1. All questions are compulsory.

2. The paper consists of 50 marks in total.

3. Each question carries 1 mark, unless stated otherwise.

Q.1) The statement: “Keeping in view changes in consumer demands and

preferences, the bakery has changed its menu” indicates which
characteristic of management?

a) Management is intangible

b) Management is a goal oriented process

c) Management is dynamic

d) Management is a profession

Q 2) The principles of management are said to be evolutionary because:

A) They were all developed in the last 10 years

B) They change with changing business environment

C) They are fixed and unchanging laws

D) They apply only to large organisations

Q.3) The growing awareness about health care and fitness among urban
population has led to increased demand for health-food, gyms, wellness
clinics, etc. Which feature of business environment is illustrated here?

a) Dynamic nature

b) Uncertainty

c) Relativity

d) Inter-relatedness

Q.4) Which of the following statements reflects the importance of

planning: “Employees would be working in different directions and the
organisation would not be able to achieve its goals”?

(a) Planning provides direction

(b) Planning reduces the risk of uncertainty

(c) Planning facilitates decision‐making

(d) Planning creates standards for controlling.

Q.5) “When managers are made responsible for coordinating a particular

number of jobs effectively” is called:

(a) Adaptation

(b) Span of control

(c) Coordination

(d) Job design.

Q.6) Which one of the following combinations of activities in sequential

order is correct (for staffing)?

A. Recruitment → selection → training → placement

B. Selection → training → recruitment → placement

C. Recruitment → selection → placement → training

D. Recruitment → training → selection → placement.

Q.7) The leadership style in which the superior uses force or pressure
within the group to establish control is known as:

(a) Autocratic leadership

(b) Democratic leadership

(c) Laissez-faire leadership

(d) Authoritarian leadership.

Q.8) The sequence of steps in the controlling process is correct in which

option?

(a) Measurement of actual performance → Taking corrective action →

Setting standards → Comparison → Analysing deviations

(b) Setting standards → Measurement of actual performance →

Comparison with standards → Analysing deviations → Taking corrective
action
 (c) Setting standards → Comparison → Measurement → Analysing
deviations → Taking corrective action

(d) Taking corrective action → Setting standards → Measurement →

Comparison → Analysing deviations.

Q.9) The process which allows management to forecast fund-requirements

in terms of both quantity and timing is known as:

A. Dividend decision

B. Capital budgeting decision

C. Financial management

D. Financial planning .

Q.10) _______ is a link between savers & borrowers; helps to establish a

link between savers & investors.

(a) Marketing

(b) Financial market

(c) Money market

(d) None of these

Q.11) A company launches a low-priced sachet of shampoo targeting rural

cost-sensitive consumers. Which marketing mix element is being
emphasised?

A. Product

B. Price

C. Place

D. Promotion

Q.12) The decision regarding the choice of capital mix (owners’ funds vs
borrowed funds) is known as:

A. Investment decision

B. Financing decision
C. Dividend decision

D. Profit maximisation decision

Q.13) Management is considered a science because:

A. It is based on rational thinking and systematic body of knowledge

B. It uses personal creativity only

C. It has no principles or theories

D. It is fixed and cannot be changed.

Q. 14) The settlement cycle in a stock exchange is:

(a) T + 1 (b) T + 2 (c) T + 3 (d) T + 4

Q.15) The growing awareness about healthcare has increased demand for
wellness clinics. This describes which feature of business environment?

(a) Uncertainty

(b) Relativity

(c) Dynamic nature

(d) Inter-relatedness

Q.16) Which of the following statements is false about controlling?

(a) Planning without controlling is meaningless; controlling without

planning is blind.

(b) Controlling is a separable twin of management, independent of other

functions.

(c) Controlling helps in better coordination of activities.

(d) Controlling helps in efficient utilisation of resources.

Q.17) Which principle of management states: “Employee turnover should

be minimised to maintain organisational efficiency”?

(a) Stability of personnel

(b) Remuneration of employees

(c) Equity

(d) Esprit de corps

Q.18) Which need in Abraham Maslow’s hierarchy is being fulfilled when

an employee receives a letter confirming his job as a permanent
employee?

(a) Esteem needs

(b) Security needs

(c) Self-actualisation needs

(d) Basic physiological needs

Q.19) A company formulates a “rule” that no overtime will be allowed on

weekends. This “rule” is considered a type of plan because:

A. It is a spontaneous decision

B. It guides future actions by defining what is to be done or not done

C. It is only valid for a single use

D. It is not related to planning at all

Q.20) The statement “Putting the right person in the right job” refers to
which staffing function?

(a) Recruitment

(b) Selection

(c) Placement

(d) Training

Q.21) “Packaging acts as a silent salesman”. Which element of the

marketing mix does this statement relate to?

a) Product

b) Price

c) Place
d) Promotion

Q.22) Accountability is derived from _______.

(a) Authority

(b) Formal position

(c) Responsibility

(d) All of the above

Q.22) A business operating in India finds that its goods are subject to a
new tax policy by the government. This is an example of which specific
impact on business?

(a) Technological dimension

(b) Political/Legal dimension

(c) Social dimension

(d) Economic dimension

Q.23) Which of the following is a non-financial incentive?

(a) Bonus

(b) Salary hike

(c) Job enrichment

(d) Retirement benefit

Q.24) Assertion (A): Expenses on training are an investment for the future.

Reason (R): Training makes employees able to complete their work

efficiently and gives the benefit of specialisation to the organisation.

Choose the correct option:

(a) A is correct but R is not the correct explanation of A

(b) A is correct and R is the correct explanation of A

(c) Only A is correct, R is incorrect

(d) Both A and R are incorrect

Q.25) Which of the following is a function of packaging?

(a) Product protection

(b) Facilitates physical distribution

(c) Promotion of the product

(d) All of the above

Q.26) Which decision is concerned with choice between equity and debt
financing for a firm?

(a) Investment decision

(b) Dividend decision

(c) Financing decision

(d) Liquidity decision

Q.27) The function of “price discovery” in financial markets refers to:

a) Deciding the price of goods in retail markets

b) Determining the price of financial securities through supply and

demand

c) Fixing the price of raw materials

d) Setting maximum retail price by government

Q.28) Controlling brings the management cycle back to ________.

A) Organising

B) Directing

C) Planning

D) Staffing

Q.29) A plan which is used once for a project and then discarded for future
is called:

(a) Standing plan (b) Programme (c) Single-use plan (d) Method
Q.30) Which of the following cannot be delegated?

(a) Responsibility and accountability (b)Authority and responsibility

(c)Accountability and responsibility (d)All of the above

Q.31) A manufacturing-company decides to improve its existing school-

bag by adding a water-bottle holder, to better satisfy students’ needs.
Which marketing-management philosophy is it following?

A) Production concept

B) Product concept

C) Selling concept

D) Marketing concept

Q.32) Which kind of decision relates to how much of profits should be

retained in the business vs distributed to shareholders?

A) Investment decision

B) Financing decision

C) Dividend decision

D) Working capital decision

Q.33) The essence of management is considered to be:

a) Planning

b) Organising

c) Coordination

d) Staffing

Q.34) . “The Government of India introduced demonetisation of ₹500 and

₹1000 notes in 2016.” This example best relates to which environment
dimension?

A. Economic

B. Social
C. Legal

D. Technological

Q.35) Pervasiveness of planning means that planning:

a) Is only for top management

b) Extends throughout the organisation

c) Is only futuristic

d) Is only for short-term goals

Q.36) The concept of “one boss, one order” is described in which of

Fayol’s principles?

A) Unity of direction

B) Unity of command

C) Order

D) Centralisation