R4RIN – MCQs, Mock Tests | ICSE XII MCQ Questions for Class 12 Business Studies Set-3

Which one of the following is a step of controlling?

1. Assessing personnel required
2. Taking corrective action
3. Assessing environment
4. Taking disciplinary action

✅ Correct Answer: 2

___ is the process of ensuring that actual results are in accordance with planned results.

1. Controlling
2. Coordinating
3. Planning
4. Directing

✅ Correct Answer: 1

___ is the focus point for a manager while controlling, as controlling at every step is not possible

1. Controlling
2. Coordinating
3. Critical point control
4. Both (a) and (b)

✅ Correct Answer: 3

Controlling is ___.

1. Forward looking
2. Backward looking
3. Continous process
4. All of these

✅ Correct Answer: 4

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.

1. Management by exception
2. Critical point control
3. Corrective action
4. None of the above

✅ Correct Answer: 2

Reducing the workers, absenteeism in a factory by 20% is an example of

1. Quantitative standard
2. Qualitative standard
3. Deviation
4. None of the above

✅ Correct Answer: 1

The need for the controlling function is felt in

1. Business organisations
2. Political organisations
3. Social organisations
4. All of the above

✅ Correct Answer: 4

When the deviations between the actual performance and the planned performance are within the limits

1. A limited corrective action is required
2. No corrective action is required
3. A major corrective action is required
4. None of the above

✅ Correct Answer: 2

The comparison of actual performance with the planned performance becomes easier if the standards are set in

1. Qualitative terms
2. Quantitative terms
3. Either of the above
4. None of the above

✅ Correct Answer: 2

Identify the correct sequence of the steps involved in the controlling process.

1. Measurement of actual performance, Taking corrective action, Setting performance standards, Comparison of actual performance with standards, Analysing deviations
2. Comparison of actual performance with standards, Setting performance standards. Measurement of actual performance, Analysing deviations, Taking corrective action
3. Setting performance standards, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Taking corrective action
4. Taking corrective action, Measurement of actual performance, Comparison of actual performance with standards, Analysing deviations, Setting performance standards

✅ Correct Answer: 3

Deviations are said to be positive in nature when

1. Planned performance is more than the actual performance
2. Actual performance is more than the planned performance
3. Both planned and actual performances are same
4. None of the above

✅ Correct Answer: 2

The controlling function is performed by

1. Top level management
2. Lower level management
3. Middle level management
4. All of the above

✅ Correct Answer: 4

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.

1. Controlling helps in judging accuracy of standards.
2. It ensures efficient use of resources.
3. It helps in improving employee motivation.
4. It facilitates co-ordination in action.

✅ Correct Answer: 3

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.

✅ Correct Answer: 2

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.

1. Setting of standards
2. Measurement of actual performance
3. Taking corrective action
4. Analysing the deviations

✅ Correct Answer: 2

Controlling is known as a backward-looking function because

1. It relates to future course of action.
2. It is like a post-mortem of the past activities
3. To find out deviation, it aims at improving future performance.
4. All of the above

✅ Correct Answer: 2

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

1. -2
2. + 2
3. 98
4. None of the above

✅ Correct Answer: 1

This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling nothing.

1. Critical point control
2. Key result areas
3. Management by exception
4. Deviations

✅ Correct Answer: 3

Which one of the following is related to planning, organising, directing and controlling of financial activities?

1. Financial decision
2. Capital structure
3. Investment decision
4. Financial management

✅ Correct Answer: 4

Wealth maximisation depends on

1. market price per share.
2. market price of finished good.
3. market price of inventory.
4. market price of fixed assets.

✅ Correct Answer: 1

Investment decision involves

1. investment in fixed assets.
2. investment in current assets.
3. investment in fixed and current assets.
4. investment in Government securities.

✅ Correct Answer: 3

If dividend portion of total earnings is high, portion of retained earnings will be

1. high.
2. low.
3. moderate.
4. equal.

✅ Correct Answer: 2

Financial procedures are determined by

1. financial planning.
2. financial leverage.
3. financial decisions.
4. capital structure.

✅ Correct Answer: 1

Capital structure shows

1. Debtor-creditor ratio.
2. Fixed assets-current assets ratio.
3. Debt-equity ratio.
4. Interest coverage ratio.

✅ Correct Answer: 3

Fixed capital requirements are determined by

1. nature of business.
2. nature of business environment.
3. nature of Government control.
4. nature of marketing efforts.

✅ Correct Answer: 1

Working capital requirements are low when an organisation has

1. high technology.
2. high debtors.
3. high inventory.
4. high creditors.

✅ Correct Answer: 4

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

1. More than 16 %
2. Less than 16 %
3. Equal to 16%
4. None of the above

✅ Correct Answer: 1

Which one of the following is not a function of financial market?

1. Mobilisation of savings
2. Price determination of securities
3. Floating of companies
4. Lowering transaction cost

✅ Correct Answer: 3

Which one of the following is a money market instrument?

1. Unit of mutual fund
2. Debenture
3. Bond
4. Treasury bill

✅ Correct Answer: 4

Which one of the following is a money market instrument?

1. Unit of mutual fund
2. Debenture
3. Bond
4. Treasury bill

✅ Correct Answer: 4

SEBI is a regulator of

1. capital market.
2. money market
3. commodity market.
4. overseas market

✅ Correct Answer: 1

___ is a short-term unsecured promissory note issued by reputed business organisations at a price lower than its face value and redeemable at par.

1. Treasury bill
2. Commercial paper
3. Certificate of deposit
4. Promissory note

✅ Correct Answer: 2

___ is a source of financing to meet very short-term fund requirements of commercial banks with a provision of renewal.

1. Treasury Bill
2. Commercial Paper
3. Certificate of Deposit
4. Call Money

✅ Correct Answer: 4

___ is the market which helps existing investors to sell their securities.

1. Primary market
2. Secondary market
3. Capital market
4. Commodity market

✅ Correct Answer: 2

___ is the institution which provides a platform for trading of existing securities having long-term maturity.

1. SEBI
2. WTO
3. Stock exchange
4. RBI

✅ Correct Answer: 3

After the trade has been executed, the broker issues a Contract Note to the investor within

1. 52 hours
2. 24 hours
3. 48 hours
4. 12 hours

✅ Correct Answer: 2

On this day, the exchange will deliver the share or make payment to the other broker,

1. Pay-in day
2. Pay-out day
3. Transaction day
4. None of the above

✅ Correct Answer: 2

The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is

1. Date of birth and address
2. PAN number
3. Residential status (Indian/NRI)
4. Bank account details.

✅ Correct Answer: 2

It is a number assigned to each transaction by the stock exchange and is printed on the contract note.

1. PAN number
2. Unique Order Code
3. Contract Note
4. None of the above

✅ Correct Answer: 2

It acts like a bank and keeps securities in electronic form on behalf of the investor,

1. Depository Participant
2. Depository
3. Stock exchange
4. None of the above

✅ Correct Answer: 2

The process of holding shares in electronic form is known as

1. Demutualisation
2. Dematerialisation
3. Speculation
4. None of the above

✅ Correct Answer: 2

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.

1. Providing liquidity and marketability to existing securities.
2. Safety of transaction.
3. Pricing of security.
4. Spreading of equity cult.

✅ Correct Answer: 3

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.

1. Private placement
2. Offer through prospectus
3. Offer for sale
4. Rights issue

✅ Correct Answer: 3

Which of the following participants represent capital market?

1. Development banks
2. Commercial banks
3. Stock exchanges
4. All of the above

✅ Correct Answer: 4

A company can raise capital through the primary market in the form of

1. Equity shares
2. Preference shares
3. Debentures
4. All of the above

✅ Correct Answer: 4

It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.

1. Commercial bill
2. Commercial papers
3. Call money
4. None of the above

✅ Correct Answer: 1

With which element is exchange mechanism related?

1. Publicity
2. Marketing
3. Advertising
4. Branding

✅ Correct Answer: 2

Which one of the following is a marketing management philosophy?

1. Societal marketing concept
2. Distribution concept
3. Direct marketing concept
4. Channel concept

✅ Correct Answer: 1

Which one of the following is not a marketing mix?

1. Product
2. Physical distribution
3. Product pricing
4. Production process

✅ Correct Answer: 4

Which one of the following factors is not relevant to price fixation?

1. Obtaining market leadership
2. Age of an organisation
3. Value for money
4. Product differentiation

✅ Correct Answer: 2