Business Studies; Class 12
Case studies
Chapter 4: Planning
Q1 Following is the process of planning but jumbled up. Identify the correct order:
1. Implement the plan
2. Identifying alternative courses of action
3. Setting objectives
4. Follow-up action
5. Developing premises
6. Selecting an alternative
7. Evaluating alternative courses of action
(a) 2, 3, 5, 7, 6, 4, 1
(b) 3, 5, 2, 7, 6, 1, 4
(c) 3, 2, 5, 7, 6, 1, 4
(d) 3, 5, 2, 7, 1, 4, 6
Ans (b) 3, 5, 2, 7, 6, 1, 4
Q2 Identify the type of Plan: “A plan which is a control device as well”
(a) Objective
(b) Rule
(c) Budget
(d) Programme
Ans (c) Budget
Q3 Identify the type of Plan: A plan in which the smallest details are worked out within the broad framework of a policy
(a) Objective
(b) Method
(c) Procedure
(d) Budget
Ans © Procedure
Q4 Following a pre decided plan which may not work because the circumstances have changed, brings to light which limitation of planning?
(a) Planning doesnot guarantee success
(b) Planning lacks accuracy
(c) Planning leads to rigidity
(d) Planning may not work in dynamic environment
Ans (d) Planning may not work in dynamic environment
Q5 Disco technology deals in manufacturing of LED bulbs. It plans for a successful year of production and sale this year. It has in advance given targets to all its departments and employees and therefore employees are happy about it. Identify the importance of planning highlighted above.
(a) Planning reduces wasteful and overlapping activities
(b) Planning establishes standards for controlling
(c) Planning provides directions
(d) Planning facilitates decision making
Ans (c) Planning provides directions
Q6 A saree manufacturing firm is facing competition from new entrants. In order to face new entrants the manufacturer decided to add a new product line of “designer sarees” to attract customers of higher income group. He allocated 5 crores in decoration of his new showroom. Identify the step of planning discussed above.
(a) Setting objectives
(b) Identifying alternative course of action
(c) Evaluating alternative courses
(d) Selecting an alternative
Ans (d) Selecting an alternative
Chapter 5: Organising
Q1 A tall structure has a
(a) Narrow span of management
(b) Wide span of management
(c) No span of management
(d) Less levels of management
Ans: (b) Wide span of management
2. Grouping of activities on the basis of product lines is a part of:
(a) Delegated organization
(b) Divisional organization
(c) Functional organisation
(d) Autonomous organisation
Ans: (b) Divisional Organisation
3. Which of the following relates to functional structure of organisation?
A. Formed on the basis of product
B. Grouping of jobs of similar nature under one department
C. Large varieties of product are manufactured
D. Easy to assess the profitability of each product.
Ans: (b) Grouping of jobs of similar nature under one department
4. Which of the following is not correct about ‘Job Designing’?
A. Combination of tasks to form a complete job
B. Clarity of activities in different jobs
C. Difficult to fix accountability
D. Helps to build organisation structure
Ans.(c) Difficult to fix accountability
5. Which of the following statement is true regarding ‘span of management’?
(a) It refers to the number of managers.
(b) It is the length of term for which a manager is appointed.
(c) It includes the number of subordinates under a superior.
(d) It includes the total number of subordinates under a superior.
Ans. (c) It includes the number of subordinates under a superior.
6. The marketing head of ABC Ltd. has been asked to report to the CEO of the company. Under which step in the process of organising, will the above presciption fall?
(a) Departmentalisation
(b) Identification and Division of Work
(c) Establishing Reporting Relationships
(d) Assignment of Duties
Ans. (c) Establishing Reporting Relationships
Chapter 6: Staffing
Total Questions: 6
Questions to be chosen: 3
1. “Disney uses Twitter to highlight the fantasy associated with the company and what it’s like working there.”
Which source of recruitment is being highlighted in the above statement?
A. Recommendations
B. Campus Recruitment
C. Internet Recruitment
D. Placement Agencies
Ans.(c) Internet Recruitment
2. Identify the type of test to which the following question belongs to:
“To what extent do you agree or disagree with the statement.
I am confident that work accidents won’t happen to me.”
A. Trade Test
B. Personality test
C. Aptitude Test
D. Motivation Test
Ans.(b) Personality Test
3. “Undergraduate students hired for 3 months from mid-June is a great way to experience the Coca-Cola culture and engaging with consumers from all over the world.”
Which method of training has been highlighted above?
A. Coaching
B. Internship Training
C. Job Rotation
D. Programmed Instructions
Ans.(b) Internship training
4. ‘You are fired! You are hired!’
As economic condition of companies improve, most companies use this source of recruitment. Identify.
A. Transfer
B. Promotion
C. Recalling of Laid off Employees
D. Casual callers
Ans. (C) Recalling of Laid off Employees
5. Proficiency of an employees may be tested through:
A. Dexterity Test
B. Interest Test
C. Movement Test
D. Personality Test
Ans. (d) Personality Test
6. Which of the following is not an internal source of recruitment?
A. Transfer
B. Promotion
C. Employment Exchange
D. Present Employees
Ans. (c) Employment Exchange
Chapter-7 Directing
1. Vice Chairman Tom Mendoza OF NetAppasks managers to notify him when they “catch someone doing something right,” and then calls 10 to 20 employees every day to thank them.
Which type of motivational incentive is being used by NetApp to motivate its employees?
A. Employee Recognition
B. Employee Empowerment
C. Job Enrichment
D. Job Security
Ans. (a) Employee Recognition
2. The communication network in which a subordinate is allowed to communicate with his immediate superior as well as his superior’s superior.
(a) Free flow network
(b) Inverted V network
(c) Circular network
(d) Wheel network
Ans. (b) Inverted V network
3. The boss uses the words “I am extremely appreciative of your efforts in my behalf” instead of ‘Thank You’ which confused the subordinate and he assumed that the boss is taking all the credits. Name the type of communication barrier concerned.
(a) Psychological Barrier
(b) Organisational Barrier
(c) Semantic Barrier
(d) Psychological Barrier
Ans (b)Semantic Barrier
4. Rahul Ltd. Follows a policy of communication in written form only. Therefore anything that could be conveyed in a few words has to be in written form and leads to delay in the work.
Which barrier is restricting perfect communication?
(a) Psychological Barrier
(b) Organisational Barrier
(c) Semantic Barrier
(d) Psychological Barrier
Ans (b) Organisational Barrier
5. Bill Gates, the founder of Microsoft empowered his subordinates to innovate in products, process, markets and always involved them in decision making. Which style of leadership does Bill Gates follow?
(a)Autocratic Leadership
(b)Democratic Leadership
(c)0Laissez-faire Leadership
(d)Directive Leadership
Ans (b) Democratic Management
6. If a U.S. employee passes away while working for Google, the employee’s spouse or domestic partner receives 50% of the deceased’s salary, no matter how long or short his tenure, every year for the next decade.
Which need in the Maslow’s Need Hierarchy Theory of Motivation is being addressed by Google?
(a) Safety Need
(b) Self-Actualisation Need
(c) Esteem Need
(d) Physiological Need
Ans. (a) Safety Need
7. The most effective leader is one who:
(a) makes managerial decisions without consulting others
(b) Works with managers and employees to make decisions
(c) Has the leadership style most appropriate to the situation and the employee needed
(d) Who believes that subordinates does not want to work and need to be told each and everything
Ans. (c) Has the leadership style most appropriate to the situation and the employee needed
8. Communication begins with
(a) Encoding
(b) Decoding
(c) Idea Generation
(d) Channel Selection
Ans. (c) Idea Generation
Chapter-7 Controlling
1. Which of the following would be included in the “controlling function”?
(a) Providing clarity in working relationships
(b) Motivating and guiding employees
(c) Comparing actual performance with standards
(d) Giving assignments
Ans. (c) comparing actual performance with standards
2. Supervisory Management spends most of his/her time in:
(a) planning and controlling.
(b) Directing and controlling.
(c) Planning and organising.
(d) Organizing and controlling.
Ans.(b) Directing and controlling
3. An example of an effective standard for a control system would be:
(a) reduction of defects from 25 to 5 in every 2000 pieces produced.
(b) Deciding to hire 10 new employees
(c) Improving the quality of production
(d) Renting new premises.
Ans(a) reduction of defects from 25 to 5 in every 2000 pieces produced.
Case studies
Chapter 4: Planning
Q1 Following is the process of planning but jumbled up. Identify the correct order:
1. Implement the plan
2. Identifying alternative courses of action
3. Setting objectives
4. Follow-up action
5. Developing premises
6. Selecting an alternative
7. Evaluating alternative courses of action
(a) 2, 3, 5, 7, 6, 4, 1
(b) 3, 5, 2, 7, 6, 1, 4
(c) 3, 2, 5, 7, 6, 1, 4
(d) 3, 5, 2, 7, 1, 4, 6
Ans (b) 3, 5, 2, 7, 6, 1, 4
Q2 Identify the type of Plan: “A plan which is a control device as well”
(a) Objective
(b) Rule
(c) Budget
(d) Programme
Ans (c) Budget
Q3 Identify the type of Plan: A plan in which the smallest details are worked out within the broad framework of a policy
(a) Objective
(b) Method
(c) Procedure
(d) Budget
Ans © Procedure
Q4 Following a pre decided plan which may not work because the circumstances have changed, brings to light which limitation of planning?
(a) Planning doesnot guarantee success
(b) Planning lacks accuracy
(c) Planning leads to rigidity
(d) Planning may not work in dynamic environment
Ans (d) Planning may not work in dynamic environment
Q5 Disco technology deals in manufacturing of LED bulbs. It plans for a successful year of production and sale this year. It has in advance given targets to all its departments and employees and therefore employees are happy about it. Identify the importance of planning highlighted above.
(a) Planning reduces wasteful and overlapping activities
(b) Planning establishes standards for controlling
(c) Planning provides directions
(d) Planning facilitates decision making
Ans (c) Planning provides directions
Q6 A saree manufacturing firm is facing competition from new entrants. In order to face new entrants the manufacturer decided to add a new product line of “designer sarees” to attract customers of higher income group. He allocated 5 crores in decoration of his new showroom. Identify the step of planning discussed above.
(a) Setting objectives
(b) Identifying alternative course of action
(c) Evaluating alternative courses
(d) Selecting an alternative
Ans (d) Selecting an alternative
Chapter 5: Organising
Q1 A tall structure has a
(a) Narrow span of management
(b) Wide span of management
(c) No span of management
(d) Less levels of management
Ans: (b) Wide span of management
2. Grouping of activities on the basis of product lines is a part of:
(a) Delegated organization
(b) Divisional organization
(c) Functional organisation
(d) Autonomous organisation
Ans: (b) Divisional Organisation
3. Which of the following relates to functional structure of organisation?
A. Formed on the basis of product
B. Grouping of jobs of similar nature under one department
C. Large varieties of product are manufactured
D. Easy to assess the profitability of each product.
Ans: (b) Grouping of jobs of similar nature under one department
4. Which of the following is not correct about ‘Job Designing’?
A. Combination of tasks to form a complete job
B. Clarity of activities in different jobs
C. Difficult to fix accountability
D. Helps to build organisation structure
Ans.(c) Difficult to fix accountability
5. Which of the following statement is true regarding ‘span of management’?
(a) It refers to the number of managers.
(b) It is the length of term for which a manager is appointed.
(c) It includes the number of subordinates under a superior.
(d) It includes the total number of subordinates under a superior.
Ans. (c) It includes the number of subordinates under a superior.
6. The marketing head of ABC Ltd. has been asked to report to the CEO of the company. Under which step in the process of organising, will the above presciption fall?
(a) Departmentalisation
(b) Identification and Division of Work
(c) Establishing Reporting Relationships
(d) Assignment of Duties
Ans. (c) Establishing Reporting Relationships
Chapter 6: Staffing
Total Questions: 6
Questions to be chosen: 3
1. “Disney uses Twitter to highlight the fantasy associated with the company and what it’s like working there.”
Which source of recruitment is being highlighted in the above statement?
A. Recommendations
B. Campus Recruitment
C. Internet Recruitment
D. Placement Agencies
Ans.(c) Internet Recruitment
2. Identify the type of test to which the following question belongs to:
“To what extent do you agree or disagree with the statement.
I am confident that work accidents won’t happen to me.”
A. Trade Test
B. Personality test
C. Aptitude Test
D. Motivation Test
Ans.(b) Personality Test
3. “Undergraduate students hired for 3 months from mid-June is a great way to experience the Coca-Cola culture and engaging with consumers from all over the world.”
Which method of training has been highlighted above?
A. Coaching
B. Internship Training
C. Job Rotation
D. Programmed Instructions
Ans.(b) Internship training
4. ‘You are fired! You are hired!’
As economic condition of companies improve, most companies use this source of recruitment. Identify.
A. Transfer
B. Promotion
C. Recalling of Laid off Employees
D. Casual callers
Ans. (C) Recalling of Laid off Employees
5. Proficiency of an employees may be tested through:
A. Dexterity Test
B. Interest Test
C. Movement Test
D. Personality Test
Ans. (d) Personality Test
6. Which of the following is not an internal source of recruitment?
A. Transfer
B. Promotion
C. Employment Exchange
D. Present Employees
Ans. (c) Employment Exchange
Chapter-7 Directing
1. Vice Chairman Tom Mendoza OF NetAppasks managers to notify him when they “catch someone doing something right,” and then calls 10 to 20 employees every day to thank them.
Which type of motivational incentive is being used by NetApp to motivate its employees?
A. Employee Recognition
B. Employee Empowerment
C. Job Enrichment
D. Job Security
Ans. (a) Employee Recognition
2. The communication network in which a subordinate is allowed to communicate with his immediate superior as well as his superior’s superior.
(a) Free flow network
(b) Inverted V network
(c) Circular network
(d) Wheel network
Ans. (b) Inverted V network
3. The boss uses the words “I am extremely appreciative of your efforts in my behalf” instead of ‘Thank You’ which confused the subordinate and he assumed that the boss is taking all the credits. Name the type of communication barrier concerned.
(a) Psychological Barrier
(b) Organisational Barrier
(c) Semantic Barrier
(d) Psychological Barrier
Ans (b)Semantic Barrier
4. Rahul Ltd. Follows a policy of communication in written form only. Therefore anything that could be conveyed in a few words has to be in written form and leads to delay in the work.
Which barrier is restricting perfect communication?
(a) Psychological Barrier
(b) Organisational Barrier
(c) Semantic Barrier
(d) Psychological Barrier
Ans (b) Organisational Barrier
5. Bill Gates, the founder of Microsoft empowered his subordinates to innovate in products, process, markets and always involved them in decision making. Which style of leadership does Bill Gates follow?
(a)Autocratic Leadership
(b)Democratic Leadership
(c)0Laissez-faire Leadership
(d)Directive Leadership
Ans (b) Democratic Management
6. If a U.S. employee passes away while working for Google, the employee’s spouse or domestic partner receives 50% of the deceased’s salary, no matter how long or short his tenure, every year for the next decade.
Which need in the Maslow’s Need Hierarchy Theory of Motivation is being addressed by Google?
(a) Safety Need
(b) Self-Actualisation Need
(c) Esteem Need
(d) Physiological Need
Ans. (a) Safety Need
7. The most effective leader is one who:
(a) makes managerial decisions without consulting others
(b) Works with managers and employees to make decisions
(c) Has the leadership style most appropriate to the situation and the employee needed
(d) Who believes that subordinates does not want to work and need to be told each and everything
Ans. (c) Has the leadership style most appropriate to the situation and the employee needed
8. Communication begins with
(a) Encoding
(b) Decoding
(c) Idea Generation
(d) Channel Selection
Ans. (c) Idea Generation
Chapter-7 Controlling
1. Which of the following would be included in the “controlling function”?
(a) Providing clarity in working relationships
(b) Motivating and guiding employees
(c) Comparing actual performance with standards
(d) Giving assignments
Ans. (c) comparing actual performance with standards
2. Supervisory Management spends most of his/her time in:
(a) planning and controlling.
(b) Directing and controlling.
(c) Planning and organising.
(d) Organizing and controlling.
Ans.(b) Directing and controlling
3. An example of an effective standard for a control system would be:
(a) reduction of defects from 25 to 5 in every 2000 pieces produced.
(b) Deciding to hire 10 new employees
(c) Improving the quality of production
(d) Renting new premises.
Ans(a) reduction of defects from 25 to 5 in every 2000 pieces produced.
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