Thursday, 14 January 2021

Class 12 - Business Studies - MCQs - Set-1 (#cbse2020)(#eduvictors)(#class12BusinessStudies)

Class 12 - Business Studies - MCQs - Set-1 

Class 12 - Business Studies - MCQs - Set-1 (#cbse2020)(#eduvictors)(#class12BusinessStudies)

Q1: _________________is the transfer of authority from superior to subordinate, entrustment of responsibility and creation of accountability of performance.

a) Decentralisation

b) Supervision

c) Delegation

d) Direction

Q2: Business environment differs from country to country, region to region as political conditions and cultures are different in different countries. Which feature of the business environment is being highlighted in the above statement?

a) Uncertainty

b) Relativity

c) Dynamic

d) Specific and general forces

Q3: Identify an important principle of management control in which only significant deviations which go beyond the permissible limit should be brought to the notice of management.

a) Control by exception

b) Management by control

c) Critical point control

d) Both (b) and (c)

Q4: Which of the following is not an element of economic environment?

a) Gross Domestic product

b) Money supply in the economy

c) Constitution of the country

d) Monetary policy of the country

Q5: Which one is not correct in respect of delegation of authority?

a) Increase in administrative work

b) Development of subordinates

c) Convenience in business expansion

d) Possibility of quick and better decisions

Q6: People in urban areas are extensively using organic food, bottled water and food supplements. It is an example of ________environment.

a) Legal

b) Political

c) Economic

d) Social

Q7: ATC services CEO Rajang Gopinath’s compensation includes salary, commission and other allowances. The company also pays for his insurance and vacations. Identify one indirect payment being made by the company to the CEO.

a) Salary

b) Commission

c) Allowances

d) Employer paid insurance

Q8: Name the process by which a manager synchronises the activities of different departments?

Q9: The manager should have the right to punish a subordinate for willfully not obeying orders but only after sufficient opportunity has been given to him/her for presenting his/her case.

Identify the principle of management highlighted in the above statement.

a) Unity of command.

b) Discipline.

c) Authority and Responsibility.

d) Order

Q10: “In a manufacturing organization, if the plans lay down 5% increase in labour cost as an acceptable range of deviation, then only increase in labour cost beyond 5% should be brought to the notice of the management for corrective action.”

This is an example of :

a) Management by exception

b) Critical Point control

c) Both a & b

d) None of the above

Q11: Organisations having plans of expansion and diversification must adapt:-

a) Functional structure.

b) Divisional structure.

c) Both (a) and (b).

d) None of the above.

Q12: ________ is a process that initiates implementation of plans by clarifying jobs and working relationships and effectively deploying resources for attainment of identified and desired results.

a) Planning

b) Organising

c) Staffing

d) Controlling

Q13: Which of the following statements is FALSE about Standards:

a) Standards should be simple and easy to understand both for short and for long term.

b) Standards should be achievable.

c) Standards should be set in precise qualitative terms.

d) Standards should be flexible enough to be modified when the need arises, in view of the changes taking place both in the internal as well as external business environments.

Read the following text and answer question No.14-17 on the basis of the same:

Manya Pvt. Ltd. wants to raise Rs. 5 crores for its new project. The company’s management suggested options for the same. It hired the services of Akshit Ltd. a financial consultancy. It was decided that to meet urgent requirement of 1 crore of rupees, company will raise funds from financial instituition. For remaining 2 crores, company will issue preference shares with the help of Underwriters. For the balance, a new issue of equity shares will be subscribed by inviting public. All these options were accepted by the Board of Directors.

Q14: Identify the reason which has made the company to raise 1 crore rupees from financial instituition.

a) It is not expensive 

b) Quick source to raise funds 

c) Both a & b

d) None of the above

Q15: Identify the method of raising funds through preference shares.

a) Offer for sale

b) Rights issue

c) Private Placement of shares

d) Offer through prospectus

Q16: “For the balance, a new issue of equity shares will be subscribed by inviting public.” Identify the method of floatation of new issue taken up by the company.

a) Offer for sale

b) Rights issue

c) E-IPO

d) Offer through prospectus

Q17: After above cases, the total capital of Manya Ltd. is 10 crores rupees. The amount of debt is 5 crores of rupees. The company has earned a profit of rupees 3 crores. It’s return on investment (ROI) for this year will be :

a) 30 %

b) 40%

c) 20%

d) 50%


1: c) Delegation

2: b) Relativity

3: a) Control by exception

4: c) Constitution of the country

5: a) Increase in administrative work 

6: d) Social

7: d) Employer paid insurance

8: Coordination

9: c) Authority and Responsibility

10: a) Management by exception

11: b) Divisional structure

12: b) Organising

13: c) Standards should be set in precise qualitative terms

14: c) Both a & b

15: c) Private Placement of shares

16: d) Offer through prospectus

17: a) 30 %

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