ARIHANT NAHAR (CELL: 8949647195)

Arihant commerce academy

Full Marks : 40 Time allowed: 1 Hour
1. Nirv Ltd. was a market leader in the Healthcare segment, but with the entry of MNCs its market share is
declining. In order to deal with the situation the General Manager of the company dispersed some of his
authority to different levels throughout the organisation so as to enable the managers take suitable decisions
and actions which are within their respective jurisdiction. Identify the concept of management which has
been described above.
(a) Delegation (b) Decentralisation (c) Span of management (d) None of the above
2. 'Manoranjan' is a leading telecommunications company in India. On taking the annual subscription of a
DTH connection the company is charging only for 11 months and offering one month free subscription.
Identify the component of promotion mix adopted by the company to boost its sales.
(a) Advertising (b) Personal selling (c) Sales promotion (d) Public relation
3. "This approach is applicable in the cases of unsought goods like life insurance, vacuum cleaner, fire
fighting equipment including fire extinguishers. These companies are seen having a strong network of sales
forceThis concept is applicable for the firms having over capacity in which their goal is to sell what they
produce than what the customer really wants."
Identify the marketing concept being referred to in the above paragraph.
(a) Product concept (b) Production concept
(c) Selling concept (d) Marketing concept
4. Organising helps in creating a hierarchical order thereby enabling the fixation of responsibility and
specification of the extent of authority to be exercised by employee. Identify the relevant point of
importance of organising.
(a) It brings clarity in working relationships (b) Ensures optimum utilization of resources
(c) Provides benefits of specialisation (d) Effective administration
5. Identify the concept which will help the Human Resource Manager in deciding the actual number of
persons required in each department.
(a) Workload analysis (b) Workforce Analysis
(c) Job description (d) None of these
6. It is an important principle of management control based on the belief that an attempt to control
everything results in controlling nothing. Identify the principle.
(a) Critical Point Control (b) Management by Exception
(c) Deviation (d) All of the above
7. Why do all financial decisions, major or minor, aim to ensure that benefits from the investment exceed the
cost so that some value addition takes place and the market price of equity shares is maximised?
(a) For achieving the objective of wealth maximisation
(b) For achieving the objective of profit maximisation
(c) both options (a) and (b)
(d) None of the above
8. Mohit works as a production manager in a company dealing in stationery products. Every year at the time
of drawing annual production plans he along with his team have to undertake intellectual thinking involving
foresight, visualisation and judgement. This is because plans cannot be made on guess work. Identify be
related feature of planning being described above.
(a) Planning is a primary function (b) Planning is pervasive
(c) Planning invoice decision making (d) Planning is a mental exercise
9. Which of the following is not a component of social environment of business.
(a) Growth rate (b) Per capita income
(c) Composition of population (d) Life expectancy of people
 ARIHANT NAHAR (CELL: 8949647195)
10. Name the marketing function which is one of the very important means of implementing differential
pricing strategy.
(a) Branding (b) Labelling (c) Packaging (d) All of the above
11. Vishesh Ltd. is a popular company engaged in the business of selling rehabilitation equipment. It is
planning to open two new outlets in the vicinity of two different hospitals respectively in next three months
by taking the place on lease.
Identify the factor affecting fixed capital requirements of the company.
(a) Level of collaboration (b) Financial alternatives
(c) Nature of business (d) Technology up gradation
12. Match the following by choosing the correct option.
Column A Column B
(1) Trade test (a) Defines the Interests of the candidate
(ii) Personality test (b) Evaluate the potential. of a candidate in acquiring new skills and develop
(iii) Aptitude test (c) Provide an insight in to a person's emotions, her reactions, maturity and value
system etc.
(iv) Interest test (d) Measure the knowledge, skills and proficiency that a candidate possess with
regard to a particular job position.
(a) (i)-(b); (ii)-(c); (iii)-(a); (iv)-(d) (b) (i)-(b); (ii)-(d); (iii)-(a); (iv)-(c)
(c) (1)-(d); (ii)-(c); (iii)-(b); (iv)-(a) (d) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
13. The Principles of Management are considered to be _______ as their application is dependent upon the
prevailing situation at a particular point of time.
(a) Flexible (b) Contingent (c) General Guidelines (d) Mainly Behavioural
14. The application of this principle of management leads to higher production and better work for the same
effort. Identify the related principle of general management.
(a) Discipline (c) Division of work (b) Equity (d) Order
15. Anuradha has been selling home made cakes, cookies and breads which are made to order. Over the past
one year she has witnessed a sudden surge in her business during festival season due to the growing
preferences of people for hygiene and quality. Identify the related dimension of business environment.
(a) Economic dimension (c) Political dimension
(b) Social dimension (d) Technological dimension
16. A consumer durable company presently employing 8,000 people, desires to diversify its business in the
furniture segment. To achieve its objectives it has started shifting from a centralised to a decentralised
management system. Identify the management function being performed by the company to become a
decentralised company.
(a) Planning (b) Organising (c) Staffing (d) Directing
17. SEBI can call for information by undertaking inspection, conducting enquiries and audits of stock
exchanges and intermediaries. Identify the related function of securities and exchange Board of India.
(a) Regulatory function (c) Protective function
(b) Developmental function (d) All of the above
18. Nidhi is working as the Human Resource Consultant in a firm manufacturing footwear, which is facing a
problem of high employee turnover. Nidhi has recommended that the good employees should be rewarded in
a way that it creates a feeling of ownership among the employees and at the same time makes them
contribute towards the growth of the organisation.
Identify the incentive which has been suggested by Nidhi.
(a) Productivity linked wage incentives (b) Bonus
(c) Profit Sharing (d) Co-partnership
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19. In order to enhance the easy marketability of the products, Dev, a producer gets the home furnishing
products manufactured in confirmation to the predetermined specifications. Identify the type of marketing
function being described in the given case.
(a) Physical distribution (b) Standardisation and grading
(c) Transportation (d) Warehousing
20. Identify the correct sequence of steps involved in the motivation process.
(a) Tension, drives, search behaviour, unsatisfied need, satisfied behaviour, reduction of tension
(b) Unsatisfied need, tension, drives, search behaviour, satisfied behaviour, reduction of tension
(c) Drives, search behaviour, unsatisfied need, tension, satisfied behaviour, reduction of tension
(d) Search behaviour, reduction of tension, unsatisfied need, tension, drives, satisfied behaviour
21. The Return on Investment (ROI) of Bhumi Ltd., a real estate company ranges between 15%-17% for the
past two years. In order to finance its expansion plans the company has the following option for borrowing
debts.
Option A: Rate of Interest 18%
Option B: Rate of Interest 12%
Which of the two source of debts, Option A or Option B would you recommend?
(a) Option A (c) Either (a) or (b) (b) Option B (d) None of the above
22. Mrs. Chetna Dixit of Bangalore received a crumbled cake, bad in taste, accompanied with low-priced
greeting card after a delay of two days as against her order based on the rosy photos and promises on their
website. She approached the seller but he did not respond to her complaint. So, she filed a case in the
District Forum and on receiving the legal notice the seller realized that he will be in lot of problems if the
matter goes any further.
Identify the right of the consumer which was exercised by Mrs. Chetna Dixit by filling a case.
(a) Right to Seek redressal (c) Right to be heard
(b) Right to safety (d) Right to consumer education
23. Identify the correct sequence of steps involved in the communication process.
(a) Sender, Message, Media, Encoding, Decoding, Receiver, Feedback
(b) Sender, Decoding, Receiver, Feedback, Message, Encoding, Media
(c) Sender, Message, Encoding, Media, Decoding, Receiver, Feedback
(d) Sender, Media, Decoding, Receiver, Message, Encoding, Feedback
24. Jasmine Ahluwalia is the manager of an artefacts museum's marketing team, responsible for promoting
exhibitions and events. In the previous season, she defined the total work of managing the events into
graphic designing, registration inquiries, bill payments, etc, in order to facilitate specialisation. However,
instead of allocating work, she had assigned each team member the full responsibility of managing the
promotion of an entire event Inspite of holding regular team meetings to take feedback, Jasmine found
problems throughout the events season in the quality of graphic design, registration inquiry, bill payments,
etc..
For the upcoming events season, Jasmine has decided to divide these responsibilities on the basis of her
observation of the areas in which the individual team members have excelled in the previous season and
allocate the roles based on their skills and competencies.
Identify the step in the organising process which was not properly performed in the previous season but has
been duly performed for the upcoming season.
(a) Identification and division of work (b) Establishing reporting relationships
(c) Departmentalisation (d) Assignment of duties
25. Goodwill Enterprises is a large-scale automobile manufacturer, who fulfils the needs of both industrial
users and consumers. The company is providing easy finance facilities at a low rate of interest, which has
considerably increased the demand for the product. The company has installed a new branch management
software to efficiently manage and coordinate activities across their multiple branches and locations.
Identify the components of the business environment from the above case study.
 ARIHANT NAHAR (CELL: 8949647195)
(a) Political and economic environment (b) Economic and social environment
(c) Technological and legal environment (d) Economic and technological environment
26. Read the following statements: Assertion (A) and Reason (R). Choose the correct alternative from those
given below:
Assertion (A): Controlling can prevent deviations.
Reason (R): Controlling helps in minimising deviations by taking actions and decisions that reduce their
recurrence.
(a) Both Assertion (A) is false and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of the
Assertion.
(d) Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of the Assertion
27. Joining a job marks the beginning of socialisation of employees at the workplace. The employee should
be given a post for which he has been selected.' Place the subsequent steps of staffing in a small organisation
in the correct order:
(a) Training and development, promotion and career planning, performance appraisal, compensation
(b) Performance appraisal, training and development, promotion and career planning, compensation
(c) Training development, performance appraisal, promotion and career planning, compensation
(d) Training and development, performance appraisal, compensation, promotion and career planning
28. Spiceworks, a company providing financial services to its clients is keeping a close check on the
employee's activities by using biometric and retina scanning as modes of accessing the office premises, in
order to ensure greater security of information in the organisation.
Choose the correct point of significance of controlling highlighted above:
(a) controlling helps in achievement of organisational goals
(b) controlling helps in ensuring order and discipline
(c) controlling helps in improving employees motivation
(d) controlling enables optimum utilisation of resources
29. Identify the incorrect statement with respect to Consumer Protection in India.
(a) It not only includes educating consumers about their rights and responsibilities but also helps in getting
their grievances redressed
(b) It not only requires a judicial machinery for protecting the interest of consumers but also requires the
consumers to get together and form themselves into Consumer associations for protection and promotion of
their interests.
(c) It is the moral duty of any business to take care of consumers' interest and avoid any form of
exploitation.
(d) The provisions of Consumer Protection Act came into force from 2009
30. ________ is concerned with designing jobs that include greater variety of work content, require higher
level of knowledge and skill, and give workers more autonomy and providing them opportunity for personal
growth and a meaningful work experience.
(a) Job security (b) Perquisites
(c) Employee recognition programme (d) Job enrichment
31. Mudro Infratech' got a short-term contract for building two villas within a period of ten months with the
expectation to earn a huge amount of profit. The Works Manager accepted this challenge and completed the
work within the given time period. The profit of the company went up by 40% due to this temporary order.
The Finance Manager was aware that the company would not earn this huge profit in the near future. So, he
decided not to increase dividend per share as earnings for the year had gone up, but not the earning potential
of the company. He also knew that this increase in earnings was temporary in nature.
The factor affecting Dividend Decision being highlighted above is:
 ARIHANT NAHAR (CELL: 8949647195)
(a) Cash flow position (b) Shareholders' preference
(c) Growth opportunities (d) Stability of dividends
32. 'Maslow's Need Hierarchy theory' is based on certain assumptions. Identify the incorrect statement with
respect to these assumptions:
(a) People's behaviour is based on their needs.
(b) A satisfied need can no longer motivate a person.
(c) People's needs are in a hierarchical order, starting from basic needs to higher level needs.
(d) A person moves to lower level of need only when a higher level need is satisfied
33. Choose the incorrect statement with respect to demonetization:
(a) The two largest denomination notes of ₹ 500 and 1000 were demonetized with immediate effect, ceasing
to be legal tender except for buying properties.
(b) The aim of this step was to curb corruption and accumulation of black money.
(c) It led to the tax administration channelizing savings into the formal financial system
(d) Restrictions were placed on the convertibility of domestic money and bank deposits.
34. From the following, identify the one which is not a function of stock exchange:
(a) Providing liquidity and marketability to existing securities
(b) Spreading of equity cult
(c) Ensuring safety of transactions
(d) Ensuring that there is no scope for speculation
35. 'Panmol Dairy' started using environment-friendly 'Bilona' method of making ghee, unlike other dairies
which were using modern methods involving machines and chemicals. By doing this, 'Panmol Dairy' is
providing employment to hundreds of illiterate people in the rural areas. Which objective of management is
'Panmol Dairy' trying to achieve:
(a) National objective (b) Personal objective (c) Social objective (d) Economic objective
36. Which of the following statements is not highlighting the importance of financial planning:
(a) It helps in forecasting what may happen under different business situations.
(b) It helps in avoiding business shocks and surprises and helps the company in preparing for the future.
(c) It provides a link between investment and financing decisions on a continuous basis.
(d) Detailed plans of action prepared under financial planning increases waste, duplication of efforts and
gaps in planning.
37. Cartoony Planet' is a well-known indoor playground for organising parties for children in Noida. It has
many play-stations and it organises various activities for the kids to enjoy. Looking at the increasing number
of children visiting 'Cartoony Planet', a new indoor playground in the name of 'Tiny-Tots House' came up
with advanced swings, play stations and entertainment activities near 'Cartoony Planet'.
To compete with the newly opened indoor playground, 'Cartoony Planet' also added some advanced swings
and entertainment activities to attract more children.
The above information highlights one of the features of 'Business Environment'. Identify the feature from
the following:
(a) Uncertainty (b) Dynamic Nature (c) Relativity (d) Interrelatedness
38. Match the factors affecting fixed capital requirements given in the Column-I with their explanations
given in Column-II:
Column A Column B
(a) Nature of Business (i) A trading organisation needs lower investments in fixed assets as compared to
a manufacturing organisation.
(b) Technology (ii) A textile manufacturing company is installing a cement manufacturing plant
upgradation and thus its investments in fixed assets is increasing.
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(c) Diversification (iii) A capital-intensive organisation requires higher investments in fixed assets
as compared to labour-intensive organisation.
(d) Choice of (iv) Mobile phones became obsolete faster and are replaced much sooner than
Technique furniture or many other assets. Hence these type of businesses require more fixed
capital.
(a) (a)(i); (b)(iv); (c)—(ii); (d)—(iii)
(b) (a)(ii); (b)(iii); (c)-(iv); (d)(i)
(c) (a)(iii); (b)(ii); (c)—(i); (d)(iv)
(d) (a)(id); (b)(i); (c)—(iii); (d)—(ii)
39. Which of the following statements is incorrect?
(a) Capital Market refers to facilities and institutional arrangements through whic long-term funds, both debt
and equity are raised and invested.
(b) Secondary market is the market where securities are sold by the company to the investor directly or
through an intermediary.
(c) Primary Market is the Market where only buying of securities takes place. Securities can not be sold
there.
(d) Money Market is a market for short term funds which deals in monetary assets whose period of maturity
is upto one year.
40. Which of the following is NOT a factor affecting capital structure of a company?
(a) Cost of Debt
(b) Growth Opportunities
(c) Cash Flow Position
(d) Interest Coverage Ratio