Board Exam Questions Class 12 Business Studies

Please refer to Important Question of Business Studies Class 12 which has been prepared based on questions that have come in past year examinations. These solved Important Question of Business Studies Class 12 have been prepared keeping into consideration expected questions in this tear exams. Also, refer to MCQ Questions for Class 12 Business Studies which are also expected to be asked in current year exams.

Important Question of Business Studies Class 12

Chapter 1 Nature and Significance of Management

Chapter 2 Principles of Management

Chapter 3 Business Environment

Chapter 4 Planning

Chapter 5 Organising

Chapter 6 Staffing

Chapter 7 Directing

Chapter 8 Controlling

Chapter 9 Financial Management

Chapter 10 Financial Markets

Chapter 11 Marketing Management

Chapter 12 Consumer Protection

Fill in the blanks

Question:___________ refers to a chronological sequence of steps to be taken to perform an activity.

Question: ‘No smoking’ is an example of ________________________.

Question: Since everyone requires planning, it is considered_____________.

Question: Planning_____________________________ uncertainty.

Question: Planning establishes standards to perform the function of_______________.

Question: ___________________ are the assumption on which planning is based.

Question: Planning involves thinking about_____________________ for doing actions in present.

Question:___________________ is formulated after considering activities of the competitors.

Question: Policies are _________________ to action.

Question : __________________________ of a BBA college can be to increase students by 20% in 6 months.

Question: Planning is the ____________________________ function of management.

Question : ______________ decision is concerned with disposal of surplus.

Question: Amount invested in _______________________ is known as fixed capital.

Question: Excess of current assets over current liabilities is known as_____________.

Question : ________________ capital keeps on circulating in business.

Question: Allocation of funds among assets is known as_______________ decision.

Question: Funds invested in plant and machinery are a part of ____________ capital.

Question : Wealth maximisation means maximisation of________________ of shares.

Question: ____________________ raises the return of equity shareholders by making use of debt in the capital structure.

Question: Use of more debt will increase EPS only when return on investment is_________________ than cost of debt.

Question: Increased use of debt increases the _________________ risk of business.

Question: _____________ is the risk of inability to meet fixed operating costs.

Question: Length of operating cycle_________________ affects the requirements of working capital.

Question : The decision taken to invest in fixed assets are known as__________ decisions.

Question: __________________ decision is concerned with deciding how much to raise from owner’s funds and how much from borrowed funds.

Question: According to___________________, consumer has a right to be protected against hazardous goods.

Question: Consumer must look for ___________ mark of electrical appliances.

Question: _________________ mark is the quality mark for food products.

Question: If aggrieved party is not satisfied with order of District Forum, then he can appeal to___________________.

Question: Appeal to next higher redressal agency has to be made within_____________ days of passing the order.

Question: A complaint to National Commission can be made when claim amount exceeds______________.

Question: ____________________ serves as a proof of purchase at the time of filling a complaint.

Question: According to _________________, consumer has the right to get relief against any unfair trade practice.

Question: According to _________________, consumer has the right to file a complaint in case of dissatisfaction.

Question : According to _________________, consumer has the right to select from a variety of goods and services at competitive prices.

Question: Consumer does not include any person who buys goods for _______________ or for _______________________________.

Multiple Choice Questions

Question: Control is exercised:
a) When something goes wrong
b) When the efficiency is to be improved
c) Regularly
d) When the management desires

Question: Corrective action is a part of:
a) Planning
b) Organising
c) Controlling
d) All of the above

Question: Controlling involves:
a) Comparison of actual and standard performance
b) Checking deviations
c) Taking corrective actions
d) All of the above

Question: Which of the following is not essential element of an effective control system?
a) Rigid
b) Flexible
c) Economical
d) Simple

Question: Which of the following is the part of controlling process?
a) Setting performance standards
b) Measuring and comparing performance
c) Taking corrective action
d) All of the above

Question: Management by exception states that management should:
a) Check everything without exception
b) Invariably take corrective action without exception
c) Accept exceptions in emergencies
d) Concentrate their attention on exceptions

Question: The main objective behind controlling is:
a) Punishing the guilty
b) Fixing responsibility of the subordinate
c) Ensuring conformity of performance with established standards
d) Creating a fear for discipline

Question: Name the technique of scientific management which focuses on separation of planning and execution function.
a) Functional Foremanship
b) Standardisation
c) Motion Study
d) Differential Piece Wage System

Question: Aditi, a manager, expects her subordinates to adapt to new environment and working conditions without giving them time to settle down. Which principle of management is being overlooked?
a) Initiative
b) Espirit De Corps
c) Stability of personnel
d) Equity

Question: Name the technique of scientific management which differentiates between efficient and inefficient workers.
a) Fatigue Study
b) Functional Foremanship
c) Simplification
d) Differential Piece Wage System

Question: At which level of management, does “ Operations Manager” work?
a) Top Level
b) Operational Level
c) Middle Level
c) Supervisory Level

Question: This concept of management harmonises, synchronises and unifies individual efforts for better action and for the achievement of the business objectives.
a) Coordination
b) Delegation
c) Decentralisation
d) Organisation Structure

Question: Span of management refers to
a) Number of managers
b) Length of term for which a manager is appointed
c) Number of subordinates under a superior
d) Number of members in top management

Question: Grapevine is:
a) Formal Communication
b) Barrier to communication
c) Lateral Communication
d) Informal Communication

Question: The process of converting the message into communication symbols is known as
a) Media
b) Encoding
c) Feedback
d) Decoding

Question: Motivation is a complex process as:
a) It is an internal feeling
b) It can be both positive or negative
c) Individuals are heterogeneous in their expectations, perceptions and reactions
d) It produces goal directed behaviour

Question: At which level directing takes place:
a) Top level
b) Middle level
c) Operational or supervisory level
d) At all levels

Question: Which concept of management propagates the belief that people are competent, capable and resourceful. They can assume responsibility for the effective implementation of their decisions.
a) Delegation
b) Decentralisation
c) Leadership
d) Coordination

Question: It provides the framework which enables the enterprise to function as an integrated unit by regulating and coordinating the responsibilities of individuals and departments.
a) Management
b) Coordination
c) Planning
d) Organisation structure

Question: Which is the simplest type of plan?
a) Policy
b) Method
c) Rule
d) Objectives

Question: Which type of plan provides a basis for interpreting strategy?
a) Policy
b) Rule
c) Objectives
d) Budget

Question: Name the process of searching for prospective employees and stimulating them to apply for jobs in an organisation.
a) Recruitment
b) Selection
c) Placement
d) Orientation

Question: This provides the requisite amount, quality, timing and sequence of efforts which ensure that planned objectives are achieved with minimum conflict.
a) Management
b) Coordination
c) Delegation
c) Organising

Question: Henri Fayol was a :
a) Social Scientist
b) Mining Engineer
c) Accountant
d) Production Engineer

Question: Which of these is not a work study technique:
a) Time Study
b) Motion Study
c) Functional Foremanship
d) Fatigue Study

Question: Which of these is not a feature of business environment?
a) Relativity
b) Pervasive
c) Uncertainty
d) Complexity

Question: It refers to evaluating an employee’s current and/or past performance against certain predetermined standards.
a) Performance measurement
b) Controlling
c) Performance Appraisal
d) Career planning

Question: _______________________are also known as Zero Coupon Bonds.

Question:________________________ is used by banks to maintain Cash Reserve Ratio.

Question: Instruments of money market enjoy a higher degree of liquidity due to presence of_______________________.

Question: Under____________________ company issues capital to public through online system of stock exchange.

Question: ________________________ is an unsecured instrument and is issued only by large and creditworthy companies.

Question:_______________________ gives pre-emptive right to the existing shareholders.

Question: Money market deals in securities with maximum tenure of________________.

Question: In ____________________________ market, prices of securities are determined by demand and supply of the securities.

Question: ___________________ was established to protect the interests of investors and to develop and regulate the securities market.

Question: ___________________ market requires less investment as value of securities is generally low.

Question: _____________________ market directly contributes to capital formation.

Question: Which market directly contributes to capital formation?
a) Money market
b) Capital market
c) Primary market
d) Secondary market

Question: Which instrument of money market is generally used for inter-bank transactions?
a) Treasury bill
b) Commercial paper
c) Call money
d) Commercial bill

Question: Which method of new issue refers to allotment of securities to institutional investors and selected individuals?
a) Right issue
b) E-IPOs
c) Offer for sale
d) Private placement

Question: Which money market instrument is used to finance credit sales of firms?
a) Commercial bill
b) Commercial paper
c) Certificate of deposit
d) Call money

Question: Which market deals in sale purchase of previously issued securities?
a) Money market
b) Capital market
c) Primary market
d) Secondary market

Question: Which of the following falls in the category of Zero coupon Bond
a) Treasury bill
b) Commercial paper
c) Certificate of deposit
d) Commercial bill

Question: Which of the following is the method of collecting capital?
a) Public issue
b) Offer for sale
c) Private placement
d) All the above

Question: Sensex is dependent on ____________ companies.
a) 30
b) 50
c) 100
d) 500

Question: The index of NSE is called______________.
a) INDEX
b) NIFTY
c) SENSEX
d) LISTING

Question: Educating the investors is the _______________ function of SEBI.
a) Protective
b) Regulatory
c) Both the above
d) Developmental

Question: Which of the following takes advantage of the internal trading?
a) All shareholders
b) All debenture holders
c) People having secrete information of the company
d) All the employees

Question: Primary and secondary markets:
a) Complete with each other
b) Complement each other
c) Function independently
d) Control each other

Question: A treasury bill is basically:
a) An instrument to borrow short-term funds
b) An instrument to borrow long-term funds
c) An instrument of capital market
d) None of the above

Question: Which of the following is the supply side of finance?
a) Financial institutions
b) Insurance companies
c) Financial institutions and insurance companies
d) Industry

Question : Management principles provide the ________________________ relating to the subject.

Question: There is a ________________and_______________ relationship in the management principles.

Question : Mental revolution is a part of____________ management.

Question : _____________________ is known as the father of scientific management.

Question : Functional foremanship is an extension of________________________.

Question : Scalar chain is also known as the chain of____________________.

Question : Fayol also suggested a short cut to scalar chain, known as__________________________.

Question : According to__________________________ each subordinate must have only one boss.

Question : Fyol classified team spirit as____________________.

Question: Under differential piece rate plan, efficient and inefficient workers are paid at_________________ rate.

Question:_____________________ means that there should be one head for one plan.

Question: According to principle of_____________ workers performing similar jobs should be paid the same wage rate.

Question: Since management principles are practised in all types of organisations, they have__________________.

Question: According to ______________________ workers must be given reasonable time to show results.

Question: Which company did Taylor join in America in 1878 as a labourer?
a) Bethlehem Steel Works
b) American Steel Company
c) Midvale Steel Company
d) None of these

Question: Market concept is ______________________ than selling.

Question: Marketing focuses on the needs of______________________.

Question: _____________________________is an extension to marketing concept.

Question : ____________________________refers to any person or organisation that takes more active part in the process of exchange.

Question: _______________________concept focuses on availability and affordability of the product.

Question : ________________________ concept assumes that customers can be persuaded and manipulated to buy the products.

Question: ________________concept emphasise on quality of the product.

Question: _____________________________ refers to classifying the products into different groups with same characteristics.

Question: ___________________acts as a silent salesman as it induces customers to buy the product.

Question: An established_________________________ helps to build goodwill of the firm and increase in sales.

Question:_____________________ creates time utility.

Question: _________________ mix involves decision regarding channels of distribution, transportation, warehousing, etc.

Question: In which channel, manufacturers sell the goods directly to the customers?
a) Direct channel
b) One level channel
c) Two level channel
d) Three level channel

Question: Which concept of marketing emphasise on availability and affordability of the product?
a) Marketing concept
b) Product concept
c) Sales concept
d) Production concept

Question: Which tool of promotion mix is an impersonal paid form of communication?
a) Sales promotion
b) Personal selling
c) Publicity
d) Advertisement

Question: Which one is not an element of marketing mix?
a) Product
b) Promotion
c) Protection of consumer
d) Place

Question: Which marketing concept places importance to attract and persuade customers to buy the products?
a) Selling concept
b) Product concept
c) Production concept
d) Marketing concept

Question: A cardboard box consisting of 10 packets of 1 kg sugar is an example of:
a) Primary packaging
b) Secondary packaging
c) Transportation packaging
d) None of the above

Question: A manufacturer sells the goods to a retailer and retailer sells the goods to customers. Identify the type of channel of distribution:
a) Direct channel
b) One level channel
c) Two level channel
d) Three level channel

Question: Which channel of distribution does not include indirect channels?
a) Zero level
b) One level
c) Two level
d) Three level

Question: Write the difference between Henri Fayol and F.W. Taylor on the basis of unity of command.

Question: Name the selection test which is a good indicator of a person’s future success score.

Question: Which tool of promotion mix involves direct face-to-face conversation with prospective customer?
a) Sales promotion
b) Personal selling
c) Advertisement
d) Publicity

Question: Manager + Leadership ability = __________________
a) Loss
b) Success
c) Failure
d) Nothing (Zero)

Question: ___________ is necessary for the existence of a leader.
a) Manager
b) Employee
c) Follower
d) Worker

Question: Which of the following is the characteristic of leadership?
a) Influencing process
b) Physical features
c) Knowledge
d) Integrity

Question: Which of the following leadership styles has the specialty of centralized authority?
a) Autocratic leadership style
b) Democratic leadership style
c) Free-rein leadership style
d) None of the above

Question: From which of the following leadership styles yields the advantage of high level motivation?
a) Autocratic leadership style
b) Democratic leadership style
c) Free-rein leadership style
d) None of the above

Question: In order to complete the process of communication, there should at least be________________ persons.
a) One
b) Two
c) Three
d) Four

Question: During the process of communication there is an exchange of______________.
a) Ideas
b) Orders
c) Feelings
d) All the above

Question: In the process of communication, feedback aims at knowing_______________________________________.
a) Message has been properly received
b) Message has been understood
c) Both the above
d) Message has been followed

Question:________________ is an example of the medium of communication.
a) Letter
b) Telephone
c) E-Mail
d) All the above

Question: Loss of letter during the process of communication is the example of____________________.
a) Decoding
b) Message
c) Encoding
d) Noise

Question: ‘Wrong interpretation of message’ – what type of communication barrier is it?
a) Semantic
b) Emotional
c) Organisational
d) Personal

Question: ‘Lack of attention’ – What type of communication barrier is it?
a) Semantic
b) Emotional
c) Organisational
d) Personal

Question: Which of the following is the personal communication barrier?
a) Fear of challenge to authority
b) Organisational Policies
c) Unclarified assumptions
d) Premature evaluation

Question: Which of the following communication spreads rumours?
a) Formal
b) Informal
c) Written
d) All the above

Question: Which of the following communication spreads quickly?
a) Formal
b) Informal
c) Written
d) All the above

Question: The process of converting the message into communication symbols is known as:
a) Feedback
b) Decoding
c) Media
d) Encoding

Question: Which one of the following is not an element of directions?
a) Motivation
b) Communication
c) Delegation
d) Supervision

Question: The motivation theory which classifies needs in hierarchical order is developed by:
a) Fred Luthans
b) Scott
c) Abraham Maslow
d) Peter F. Drucker

Question: Which of the following is a financial incentive?
a) Promotion
b) Stock incentive
c) Job security
d) Employee participation

Question : Which of the following is not an element of communication process?
a) Decoding
b) Communication
c) Channel
d) Receiver

Question: Status comes under the following type of barriers:
a) Semantic barrier
b) Organisational barrier
c) Non semantic barrier
d) Psychological barrier

Question: The highest level need in the Need Hierarchy of Abraham Maslow:
a) Safety need
b) Belongingness need
c) Self-actualisation need
d) Prestige need

Question: The process of converting the message into communication symbols is known as:
a) Media
b) Encoding
c) Feedback
d) Decoding

Question: In the communication process, there is an exchange of_______________ (Money/Ideas).

Question: Providing the free car facility in addition to the salary is an example of ______________ of financial incentive. (Perquisites/Bonus)

Question:_____________ refers to giving the employee more freedom to take decisions. (Employee Empowerment/Job security)

Question:____________ is an important financial incentive. (Status/Bonus)

Question: Under_____________ communication, there is a prescribed path for sending messages from one person to another. (Formal/Informal)

Question: _____________________________ is a limitation of formal communication. (Overload of work/Unsystematic communication)

Question: _____________ is an example of semantic barrier. (Faulty translation/Distrust)

Question: Absence of appropriate incentive comes under the___________ barrier of communications. (Personal/Organisational)

Question: Unwillingness to communicate is an example of ___________ barrier. (Personal/Psychological)

Question: Which of the following aims at examining the interest of the candidate?
a) Intelligence test
b) Interest test
c) Aptitude test
d) All of these

Question : What does the Reference and Background test aims at knowing about the candidate?
a) Verifying information
b) Gaining addition information
c) Both (a) and (b)
d) Economic condition

Question: After crossing the bar of physical test which letter is given to the selected person?
a) Letter of regret
b) Appointment letter
c) Both the above
d) None of these

Question: What is included in Psychological Test?
a) Interest test
b) Intelligence test
c) Aptitude test
d) All of these

Question: Under training the employees are trained in ________ field/fields.
a) A particular
b) Two
c) Three
d) All of these

Question: The meaning of development is to make the employees efficient in ___________field/fields.
a) A particular
b) Two
c) Three
d) All of these

Question: The word development is linked or associated with:
a) Managers
b) Workers
c) Supervisors
d) Workers and supervisors

Question : The word training is associated with:
a) Managers
b) Workers
c) Supervisors
d) Workers and supervisors

Question: When a person undergoes a course is engineering, is:
a) Training
b) Education
c) Development
d) All of these

Question: Which of the following training is given to the top level managers?
a) Labour relations
b) Financial management
c) Production management
d) All of these

Question: Under which training method factory like conditions are created?
a) Induction training
b) Apprenticeship training
c) Vestibule training
d) Internship training

Question : Under which training method, both the technical institutes and the business organisations jointly impart training to their members?
a) Induction training
b) Apprenticeship training
c) Vestibule training
d) Internship training

Question : Distribution of work is the basis of____________. (Planning/Organising)

Question : The ___________ is regarded as the machine of management. (Planning/Organising)

Question : _____________ yields a company benefits of specialisation.

Question : Organising is helpful in fixing the___________________. (Accountability/Volume of profit.

Question: ___________ gives a clear account of different duties to be performed and authority received by each worker. (Controlling/Organising)

Question: Organisational structure is the result of the process of________________. (Planning/Organising)

Question: _______________ can be defined as the framework within which managerial and operating tasks are performed. (Organisational structure/Planning)

Question: ________________ organisation refers to the organisation structure which is designed by the management to accomplish a particular task. (Formal/Informal)

Question: ____________ organisation makes it clear who will report to whom. (Formal/Informal)

Question: ___________ organisation has no place on the organisation chart. (Formal/Informal)

Question: Which of the following qualities the standards should have?
a) Achievable
b) Measurable
c) Flexible
d) All of these

Question: Which of the following types a deviation cab be?
a) Negative
b) Positive
c) None (Nil)
d) All of these

Question: Which deviation is the most important?
a) Negative
b) Positive
c) None (Nil)
d) All of these

Question: ________________ is not included in the controlling process.
a) Measurement of actual performance.
b) Comparison of actual performance with standards.
c) Doing work of financial management.
d) Analysing deviations

Question: Which type of nature the control has?
a) Positive approach
b) Negative approach
c) Both (a) and (b)
d) None of these

Question: An efficient control system helps to:
a) Achieve objectives
b) Boost employee’s Morale
c) Efficient use of resources
d) All of these

Question: An efficient control system helps to:
a) Accomplish organisational objectives
b) Boost employee’s morale
c) Judge accuracy of standards
d) All of these

Question: Controlling function of an organisation is:
a) Forward looking
b) Backward looking
c) Forward as well as backward looking
d) None of these

Question: How does a manager want to achieve his objectives?
a) Efficiently
b) Effectively
c) Efficiently and Effectively
d) None of these

Question: What type of force management is:
a) Visible
b) Invisible
c) Separate
d) None of these

Question: By evaluating results what does management try to find out and then takes corrective actions?
a) Profit
b) Loss
c) Deviations
d) None of these

Question: In the context of business what does research refer to?
a) Finding out new products
b) Finding out new markets
c) Finding out new methods of distribution
d) All of the above

Question: What happens when the management of an organisation gets weakened?
a) Organisation progresses
b) Production increases
c) Profit increases
d) Organisation faces heavy loss

Question: Which one of the following sequence of process of management is correct?
a) Directing, planning, controlling, organising, staffing
b) Directing, staffing, planning, organising, controlling
c) Planning, organising, staffing, directing, controlling
d) Organising, planning, staffing, controlling, directing

Question: Management is:
a) An activity
b) A process
c) A tradition
d) An illusion

Question: Management ensures:
a) Providing employment opportunities
b) Maintaining profit
c) Ensuring maximum utilisation of resources
d) Control on cost

Question: Management is important because:
a) It helps in achieving group goals
b) It helps in development of society
c) It increases efficiency
d) All of the above

Question : The bar council of India is a representative organisation of___________________________.

Question : On the basis of _____________________________management can be called a full-fledged profession.

Question: Creative power is the speciality of _______________________