Mock Test 10 Performance Solutions

Subject: CBSE Class 12 Business Studies (Management and Core Markets)

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Detailed Question Analysis

Q1. Which of the following best explains "coordination" as a function of management?

✅ Correct Answer: Option B (Integrating efforts of different departments toward common objectives)

Concept Explanation: Coordination ensures unity of action among departments and individuals for achieving organisational goals efficiently.

Q2. Which function of management is concerned with monitoring organisational performance and correcting deviations?

✅ Correct Answer: Option D (Controlling)

Concept Explanation: Controlling measures actual performance, compares it with standards, and takes corrective action when necessary.

Q3. Which principle of management emphasizes "one employee should receive orders from only one superior"?

✅ Correct Answer: Option B (Unity of command)

Concept Explanation: Unity of command avoids confusion and conflict by ensuring each employee reports to only one superior.

Q4. Which of the following is a characteristic of planning?

✅ Correct Answer: Option B (It is a mental exercise involving decision-making)

Concept Explanation: Planning involves thinking, forecasting, and choosing the best course of action among alternatives.

Q5. Which of the following is generally included in "current assets" during financial planning?

✅ Correct Answer: Option C (Inventory and cash)

Concept Explanation: Current assets are short-term assets such as inventory, cash, and receivables used in daily operations.

Q6. A company introduced a suggestion scheme where employees could recommend methods to reduce electricity consumption. Which principle of Fayol is MOST directly applied?

✅ Correct Answer: Option A (Initiative)

Concept Explanation: The principle of initiative encourages employees to contribute ideas and participate actively.

Q7. A manager carefully selected employees with technical expertise and assigned them tasks matching their abilities. Which principle of scientific management is reflected?

✅ Correct Answer: Option D (Development of each and every person to greatest efficiency)

Concept Explanation: Taylor emphasized scientific selection and training of workers to improve efficiency.

Q8. A company promoted one of its experienced supervisors to the post of production manager. Which source of recruitment is used?

✅ Correct Answer: Option C (Internal recruitment)

Concept Explanation: Internal recruitment fills vacancies through promotion or transfer of existing employees.

Q9. A business firm launched a premium-quality product at a very high introductory price to target wealthy consumers. Which pricing objective is MOST likely followed?

✅ Correct Answer: Option C (Product quality leadership)

Concept Explanation: High pricing is often used to create a premium image and indicate superior product quality.

Q10. A customer purchased a medicine without manufacturing and expiry dates mentioned on the package. Which consumer right is MOST directly violated?

✅ Correct Answer: Option C (Right to be informed)

Concept Explanation: Consumers must receive complete product information before making purchase decisions.

Q11. Assertion (A): Delegation reduces the workload of managers.
Reason (R): Subordinates are entrusted with authority and responsibility to perform tasks.

✅ Correct Answer: Option A (Both A and R are true, and R is the correct explanation of A.)

Concept Explanation: Delegation distributes work among subordinates, allowing managers to focus on strategic activities.

Q12. Assertion (A): Informal communication follows a predetermined official path.
Reason (R): Informal communication develops naturally among employees.

✅ Correct Answer: Option C (A is false, but R is true.)

Concept Explanation: Informal communication arises spontaneously through social interactions and does not follow official channels.

Q13. A manufacturing company studied the exact movements of workers while operating machines and redesigned workstations to reduce unnecessary actions. Which scientific management technique is being applied?

✅ Correct Answer: Option C (Motion study)

Concept Explanation: Motion study aims at eliminating unnecessary movements to improve efficiency and reduce fatigue. (Tricky concept: Commonly confused with method study by students.)

Q14. An FMCG company introduced eco-friendly packaging, invested in waste recycling, and organized free health camps in nearby villages. Which objective of management is MOST prominently reflected?

✅ Correct Answer: Option D (Social objective)

Concept Explanation: Environmental protection and community welfare are important social responsibilities of businesses.

Q15. Which of the following BEST differentiates "authority" and "responsibility"?

✅ Correct Answer: Option C (Authority gives right to command, while responsibility creates obligation to perform tasks.)

Concept Explanation: Authority allows decision-making and issuing orders, while responsibility refers to duty assigned to an employee.

Q16. A company noticed delays in decision-making because every approval required permission from top management. Which concept should be adopted to solve the problem?

✅ Correct Answer: Option B (Decentralisation)

Concept Explanation: Decentralisation distributes authority across different levels, enabling faster decision-making.

Q17. A company heavily reduced product prices to increase sales volume, but customers began doubting product quality. Which managerial lesson is MOST appropriate?

✅ Correct Answer: Option B (Pricing decisions influence customer perception)

Concept Explanation: Customers often associate pricing with product quality and brand positioning.

Q18. Which of the following BEST explains the relationship between planning and controlling?

✅ Correct Answer: Option C (Planning sets standards, while controlling evaluates performance against those standards.)

Concept Explanation: Controlling depends on standards established during planning for performance evaluation.

Q19. Which of the following is the BEST example of "money market"?

✅ Correct Answer: Option C (Treasury Bills)

Concept Explanation: Money market deals in short-term financial instruments such as Treasury Bills and commercial papers.

Q20. A business enterprise forecasted future sales, arranged finances, trained employees, motivated workers, and continuously monitored targets. Which statement BEST explains management in this situation?

✅ Correct Answer: Option B (Management is a continuous process involving multiple interrelated functions)

Concept Explanation: Management integrates planning, organising, staffing, directing, and controlling continuously for achieving organisational objectives.

📈 ExamSpark Quick Tips: CBSE Competency Focus

Motion Study vs Method Study: Workstation designs and worker actions coordinate with motion tracking to reduce fatigue, while Method Study defines the complete layout of flow.
Pricing Paradox: Rapid drop in prices could attract raw volumes but risk a threat to luxury perceived quality signals.
Control Loop: Planning remains completely blind without active control metrics to execute deviations mapping.

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