.
Thus, an organisational design was chosen which grouped similar activities together in order to
minimise duplication of effort. After identification and grouping of these activities,
the work was allocated among the different members.
(a) "After identification of different activities the work was allocated to different
members."

Which step does this represent in the process of organising?

(i) Identification and division of work

(ii) Departmentalisation
(iii) Assignment of duties
(iv) Establishing reporting relationships

(b) "Thus, an organisational design was choosen which grouped similar activities together in
order to minimise duplication of effort." Which step under the process of organising is
being referred to in this line?

(i) Identification and division of work

(ii) Departmentalisation
(iii) Assignment of duties
(iv) Establishing reporting relationships
 (c) "Thus, an organisational design was chosen which grouped similar activities together in
order to minimise duplication of effort." Which step under the process of organising is
being referred to in this line?
(i) Identification and division of work (ii) Departmentalisation
(iii) Assignment of duties (iv) Establishing reporting relationships

(d) "Thus, an organisational design was choosen which grouped similar activities together in
order to minimize duplication of effort." Which organisational design is being referred to
in this line?
(i)Functional (ii)Formal
(iii)Divisional (iv)Informal
42. Read the extract given below and answer the questions on the basis of the same:
Aman decided to start a business of manufacturing toys. He identified the following main
activities which he has to perform: (i) purchase of raw materials, (ii) purchase of machinery, (iii)
production of toys; (iv) arrangement of finance; (v) sale of toys; (vi) identifying the areas where they
can sell their toys; (vii) selection of employees. In order to facilitate the work he thought that four
managers should be appointed to look after: (a) production (b) finance (c) marketing (d) personnel.
As planned, all this was executed and the business started doing well. But the manager of production
department is overburdened with routine work and is unable to concentrate on core issues of the
department. To overcome this problem, he entrusted some of his responsibility and authority to his
immediate subordinate
(a) Identify the function of management involved in the above mentioned paragraph.
(i) Planning (ii) Organising (iii) Directing (iv) Controlling

(b) Which concept/process is used by the productionmanager?

(i) Decentralisatio (ii) Delegation (iii) Training (iv) Coordination

(c) The concept identified in point (b), is an extension to one of the principles of management.
Name that principle.
(i) Authority and responsibility (ii) Division of work
(ii)Centralisation and decentralization (iv) Unity of direction

(d) Who will be accountable finally if the subordinate is unable to complete the task
accordingly within time?
(i) The Manager (ii) The Subordinate (iii) Both (i) and (ii) (iv) None of these

PART : B
CHAPTER :11 (MARKETING MANAGEMENT)
1. With which element is exchange mechanism related?
(a) Publicity
(b) Marketing
(c) Advertising
(d) Branding

2. Which one of the following is a marketing management philosophy?

(a) Societal marketing concept
(b) Distribution concept
(c) Direct marketing concept
(d) Channel concept
3. Which one of the following is not a marketing mix?
(a) Product
(b) Physical distribution
(c) Product pricing
 (d) Production process

4. Marketing is called a process because it involves interaction of buyers and sellers.

(a) Economic (b) Social
(c) Legal (d) Political

5. is the marketing function which is concerned with informing the customers about the
firm’s products.
(a) Transportation
(b) Selling
(c) Advertising
(d) Public Relations

6. Hena is planning to set up a small manufacturing unit for manufacturing eco-friendly

packaging material. She has decided to market her products through the conventional
channel of distribution, which involves wholesalers and retailers. Identify the channel of
distribution being adopted by the company.
(a) Zero level channel
(b) One level channel
(c) Two level channel
(d) Three level channel

7. Within 2 years of it’s inception, Bhavishya Limited has created a very positive reputation
about itself and its products in the eyes of general public by participating extensively in
various social welfare programs. Identify the component of promotion mixing described
in the given lines.
(a) Advertising
(b) Personal selling
(c) Public relation
(d) Sales promotion

8. Harshit is planning a start up a venture for offering mobile pet care services at door step.
He has decided to charge Rs. 1000 for heated hydrobath& blow dry of a pet and Rs. 500
for shampoo and conditioning. Identify the element of marketing mix which is not being
described in the above case.
(a) Product (b) Place
(c) Price (d) None of the above
9. Guneet went to a shop and expressed her desire to buy a copper water bottle only of
Prestige company. Identify the component related to branding being described in the
above case.
(a) Trademark
(b) Generic name
(c) Brand name
(d) Brand mark
10. Karam Limited is offering a travel package for 15 destinations worldwide with a free
insurance on the bookings for the month of December, 2019. Identify the feature of
marketing being described in the above lines.
(a) Needs and wants
(b) Creating a market offering
(c) Customer value
(d) Exchange mechanism

11. Agile Limited has launched a new range of air conditioners in order to add value to the
usability of the product. The new range of air conditioners have an inbuilt air purifier and
are available in attractive colours. Identify the type of marketing philosophy being
 described in the above lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

12. Sujhav Limited is a company dealing in various types of fire extinguishers. Considering
the fact that people generally don’t buy fire extinguishers, the company undertakes
aggressive sales promotion efforts in order to create and maintain demand for the
product. Identify the type of marketing philosophy being described in the given case,
(a) Product concept
(b) Selling concept
(c) Marketing concept
(d) Societal marketing concept

13. Madhubala is planning to launch an online education portal. In order to understand the
varied needs of the students, she conducted an online survey. Based on the feedback of
the survey, she has decided to offer educational packages to the prospective buyers.
Identify the type of marketing concept being described in the given lines.
(a) Product concept
(b) Production concept
(c) Marketing concept
(d) Societal marketing concept

14. Pragati Limited has chalked out an action plan in order to increase its market share in the
international market by 20% in the next one year. The action plan contains the details
about how the production levels will be increased, promotional activities will be carried
out and so on. Identify the type of marketing function being described in the given lines.
(a) Gathering and analysing market information
(b) Marketing planning
(c) Product designing and development
(d) Packaging and labeling

15. What does the symbol given below denote?

(a) Brand name

(b) Brand mark
(c) Trademark
(d) Generic name
16. Sugandha purchased a pack of crayons for her daughter from a nearby stationery shop.
She noticed that the crayons were packed in a portable transparent plastic bag. Identify
the level of packaging being described in the above lines.
(a) Primary package
(b) Secondary packaging
(c) Transportation packaging
(d) None of the above

17. On visiting a supermarket to buy a pack of moisturizer, Harsha noticed that the
packaging of most of the beauty products exhibited a photograph of a celebrity. Identify
the related function of packaging being described in the given case.
(a) Facilitates the use of product
(b) Assists in promotion of the product
(c) Helps in product identification
 (d) Provides protection to the product

18. The labelling of a pack of oats cookies explains how the product is beneficial in adding
fibre to the diet and the other related health benefits. Identify the related function of
labelling being described in the given case.
(a) Describes the product and specifies its content
(b) Identification of the product or brand
(c) Grading of products
(d) Helps in promotion of the products

19. Identify the related function of labelling being depicted below as given on the pack of the
chips.

(a) Describes the product and specifies its content

(b) Grading of products
(c) Helps in promotion of the products
(d) Identification of the product or brand

20. Mehak Limited has hired 300 salesmen who will be assigned the task of contacting
prospective buyers and creating awareness about the new range of organic incenses
introduced by the company. Identify the element of promotion been described in the
given lines.
(a) Advertising (b) Sales promotion
(c) Personal selling
(d) Public relation
(Case study based questions)
1 “Time Line” watch manufacturing company is a renowned company marketing watches. It
performs various activities like, market analysis, product designing or merchandising,
packaging, warehousing, branding, pricing, promotion and selling. The company maintains
good customer relations through various follow up activities. This helps the company in
procuring repeat sales orders.

(I) Name the concept related to the activities mentioned in the above paragraph.
a) Marketing b) Selling c) Industry d) Packaging

(II) Which concept of marketing is used to develop good relations with customers?
a) Branding b) sales promotion c) labeling d) public relation

2 “Every time I travelled, people asked me to bring them chips, khakra and pickles from all
over the country,” says Anoushka. Finally, she and her colleague, Sumeet, decided to make a
business out of it. They launched a Facebook page, asked people what they wanted, and they
came up with a list of about 100 places and tied-up with two dozen vendors to begin with.
They were servicing people from Jaipur who wanted spices from Kerala, people from Panipat
who wanted halwa from Jammu and people from Delhi who ordered fresh tea leaves from
Darjeeling. Through their business, they wished to bridge the gap between sellers and buyers.
The business is now worth millions..
I) Which function of marketing was performed by both friends while acquiring
information about people’s choice through facebook page?
a) Gathering and analysing marketing information
b) Marketing planning
c) Branding
d) None of these.

II) Which promotional tool is suitable for them

a) Advertising
b) Personal selling
c) Publicity
d) Sales promotion.

III) Important element of marketing mix that Anouskha and Sumeet will have to be
involved in for making the goods available to customers at the right place, in the
right quantity and at the right time is:
a) Product b)Price c)Promotion d)Place.

3 Radhika was a student of Business Studies of Class XII. Her father was a farmer who grew
different varieties of rice and was well-versed in the various aspects of rice cultivation. He
was also selected by the government for a pilot-project on rice cultivation. As a project work
in Business Studies, she decided to study the feasibility of marketing good quality rice at a
reasonable price. Her father suggested her to use the Internt to gather customers’ views and
opinions. She found that there was a huge demand for packaged organic rice. She knew that
there were no predetermined specifications in case of rice because of which it was difficult to
achieve uniformity in the output. To differentiate the product from its competitors, she gave it
the name of ‘Malabari Organic Rice’ and classified it into three different varieties, namely —
Popular, Classic and Supreme, based on the quality. She felt that these names wouldhelp her
in product differentiation.
 I) Radhika has given a special name to her product, what does this name refer to?
a) Brand name
b) Brand Mark
c) Generic name
d) Trade mark

II) Radhika has classified her product into different varieties, which function of
marketing has been performed by Radhika in this step?
a) Gathering and analysing marketing information
b) Standardisation and Grading
c) Product designing and development
d) None of these

III) Radhika’s father suggested her to use internet for acquiring information about
people’s taste and preferences. Why is it necessary to know about taste and
preferences of customers in marketing
a) It is essence of marketing
b) Customers are required for profit making.
c) Customer is called king of market
d) Customer satisfaction is main objective of marketing.

4 Haryaram is a famous chain selling a large variety of products in the Indian market. Their
products include chips, biscuits, sweets and squashes. It charges a comparatively higher price
than its competitors as it sells quality products. Besides, it offers regular discounts to its
customers and easy credit terms to its retailers. It has five of its own retail shops. It also sells
its products through various grocery stores so that the products are made available to
customers at the right place, in the right quantity and at the right time. It regularly us
different communication tools to increase its sales.

I) Which type of products are sold by Haryaram?

a) Consumer goods
b) Producer goods
c) Services
d) None of the above.

II) Which philosophy of marketing management is being used by Haryaram?

a) Production concept
b) Product concept
c) Selling concept
d) Marketing concept

III) Which promotional tool is being used by offering discounts to customers ?

a) Advertising
b) Personal selling
c) Sales promotion
d) Public relations

IV) Haryaramis selling goods through grocery store, which channel of distribution is being
used by Haryaram?
a) Direct channel
b) One level
c) Two level
d) None of these
5 As a project work in Business Studies, the Commerce students of Himachal Public School,
Himachal Pradesh thought of preparing apple jam from the apples grown in their school
premises and sell it in the school annual fete. They approached the Principal who not only
appreciated the students but also gave her consent for the same. The school decided to donate
50% of the revenue generated from the sale to a nearby orphanage. After the school fete, the
school also decided to extend this project by providing employment to visually challenged
and disadvantaged sections of society on regular basis

I) Product-related decisions which the students had to take to identify

product in the market:
A) Branding B) labelling
C) packaging D) None of these

II) Label of jam should be:

a) Brand label
b) Grade label
c) Descriptive label
d) None of the above

6 Unilever has found a new way to make ice creams by using an ingredient called ‘ice
structuring protein’ which is widely found in nature especially, in fishes which allows them
to survive in freezing arctic waters. Combining ISP with stabiliser technology allows to make
ice creams that don’t melt so easily thereby making it more convenient for small children and
consumers in hot countries.
In the context of above case:

I) The component of marketing mix being taken into consideration by the company.
a) Product b) price c) place d) promotion.

II) The function of marketing highlighted here.

a) Gathering and analysing marketing information
b) Marketing planning
c) Product designing and development
d) Branding.

7 As the number of people making online purchases has increased manifolds, there is a
growing concern about the disposal and management of packaging waste. Every item bought
is delivered with excess packaging and sometimes even non-biodegradable materials are
used.
In the context of above case:

I) Name the levels of packaging that the marketers uses for extra protection
besides the immediate package.
A) Primary packaging
B) Secondary packaging
C) Transportation packaging
D) None of these

8 Suraj is a small entrepreneur involved in the manufacturing of hair wax. He finds that cost of
production of 100 gm of hair wax is Rs. 250. He has decided to keep a margin of 15% as
profit. Moreover, he has assessed that there is a free competition in this product segment.
In the context of above case: Identify the function of marketing being performed by Suraj.
a) Pricing
b) Branding
 c) Labelling
c) Promotion

9. In today’s world, through social media, news spread in a flash. Moreover, if it is bad news, it
acquires a speed that is virtually impossible to stop. Hence, all corporates are more
susceptible to a tarnished image today than in any other day and age. The loss of goodwill
may lead to decreased revenue, loss of clients or suppliers and fall in market share. Over the
years, therefore, most of the companies have set up a separate department to manage the
public opinions about them. The department works in close coordination with the various
interest groups like consumers, government, suppliers etc. and strives to handle effectively if
any controversies arise.
In the context of above case:

I) Identify the element of promotion mix being referred to in the above lines.
a) Advertising
b) Publicity
c) Personal selling
d) Public relations

II) Which department is formed for this promotional tool?

a) Marketing department
b) Finance department
c) Human resource department
d) Public relations department.

10. An automobile company is a leading manufacturing company in its segment. The

company has decided to launch fully solar charged vehicles. This technology will cost the
company ?2000 crores annually. When the relationship manager of the company was asked
about the reason of bearing so much extra cost he replied that the company considered
environmental friendly techniques as the only solution to increasing pollution. The
company feels by bearing extra cost it is fulfilling its responsibility.Whichconcept of
marketing management is being followed?

a) production concept b) product concept

c) selling concept d) social marketing concept.

Reasoning Assertion based questions

1. Assesrion(A)Exchange mechanism is known as essence of marketing.

Reasoning (R) Customer receives goods and services and producer receives price for product
through procees of exchange.
a. Both are correct and (R) is the correct explanation of (A)
b. Both are correct but (R) is not the correct explanation of (A)
c. Both statements are incorrect
d. (A) is correct but (R) is incorrect.

2. Assertion(A)the purpose of marketing is to generate customer valueat a profit Reasoning

(R)Marketing is the process of satisfying needs and wants of customers through the process
of exchange
 a) Both are correct and (R) is the correct explanation of (A)
b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

3. Assertion
(A)Selling focuses on profit maximization through maximization ofsales
Reasoning (R)Selling is considered as a part of marketing

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

4. Assertion (A)Production concept focuses on increasing scale of production to reduce price of

products.
Reasoning (R)Production concept is used where demand is more than supply.
a) Both are correct and (R) is the correct explanation of (A)
b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

5.Assertion (A)Social marketing concept is followed generally by marketers in present time.

Reasoning (R)Social responsibility is considered as an important aspect to get success in the business.
a) Both are correct and (R) is the correct explanation of (A)
b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

6. Assertion (A)Production mix is the combination of all decisions taken by marketers regarding
product.
Reasoning (R)Product mix covers only tangible attributes of products.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

7.Assertion (A)Brand is used to identify a product in market by customers.

Reasoning (R)Brand provides a specific name to a product.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

8.Assertion (A)Packaging is known as a silent salesman.

Reasoning (R)Attractive and innovative package can attract a lot of customers to purchase the
product.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
 d) (A) is correct but (R) is incorrect

9. Assertion (A)A firm sets lower price per unit to increase profit in long run.
Reasoning (R)Lower price increases demand for the product and market area to earn greater profit
through sales .

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

10. Assertion (A)There should be a balance in level of inventory maintained in warehouse.

Reasoning (R)Higher level will increase the cost of carrying inventory and lower level will make
difficult to fulfill demand.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

11. Assertion
(A)Advertising iscalled paid form of impersonal communication.
Reasoning (R)Advertising covers a large market area with low cost.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

12. Assertion
(A)Personal selling is called a dialogue.
Reasoning (R)Personal selling is possible through face to face contact and communication with
customers.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

13. Assertion
(A)Sales promotionactivities are occasionally used.
Reasoning (R)Sales promotion activities are short term incentives offered to customers for making
immediate purchase.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

14. Assertion
(A)Expenditure on advertisement is not a waste but a profitable investment.
Reasoning (R)Advertisements increases sales of products in the long run and increases profit for the
business.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
 c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

15. Assertion
(A)Industrial products are easily sold through personal selling.
Reasoning (R) Queries of customers can be easily solved in personal selling.

a) Both are correct and (R) is the correct explanation of (A)

b) Both are correct but (R) is not the correct explanation of (A)
c) Both statements are incorrect
d) (A) is correct but (R) is incorrect

Matching based questions

1.
Statement Marketing concept
1.Scale of production a) Product concept
2.Quality of product b) Selling concept
3.Promotional activities c) production concept
4.Customer satisfaction d) Marketing concept.
a) 1-a, 2-b, 3-d, 4-c
b) 1-a, 2-c, 3-d, 4-b
c) 1-c, 2-a, 3-b, 4-d
d) 1-c, 2-a, 3-d, 4-b

2.
Statement Marketing mix
1.Combination of tangible and A) Place mux
intangible attributes of products
2.It is related to deciding about B) promotion mix
pricing of product
3.It is related to providing C) price mix.
information and persuading
customer
4.Providing product to customer at D) product mix.
the right time, at the right quantity
and at the right place.
a) 1-A, 2-C, 3-D, 4-B
b) 1-D, 2-C, 3-B, 4-A
c) 1-C, 2-D, 3-B, 4-A
d) None of the above.

3.
Statement Components of product mix
1.Process of preparing a name, a) Packaging
sign or symbol for a product
2.Process of preparing an wrapper b) labelling
56

or container for product

Page

3.Procees of preparing a slip used c) branding

to describe information about
product
a) 1-b, 2-a, 3-c
 b) 1-c, 2-a, 3-b
c) 1-a, 2-c, 3-b
d) 1-c, 2-b, 3-c
4.

Statement Elements of promotion mix

1.It is paid form of a) advertising
personal
communication
2.It is made through b) sales promotion
identified sponsor
3.These are short term c) personal selling
incentives
4.It is non sale d) public relations
communication
a) 1-c, 2-a, 3-b, 4-d
b) 1-b, 2-c, 3-b, 4-d
c) 1-c, 2-a, 3-d, 4-b
d) 1-d, 2-b, 3-a, 4-d.