CBSE Class 12 Business Studies – Mock MCQ Test (50 Questions)
Questions 1‑5
Which of the following best describes “management”?
The art of getting things done through people
The process of instructing workers only
Strict supervision of subordinates
Managing only financial resources
Which principle of management insists on specialization for improving efficiency?
Unity of command
Division of work
Discipline
Scalar chain
The external factors that influence business decisions but are beyond control of business are called:
Internal environment
Micro environment
Macro environment
Participation environment
Which of the following is the first step in the planning process?
Setting objectives
Forecasting
Policy formulation
Decision making
Which of the following is NOT a dimension of controlling?
Ensuring planned activities are being carried out
Correcting deviations
Motivation
Measuring actual performance
Questions 6‑10
Which of the following is a part of “organizing” function of management?
Staffing
Forecasting
Controlling
Motivation
The process of selecting the most suitable person for a job from a group of applicants is known as:
Recruitment
Selection
Placement
Induction
Which of the following marketing mix elements is associated with deciding the pathways through which products reach consumers?
Product
Price
Place
Promotion
Which financial document shows the financial position of a company on a particular date?
Profit & Loss Account
Cash Flow Statement
Balance Sheet
Revenue Account
Which one of the following is a financial market?
Labour Market
Capital Market
Real Estate Market
Commodity Market
Questions 11‑15
Which of the following is NOT a principle of staffing?
Principle of fitting the person to job
Principle of delegation
Principle of equal pay for equal work
Principle of selection before recruitment
Which of the following is considered a non‑price method of promotion?
Discount coupons
Seasonal pricing
Buy-one-get-one offer
Direct mail advertising
The process of guiding and motivating subordinates to accomplish organisational objectives is called:
Directing
Staffing
Organising
Planning
Which of these is NOT a function of money in financial management?
Medium of exchange
Standard of deferred payment
Tool for budgeting
Control over managers
Which one of the following is a consumer right under the Consumer Protection Act?
Right to cancel a gift
Right to be heard
Right to sub‑lease
Right to tax exemption
Questions 16‑20
Which of the following is a quantitative method of sales promotion?
Quality certification
Free sample offer
Company image advertisement
Branding
Which of the following best defines “capital market”?
Market for short-term funds
Market for fixed assets
Market for long-term funds and securities
Foreign exchange market
Delegation involves:
Transfer of authority and responsibility
Transfer of responsibility only
Transfer of authority only
Transfer of accountability only
Which of the following is NOT a part of “marketing concept”?
Customer satisfaction
Integrated marketing
Customer loyalty
Production maximization
Which of the following is a function of marketing?
Risk bearing
Staffing
Controlling
Budgeting
Questions 21‑25
Which of the following is an example of fixed capital requirement for a business?
Payment of wages
Purchasing machinery
Buying raw materials
Payment of electricity bill
Which of the following is a part of “macro environment” of business?
Customers
Suppliers
Government policies
Competitors
Which of the following is an example of “span of control” concept?
Number of subordinates reporting to a superior
Number of planning meetings
Number of departments in an organisation
Number of policies in a company
Which one of the following is a right of consumer regarding “right to information”?
Right to free gift
Right to know quality, quantity, purity, price of goods
Right to demand bonus
Right to refuse service
Which of the following is the last step in controlling process?
Measuring performance
Setting performance standards
Taking corrective action
Comparing actual performance with standards
Questions 26‑30
Which of the following describes “working capital requirement”?
Capital for buying fixed assets
Capital to meet day-to-day expenses
Capital for expansion
Capital for dividend distribution
Which of the following is NOT a feature of “divisional structure” of organization?
Each division operates as separate unit
Uniformity in policies across divisions
Each division has its own resources
Focus on product or region or customer
Which of these is NOT a purpose of planning?
Provides direction
Reduces uncertainty
Succession planning
Facilitates control
Which of the following market component helps companies raise long‑term funds?
Money market
Capital market
Commodity market
Foreign exchange market
Which type of plan specifies the broad future path for an organization?
Standing plan
Single-use plan
Strategic plan
Budget
Questions 31‑35
Which of the following is a pricing strategy based on consumer demand and supply?
Cost‑plus pricing
Penetration pricing
Demand‑based pricing
Skimming pricing
The method of determining and grouping jobs into different grades and pay structures is known as:
Job evaluation
Recruitment
Performance appraisal
Promotion
Which component of marketing mix deals with after‑sales service and warranty?
Product
Price
Place
Promotion
A company issuing new shares to the public to raise funds is referred to as:
Rights issue
Private placement
Public issue
Bonus issue
Which of the following is a “human resource” element of staffing?
Machinery allocation
Recruitment of employees
Marketing of labour
Production planning
Questions 36‑40
Which one of the following is an example of a “direct channel” of distribution?
Manufacturer → Wholesaler → Retailer → Consumer
Manufacturer → Retailer → Consumer
Manufacturer → Agent → Wholesaler → Retailer → Consumer
Manufacturer → Agent → Retailer → Consumer
Which of the following is NOT a function of controlling in management?
Setting standards
Monitoring performance
Organizing manpower
Taking corrective action
Which of the following is NOT a component of business environment?
Social
Political
Internal culture
Technological
Which of the following securities represents ownership in a company?
Debentures
Bonds
Equity shares
Preference shares
Which of the following refers to “after-sale services, warranty, installation support” in marketing mix?
Physical distribution
Product
Promotion
Place
Questions 41‑45
Which of the following is considered “capital structure” for a firm?
Mix of fixed and working capital
Mix of debt and equity funds
Mix of permanent and temporary assets
Mix of human and physical resources
Which of the following marketing concepts gives highest priority to customer needs?
Production concept
Selling concept
Social marketing concept
Marketing concept
Which of the following is a human resource function under staffing?
Division of work
Recruitment and placement
Fixing span of control
Financial planning
Which type of plan remains valid for a long period of time and is used repeatedly?
Single-use plan
Standing plan
Operational plan
Contingency plan
Under the “right to consumer education”, consumer should be made aware of:
Their rights and duties
Price only
Discount offers only
After-sale service only
Questions 46‑50
Which of the following is a ‘defensive’ responsibility of management?
Achieving organisational goals
Safeguarding assets
Ensuring employee welfare
Employee training
Which of the following describes “primary market”?
Market for trading existing securities among investors
Market for issuing new securities to public
Market for foreign exchange
Market for commodities
Which of the following is NOT included in “promotion mix”?
Advertising
Personal selling
Financing
Publicity / Public relations
Which of the following is a limitation of planning?
Focus on few objectives only
Reduces uncertainty completely
Encourages flexibility
Facilitates coordination
Which of the following refers to “physical distribution and logistics” in marketing mix?
Product
Price
Place
Promotion
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