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MCQ Questions for Class 12 Business Studies Set-3
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1. Which one of the following is a step of controlling?
Assessing personnel required
Taking corrective action
Assessing environment
Taking disciplinary action
2. ___ is the process of ensuring that actual results are in accordance with planned results.
Controlling
Coordinating
Planning
Directing
3. ___ is the focus point for a manager while controlling, as controlling at every step is not possible
Controlling
Coordinating
Critical point control
Both (a) and (b)
4. Controlling is ___.
Forward looking
Backward looking
Continous process
All of these
5. In a marketing firm, the Financial Manager pays more attention towards an increase of 3% in the marketing cost as compared to a 15% increase in the courier expenses. Identify the concept being used by the manager.
Management by exception
Critical point control
Corrective action
None of the above
6. Reducing the workers, absenteeism in a factory by 20% is an example of
Quantitative standard
Qualitative standard
Deviation
None of the above
7. The need for the controlling function is felt in
Business organisations
Political organisations
Social organisations
All of the above
8. When the deviations between the actual performance and the planned performance are within the limits
A limited corrective action is required
No corrective action is required
A major corrective action is required
None of the above
9. The comparison of actual performance with the planned performance becomes easier if the standards are set in
Qualitative terms
Quantitative terms
Either of the above
None of the above
10. Identify the correct sequence of the steps involved in the controlling process.
Measurement of actual performance, Taking corrective action, Setting performance standards, Comparison of actual performance with standards, Analysing deviations
Comparison of actual performance with standards, Setting performance standards. Measurement of actual performance, Analysing deviations, Taking corrective action
Setting performance standards, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Taking corrective action
Taking corrective action, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Setting performance standards
11. Deviations are said to be positive in nature when
Planned performance is more than the actual performance
Actual performance is more than the planned performance
Both planned and actual performances are same
None of the above
12. The controlling function is performed by
Top level management
Lower level management
Middle level management
All of the above
13. Om Prakash has set up a small business unit for the manufacturing of detergent. In order to market the detergent in the local residential areas, he has appointed a team of ten salesmen. Each salesman is expected to sell at least 200 units of the detergent within a week’s time. Identify the point of importance of controlling being highlighted in the above case.
Controlling helps in judging accuracy of standards.
It ensures efficient use of resources.
It helps in improving employee motivation.
It facilitates co-ordination in action.
14. Which of the following is not an importance of controlling function?
It ensures order and discipline.
It restricts co-ordination in action.
It helps in judging accuracy of standards.
It improves employee motivation.
15. Yash runs a logistic company. The Tour Incharges of each trip in the company are expected to submit a report to the Event Manager on the completion of every trip. Identify the step in the controlling process being described in the above lines.
Setting of standards
Measurement of actual performance
Taking corrective action
Analysing the deviations
16. Controlling is known as a backward-looking function because
It relates to future course of action.
It is like a post-mortem of the past activities
To find out deviation, it aims at improving future performance.
All of the above
17. In an artificial plants manufacturing unit, the standard output set for a worker is 50 units per day. Dinesh produces 48 units in one day. In the given case, the value of deviation is
-2
+ 2
98
None of the above
18. This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling nothing.
Critical point control
Key result areas
Management by exception
Deviations
19. Which one of the following is related to planning, organising, directing and controlling of financial activities?
Financial decision
Capital structure
Investment decision
Financial management
20. Wealth maximisation depends on
market price per share.
market price of finished good.
market price of inventory.
market price of fixed assets.
21. Investment decision involves
investment in fixed assets.
investment in current assets.
investment in fixed and current assets.
investment in Government securities.
22. If dividend portion of total earnings is high, portion of retained earnings will be
high.
low.
moderate.
equal.
23. Financial procedures are determined by
financial planning.
financial leverage.
financial decisions.
capital structure.
24. Capital structure shows
Debtor-creditor ratio.
Fixed assets-current assets ratio.
Debt-equity ratio.
Interest coverage ratio.
25. Fixed capital requirements are determined by
nature of business.
nature of business environment.
nature of Government control.
nature of marketing efforts.
26. Working capital requirements are low when an organisation has
high technology.
high debtors.
high inventory.
high creditors.
27. If the rate of return on investment for a company is 16%, a situation of unfavourable financial leverage will be said to arise when the rate of interest payable on debt capital is
More than 16 %
Less than 16 %
Equal to 16%
None of the above
28. Which one of the following is not a function of financial market?
Mobilisation of savings
Price determination of securities
Floating of companies
Lowering transaction cost
29. Which one of the following is a money market instrument?
Unit of mutual fund
Debenture
Bond
Treasury bill
30. Which one of the following is a money market instrument?
Unit of mutual fund
Debenture
Bond
Treasury bill
31. SEBI is a regulator of
capital market.
money market
commodity market.
overseas market
32. ___ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.
Treasury bill
Commercial paper
Certificate of deposit
Promissory note
33. ___ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.
Treasury Bill
Commercial Paper
Certificate of Deposit
Call Money
34. ___ is the market which helps existing investors to sell their securities.
Primary market
Secondary market
Capital market
Commodity market
35. ___ is the institution which provides a platform for trading of existing securities having long-term maturity.
SEBI
WTO
Stock exchange
RBI
36. After the trade has been executed, the broker issues a Contract Note to the investor within
52 hours
24 hours
48 hours
12 hours
37. On this day, the exchange will deliver the share or make payment to the other broker,
Pay-in day
Pay-out day
Transaction day
None of the above
38. The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is
Date of birth and address
PAN number
Residential status (Indian/NRI)
Bank account details.
39. It is a number assigned to each transaction by the stock exchange and is printed on the contract note.
PAN number
Unique Order Code
Contract Note
None of the above
40. It acts like a bank and keeps securities in electronic form on behalf of the investor,
Depository Participant
Depository
Stock exchange
None of the above
41. The process of holding shares in electronic form is known as
Demutualisation
Dematerialisation
Speculation
None of the above
42. Stock Exchange works as a mechanism for valuation of securities through the forces of demand and supply. Identify the related function of performed by the stock exchanges.
Providing liquidity and marketability to existing securities.
Safety of transaction.
Pricing of security.
Spreading of equity cult.
43. PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank intum will offer the shares to general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
Private placement
Offer through prospectus
Offer for sale
Rights issue
44. Which of the following participants represent capital market?
Development banks
Commercial banks
Stock exchanges
All of the above
45. A company can raise capital through the primary market in the form of
Equity shares
Preference shares
Debentures
All of the above
46. It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
Commercial bill
Commercial papers
Call money
None of the above
47. With which element is exchange mechanism related?
Publicity
Marketing
Advertising
Branding
48. Which one of the following is a marketing management philosophy?
Societal marketing concept
Distribution concept
Direct marketing concept
Channel concept
49. Which one of the following is not a marketing mix?
Product
Physical distribution
Product pricing
Production process
50. Which one of the following factors is not relevant to price fixation?
Obtaining market leadership
Age of an organisation
Value for money
Product differentiation
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