NTA CUET (UG) 10 Mock Test Sample Question Papers Business Studies (2024) 9789357288101, 9357288104

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For 2024 Exam

BEST SELLER

BUSINESS STUDIES Section II (Domain Specific Subject) Strictly ar per the Latest Examination Pattern issued by NTA

The ONLY book you need to Ace CUET (UG)

1

2

3

4

100% Exam Readiness

Extensive Practice

Concept Clarity

Valuable Exam Insights

With 10 Solved Sample Question Papers

With 550+ NCERT - based MCQs

With 350+ Explanations & Smart Answer Keys

With Latest Solved Paper 2023

(i)

3rd EDITION

ISBN

YEAR 2023-24 “9789357288101”

CUET (UG) CERTIFICATE OF COMMON UNIVERSITY ENTRANCE TEST

SYLLABUS COVERED

PUBLISHED BY

COPYRIGHT

RESERVED

BY THE PUBLISHERS All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without written permission from the publishers. The author and publisher will gladly receive information enabling them to rectify any error or omission in subsequent editions.

OSWAAL BOOKS & LEARNING PVT. LTD. 1/11, Sahitya Kunj, M.G. Road, Agra - 282002, (UP) India

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DIS C L AIMER

This book is published by Oswaal Books and Learning Pvt Ltd (“Publisher”) and is intended solely for educational use, to enable students to practice for examinations/tests and reference. The contents of this book primarily comprise a collection of questions that have been sourced from previous examination papers. Any practice questions and/or notes included by the Publisher are formulated by placing reliance on previous question papers and are in keeping with the format/pattern/ guidelines applicable to such papers. The Publisher expressly disclaims any liability for the use of, or references to, any terms or terminology in the book, which may not be considered appropriate or may be considered offensive, in light of societal changes. Further, the contents of this book, including references to any persons, corporations, brands, political parties, incidents, historical events and/or terminology within the book, if any, are not intended to be offensive, and/or to hurt, insult or defame any person (whether living or dead), entity, gender, caste, religion, race, etc. and any interpretation to this effect is unintended and purely incidental. While we try to keep our publications as updated and accurate as possible, human error may creep in. We expressly disclaim liability for errors and/or omissions in the content, if any, and further disclaim any liability for any loss or damages in connection with the use of the book and reference to its contents”.

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Preface National Testing Agency (NTA) has been established in November 2017 under the Societies Registration Act (1860) by the Ministry of Education as a premier, specialist, autonomous, and self-sustained testing organization to conduct entrance examinations for admission/fellowship in higher educational institutions. The Common University Entrance Test (CUET (UG) - 2022) is being introduced for admission into all UG Programmes in all Central Universities for the academic session 2023 under the Ministry of Education, (MoE). The Common University Entrance Test (CUET) will provide a common platform and equal opportunities to candidates across the country, especially those from rural and other remote areas, and help establish a better connection with the Universities. A single examination will enable the Candidates to cover a wide outreach and be part of the admissions process to various Central Universities. CUET – UG Computer Based Test (CBT) for the Central Universities is to be conducted by the National Testing Agency (NTA). The curriculum for CUET is based on the National Council of Educational Research and Training (NCERT) syllabus for class 12 only. CUET scores are mandatorily required while admitting students to undergraduate courses in 44 central universities. A merit list will be prepared by participating Universities/organizations. Universities may conduct their individual counselling on the basis of the scorecard of CUET (UG)-2023 provided by NTA.

A few benefits of studying from Oswaal Sample Question Papers • • • •

100% Exam Readiness With 10 Solved Sample Question Papers Extensive Practice With 550+ NCERT - based MCQs Concept Clarity With 350+ Explanations & Smart Answer Keys Valuable Exam Insights With Latest Solved Papers 2023

Our Heartfelt Gratitude! Finally, we would like to thank our authors, editors, and reviewers. Special thanks to our students who send us suggestions and constantly help improve our books. We promise to always strive towards ‘Making Learning Simple’ for all of you. Wish you all Happy Learning!

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-Team Oswaal Books

Positive Affirmations

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Contents l Oswaal Books Expert Tips to Crack CUET (UG) in the First Attempt

1 - 1

l Latest Syllabus

2 - 4

l CUET Solved Paper-2023 (29th May 2023)

7 - 15

l CUET Solved Paper 2022 18th August 2022 Slot-1

16 - 23

Sample Question Papers l Sample Question Paper - 1

1 - 5

l Sample Question Paper - 2

6 - 10

l Sample Question Paper - 3

11 - 15

l Sample Question Paper - 4

16 - 19

l Sample Question Paper - 5

20 - 24

l Sample Question Paper - 6

25 - 29

l Sample Question Paper - 7

30 - 33

l Sample Question Paper - 8

34 - 37

l Sample Question Paper - 9

38 - 42

l Sample Question Paper - 10

43 - 47

Solutions l Sample Question Paper - 1

48 - 50

l Sample Question Paper - 2

51 - 54

l Sample Question Paper - 3

55 - 58

l Sample Question Paper - 4

59 - 62

l Sample Question Paper - 5

63 - 65

l Sample Question Paper - 6

66 - 68

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Contd... Cont... l Sample Question Paper - 7

69 - 71

l Sample Question Paper - 8

72 - 74

l Sample Question Paper - 9

75 - 77

l Sample Question Paper - 10

78 - 79





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Books Expert Tips to Crack Oswaal BooksOswaal Expert Tips to Crack CUET (UG) in the First A empt CUET (UG) in the First Attempt

Excited about your UG but unsure if you will get admission to your preferred university? In a major announcement by the chairman of the University Grants Commission, the Naonal Tesng Agency will be conducng the Common Universies Entrance Test (CUET (UG) 2022) for undergraduate programs in Central Universies for the upcoming academic session. However, the UGC Chairperson also stated that CUET (UG) will not just be limited to admissions to Central Universies. Many prominent private universies have indicated that they would also like to adopt a common entrance exam for undergraduate admissions and take admissions on the basis of CUET (UG) scores. This makes CUET (UG) a very important examinaon in itself and hence it becomes mandatory to be aware of the ps & tricks that could help you ace the exam on the first a† empt.

The first step is to understand The pa† ern of the examinaon. CUET includes three secons, secon 1 includes queson based on languages, secon 2 includes 27 domain-based subjects and secon 3 includes General Test. The syllabus of the upcoming Common University Entrance Test, CUET 2022, will be completely based on the syllabus of class 12 th . No queson will be asked from class 11th syllabus.

While preparing for the exam, it is i m p o r t a n t t o i d e n f y t h e important topics and pracce important quesons from those t o p i c s . P r a c c e i m p o r t a n t q u e s o n s t h r o u g h O s w a a l Q u e so n B a n k a n d S a m p l e Q u e s o n P a p e r s , L i s n g topics also helps in idenfying the weak areas that need special effort and me. The aspirants can start preparing to focus on the areas that they consider to be tough, followed by the ones that are their strengths.

Make a habit of preparing notes f ro m t h e b e g i n n i n g o f t h e preparaon. It will not only help in making the study systemac but also make the revision of the syllabus easy even when you might have limited me to revise.

Collecng and preparing from the appropriate study material cannot be ignored as irrelevant. The books chosen by the aspirants to study from should be on the lines of the current syllabus and the ones that could help you with swi• revision before the examinaon.

Make sure to revise as much as possible. The revision will help the aspirants in keeping the concepts fresh in their minds unl the day of the final examinaons. They may refer to a few good pracce quesons and concise revision notes to achieve their desired results.

Devote a sufficient amount of me to all the secons of the examinaons. This requires a wellmade plan and an honest adherence to the said plan. Priorize the most important topics or the topics that the aspirants are not familiar with to be able to master them in me.

With this said, an important queson that is gaining ground amongst students who will be appearing for this exam is if they should take coaching to get themselves ready for the exams. The answer is a simple no, the exam will simply not require any coaching as it is completely based on the Class 12th syllabus which will be quite fresh in students' minds as they will be just out of school. All they need is a good revision and pracce of quesons from Oswaal Queson Bank and Sample Queson Papers for CUET (UG) preparaons.

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Latest Syllabus BUSINESS STUDIES - 305 Note: There will be one Question Paper which will have 50 questions out of which 40 questions need to be attempted. Principles and Functions of Management Unit I: Nature and Significance of Management • Management – concept, objectives, importance. • Nature of management; Management as Science, Art, Profession. • Levels of management – top, middle supervisory (First level). • Management functions – planning, organizing, staffing, directing, and controlling. • Coordination – nature, and importance. Unit II: Principles of Management • Principles of Management – meaning, nature and significance. • Fayol’s principles of management. • Taylor’s Scientific Management – Principles and Techniques. Unit III: Business Environment • Business Environment – meaning and importance. • Dimensions of Business Environment – Economic, Social, Technological, Political, and Legal. • Economic Environment in India; Impact of Government policy changes on business and industry, with special reference to the adoption of the policies of liberalization privatization, and globalization. Unit IV: Planning • Meaning, features, importance, limitations. • Planning process. • Types of Plans – Objectives, Strategy, Policy, Procedure, Method, Rule, Budget, Programme Unit V: Organising • Meaning and importance. • Steps in the process of organizing. • Structure of organization – functional, and divisional. • Formal and informal organization. • Delegation: meaning elements and importance. • Decentralization: meaning and importance. • Difference between delegation and decentralization. Unit VI: Staffing • Meaning, need, and importance of staffing. • Staffing as a part of Human Resources Management.

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Contd... • Steps in the staffing process. • Recruitment – meaning and sources. • Selection – meaning and process. • Training and Development – meaning, need, methods – on the job and off the job methods of training. Unit VII: Directing • Meaning, importance, and principles. • Elements of Direction:

– Supervision – meaning and importance



– Motivation – meaning and importance, Maslow’s hierarchy of needs; Financial and non-financial incentives.



– Leadership – meaning, importance; qualities of a good leader.

– Communication – meaning and importance, formal and informal communication; barriers to effective communication. Unit VIII: Controlling • Meaning and importance. • Relationship between planning and controlling. • Steps in the process of control. • Techniques of controlling. Business Finance and Marketing Unit IX: Business Finance • Business finance – meaning, role, objectives of financial management. • Financial planning – meaning and importance. • Capital Structure – meaning and factors. • Fixed and Working Capital – meaning and factors affecting their requirements. Unit X: Financial Markets • Concept of Financial Market: Money Market – nature instruments; • Capital market: nature and types – primary and secondary market. • The distinction between capital market and money market. • Stock Exchange – meaning, functions, NSEI, OCTEI, Trading Procedure. • Securities and Exchange Board of India (SEBI) – Objectives, Functions. Unit XI: Marketing • Marketing – meaning, functions, role. • The distinction between marketing and selling. • Marketing mix – concept and elements: – Product – nature, classification, branding, labeling, and packaging – Physical distribution: meaning, role; Channels of distribution, – meaning, types, factors, determining the choice of channels. – Promotion – meaning and role, promotion mix, Role of Advertising and personal selling; objections to Advertising.

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Contd... – Price: factors influencing pricing. Unit XII: Consumer Protection • Importance of consumer protection. • Consumer rights. • Consumer responsibilities. • Ways and means of consumer protection – Consumer awareness and legal redressal with special reference to the Consumer Protection Act. • Role of consumer organizations and NGOs. Unit XIII: Entrepreneurship Development • Concept, Functions, and Need. • Entrepreneurship Characteristics and Competencies. • Process of Entrepreneurship Development. • Entrepreneurial Values, Attitudes, and Motivation – Meaning and Concept. 

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NAGPUR

CUET (UG) Exam Paper 2023 National Testing Agency Held on 29th May 2023

BUSINESS STUDIES Solved

(This includes Questions pertaining to Domain Specific Subject only)

Max. Marks : 200

Time allowed : 45 Minutes

General Instructions:

(i) This paper consists of 50 MCQs, attempt any 40 out of 50 . (ii) Correct answer or the most appropriate answer: Five marks (+5) . (iii) Any incorrect option marked will be given minus one mark (– 1) . (iv) Unanswered/Marked for Review will be given no mark (0) . (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options . (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question . (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted . 1. Capital structure should emphasize on: (1) Increasing the turnover of firm (2) Increasing the assets and liabilities of firm (3) Increasing the shareholders wealth (4) Increasing voting right of shareholders Ans. Option (3) is correct. Explanation: Debt and equity combined forms the capital structure of any company. Optimally, the mix of both should focus on wealth maximization, which rises the company’s market value and also, focuses on minimising the cost borne to raise the capital. It works optimum when the Return on Investment (ROI) is more than Rate of Interest. 2. Identify the rights provided to consumers by the Consumer Protection Act 2019. A. Right to Safety B. Right to be Informed C. Right to choose D. Right to be heard E. Right to be assured Choose the correct answer from the options given below: (1) A, B, C and D only (2) A, B, C and E only (3) A, B, D and E only (4) A, B and C only Ans. Option (3) is correct. Explanation: Under the Consumer Protection Act, 1986, Right to choose has been defined as the consumers’ right to exercise freedom in choosing the product from the variety available at the competitive prices. However, under Consumer Protection Act, 2019, the right has been renamed as Right to be assured. Therefore, the correct answer includes A, B, D and E only.

3. Arrange the following functions of Management. A. Staffing B. Planning C. Organizing D. Controlling E. Directing Choose the correct answer from the options given below: (1) A → B → C → D → E (2) B → C → A → E → D (3) C → B → A → D → E (4) B → C → A → D → E Ans. Option (2) is correct. Explanation: Planning is the primary function of management, upon which organising helps to frame the organisational structure, leading to assigning jobs under staffing, further directing the employees and controlling function is performed to measure the achievement of organisational goals. 4. Planning is an intellectual process that requires logic rather than wishful thinking. Which feature of planning is highlighted by the statement? (1) Futuristic (2) Continuous (3) Mental exercise (4) Pervasive Ans. Option (3) is correct. Explanation: Planning is a mental exercise as it requires intellectual process so that logical plans and sound judgments could be made. 5. Identify the Non Financial Incentive that give more autonomy and powers to subordinates. (1) Employee participation (2) Employee empowerment (3) Organisational climate (4) Co-partnership Ans. Option (2) is correct.

8

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Explanation: It helps the employees of an organisation to develop the feeling of their jobs being considered important, by providing them more power and autonomy in working.

6. Which Marketing Management philosophy has main focus on existing product? (1) Selling concept (2) Production concept (3) Product concept (4) Marketing concept Ans. Option (1) is correct. Explanation: The main focus in production concept is on the quantity of product produced, in product concept, it is on the quality of the product, and marketing concept, it is on the needs and wants of the consumers. However, selling concept focuses on the existing product only and works by using aggressive selling and promoting techniques, in order to gain profits. 7. Identify the specific forces of business environment from following. A. Investors B. Customers C. Social D. Political E. Competitors Choose the correct answer from the options given below: (1) A, B, C and D only (2) A, B and E only (3) C and D only (4) C, D and E only Ans. Option (2) is correct. Explanation: The forces that have an immediate and direct effect on the affairs of business are termed as specific forces. From the given options, it can be ascertained that the investors, customers and competitors affect the business directly, rather than social or political factors which are more general in nature. 8. Arrange following elements of communication process in a sequence. A. Sender B. Receiver C. Message D. Media E. Feedback Choose the correct answer from the options given below: (1) A, C, B, E, D (2) C, A, B, D, E (3) A, C, D, B, E (4) A, C, B, D, E Ans. Option (3) is correct. Explanation: The sequence of elements is as follows: Sender – The one who wishes to convey his or her thoughts or opinions. Message – It consists of the intended ideas, suggestions, to be communicated. Media – The channel of communication, it can be written, verbal, internet, etc. Receiver – The one who gets the message from the sender. Feedback – It consists of the actions that convey the receiver’s understanding the intended message from the sender.

9. “Dependence on technological gadgets is comparatively higher in America than in India”. Which feature of business environment is highlighted by the statement? (1) Relativity (2) Uncertainity (3) Complexity (4) Dynamic Ans. Option (1) is correct. Explanation: The business environment differs from one place to another. Therefore, it is relative to the place. 10. Arrange the steps of Trading and Settlement procedure in Securities. A. Open a demat account B. Place an order with the broker C. Sign a broker-client agreement D. Broker match the share price available E. Broker issue a trade confirmation slip Choose the correct answer from the options given below: (1) A, B, C, D, E (2) E, D, C, B, A (3) C, A, B, D, E (4) C, A, D, B, E Ans. Option (3) is correct. Explanation: The steps in the process of trading and settlement procedure are as follows: Step 1 – Signing of a broker-client agreement Step 2 – Opening of Demat account Step 3 – Placing an order of shares with the broker Step 4 – Broker matching the share price available Step 5 – Broker issuing a trade confirmation slip 11. Identify the correct statements among the following: A. Salary is not a primary economic reward for an entrepreneur. B. A ‘never say die’ attitude of an entrepreneur is termed as self-confidence. C. Acting out of choice rather than compulsion is initiative. D. Entrepreneur’s concern for conservation of time and money is termed as ‘assertiveness’. E. Executive summary and operation strategies are included in Business Plan. Choose the correct answer from the option given below: (1) A, C, E only (2) A, B, E only (3) A, D, E only (4) A, B, C only Ans. Option (1) is correct. Explanation: For an entrepreneur, salary is not a primary economic reward A ‘never say die’ attitude of an entrepreneur is termed as persistence. Acting out of choice rather than compulsion, taking the lead rather than waiting for others to start is termed as initiative. Entrepreneur’s concern for conservation of time and money is termed as ‘efficiency orientation'. Executive summary and operation strategies are included in Business Plan.

CUET Board Paper 2023 12. A company has replaced their obsolete machinery with a Hi-Tech machine as it could not achieve its target in the previous month due to slow production process. Which step in the process of controlling is executed by the company? (1) Measurement of actual performance (2) Comparing actual performance with standards (3) Analysing deviations (4) Taking Corrective action Ans. Option (4) is correct. Explanation: During the process of controlling, if the deviations are noted upon comparing the actual performance with the planned performance, the corrective actions are taken and, in this case, replacement of obsolete machinery with Hi-tech machinery is a corrective action to meet the performance standards. 13. As per Consumer Protection Act, 2019, State Commission has a jurisdiction to entertain complaints where value of goods and services paid“ as consideration. (1) Does not exceed one crore but more than 20 lakh rupees (2) Exceeds one crore but does not exceed ten crore rupees (3) Exceeds five crore but does not exceed ten crore rupees (4) Exceeds four crore but does not exceed five crores rupees Ans. Option (2) is correct. Explanation: As per Consumers Protection 2019, the following is the jurisdiction: District Commission – Amount of goods services up to one crore. State Commission – Amount of goods services from one crore up to ten crores. National Commission – Amount of goods services exceeding ten crores.

Act, and and and

14. Staffing is the part of which functional area of Management ? (1) Marketing Management (2) Human Resource Management (3) Production Management (4) Financial Management Ans. Option (2) is correct. Explanation: Staffing is a distinct function of management, that deals with human resource specifically. Therefore, staffing is the part of human resource management as a functional area. 15. Match List I with List II: List -I (A) (B) (C) (D)

Regulatory Function of SEBI Development Function of SEBI Protective Function of SEBI Objective of SEBI

List - II (I) (II) (III) (IV)

Levying fee or other charges Training of intermediaries Controlling insider training Regulate stock exchanges

9

Choose the correct answer from the options given below: (1) (A)-(I), (B)-(II), (C)-(IV), (D)-(III) (2) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) (3) (A)-(III), (B)-(II), (C)-(IV), (D)-(I) (4) (A)-(III), (B)-(I), (C)-(II), (D)-(IV) Ans. Option (2) is correct. Explanation: (A) Regulatory Function of SEBI: This function involves SEBI's authority to impose fees and charges on market participants. (B) Development Function of SEBI: SEBI plays a crucial role in the development of the securities market by conducting training programs and initiatives for market intermediaries. (C) Protective Function of SEBI: This function revolves around SEBI's efforts to maintain market integrity by implementing regulations to control insider trading and other fraudulent practices. (D) Objective of SEBI: SEBI's primary objective is to regulate and oversee the functioning of stock exchanges. 16. “The principles of management are not rigid prescriptions, these can be modified by the manager when the situation so demands.” What nature of principles of management has been indicated in above statement? (1) General guidelines (2) Flexible (3) Contingent (4) Mainly behavioural Ans. Option (2) is correct. Explanation: The principles of management can be changed subject to the situation and circumstances, which do not have to be blindly followed. 17. Which technique of Scientific Management violates Fayol’s principle of Equity? (1) Standardization of work (2) Motion study (3) Differential piece wage system (4) Mental revolution Ans. Option (3) is correct. Explanation: Principle of Equity states that all the members of an organisation should be treated in a fair and just manner. For the same job done, they should be paid the same salary or wages. However, this principle is violated in ‘differential piece wage system’ technique of scientific management, wherein, the efficient and inefficient workers are paid differently. The efficient workers are paid more than the inefficient ones, leading inefficient workers to work with more motivation and enhance their productivity so that they can also be paid more, equal to efficient workers.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

18. Match List I with List II: List -I (A) (B)

(C) (D)

District Commission State Commission

National Commission Supreme Court

List - II (I) (II)

(III) (IV)

One crore to ten crore rupees Appeal against National Commission in matter of its original jurisdiction. Upto one crore rupees Exceeds ten crore rupees

Choose the correct answer from the options given below: (1) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) (2) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) (3) (A)-(III), (B)-(I), (C)-(IV), (D)-(II) (4) (A)-(III), (B)-(I), (C)-(II), (D)-(IV) Ans. Option (3) is correct. Explanation: As per Consumers Protection Act, 2019, the following is the jurisdiction: District commission – Amount of goods and services up to one crore. State commission – Amount of goods and services from one crore up to ten crores. National commission – Amount of goods and services exceeding ten crores. If the complainant is not satisfied with the decision of national commission, he/she may appeal against it, in the Supreme Court. 19. Social environment includes: (1) Consumption habits and life expectancies (2) Money supply in the economy (3) Rate of savings (4) New ways of producing goods Ans. Option (1) is correct. Explanation: Components and dimensions of business environment are as follows: Consumption habits and life expectancies – Social Money supply in the economy – Economic Rate of savings – Economic New ways of producing goods – Technological 20. Arrange the steps of controlling process in a logical sequence. A. Measurement of Actual performance B. Setting performance standards C. Taking Corrective action D. Comparison of actual performance with standards E. Analysing deviations Choose the correct answer from the options given below: (1) B, A, D, E, C (2) C, D, A, B, E (3) A, B, C, D, E (4) C, E, D, B, A Ans. Option (1) is correct.

Explanation: The management control process involves a sequence of steps to ensure that an organization's performance aligns with its goals. Firstly, performance standards are set to define expected levels of performance. Secondly, the actual performance is measured and compared to the established standards. Subsequently, any deviations or variances are analyzed to understand the underlying reasons. Afterward, corrective actions are taken to address the identified issues and bring the performance back on track. This systematic approach enables managers to monitor, evaluate, and continuously improve the organization's performance and ensure its success. 21. Which element of Marketing Mix refers to activities that make firm’s product available to the target customers? (1) Promotion (2) Place (3) Price (4) Product Ans. Option (2) is correct. Explanation: The "Place" element in the Marketing Mix, also known as distribution, deals with the strategies and activities involved in getting the product from the producer to the end consumer. It includes decisions related to selecting distribution channels, warehousing, inventory management, transportation, and retailing. 22. Which quality of a leader requires that he should understand people and maintain good human relations with them? (1) Initiative (2) Communication skills (3) Integrity (4) Social skills Ans. Option (4) is correct. Explanation: The social skills help the leaders understand and interact with humans thereby, maintaining good relations with them. 23. Which of the following are the features of leadership? A. It tries to bring change in the behaviour of a person. B. It is an internal feeling. C. It indicates interpersonal relationship between leaders and followers. D. It is a continuous process. Choose the correct answer from the options given below: (1) A, C and D only (2) A and C only (3) A, B and D only (4) C and D only Ans. Option (1) is correct. Explanation: Leadership is marked by several significant aspects. Firstly, it entails initiating changes in the behavior and actions of individuals or groups to accomplish shared objectives. Secondly, it reflects a robust interpersonal bond between leaders and followers, with leaders influencing, guiding, and motivating the team toward a collective vision. Lastly, leadership is an ongoing process that demands consistent efforts and effective communication to inspire and lead the team successfully.

CUET Board Paper 2023 24. The primary aim of financial management is: (1) Maximise profit of firm (2) Maximise sales of firm (3) Maximise shareholders’ wealth (4) Maximise number of customer of firm Ans. Option (3) is correct.

25. Identify the market that is known as stock exchange. (1) Secondary Market (2) Money Market (3) Capital Market (4) Primary Market Ans. Option (1) is correct. Explanation: Money market deals in shortterm instruments whereas capital market deals in both medium and long-term instruments. Primary market and secondary market are part of capital market. Primary market is also known as new issues market whereas, secondary market is also known as stock exchange. 26. External Sources of recruitment does not include: A. Casual callers B. Employment exchange C. Transfer D. Advertising E. Promotions Choose the correct answer from the options given below: (1) A and B only (2) B and C only (3) C and E only (4) D and E only Ans. Option (3) is correct. Explanation: Transfer and promotions is done for already existing employees of the organisation, therefore, they are internal sources of recruitment, held internally. 27. Match List I with List II: List -I

(B) (C) (D)

Job Enrichment

Organisational Climate Laissez -faire Grapevine

Choose the correct answer from the options given below: (1) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) (2) (A)-(III), (B)-(IV), (C)-(I), (D)-(II) (3) (A)-(IV), (B)-(II), (C)-(III), (D)-(I) (4) (A)-(IV), (B)-(I), (C)-(III), (D)-(II)

Explanation:  Financial management is concerned with making decisions that maximize the value of the firm and, in turn, the wealth of its shareholders. While profitability and sales are essential considerations, the ultimate goal is to increase the long-term value of the company and, consequently, enhance the shareholders' wealth. This is achieved through efficient allocation of resources, investment decisions, and financing choices that generate positive net present value (NPV) and maximize the market value of the firm's shares.

(A)

11

List - II (I)

(II) (III) (IV)

Indicates the characteristics which describe an organisation Informal Communication Leadership Style Concerned with designing jobs that include greater variety of work content

Ans. Option (4) is correct. Explanation: Job enrichment aims to increase employee motivation and satisfaction by designing jobs with more challenging and meaningful tasks. Organizational climate refers to the prevailing atmosphere and characteristics that define an organization's work environment. Laissez-faire is a leadership style where the leader allows employees considerable freedom in decision-making and minimal intervention. Grapevine represents informal communication within an organization, often involving rumors and gossip. 28. ........ refers to vertical shifting of employees in an organisation. (1) Promotion (2) Transfer (3) Interview (4) Placement Ans. Option (1) is correct. Explanation: Promotion is the vertical shifting of employees in the hierarchical order in an organisation. It can be a case of a subordinate being promoted to a superior level. 29. Process which provides for learning opportunities that helps employee growth is: (1) Education (2) Development (3) Training (4) Education and Training Ans. Option (2) is correct. Explanation: Employee development is a systematic and planned effort by organizations to enhance the knowledge, skills, and abilities of their employees. It aims to provide learning opportunities beyond their current job responsibilities, which can help employees prepare for future roles and responsibilities. 30. Identify for the following under whose overall administrative control, SEBI functions. (1) Ministry of Corporate Affairs, GOI (2) Ministry of Home Affairs. GOI (3) Ministry of Finance, GOI (4) Ministry of External Affairs, GOI Ans. Option (3) is correct. Explanation: The Securities and Exchange Board of India (SEBI) functions under the overall administrative control of the Ministry of Finance, Government of India. SEBI is the regulatory authority for the securities market in India and is responsible for regulating and overseeing various entities and activities in the capital market to protect investors and promote the development of the market.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

31. Match List I with List II: (A) (B) (C) (D)

List -I Convenience products Shopping products Speciality products Non durable products

(I) (II) (III) (IV)

List - II Consumed in one or few uses Brand loyality of the highest order Purchased frequently Buyer devote considerable time

Choose the correct answer from the options given below: (1) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) (2) (A)-(III), (B)-(II), (C)-(IV), (D)-(I) (3) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) (4) (A)-(I), (B)-(II), (C)-(III), (D)-(IV) Ans. Option (1) is correct. Explanation: Convenience products are items that are purchased frequently and with ease, as they are essential and low-cost. Shopping products require considerable time and effort in the decision-making process, as consumers compare and select from various options. Speciality products enjoy a high level of brand loyalty, with consumers seeking out specific brands due to unique features or high-end attributes. Non-durable products have a short lifespan and are consumed in one or a few uses. 32. Planning is pervasive because: (1) It is required in setting special goals. (2) It is required at all levels of management. (3) It is forward looking and backward looking. (4) It lays down the base for other functions of management. Ans. Option (2) is correct. Explanation: Planning is pervasive in nature as it is required in all organisations, in all departments and at all levels of management. 33. Identify the trend in stock market when equity shares are more easily sold even at higher price. (1) Bearish (2) Bullish (3) Horse trading (4) Badla Ans. Option (2) is correct. Explanation: Share market is said to be in bullish phase when the prices of stocks are rising. In bullish phase, the shares are sold easily even at these high prices. 34. Match List I with List II: (A) (B) (C) (D)

List -I Advertising Expenditure Quality Labour Turnover Liquidity

(III)

List - II Human Resource Management Finance and Accounting Marketing

(IV)

Production

(I) (II)

Choose the correct answer from the options given below: (1) (A)-(III), (B)-(IV), (C)-(II), (D)-(I) (2) (A)-(III), (B)-(IV), (C)-(I), (D)-(II) (3) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) (4) (A)-(IV), (B)-(III), (C)-(I), (D)-(II) Ans. Option (2) is correct. Explanation: Advertising is one of the components of ‘Promotion’ element of marketing, therefore, its expenditure would be part of marketing. Quality is maintained during the production of the goods; therefore, it would come under the category of production. Labour turnover also referred as employee turnover, it is part of the staffing function which is in turn part of human resource, therefore, human resource management. Liquidity means the securities easily convertible into cash, hence, part of finance and accounting. 35. Which technique of Scientific Management violates Unity of Command? (1) Time study (2) Standardisation of work (3) Functional foremenship (4) Simplification of work Ans. Option (3) is correct. Explanation: Functional Foremanship is a concept in Scientific Management where workers receive instructions from multiple specialized foremen, each responsible for specific aspects of their work. This violates the Unity of Command principle, which advocates that employees should have only one direct supervisor to avoid conflicting instructions and confusion. Having multiple foremen can lead to inefficiencies and difficulties in coordination, undermining the clarity and effectiveness of the chain of command within an organization. 36. Identify the correct sequence of first five steps of staffing process. A. Estimating the manpower requirement B. Recruitment C. Training and development D. Placement and orientation E. Selection Choose the correct answer from the options given below: (1) A, B, D, E, C (2) A, B, C, D, E (3) A, B, E, D, C (4) A, C, B, D, E Ans. Option (3) is correct. Explanation: The staffing process begins with estimating the organization's manpower requirement, followed by recruitment to attract potential candidates. Next, the selection process takes place, where the most suitable candidates are chosen for the vacant positions. After selection, the candidates are placed in their designated roles, and orientation is conducted to familiarize them with the company's policies and work environment. Finally, training and development programs are provided to equip the new employees with the necessary skills and knowledge for their roles.

CUET Board Paper 2023 37. Select from following who is considered risk taker? (1) Manager (2) Customer (3) Entrepreneur (4) Government Ans. Option (3) is correct. Explanation: Entrepreneur is considered to be a risk taker, as by considering to set a business from the scratch, an entrepreneur bears the risk in the hopes of making profits and expanding the business in long run. 38. According to which principle of management, “Organisation should have a chain of authority and communication that runs from top to bottom and should be followed by managers and the subordinates.” (1) Centralisation and Decentralisation (2) Subordination of individual interest to general interest (3) Scalar chain (4) Espirit De Corps Ans. Option (3) is correct. Explanation: The Scalar Chain principle emphasizes the need for a clear and formal chain of command in an organization. It implies that each subordinate should have a direct line of communication and authority with their immediate superior and so on up the hierarchy to the top management. This chain ensures a smooth flow of information, decision-making, and coordination, promoting efficiency and reducing conflicts within the organization. 39. Arrange the Channels of Distribution in order for a consumer product. A. Consumer B. Retailer C. Wholesaler D. Producer Choose the correct answer from the option given below: (1) A, B, C, D (2) D, C, B, A (3) C, A, B, D (4) A, D, C, B Ans. Option (2) is correct. Explanation: Channel of distribution often followed for consumer goods is two-level channel. The producer creates the product, and it is then sold in large quantities to wholesalers. Wholesalers, in turn, distribute the product to retailers who sell it to the end consumers. The end consumers are the final destination of the distribution channel, where the product is purchased and used. 40. Match List I with List II: List -I

List - II

(A)

Treasury Bill

(I)

(B)

Commercial paper

(II)

Mobilise large amount of money Maturity period of one day to fifteen days

(C)

Call money

(III)

(D)

Certificate of Deposit

(IV)

13

Maturity period of 15 days to one year Issued by RBI

Choose the correct answer from the options given below: (1) (A)-(III), (B)-(I), (C)-(II), (D)-(IV) (2) (A)-(II), (B)-(III), (C)-(IV), (D)-(I) (3) (A)-(IV), (B)-(III), (C)-(II), (D)-(I) (4) (A)-(IV), (B)-(III), (C)-(I), (D)-(II) Ans. Option (3) is correct. Explanation: Treasury Bills are issued by the RBI to raise short-term funds for the government. Commercial Paper is an unsecured debt instrument with a maturity period of 15 days to one year issued by corporations to meet their short-term funding needs. Call Money represents short-term funds borrowed or lent in the money market for a period of one day to fifteen days. Certificate of Deposit is a money market instrument issued by banks to mobilize large amounts of money for a specific period, usually ranging from a few months to a year. 41. Rohan is the Head Boy of Ethos Public School school. The School is going to hold a covid vaccination camp for students of age group 12-14 yrs in the month of May. The entire Prefectorial Board is given the duties for the event under the leadership of Rohan. Rohan has shorlisted following activities: (1) Identification of students eligible for vaccination under 12-14 yrs. (2) Obtaining Aadhar card for registration of these students on the covid vaccination App (3) Consent letters of parents He further divided the execution part activities. Later he grouped the similar natured activities into different units. Then he allocated these to different prefects under his preceptorial board. Thereafter he devised a computer software where each prefect was supposed to enter his data of vaccination for further submission to school headmistress. ............ is the function of management discussed in the above passage. (1) Planning (2) Directing (3) Organising (4) Staffing Ans. Option (3) is correct. Explanation: In the given scenario, Rohan, as the Head Boy, is organizing the Covid vaccination camp for students aged 12-14 years. He is dividing the execution part activities, grouping similar activities into different units, and then allocating them to different prefects under his leadership. Additionally, he devised a computer software for data entry and further submission. All these actions of Rohan fall under the organizing function of management, where he is structuring and arranging resources and tasks to achieve the goal of conducting the vaccination camp efficiently.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

42. Rohan is the Head Boy of Ethos Public School school. The School is going to hold a covid vaccination camp for students of age group 12-14 yrs in the month of May. The entire Prefectorial Board is given the duties for the event under the leadership of Rohan. Rohan has shorlisted following activities: (1) Identification of students eligible for vaccination under 12-14 yrs. (2) Obtaining Aadhar card for registration of these students on the covid vaccination App (3) Consent letters of parents He further divided the execution part activities. Later he grouped the similar natured activities into different units. Then he allocated these to different prefects under his preceptorial board. Thereafter he devised a computer software where each prefect was supposed to enter his data of vaccination for further submission to school headmistress. Rohan has shortlisted following activities” Identify the step highlighted in the above line in the process of organisation. (1) Setting objectives (2) Assignment of duties (3) Identifying the alternative courses of action (4) Identification and division of work Ans. Option (4) is correct. Explanation: Identification and division of work helps to identify the activities to be performed to accomplish the goals. 43. Rohan is the Head Boy of Ethos Public School school. The School is going to hold a covid vaccination camp for students of age group 12-14 yrs in the month of May. The entire Prefectorial Board is given the duties for the event under the leadership of Rohan. Rohan has shorlisted following activities: (1) Identification of students eligible for vaccination under 12-14 yrs. (2) Obtaining Aadhar card for registration of these students on the covid vaccination App (3) Consent letters of parents He further divided the execution part activities. Later he grouped the similar natured activities into different units. Then he allocated these to different prefects under his preceptorial board. Thereafter he devised a computer software where each prefect was supposed to enter his data of vaccination for further submission to school headmistress. “Later he grouped the similar natured activities into different units” Identify the step highlighted in the above line in the organisation process. (1) Implementing the plan (2) Measurement of actual performance (3) Departmentalisation (4) Selecting an alternative Ans. Option (3) is correct. Explanation: Grouping of activities that are similar in nature is the second step in the process of organising, and is termed as departmentalisation.

44. Rohan is the Head Boy of Ethos Public School school. The School is going to hold a covid vaccination camp for students of age group 12-14 yrs in the month of May. The entire Prefectorial Board is given the duties for the event under the leadership of Rohan. Rohan has shorlisted following activities: (1) Identification of students eligible for vaccination under 12-14 yrs. (2) Obtaining Aadhar card for registration of these students on the covid vaccination App (3) Consent letters of parents He further divided the execution part activities. Later he grouped the similar natured activities into different units. Then he allocated these to different prefects under his preceptorial board. Thereafter he devised a computer software where each prefect was supposed to enter his data of vaccination for further submission to school headmistress. “Then he allocated these to different prefects under his prefectorial board” Which step of organisation process is discussed in these lines? (1) Assignment of duties (2) Implementing the plan (3) Division of activities (4) Follow up action Ans. Option (1) is correct. Explanation: Assignment of duties is the third step in the process of organising. Under this step, duties are allocated to the employees (in this case, to the prefects), based on their competencies and skills. 45. Rohan is the Head Boy of Ethos Public School school. The School is going to hold a covid vaccination camp for students of age group 12-14 yrs in the month of May. The entire Prefectorial Board is given the duties for the event under the leadership of Rohan. Rohan has shorlisted following activities: (1) Identification of students eligible for vaccination under 12-14 yrs. (2) Obtaining Aadhar card for registration of these students on the covid vaccination App (3) Consent letters of parents He further divided the execution part activities. Later he grouped the similar natured activities into different units. Then he allocated these to different prefects under his preceptorial board. Thereafter he devised a computer software where each prefect was supposed to enter his data of vaccination for further submission to school headmistress. “Thereafter he devised a computer software where each perfect was supposed to enter his data of vaccination for further submission to school headmistress.” Identify the step of organisation process discussed in above statement. (1) Follow up action (2) Establishing reporting relationship (3) Corrective action (4) Assignment of duties

CUET Board Paper 2023 Ans. Option (2) is correct. Explanation: Establishing reporting relationship defines who is going to report to whom for the organising function. 46. Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly with minimum cost. Answer the following questions on the basis of above case. Company’s target production is 10,000 units in a year. To achieve this target the manager has to operate on double shifts due to power failure most of the time. In the above case manager was: (1) Effective and efficient both (2) Only efficient (3) Efficient but not effective (4) Effective but not so efficient Ans. Option (4) is correct. Explanation: Effectiveness is concerned with minimum time whereas, efficiency is concerned with minimum cost incurred. Here, the manager is effective as he is willing to get the work done in time, however, achieving this at huge cost considering running the factory double shifts due to power failure. 47. Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly with minimum cost. Answer the following questions on the basis of above case. Cutting down the cost but not achieving the target production is an example of: (1) Effective but not efficient (2) Effective and efficient both (3) Efficient but not effective (4) Neither efficient nor effective Ans. Option (3) is correct. Explanation: Cutting down the cost but not achieving the target production indicates that the task is being performed correctly (efficiently) with minimum cost, but it is not leading to the desired outcome (effectiveness) of achieving the target production. In this case, the process may be efficient in terms of minimizing costs, but it is not effective in accomplishing the primary goal of meeting the target production level. 48. Management is the process of planning, organising, staffing. directing and controlling the enterprise resources efficiently and effectively for achieving

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the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly with minimum cost. Answer the following questions on the basis of above case. ............ implies setting goals in advance and developing a way of achieving them efficiently and effectively (1) Organising (2) Controlling (3) Planning (4) Coordination Ans. Option (3) is correct. Explanation: Planning is bridging the gap between where we are and where we want to reach. It is setting goals in advance and developing the ways to achieve the same, effectively and efficiently. 49. Management is the process of planning, organising, staffing, directing and controlling the enterprise resources efficiently and effectively for achieving the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly with minimum cost. Answer the following questions on the basis of above case. .......... is the management function of monitoring organisational performance towards the attainment of organisational goals. (1) Planning (2) Organising (3) Directing (4) Controlling Ans. Option (4) is correct. Explanation: Controlling is measurement of actual performance and comparison of the same against the set standards, checking deviations, if any and taking corrective measures; in order to attaint the organisational goals. 50. Management is the process of planning, organising, staffing. directing and controlling the enterprise resources efficiently and effectively “ for achieving the goals of the organisation. Effectiveness in Management is concerned with doing the right task, completing activities and achieving goals. Efficiency means doing the task correctly with minimum cost. Answer the following questions on the basis of above case. ........... determines what activities and resources are required. (1) Planning (2) Organising (3) Controlling (4) Directing Ans. Option (2) is correct. Explanation: Organising involves arranging and structuring resources (both human and nonhuman) to achieve the goals of the organization. It includes determining the tasks that need to be done, grouping them into logical units, defining the relationships between individuals and departments, and allocating resources to different activities. 

CUET Question Paper 2022 NATIONAL TESTING AGENCY 18th August 2022—Slot-1

BUSINESS STUDIES [This includes Questions pertaining to Domain Specific Subject only]

SOLVED . Time Allowed: 45 Mins.

Maximum Marks: 200

General Instructions : (i) This paper consists of 50 MCQs, attempt any 40 out of 50 (ii) Correct answer or the most appropriate answer: Five marks (+5) (iii) Any incorrect option marked will be given minus one mark (– 1) (iv) Unanswered/Marked for Review will be given no mark (0) (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Arrange the following needs in sequence o priority as Maslow's Need Hierarchy Theory: A.

Physiological needs

B.

Self actualisation needs

C.

Safety needs

D. Belongingness needs Choose the correct answer from the options given below: (A) D, B, C, A

(B) A, C, D, B

(C) B, C, D, A

(D) A, D, B, C

Explanation: The hierarchy of needs as given by Maslow is: Basic physiological needs, safety needs, belongingness needs, esteem needs and self actualisation needs.

2. "This organisatinal structure has the disadvantage of increases in costs due to duplication of activities." structure

handle the issue, a meeting of Board of Directors of the company was called on urgent basis. The meeting continued for seven long hours. As a result, strike continued and productivity was zero. Which limitation of planning is referred to in the above example/case? (A) Planning may environment

not

work

in

dynamic

(B) Planning involves huge costs

Sol. Option (B) is correct

Identify the organisational referred to here.

3. The workers of a factory went on strike. To

being

(A) Formal Organisation (B) Informal Organisation (C) Functional Structure (D) Divisional Structure Sol. Option (D) is correct Explanation: Divisional Structure has various divisions made under one single organization. This increases the cost due to duplication of work.

(C) Planning does not guarantee success (D) Planning is a time-consuming process Sol. Option (D) is correct Explanation: Planning is a very lengthy process as it consumes a lot of time for collection, analysis, and interpretation of data. Due to such a lengthy process, sometimes decisions get delayed, opportunities are lost.

4. Rohan is running a small business of producing homemade craft items. He believes that since the business is small, he does not require 'management'. Which feature of management has been neglected? (A) Management is all pervasive (B) Management is goal oriented (C) Management is a continuous process (D) Management is a dynamic function Sol. Option (A) is correct

CUET Solved Paper, 2022 Explanation: Management is required in all types of organizations whether it is political, social, cultural or business because it helps and directs various efforts towards a definite purpose.

5. "The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied, and there is orderliness instead of chaos." Which characteristic of management is highlighted here?

Sol. Option (C) is correct Explanation: Solution not given

8. Match List-I with List-II A. B.

List-I (Part-A) Employment Interview Employment Exchange

(A) Management is all pervasive (B) Management is multi-dimensional

C.

Internship Training

D.

Vestibule Training

(C) Management is group activity (D) Management is an intangible force Sol. Option (D) is correct Explanation: Management is an intangible force, as it does not have any physical appearance. It can be felt, by the way an organisation functions.

6. Identify the statement which is not the meaning of 'planning function' of management?

List-II (Part-B) Source of recruitment II. Collaboration of business firm and educational institutions III. Formal, indepth conversation IV. Related to handling sophisticated machinery and equipment I.

Choose the correct answer from the options given below:

(A) Deciding in advance what to do, how to do and when to do.

(A) A - I, B - II, C - IV, D - III

(B) It involves setting objectives.

(C) A - II, B - III, C - I, D - IV

(C) It seeks to bridge the gap between where we are and where we want to go.

(D) A - IV, B - I, C - III, D - II

(D) It gives shape to the organisational structure Sol. Option (D) is correct Explanation: Span of management gives shape to the organisational structure. Span of management refers to the number of subordinates that can be effectively managed by the superiors.

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(B) A - III, B - I, C - II, D - IV

Sol. Option (B) is correct Explanation: Solution not given

9. It refers to the learning opportunities designed to help employees grow: (A) Training

(B) Development

(C) Selection

(D) Career Planning

Sol. Option (B) is correct Explanation: Development refers to the learning opportunities designed to help employees grow. It is a career-oriented process.

7. Match List-I with List-II A.

List-I (Part-A) Apprenticeship

I.

B.

Casual Caller

II.

C. D.

Promotion Selection

III. IV.

List-II (Part-B) Internal source of recruitment Negative Process Training External Sources

Choose the correct answer from the options given below: (A) A - I, B - II, C - III, D - IV (B) A - II, B - IV, C - III, D - I (C) A - III, B - IV, C -II, D - II (D) A - III, B - I, C - II, D - IV

10. When Lenovo India decided to strengthen its diversity numbers, it decided to tap into its referral system. The company asked its workers to refer candidates and decided to reward those who become successful in this task. Identify the source of requirement referred to here: (A) Casual Callers (B) Labour Contractor (C) Recommendation of Employees (D) Direct Recruitment Sol. Option (C) is correct Explanation: Employee referrals are an excellent means of locating potential candidates for first hand to fill vacant positions.

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

18

11. Identify the process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. (A) Development

(B) Training

(C) Education

(D) Selection

15. Mr. Vivek opened the Geyser box and found a

Sol. Option (B) is correct Explanation: Training is a process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased

12. Which of the following are advantages of branding to a marketer? A.

Enables making product differentiation

B.

Helps in protecting the product

C.

Helps in advertising programmes

and

displaying

D. To charge different price for its products different from the charged by its competitors E.

Help in product identification

Choose the correct answer from the options given below: (A) A and D only

(B) A and B only

(C) B and E only

(D) A and C only

Sol. Option (B) is correct Explanation: Branding enables a marketer making product differentiation and helps in protecting the product.

13. Which of the following is not an element of delegation?. (A) Authority (B) Departmentalisation (C) Responsibility (D) Accountability Sol. Option (B) is correct Explanation: There are three elements of Delegation: Assignment of Responsibility, Grant of Authority, and Creation of Accountability.

14. Identify the correct functions of entrepreneur in relation to economic development. A.

Capital Formation

B.

Improvement in Economic Efficiency

C.

Identification of specific product offering

D. Opportunity Scouting E.

are:- 1. Capital Formation 2. Improvement in Per Capita Income 3. Generation of Employment 4. Balanced Regional Development 5. Improvement in Living Standards 6. Economic Independence

Generation of Employment

Choose the correct answer from the options given below: (A) B, C and E only

(B) A, B and E only

(C) C, D and E only

(D) A, B and D only

Sol. Option (B) is correct Explanation: Some of the roles of entrepreneurs

booklet containing information about the geyser. Identify the consumer right highlighted in the above statement. (A) Right to consumer education (B) Right to safety (C) Right to be informed (D) Right to be heard Sol. Option (C) is correct Explanation: The right to information is defined as 'the right to be informed about the quality, quantity, potency, purity, standard and price of goods or services

16. Under which consumer right does a business firm set up consumer grievance cell? (A) Right to safety (B) Right to be informed (C) Right to be heard (D) Right to consumer education Sol. Option (C) is correct Explanation: Under the right to be heard business firm set up consumer grievance

17. Fill in the blank: The earlier approach of caveat emptor, which means "Let the buyer beware", has now been changed to ________, which means, "Let the seller beware". (A) Caveat venditor

(B) Caveat viewer

(C) Caveat vendor

(D) Caveat retailer

Sol. Option (A) is correct Explanation: Caveat venditor means let the seller beware

18. Which of the following cannot file a complaint under Consumer Protection Act? (A) Legal representative of deceased consumer (B) Registered consumer association (C) Registered Traders' Association (D) Central or State Government Sol. Option (C) is correct Explanation: Registered traders association cannot file complaint under consumer protection act

CUET Solved Paper, 2022

19. Under which consumer right a consumer can get relief in case the product or service falls short of his expectations? (A) Right to Seek Redressal

19

compensation

23. "Swara felt demoralised and her performance started declining."

(B) Right to be Informed

Which of the following elements can help Swara to be more confident?

(C) Right to Safety

A.

Planning

B.

(D) Right to be Heard

C.

Delegation

D. Leadership

Sol. Option (A) is correct Explanation: Under right to seek redressal consumer can get relief in case the product or service falls short of his expectations.

20. Offering products at special prices to clear off the excess inventory is an example of ________ type of Sales Promotion Activities? (A) Unable Benefit

(B) Discount

(C) Rebate

(D) Refund

Sol. Option (B) is correct Explanation: Offering products at special prices to clear off the excess inventory is an example of the discount type of sales promotion

21. Sunita is going to start a venture for which she has to follow process of planning. Identify the correct sequence of planning process. A.

Implement the Plan

B.

Select an alternative

C.

Follow-up action

Choose the correct answer from the options given below: (A) A and B only

(B) B and D only

(C) B and C only

(D) C and D only

Sol. Option (C) is correct Explanation: Motivation and delegation will help Swara to be more confident

24. Identify the concept of marketing which pays attention to the social, ethical and ecological aspects of marketing along with customer satisfaction. (A) Production Concept (B) Product Concept (C) Marketing Concept (D) Societal Concept Sol. Option (D) is correct Explanation: Societal concept pays attention to social, ethical, and ecological aspects of marketing along with customer satisfaction

D. Evaluate alternative courses E.

Motivation

Identify alternative course of action.

Choose the correct answer from the options given below: (A) E, D, B, A, C

(B) A, B, C, D, E

(C) D, E, B, A, C

(D) E, D, C, A, B

Sol. Option (A) is correct Explanation: Solutions not given.

Further, ‘Cent-‘means ‘hundred’.

25. Match List-I with List-II A.

List-I (Part-A) Commercial Paper

B.

Treasury Bill

C.

Call Rate

D.

Commercial Bill

22. Mr. Abhishek, the H.R. Manager has to take necessary step in connection with placement and orientation. Identify their right sequence. A.

Compensation

B.

Training and development

C.

Promotion and career planning

D. Performance Appraisal Choose the correct answer from the options given below:

List-II (Part-B) Also known as a Zero Coupon Bonds II. Also termed as Bill of Exchange III. Also called Bridge Finance IV. Changes every day or every hour I.

Choose the correct answer from the options given below: (A) A - III, B - I, C - IV, D - II

(A) A, B, C, D

(B) B, D, C, A

(B) A - III, B - II, C - IV, D - I

(C) D, C, A, B

(D) C, A, B, D

(C) A - II, B - III, C - IV, D - I

Sol. Option (B) is correct Explanation: Mr. Abhishek need to do training and development, performance appraisal, promotion and career planning and

(D) A - I, B - III, C - II, D - IV Sol. Option (A) is correct Explanation: Solution not given.

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

20

26. In which market the prices of securities are determined by demand and supply for the securities? (A) Primary Market

(B) Secondary Market

(C) Commodity Market (D) Operation Market Sol. Option (B) is correct

Choose the correct answer from the options given below: (A) A - II, B - III, C - IV, D - I (B) A - II, B - I, C - III, D - IV (C) A - I, B - II, C - III, D - IV (D) A - II, B - III, C - I, D - IV

Explanation: In the secondary market prices of securities are determined by demand and supply

27. One of the important functions of Stock Exchange is that the membership of a Stock Exchange is well regulated and its dealings are well informed according to the existing legal framework. Which function of Stock Exchange is being discussed here? (A) Pricing of securities

Sol. Option (A) is correct Explanation: Solutions not given.

30. Identify the depository setup by the National Stock Exchange in Collaboration with IDBI and UTI. Diligent (A) National Securities Department Limited (B) Central Depository Services Limited (C) National Securities Depositories Limited

(B) Safety of transactions

(D) Central Department Services Limited

(C) Spreading of equity cult

Sol. Option (C) is correct

(D) Contributes to economic growth Sol. Option (B) is correct Explanation: Safety of transactions is one of the important functions of the stock exchange that is why the membership of stock exchanges is well regulated.

28. In which year the National Stock Exchange of India was incorporated?

Explanation: NSE joined hands with the IDBI and the UTI to promote dematerialisation of securities. Together they set up National Securities Depository Limited

31. Identify from the following which is NOT an important aspect of controlling function? (A) It improves employee motivation (B) It helps in judging accuracy of standards

(A) 1995

(B) 1994

(C) It restricts coordination in actions

(C) 1992

(D) 1997

(D) It ensures order and discipline

Sol. Option (C) is correct

Sol. Option (C) is correct

Explanation: NSE was incorporated in year 1992. The National Stock Exchange of India Limited (NSE) is the largest financial exchange in the Indian market. It was established on the recommendation of the High-Powered Study Group, which was founded by the Indian government to provide solutions to simplify participation in the stock market and make it more accessible to all interested parties.

29. Match List-I with List-II A.

B.

List-I (Part-A) Interest Coverage Ratio

Explanation: Controlling means guaranteeing that activities in an organisation are proceeding according to the plans. Coordination of action is not a controlling function in the organisation.

32. Use of personal observation, sample checking etc. relates to which step of controlling process? (A) Setting performance standards (B) Measurement of actual performance (C) Analysing deviation

I.

Return on Investment

II.

C.

Capital Structure

III.

D.

Earning Per Share

IV.

List-II (Part-B) Eat + Number of shares EBIT + Interest EBIT + Total Investment × 100 Deb + Equity

(D) Taking corrective action Sol. Option (B) is correct Explanation: Measurement of actual performance relates to use of personal observation , sample checking etc.

33. Identify the incentive which indicates the characteristics of an organisation and distinguishes one organisation from the other? (A) Status (B) Organisational climate (C) Job security (D) Employee participation

CUET Solved Paper, 2022 Sol. Option (B) is correct

21

deficient services, unfair trade practices etc.

Explanation: Organisational climate is the incentive which indicates the characteristics of the organisation distinguishes one organisation from other

34. "It is a process to oversee what is being done by subordinates and giving instructions to ensure optimum utilisation of resources and achievement of work targets." Identify the element of directing discussed in the statement. (A) Supervisor

(B) Motivation

(C) Leadership

(D) Communication

Sol. Option (A) is correct Explanation: Supervision is a process to oversee what is being done by the subordinates and giving instructions.

35. From the following, identify the statement which highlights the importance of motivation. (A) Motivation influences the internal feeling of people (B) Motivation helps in building up success (C) Motivation helps in improving the level of performance of employees (D) Motivation helps in providing on the job training Sol. Option (C) is correct Explanation: Motivation helps in improving the level of performance of employees

36. The group members work on their own tasks resolving issues themselves. The manager is there only to support them and supply them the required information to complete the task assigned. Their particular style of leadership is known as(A) Autocratic

(B) Participative

(C) Free-rein

(D) Authoritative

Sol. Option (C) is correct Explanation: Free rein is a style of leadership where group members do their own task the manager is there just to support them.

37. Which Act provides safeguards to consumers against defective goods, deficient services, unfair trade practices and other forms of their exploitations. (A) Right to Information Act (B) Consumer Protection Act (C) Essential Commodities Act (D) Consumer Prevention Act Sol. Option (B) is correct Explanation: Consumer protection act provides safeguards to consumer against defective goods,

38. Match List-I with List-II List-I (Part-A) Interest rates, inflation B. Customs and Traditions C. Advancement in medical field D. General stability and peace

List-II (Part-B) Technological Environment II. Economic Environment III. Social Environment IV. Political Environment

A.

I.

Choose the correct answer from the options given below: (A) A - I, B - II, C - III, D - IV (B) A - I, B - III, C - II, D - IV (C) A - II, B - III, C - II, D - IV (D) A - II, B - III, C - IV, D - I Sol. Option (C) is correct Explanation: Solution not given.

39. Arrange the right sequence of steps involved in the process of controlling: A.

Measurement of Actual Performance

B.

Setting performance standard

C.

Comparing standard

actual

performance

with

D. Taking corrective action Choose the correct answer from the options given below: (A) B – A – C – D - E

(B) A – C – B – E - D

(C) B – A – D – C - E

(D) B – A – C – E - D

Sol. Option (C) is correct Explanation: Setting performance standards, measurement of actual performance, comparing actual performance with standard, analysis deviation, taking corrective action,

40. "Planning function precedes the other functions of Management." The characteristic of planning mentioned here is: (A) Planning is goal oriented (B) Planning is a continuous function (C) Planning is Management

the

primary

function

of

(D) Planning is pervasive Sol. Option (C) is correct Explanation: Planning is often called the primary management function because it establishes the basis for all the other functions.

Passage:

Answer the question on the basis of the given case study:

22

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Raj completed his MBA from a reputed college of management. After completing his degree, he joined his father's business of manufacturing chips. The business was doing fairly well but Raj wanted to be a market leader in this segment. His decision was based on logic, facts and were free from bias and prejudice. For this, he implemented a lot of changes in the organisation. He recruited a large number of employees on the basis of their qualification and paid them adequately. He created a spirit of team work amongst the workers and appreciated the suggestions given by the employee. He made sure that the employees get sufficient breaks during the office hours so that they regain energy and work efficiently. During working hours of the employees he monitored the movements of the workers to eliminate the unnecessary movement in order to achieve goals.

41. "His decision was based on logic, facts and were from bias and prejudice." Which importance of Principle of Management is discussed in the above lines? (A) Optimum utilisation of effective administration

resources

and

A.

Principle of Discipline

B.

Principle of Equality

C.

Principle of Initiative

D. Principle of Espirit De corps E.

Principle of Stability of Personal

Choose the correct answer from the options given below: (A) D and E only

(B) C and D only

(C) D only

(D) C and E only

Sol. Option (B) is correct Explanation: Raj supported the feeling of job security and team work among the employers as Henry Fayol described in esprit de corps and stability of personnel

44. "He made sure that the employees get sufficient breaks during the office hours so that they can regain energy and work efficiency". Identify the technique of scientific management mentioned in the above lines? (B) Time Study

(C) Scientific decisions changing

workers and appreciated the suggestions given by the employees".

(A) Method Study

(B) Useful insight into reality (D) Meeting requirements

43. "He created a spirit of team work amongst the

environment

Sol. Option (C) is correct Explanation: Scientific decision-making involves the use of: Data mining and big data to source relevant data to inform decisions. Raj made his decisions based on logics data and fact.

42. "He recruited a large number of employees on the

(C) Fatigue Study (D) Different Piece wage system Sol. Option (C) is correct Explanation: In management, fatigue study refers to the long working hours with sufficient breaks which results in stress, which is also known as fatigue.)

45. Identify the techniques of scientific management

basis of their qualification and paid them adequately." Which principle is followed by Raj in the above lines?

which aims at eliminating movements while working? (A) Motion Study

(B) Method Study

(A) Principle of Equity

(C) Time Study

(D) Fatigue Study

(B) Principle of Remuneration of Employees (C) Principle of discipline (D) Principle of Stability of Personnel Sol. Option (B) is correct Explanation: The remuneration system must be such which provides for the adequate remuneration to the employees, motivates the employee to perform better, and may ensure safety & security, raise standard of living of the employees. Raj motivated the employees to perform better by recruiting and compensating fairly.

unnecessary

Sol. Option (A) is correct Explanation: Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions, etc., which are undertaken while doing a typical job. Unnecessary movements are sought to be eliminated so that it takes less time to complete the job efficiently.

Passage:

A company 'M' Ltd. is manufacturing mobile phones both for domestic market as well as for export. It had enjoyed a substantial share and also had a loyal customer following. Company has decided to start a new plant in Gujarat because of increasing demand. To start a new

CUET Solved Paper, 2022 plant, company required additional funds of ` 200 crores.

(A) Financial Management

For making a sound capital structure, Management of M Ltd. scheduled a meeting and called the Finance Manager to make a blue print for arranging the sources of funds either debt or equity.

(C) Financial Planning

Company also required funds to upgrade the technology of existing plant. Finance manager of M Ltd suggested that they can make its capital structure sound by a judicious ix of debt and equity. Answer the following question on the basis of the information given above.

46. "M Ltd. is manufacturing (industry) producing mobile phones." Which factor of fixed capital requirement is highlighted in the above Statement? (A) Nature of business (B) Growth Prospects (C) Scale of Operation (D) Small Scale of Operation Sol. Option (A) is correct Explanation: Need of fixed capital depends upon the nature of business. In case of manufacturing business, large investment is made in land, building, machinery, etc.

47. "M Ltd. intends to upgrade its technology of its existing plant." Which factor of requirement of fixed capital is highlighted in the above statement?

(B) Planning (D) Business Operation Planning Sol. Option (C) is correct Explanation: Finance manager preparing blueprint for smooth operation of business is called as financial planning

49. M Ltd. requires additional funds. Do the company is opting for both debt and equity. State which source has higher floatation cost? (A) Debentures (B) Equity Shares (C) Both debt and equity (D) Bank Loan Sol. Option (B) is correct Explanation: Flotation costs are costs a company incurs when it issues new stock. Flotation costs make new equity cost more than existing equity. Analysts argue that flotation costs are a one-time expense that should be adjusted out of future cash flows in order to not overstate the cost of capital forever.

50. "To maintain flexibility, company must maintain some borrowing power to take care of unforeseen circumstances." This statement indicates about one of the long term instruments of capital market. Name it. (A) Equity Share (B) Performance Share

(A) Choice of Techniques

(C) Public Share

(B) Technology Upgradation

(D) Debentures

(C) Diversification (D) Scale of operation Sol. Option (B) is correct Explanation: Due to changes in technology or it becoming obsolete over time, companies require a large amount of investment in fixed capital.

48. Finance Manager of M Ltd. had prepared a Blue

23

Sol. Option (D) is correct Explanation: Debentures are the most common form of long-term debt instruments issued by corporations. A company will issue these to raise capital for its growth and operations, and investors can enjoy regular interest payments that are relatively safer investments than a company's equity shares of stock.

print for smooth operation of the business. Which concept of financial management is highlighted in above lines?

❑❑

24

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

Sample Question Papers

SAMPLE

1

Question Paper Maximum Marks : 200

1

Time : 45 Minutes

General Instructions : (i) This paper consists of 50 MCQs, attempt any 40 out of 50 (ii) Correct answer or the most appropriate answer: Five marks (+5) (iii) Any incorrect option marked will be given minus one mark (– 1) (iv) Unanswered/Marked for Review will be given no mark (0) (v) If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Name the process of working with and through

(1) Only efficient

others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.

(2) Only effective

(1) Management

(2) Planning

(3) Organising

(4) Controlling



2. Directing is initiated at ......................... level of management.

(1) Lower (2) Middle (3) Top (4) All of these

3. An effort to control everything may end up in controlling nothing is related to:

(1) Critical Point Control (2) Management by Exception

(3) Both efficient and effective (4) Neither efficient nor effective

6. Gang Plank is a term associated with which principle of Fayol.

(1) Equity (2) Order (3) Scalar Chain (4) Initiative

7. Coordination is needed when:

(1) An individual is working independently. (2) A group is working. (3)  Both when an individual is working independently and a group is working.

(3) Management by Information

(4)  Neither when an individual is working independently nor when a group is working.

(4) Key Result Areas





4. Which of the following feature of management states that the management functions cannot be performed in isolation?

(1) Management is a goal-oriented process. (2) Management is all pervasive. (3) Management is a continuous process. (4) Management is a group activity.

5. If a manager is able to achieve the target production of 7,000 units but at a higher cost, then what will he be considered as?

8. Shashi joined ‘Fashion Ltd.’ as Head of Production Department and realized that company was not performing well. She developed the best method using several parameters right from deciding the sequence of operations, place of men, machines and raw materials till the delivery of the product to the customers. Identify the technique of scientific management being followed by Shashi.

(1) Motion study (2) Fatigue study (3) Method study (4) Time study

2

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES 9. Which of the following is an objective of

standardization? (1) To reduce a given line or product to fixed types, sizes and characteristics. (2) To establish interchange ability of manufactured parts and products. (3) To establish standards of excellence and quality in materials and of performance of men and machines. (4) All of the above 10. By whom was the term intrapreneur coined? (1) Robert Owen (2) Joseph Schumpeter (3) Richard Cantillon (4) Gifford Pinchot 11. Which of the following is a feature of Planning? (1) Provides directions (2) Reduces the risks of uncertainty (3) Focuses on achieving objectives (4) All of the above

12. Principles of management provide managers with



useful insights into reality. Which of the following statements explain this appropriately? (1) Adds to managerial knowledge (2) Enables managers to learn from past mistakes (3) Helps managers conserve time by solving recurring problems quickly (4) All of the above



13. Who applied the word entrepreneur to business





(3) Planning is required only at Top Level of Management as plans are made by Top Level of Management. (4) Planning always leads to success.



16. ........................ ensures that the heads of separate





business units in the organisation are responsible for profit or loss of their unit and have authority over it. (1) Span of management (2) Divisional structure (3) Functional structure (4) Hierarchy of authority



17. Which of the following type of selection test



provides clues to a person’s emotions, reactions, maturity and value system, etc.? (1) Aptitude Tests (2) Personality Tests (3) Intelligence Tests (4) Interest Tests



18. Who among the following is the Chairman of SEBI as of August 2018 (1) Sanjeev Kaushik (2) U.K. Sinha (3) C. B. Bhave (4) Ajay Tyagi



19. Match the FUNCTIONAL AREA in Column I

with their respective STANDARDS set to gauge performance in Column II, as a part of the controlling function. Column I

Column II



for the first time? (1) Robert Owen (2) Joseph Schumpeter (3) Richard Cantillon (4) Max Weber

(1)

Marketing

(i) Quality

(2)

(ii) Liquidity



14. Meena, a proof reader in Akash Publications, has

Production

(3)

Human Resource Management

(iii) Advertising expenditures

(4)

Finance and Accounting

(iv) Labour absenteeism

been given a target of reading at least 40 pages per day. She has a habit of doing things differently. While doing her work, an idea struck her that a summary of a chapter in the form of a map where all the concepts related to that chapter would be interlinked, should be given in starting of each chapter. It will give students a gist of chapter as well as provide a competitive edge over other publishers. But instead of appreciating her idea, her immediate boss scolded her and asked her to complete the work as per prescribed format. Out of the following, identify the limitation of planning stated in above paragraph :



(1) Planning reduces creativity.



(2) Planning involves huge cost.



(3) Planning is a time-consuming process.



(4) Planning does environment.



not

work

in

dynamic

15. Which of the following statements is true regarding planning?





(1) Once plans are made to decide the future course of action, the management may not be in a position to change them. (2) Planning is a one-time process.



(1) (i), (iii), (iv), (ii) (2) (iii), (i), (iv), (ii) (3) (iv), (ii), (i), (iii) (4) (iii), (i), (ii), (iv)

20. Which of the following money market instrument is also known as Zero Coupon Bonds? (1) Call Money (2) Treasury Bill (3) Commercial Paper (4) Commercial Bill



21. “Bhuvan, who was a vegetarian went to a snack



22. Staffing is considered as a ...................... process.

bar for having French fries and later found out that it had non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content.” Which right of consumer is violated ? (1) Right to Choose (2) Right to be Informed (3) Right to be Heard (4) Right to Seek Redressal (1) Continuous (2) One-time (3) Random (4) None of these

Sample Question Papers

23. Which type of organisational structures is the most

suitable for those business enterprises where a large variety of products are manufactured? (1) Functional (2) Divisional (3) Both (1) and (2) (4) None of the above

24. Which of the following steps in the Controlling

(1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

26. Assertion (A): Motivation helps to change negative

or indifferent attitudes of employee to positive attitudes so as to achieve organisational goals. Reason (R): Motivation helps to improve performance levels of employees as well as the organisation. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.



process state that comparison becomes easier when standards are set in quantitative terms ? (1) Analysing deviations (2) Measurement of actual performance (3) Comparing actual performance with standards (4) Setting performance standards



25. Assertion (A): Supervisor acts as a link between



27. Match the TERMS in Column I with their corresponding MEANING or EXPLANATION in Column II.

workers and management. Reason (R): Supervisor plays a key role in maintaining group unity among workers placed under his control. Column I



Column II

(a)

Fixed capital

(i)

Investment in current assets

(b)

Working capital

(ii)

Assets which get converted into cash or cash equivalents within one year

(c)

Fixed assets

(iii)

Assets which remains in the business for more than one year

(d)

Current assets

(iv)

Investment in long-term assets

(1) (ii), (i), (iii), (iv) (3) (iv), (i), (iii), (ii)

28. In order to get feedback about its recently



launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited. (1) Standardisation (2) Product designing (3) Customer support service (4) Gathering and analysing market information



29. Rajan Ltd. decided to change their organization

structure and shift to functional structure. So, it decided to hire four different Heads for Sales, Accounts, Purchase and Production from outside the company to bring fresh talent. It publishes advertisement and shortlists 20 candidates for each position after conducting various selection tests. Out of the following, identify the next step to be followed by Rajan Ltd. (1) Employment interview (2) Preliminary screening (3) Reference and background check (4) Selection decision

3

30. Which of the following is a function of the stock exchange?



(2) (iii), (iv), (ii), (i) (4) (iii), (i), (ii), (iv) (1) Providing liquidity and marketability existing securities (2) Spreading of equity cult (3) Contributing to economic growth (4) All of the above



31. Match the STEPS of Planning process in Column I



with the appropriate SEQUENCE in Column II. Column I

(1) Setting Objectives (2) Implementing the plan (3) Evaluating courses



to

alternative

Column II (i) Fourth step (ii) First step (iii) Sixth step

(1) (iii), (ii), (i) (2) (ii), (i), (iii) (3) (ii), (iii), (i) (4) (iii), (i), (ii)

32. 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. (1) Management by control (2) Control by exception (3) Critical point control (4) Both (1) and (2)

4

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

33. Match the STRUCTURE in an organisation in

Column I with the appropriate EXPLANATION in Column II. Column I

(1) Organisation Structure (2) Functional Structure

(3) Divisional Structure





Column II (i) Grouping activities on the basis of products. (ii) Framework within which managerial and operating tasks are performed. (iii) Grouping of similar jobs and organizing them as separate departments.





(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

34. Mr. Prateek Goyal, the Ex-chairman of India

Original Ltd., built up his successor before retiring. Following the norms set up by himself, he handed over the reins of the company to the co-founder Mr. Arvind Mishra, who had the potential to bring about change in the behaviour of others. Name the concept of management which was the reason, why Mr. Prateek Goyal choose Mr. Arvind Mishra to be his successor.

organisation structure? (1) Extent of delegation (2) Employee strength (3) Span of management (4) None of the above

36. Which aspect of staffing is concerned with upgradation of the knowledge and skills of the employees? (1) Placement and Orientation (2) Training and Development (3) Selection (4) Estimating manpower requirement

37. ICR = ........................................



38. Zakira Ltd. wants to invest in treasury bills issued



(1) EBIT/Interest (2) EBIT × Interest (3) EBIT – Interest (4) Interest/EBIT by RBI. What will be the minimum amount to be invested in Treasury Bill? (1) ` 25,000 (2) ` 20,000 (3) ` 50,000 (4) ` 1,00,000

39. Match the CONSUMER RIGHTS as per Consumer Protection Act in Column I with the appropriate EXPLANATION in Column II.

Column II

(1)

Right to be Protected

(i)

(2)

Right to Choose

(ii)

(3)

Right to Seek Redressal

(iii)

Wide variety of products in terms of quality, brand, prices, size, etc. should be offered to the consumer. Protection to consumer against goods and services which are hazardous to life and health. Consumer to get relief in case the product or service falls short of his expectations.

(1) (ii), (iii), (i) (3) (ii), (i), (iii)

40. Marketing is a ......................... process by which



people interact with others in order to persuade them to act in a particular way, say to purchase a product or service rather than forcing them to do so. (1) Physical (2) Social (3) Technical (4) Psychological



41. _________ is the hallmark of a successful

entrepreneur (1) Risk bearing capacity (2) Persistence (3) Flexibility (4) Self-confidence

35. Which of the following gives shape to the



Column I



(1) Motivation (2) Leadership (3) Communication (4) Staffing

42. Your mother purchased a washing machine

for ` 10,000 from an authorised dealer of the manufacturer with a verbal guarantee that the machine will be replaced with a new one if any

(2) (iii), (ii), (i) (4) (iii), (i), (ii) of its parts becomes defective within 3 months from the date of purchase. The motor of the machine was burnt within 15 days of its purchase. On complaining, the seller refused to replace the machine. Name the redressal agency under Consumer Protection Act where your mother can file the complaint. (1) District Commission (2) State Commission (3) National Commission (4) None of the above

43. Which of the following can be a depository participant (DP)? (1) Bank (2) Broker (3) Financial Services Company (4) All of the above

Sample Question Papers

44. “Buy appliances worth ` 15,000 and get a discount



voucher of ` 3,000.” Which of the following sales promotion activity is being depicted here? (1) Discount (2) Usable benefits (3) Rebate (4) Quantity gift



45. For optimal procurement of funds, a finance



manager identifies different available sources and compares those items in terms of cost and associated risks. Identify concept highlighted in the above lines. (1) Financial management (2) Financial decisions (3) Working capital (4) None of the above



46. Match the FUNCTIONS of Marketing in Column I with the appropriate ACTIVITIES in Column II. Column I (1) Marketing Planning

(2) Product Designing and Development

(3) Branding

Column II (i) Providing basis for distinguishing the product of a firm with that of the competitor. (ii) Specifying the action programmes to achieve different objectives. (iii) Making the product attractive to the target customers.

(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii) I. Read the following text and answer the following questions on the basis of the same: The name and taste of Coca-Cola is known to almost each and every individual in India as well as throughout the world. This carbonated soft drink holds the most market share in the soft drink market and got itself a special seat in each and

5

every gathering. The Coca-Cola Company has on occasion introduced other cola drinks under the Coke name. The most common of these are Diet Coke, along with others including Caffeine free Coca-Cola, Diet Coke Caffeine free, Coca-Cola Zero Sugar, Coca-Cola Cherry, Coca-Cola Vanilla and the list goes on. It has capitalized on each and every opportunity to market itself effectively and place itself in the middle of every gathering. The main reason for such an outstanding placement of product goes to the way they have established the connection between every occasion and the need for Coke to be present there, product design and creative advertising.

47. In the context of the above given case, identify one



valid importance of Business Environment. (1) Enables a firm to identify opportunities and getting first mover advantage (2) Uncertainty (3) Delay in action (4) Pervasive function



48. Identify the feature of Business Environment





which the Coca-Cola Company managed to get in their favour. (1) Complex (2) Specific and general forces (3) Futuristic (4) Mental Exercise



49. Which business environment did Coca-Cola



majorly tap into ? (1) Technological Environment (2) Social Environment (3) Political Environment (4) Economic Environment

50. Which of the following is not a product of COCACOLA? (1) Diet Coke Caffeine free (2) Coca-Cola Zero Sugar (3) Coca-Cola Avocado (4) Coca-Cola Cherry



OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

6

SAMPLE

Question Paper Maximum Marks : 200 

2

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. In a cotton textile mill, various tasks viz. spinning, weaving, sizing, bleaching, etc. were divided to different groups of persons. Identify the principle of management stated here. (1) Unity of command (2) Division of work



(2) A new enterprise cannot use internal sources of recruitment. (3) Frequent transfers of employees improves the productivity of the organization. (4) None of the above.



5. ....................... is the process of dividing work into





manageable activities and then grouping the activities which are similar in nature. (1) Coordination (2) Departmentalisation (3) Organisation structure (4) Delegation of authority



6. To see whether plans are being implemented and

(3) Stability of personnel (4) Unity of direction

2. A good manager works through a combination of which of the following?

(1) Practice (2) Creativity and imagination



activities are being performed according to the schedule, is a step of planning process. Identify the step. (1) Selecting the best alternative (2) Implementing the plan (3) Follow up action (4) Evaluating alternative courses of action



7. What should be the ‘focus point’ for a manager

(3) Initiative and innovation (4) All of the above

3. Even though the political conditions vary from country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the business environment is being highlighted in the above statement?



(1) Specific and general forces



while controlling, as controlling at each and every step is not possible? (1) Special area (2) Key result area (3) Normal area (4) None of these



(2) Dynamic nature





(3) Relativity

8. “Increase in the use of mobile phones and i-pods



instead of papers and radio” refers to an example of key component of general environment of business. Identify the component of business environment.

(4) All of the above

4. Which of the following statements is incorrect? (1) Through internal sources of recruitment employees may become lethargic if they are sure of time-bound promotions.



(1) Technological (2) Political



(3) Legal (4) Economic

Sample Question Papers

9. ________ risks is born by the entrepreneur



(1) financial risks



(2) personal risks



(3) psychological risks





16. Match the FUNCTIONS of Financial Markets in Column I with their correct MEANING in Column II. Column I

(4) all of these

10. Which of the following statements is incorrect?

(a)

Allocated Function



(1) Financial planning is the process of estimating the fund requirement of a business and specifying the sources of funds.



(2) The objective of financial planning is to ensure that enough funds are available at right time.

(b)

Facilitating Price Discovery



(3) Financial planning is a substitute of Financial Management.

(c)



(4) None of the above

Financial Assets Liquidity



11. Which of the following does not apply to Principles of Management?

(1) Applicable in large firms (2) Formed by practice and experience of managers



(3) Flexible



(4) Contingent

12. Which of the following statements is false with respect to training ?



(1) Enhances employee productivity



(2) Equips the future manager



(3) Increases employee morale



(4) None of the above

13. R-Ox Ltd. wants to increase their market share by 4.5% in next two years. It spent a lot of money to hire specialized people for framing their plans, collecting important facts about environment who took lot of time to frame plans for the company. The competition has started increasing, and it is not able to beat its competitors because it has already spent a huge amount. The plan failed and company suffered a huge loss. Identify the limitation of planning stated in the given case.



(1) Planning involves huge cost.



(2) Planning may not work in a dynamic environment.



(3) Planning is a time-consuming process.



(4) All of the above.



14. Full form of NSDL is;



(1) National Securities Depository Limited



(2) National Share Depository Limited



(3) National Securities Development Limited (4) National Share Development Limited



15. If a manager is not able to achieve the target

production of 6,000 units but is able to reduce the costs significantly, then what will he be considered as? (1) Only efficient (2) Only effective (3) Both efficient and effective (4) Neither efficient nor effective



7

Column II (i) Establish a price for the financial asset through interaction between house-holds and business firms. (ii) Easy purchase and sale of financial assets. (iii) Mobilization of savings and channelising them into the most productive use.

(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

17. State a remedy to solve the problems of women entrepreneurs. (1) Social attitude (2) Finance cells (3) Stiff Competition (4) Supervision



18. “Even after opening up of the Indian economy in



19. Which of the following functions of marketing

1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business.” Identify the dimension of the business environment which led to creation of the negative impact on business. (1) Social Environment (2) Technological Environment (3) Political Environment (4) Legal Environment



helps in building customer’s loyalty and in promoting its sale? (1) Standardisation (2) Branding (3) Pricing of Products (4) Grading



20. Which of the following statements is true for



21. .......................... is short-term finance repayable

management as a science? (1) Existence of theoretical knowledge (2) Based on practice and creativity (3) Principles based on experimentation (4) Professional association



on demand, with a maturity period of one day to fifteen days. (1) Call Money (2) Treasury Bill (3) Commercial Paper (4) Commercial Bill



22. Match the PERSONNEL UNDER PLANNING INCHARGE in Column I RESPONSIBILITIES in Column II.

with

their

8

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Column I

(1) Instruction card clerk (2) Route clerk



Column II (i) Specify the production

route

of

(ii) Ensure discipline

(3) Time and cost clerk

(iii) Draft instructions for the workers

(4) Disciplinarian

(iv) Prepare time and cost sheet

(1) (i), (ii), (iii), (iv) (2) (iii), (i), (iv), (ii) (3) (iii), (iv), (i), (ii) (4) (iv), (i), (ii), (iii)

23. Which of the following are considered as the pillars of marketing? (1) Packaging (2) Labelling (3) Both (1) and (2) (4) None of these

24. According to the union budget 2022, both centre



and states government employee tax deduction limit has been increased from 10 percent to ____ (1) 10 per cent (2) 12 per cent (3) 14 per cent (4) 18 per cent



25. ‘Planning is required in all organisations, at all



levels and in all departments.’ .............. feature of Planning is stated in the above statement ? (1) Planning is futuristic. (2) Planning is pervasive. (3) Planning is a mental exercise. (4) None of the above



26. Assertion (A): Controlling ensures that resources



are used in the most effective and efficient manner. Reason (R): In controlling, each activity is performed in accordance with predetermined standards and norms. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

27. Assertion (A): A small enterprise cannot afford to

install an expensive control system. Reason (R): Control system loses some of its effectiveness when standards cannot be defined in quantitative terms. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.



28. Name the principle of Scientific Management

which suggests the introduction of scientific investigation and analysis. (1) Science, not rule of thumb



(2) Harmony not discord (3) Cooperation not individualism (4) Development of each person to her/ his greatest efficiency and prosperity



29. ‘The consumer has the right to acquire knowledge



30. ........................ method of training is suitable when

and to be a well-informed consumer throughout life’. Identify the right stated in the above lines. (1) Right to Seek Redressal (2) Right to be Heard (3) Right of Consumer Awareness (4) Right to Choose



employees are required to handle sophisticated machinery. (1) Apprenticeship Programmes (2) Internship Training (3) Vestibule Training (4) Induction Training



31. Sandeep purchased a packet of biscuits from a



32. Yummy Foods Ltd. has its registered office in

nearby shop. He observed that the ingredients given on the label were not legible. He complained about it to the customer care of the company. The company sent a written apology besides stating that it will be ensured that the existing packets in the market will be withdrawn with immediate effect and new packets with legible labels will be made available. Which consumer right did Sandeep exercise? (1) Right to be Informed (2) Right to be Heard (3) Both (1) and (2) (4) Neither (1) nor (2) Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ................... type of organisational structure should be adopted by the company to achieve its objectives.

(1) Functional



(2) Divisional



(3) Both (1) and (2)



(4) Neither (1) nor (2)



33. Which type of organisational structures is the most suitable when the size of the organisation is large and is producing one line of product?



(1) Functional (2) Divisional



(3) Both (1) and (2) (4) None of these



34. Samay wanted to purchase a car with the latest

standards and possessing features to minimize pollution. He saw an advertisement and subsequently visited the showroom of the company where the car was displayed. In his discussion, the marketing manager told Samay that the company is providing credit facilities, maintenance services and many other useful services on account of which the company is experiencing repeat sales

Sample Question Papers

9

41. Which of the following marketing functions is





and has been able to develop brand loyalty. Thus, ...................... marketing function is being discussed between the marketing manager and Samay. (1) Branding (2) Customer support service (3) Promotion (4) Physical distribution



concerned with informing the customers about the firm’s products? (1) Physical Distribution (2) Promotion (3) Market Planning (4) Packaging and Labelling



35. “The components of business environment keep on



42. ...................... are the anticipated environments in



changing due to changes in various circumstances.” This shows that business environment is ................. (1) Dynamic (2) Uncertain (3) Complex (4) Relative



36. Aman had 55 shares of Vani Ltd. He wanted to sell



30 shares, so he went for a specific market to sell them through online portal. He went for which of following markets? (1) Money Market (2) Secondary Market (3) Primary Market (4) None of the above



37. Pragya bought an iron of reputed brand for

` 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’. Identify the right which she can exercise. (1) Right to Choose (2) Right to be Informed (3) Right to be Heard (4) Right to be Protected 38. ................. comes under the top management. (1) Chief Executive Officer (2) Operations Manager (3) Foremen (4) Supervisors

39. _______ is a stage at which idea of new product

is tested in potential consumers to determine consumer acceptance (1) Concept (2) Product development (3) Test marketing (4) Commercialization



40. An important project at AMB Consultants is running behind schedule by a month. This has upset their clients and might affect the reputation of the company in the long run. No managerial action like assigning more workers, equipment or giving overtime has been able to solve the problem. What managerial action may now be taken by the company to avoid such a situation from arising in future? (1) Revise the schedule (2) Assigning additional workers and equipment to the project (3) Get permission for further overtime work (4) Both (2) and (3)



which plans are expected to operate. (1) Planning premises (2) Forecasting (3) Objectives (4) None of these

43. Which of the following statements is false regarding

financial market? (1) Financial markets complicate the purchase and sale of financial assets. (2) Financial markets provide valuable information about securities being traded in the market. (3) They provide liquidity to financial assets. (4) None of the above.



44. The foremost objective of financial management is:



45. An IT company currently employing 5,000

(1) Maximisation of market share (2) Maximisation of shareholders’ wealth (3) Maintenance of liquidity (4) Profit maximisation



people, plans to expand its business through diversification. It aims to become a global leader. To achieve this goal, it has started shifting to a decentralised management system from a centralized one. Thus, ………………. function of management is being performed by the company to become a decentralised company. (1) Directing (2) Staffing (3) Organising (4) Planning



46. Which of the following steps in the process of



staffing involves the process of searching for prospective employees and stimulating them to apply for respective jobs in the organization? (1) Recruitment (2) Selection (3) Training and Development (4) Placement and Orientation I. Read the following text and answer the following questions on the basis of the same:

Mr. Sunil Diali is a safety officer in a reputed PSU sector ECL. He supervises the workers towards the predetermined goals of the organisation and directs how to eradicate unsafe practices of inundation, fire breakouts, existence of inflammable gases, etc. On one such instances there was huge fire breakout in the underground mines and the workers morale was down and demotivated because of several risk hazards. Mr. Diali observed the whole situation and consulted with all his workers and constantly monitored, guided and inspired them

10

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES to integrate their efforts and accept the situation as a challenge and take adequate safety measures for fire extinguish and subsidizing its effects. Thereby, production turnover was outstanding and outperformed other subsidiaries. Mr. Diali was recognized with Bravery Award from CIL.



47. Mr. Diali worked towards predetermined goals of the organization. Which important function of directing is addressed here?



(1) Means of motivation (2) Initiates action



(3) Facilitate change (4) Brings stability



48. Mr. Diali consulted with all his workers, he listened to their opinions. Which form of leadership is identified here?





(1) Laissez-faire (2) Autocratic (3) Democratic (4) Free-rein

49. Bravery award is .................................. form of nonfinancial incentive. (1) Status (2) Job security (3) Career advancement (4) Employee recognition

50. Under Maslow’s hierarchy need theory which need of Mr. Diali has been met through respect and recognition among other employees? (1) Self-Actualization need (2) Safety and security needs (3) Esteem needs (4) Physiological needs 

Sample Question Papers

SAMPLE

Question Paper Maximum Marks : 200 

11

3

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (–1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Which statement is correct regarding division of work? (1) Intent is to produce more and better work from 5. Indian Entrepreneurship Development Institute is the same effort.



(2) Work is divided into small tasks.



(3) Trained specialists are required to perform each jobs.



(4) All of the above



2. Match the FEATURES of Business Environment in Column I with the appropriate EXPLANATION in Column II. Column I (a) Complexity (b) Specific forces

(c) Uncertainty



Column II (i) Very difficult to predict future happenings (ii) Easier to understand in parts but difficult to grasp in its totality (iii) Affect individual enterprises directly and immediately

(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

3. Entrepreneurship Development Program provides ______ (1) Unemployment (2) Employment (3) Dishonesty (4) Corruption

4. Management is a/an ........... process as it is an

ongoing and never-ending process. (1) Continuous (2) Non-continuous (3) Frequent (4) Alter



situated in _____ (1) In Ahmedabad (2) In Mumbai (3) In New Delhi (4) In Chennai

6. Name the function of management which helps in



the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period. (1) Planning (2) Organising (3) Directing (4) Controlling



7. Financial planning usually begins with the



preparation of a ........................ . (1) Sales forecast (2) Profit forecast (3) Business cycle (4) None of these



8. Arrange the phases of Project Management Life



9. The last step in the selection process is .................... .

Cycle in correct order. (i) Design (ii) Marketing (iii) Analysis and evaluation (iv) Inspection, testing and delivery (1) (iii)-(ii)-(i)-(iv) (2) (i)-(ii)-(iii)-(iv) (3) (ii)-(iii)-(i)-(iv) (4) (iv)-(iii)-(ii)-(i)

(1) Selection decision



(2) Medical examination



(3) Job offer



(4) Contract of employment

10. The organisation/institution which provides scope for speculation is:

12

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES



(1) Stock exchange



(2) SEBI



(3) Brokers



(4) None of the above



11. Which of the following statements is true?

(1) Asserting oneself to ensure that one gets a fair deal is the right of a consumer. (2) Right to seek redressal entitles the consumer to get relief in case the product or service falls short of his expectation. (3) Right to be heard empowers a consumer to have access to a variety of products and services. (4) A case decided by the District Commission, can be appealed before the Supreme Court.

12. Which of the following statements is true regarding marketing?



(1) It is a process whereby people exchange goods and services for money.



(2) It has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers.





(3) It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold. (4) All of the above

13. Mr. X purchased a car for ` 15 lakhs but he is not

satisfied with the quality and performance of the car. The company of the car did not provide any remedy to him. Under which authority of Consumer Protection Act, 2019 can he file an appeal? (1) District Commission (2) State Commission (3) National Commission (4) None of the above

14. ................... is used extensively for all types of activities and mainly for taking charge of different activities in any enterprise.

(1) Planning

(2) Management

(3) Coordination

(4) Staffing



15. NSE and BSE are types of ......................... . (1) Depositories (2) Depository Participants (3) Stock Exchanges (4) Banks 16. ........................ takes into consideration the growth, performance, investments and requirement of funds for a given period.



(1) Business cycle (2) Financial planning



(3) Organising (4) Working capital



17. .................................. refers to producing goods of predetermined specifications, which helps



in achieving uniformity and consistency in the output. (1) Standardisation (2) Packaging (3) Labelling (4) Grading



18. Which of the following importance of organising



stimulates creativity amongst the managers? (1) Development of personnel (2) Optimum utilization of resources (3) Expansion and growth (4) None of the above

19. ........................ is an institution or organisation,



which holds securities in electronic form, in which trading is done. (1) Stock Exchange (2) SEBI (3) Depository (4) None of the above



20. ...................... is an inner state that energises,



activates or moves and directs behaviour towards goals. (1) Motivation (2) Motive (3) Motivators (4) All of the above

21. Art can be acquired through which of the following: (1) Study (2) Observation (3) Experience (4) All of the above

22. The principles of management are significant



23. Which of the following is true regarding

because of : (1) Providing managers with useful insights into reality. (2) Optimum utilization of resources and effective administration. (3) Meeting changing environment requirements. (4) All of the above.



Organisational Structure? (1) Grouping of jobs of similar nature under functional structure and organising these major functions as separate departments creates a divisional structure. (2) Span of Management determines the levels of management in the organisation structure. (3) Divisional structure makes training of employees easier as the focus is only on a limited range of skills. (4) All of the above



24. Security Agents Ltd. provides security services.



They gave an advertisement in newspaper for hiring males for the post of Security Guard who are reliable and keep client information confidential. 75 candidates approached them and Security Agents Ltd. finalized 10 candidates to be selected after conducting required test and interview. Out of the following, identify the next step to be followed by Security Agents Ltd. (1) Medical examination (2) Job offer





Sample Question Papers

(3) Reference and background check (4) Selection decision

25. Which of the following Maslow’s needs include



factors such as self-respect, autonomy status, recognition and attention? (1) Esteem Needs (2) Self-Actualisation Needs (3) Affiliation/Belonging Needs (4) Safety/Security Needs



26. Controlling means ensuring that activities in an



organisation are performed as per the ..................... . (1) Plans (2) Goals (3) Resources (4) None of these



27. “The shift of demand from soft drinks to juices



is an opportunity for juice companies and threat for soft drink companies.” Identify the feature of business environment: (1) Relativity (2) Complexity (3) Uncertainty (4) Dynamic



28. Nature of ................... is said to be a systematic

13

(2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

32. State the year in which Securitites Board of India was established? (1) 1988 (2) 1990 (3) 1992 (4) 1994

33. CPA Services CEO, Abhishek Nigam’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. (1) Employer paid insurance (2) Salary (3) Commission (4) All of the above



34. The money market is a market for short-term funds

body of knowledge which explains certain general truths. (1) Management as a Science (2) Management as an Art (3) Management as a Profession (4) All of the above



which deals in monetary assets whose period of maturity is: (1) Upto one year (2) Upto six months (3) Upto three months (4) None of these



35. ............................... is the obligation of a subordinate

29. Which of the following statements is false regarding





financial management? (1) Aims at ensuring availability of enough funds whenever required. (2) Aims at reducing the cost of funds procured. (3) Is concerned with optimal procurement as well as usage of finance. (4) Facilitates price discovery for securities of company.

30. Assertion (A): Internal recruitment simplifies the

process of selection and placement. Reason (R): Filling vacancies in higher jobs from within the organisation motivates the employees to improve their performance through learning and practice. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.





36. Which of the following is not an element of social environment? (1) Birth and death rate (2) Constitution of the country (3) Population shifts (4) Life expectancy



37. “Employee know well in advance what they are



38. Which of the following statements is false with

expected to do and what are the standards of performance on the basis of which they will be appraised, which in turn help them to give better performance.” Which importance of controlling is highlighted above? (1) Facilitating coordination in action (2) Making efficient use of resources (3) Accomplishing organisational goals (4) Improves employee motivation



31. Assertion (A): Direct method of recruitment is

very inexpensive as it does not involve any cost of advertising for the vacancies. Reason (R): Under direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A).

to properly perform the assigned duty. (1) Authority (2) Responsibility (3) Accountability (4) None of these





respect to principles of management? (1) The principles of management are formed by experience and collective wisdom of managers as well as experimentation. (2) The principles of management are not rigid prescriptions, which have to be followed absolutely. (3) Management principles aim at influencing behaviour of human beings. (4) The application of principles of management is not possible in contingent situations.

14

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

39. ‘Buy two get one free’ is printed on the label of the package of toothpaste. Which labelling function is being performed by this statement ?



(1) Describe the product



(2) Identification of the brand



(3) Grading of product



(4) Sales promotion



40. Which of the following statements is incorrect?



(1) Business environment is a relative concept.



(2) Business environment is the sum total of all things internal to business firms.



(3) Opportunities refer to the positive internal trends or changes that will help a firm to improve its performance.



(4) None of the above



41. What should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible?



(1) Analysing deviations



(2) Measurement of actual performance



(3) Comparing actual performance with standards



(4) Setting performance standards



42. Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines regularly. One day, on his tour to Patna, he met with an accident and was hospitalised. Due to doctors’ negligence a delicate nerve of his right leg was cut rendering him crippled throughout his life. Identify the consumer right that has been violated by the doctors under the Consumer Protection Act, 2019 in the above situation.

(1) Right to Choose (2) Right to be Informed (3) Right to be Heard (4) Right to be Protected

43. Which of the following statements are true about ‘Authority’?



(1) Authority can be official authority or personal authority. (2) Authority can be formal or informal. (3) Authority should be commensurate with responsibility. (4) All of the above.

44. Suganya decided to start the business of selling dress materials. She did some research to find out about the preferences of prospective customers. Based on this, she prepared a detailed business plan. She then made important decisions about the features, quality, packaging, labelling and branding of the dress material. Which of the

following elements of Marketing Mix is being discussed here? (1) Promotion (2) Market (3) Product (4) Place 45. Which of the following is a financial incentive? (1) Productivity linked wage incentive (2) Organisational climate (3) Status (4) Job enrichment 46. Which of the following is a disadvantage of divisional structure? (1) Conflict may arise among different divisions with reference to allocation of funds. (2) More emphasis on departmental objectives. (3) Leads to inter-departmental conflict. (4) Leads to inflexibility. I. Read the following text and answer the following questions on the basis of the same: 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 of 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. 47. “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? (1) Developing Premises (2) Growth and development

(3) Launching IT enabled system



(4) Cost cutting



48. “The management had done effective forecast and critical thinking regarding allocation of resources to reduce wastage.” Identify the function of management mentioned here.



(1) Planning (2) Organising



(3) Controlling (4) Directing

Sample Question Papers

49. “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?

15

50. “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.” Which is the last step of the process mentioned here?



(1) It fails to cope with sudden changes.



(2) It involves huge cost.



(1) Implementation of plan



(3) It requires critical thinking.



(2) Timely execution of projects



(4) Need to construct multiple action plans.



(3) Follow up



(4) To prepare alternative course of action 

16

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SAMPLE

Question Paper Maximum Marks : 200 

4

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Rohan is manufacturing lunch boxes for school going children. To maximize the profits, he decided to improve their quality and added a hot case to the boxes. As a result of this improvement in the product, its sale increased gradually. Which of the following marketing philosophy was involved :



(1) Product



(3) Standard (4) None of the above



(2) Prize

2. Which fund in an organisation possess finance for day to day operations







(1) Input received (2) Output received



(3) Both (1) and (2) (4) None of the above



7. State the five dimensions that must be managed on a project

(1) Fixed capital (2) Working capital (3) Retained earnings (4) None of the above

(2) Organising discourages creativity amongst the managers. (3) Organising allows a business enterprise to accommodate changes in the business environment. (4) All of the above 6. Design phase comprises of _______

(1) Constraint, Quality, Cost, Schedule, Staff

3. Directing takes place between who among the

(2) Features, Quality, Cost, Schedule, Staff

following: (1) Superior-Superior (2) Superior-Subordinate (3) Subordinate-Subordinate (4) All of the above 4. Staffing is a process which involves a series of steps. Arrange the following steps in correct order: (i) Placement and Orientation (ii) Recruitment (iii) Selection (iv) Estimating manpower requirement (1) (iv), (ii), (iii), (i) (2) (iv), (iii), (ii), (i) (3) (i), (ii), (iii), (iv) (4) (ii), (iv), (iii), (i)

(3) Features, priority, Cost, Schedule, Staff



5. Which of the following statements is true about the



organizing function of management? (1) Departmentalisation is the first step in the process of organising.

(4) Features, Quality, Cost, Schedule, customer

8. Which of the following is the feature of Business Environment?



(1) It is a relative concept since it differs from country to country and even region to region.



(2) It enables the firm to identify opportunities and getting the first mover advantage.



(3) It helps in tapping useful resources.



(4) All of the above





9. According to Fayol, the interests of an .............

should take priority over the interests of an ................ . (1) organization, individual (2) individual, organization (3) individual, group (4) group, organization

Sample Question Papers

10. “The increase in the demand for many ayurvedic



medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona Virus.” Identify the feature of business environment being described above. (1) Specific and general forces (2) Inter-relatedness (3) Relativity (4) None of the above



11. At which level managers spend more time in

planning and organising? (1) Top level (2) Middle level (3) Lower level (4) All of these

12. Which study is the study of movements? (1) Method (2) Motion (3) Time (4) None of these

13. ................... plays a very important role in the

organization as they act as a link between the top and lower level management. (1) Supervisory level (2) Middle level (3) Operational level (4) First line managers 14. Hiring of employees is done by : (1) Top level (2) Middle level (3) Lower level (4) All of these

15. The term ‘Business Environment’ means the sum



total of: (1) All individuals. (2) Institutions. (3) Other forces that are outside the control of a business enterprise. (4) All of the above



16. In order to make the ‘Annual Day’ of the school a





successful event, the Headmistress of the school segregated all the activities into task groups each one dealing with a specific area. For instance, decorations, refreshments, backstage support, etc. Each group was put under the charge of one teacher. Identify the function of management performed by the Headmistress by dividing the activities and assigning the duties? (1) Planning (2) Organising (3) Staffing (4) Directing

17. What does workforce analysis reveal?



(1) Number of human resources available. (2) Type of human resources available. (3) Both number and type of human resources available. (4) None of the above.



18. Which of the following Maslow’s needs refer to



affection, sense of belongingness, acceptance and friendship? (1) Esteem Needs (2) Self-Actualisation Needs



17

(3) Affiliation/Belonging Needs (4) Safety/Security Needs



19. “A popular brand of Hair Conditioners comes



Identify the function of labelling in the above example.



(1) Providing information required by law (2) Describe the product and specify its contents (3) Grading of products (4) Promotion of products



in different categories for different hair, say for normal hair and for other categories”.

20. While ‘selecting an alternative’ under the planning



process, which of the following are considered? (1) Combination of plans may be selected instead of one best course. (2) Subjectivity and manager’s experience or judgment plays a role. (3) The most feasible, profitable plan with least negative consequences is chosen. (4) All of the above



21. 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. (1) Management by control (2) Control by exception (3) Critical point control (4) (1) & (2)

22. A company wants to replace manual production technique with mechanised techniques. Labour unions are resisting this change. Which function of management will help in the introduction of this change?



(1) Planning (2) Organising (3) Controlling (4) Directing

23. It has been made compulsory to settle all trades within how many days of the trade date on a rolling settlement basis?



(1) One (2) Two



(3) Three

(4) Four



24. How are the Management principles derived?



25. Match the STEPS in the process of organising in

(1) Observation (2) Experimentation (3) Personal experiences (4) All of the above Column I with the appropriate EXPLANATION in Column II. Column I (a) Identification and division of work

Column II (i) Dividing work into manageable activities

18

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

(b) Departmentalisation

(ii) Establishing a hierarchical structure

(c) Assignment of duties

(iii) Grouping similar activities together

(d) Establishing authority and reporting relationships

(iv) Allocating jobs to the members of each department

(1) (ii), (iii), (iv), (i) (2) (iii), (iv), (ii), (i) (3) (i), (iii), (iv), (ii) (4) (iv), (iii), (i), (ii)

26. Match the FEATURES of Planning in Column I with the appropriate EXPLANATION in Column II. Column I (1) Mental exercise

(2) Futuristic

Column II (i) Involves looking ahead and is regarded as a forward looking function. (ii) An intellectual activity of thinking rather than doing.

(iii) Need for a new plan on the basis of new requirements and future conditions. (1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

(2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

32. Assertion (A): Controlling creates an atmosphere



33. Which of the following is not the element of

of order and discipline in the organisation. Reason (R): Controlling helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.



27. Detailed plans of action are prepared under



financial planning. What benefits does this result in? (1) Reducing waste (2) Reducing duplication of efforts (3) Reducing gaps in planning (4) All of the above



28. For an enterprise, staffing is the ..........................



function in the series of management functions? (1) First (2) Second (3) Third (4) Fourth

29. Creams and medicines are the examples of



...................... products. (1) Convenience (2) Shopping (3) Speciality (4) None of the above



30. Mahindra Bank wants short-term finance for only



one or two days. What option should it pick? (1) Treasury bills (2) Call Money (3) Commercial Paper (4) None of the above

31. Assertion (A): The controlling function measures

progress towards the organisational goals. Reason (R): Controlling guides the organisation and keeps it on the right track so that organisational goals might be achieved. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A).

34. Management



principles are contingent or dependent upon the situations prevailing in the organization. Which is the correct explanation associated with this statement? (1) Application of principles is suitable in similar situations in a large number of cases. (2) Application of principles has to be changed as per requirements. (3) Principles of management can be modified. (4) None of the above.



35. Which of the following dimensions of Business

(3) Continuous



Directing? (1) Delegation (2) Leadership (3) Motivation (4) Communication





Environment includes legislations passed by the government administrative orders issued by government authorities? (1) Technological Environment (2) Social Environment (3) Legal Environment (4) Economic Environment



36. Which of the following statements is false with



respect to Planning? (1) It is one of the basic managerial functions. (2) Planning is closely connected with creativity and innovation. (3) It requires taking decisions. (4) None of the above



37. ........................ is a legally enforceable document



and helps to settle disputes/claims between the investor and the broker. It contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. (1) Share (2) Contract Note (3) Registration Form (4) None of these 38. Which of the following statements establishes a relationship between planning and controlling: (1) Planning and controlling are inseparable twins of management. (2) Planning is clearly a prerequisite for controlling.

Sample Question Papers (3) Planning is looking ahead while controlling is looking backward. (4) All of the above 39. ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner.’ Identify the characteristic of coordination discussed above. (1) Coordination ensures unity of action. (2) Coordination is a deliberate function. (3) Coordination is a continuous process. (4) Coordination is an all-pervasive function. 40. Which component of capital structure determines the overall financial risk ? (1) Debt (2) Equity (3) Both (1) and (2) (4) None of these 41. Which of the following importance of delegation establishes superior-subordinate relationship? (1) Employee development (2) Facilitation of growth (3) Motivation of employees (4) Basis of management hierarchy 42. ‘It is that function of management which is considered as the base of all other functions.’ Identify the function of management stated in the above lines. (1) Planning (2) Controlling (3) Organising (4) Staffing 43. ‘Workload Analysis’ includes which of the following. (1) The number and type of human resources already available. (2) The number and type of human resources necessary in future. (3) Both (1) and (2) (4) Neither (1) nor (2) 44. Tractors Pvt. Ltd. producing 2,00,000 trucks and generating revenue of ` 2,000 crores annually, has recently acquired the world’s second largest truck manufacturing company. After this acquisition, Tractors Pvt. Ltd. will become the world’s largest truck manufacturer. For financing the acquisition, the company had to arrange about ` 1,00,000 crores through debt and equity. __________ function is being performed by the company for arranging the funds through debt and equity. (1) Investment (2) Financing (3) Dividend (4) All of these 45. Which of the following statements is incorrect regarding Financial Markets? (1) The process by which allocation of funds is done is called financial intermediation.

19

(2) Money market instruments are close substitutes for money. (3) The difference between the price at which the treasury bills are issued and their redemption value is the interest receivable on them and is maturity value. (4) Treasury Bills are issued at a price which is lower than their face value and repaid at par. 46. Project performance incorporates _______ (1) Time (2) Cost (3) Quality (4) All of the above I. Read the following text and answer the following questions on the basis of the same : Piyali purchased an ISI marked Heater from Bharti Appliances. She made cash payment, but failed to get a Cash Memo. While making use of the heater she observed that it was not working properly. She contacted the shopkeeper immediately and told him the problem. Shopkeeper paid no heed to her complaint. Rather he marked that the good in question was not bought from his shop. Piyali had no evidence of proving that the heater was purchased from his shop only. She discussed the problem with her friend Sohini who advised her to approach Consumer Forum and lodge the complaint. Piyali was convinced with the idea of lodging the complaint against the shopkeeper but due to lack of cash memo it was difficult for her to proceed. 47. Identify the right of the consumer as referred to in the above paragraph. (1) Right to be Informed (2) Right to be Protected (3) Right to be Heard (4) Right to Choose 48. Identify the responsibility of the consumer referred in the above case. (1) Quality Conscious (2) Must Obtain Cash Memo (3) Cautious Consumer (4) Ready to Lodge Complaint 49. Piyali cannot lodge a complaint against the shopkeeper. Why? (1) She do not have the right. (2) She was aware of the fact. (3) She do not have the cash memo. (4) She was happy with the product. 50. Under which Act Piyali can seek to protect her rights being a consumer? (1) Consumer Protection Act, 2019 (2) Consumer Protection Act, 1986 (3) The Indian Contract Act, 1872 (4) The Competition Act, 2002 

20

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SAMPLE

Question Paper Maximum Marks : 200 

5

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Which of the following statements is false?

(1) Functional foremanship is an extension of the principle of division of work and specialisation to the shop floor. (2) Under planning incharge four personnel namely speed boss, gang boss, repair boss, and inspector would work. (3) Time Study determines the standard time taken to perform a well-defined job. (4) Cooperation, not individualism is an extension of the principle of harmony, not discord. 2. ‘Service sector contributes to almost half of India’s GDP but employs only one-third of its workforce.’ Which of the following dimensions of Business Environment is stated in the above line? (1) Economic (2) Social (3) Political (4) Legal 3. Which of the following is a feature of Planning: (1) Provides directions (2) Reduces the risks of uncertainty (3) Focuses on achieving objectives (4) All of the above 4. An organisation is ....................... when decisionmaking authority is retained by higher management levels. (1) Centralised (2) Decentralised (3) Both (1) and (2) (4) None of these

5. Which of the following steps in the process of selection, helps the manager to eliminate unqualified or unfit job-seekers based on the information supplied in the application form?



(1) Preliminary Screening (2) Employment Interview (3) Reference and Background Checks (4) Selection Decision 6. Which of the following qualities of a leader states that he should have the capacity to clearly explain his ideas and make the people understand his ideas? (1) Knowledge (2) Motivation skills (3) Initiative (4) Communication skills



7. Quick Foods Ltd. is a food delivery service





application that has recently faced criticism for tampering of their products by their delivery boys. The company decided to put a hologram seal on the food packets in order to protect the contents from being tampered with along with a safety warning for the consumers to check the seal on delivery. ....................... concept of marketing has been discussed in this case which is not only performing an important function of communicating with the potential buyer but also promoting its sale. (1) Labelling (2) Product designing and development (3) Branding (4) Packaging



8. Ronit Raj, a marketing manager is a patient of diabetes for which he takes medicines regularly. One day, on his tour to Patna, he met with an accident and was hospitalised. Due to doctors’ negligence a delicate nerve of his right leg was cut rendering him crippled throughout his life. Identify the consumer right that has been violated by the doctors under the Consumer Protection Act, 2019 in the above situation.

Sample Question Papers (1) Right to Choose (3) Right to be Heard

(2) Right to be Informed (4) Right to be Protected

9. Rishu’s friend Devina works as a Finance Manager in Perfect Solutions Ltd. Devina in a meeting with the directors of the company came to know that the firm would soon be declaring a bonus issue which would lead to an increase in the price of shares. On this basis, Devina advised Rishu to purchase the shares of Perfect Solutions Ltd., who thus bought the shares. SEBI can control malpractices like these through which of the following functions:



(1) Protective functions



(2) Regulatory functions



(3) Development functions



(4) All of the above



10. “Bhuvan, who was a vegetarian went to a snack bar for having French fries and later found out that it had non-vegetarian content. Neither the advertisement nor the packing of the product displayed that the product has non-vegetarian content." Which right of consumer is violated ?

(1) Right to Choose

(i) Interview (ii) References check (iii) Preliminary screening (iv) Selection test (1) (iii), (iv), (i), (ii) (2) (iv), (iii), (ii), (i) (3) (i), (ii), (iii), (iv) (4) (ii), (iv), (iii), (i)

15. “Anyone can be called a manager irrespective of the



16. What is the effect of motivation on all the

educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfill in the statement being discussed above: (1) Ethical Code of Conduct (2) Professional Association (3) Restricted Entry (4) Service Motive



(2) Right to be Informed



(3) Right to be Heard



(4) Right to Seek Redressal

(1) The advantage of registering Trade Mark is to get exclusive legal rights for its use and no other firm can use this mark to sell similar goods.



(2) Promotion mix refers to the decisions related to sales promotion tools used by an organisation to achieve its objectives.



(3) Product mix includes activities that are involved in transferring the ownership to customers and to make the product available at the right place at the right time.



(4) None of the above

12. Which of the following stands for SEBI?



(1) Stock and Exchange Board of India



(2) Securities and Exchange Board of India



(3) Securities and Exchange Bank of India



(4) Stock and Exchange Bank of India



13. Which of the following statements is not applicable to the concept of ‘Accountability’?

18. ……………….. principle of management is being

19. Name the function of management which helps in



20. Which of the following statement is false with



21. ............................... implies being answerable for the

the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period. (1) Planning (2) Organising (3) Directing (4) Controlling respect to Planning: (1) It is one of the basic managerial functions (2) Planning is closely connected with creativity and innovation (3) It requires taking decisions (4) None of these





(2) It cannot be denied once authority has been delegated and responsibility has been accepted.





(3) It cannot be delegated.



(4) It flows downward. steps. Arrange the following steps in correct order.

entrepreneur is ________ (1) innovation (2) invention (3) skill (4) creativity



(1) It implies being answerable for the final outcome.

14. Selection is a process which involves a series of

17. The most important function of a modern







employees of an organisation? (1) Invariable (2) Same (3) Variable (4) Uniform

violated if management does not fulfill its promise to increase wages of the workers after the mission is accomplished. (1) Order (2) Equity (3) Discipline (4) Initiative

11. Which of the following statements is incorrect with respect to the various aspects of Marketing Mix?

21



final outcome. (1) Authority (2) Responsibility (3) Accountability (4) None of these

22. Which of the following statements is false with respect to a leader? (1) Leader provides training to his subordinates. (2) A leader maintains personal relations and helps followers in fulfilling their needs. (3) Leader plays a key role in introducing required changes in the organisation. (4) None of the above

22

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

23. Financial planning takes into consideration which



(1) A low Debt Service Coverage Ratio indicates better ability to meet cash commitments and consequently, the company’s potential to increase debt component in its capital structure.

24. ‘It is that function of management which is

of the following: (1) Growth (2) Performance (3) Investments (4) All of these



(2) Use of higher debt increases the cost of equity.

considered as the base of all other functions.’ Identify the function of management stated in the above lines. (1) Planning (2) Controlling



(3) Low interest rates increase a firm’s capacity to employ higher debt.



(4) None of the above

(3) Organising







(4) Staffing

25. _____ type of entrepreneurs utilizes a chance to introduce a new technique or new product.



(1) Innovative entrepreneur



(2) Instigated entrepreneur



(3) Initiative entrepreneur



(4) Fabian entrepreneur



26. ‘The current government initiated Make in India Programme which is good for the manufacturing sector.’

Out of the following, identify the component of Business Environment quoted in the above lines.

(1) Economic (2) Political



(3) Legal (4) Technological



27. Samara Ltd. has Debt Equity ratio of 3:1 whereas Gehlot Ltd. has Debt Equity ratio of 1:1. Name the advantage Samara Ltd. will have over Gehlot Ltd., when the rate of interest is lower than the rate of return on investment of the company.

(1) Trading on equity (2) Low risk

(3) Low cost of equity (4) Greater flexibility



28. The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. Who are the constituents of this market for whom SEBI aims at creating a conducive environment?



(1) Issuers of securities



(2) Investors



(3) Market intermediaries



(4) All of the above



29. ‘The consumer has the right to acquire knowledge

management. Reason (R): Planning is required at all levels of management as well as in all departments of the organisation. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

(1) Both (A) and (R) are true, and (R) is the correct explanation of (1). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (1). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

(4) Right to Choose

30. Which of the following statements is incorrect?

33. Real Tech Builders has to deliver the flats to its buyers for possession on time. Due to this, there is a sudden increase in workload. Therefore, the company needs to arrange workers to work at the sites at a short notice. The source of recruitment which may be used by the company to tap the casual vacancy is:



(1) Direct recruitment



(2) Advertisement



(3) Recommendation of employees



(4) Employment exchange



34. Prateek took his nephew Raman for shopping to ‘Hamleys’ to buy him a toy car for his birthday. Raman was delighted when on payment of the bag, he got a school bag along with the toy car free of cost. Identify which technique of sales promotion is being used by the company.

(1) Right to Seek Redressal (3) Right of Consumer Awareness

32. Assertion (A): Planning is a time-saving process.

Reason (R): The success of an enterprise is possible only when plans are properly drawn up and implemented.

and to be a well-informed consumer throughout life.’ State what type of knowledge is required by the consumer in the above stated ‘Right’. (2) Right to be Heard

31. Assertion (A): Planning is a primary function of



(1) Quantity gift (2) Product combinations



(3) Lucky draw (4) Sampling



35. Which of the following is not a Protective Function performed by SEBI?

Sample Question Papers

(1) Prohibition of fraudulent and unfair trade practices. (2) Conducting research and publishing information useful to all market participants. (3) Undertaking steps for investor protection. (4) Promoting fair practices and code of conduct in securities market.

36. Sumit has been using ‘Smooth Shave’’, a famous shaving cream available in the market. On watching numerous advertisements in the television, he decided to try a new brand of shaving cream. When he went to the near-by store to purchase the same, he saw shaving creams by other producers making similar claims. Hence, he could not make up his mind as to which shaving cream to purchase. Which of the following objection to advertising is being discussed in this case?



(1) Undermines social values



(2) Confuses the buyers



(3) Encourages sale of inferior products



(4) Adds to cost



37. In which of the following external source of recruitment, applicants are introduced by the present employees : (1) Labour Contractors



(2) Recommendations of Employees



(3) Campus Recruitment



(4) Placement Agencies Consultants





(1) Business cycle (2) Financial planning



(3) Capital structure (4) Working capital



41. Which of the following statements is not true



(1) The leader exercises more control by using forces within the group.



(2) The leader encourages subordinates participate in decision making.



(3) The leader gives orders and insists that they are obeyed.



(4) The leader supports subordinates’ opinion.

regarding Democratic Style of Leadership?



and

the

42. “It refers to the right of an individual to command



(1) Accountability (2) Responsibility



(3) Authority (4) None of these



43. ______ can be defined as an attractive project idea which an entrepreneur accepts as a basis for his investment decision



(1) Possibility (2) Business



(3) Opportunity (4) Notion

44. Which of the following statements is true with



(1) It include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc.



(2) It includes forces relating to improvements and innovations.



(3) It includes political conditions such as general stability and peace in the country.



(4) None of the above

Management

38. Management is the process of designing and

(1) groups, independently (2) individuals, in groups



(4) None of the above

39. Pragya bought an iron of reputed brand for ` 1,500 but it caused an electric shock while it was being used. Pragya wants to exercise her ‘Right’. Identify the right under which she can be protected.

(1) Right to Choose

(2) Right to be Informed

(3) Right to be Heard

(4) Right to be Protected

40. Mr. Raghav, Finance manager of Manav InfraTech Pvt. Ltd., prepared a detailed plan of financial needs of the firm in coming six months and the sources from where funds will be acquired to meet out these needs as company is planning to open a new branch in other states of India. Identify the financial concept discussed here:

scientific

45. Which of the following principles of management by Fayol states that there should be one and only one boss for every individual employee?

(3) individuals, independently



respects

respect to political environment?

maintaining an environment in which ................... work together ..................., efficiently and effectively accomplishing selected aims.



and

to

his subordinate and to take action within the scope of his position.” Which element of delegation is being referred to in the above statement?





23

(1) Unity of direction (2) Order (3) Unity of command (4) Division of work

46. Identify the nature of management when it is practised as personal application of existing knowledge to achieve desired results.

(1) Management as a Science (2) Management as an Art (3) Management as a Profession (4) All of the above

I. Read the following text and answer the questions given below: Vinay was the Chief Operating Officer of ‘Easy Solutions Ltd.’, a company providing advanced

24

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES software solutions to Indian Defence Services. They had been carrying on business successfully for the last twelve years and earning enough profits. But from the last one year, they realised that though the business is getting big orders which are being fulfilled on time, even then the revenues kept on decreasing. Vinay was not able to find out where the problem was. He started keeping a close check on the progress of activities as he could sense that something was wrong. He wanted to take some action before any major damage could be done to the business. Vinay appointed a cyber security expert who monitored the company’s processes and found out that the computer operator was deleting the entries from the computers and pocketing the revenues. He was caught and handed over to the police. This created an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees.



47. Which management function proved helpful in creating an atmosphere of order and discipline in the organisation and helped in minimizing dishonest behaviour on the part of the employees?



(1) Planning (2) Organizing



(3) Directing (4) Controlling



48. What did the measurement of performance reveal?



(1) The company was earning enough profits.



(2) Declining revenues despite getting big orders which were being fulfilled on time.



(3) The company was running successfully.



(4) All of the above.



49. What did the analysis by Vinay reveal ?



(1) Nothing was wrong.



(2) The computer operator was deleting the entries from the computers and pocketing the revenues.



(3) Vinay was not able to find out where the problem was.



(4) None of the above.



50. What corrective action did Vinay take?



(1) He did not take any action as no major damage was done.



(2) Computer operator was caught and handed over to the police.



(3) Computer operator was warned with dire consequences.



(4) None of the above. 

Sample Question Papers

SAMPLE

6

Question Paper Maximum Marks : 200 

25

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Your mother purchased a washing machine for ` 10,000 from an authorised dealer of the manufacturer with a verbal guarantee that the machine will be replaced with a new one if any of its parts becomes defective within 3 months from the date of purchase. The motor of the machine was burnt within 15 days of its purchase. On complaining, the seller refused to replace the machine. Name the redressal agency under Consumer Protection Act where your mother can file the complaint.



4. When the stock market is bearish, a company must go for which of the following?



(1) More debt



(2) Less debt



(3) More equity



(4) Equal mix of debt and equity



5. Which of the following steps in the Controlling process state that comparison becomes easier when standards are set in quantitative terms ?

(1) Analysing deviations (2) Measurement of actual performance

(1) District Commission

(3) Comparing actual performance with standards

(2) State Commission

(4) Setting performance standards

(3) National Commission



6. Which of the following statements is true regarding



(1) Communication acts as a basis for coordination.



(2) Communication is basis to an organisation’s existence, right from its birth through its continuing life.



(3) It is a process by which people create and share information with one another in order to reach at a common understanding.



(4) All of the above

‘Communication?

(4) None of above

2. Match the CATEGORY being marketed in Column I with the correct EXAMPLE in Column II. Column I (1) Ideas (2) Experience (3) Events



Column II (i) Film festival (ii) Family Planning (iii) Mountaineering

(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

3. The Securities and Exchange Board of India was established by the Government of India and was given a statutory status in ………………..



(1) 1988 (2) 1992



(3) 1996 (4) 1998



7. Match the ELEMENTS of Delegation in Column I with the corresponding Column II. Column I (a) Authority

EXPLANATION Column II

(i) Being answerable for the final outcome.

in

26



OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

(b) Responsibility

(ii) Right to take decisions inherent in a managerial position.

(c) Accountability

(iii) Obligation of a subordinate to perform the assigned duty properly.

(1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (iii), (i), (ii) (4) (ii), (i), (iii)

8. Match the CHARACTERISTICS of management in

Column I with their correct EXPLANATIONS in Column II: Column I

Column II

(a) Goal-oriented process

(i) Management is a complex activity involving management of people, work and operations.

(b) Group activity

(ii) Some aims and objectives are the basic reason for existence of an organization.

(c) Multidimensional

(1) (ii), (i), (iii) (3) (iii), (ii), (i)

(iii) Diverse individuals with different needs work together to fulfill the common organizational goal. (2) (ii), (iii), (i) (4) (iii), (i), (ii)



9. “Due to enforcement of Euro-IV emission norms,



an automobile company had to phase out one of its model.” Identify the dimension of environment highlighted in the given statement. (1) Technological (2) Political (3) Legal (4) Economic



10. Which of the following type of plan provides the



broad contours of an organisation’s business: (1) Strategy (2) Objective (3) Policy (4) Procedure

11. ………………… ensures that the heads of separate

business units in the organisation are responsible for profit or loss of their unit and have authority over it. (1) Span of management (2) Divisional structure (3) Functional structure (4) Hierarchy of authority

12. An important project at AMB consultants is running behind schedule by a month. This has upset their clients and might affect the reputation of the company in the long run. No managerial action like assigning more workers, equipment or giving overtime has been able to solve the problem. What managerial action may now be taken by the company to avoid such a situation from arising in future?

(1) Revise the schedule (2) Assigning additional workers and equipment to the project (3) Get permission for further overtime work (4) Both (2) and (3)

13. Which of the following nature of management



14. Even though the political conditions vary from



15. ____________is a statement of expected results

involves skillful and personal application of existing knowledge to achieve desired results? (1) Science (2) Art (3) Profession (4) None of these

country to country, they impact the sentiment of an investor in the business, if the instability of the political conditions cause uncertainty and make it difficult for him to predict the future. Which feature of the business environment is being highlighted in the above statement? (1) Specific and general forces (2) Dynamic nature (3) Relativity (4) All the above



expressed in numerical terms. (1) Method (2) Policy (3) Budget (4) Rule

16. When the stock market is bullish, a company must go for which of the following? (1) More debt (2) More equity (3) Less equity (4) Equal mix of debt and equity

17. A car manufacturer offers to sell a particular brand



of car at a discount of ` 10,000 for a limited period. Identify the sales promotion activity in the above example. (1) Refund (2) Product combinations (3) Rebate (4) Discount



18. Under The Consumer Protection Act, 2019,



19. State the first development bank of the country



20. Controlling means ensuring that activities



……………….. can be approached to file a complaint by the legal heir of a deceased consumer if compensation claimed is ` 3 crores? A (1) District Commission (2) State Commission (3) National Commission (4) All of the above (1) ICICI (2) IDBI (3) SFC (4) IFCI

in an organisation are performed as per the _____________. (1) Plans (2) Goals (3) Resources (4) None of these

Sample Question Papers

21. Match the QUALITIES of a good leader in Column I with their correct EXPLANATIONS in Column II Column I (a)

Initiative

(b) Social skills

(c)

Decisiveness



28. Match the NATURE of management in Column I with its correct EXPLANATION in Column II : Column I

Column II (i)

Being firm and not changing opinions frequently.

(ii)

Not waiting for opportunities to come but rather grabbing the opportunity and using it to the advantage of the organisation.

(iii) Capacity to clearly explain the ideas and make the people understand them.

27

(1)

Art

(2)

Profession

(3)

Science

Column II (i) Management is based on a systematic body of knowledge comprising welldefined principles based on a variety of business situations. (ii) Principles of management are based on repeated experimentation and observation in different types of organisations.



(1) (i), (iii), (iv), (ii) (2) (iv), (iii), (ii), (i)

(iii) Manager applies the acquired knowledge in a personalized and skillful manner. (1) (ii), (i), (iii) (2) (ii), (iii), (i) (3) (iii), (ii), (i) (4) (iii), (i), (ii)



(3) (iv), (ii), (i), (iii)



(d) Communication (iv) Being friendly with his skills colleagues and followers.



(4) (ii), (iv), (i), (iii)

22. Which of the following type of plan reflects a managerial decision that a certain action must or must not be taken:



(1) Method

(2) Rule



(3) Programme

(4) Procedure



(1) Universal applicability

for operations by concerned workers. Whose work is described by this statement under functional foremanship? (1) Gang Boss (2) Repair Boss



(3) Route Clerk (4) Speed Boss



(2) General guidelines

24. Full form of IFCI

(1) Industrial finance corporation of India. (2) Institutional finance corporation of India. (3) Industrial funding corporation of India. (4) Indian finance corporation and institution. 25. Which type of organisational structure is the most suitable when the size of the organisation is large and is producing one line of product? (1) Functional (2) Divisional (3) Both (1) and (2) (4) None of these 26. ______ is an individual who initiates, creates and manages a new business. (1) A leader (2) A manager (3) A professional (4) An entrepreneur 27. Which of the following activities are associated with ‘Mental Revolution’ on the part of management and workers? (1) Trade unions not going on strike. (2) Management sharing the gains of the company with the workers. (3) Workers working hard and be willing to embrace change for the good of the company. (4) All of the above

MANAGEMENT in Column I with their correct EXPLANATION in Column II. Column I

23. Amrita keeps machines, materials, tools, etc. ready



29. Match the NATURE of PRINCIPLES OF

Column II (i) Direct but do not provide readymade, straitjacket solutions (ii) Not rigid prescriptions, can be modified as per the situation

(3) Flexible

(iii) Aim at influencing behaviour of human beings

(4) Behavioural

(iv) Applicable to all types of organizations



(1) (i), (ii), (iii), (iv) (2) (iii), (ii), (iv), (i)



(3) (iii), (iv), (i), (ii) (4) (iv), (i), (ii), (iii)



30. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.

(1) Planning

(2) Organising

(3) Directing

(4) Controlling



31. ................... is the process of converting encoded symbols of the sender.



(1) Encoding (2) Decoding



(3) Media (4) All of these



32. 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. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A).

28

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

(2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

33. Assertion (A): Organising provides a clear



34. Of the following sources of funds, …………… are

description of jobs and related duties. Reason (R): Organising stimulates creativity amongst the managers. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true. not Borrowed Funds.

(1) Loans (2) Retained earnings



(3) Public deposits (4) Debentures



35. Which of the following is applicable to a ‘Standing

Plan’: (1) Is developed once (2) Is modified from time-to-time (3) Used for activities that occur regularly (4) All the above 36. Management is ................. . (1) A Science (2) An Art (3) Both a science and an art (4) None of the above

37. “The increase in the demand for many ayurvedic

medicines, health products and services in the past few months, is related to the need for building immunity and an increased awareness for health care due to the spread of Corona Virus.” Identify the feature of business environment being described above. (1) Specific and general forces (2) Inter-relatedness (3) Relativity (4) None of the above

38. Why did F.W. Taylor propose eight specialists under



(1) Because all qualities like intelligence, education, tact, grit, manual dexterity, energy, etc., could not be found in a single person.



(2) Because the number of foremen or supervisors in a factory set-up is very large.



(3) Because the number of workers in a factory setup is very large.



(4) All of the above.

Functional Foremanship?



39. Which of the following is true regarding the

different types of plans that exist: (1) A budget is a statement of expenses, revenue and income for a specified period.

(2) Policy provides broad contours referring to future decisions defining the organisation’s direction and scope in the long run. (3) Single-use plans are designed to ensure that internal operations of an organisation run smoothly. (4) A standing plan is developed to achieve specific objectives so non-recurring in nature and not likely to be repeated in future. 40. Which of the following is/are the ‘Developmental Functions’ of Securities and Exchange Board of India? (1) It trains the intermediaries of securities market (2) It conducts research and publishes information useful to all market participants (3) It undertakes measures to develop the capital markets by adapting a flexible approach. (4) All of the above 41. When a leader is a role model to others regarding ethics and values, he is said to possess the quality of ................. . (1) Initiative (2) Integrity (3) Self-confidence (4) Decisiveness 42. That part of a brand which can be recognised but which is not utterable is called ....................... . (1) Brand Mark (2) Trade Mark (3) Brand Name (4) All of these 43. Of the following sources of funds, ...................... are Owner’s Funds. (1) Equity share capital (2) Preference share capital (3) Reserves and surpluses (4) All of the above 44. Hemu’s mother gifted her shares of a large IT company. The securities were in physical form. She has a bank account but does not possess any other forms of security. She wanted to sell the shares and approached a registered broker. Which of the following is a mandatory detail which she needs to provide the broker? (1) Permanent Account Number (2) Educational qualification and occupation. (3) Residential status (4) None of the above 45. ‘Ultimate Televisions Ltd.’ is offering its 50” TV sets at a discount of ` 10,000 for a period of two months beginning from 15th February, 2021. Which of the following sales promotion activity is being used by ‘Ultimate Televisions Ltd.’ : (1) Discount (2) Refunds (3) Rebate (4) Quantity gift

46. Mr. X purchased a car for ` 15 lakh but he is not

satisfied with the quality and performance of the car. The company of the car did not provide any remedy to him. Under which authority of

Sample Question Papers Consumer Protection Act, 2019 can he file an appeal ? (1) District Commission (2) State Commission (3) National Commission (4) None of these I. Read the following text and answer the following questions on the basis of the same: Mr. Vikas Goel is an H.R. Manager of “Sanduja Furniture Private Limited.” At the beginning of the new year he anticipated that the company will need 30 new additional persons to fill up different vacancies. He gave an advertisement in the newspaper inviting applications for filling up different vacant posts. As many as 120 applications were received. The same were scrutinized. Out of these, conditions of 15 applicants were not acceptable to the company. Letters of regret, giving reasons, were sent to them. Remaining candidates were called for preliminary interview. The candidates called for were asked to fill up blank application forms. Thereafter, they were given four tests. The objective of the first test was to find out how much interest the applicant takes in his work. The objective of the second test was to find out ‘specialization’ of the applicant in any particular area. Third test aimed at making sure whether the applicant was capable of learning through training or not.

29

The purpose of the fourth test was to find out how much capability a person has to mix-up with other persons, and whether he can influence other persons and get influenced by them.

47. “The purpose of the fourth test was too find out



how much capability a person has to mix-up with other persons, and whether he can influence other persons and get influenced by them.” Which tests is indicated in this situation? (1) Personality Test (2) Intelligent Test (3) Aptitude Test (4) Trade Test



48. “At the beginning of the new year he anticipated



that the company will need 30 new additional persons to fill up different vacancies.” Identify the first step of staffing. (1) Placement and Orientation (2) Training and Development (3) Recruitment (4) Estimating Manpower Requirement



49. From the given lines, ‘Out of these, conditions of



15 applicants were not acceptable to the company. Letters of regret, giving reasons, were sent to them’. Which aspect of staffing is highlighted in the statement? (1) Recruitment (2) Selection (3) Training (4) Education



50. The applicants were given four tests like intelligent



test to interest test after filling up blank application form. Identify which step of selection process was followed by the management. (1) Selection decision (2) Selection test (3) Job offer (4) Medical examination 

30

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SAMPLE

Question Paper Maximum Marks : 200 

7

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Management is a/an ........... process as it is an ongoing and never-ending process.

(1) Continuous

(2) Non-continuous

(3) Frequent (4) Alter 2. Management principles are very _____________ whereas pure science principles are rigid. (1) Flexible (2) Contingent (3) Dependent (4) Absolute 3. The term ‘Business Environment’ means the sum total of: (1) All individuals. (2) Institutions. (3) Other forces that are outside the control of a business enterprise. (4) All of the above 4. ‘It involves application of high order thinking skills and intellectual faculties, involving vision and foresightedness to decide the things to be done in the future.’ Which feature of Planning is stated in the above line? U

(3) It is wider than training. (4) All of the above 6. Which of the following statements is true about directing? (1) Directing is necessary at planning stage. (2) Directing is needed at every level of management in each department. (3) Directing is initiated at lower level of management. (4) Directing is the least important function of management. 7. An effort to control everything may end up in controlling nothing is related to: (1) Critical Point Control (2) Management by Exception (3) Management by Information (4) Key Result Areas 8. Which of the following is not an objective of financial planning?



(1) To ensure availability of funds whenever required.





(2) To choose the best investment and financing alternatives by focusing on their costs and benefits. (3) To see that the firm does not raise resources unnecessarily. (4) All are the objectives of financial planning.



9. _______ is not considered as one of the building

(1) Planning is futuristic (2) Planning is pervasive (3) Planning is a mental exercise (4) None

5. Which of the following is true about development ? (1) It increases executive’s professional talent. (2) It helps in tackling the complex management working problems.



blocks of the model entrepreneur. (1) Technical skills (2) Management competencies

Sample Question Papers (3) Business awareness (4) Personal attributes

10. In which channel, manufactures sells the goods



directly to the customer? (1) Direct channel (2) One level channel (3) Two level channel (4) Three level channel



11. ......................... is the time span between the receipt



of raw material and their conversion into finished goods. (1) Production cycle (2) Business cycle (3) Both (1) and (2) (4) None of these



12. Which quality certification mark is used to ensure



13. Decisions taken on the behalf of the enterprise by

safety of electrical goods? (1) Hallmark (2) AGMARK (3) ISI (4) FPO



for soft drink companies.” Identify the feature of business environment: (1) Relativity (2) Complexity (3) Uncertainty (4) Dynamic

19. What should be the ‘focus point’ for a manager



20. Name the process of working with and through



21. Match the ELEMENTS of Directing in Column I

while controlling, as controlling at each and every step is not possible? (1) Analysing deviations (2) Measurement of actual performance (3) Comparing actual performance with standards (4) Setting performance standards

others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment. (1) Management (2) Planning (3) Organising (4) Controlling

an entrepreneur are known as _______ (1) Organisational decisions (2) Personal decisions (3) Routine decisions (4) Strategic decisions

with their correct EXPLANATION in Column II Column I

14. Which concept of marketing emphasise on

availability and affordability of the product? (1) Marketing concept (2) Product concept (3) Sales concept (4) Production concept



16. ‘Planning is required in all organisations, at all



17. The quality of production is not as per standards.

levels and in all departments.’ .............. feature of Planning is stated in the above statement ? (1) Planning is futuristic (2) Planning is pervasive (3) Planning is a mental exercise (4) None



On investigation, it was observed that most of the workers were not fully aware of the proper operation of the machinery. What could be the way to improve the accuracy ? (1) Training (2) Development (3) Both training and development (4) Neither training nor development



18. “The shift of demand from soft drinks to juices

is an opportunity for juice companies and threat



Column II

(1)

Supervision

(i)

Process of influencing people to strive willingly for group objectives.

(2)

Motivation

(ii)

Process of stimulating people to action to accomplish desired goals of organisation.

(3)

Leadership

(iii) Process of exchange of ideas between or among persons and create understanding.

(4)

Communication

(iv) Process of overseeing the work.

15. Which of the following does not apply to Principles

of Management: (1) Applicable in large firms (2) Formed by practice and experience of managers (3) Flexible (4) Contingent

31

(1) (i), (iii), (iv), (ii) (2) (ii), (iii), (i), (iv) (3) (iv), (ii), (i), (iii) (4) (ii), (i), (iii), (iv)



22. Which of the following statement is false with



23. R-Ox Ltd. wants to increase their market share by

respect to principles of management: (1) The principles of management are formed by experience and collective wisdom of managers as well as experimentation. (2) The principles of management are not rigid prescriptions, which have to be followed absolutely. (3) Management principles aim at influencing behaviour of human beings. (4) The application of principles of management is not possible in contingent situations. 4.5% in next two years. It spent a lot of money to hire specialized people for framing their plans, collecting important facts about environment who took lot of time to frame plans for the company. The competition has started increasing, and it is not able to beat its competitors because it has

32

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

already spent a huge amount. The plan failed and company suffered a huge loss. Identify the limitation of planning stated in the given case : (1) Planning involves huge cost (2) Planning may not work in dynamic environment (3) Planning is a time-consuming process (4) All of the above

24. "The components of business environment keep on

changing due to changes in various circumstances." This shows that business environment is ……………….. (1) Dynamic (2) Uncertain (3) Complex (4) Relative

25. Solar Horse Ltd. decided to import new hi-tech



machines from Korea to decrease the cost of production and increase quality of work. It decided to give one month training to 5 supervisors and 10 workers to provide technical knowledge and skills to operate those machines. For this, dummy models of machinery were provided to them to practice on it. Identify the type of training provided by Soler Horse Ltd. (1) Internship Training (2) Apprenticeship Training (3) Induction Training (4) Vestibule Training



26. Which of the following statements is true regarding



Laissez Faire Style of Leadership? (1) The leader gives complete freedom to the subordinates. (2) The leader gives orders and insists that they are obeyed. (3) The leader does not change or wish to be contradicted. (4) All are true.



27. “Employee know well in advance what they are



expected to do and what are the standards of performance on the basis of which they will be appraised, which in turn help them to give better performance.” Which importance of controlling is highlighted above? (1) Facilitating coordination in action (2) Making efficient use of resources (3) Accomplishing organisational goals (4) Improves employee motivation

28. Which of the following feature of management

involved in managing an enterprise is common to all organisations whether economic, social or political : (1) Management is a goal-oriented process (2) Management is all pervasive (3) Management is a continuous process (4) Management is a group activity

29. ……………….. is the process of dividing work into manageable activities and then grouping the

activities which are similar in nature. (1) Coordination (2) Departmentalisation (3) Organisation structure (4) Delegation of authority

30. Net working capital may be defined as the:



31. Assertion (A): Certificates of Deposit (CD) are

(1) Excess of current assets over current liabilities (2) Excess of current liabilities over current assets (3) Both (1) and (2) (4) None of the above

secured, negotiable, long-term instruments in bearer form. Reason (R): A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit cheaper in comparison as banks raise funds from these sources. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true. 32. Assertion (A): A commercial bill is a bill of exchange used to finance the working capital requirements of business firms. Reason (R): Commercial bill is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true. 33. Name the quality mark used for food products. (1) AGMARK (2) FPO (3) Hallmark (4) ISI

34. Which one is not an element of marketing mix?



35. Agricultural products use a quality certification



36. A cardboard box consisting of 10 packets of 1 Kg



37. Fixed capital is financed through:

(1) Product (2) Promotion (3) Protection of consumer (4) Place

mark. Name the mark. (1) ISI (2) FPO (3) AGMARK (4) Hallmark sugar, is an example of: (1) Primary packaging (2) Secondary packaging (3) Transportation packaging (4) None of the above

Sample Question Papers

(1) Equity shares (2) Preference shares (3) Debentures (4) All of these



38. "Many business firms have set up their own



consumer service and grievance cells." Which right is being highlighted in the given statement? (1) Right to Consumer Education (2) Right to be informed (3) Right to seek Redressal (4) Right to be heard



39. Which is the apex statutory body of capital market



to which customers can complain to redress their grievances ? (1) SEBI (2) CDSL (3) NSE (4) BSE



40. Planning means to look ahead while Controlling

means to : (1) Look straight (3) Look side

(2) Look back (4) None of the above

41. Which of the following statements is incorrect



regarding Motivation? (1) It is the process of stimulating subordinates to act in a desired manner to achieve certain organisational goals. (2) It produces goal-directed behaviour. (3) It is an external feeling of an individual (4) It is mainly based on needs of individuals.



42. Graphical representation of the various activity and





event relating to a project is known as ________ (1) Network (2) Scheduling technique (3) Logical Model (4) Network Diagram



43. Meena, a proof reader in Akash Publications, has

been given a target of reading at least 40 pages per day. She has a habit of doing things differently. While doing her work, an idea struck her that a summary of a chapter in the form of a map where all the concepts related to that chapter would be interlinked, should be given in starting of each chapter. It will give students a gist of chapter as well as provide a competitive edge over other publishers. But instead of appreciating her idea, her immediate boss scolded her and asked her to complete the work as per prescribed format. Out of the following, identify the limitation of planning stated in above paragraph : (1) Planning reduces creativity (2) Planning involves huge cost (3) Planning is a time-consuming process (4) Planning does not work in dynamic environment 44. Which of the following statement is incorrect: (1) Business environment is a relative concept. (2) Business environment is the sum total of all things internal to business firms.

33

(3) Opportunities refer to the positive internal trends or changes that will help a firm to improve its performance. (4) All are correct 45. The principles of management are significant because of : (1) Providing managers with useful insights into reality (2) Optimum utilization of resources and effective administration (3) Meeting changing environment requirements (4) All of the above 46. ................... is used extensively for all types of activities and mainly for taking charge of different activities in any enterprise? (1) Planning (2) Management (3) Coordination (4) Staffing I. Read the following text and answer the questions given below: ‘Pappu Sweets Makers’ is a sweets making company which has turnover in crores. In order to manage the work in the organisation, the departments have been created on the basis of functions. Examine the following situations of this organisation and give answers accordingly: Situation 1: It is expected that employees who are performing similar tasks work under the same department. So the company now has HR, Marketing and Finance departments. The division is based on specific functions. Situation 2: There are similarities in the tasks performed within the same department. Situation 3: The profit is increasing month by month due to the success of this structure of the organisation. Situation 4: There has been minimum duplication of efforts as the same department is taking care of single function.

47. Which type of organisation structure is discussed in the above case? (1) Functional (2) Divisional (3) Linear (4) None of these



48. What will be the outcome of Situation 2 ?



49. Why do you think the profit is increasing as given



(1) Increase in control and coordination (2) Quick decision-making (3) More initiatives (4) Flexibility in Situation 3? (1) Due to product specialisation (2) Due to managerial and operational efficiency (3) Due to flexibility (4) Due to no repetition of tasks

50. What will be the result of Situation 4? (1) Reduction in cost (2) Increase in cost (3) Stability to the organization (4) None of the above



34

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SAMPLE

Question Paper Maximum Marks : 200 

8

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Principles of management provide managers with

useful insights into reality. Which of the following statements explain this appropriately: (1) Adds to managerial knowledge (2) Enables managers to learn from past mistakes (3) Helps managers conserve time by solving recurring problems quickly (4) All the above

2. Match the FEATURES of Business Environment in

Column I with the appropriate EXPLANATION in Column II. Column I

Column II

(i)

Complexity

Very difficult to predict future happenings .

(ii)

Specific forces

Easier to understand in parts but difficult to grasp in its totality.

(iii)

Affect individual enterprises directly and immediately. (1) (ii), (iii), (i) (2) (iii), (ii), (i) (3) (ii), (i), (iii) (4) (iii), (i), (ii)

Uncertainty

3. McDonald's keeps introducing new variety of

Burgers in its menu. Which characteristic of management is highlighted in this? (1) Management is multi-dimensional (2) Management is dynamic (3) Management is pervasive (4) Management is goal-oriented

4. Without ……………….. function of Management, the controlling function is not possible.

(1) Directing (2) Staffing (3) Organising (4) Planning

5. Which of the following importance of organising reduces the workload as well as enhances productivity:



(1) Clarity in working relationships

(2) Benefits of specialisation (3) Adaptation to change (4) Effective administration

6. Which of the following is correct about Aptitude Tests?



(1) Measures individual’s potential for learning new skills



(2) Measures person’s capacity to develop



(3) Good index of a person’s future success score



(4) All of the above



7. "Consumer has a right to acquire knowledge". Identify the right.



(1) Right to be informed

(2) Right to Choose

(3) Right to Consumer Education

(4) Right to seek Redressal

8. A manufactural sells the goods to a retailer and

retailer sells the goods to Customer Identify the type of channel of distribution. (1) Direct channel (2) One level channel (3) Two level channel (4) Three level channel

Sample Question Papers

9. Controlling involves: (1) Comparison of actual performance. (2) Checking deviations (3) Taking corrective actions (4) All the above

and

standard

10. The organisation/institution which provides scope for speculation is: (1) Stock exchange (2) SEBI (3) Brokers (4) None of the above

11. A complaint can to be made to the State

Commission, when the claim value is: (1) More than `50 lakhs (2) Less than `50 lakhs (3) More than `50 lakhs, but less than `2 crore (4) More than `2 crore

12. Which channel of distribution does not include indirect channels? (1) Zero Level (2) One level (3) Two level (4) Three level

13. Which money market instrument is used to finance

credit sales of firms? (1) Commercial Bill (2) Commercial Paper (3) Certificate of Deposit (4) Call Money

14. ................... is used extensively for all types of

activities and mainly for taking charge of different activities in any enterprise. (1) Planning (2) Management (3) Coordination (4) Staffing

15. Mr. Saxam, production manager of Creative



Concepts, discusses with his staff about the new export order. All the staff members unanimously agree that they all will work together to do overtime to complete the order and meet the deadline. Mr. Saxam is following ................... Leadership Style. (1) Democratic (2) Autocratic (3) Authoritative (4) Laissez Faire



16. ____ debt-equity ratio is preferred by the



commercial banker over the years as it indicates financial strength of a unit (1) Declining (2) Increasing (3) Stable (4) Fluctuating

17. Management

principles are contingent or dependent upon the situations prevailing in the organization. Which is the correct explanation associated with this statement: (1) Application of principles is suitable in similar situations in a large number of cases

35

(2) Application of principles has to be changed as per requirements (3) Principles of management can be modified (4) None of the above

18. “Even after opening up of the Indian economy in



19. "Management is a force that cannot be seen but its

1991 foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India, which created a negative impact on business.” Identify the dimension of the business environment which led to creation of the negative impact on business. (1) Social Environment (2) Technological Environment (3) Political Environment (4) Legal Environment presence can be felt in the way the organisation functions.'' Which feature has been explained in this statement of Management? (1) Pervasive (2) Dynamic (3) Multi-dimensional (4) Intangible

20. “Once a plan is formed by the top management



21. Why accurate cause and effect relationship cannot



22. Directing is initiated at __________ level of



23. Which of the following dimensions of Business

and is conveyed to the whole team, it is very difficult to alter it.” Which limitation of planning is being indicated in the given statement? (1) Planning leads to rigidity (2) Planning is time-consuming (3) Planning reduces creativity (4) Planning does not guarantee success be established by principles of management? (1) Because they mainly apply to human behaviour (2) Because real life, situations are not identical (3) Both (1) and (2) (4) Neither (1) nor (2) management. (1) Lower (2) Middle (3) Top (4) All of the above

Environment includes legislations passed by the Government administrative orders issued by government authorities: (1) Technological Environment (2) Social Environment (3) Legal Environment (4) Economic Environment 24. Which of the following is true regarding Promotion? (1) Involves more pay (2) Involves higher responsibility (3) Gives job satisfaction (4) All of the above

36

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

25. Which of the following input resources are required



by management to complete a task effectively and efficiently: (1) Money (2) Materials (3) Manpower (4) All the above



26. Which of the following importance of organising stimulates creativity amongst the managers : (1) Development of personnel (2) Optimum utilization of resources (3) Expansion and growth (4) None of these



27. Match the FEATURES of Planning in Column I with the appropriate EXPLANATION in Column II. Column I (i)

(ii)

(iii)

Mental exercise

Futuristic

Continuous

(1) (ii), (iii), (i) (3) (ii), (i), (iii)

Column II Involves looking ahead and is regarded as a forward looking function.



33. Assertion (A): The design of the product



34. Name the right, which require manufacture to

contributes to making the product attractive to the target customers. Reason (R): Customer support services are very effective in bringing repeat sales from the customers and developing brand loyalty for a product. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true. provide information like ingredients, date of manufacture, price, quantity, directions for use, etc. on the product.



(1) Right to Safety

An intellectual activity of thinking rather than doing.



(2) Right to be informed



(3) Right to Choose

Need for a new plan on the basis of new requirements and future conditions. (2) (iii), (ii), (i) (4) (iii), (i), (ii)



28. Corrective action is a part of: (1) Planning (2) Organising (3) Controlling (4) All of the above

(3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

29. Which instrument of money market is generally



(4) Right to Consumer Education

35. Goods or services reach the market with the help of _____

(1) Marketing channels (2) Multilevel (3) Monopolies (4) Multiplication

36. Under which of the following function of management, employees are guided and inspired:

(1) Directing (2) Planning (3) Controlling (4) Organizing

37. Which market directly contributes to capital formation?



used for inter-bank transactions? (1) Treasury Bill (2) Commercial Paper (3) Call Money (4) Commercial Bill



(1) Money market (2) Capital market



(3) Primary market (4) Secondary market



30. Planning is deciding in advance, what to do and



38. Sandeep purchased a packet of biscuits from a



how to do. The first step of planning process is : (1) Setting objectives (2) Follow up (3) Implementation of plan (4) Developing premises

31. Control is exercised: (1) When something goes wrong (2) When efficiency is to be improved (3) Regularly (4) When the Management desires

32. Assertion (A): Personal selling plays a very

important role in the introduction stage of a new product. Reason (R): Personal selling helps in persuading customers about the merits of the product. (1) Both (A) and (R) are true, and (R) is the correct explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

nearby shop. He observed that the ingredients given on the label were not legible. He complained about it to the customer care of the company. The company sent a written apology besides stating that it will be ensured that the existing packets in the market will be withdrawn with immediate effect and new packets with legible labels will be made available. Which consumer right did Sandeep exercise? (1) Right to be informed (2) Right to be heard (3) Both (1) and (2) (4) Neither (1) nor (2)

39. What should be the ‘focus point’ for a manager while controlling, as controlling at each and every step is not possible?

(1) Special area (2) Key result area (3) Normal area (4) None of these

Sample Question Papers

40. Which of the following is not a benefit of Organising :

(1) Clarity in working relationship (2) Adaptation to change (3) Expansion and growth (4) Identification personnel

and

obtaining

competitive



41. Management is concerned with which of the



42. Which of the following is not an element of social



43. Which of the following is not the feature of

following : (1) Doing the right task (2) Completing activities and achieving goals (3) Considering the cost benefit (4) All the above environment: (1) Birth and death rate (2) Constitution of the country (3) Population shifts (4) Life expectancy

Planning: (1) Planning provides direction (2) Planning involves decision-making (3) Planning promotes innovative ideas (4) Planning may not work in a dynamic environment







44. Which of the following statements is incorrect ? (1) When jobs are simple, easy to learn and influenced to only a small degree by technological changes, there is little need for employees to upgrade or alter their skills. (2) Training and development help only the organisation and not the individual. (3) Training attempts to improve their performance on the current job or prepare them for any intended job. (4) Development is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased.

45. _______ refers to the time period between placing

an order its receipts in stock. (1) Lead time (2) Carrying time (3) Shortage time (4) Over time

37

46. How are the Management principles derived? (1) Observation (2) Experimentation (3) Personal experiences (4) All the above I. Read the following text and answer the following questions on the basis of the same: Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of ` 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax-deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.

47. Identify the concept of Financial Management as advised by Mr. Ghosh in the above situation. (1) Capital Budgeting (2) Capital Structure (3) Dividend Decision (4) Working Capital Decision

48. In the above case Mr. Ghosh suggested to raised



more funds from debt. Higher debt-equity ratio results in: (1) Lower financial risk (2) Higher degree of operating risk (3) Higher degree of financial risk (4) Higher earning of profit



49. “Mr. T. Ghosh who advised him about the



judicious mix of equity (40%) and Debt (60%).” The proportion of debt in the overall capital is called .................... . (1) Working Capital (2) Financial Leverage (3) Total Assets (4) None of these



50. Employ more of cheaper debt may enhance the



EPS. Such practice is called: (1) Equity Trading (2) Financial Leverage (3) Investment Decision (4) Trading on Equity



38

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SAMPLE

Question Paper Maximum Marks : 200 

9

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Gang plank is a term associated with which

principle of Fayol. (1) Equity (2) Order (3) Scalar Chain (4) Initiative

2. Which of the following statements is true for

management as a science: (1) Existence of theoretical knowledge (2) Based on practice and creativity (3) Principles based on experimentation (4) Professional association

3. Which of the following is true with respect to the

step ‘developing premises’ under the planning process: (1) Base material for assumptions can be in the form of forecasts, existing plans or any past information about policies. (2) Only a few managers are required to be familiar with and use the same assumptions. (3) Assumptions need not necessarily be same for all. (4) All the above

4. An IT company currently employing 5,000

people, plans to expand its business through diversification. It aims to become a global leader. To achieve this goal, it has started shifting to a decentralised management system from a centralized one. Thus, ………………. function of management is being performed by the company to become a decentralised company. (1) Directing (2) Staffing (3) Organising (4) Planning

5. Which of the following is not the element of Directing?

(1) Delegation (2) Leadership (3) Motivation (4) Communication 6. Unemployment can be described as ____ (1) The number of people who voluntarily choose not to work. (2) The number of people who are jobless and are actively seeking work. (3) The number of people who are not actively seeking work. (4) The number of people actively seeking work who find work.

7. Zakira Ltd. wants to invest in treasury bills issued



8. Which of the following statement is false regarding



9. Samaira went to a free eye-camp and got her eye

by RBI. What will be the minimum amount to be invested in Treasury Bill? (1) ` 25,000 (2) ` 20,000 (3) ` 50,000 (4) ` 1,00,000

financial management? (1) Aims at ensuring availability of enough funds whenever required. (2) Aims at reducing the cost of funds procured. (3) Is concerned with optimal procurement as well as usage of finance. (4) Facilitates price discovery for securities of company. treatment done for ‘glaucoma’. But the treatment has resulted in consistent pain and discomfort in her eyes forcing her to seek further medical attention. Samaira can file a complaint with ……………….. under Consumer Protection Act. (1) District Commission (2) State Commission

Sample Question Papers (3) National Commission (4) None of above

10. In order to get feedback about its recently

launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited: (1) Standardisation (2) Product Designing (3) Customer support service (4) Gathering and analysing market information 11. A company wants to replace manual production technique with mechanised techniques. Labour unions are resisting this change. Which function of management will help in the introduction of this change : (1) Planning (2) Organising (3) Controlling (4) Directing 12. The foremost objective of financial management is: (1) Maximisation of market share (2) Maximisation of shareholders' wealth (3) Maintenance of liquidity (4) Profit maximisation

13. ________________ is short-term finance repayable

on demand, with a maturity period of one day to fifteen days. (1) Call Money (2) Treasury Bill (3) Commercial Paper (4) Commercial Bill

(2) personal values

(3) pull influences

(4) All the above



15. Match the STEPS of Planning process in Column I with the appropriate SEQUENCE in Column II. Column I

Column II



(1) Simplifies the process of selection and placement.



(2) Employees are motivated to improve their performance.



(3) This is a more reliable way of recruitment.



Directing : (2) Directing is needed at every level of management in each department. (3) Directing is initiated at lower level of management. (4) Directing is the least important function of management.

Out of the following, identify the component of Business Environment quoted in the above lines: (1) Economic (2) Political (3) Legal (4) Technological

(1) Ethical Code of Conduct (2) Professional Association (3) Restricted Entry (4) Service Motive

22. Which type of plan is time bound and linked with



23. Which of the following is true regarding Transfers?

measurable outcomes? (1) Objective (2) Budget (3) Both (1) and (2) (4) None of the above



(1) Involves shifting of an employee from one job to another. (2) Involves shifting of an employee from one department to another or from one shift to another. (3) There is no substantive change in the responsibilities and status of the employee. (4) All of the above



24. The money market is a market for short-term funds

(ii)

Implementing the plan

First step



Evaluating alternative Sixth step courses (1) (iii), (ii), (i) (2) (ii), (i), (iii) (3) (ii), (iii), (i) (4) (iii), (i), (ii)



(iii)



17. ______ can motivate the entrepreneurs at its best.

21. “Anyone can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfill in the statement being discussed above:

Fourth step

predetermined specifications, which helps in achieving uniformity and consistency in the output. (1) Standardisation (2) Packaging (3) Labelling (4) Grading

20. ‘The current government initiated Make in India Programme which is good for the manufacturing sector.’

Setting Objectives

16. __________ refers to producing goods of

(4) All of the above

19. Which of the following statements is true about

(1) Directing is necessary at planning stage.

(i)



18. Which of the following statements is true with respect to internal source of recruitment?

14. In a cotton textile mill, various tasks viz. Spinning,

weaving, sizing, bleaching, etc. Were divided to different groups of persons. Identify the principle of management stated here: (1) Unity of command (2) Division of work (3) Stability of personnel (4) Unity of direction

(1) money

39

which deals in monetary assets whose period of maturity is: (1) Upto one year (2) Upto six months (3) Upto three months (4) None of these

25. For optimal procurement of funds, a finance manager identifies different available sources

40

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

and compares those items in terms of cost and associated risks. Identify concept highlighted in the above lines. (1) Financial management (2) Financial decisions (3) Working capital (4) None of these 26. A consumer has which of the following? (1) Only rights (2) Only responsibilities (3) Either rights or responsibilities (4) Both rights and responsibilities

27. Which of the following are considered as the pillars

of marketing? (1) Packaging (2) Labelling (3) Both (1) and (2) (4) None of these

28. Directing is broadly grouped into how many categories which are known as the elements of directing?

(1) Two (2) Three (3) Four (4) Five

29. Which of the following is not related to ‘Organising as a Process’ :

(1) Initiates implementation of plans. (2) Provides framework for performing managerial and operating tasks. (3) Clarifies jobs and working relationship. (4) Effectively deploys resources.

30. Which of the following functions of management helps in building customer’s loyalty and in promoting its sale?



(1) Promotion (2) Branding

(3) Pricing of Products (4) Grading

31. Assertion (A): Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones.

Reason (R): Business environment is dynamic, i.e., it keeps on changing in consumer preferences.

(1) Both (A) and (R) are true, and (R) is the correct explanation of (A).

(2) Both (A) and (R) are true, but (R) is not the correct explanation of (1). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true.

32. Assertion (A): The business environment helps

in understanding the threats which are likely to happen in the future. Reason (R): Environmental awareness can help managers to identify various threats on time and serve as an early warning signal. (1) Both (A) and (R) are true, and (R) is the correct

explanation of (A). (2) Both (A) and (R) are true, but (R) is not the correct explanation of (A). (3) (A) is true, but (R) is false. (4) (A) is false, but (R) is true. 33. Fayol's book was published in English as ‘General and Industrial Management’ in : (1) 1949 (2) 1947 (3) 1918 (4) 1933 34. Which of the following nature of management involves skillful and personal application of existing knowledge to achieve desired results: (1) Science (2) Art (3) Profession (4) None of these 35. “Increase in the use of mobile phones and i-pods instead of papers and radio” refers to an example of key component of general environment of business. Identify the component of business environment. (1) Technological (2) Political (3) Legal (4) Economic 36. Which of the following money market instruments is also known as Zero Coupon Bonds? (1) Call Money (2) Treasury Bill (3) Commercial Paper (4) Commercial Bill 37. Which of the following is incorrect regarding the functions performed by consumer organizations? (1) They carry out comparative testing of consumer products. (2) They do not provide legal assistance to the consumers. (3) They file complaints in appropriate consumer courts on behalf of the consumers. (4) None of the above 38. Which of the following statement is true about the organizing function of management: (1) Departmentalisation is the first step in the process of organising. (2) Organising discourages creativity amongst the managers. (3) Organising allows a business enterprise to accommodate changes in the business environment. (4) All the above 39. _____ is the reason for business failure (1) Lack of market research. (2) Poor financial control. (3) Poor management. (4) All the above.

40. Which of the financial decisions is about the quantum of finance to be raised from various longterm sources?

Sample Question Papers

(1) Investment (2) Dividend

Column I

(3) Financing (4) None of these

41. Match the REDRESSAL AGENCY as per

Goal-oriented process

Management is a complex activity involving management of people, work and operations.

(ii)

Group activity

Some aims and objectives are the basic reason for existence of an organization.

(iii)

Multi-dimensional

Diverse individuals with different needs work together to fulfill the common organizational goal.

Column II

(i)

District Commission

Exceeds ` 2 crore

(ii)

National Commission

Exceeds ` 50 lakh but does not exceed ` 2 crore.

(iii)

State Commission

Does not exceed ` 50 lakh

(1) (ii), (iii), (i)

(2) (iii), (ii), (i)

(3) (ii), (i), (iii)

(4) (iii), (i), (ii)



42. Which of the following internal sources of recruitment involves shifting of an employee from one job to another, one department to another?



(1) Transfer

(2) Promotion



(3) Both (1) and (2)

(4) None of the above



43. In order to make the ‘Annual Day’ of the school a successful event, the Headmistress of the school segregated all the activities into task groups each one dealing with a specific area. For instance, decorations, refreshments, backstage support, etc. Each group was put under the charge of one teacher. Identify the function of management performed by the Headmistress by dividing the activities and assigning the duties?

(1) Planning (2) Organising (3) Staffing (4) Directing

44. A company needs a detailed plan for its new project, ‘Construction of retail shops across the city’. ……………….. type of plan should it prepare?

(1) Programme (2) Rule (3) Procedure (4) Method

45. Which of the following principles of management by Fayol states that there should be one and only one boss for every individual employee:

(1) Unity of direction

Column II

(i)

Consumer Protection Act in Column I with the COMPENSATION CLAIMED in Column II. Column I

(1) (ii), (i), (iii)

(2) (ii), (iii), (i)

(3) (iii), (ii), (i)

(4) (iii), (i), (ii)



I. Read the following text and answer the following questions on the basis of the same:

A critical point control (CPC) approach is followed by McDonald in the cooking and handling process so that any food safety threat can be prevented, eliminated, or reduced to an acceptable level. Hence, continuous monitoring of activities are undertaken to ensure that the process is right at each critical point control. The main principle followed for cooking at McDonald is “less amount many time” which can ensure the high quality and high fresh level of the food. For instance, if four hamburgers have to be made, a worker cannot cook all the four hamburgers at one time. The time figured out for making one hamburger is one hundred and forty-five seconds. Moreover, nearly all foods in the McDonald have the specific holding time, the holding time for hamburgers is ten minutes and for french fries is seven minutes. If it is not sold within that time it is thrown away. Also, the temperature of the milk sent by the supplier must be under 4° C, otherwise, it will be returned.

47. Which of the following steps involved in the controlling process is discussed in the above lines?



(1) Analysing deviation

(3) Unity of command



(2) Taking corrective action

(4) Division of work



(3) Both (1) and (2)



(4) Setting Performance Standards

(2) Order



46. Match the CHARACTERISTICS of management in Column I with their correct EXPLANATIONS in Column II:

41

42

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

48. Which of the following statements is true with respect to critical point control?



(1) Accomplishing organisational goals



(2) Making efficient use of resources



(1) Control focus on key result areas (KRAs)



(3) Judging accuracy of standards



(2) CCPs may be located at any point in the food production plant where hazards need to be prevented, eliminated, or reduced to acceptable levels.



(4) All of the above



(3) It helps in saving time, and thus manager can focus on other relevant issues.



(4) All of the above.



49. Identify the point which highlights the importance of the controlling function in the above text.



50. Which feature of controlling is highlighted in the above text?



(1) Control is a continuous process.



(2) Control is all pervasive.



(3) Action is the essence of control.



(4) Control is forward looking. 

Sample Question Papers

SAMPLE

Question Paper

Maximum Marks : 200 

43

10

Time : 45 Minutes

General Instructions: (i) (ii) (iii) (iv) (v)

This paper consists of 50 MCQs, attempt any 40 out of 50. Correct answer or the most appropriate answer: Five marks (+5). Any incorrect option marked will be given minus one mark (– 1). Unanswered/Marked for Review will be given no mark (0). If more than one option is found to be correct then Five marks (+5) will be awarded to only those who have marked any of the correct options. (vi) If all options are found to be correct then Five marks (+5) will be awarded to all those who have attempted the question. (vii) If none of the options is found correct or a Question is found to be wrong or a Question is dropped then all candidates who have appeared will be given five marks (+5). (viii) Calculator / any electronic gadgets are not permitted.

1. Which statement is correct regarding division of work:

(1) Intent is to produce more and better work from the same effort. (2) Work is divided into small tasks. (3) Trained specialists are required to perform each jobs. (4) All the above 2. Which of the following statement is true with respect to political environment: (1) It include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. (2) It includes forces relating to scientific improvements and innovations. (3) It includes political conditions such as general stability and peace in the country. (4) None of these 3. Management is ................. (1) A Science (2) An Art (3) Both science and art (4) None of these 4. Which of the following step in the process of planning states that the manager is required to make certain assumptions about the future: (1) Setting objectives (2) Developing premises (3) Evaluating alternative courses of action (4) Implementation of plan

5. Number of ____ has been set up by the government to provide financial assistance to the entrepreneurs

(1) financial advisors

(2) financial intermediaries

(3) Industrial estates

(4) financial institutions

6. What does workforce analysis reveal?

(1) Number of human resources available. (2) Type of human resources available. (3) Both number and type of human resources available. (4) None of the above.

7. Match the FUNCTIONAL AREA in Column I with their respective STANDARDS set to gauge performance in Column II, as a part of the controlling function. Column I

Column II

(i)

Marketing

Flow of capital

(ii)

Production

Sales-person’s performance

(iii)

Human Resource Labour turnover Management

(iv)

Finance and Quantity Accounting

(1) (i), (iii), (iv), (ii)

(2) (ii), (iv), (iii), (i)

(3) (iv), (ii), (i), (iii)

(4) (iii), (i), (ii), (iv)



8. Match the CONSUMER RIGHTS as per Consumer Protection Act in Column I with the appropriate EXPLANATION in Column II.

44

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Column I

(i)

(ii)

(iii)

Column II

Right to be Protected

Wide variety of products in terms of quality, brand, prices, size, etc. should be offered to the consumer.

Right to Choose

Protection to consumer against goods and services which are hazardous to life and health.

Right to Seek Redressal Consumer to get relief in case the product or service falls short of his expectations.

(1) (ii), (iii), (i)

(2) (iii), (ii), (i)

(3) (ii), (i), (iii)

(4) (iii), (i), (ii)



9. Which of the following marketing functions is concerned with informing the customers about the firm’s products?

Column I (iii)

Column II

Human Resource Labour turnover Management

(iv)

Finance and Quantity Accounting (1) (i), (iii), (iv), (ii) (2) (ii), (iv), (iii), (i) (3) (iv), (ii), (i), (iii) (4) (iii), (i), (ii), (iv)

14. Ahana buys a packet of bread from a bakery shop without collecting the bill. The bread packet does not contain any information other than the name of shop. Once she reached home and tasted the bread, she found it to be stale. Which consumer right has been violated?

(1) Right to be Informed (2) Right to be Protected (3) Right to Consumer Awareness (4) Right to be Heard

15. Which aspect of staffing is concerned with upgradation of the knowledge and skills of the employees?



(1) Physical Distribution



(2) Promotion

(1) Placement and Orientation



(3) Market Planning

(2) Training and Development

(4) Packaging and Labelling

(3) Selection



10. Which of the following statements are true about ‘Authority’:

(1) Authority can be official authority or personal authority

(4) Estimating manpower requirement

16. Match the ELEMENTS of Directing in Column I with their correct EXPLANATION in Column II Column I

(2) Authority can be formal or informal (3) Authority should be commensurate with responsibility

(i)

Supervision

Process of influencing people to strive willingly for group objectives.

(ii)

Motivation

Process of stimulating people to action to accomplish desired goals of organisation.

(iii)

Leadership

Process of exchange of ideas between or among persons and create understanding.

(iv)

Communication

Process of overseeing the work.

(4) All the above

11. Directing takes place between who among the following:

(1) Superior-Superior (2) Superior-Subordinate (3) Subordinate-Subordinate (4) All the above

12. _________ are the anticipated environments in which plans are expected to operate.

(1) Planning premises (2) Forecasting (3) Objectives (4) None of these

13. Match the FUNCTIONAL AREA in Column I with their respective STANDARDS set to gauge performance in Column II, as a part of the controlling function. Column I

Column II

(i)

Marketing

Flow of capital

(ii)

Production

Sales-person’s performance

Column II

(1) (i), (iii), (iv), (ii)

(2) (ii), (iii), (i), (iv)

(3) (iv), (ii), (i), (iii) (4) (ii), (i), (iii), (iv) 17. What is raised by entrepreneurs? (1) Thoughtful risk (2) High risk (3) Low risk (4) General and fixed risk

Sample Question Papers

18. Yummy Foods Ltd. has its registered office

in Lucknow, manufacturing unit in Kanpur and marketing department in Chandigarh. ……………….. type of organisational structure should be adopted by the company to achieve its objectives. (1) Functional (2) Divisional (3) Both (1) and (2) (4) Neither (1) nor (2)

45



26. Controlling is a/an .................... process as it ensures



27. Tapan, after leaving his job, wanted to start a

completion of organisational goals by monitoring the actual performance. (1) Goal-oriented (2) Action-oriented (3) Continuous (4) Looking backward

Which of the following dimensions of Business Environment is stated in the above line:



Private Limited Company with his son. His son was keen that the company may start manufacturing of Mobile–phones with some unique features. However, Tapan felt that the mobile phones are prone to quick obsolescence and a heavy fixed capital investment would be required regularly in this business. Therefore, he convinced his son to start a furniture business. ............................. factor affecting fixed capital requirements is making Tapan choose furniture business over mobile phone. (1) Scale of operations (2) Choice of techniques (3) Financing alternatives (4) Technology upgradation

(1) Economic (2) Social



28. Marketing is a ……………….. process by which

19. Which of the following statement is true: (1) Authority is only formal (2) Authority is only informal (3) Authority is both formal and informal (4) Authority is neither formal nor informal 20. Art can be acquired through which of the following: (1) Study (2) Observation (3) Experience (4) All the above

21. `Service sector contributes to almost half of India’s GDP but employs only one-third of its workforce.’



people interact with others in order to persuade them to act in a particular way, say to purchase a product or service rather than forcing them to do so. (1) Physical (2) Social (3) Technical (4) Psychological



29. The type of entrepreneurs found in the field of



30. Assertion (1): Higher the flotation cost, less

(3) Political (4) Legal

22. Which of the following statements is false with



respect to a leader? (1) Leader provides training to his subordinates. (2) A leader maintains personal relations and helps followers in fulfilling their needs. (3) Leader plays a key role in introducing required changes in the organisation. (4) None of the above



23. Which of the following is true regarding



Organisational Structure : (1) Grouping of jobs of similar nature under functional structure and organising these major functions as separate departments creates a divisional structure. (2) Span of Management determines the levels of management in the organisation structure. (3) Divisional structure makes training of employees easier as the focus is only on a limited range of skills. (4) All the above

24. Which of the following Maslow's need includes



factors such as self-respect, autonomy status, recognition and attention? (1) Esteem Needs (2) Self-Actualisation Needs (3) Affiliation/Belonging Needs (4) Safety/Security Needs



25. Which of the following step in the process of

staffing involves the process of streamlining the attributes of a person required for doing a job: (1) Recruitment (2) Selection (3) Training and Development (4) Placement and Orientation

small trading and manufacturing concerns are known as _____ (1) Trading Entrepreneurs (2) First generation Entrepreneurs (3) Business Entrepreneurs (4) Innovative Entrepreneurs

attractive the source. Reason (R): The choice between the payment of dividend and retaining the earnings is, to some extent, affected by the difference in the tax treatment of dividends and capital gains. (1) Both (1) and (R) are true, and (R) is the correct explanation of (1). (2) Both (1) and (R) are true, but (R) is not the correct explanation of (1). (3) (1) is true, but (R) is false. (4) (1) is false, but (R) is true.



31. Assertion (1): Financial planning tries to link the

present with the future. Reason (R): Financial planning is essentially the preparation of a financial blueprint of an organisation's future operations. (1) Both (1) and (R) are true, and (R) is the correct explanation of (1). (2) Both (1) and (R) are true, but (R) is not the correct explanation of (1). (3) (1) is true, but (R) is false. (4) (1) is false, but (R) is true.

46

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

32. Which of the following is an advantage of



functional structure : (1) Leads to occupational specialisation. (2) Promotes control and coordination within a department. (3) Helps in increasing managerial and operational efficiency. (4) All of the above.



33. Nature of ................... is said to be a systematic



body of knowledge which explains certain general truths. (1) Management as a Science (2) Management as an Art (3) Management as a Profession (4) All the above

34. To see whether plans are being implemented and

activities are being performed according to the schedule, is a step of planning process. Identify the step. (1) Selecting the best alternative (2) Implementing the plan (3) Follow up action (4) Evaluating alternative courses of action

35. Which of the following statement is true regarding



marketing? (1) It is a process whereby people exchange goods and services for money. (2) It has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers. (3) It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold. (4) All of the above



36. Which of the following is not an importance of





controlling function? (1) It ensures order and discipline. (2) It restricts co-ordination in action. (3) It helps in judging accuracy of standards. (4) It improves employee motivation.

37. Which of the following statement is true regarding



marketing? (1) It is a process whereby people exchange goods and services for money. (2) It has been referred to as performance of business activities that direct the flow of goods and services from producers to consumers. (3) It includes many activities that are performed even before goods are actually produced and continue even after the goods have been sold. (4) All of the above



38. The Consumer Protection Act, 2019 has replaced





which Act? (1) The Consumer Protection Act, 1982 (2) The Consumer Protection Act, 1984

(3) The Consumer Protection Act, 1986 (4) The Consumer Protection Act, 1988

39. Bright Bulbs Pvt. Ltd., is manufacturing good



quality LED bulbs and catering to the local market. The current production of the company is 1,000 bulbs a day. Anita, the marketing manager of the company, surveyed the market and decided to supply the bulbs to five-star-hotels also. She anticipated the higher demand in future and decided to buy a sophisticated machine to further improve the quality and quantity of the bulbs produced. Which factor affected the fixed capital requirements of the company? (1) Scale of Operations (2) Growth Prospects (3) Diversification (4) Choice of Techniques



40. Hero Motor Corporation and Hyundai Corporation



41. Which of the following steps in the process of



42. Which of the following gives shape to the



43. ……………….. step in the process of planning is



44. Which dimension of Business Environment is

have _____ type of entrepreneurs (1) Trading Entrepreneurs  (2) First generation Entrepreneurs (3) Business Entrepreneurs  (4) Industrial Entrepreneurs

staffing involves the process of searching for prospective employees and stimulating them to apply for respective jobs in the organization: (1) Recruitment (2) Selection (3) Training and Development (4) Placement and Orientation organisation structure : (1) Extent of delegation (2) Employee strength (3) Span of management (4) None of the above

considered as the ‘real point of decision making’. (1) Setting objectives (2) Selecting an alternative (3) Implementation of plan (4) Developing premises described by the following statement: ‘Ban on cigarette advertisements.’ (1) Social Environment (2) Legal Environment (3) Technological Environment (4) Political Environment

45. ……………….. principle of management is being

violated if management does not fulfill its promise to increase wages of the workers after the mission is accomplished.

Sample Question Papers (1) Order (2) Equity (3) Discipline (4) Initiative

46. A good manager works through a combination of

which of the following: (1) Practice and Hard work (2) Creativity and imagination (3) Initiative and innovation (4) All the above I. Read the following text and answer the following questions on the basis of the same: ISQAA SOLAR Limited is searching for options to raise ` 20,000 crores from the primary market for diversification and modernisation of existing projects. It hired the services of a renowned financial consultancy firm, DHAN LAXMI PVT. LTD. to suggest options for the same. DHAN LAXMI PVT. LTD. suggested a list of options to the Board of Directors of the company. It was decided that for the immediate requirement of ` 1,500 crores, the company will give a privilege to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company. ` 4,500 crores would be raised by allotment of securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital. It was further decided to raise capital to the tune of ` 6,000 crores through an issuing house. All these options were accepted by the Board of Directors. The Board further decided to raise ` 8,000 crores through the online system of the stock exchange by entering into an agreement with the exchange.



47

47. Identify the method of floatation of new issues



in the primary market, not taken up by ISQAA SOLAR LTD. : (1) Offer for sale (2) Rights issue (3) E-IPO (4) Offer through prospectus



48. “` 4,500 crores would be raised by allotment of



securities to a consortium of financial institutions, instead of inviting subscription from the public by making a direct appeal to investors to raise capital.’’ Identify the method of floatation of new issues in the primary market being discussed above, which the company has decided to use: (1) Offer for sale (2) Private placement (3) Right issue (4) Offer through prospectus



49. Identify the reason which has made the firm raise



funds from the institutional investors : (1) It helps to raise funds quickly. (2) It is not expensive. (3) Both (1) and (2). (4) None of the above.

50. How much money was raised by the company through E-IPO’s ? (1) ` 8,000 crores (2) ` 4,500 crores (3) ` 20,000 crores (4) ` 6,000 crores



48

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SOLUTIONS OF Question Paper

1. Option (1) is correct.



Explanation: Management as a process means to carry out primary functions or activities that management performs to get things done. These functions are planning, organising, staffing, directing and controlling.

2. Option (3) is correct.





4. Option (4) is correct. Explanation: Management always refers to a group of people involved in managerial activities. The management functions cannot be performed in isolation. Even the result of management affects every individual and every department of the organisation. So it always refers to a group effort and not the individual effort of one person.



5. Option (2) is correct. Explanation: Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result.



6. Option (3) is correct. Explanation: Fayol defines scalar chain as ’The chain of superiors ranging from the ultimate authority to the lowest”. Every orders, instructions, messages, requests, explanation etc. has to pass through scalar chain. But, for the sake of convenience and urgency, this path can be cut short and this short cut is known as Gang Plank.

8. Option (3) is correct. Explanation: The objective of method study is to find out one best way of doing the job. To conduct this study, process chart and operation research techniques are used. The main objective of this study is to minimise the cost of production and maximise the quality and level of consumer satisfaction.

3. Option (2) is correct. Explanation: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing.

7. Option (2) is correct. Explanation: The need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can be said that coordination is related to group effort and not individual effort.

Explanation: Directing is first initiated at top level and flows to the bottom through organisational hierarchy. It means that every manager can direct his immediate subordinate and take instructions from his immediate boss.

01



9. Option (4) is correct. Explanation: In order to ensure uniformity in work operations, work should be standardised. It ensures that everyone works according to same standards framed in respect of time, cost, amount of work, working conditions, quality of work, etc.

10. Option (4) is correct. 11. Option (4) is correct. Explanation: Planning reduces uncertainty, risk and confusion in operation. Planning begins with the determination of objectives and is directed towards their achievement. 12. Option (4) is correct. Explanation: The principles of management provide the managers with useful insights into real world situations. Adherence to these principles will add to their knowledge, ability and understanding of managerial situations and circumstances. It will also enable managers to learn from past mistakes and conserve time by solving recurring problems quickly. 13. Option (3) is correct. 14. Option (1) is correct. Explanation: Planning reduces creativity: Planning is an activity which is done by the

Solutions top management. Usually the rest of the members just implements these plans. As a consequence, middle management and other decision makers are neither allowed to deviate from plans nor are they permitted to act on their own. Thus, much of the initiative or creativity inherent in them also gets lost or reduced. 15. Option (1) is correct. Explanation: In an organisation, a welldefined plan is drawn up with specific goals to be achieved within a specific time frame. These plans then decide the future course of action and managers may not be in a position to change it. This kind of rigidity in plans may create difficulty. 16. Option (2) is correct. Explanation: In a divisional structure, the organisation structure comprises of separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit. 17. Option (2) is correct. Explanation: These tests judge the psychological make u ­ p of any person. These tests check a person’s motivational level, emotions, integrity, sympathy, sensitivity, etc. These traits in an individual provide the manager with an overall picture of his personality. 18. Option (4) is correct. 19. Option (2) is correct. 20. Option (2) is correct. Explanation: Treasury bill are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government to meet its short-term requirement of funds. 21. Option (2) is correct. Explanation: The right to be informed is an important component of consumer protection. The consumer must be provided with adequate and accurate information about quality, quantity, purity, standard and the price of the goods and services. Such information helps the consumers in their buying decision and use of the product. 22. Option (1) is correct. Explanation: Staffing is a continuous process because new jobs may be created thorough out the life of an organisation and some of the existing employees may leave the organisation. So to fail up vacancies staffing is continuously required.

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23. Option (2) is correct. Explanation: A company dealing in laye variety of product should have divisional organisation structure because in this system a company segments its employees based on products or market which leads to the success of each division independently. 24. Option (3) is correct. Explanation: This step involves comparison of actual performance with the standard. Such comparison will reveal the deviation between actual and desired results. Comparison becomes easier when standards are set in quantitative terms. 25. Option (2) is correct. Explanation: Supervisor acts as a link between workers and management. He conveys management ideas to the workers on one hand and workers problems to the management on the other. This role played by supervisor helps to avoid misunderstandings and conflicts between management and workers/employees. 26. Option (1) is correct. Explanation: Good and positive motivation in the organisation helps to achieve higher levels of performance as motivated employees contribute their maximum efforts for organisational goals. 27. Option (3) is correct. 28. Option (4) is correct. Explanation: One of the important functions of a marketer is to gather and analyse market information. This is necessary to identify the needs of the customers and take various decisions for the successful marketing of the products and services. This is important for making an analysis of the available opportunities and threats as well as strengths and weaknesses of the organisation. 29. Option (1) is correct. Explanation: Interview is a formal, in-depth conversation conducted to evaluate the applicant’s suitability for the job. The role of the interviewer is to seek information and that of the interviewee is to provide the same. 30. Option (4) is correct. Explanation: Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. In stock exchange securities of various companies are bought and sold. This process of disinvestment and reinvestment helps to invest in most productive investment proposal and this leads to capital formation and economic growth.

50

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

31. Option (3) is correct.

41. Option (3) is correct.

32. Option (2) is correct.

42. Option (1) is correct.

Explanation: Management by exception, which is often referred to as control by exception, is an important principle of management control based on the belief that an attempt to control everything results in controlling nothing. 33. Option (1) is correct. 34. Option (2) is correct. Explanation: Leadership influences the behaviour of people and makes them to positively contribute their energies for the benefit of the organisation. Good leaders always produce goods results through their followers. 35. Option (3) is correct. Explanation: The span of management, to a large extent, gives shape to the organisational structure. Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the level of management in the structure. 36. Option (2) is correct. Explanation: Training helps employees to improve their knowledge and skill and make them perform their tasks more efficiently. It also helps them in promotion and improves their attitudes and confidence levels. 37. Option (1) is correct. Explanation: The interest coverage ratio refers to the number of times earnings before interest and taxes of a company covers the interest obligation. 38. Option (1) is correct. Explanation: Treasury bills are available for a minimum amount of ` 25,000 and in multiples thereof. 39. Option (3) is correct. 40. Option (2) is correct. Explanation: According to Philip cotter, "Marketing is that social process by which individuals and group obtain what they need and want through creating offerings and fully exchanging product and services of value with others."

Explanation: Under the Consumer Protection Act, 2019, the District CDRC will entertain complaints when the value of goods or services is upto ` 1 crore. 43. Option (4) is correct. Explanation: A depository participant (DP), can be either a bank, broker, or financial services company. Depository Participant (DP) is an agent of the depository. Investors interact only with DP. Any financial institution can become DP after registration with SEBI. The company whose shares are to be transacted in electronic form must be registered with a depository. 44. Option (2) is correct. 45. Option (1) is correct. Explanation: Financial management is concerned with the profitability, expenses, cash and credit, So that the organisation hay leave the means to carry out its working as satisfactorily as possible. 46. Option (1) is correct. 47. Option (1) is correct. Explanation: Environment provides numerous opportunities for business success. Early identification of opportunities helps an enterprise to be the first to exploit them instead of losing them to competitors. 48. Option (2) is correct. Explanation: Business environment includes both specific and general forces. Specific forces (such as investors, customers, competitors and suppliers) affect individual enterprises directly and immediately in their day-to-day working. General forces (such as social, political, legal and technological conditions) have an impact on all business enterprises and thus, may affect an individual firm only indirectly. 49. Option (2) is correct. Explanation: The social environment of business include the social forces like customs and traditions, values, social trends, society’s expectations from business, etc. 50. Option (3) is correct.

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Solutions

SOLUTIONS OF Question Paper

1. Option (2) is correct. Explanation: Dividing work among the workforce helps improve the quality of the overall product. Henry Fayol said that specialization in work increases the productivity and improves efficiency. Division of labour also leads to the specialization, accuracy and speed of the workers.



3. Option (4) is correct. Explanation: Business environment includes both specific and general forces. Business environment is dynamic, i.e., it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. Business environment is a relative concept since it differs from country to country and even region to region.



4. Option (3) is correct. Explanation: Transfer is a tool of training the employees to prepare them for higher jobs. Frequent transfers of employees may often reduce the productivity of the organisation.



5. Option (2) is correct. Explanation: Once work has been divided into small and manageable activities, then those activities which are similar in nature, are grouped together. This process is called departmentalization. Departments can be created on the basis of products, functions and territory. This brings specialization in operation.



6. Option (3) is correct. Explanation: To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved.

02

7. Option (2) is correct. Explanation: Control should focus on key result areas (KRAs) which are critical to the success of an organisation. These KRAs are set as the critical points.



8. Option (1) is correct. Explanation: Technological environment includes forces relating to scientific improvements and innovations which provide new ways of producing goods and services and new methods and techniques of operating a business.

2. Option (4) is correct. Explanation: A good manager should practice his skills. He should be creative, innovative, imaginative and take initiative to perform the tasks of the organisation in order to achieve goals.





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9. Option (4) is correct. 10. Option (3) is correct.

Explanation: Financial planning is not equivalent to, or a substitute for, financial management. Financial management aims at choosing the best investment and financing alternatives by focusing on their costs and benefits. Its objective is to increase the shareholders’ wealth. Financial planning on the other hand aims at smooth operations by focusing on fund requirements and their availability in the light of financial decisions. 11. Option (1) is correct. Explanation: The principles of management are intended to apply to all types of organisations, business as well as non-business, small as well as large, public sector as well as private sector, manufacturing as well as the service sectors. 12. Option (4) is correct. Explanation: Training refers to the process of enhancing the skills, capabilities and knowledge of employees for performing a particular job. This process molds the thinking of employees and leads to quality performance of employees. 13. Option (4) is correct. Explanation: Planning requires a lot of time to collect information, its analysis and interpretation. So it is a time consuming

52

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES process. When plans are drawn up huge costs are involved in their formulation. The environment in which a business survives is dynamic as it keeps on changing. The dynamic environment may sometimes lead to failure of plans.

14. Option (1) is correct. 15. Option (1) is correct. Explanation: Efficiency means doing the task correctly and with minimum cost. Efficiency is increased when for the same benefit or outputs, fewer resources are used and less costs are incurred. 16. Option (4) is correct. 17. Option (2) is correct. 18. Option (3) is correct. Explanation: Political Environment means that the actions were taken by the government, which potentially affect the routine activities of any business or company on a domestic or at the global level. 19. Option (2) is correct. Explanation: Branding means giving an attractive name, symbol or identity mark to the product to make a product different from others so that it is known by that name or symbol or mark. 20. Option (3) is correct. Explanation: Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions. 21. Option (1) is correct. Explanation: Call money is a short-term finance repayable on demand, with a maturity period of one day to fifteen days, used for inter-bank transactions. Commercial banks have to maintain a minimum cash balance known as cash reserve ratio. 22. Option (2) is correct. 23. Option (3) is correct. Explanation: Packaging and labelling have become so important in modern day marketing that these are considered as the pillars of marketing. Packaging is important not only for protection of the products but also serves as a promotional tool. 24. Option (3) is correct.

25. Option (2) is correct. Explanation: Planning is required at all levels of management as well as in all departments of the organisation. It is not an exclusive function of top management nor of any particular department. 26. Option (1) is correct. Explanation: A good control system enables management to verify whether the standards set are accurate and objective. By exercising control, a manager seeks to reduce wastage and spoilage of resources. 27. Option (2) is correct. Explanation: Control is a costly affair as it involves a lot of expenditure, time and effort. A small enterprise cannot afford to install an expensive control system. It cannot justify the expenses involved. Managers must ensure that the costs of installing and operating a control system should not exceed the benefits derived from it. 28. Option (1) is correct. Explanation: This rule focuses on increasing the efficiency of an organisation through scientific analysis of work and not with the ‘Rule of Thumb’ method. 29. Option (3) is correct. Explanation: A consumer, who is well informed about his rights and the relief available to him, would be in a position to raise his voice against any unfair trade practices or unscrupulous exploitation. In addition to this, an understanding of his responsibilities would also enable a consumer to safeguard his interests. 30. Option (3) is correct. Explanation: Employees learn their jobs on the equipment they will be using, but the training is conducted away from the actual work floor. Actual work environments are created in a class room and employees use the same materials, files and equipment. This is usually done when employees are required to handle sophisticated machinery and equipment. 31. Option (3) is correct. Explanation: A consumer has a right to be informed about the quality, ingredients of the products. And also the grievance of the customer should be heard and solved at its earliest.

Solutions 32. Option (1) is correct. Explanation: An organisation structure formed by grouping together all activities into functional departments and putting each department under one coordinating head is called functional structure. 33. Option (1) is correct. Explanation: A functional structure is most suitable when the size of the organisation is large, has a diversified activities and operations require a high degree of specialisation. 34. Option (2) is correct. Explanation: A very important function of the marketing management relates to developing customer support services such as after sales services, handling customer complaints and adjustments, procuring credit services, maintenance services, technical services and consumer information. All these services aim at providing maximum satisfaction to the customers, which is the key to marketing success in modern days. 35. Option (1) is correct. Explanation: Environmental change is concerned with the degree to which an organisation’s environment is dynamic and ever-changing. Change in environment occurs in areas like product, market, law or technology. However, some environmental factors such as technological and competitive environmental factors are changing faster than the political environment. 36. Option (2) is correct. Explanation: The secondary market is also known as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. 37. Option (4) is correct. Explanation: Right to be protected means the Right to safety against the marketing of goods and services, which are hazardous to life & property. The purchased goods and services availed of should fulfill long term interest of the customers. 38. Option (1) is correct. Explanation: The top level management includes Board of Directors and the Chief Executive. This level determines the objectives of the business as a whole and lays down policies to achieve these objectives.

53

39. Option (3) is correct. Explanation: Test marking is a controlled experiment conducted by companies in a carefully selected market to test the viability of their new product and marketing stratgy. 40. Option (1) is correct. 41. Option (2) is correct. Explanation: Promotional activities include advertising, personal selling, sales promotion and publicity. All promotional activities involve communication with the existing and prospective customers whereby they are made aware of the product, its distinctive features, price, availability, etc. The objective of promotional activities is to motivate the customers to buy the product 42. Option (1) is correct. Explanation: Premises include actual forecast data, policies and plans of the enterprise. Planning involves looking into the future which necessitates the enterprise to know how future conditions will affect its activities. 43. Option (1) is correct. Explanation: Financial markets facilitate easy purchase and sale of financial assets. In doing so they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Holders of assets can readily sell their financial assets through the mechanism of the financial market. 44. Option (2) is correct. Explanation: The primary aim of financial management is to maximise shareholders’ wealth, which is referred to as the wealth maximisation concept. 45. Option (3) is correct. Explanation: Organising facilitates growth and diversification of activities through clear division of work. It helps in developing a proper organisation structure and the extent and nature of decentralisation can be determined. 46. Option (1) is correct. Explanation: Recruitment refers to searching for suitable candidates for the various job positions to be filled up from time to time in the organisation. It is the process of finding and attracting suitable applicants for employment. 47. Option (2) is correct. Explanation: Directing is the starting point of action. It initiates action based on planning,

54

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES organising and staffing. Action is initiated when the managers provide direction to their subordinates for carrying out the task. Therefore, the directing function provides a set of guidelines to the employees on how to start working towards achieving the goals of the organisation.

48. Option (3) is correct. Explanation: It refers to a style where the leader consults its subordinates before taking the final decision.

49. Option (3) is correct. Explanation: Recognition means acknowledgement with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform at higher level. 50. Option (3) is correct. Explanation: At the fourth level in Maslow’s hierarchy is the need for appreciation and respect. When the needs at the bottom three levels have been satisfied, the esteem needs begin to play a more prominent role in motivating behaviour. 

Solutions

SOLUTIONS OF

Question Paper

1. Option (4) is correct. Explanation: Division of work means the separation of a work process into a number of task each performed by a separate person or group of persons.



2. Option (1) is correct. Explanation: All these are the features of Business environment which shows that the business environment is dynamic unpredictable and complex in nature.

3. Option (2) is correct. 4. Option (1) is correct.

Explanation: The process of management is a series of continuous, composite, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.

5. Option (1) is correct. 6. Option (4) is correct.

Explanation: Controlling means ensuring that activities in an organisation are performed as per the plans. Controlling also ensures that an organisation’s resources are being used effectively and efficiently for the achievement of predetermined goals.

7. Option (1) is correct. Explanation: The financial planning begins with determination of total capital requirement. For this the finance managers do the sales forecast and if the future prospects appear to be bright and expect increase in sale, then firm needs to increase its production capacity which means more requirement of long term funds.

8. Option (1) is correct. 9. Option (4) is correct.

Explanation: After the job offer has been made and candidate accepts the offer, certain documents need to be executed by the employer and the candidate.

55

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There is also a need for preparing a contract of employment. Basic information that should be included in a written contract of employment will vary according to the level of the job. 10. Option (1) is correct. Explanation: The stock exchange provides sufficient scope within the provisions of law for speculative activity in a restricted and controlled manner. It is generally accepted that a certain degree of healthy speculation is necessary to ensure liquidity and price continuity in the stock market. 11. Option (2) is correct. Explanation: The consumers have been given the right of redressal of their grievances relating to the performance, grade, quality etc. of the goods and services. If required, the product must be repaired/replaced by the seller/ manufacturer. The Consumer Protection Act has duly provided for a fair settlement of genuine grievances of the consumers. It has also set up a proper mechanism for their redressal at district, state and national levels. 12. Option (4) is correct. Explanation: Marketing refers to the process of ascertaining consumers’ needs and supplying various goods and services to the final consumers or users to satisfy those needs. Basically, marketing is the performance of business activities that direct the flow of goods and services from producers to consumers or users. 13. Option (1) is correct. Explanation: Under the Consumer Protection Act, 2019, the District CDRC will entertain complaints when the value of goods or service is upto ` 1 crore. 14. Option (2) is correct. Explanation: The activities involved in managing an enterprise are common to all organisations whether economic, social or political.

56

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

15. Option (3) is correct. Explanation: BSE is type of stock exchange which provides an efficient and transparent market for trading in equity, debt instruments, derivatives, and mutual funds. NSE is also a stock exchange that establishes a nationwide trading facility for all types of securities. 16. Option (2) is correct. Explanation: Financial planning is essentially the preparation of a financial blueprint of an organisation’s future operations. The objective of financial planning is to ensure that enough funds are available at right time. 17. Option (1) is correct. Explanation: Standardisation refers to development of standards for production of goods with respect to shape, design, colour and other characteristics. If products are standardised, customers are able to identify a product and its characteristics very well. 18. Option (1) is correct. Explanation: Organising stimulates creativity amongst the managers. Effective delegation allows the managers to reduce their workload by assigning routine jobs to their subordinates. 19. Option (3) is correct. Explanation: Just like a bank keeps money in safe custody for customers, a depository is also like a bank and keeps securities in electronic form on behalf of the investor. It is a technology driven electronic storage system. It has no paper work relating to share certificates, transfer, forms, etc. 20. Option (2) is correct. Explanation: A motive is an inner state that energises, activates or moves and directs behaviour towards goals. Motives arise out of the needs of individuals. Realisation of a motive causes restlessness in the individual which prompts some action to reduce such restlessness. 21. Option (4) is correct. Explanation: In every art there is systematic and organized study material available to acquire theoretical knowledge of the art. Every artist must have personal skill and creativity to apply that knowledge. 22. Option (4) is correct.

Explanation: The application of principles of management helps the managers to take right decisions at the right time. By applying the management principles, the managers can focus on optimum use of available resources so as to achieve productive results at minimum cost and maximum profits. They also help managers to meet the changing requirements of the environment. 23. Option (2) is correct. Explanation: Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure. 24. Option (3) is correct. Explanation: After interview, reference and background of the employee is checked. Many employers request names, addresses, and telephone numbers of references for the purpose of verifying information and, gaining additional information on an applicant. Previous employers, known persons, teachers and university professors can act as references. 25. Option (1) is correct. Explanation: Esteem needs are of two types: internal esteem needs (self- respect, confidence, competence, achievement and freedom) and external esteem needs (recognition, power, status, attention and admiration). 26. Option (1) is correct. Explanation: Once a plan becomes operational, controlling is necessary to monitor the progress, measure it, discover deviations and initiate corrective measures to ensure that events conform to plans. Thus, controlling ensures that the activities in an organisation are performed as per the plans. 27. Option (4) is correct. Explanation: Business environment is dynamic, i.e., it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. 28. Option (1) is correct. Explanation: Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. Such systematized body of knowledge contains concepts, principles and theories which help to explain past events and to predict the outcome of specific actions.

Solutions 29. Option (4) is correct. Explanation: The main objective of financial management is to maximize the wealth of shareholders. This include a proper estimation of the funds required for different purposes such as for the purchase of long term assets or to meet day-to-day expenses of business, etc. 30. Option (2) is correct. Explanation: Internal recruitment also simplifies the process of selection and placement. The candidates that are already working in the enterprise can be evaluated more accurately and economically. This is a more reliable way of recruitment since the candidates are already known to the organisation. 31. Option (1) is correct. Explanation: Job seekers assemble outside the premises of the organisation on the specified date and selection is done on the spot. Certain workers present themselves at the factory gate every day for employment. Thus, it does not involve any cost of advertising for the vacancies. 32. Option (3) is correct. 33. Option (1) is correct. Explanation: It is a benefit provided by an organization to its employees. 34. Option (1) is correct. Explanation: The money market is a market for short-term funds which deals in monetary assets whose period of maturity is upto one year. These assets are close substitutes for money. 35. Option (2) is correct. Explanation: Responsibility is the obligation of a subordinate to properly perform the assigned duty. It arises from a superior–subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior. 36. Option (2) is correct. Explanation: Constitution of the country is an element of legal environment. Legal Environment includes various laws passed by the government, administrative orders issued by government authorities, court judgments as well as decisions rendered by the central, state or local governments.

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37. Option (4) is correct. Explanation: Controlling sets up some standard of employees and employees knows the standards against which their performance will be measured. It thus, increases employee motivation. 38. Option (4) is correct. Explanation: The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time. The application of principles has to be changed as per requirements. The principles of management are not fixed or permanent. They are affected by situations or circumstances. 39. Option (4) is correct. Explanation: An important function of label is to aid in promotion of the products. A carefully designed label can attract attention and give reason to purchase. Labels play an important role in sales promotional schemes launched by companies. 40. Option (2) is correct. Explanation: The term ‘business environment’ means the sum total of all individuals, institutions and other forces that are outside the control of a business enterprise but that may affect its performance. 41. Option (1) is correct. Explanation: Some degree of deviation in performance can be expected in all activities. Thus, it is essential to determine the permissible range these deviations. 42. Option (4) is correct. 43. Option (4) is correct. Explanation: Managers require authority commensurate with their responsibility. There should be a balance between authority and responsibility. An organisation should build safeguards against abuse of managerial power. At the same time a manager should have necessary authority to carry out his responsibility. 44. Option (3) is correct. Explanation: In marketing, product is a mixture of tangible and intangible attributes, which are capable of being exchanged for a value, with ability to satisfy customer needs. 45. Option (1) is correct. Explanation: Several wage incentive plans aims at linking payment of wages to increase in productivity at individual or group level.

58

OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

46. Option (1) is correct. Explanation: Conflict may arise among different divisions with reference to allocation of funds and further a particular division may seek to maximise its profits at the cost of other divisions. 47. Option (2) is correct. 48. Option (1) is correct.

49. Option (1) is correct. 50. Option (3) is correct. Explanation: To see whether plans are being implemented and activities are performed according to schedule is also part of the planning process. Monitoring the plans is equally important to ensure that objectives are achieved. 

Solutions

SOLUTIONS OF Question Paper

1. Option (1) is correct. Explanation: Product improvement became the key to profit maximisation of a firm, under the concept of product orientation. With the increase in the supply of the products, customers started looking for products which were superior in quality, performance and features. Therefore, the emphasis of the firms shifted from quantity of production to quality of products.

2. Option (2) is correct. 3. Option (2) is correct.

Explanation: Every manager, from top executive to supervisor performs the function of directing. Directing takes place wherever superior-subordinate relations exist.

4. Option (1) is correct. Explanation: The staffing process is a systematic attempt to implement the human resource plan by recruiting, evaluating and selecting qualified candidates for the jobpositions in the organization.



5. Option (3) is correct. Explanation: The process of organising allows a business enterprise to accommodate changes in the business environment. It allows the organisation structure to be suitably modified and the revision of inter-relationships amongst managerial levels to pave the way for a smooth transition.

6. Option (3) is correct. 7. Option (2) is correct. 8. Option (1) is correct.

Explanation: Business environment is a relative concept whose impact differs from country to country, region to region and firm to firm. Political conditions in the USA, for instance, differ from those in China or Pakistan. Similarly, demand for sarees may be fairly high in India whereas it may be almost non-existent in France.



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9. Option (1) is correct. Explanation: The interest of the organisation must prevail upon the personal interests of individuals. The standard rule for any organization is the work on the collective interest of the organization as a whole rather than personal interest of an individual.

10. Option (2) is correct. Explanation: Different forces of business environment are interrelated to each other. One component of the business environment affects the functioning of other components. 11. Option (1) is correct. Explanation: The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning, organizing and coordinating functions. 12. Option (2) is correct. Explanation: Motion study refers to the study of movements like lifting, putting objects, sitting and changing positions, etc., which are undertaken while doing a typical job. 13. Option (2) is correct. Explanation: Middle level Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. 14. Option (2) is correct. Explanation: Middle level management participate in employment and training of managers so they are responsible for hiring of employees. 15. Option (4) is correct. Explanation: The economic, social, political, technological and other forces which operate outside a business enterprise are part of its environment. So also, the individual consumers or competing enterprises as

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES well as the governments, consumer groups, competitors, courts, media and other institutions working outside an enterprise constitute its environment.

16. Option (2) is correct. Explanation: Organising essentially implies a process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives. 17. Option (3) is correct. Explanation: Workforce analysis also known as workforce planning is a process that uses both employees and Role data to inform decisions on recruitment, retention and staff management. 18. Option (3) is correct. Explanation: Man is a social animal. He wants to live in the society honourably. Therefore, he wants friends and relatives with whom he can share his joys and sorrows. Social needs include need for love, affection, friendship, etc. 19. Option (3) is correct. Explanation: Grading is the process of classification of products into different groups, on the basis of some of its important characteristics such as quality, size, etc. 20. Option (4) is correct. Explanation: The best plan, which is the most profitable plan and with minimum negative effects, is adopted and implemented. In such cases, the manager’s experience and judgement plays an important role in selecting the best alternative. 21. Option (2) is correct. Explanation: 'Management by exception' states that managers should concentrate on important deviations rather than every activity and control point control means that focus on key Result Area should be done. 22. Option (4) is correct. Explanation: Directing facilitates introduction of needed changes in the organisation. Generally, people have a tendency to resist changes in the organisation. Effective directing through motivation, communication and

leadership helps to reduce such resistance and develop required cooperation in introducing changes in the organisation. 23. Option (2) is correct. Explanation: Cash is paid or securities are delivered on pay-in day, which is before the T+2 day as the deal has to be settled and finalised on the T+2 day. The settlement cycle is on T+2 day on a rolling settlement basis. 24. Option (4) is correct. Explanation: The management principles are developed only after deep and thorough research work. They are not developed overnight or they are not the personal feelings of any person. Proper observations and experiments are conducted before developing them. These are the expressions of deep experiences of the leaders of management thoughts. 25. Option (3) is correct. 26. Option (3) is correct. 27. Option (4) is correct. Explanation: Financial planning helps in coordinating various business functions, e.g., sales and production functions, by providing clear policies and procedures and making detailed plans of action which reduces waste, duplication of efforts, and gaps in planning. 28. Option (3) is correct. Explanation: After planning and organising of the organisation structure, the next step in the management process is to fill the various posts provided in the organisation. This is termed as the management of staffing function. Thus, it is the third function in the series of management functions. 29. Option (1) is correct. Explanation: Those consumer products, which are purchased frequently, immediately and with least time and efforts are referred to as convenience goods. 30. Option (2) is correct. Explanation: Call money is mainly used by the banks to meet their temporary requirement of cash. They borrow and lend money from each other normally on a daily basis. It is repayable on demand and its maturity period varies between one day to a fortnight.

Solutions 31. Option (1) is correct. Explanation: Controlling as a function of management refers to the evaluation of actual performance of work against planned or standard performance and taking the corrective action, if necessary. 32. Option (1) is correct. Explanation: Through controlling, company can track dishonest employees by using tools such as computer monitoring as a part of their control system. 33. Option (1) is correct. Explanation: The elements of directing are Supervision, Motivation, Leadership and Communication. 34. Option (2) is correct. Explanation: The principles of management are not fixed or permanent. They are affected by situations or circumstances. Therefore, the decision to implement them or not is taken according to the situations or circumstances. 35. Option (3) is correct. Explanation: Legal environment consists of rules and regulations, framed by the Parliament, under which business must operate. To exist and grow, business is required to follow all the rules and regulations that constitute this environment. 36. Option (4) is correct. Explanation: Planning lays down the base for other functions of management. Planning involves setting targets and predicting future conditions, thus helping in taking rational decisions. 37. Option (2) is correct. Explanation: Contract note contains details of the number of shares bought or sold, the price, the date and time of deal, and the brokerage charges. This is an important document as it is legally enforceable and helps to settle disputes/ claims between the investor and the broker. 38. Option (4) is correct. Explanation: Planning and controlling are inter-related to each other. Planning refers to the setting up of objectives for the organisation and controlling ensures their accomplishment. The actual performance is compared with the set plans and deviations are found our and corrected. Therefore, planning is a prerequisite for controlling.

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39. Option (2) is correct. Explanation: A manager has to coordinate the efforts of different people in a conscious and deliberate manner. Even where members of a department willingly cooperate and work, coordination gives a direction to that willing spirit. 40. Option (1) is correct. Explanation: Debt is cheaper but is more risky for a business because the payment of interest and the return of principal is obligatory for the business. 41. Option (4) is correct. Explanation: Delegation of authority establishes superior-subordinate relationships, which are the basis of hierarchy of management. It is the degree and flow of authority which determines who has to report to whom. 42. Option (1) is correct. Explanation: Planning precedes all other managerial functions and provides the very basis for organising, staffing, directing and controlling. Planning is deciding in advance what to do and how to do. It is one of the basic managerial functions. Before doing something, the manager must formulate an idea of how to work on a particular task. Thus, planning is closely connected with creativity and innovation. 43. Option (2) is correct. Explanation: Workload analysis would enable an assessment of the number and types of human resources necessary for the performance of various jobs and accomplishment of organisational objectives. Workforce analysis would reveal the number and type available. 44. Option (2) is correct. Explanation: Issue of more equity may lead to dilution of management’s control over the business. Debt financing has no such implication. Companies afraid of a takeover bid would prefer debt to equity. 45. Option (3) is correct. Explanation: The difference between the price at which the treasury bills are issued and their redemption value is the interest receivable on them and is called discount.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

46. Option (4) is correct.

49. Option (3) is correct.

47. Option (2) is correct.

50. Option (1) is correct.

48. Option (2) is correct. Explanation: The consumer should ask for a cash memo on purchase of goods or services. This would serve as a proof of the purchase made.

Explanation: The basic aim of the Consumer Protection Act, 2019 is to save the rights of the consumers by establishing authorities for timely and effective administration and settlement of consumers’ disputes. 

Solutions

SOLUTIONS OF Question Paper

1. Option (2) is correct. Explanation: Under planning incharge four personnel namely instruction card clerk, route clerk, time and cost clerk and a disciplinarian works. These four personnel would draft instructions for the workers, specify the route of production, prepare time and cost sheet and ensure discipline respectively.



2. Option (1) is correct. Explanation: Economic environment consists of economic factors that influence the business in a country. It consists of the factors and forces concerning with means of production and distribution of wealth, e.g. Gross Domestic Product, inflation rate, money supply, etc.

3. Option (4) is correct. 4. Option (1) is correct.

Explanation: Centralization refers to that organizational structure where decisionmaking power is confined to the top management, and the subordinates need to follow the instructions of their seniors.

5. Option (1) is correct. Explanation: Preliminary screening help reject misfits for reasons, which did not appear in the application forms.



6. Option (4) is correct. Explanation: A leader should be a good communicator. He should have the capacity to clearly explain his ideas and make the people to understand his ideas. He should not only be a good speaker but a good listener, teacher, counsellor and persuader.



7. Option (1) is correct. Explanation: Labels are useful in providing detailed information about the product, its contents, method of use, etc.



8. Option (4) is correct. Explanation: A consumer must be aware of his 'Right to be protected' against the goods and services are hazardous to life and property. The purchased goods or services availed of should not only meet their immediate needs, but also fulfill long term interests.



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9. Option (1) is correct. Explanation: The protective function implies the role that SEBI plays in protecting the investor interest and also that of other financial participants. Prohibition of fraudulent and unfair trade practices like making misleading statements, manipulations, price rigging, etc. is the function of SEBI.

10. Option (2) is correct. Explanation: The Right to be informed refers to the facts needed to make an informed decision. Consumers should be provided with adequate information. So that they can act wisely and responsibility. 11. Option (3) is correct. Explanation: Product mix refers to the total number of product lives a company offers to its customers. 12. Option (2) is correct. Explanation: SEBI stands for Securities and Exchange Board of India. SEBI regulates how the stock market and mutual funds function. 13. Option (4) is correct. Explanation: Accountability element of delegation refers to the answerability of a subordinate to his superior for the job or task that is assigned. Accountability flows in an upward direction, which means the subordinate is accountable to the superior. 14. Option (1) is correct. 15. Option (3) is correct. Explanation: The entry to a profession is restricted through an examination or through acquiring an educational degree. Whereas there is no legal restriction on appointment of a manager, anyone can become a manager irrespective of the educational qualification. 16. Option (3) is correct. Explanation: Motivation increases the willingness of the employees to work thus increasing effectiveness but it may very from person to person. 17. Option (1) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

18. Option (3) is correct. Explanation: Discipline is the obedience to organisational rules and employment agreement which are necessary for the working of the organisation. According to Fayol, discipline requires good superiors at all levels, clear and fair agreements and judicious application of penalties. 19. Option (4) is correct. Explanation: Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals. 20. Option (4) is correct. 21. Option (3) is correct. Explanation: Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for satisfactory performance of work. 22. Option (4) is correct. Explanation: A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment. Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. 23. Option (4) is correct. Explanation: Financial planning takes into consideration the growth, performance, investments and requirement of funds for a given period. Financial planning includes both short-term as well as long-term planning. Long-term planning relates to long term growth and investment. It focuses on capital expenditure programmes. Short-term planning covers short-term financial plan called budget 24. Option (1) is correct. Explanation: Planning involves setting objectives and determining a course of action which acts as a base for achieves the goal. 25. Option (1) is correct. 26. Option (2) is correct.

Explanation: Political Environment consists of forces such as political stability and peace in the country and attitude of the ruling party and its representatives towards business. These forces significantly affect the functioning of business. 27. Option (1) is correct. Explanation: If the ROI of the company is higher, it can choose to use trading on equity to increase its EPS, i.e., its ability to use debt is greater. 28. Option (4) is correct. Explanation: The basic purpose of SEBI is to create an environment to facilitate efficient mobilisation and allocation of resources through the securities markets. This environment aims at meeting the needs of the three groups which basically constitute the market, viz, the issuers of securities (companies), the investors and the market intermediaries 29. Option (3) is correct. Explanation: Consumer awareness is an act of being conscious of having knowledge about the various products, goods, services and consumer rights. 30. Option (1) is correct. Explanation: A higher DSCR indicates better ability to meet cash commitments and consequently, the company’s potential to increase debt component in its capital structure. 31. Option (2) is correct. Explanation: Planning lays down the base for other functions of management. All other managerial functions are performed within the framework of the plans drawn. Thus, planning precedes other functions. 32. Option (4) is correct. Explanation: Planning is a time-consuming process. Sometimes plans to be drawn up take so much of time that there is not much time left for their implementation. 33. Option (1) is correct. Explanation: Under the direct recruitment, a notice is placed on the notice-board of the enterprise specifying the details of the jobs available. It is suitable for filling casual vacancies when there is a rush of work or when some permanent workers are absent.

Solutions 34. Option (2) is correct. Explanation: Product combinations is offering another product as gift along with the purchase of a product, say offer of a pack of ½ kg of rice with the purchase of a bag of aatta (wheat flour). 35. Option (2) is correct. Explanation: Conducting research and publishing information useful to all market participants is the development function of SEBI. Developmental function refers to the steps taken by SEBI in order to provide the investors with a knowledge of the trading and market function. 36. Option (2) is correct. Explanation: So many products are being advertised which makes similar claims that the buyer gets confused as to which one is true and which one should be relied upon. 37. Option (2) is correct. Explanation: Applicants introduced by present employees, or their friends and relatives may prove to be a good source of recruitment. Such applicants are likely to be good employees because their background is sufficiently known. 38. Option (2) is correct. Explanation: Management unites the efforts of different individuals and create an environment to work in groups in the organisation towards achieving the goals. 39. Option (4) is correct. Explanation: Right to be protected means right to safety against the marketing of goods and services, which are hazard does to life and property. 40. Option (2) is correct. Explanation: Financial planning is broader in scope as it does not end by raising estimated finance. It includes long term investment decision. In financial planning finance manager analyses various investments plans and selects the most appropriate.

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41. Option (3) is correct. Explanation: An autocratic leader gives orders and expects his subordinates to obey those orders. If a manager is following this style, then communication is only one-way with the subordinate only acting according to the command given by the manager. 42. Option (3) is correct. Explanation: Authority is the power to complete an assigned task. Without authority a subordinate is unable to execute the task perfectly. In order to complete the task as is expected by the manager, the manager has to provide authority of executing that task to the subordinate. 43. Option (3) is correct. 44. Option (3) is correct. Explanation: Political environment is the outcome of a combination of various ideologies advocated by different political parties. It includes political conditions such as general stability and peace in the country and the political attitude of elected government towards business. 45. Option (3) is correct. Explanation: The principle of unity of command states that each employee in an organisation should receive orders from one superior only and he should be responsible to only one superior. It prevents confusion regarding tasks to be done. 46. Option (2) is correct. Explanation: Management is an art because it requires personal skill, creativity and practice to apply systematic and well-organised body of knowledge in the best possible way. 47. Option (4) is correct. Explanation: Controlling creates an atmosphere of order and discipline in the organisation. It helps to minimise dishonest behaviour on the part of the employees by keeping a close check on their activities. 48. Option (2) is correct. 49. Option (2) is correct. 50. Option (2) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SOLUTIONS OF

Question Paper

1. Option (1) is correct. Explanation: The Distinct commission can entertain consumer complaint having value upto `1 crore.

2. Option (1) is correct. 3. Option (2) is correct.

Explanation: The Securities and Exchange Board of India was established by the Government of India on 12 April, 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was to function under the overall administrative control of the Ministry of Finance of the Government of India. The SEBI was given a statutory status on 30 January, 1992 through an ordinance.

4. Option (1) is correct. Explanation: During a bearish phase, a company may find raising of equity capital more difficult and it may opt for debt.



5. Option (3) is correct. Explanation: In controlling the third is of comparing actual performance with predetermined goals.



6. Option (4) is correct. Explanation: Communication is a process of transferring information from one place, person or group to another. It acts as a basis of coordination among different employees. it is a continuous process that forms basis to an existence of any organisation.

7. Option (1) is correct. 8. Option (2) is correct. 9. Option (3) is correct.

Explanation: Legal environment consists of legislation that is passed by the Parliament and state legislatures. Legal environment consists of the legal framework within which business has to function, including legislation passed by the government, administration orders, court judgement, etc.

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10. Option (1) is correct. Explanation: Strategy provides bread contours of an organisation as it is comprehensive in nature. It outlines the goals of the organisation and the path to accomplish them. 11. Option (2) is correct. Explanation: Divisional structure is a system in which a company segregate its employees based on products or markets, which leads to specialisation in their jobs and thus are responsible for profit or loss of their unit. 12. Option (1) is correct. Explanation: As no managerial action has been able to solve the problem so revision of the schedule shall be done by the manager to fulfill the gap caused by an inappropriate schedule. 13. Option (2) is correct. Explanation: A successful manager practices the art of management in the day-to-day job of managing an enterprise based on study. A manager applies his acquired knowledge in a personalised and skillful manner in the light of the realities of a given situation. 14. Option (4) is correct. 15. Option (3) is correct. Explanation: Budget is a financial plan for a defined period, often one year. 16. Option (2) is correct. Explanation: If the stock markets are bullish, equity shares are more easily sold even at a higher price. Use of equity is often preferred by companies in such a situation. 17. Option (3) is correct. Explanation: Offering products at special prices, to clear off excess inventory is called rebate. 18. Option (2) is correct.

Solutions Explanation: State commission can entertain consumer complaints having value upto 2 crore. 19. Option (4) is correct. Explanation: IFCI is the first development bank of the country. 20. Option (1) is correct. Explanation: Controlling means the activities are compared with the determined plans and the deviations are fulfilled to reach the goals. 21. Option (4) is correct. 22. Option (2) is correct. Explanation: The rules can be described as a decision that has to be made by the management regarding the required course of action in a particular situation. 23. Option (1) is correct. Explanation: Gang boss performs the preliminary operations regarding how workers should work on the machine. He also decides about which physical resources such as tools and equipment, etc. are required at the work place and arranges for them. 24. Option (1) is correct. 25. Option (1) is correct. Explanation: Functional organisational structure is appropriate for organisations producing one live of product whereas organisations operating in more-than one live of product should have divisional structure. 26. Option (4) is correct. Explanation: An entrepreneur creates and manages a new business effectively and efficiently. 27. Option (4) is correct. 28. Option (4) is correct. 29. Option (4) is correct. 30. Option (4) is correct. Explanation: Controlling helps in the formulation of future plans by finding the deviations. Controlling helps in the formulation of better future plans for desired goal. 31. Option (2) is correct. Explanation: It is the process of converting the symbols encoded by the sender. After decoding the message is received by the receiver. 32. Option (1) is correct.

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Explanation: The organising function begins with the division of total work into smaller units. Each unit of total work is called a job. The division of work into smaller jobs leads to specialization because jobs are assigned to individuals according to their qualifications and capabilities. 33. Option (2) is correct. Explanation: Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. Clarity in working relationships enables proper execution of work. 34. Option (2) is correct. Explanation: Borrowed funds can be in the form of loans, debentures, public deposits, etc. These may be borrowed from banks, other financial institutions, debenture holders and public. 35. Option (4) is correct. 36. Option (3) is correct. Explanation: Management is both a science as well as an art. Like science it has systematic and well- organised body of knowledge and like an art it requires personal skill, creativity and practice to apply such knowledge in the best possible way. 37. Option (2) is correct. 38. Option (1) is correct. Explanation: Taylor concentrated on improving the performance of this role in the factory set-up. In fact, he identified a list of qualities of a good foreman/supervisor and found that no single person could fit them all. This prompted him to suggest functional foremanship through eight persons. 39. Option (1) is correct. 40. Option (4) is correct. Explanation: Developmental function refers to the steps taken by SEBI in order to provide the investors with a knowledge of the trading and market function. It includes training of intermediaries who are a part of the security market, introduction of trading through electronic means and by making the underwriting an optional system in order to reduce cost of issue. 41. Option (2) is correct. 42. Option (1) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Explanation: That part of a brand which can be recognised but which is not utterable is called brand mark. It appears in the form of a symbol, design, distinct color scheme or lettering.

43. Option (4) is correct. Explanation: Owners’ funds consist of equity share capital, preference share capital and reserves and surpluses or retained earnings. 44. Option (1) is correct. Explanation: If an investor wishes to buy or sell any security he has to first approach a registered broker or sub-broker and enter into an agreement with him. The investor has to sign a broker-client agreement and a client registration form before placing an order to buy or sell securities and also has to provide certain other details and information such as PAN number. 45. Option (3) is correct. 46. Option (1) is correct. 47. Option (1) is correct.

Explanation: Personality tests provide clues to a person’s emotions, his reactions, maturity and value system, etc. These tests probe the overall personality. 48. Option (4) is correct. Explanation: Manpower planning refers to the process of estimating the manpower requirement of an organisation. While estimating the manpower requirement, the management generally keeps in mind the available infrastructure including the technology, production schedule, market fluctuation, demand forecasts, government’s policies and so on. 49. Option (2) is correct. Explanation: Selection is the process of identifying and choosing the best person out of a number of prospective candidates for a job. 50. Option (2) is correct. Explanation: The selection test is done by analysis the intelligence interest of the candidate for choosing the best candidate. Out of all. 

Solutions

SOLUTIONS OF Question Paper

1. Option (1) is correct. Explanation: Management is a ongoing and never ending process as it is required at every stage of the business. The constant identifying the problem and solving them is the duty of the manager.



2. Option (1) is correct. Explanation: Principles of management are not rigid and can be modified as per the situation by the manager. The principles are universally applicable and can be modified as per the nature and requirement of the business.



3. Option (4) is correct. Explanation: Business environment includes all the external and internal forces that affect the working of an organisation.



4. Option (3) is correct. Explanation: Planning is a mental exercise as the plans are modified and changed according to the environment and changes in an organisation. The goals are set keeping all the resources is mind.



5. Option (4) is correct. Explanation: Development increases the professional talent and ability of tackling problems in an organsiation. Development much wider than training as it helps in overall development of an individual.



6. Option (2) is correct. Explanation: Directing takes place at every level of management: Every manager, from top executive to supervisor performs the function of directing.

7. Option (2) is correct. 8. Option (2) is correct.

Explanation: The main objectives of financial planning is to ascertain the amount of fixed capital as well as the working capital required in a given period, to determine the amount to be raised through various sources using a judicious debt-equity mix and to ensure that the required amount is raised on time at the lowest possible cost.

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9. Option (3) is correct. 10. Option (1) is correct.

Explanation: Direct channel does not include any middle men. In this channel manufacturer sells the goods directly to the customer. 11. Option (1) is correct. Explanation: Production cycle is the time span between the receipt of raw material and their conversion into finished goods. Some businesses have a longer production cycle while some have a shorter one. Duration and the length of production cycle, affects the amount of funds required for raw materials and expenses. 12. Option (2) is correct. Explanation: The Bureau of Indian standards, custodian of the ISI mark, has made certification of electrical appliances mandatory. 13. Option (1) is correct. 14. Option (1) is correct. Explanation: Marketing concept emphasise on availability and affordability of the product. 15. Option (1) is correct. 16. Option (2) is correct. Explanation: Planning is said to be pervasive as it is required everywhere in all organisations, at all levels and in all departments. 17. Option (1) is correct. Explanation: Training is any process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased. It is a process of learning new skills and application of knowledge. It attempts to improve their performance on the current job or prepare them for any intended job. 18. Option (1) is correct. 19. Option (1) is correct. Explanation: In controlling the deviations are found by comparing the predetermined goals with the actual performance as analysis every step is not possible.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

20. Option (1) is correct. Explanation: Management is the process of planning and organising the limited resources to achieve specific goals in most effective manner. 21. Option (3) is correct. 22. Option (4) is correct. 23. Option (4) is correct. Explanation: Planning is a time consuming process as all the internal and external process are analysed before formulating a plan may sometimes not work in changing environment. 24. Option (1) is correct. Explanation: Business Environment is said to be dynamic as it keeps changing with the change in different external forces. 25. Option (4) is correct. Explanation: In vestibule training, the workers are trained in a prototype environment on specific jobs in a special part of the plant. An attempt is made to create working condition similar to the actual workshop conditions. 26. Option (1) is correct. Explanation: It refers to a style where the leader gives his subordinates complete freedom to take the decisions. Such a leader does not believe in the use of power unless it is absolutely essential. The followers are given a high degree of independence to formulate their own objectives and ways to achieve them. 27. Option (4) is correct. 28. Option (2) is correct. Explanation: Management is required in all types of organisations whether it is political, social, cultural. Management is considered a universal phenomenon. 29. Option (2) is correct. Explanation: Departmentalization is a process of grouping similar activities into departments which leads to specialization. 30. Option (1) is correct. Explanation: Some part of current assets is usually financed through short-term sources, i.e., current liabilities. The rest is financed through long-term sources and is called net working capital. Thus, NWC = CA – CL (i.e. Current Assets – Current Liabilities.)

31. Option (4) is correct. Explanation: Certificates of Deposit (CD) are unsecured, negotiable, short-term instruments in bearer form, issued by commercial banks and development financial institutions. 32. Option (2) is correct. Explanation: Commercial bills are basically negotiable instruments accepted by buyers for goods or services obtained by them on credit. Such bills being bills of exchange can be kept upto the due date and encashed by the seller or may be endorsed to a third party in payment of dues owing to the latter. 33. Option (1) is correct. Explanation: The FPO mark guarantees that the product was manufactured in a hygenic 'food-safe' environment ensuring that the product is fit for consumption. 34. Option (2) is correct. 35. Option (2) is correct. Explanation: AGMARK is a quality certification mark used for agricultural products. 36. Option (2) is correct. Explanation: Secondary packaging refers to the exterior packaging of the primary packaging that protects the product. 37. Option (4) is correct. Explanation: Fixed capital be financed through long-term sources of capital such as equity or preference shares, debentures, long-term loans and retained earnings of the business. Fixed Assets should never be financed through short-term sources. 38. Option (4) is correct. Explanation: Grievance cells provide the assistance to the consumers and solve there grievances and complaint regarding the product or service. 39. Option (1) is correct. Explanation: SEBI was established to protect the interest of people in the stock market and provide a healthy environment for them. It is the supreme statutory body of capital market to which customers can complain to redress their grievances. 40. Option (2) is correct. 41. Option (3) is correct.

Solutions Explanation: Motivation is an internal feeling. The urge, drives, desires, aspirations, striving or needs of human being, which are internal, influence human behavior. 42. Option (4) is correct. Explanation: Network diagram is a graphical presentation of the variables activities and events relating to a project. 43. Option (1) is correct. Explanation: Creative thinking is a key capability that helps individuals and organisations deal with and manage change. 44. Option (2) is correct. Explanation: Business environment suffers to the sum total all external and internal forces which affect the functioning of an enterprise.

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45. Option (4) is correct. 46. Option (2) is correct. Explanation: Management is pervasive in nature as it is required in every organisation and at all levels of organsiation. Management is said to be universal in nature. 47. Option (1) is correct. Explanation: A functional structure leads to occupational specialisation since emphasis is placed on specific functions. This promotes efficiency in utilisation of manpower as employees perform similar tasks within a department and are able to improve performance. 48. Option (1) is correct. 49. Option (2) is correct. 50. Option (1) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SOLUTIONS OF

Question Paper

1. Option (4) is correct. Explanation: Principles of management acts a base for managers to act accordingly. It enables them to analyses part mistakes and use proper principles for solving recurring problems.



2. Option (1) is correct. 3. Option (2) is correct. Explanation: Business environment is dynamic in nature so the organisations introduce new varities accordingly. Management helps the business to keep themselves updated accordingly.



4. Option (4) is correct. Explanation: Without planning, controlling cannot take place as the predetermined plans are analysed for finding deviations occurring in the business.



5. Option (2) is correct. Explanation: When the work in an organization is divided according to the specialization it leads to minimum wastage of resources as well effective and efficient working.



6. Option (4) is correct. Explanation: Aptitude test is all about analying a person's ability and capacity to learn new skills.



7. Option (1) is correct. Explanation: Every consumer has a right to acquire knowledge about the quality, quantity and specifications of a product.



8. Option (3) is correct. Explanation: Three level channel include 2 intermediaries wholesaler and a retailer.



9. Option (4) is correct. Explanation: Controlling refers to the comparing of actual and standard performance. It analyses the deviations and take corrective measures accordingly.

10. Option (1) is correct.

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Explanation: Every buyer and sellers have different perspective and reason for their activity but the stock exchange is a little bit cased on speculation. 11. Option (1) is correct. Explanation: The revised jurisdiction for entertaining consumer complaints for state commission is more than 50 Lakh to Rs 2 crore. 12. Option (1) is correct. Explanation: Direct channel i.e., zero level not involve any intermediaries. It promotes direct relationship between the manufacturer and the customer. 13. Option (1) is correct. Explanation: Commercial bill is a type of unsecured short-term debt instrument issued by corporation for financing of account payable and inventories, short-term liabilities and payable. 14. Option (2) is correct. Explanation: Participative leadesship is about involving all the members of the group, take a participative role in decision making. 15. Option (1) is correct. Explanation: A democratic leader will develop action plans and makes decisions in consultation with his subordinates. He will encourage them to participate in decisionmaking. 16. Option (1) is correct. Explanation: Declining debt-equity ratio is considered by a commercial banker as it shows the financial stability of an organisation. 17. Option (2) is correct. Explanation: Principles of management can be changed according to the nature of the business and the environment prevailing and affecting the business. 18. Option (3) is correct.

Solutions Explanation: Political environment include all the factors relating to the Government ruling party and legislations approved by them. 19. Option (4) is correct. Explanation: Management is intangible as it cannot be seen or touched one can feel its presence through efficient working, enthusiasm among employees and orderliness. 20. Option (1) is correct. Explanation: Planning reduces creativity as the employees cannot work according to the conditions occurring or the dynamic environment because of the orders given by the top level management. 21. Option (3) is correct. 22. Option (3) is correct. Explanation: Directing refers to the process in which the top level management instructs, encourages and guide subordinates to achieve goals. 23. Option (3) is correct. Explanation: Legal environment includes all the actions and changes taken by the government and the ruling party. 24. Option (4) is correct. Explanation: Promotion leads to increase in salary and gives job satisfaction to the employee but it gradually comes with higher responsibility. 25. Option (4) is correct. Explanation: Money, Material and Menopause all are important for the effective and efficient working of an organization. 26. Option (1) is correct. Explanation: Development of personnel enhances the creativity and learning capacity of an employee. 27. Option (3) is correct. 28. Option (3) is correct. Explanation: Corrective actions is a part of controlling as the deviations are found by comparing actual and standard performance. 29. Option (3) is correct. Explanation: Call money is used for inter banking transactions. Inter Bank transactions has no maturity date and is payable on demand Banks use call money to maintain cash liquidity ratio as per RBI guidelines. 30. Option (1) is correct.

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Explanation: Planning starting with identification of problem and setting objectives accordingly. 31. Option (1) is correct. Explanation: Control is exercised when the actual performance does not match with the standard goals. 32. Option (1) is correct. Explanation: Personal selling is a very effective promotional tool, which helps in influencing the prospects about the merits of a product and thereby increasing its sale. 33. Option (2) is correct. Explanation: A good design can improve performance of a product and also give it a competitive advantage in the market. 34. Option (2) is correct. Explanation: Right to information refers to the informations that should be provided regarding the product. It includes the quality, quantity and other specifications related to the product. 35. Option (1) is correct. 36. Option (1) is correct. Explanation: Directing refers to giving instructions guiding, counselling, motivating and leading the staff in an organization in doing work to achieve organisational goals. 37. Option (3) is correct. Explanation: Primary market is a new issue market where securities are sold for the first time. 38. Option (3) is correct. Explanation: Every consumer has a right to be informed about the specifications of the product consumers grievances should be heard and solved at its earliest. 39. Option (2) is correct. 40. Option (4) is correct. Explanation: Identification and obtaining competitive personnel is a benefit of staffing. 41. Option (4) is correct. Explanation: Management is all about doing the right task at the right time in an effective and efficient manner for achieving the organizational goals. 42. Option (2) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Explanation: Constitution of the country forms the part of legal environment.

43. Option (3) is correct. Explanation: Planning encourages innovative ideas as it is the primary functions of management, new approaches can take the form of actual plans. 44. Option (2) is correct. 45. Option (1) is correct. 46. Option (4) is correct. 47. Option (2) is correct. Explanation: Capital structure refers to the mix between owners and borrowed funds. Capital structure of a company affects both the profitability and the financial risk. A capital

structure will be said to be optimal when the proportion of debt and equity is such that it results in an increase in the value of the equity share. 48. Option (3) is correct. 49. Option (2) is correct. Explanation: As the financial leverage increases, the cost of funds declines because of increased use of cheaper debt but the financial risk increases. The impact of financial leverage on the profitability of a business can be seen through EBIT-EPS (Earning before Interest and Taxes-Earning per Share) analysis. 50. Option (4) is correct. Explanation: Trading on Equity refers to the increase in profit earned by the equity shareholders due to the presence of fixed financial charges like interest. 

Solutions

SOLUTIONS OF

Question Paper

1. Option (3) is correct. Explanation: Gang plank is used in concern with the scalar chain. Scalar chain refers to the chain of authority to the lowest level in the organisation.



2. Option (3) is correct. Explanation: Management as a science is a principle based on experimentation as scientific principles are derived from scientific investigation.



3. Option (3) is correct. Explanation: Base material for assumptions can be in the form of forecasts, existing plans or any past information about policies



4. Option (3) is correct. Explanation: Organising is the establishment of groups according to the work to be performed, defining and delegating the authority to wards the attainment of objective.



5. Option (1) is correct. Explanation: Delegation is a term related to authority to another person to carry out specific activities.

6. 7. 8. 9. 10.

Option (2) is correct. Option (1) is correct. Option (4) is correct. Option (4) is correct. Option (4) is correct. Explanation: Gathering and analysing the information about the service or product supplied to the customer is being done by the company.

11. Option (4) is correct. Explanation: Directing is a process of instructing guiding, inspiring, counselling, overseeing and leading employees towards the attainment of an organizational goal. 12. Option (2) is correct.

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Explanation: the foremost objective is to maximise the shareholders fund. 13. Option (1) is correct. Explanation: Call money is a short term finance repayable on demand having a maturity proud of 1 to 15 day used for interbank transactions. 14. Option (2) is correct. Explanation: Division of work refer to the separation of a work process into a number of task, each performed by a separate person or group which leads to speculation. 15. Option (1) is correct. 16. Option (3) is correct. Explanation: Standardisation is the creation of standards to guide the creation of a good or service based on the conserves of all the relevant. 17. Option (4) is correct. 18. Option (4) is correct. Explanation: Internal recruitment saves rime and money and also motivates the employee to give their best to achieve the goal. 19. Option (2) is correct. Explanation: Directing is required at every level of management. Every manager from top executive to supervisor has to supervise, guide and motivate its subordinate. 20. Option (2) is correct. Explanation: Political environment includes all the laws and legislation made by the government. 21. Option (3) is correct. Explanation: There is no specific qualification or degree require for acting as a manage. There is no restricted entry in their profession. 22. Option (3) is correct. 23. Option (4) is correct. 24. Option (1) is correct.

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES Explanation: The money market deals with the monetary assets of meriting of one year.

25. Option (1) is correct. 26. Option (4) is correct. Explanation: A consumer has fundamental rights and duties towards the society consumer should insist on getting all the information about the product service before making a choice. 27. Option (4) is correct. Explanation: Pillars of marketing product, price, place and promotion. 28. Option (4) is correct. Explanation: Elements of Directing: Communication, Supervision motivation and leadership. 29. Option (2) is correct. Explanation: Organizing is a process of identifying and grouping the work to be performed, defining and delegating the responsibility and authority. 30. Option (2) is correct. Explanation: Branding is a process of creating positive perception of a company in the mind of customer. 31. Option (1) is correct. Explanation: Business environment is dynamic, i.e., it keeps on changing whether in terms of technological improvement, shifts in consumer preferences or entry of new competition in the market. 32. Option (1) is correct. Explanation: Environment happens to be the source of many threats. Environmental awareness can help managers to identify various threats on time and serve as an early warning signal. 33. Option (1) is correct. 34. Option (2) is correct. Explanation: Art requires skillful and personal application of existing knowledge in a creative manner to achieve desired goals. It can be acquired through study, experience and observation.

35. Option (1) is correct. Explanation: Technological environment is the state of science and technology in the country. It is related to the development aspect of the technology is the company's external environment. 36. Option (2) is correct. Explanation: Treasury bills are also known as accrual bonds, is a debt security that does not pay interest but instead trades at a deep discount. 37. Option (2) is correct. 38. Option (3) is correct. 39. Option (4) is correct. 40. Option (3) is correct. 41. Option (4) is correct. Explanation: According to new rules NCDRC will now have jurisdiction to entertain consumer complaints where the values of goods exceeds 2 crore. District commission will have jurisdiction to entertain complaints upto `50 cash and state commission for more than 50 cash and upto 2 crore. 42. Option (1) is correct. Explanation: Transfer involves shifting of an employee from one job to another, one department to another or from one shift to another, without a substantive change in the responsibilities and status of the employee. 43. Option (2) is correct. 44. Option (1) is correct. Explanation: A programme plan is the outline of events and activities that your members follows to reach the goals of the organisation. A successful program plan provides detail and show how each activity supports organisation. 45. Option (3) is correct. 46. Option (2) is correct. 47. Option (3) is correct. 48. Option (4) is correct.

Solutions Explanation: Critical point control means keeping focus on some key areas (KRAs) and if there is any deviation in these key areas, and then it must be attended urgently. Key areas are those which have impact on whole organisation. 49. Option (4) is correct.

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50. Option (1) is correct. Explanation: Controlling is an ongoing and dynamic function of management. It involves a continuous review of performance and is not a one-time exercise. The period of control normally depends upon the nature of work, the amount of work and the policies of management. 

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES

SOLUTIONS OF

Question Paper s 1. Option (2) is correct. Explanation: Division of work refers to the separation of task or duties and is assigned to the employees separately or in groups which automatically leads to specialization.

2. Option (3) is correct. Explanation: Political environment includes the legislations and law approved by the ruling party and the government. It is generally related to the political conditions prevailing in a country.



3. Option (3) is correct. Explanation: Management is a science, an art and a profession.



4. Option (2) is correct. Explanation: Developing premises refers to the setting of assumptions based on past experiences.

5. Option (4) is correct. 6. Option (3) is correct.

Explanation: Workforce analysis reveal about the number and type of employees working in an organisation. It is used to collect, analyse and interpret date to assess current status of the workplace.

7. Option (2) is correct. 8. Option (3) is correct. 9. Option (2) is correct.

Explanation: Promotion refers to informing the target audiences of the relative merits of a product, service, brand or issue. 10. Option (4) is correct. 11. Option (2) is correct. Explanation: Directing refers to the guidance, motivation given by a superior to its subordinate. 12. Option (1) is correct. Explanation: Premises are the base upon which plan are drawn such as existing plans or past information. 13. Option (4) is correct. 14. Option (1) is correct.

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Explanation: The customer should have all the details of the product or service provided to them. It includes the quality, quantity and other specifications of the product. 15. Option (2) is correct. Explanation: Training and development leads to the enhancement of the creativity, skill and ability of an employee to perform the provided task. 16. Option (3) is correct. 17. Option (4) is correct. 18. Option (1) is correct. Explanation: When a company deals in one product the functional structure is most suitable for it. 19. Option (3) is correct. 20. Option (4) is correct. Explanation: Art can be acquired through practice study and observation. 21. Option (1) is correct. Explanation: Economic environment include all economic factors which affect the performance of a business. The factors can be macro and micro and is totally out of the control of the company. 22. Option (4) is correct. Explanation: A leader maintains personal relations and helps followers in fulfilling their needs. He provides needed confidence, support and encouragement and thereby creates congenial work environment. Leader plays a key role in introducing required changes in the organisation. He persuades, clarifies and inspires people to accept changes whole-heartedly. 23. Option (2) is correct. 24. Option (1) is correct. 25. Option (3) is correct. Explanation: Recruitment in the process of securing out, finding and hiring candidates for a specific position. 26. Option (1) is correct.

Solutions Explanation: Controlling ensures that an organisation resources are being used effectively and efficiently for the achievement or predetermined objectives. 27. Option (4) is correct. Explanation: Industries in which technology up-gradation is fast need more amount of fixed capital as when new technology is invented old machines become obsolete and they need to buy new plants and machinery whereas companies where technological up-gradation is slow they require less fixed capital as they can manage with old machines. 28. Option (2) is correct. Explanation: Management is a social process as it is concerned with relation among the people. In management the efforts of human beings (employees) have to be directed, coordinated and neglected by manage. 29. Option (3) is correct. 30. Option (2) is correct. Explanation: If the floatation cost is high, it will be more expensive for the company to raise funds, because the company ends up spending much higher money than it would if floatation cost less. 31. Option (1) is correct. Explanation: Financial planning means deciding in advance how much to spend and on what to spend according to the funds at your disposal. It enables the management to foresee the funds requirements both the quantum as well as the timing. 32. Option (4) is correct. Explanation: Functional structure leads to occupational specialisation as emphasis is placed on specific functions. It promotes control and coordination and efficiency of manpower as employees is improved. 33. Option (1) is correct. 34. Option (3) is correct. Explanation: When the activities are carved out in an orgnisation, the activities are being followed up in between from time to time to analyse whether the activities are performed according to the predetermined standards.

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35. Option (4) is correct. 36. Option (2) is correct. Explanation: Controlling promotes coordination by basically demarcating all activities and efforts into fixed boundaries. It bring are the resources together and enables its employees to work together with unified efforts. 37. Option (4) is correct. 38. Option (3) is correct. Explanation: The consumer protection Act, 1986 is repealed after three decades and replaced by the consumer protection Act, 2019. 39. Option (2) is correct. Explanation: Companies which are expanding and have higher growth plan require more fixed capital as to expand they need to expand their production capacity and to expand production capacity companies need more plant and machinery so more fixed capital. 40. Option (4) is correct. 41. Option (1) is correct. 42. Option (3) is correct. 43. Option (2) is correct. 44. Option (2) is correct. Explanation: Legal environment includes the laws passed by the government as well as the decisions rendered by the various commissions and agencies at every level of the government. 45. Option (3) is correct. 46. Option (1) is correct. 47. Option (4) is correct. Explanation: Offer through prospectus involves inviting subscription from the public through issue of prospectus. 48. Option (2) is correct. Explanation: Private placement is the allotment of securities by a company to institutional investors and some selected individuals. It helps to raise capital more quickly than a public issue. 49. Option (3) is correct. 50. Option (1) is correct. 

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OSWAAL CUET (UG) Sample Question Papers, BUSINESS STUDIES