Thursday, December 04, 2025

CLASS 12 BUSINESS STUDIES MCQs

 CLASS 12 BUSINESS STUDIES

UNIT–1: NATURE & SIGNIFICANCE OF MANAGEMENT (CHAPTER 1)

10 MCQs

  1. Management is considered a ___
    a) Science
    b) Art
    c) Profession
    d) All of these

  2. The main objective of management is:
    a) Profit maximisation
    b) Coordination of activities
    c) Maintaining discipline
    d) Reducing competition

  3. Which function of management involves “thinking before doing”?
    a) Organising
    b) Planning
    c) Directing
    d) Controlling

  4. Management is ___ because it is applicable to all types of organisations.
    a) Goal-oriented
    b) Pervasive
    c) Multidimensional
    d) Intangible

  5. “Getting things done through people” is said by:
    a) Henry Fayol
    b) F.W. Taylor
    c) Koontz and O’Donnell
    d) Peter Drucker

  6. Which level of management frames policies?
    a) Top level
    b) Middle level
    c) Lower level
    d) None

  7. Directing includes:
    a) Motivation
    b) Leadership
    c) Supervision
    d) All of these

  8. Management aims at achieving ___ objectives.
    a) Social
    b) Organisational
    c) Personal
    d) All of these

  9. Which of the following is not a characteristic of management?
    a) Continuous process
    b) Group activity
    c) Static in nature
    d) Intangible

  10. Management is needed at:
    a) Top level only
    b) Middle level only
    c) All levels
    d) Operational level only


UNIT–2: PRINCIPLES OF MANAGEMENT (CHAPTER 2)

10 MCQs

  1. Who is known as the Father of Scientific Management?
    a) Henry Fayol
    b) F.W. Taylor
    c) Elton Mayo
    d) Koontz

  2. “Unity of Command” means:
    a) One boss, one plan
    b) One boss, one subordinate
    c) One boss, one order
    d) Many bosses, one plan

  3. “Science, not rule of thumb” is associated with:
    a) Fayol
    b) Taylor
    c) Drucker
    d) Maslow

  4. Mental revolution relates to change in attitude of:
    a) Supervisors
    b) Workers
    c) Both management & workers
    d) Customers

  5. “Scalar Chain” refers to:
    a) Formal line of authority
    b) Informal communication
    c) Discipline
    d) Unity of direction

  6. Standardisation and simplification relate to:
    a) Scientific management
    b) General principles
    c) Controlling
    d) Motivation

  7. “Gang Plank” is related to:
    a) Fayol
    b) Taylor
    c) Both
    d) None

  8. Functional foremanship was developed by:
    a) Fayol
    b) Taylor
    c) Maslow
    d) Mayo

  9. In Taylor’s technique, “Differential piece wage system” aims at:
    a) Increasing wages
    b) Penalising inefficient workers
    c) Rewarding efficient workers
    d) Both b & c

  10. Which is NOT a principle of management?
    a) Equity
    b) Unity of direction
    c) Gang plank
    d) Stability of tenure

CHAPTER 3 – BUSINESS ENVIRONMENT

10 MCQs

  1. Business environment is:
    a) Internal
    b) External
    c) Both
    d) None

  2. Which of the following is a feature of business environment?
    a) Dynamic
    b) Uncertain
    c) Interrelated
    d) All of these

  3. Liberalisation means:
    a) Removing trade barriers
    b) Increasing taxes
    c) Increasing government control
    d) None

  4. GST implementation is an example of:
    a) Economic environment
    b) Technological environment
    c) Legal environment
    d) Social environment

  5. Demonetisation (2016) was a part of:
    a) Social change
    b) Technological policy
    c) Political environment
    d) Economic environment

  6. Which is NOT a component of micro environment?
    a) Customers
    b) Competitors
    c) Political conditions
    d) Suppliers

  7. “Increase in working women” represents:
    a) Economic environment
    b) Social environment
    c) Technological environment
    d) Legal environment

  8. Scanning business environment means:
    a) Analysing opportunities & threats
    b) Asking competitors
    c) Hiring more staff
    d) None

  9. Globalisation leads to:
    a) More competition
    b) Less competition
    c) No competition
    d) Only foreign trade

  10. Political stability helps business by:
    a) Creating uncertainty
    b) Increasing risk
    c) Encouraging investment
    d) Reducing employment

CHAPTER 4 – PLANNING

10 MCQs

  1. Planning is a ___ function of management.
    a) First
    b) Last
    c) Middle
    d) Optional

  2. “No plan is perfect” refers to which limitation?
    a) Time-consuming
    b) Rigid
    c) Lack of accuracy
    d) Costly

  3. Strategy is formulated at:
    a) Lower level
    b) Middle level
    c) Top level
    d) All levels

  4. Which of the following is NOT a feature of planning?
    a) Goal-oriented
    b) Futuristic
    c) Reduces risk completely
    d) Continuous

  5. Standing plans include:
    a) Rules
    b) Budgets
    c) Programmes
    d) Strategy

  6. “Planning reduces creativity” is a:
    a) Feature
    b) Limitation
    c) Objective
    d) None

  7. A plan prepared for one-time use is:
    a) Rule
    b) Programme
    c) Budget
    d) Strategy

  8. Which of these is NOT a step in planning?
    a) Setting objectives
    b) Developing premises
    c) Fixing responsibility
    d) Identifying alternatives

  9. Which helps in achieving coordination?
    a) Policies
    b) Rules
    c) Planning
    d) Strategy

  10. Planning focuses on:
    a) Present
    b) Past
    c) Future
    d) None

CHAPTER 5 – ORGANISING

10 MCQs

  1. Delegation includes:
    a) Authority
    b) Responsibility
    c) Accountability
    d) All

  2. Which is NOT an element of delegation?
    a) Authority
    b) Responsibility
    c) Motivation
    d) Accountability

  3. Decentralisation means:
    a) Retaining authority
    b) Delegating authority
    c) Centralising authority
    d) None

  4. Scalar chain represents:
    a) Informal authority
    b) Chain of command
    c) Financial chain
    d) None

  5. “Work is divided into small jobs” refers to:
    a) Departmentation
    b) Organising
    c) Specialisation
    d) Coordination

  6. Formal organisation is based on:
    a) Informal relations
    b) Official structure
    c) Friendships
    d) None

  7. Which organisation develops automatically?
    a) Formal
    b) Informal
    c) Line
    d) Functional

  8. Accountability arises from:
    a) Responsibility
    b) Authority
    c) Power
    d) Motivation

  9. Which form of organisation allows quick decisions?
    a) Functional
    b) Divisional
    c) Line
    d) None

  10. Divisional structure is suitable for firms producing:
    a) One product
    b) Many products
    c) Only services
    d) Government goods

CHAPTER 6 – STAFFING

10 MCQs

  1. Staffing is a ___ function.
    a) Managerial
    b) Operative
    c) Both
    d) None

  2. Recruitment is a ___ process.
    a) Negative
    b) Positive
    c) Neutral
    d) None

  3. Which is NOT a source of recruitment?
    a) Promotion
    b) Transfer
    c) Advertisement
    d) Controlling

  4. Training that takes place away from the workplace:
    a) On-the-job
    b) Off-the-job
    c) Apprenticeship
    d) Coaching

  5. Job analysis includes:
    a) Job description
    b) Job specification
    c) Both
    d) None

  6. “Assessing employees’ performance” refers to:
    a) Recruitment
    b) Placement
    c) Performance appraisal
    d) Induction

  7. Vestibule training is:
    a) On the job
    b) Off the job
    c) Both
    d) None

  8. Recruitment leads to:
    a) More applicants
    b) Selection
    c) Orientation
    d) Training

  9. The process of choosing the right person is called:
    a) Staffing
    b) Recruitment
    c) Selection
    d) Placement

  10. Which test measures emotional and mental balance?
    a) Aptitude test
    b) Personality test
    c) Trade test
    d) Intelligence test

CHAPTER 7 – DIRECTING

10 MCQs

  1. Directing is a ___ function.
    a) Managerial
    b) Operative
    c) Both
    d) None

  2. Which is NOT an element of directing?
    a) Motivation
    b) Communication
    c) Leadership
    d) Planning

  3. Maslow’s theory is related to:
    a) Communication
    b) Motivation
    c) Supervision
    d) Leadership

  4. Which of the following is a non-financial incentive?
    a) Bonus
    b) Profit sharing
    c) Recognition
    d) Commission

  5. “Supervision” is performed at which level?
    a) Top
    b) Middle
    c) Lower
    d) All levels

  6. Democratic leadership style means:
    a) Autocratic
    b) Participative
    c) Free-rein
    d) Laissez-faire

  7. Communication that flows from subordinates to superior is:
    a) Downward
    b) Upward
    c) Horizontal
    d) External

  8. Barrier to communication includes:
    a) Language
    b) Emotions
    c) Poor listening
    d) All

  9. “Free-rein” leadership is also known as:
    a) Autocratic
    b) Laissez-faire
    c) Democratic
    d) Bureaucratic

  10. Good communication results in:
    a) More conflicts
    b) Better coordination
    c) Low motivation
    d) Confusion

CHAPTER 8 – CONTROLLING

10 MCQs

  1. Controlling is a ___ function of management.
    a) First
    b) Middle
    c) Last
    d) Optional

  2. Controlling begins with:
    a) Measuring performance
    b) Analysing deviation
    c) Setting standards
    d) Taking corrective action

  3. Comparison of actual performance with standards identifies:
    a) Objectives
    b) Deviations
    c) Planning gap
    d) Supervision

  4. Which is NOT a step of controlling?
    a) Setting standards
    b) Communication
    c) Measuring performance
    d) Corrective action

  5. Budget is a ___ standard.
    a) Tangible
    b) Intangible
    c) Both
    d) None

  6. Controlling ensures:
    a) Discipline
    b) Future planning
    c) Both
    d) None

  7. "Management by Exception" means focusing on:
    a) Minor deviations
    b) Major deviations
    c) No deviations
    d) All deviations

  8. A good control system is:
    a) Rigid
    b) Flexible
    c) Expensive
    d) Complicated

  9. Which of the following is a modern technique of control?
    a) Breakeven analysis
    b) Budgetary control
    c) Return on investment
    d) Statistical reports

  10. Corrective action requires:
    a) Re-planning
    b) Re-train employees
    c) Change methods
    d) All

CHAPTER 9  FINANCIAL MANAGEMENT

10 MCQs

  1. The main objective of financial management is:
    a) Wealth maximisation
    b) Profit maximisation
    c) Sales maximisation
    d) Cost minimisation

  2. Dividend decision relates to:
    a) Capital budgeting
    b) Investment
    c) Working capital
    d) Distribution of profits

  3. Capital structure means mix of:
    a) Long-term equity and debt
    b) Inventory
    c) Cash
    d) Fixed capital

  4. Working capital =
    a) Current Assets – Current Liabilities
    b) Fixed Assets – Current Assets
    c) Reserves – Liabilities
    d) Profit – Tax

  5. Long-term investment decisions are called:
    a) Financing decisions
    b) Investment decisions
    c) Dividend decisions
    d) Working capital decisions

  6. High debt results in:
    a) Low risk
    b) High risk
    c) No risk
    d) Fixed risk

  7. Trading on equity refers to:
    a) Using more debt
    b) Using more equity
    c) Using assets
    d) Using working capital

  8. Fixed capital requirements increase when:
    a) Business expands
    b) Business contracts
    c) Credit sales decrease
    d) None

  9. Which factor affects dividend decision?
    a) Earnings
    b) Cash flow
    c) Taxation
    d) All

  10. Working capital requirement is high in:
    a) Seasonal industries
    b) Retail business
    c) Both
    d) None

CHAPTER 10 – FINANCIAL MARKETS

10 MCQs

  1. Financial market deals with:
    a) Money
    b) Shares
    c) Short-term & long-term funds
    d) Advertising

  2. Money market deals in:
    a) Long-term securities
    b) Short-term funds
    c) Shares
    d) Real estate

  3. Capital market is divided into:
    a) Money & capital market
    b) Primary & secondary market
    c) Stock exchange & bank
    d) Call money & trade

  4. Issue of new shares is done in:
    a) Secondary market
    b) Primary market
    c) Stock exchange
    d) Money market

  5. SEBI stands for:
    a) Securities Exchange Bank of India
    b) Securities and Exchange Board of India
    c) Stock Exchange Board of India
    d) None

  6. Treasury bills are issued by:
    a) RBI
    b) Government of India
    c) Commercial banks
    d) SEBI

  7. Commercial paper is issued by:
    a) Government
    b) RBI
    c) Large creditworthy companies
    d) Consumers

  8. Stock exchange provides:
    a) Liquidity
    b) Safety
    c) Transparency
    d) All

  9. Which is a capital market instrument?
    a) Call money
    b) Commercial paper
    c) Equity shares
    d) Treasury bills

  10. SEBI’s main objective is to:
    a) Protect investors
    b) Earn profits
    c) Sell shares
    d) Support banks

CHAPTER 11 – MARKETING MANAGEMENT

10 MCQs

  1. Marketing mix is also called:
    a) 4 Cs
    b) 4 Ps
    c) 5 Ps
    d) 7 Ps

  2. Product includes:
    a) Goods
    b) Services
    c) Ideas
    d) All

  3. Packaging is a part of:
    a) Branding
    b) Labelling
    c) Product
    d) Price

  4. Skimming price strategy means:
    a) Low price initially
    b) High price initially
    c) No price
    d) Average price

  5. “Paid form of non-personal promotion” refers to:
    a) Publicity
    b) Advertisement
    c) Personal selling
    d) Sales promotion

  6. Channel of distribution includes:
    a) Wholesalers
    b) Retailers
    c) Agents
    d) All

  7. The unique identity of a product is called:
    a) Brand
    b) Label
    c) Design
    d) Package

  8. Which of the following is a sales promotion tool?
    a) Coupons
    b) Samples
    c) Discounts
    d) All

  9. “Zero-level channel” means selling through:
    a) Wholesaler only
    b) Retailer only
    c) No intermediary
    d) Multiple intermediaries

  10. Warranty is related to:
    a) Price
    b) Promotion
    c) Product
    d) Place

CHAPTER 12 – CONSUMER PROTECTION

10 MCQs

  1. Consumer Protection Act (COPRA) was enacted in:
    a) 1986
    b) 1990
    c) 2000
    d) 1977

  2. A consumer is a person who:
    a) Buys goods for resale
    b) Buys goods for personal use
    c) Manufactures goods
    d) Sells goods

  3. Consumer rights include:
    a) Right to safety
    b) Right to be informed
    c) Right to choose
    d) All

  4. “District Commission” handles claims up to:
    a) ₹50 lakh
    b) ₹1 crore
    c) ₹5 crore
    d) ₹2 crore

  5. Which is NOT a consumer responsibility?
    a) To be honest in dealings
    b) To read labels carefully
    c) To misuse products
    d) To file complaints

  6. Consumer organisations are also called:
    a) NGOs
    b) Trade unions
    c) Retailers
    d) Government bodies

  7. “Right to be heard” ensures:
    a) Safety
    b) Redressal
    c) Representation in forums
    d) Education

  8. ISI mark is used for:
    a) Industrial products
    b) Jewellery
    c) Electronics & appliances
    d) Medicines

  9. Which of the following is a consumer forum?
    a) District Commission
    b) State Commission
    c) National Commission
    d) All

  10. Redressal agencies are organised at:
    a) One level
    b) Two levels
    c) Three levels
    d) Four levels



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