ExamSpark CUET UG
Mock Test 09 Performance Solutions
Subject: Business Studies
Q1. A start-up, 'InnovateRight', has a flat organizational structure where employees are multi-skilled and report to different project leaders depending on the project's requirements. For a new AI development project, a software developer reports to the AI Project Head, and for a data analytics task, reports to the Data Science Lead. This often creates confusion regarding task priority. Which principle of management, as given by Fayol, is most compromised here?
Correct Answer: Option A (Unity of Direction)
Explanation: Detailed explanation will be updated shortly.
Q2. Assertion (A): The 'Product Concept' of marketing can lead to 'marketing myopia'.
Reason (R): Companies following the product concept focus excessively on improving the quality and features of their existing product, often ignoring customer needs and alternative solutions.
Correct Answer: Option A (: The 'Product Concept' of marketing can lead to 'marketing myopia'.
Reason (R): Companies following the product concept focus excessively on improving the quality and features of their existing product, often ignoring customer needs and alternative solutions.)
Explanation: Detailed explanation will be updated shortly.
Q3. 'EcoWear Ltd.' manufactures apparel from recycled plastic. The government recently announced a new policy providing a 50% capital subsidy for any machinery purchased for green technology. This prompted EcoWear to immediately upgrade its manufacturing plant. Which importance of the business environment is highlighted in this situation?
Correct Answer: Option A (It helps in tapping useful resources.)
Explanation: Detailed explanation will be updated shortly.
Q4. A manager at a logistics company notices that the delivery time for Zone A is consistently 10% higher than the standard, whereas for Zone B, it is only 2% higher. According to the principles of control, the manager should prioritize addressing the deviation in Zone A. This approach is an application of:
Correct Answer: Option A (Critical Point Control)
Explanation: Detailed explanation will be updated shortly.
Q5. Match the following leadership styles with their most appropriate description:
| List-I (Leadership Style) | List-II (Description) |
| :--- | :--- |
| (i) Autocratic | (p) The leader involves subordinates in decision-making but retains the final authority. |
| (ii) Democratic | (q) The leader gives complete freedom to the subordinates. |
| (iii) Laissez-faire | (r) The leader expects strict compliance from subordinates with no room for feedback. |
Choose the correct option:
Correct Answer: Option A ((i)-(r), (ii)-(p), (iii)-(q))
Explanation: Detailed explanation will be updated shortly.
Q6. 'Zenith Electronics' is a large, diversified company manufacturing products ranging from home appliances to industrial turbines. To ensure each product line is managed effectively with its own set of functions (production, marketing, finance), which organizational structure would be most suitable for Zenith?
Correct Answer: Option A (Functional Structure)
Explanation: Detailed explanation will be updated shortly.
Q7. A company with high business risk (due to high fixed operating costs) wants to raise additional long-term funds. A financial advisor suggests that the company should rely more on equity rather than debt for this expansion. What is the most likely reason for this advice?
Correct Answer: Option A (To increase the Earnings Per Share (EPS).)
Explanation: Detailed explanation will be updated shortly.
Q8. An investor purchases 100 shares of an existing, listed company through the BSE Sensex platform. This transaction is taking place in the:
Correct Answer: Option A (Primary Market)
Explanation: Detailed explanation will be updated shortly.
Q9. In the staffing process, what is the primary negative consequence of having an inadequate workforce compared to the required number of personnel?
Correct Answer: Option A (Over-manning and high labour cost.)
Explanation: Detailed explanation will be updated shortly.
Q10. A consumer, Mr. Sharma, purchased a face cream. The packaging showed a model with flawless skin, but the list of ingredients, in very fine print, included a chemical he is allergic to. After using the cream, he suffered a severe allergic reaction. Which consumer right has been primarily violated by the manufacturer?
Correct Answer: Option A (Right to Safety)
Explanation: Detailed explanation will be updated shortly.
Q11. Which of the following is NOT a step in the planning process?
Correct Answer: Option A (Developing Premises)
Explanation: Detailed explanation will be updated shortly.
Q12. A company that manufactures and sells festive sweets and snacks throughout the year experiences a massive surge in demand during the Diwali season. To meet this temporary demand, the company needs to arrange for extra funds. This requirement for funds is best classified as:
Correct Answer: Option A (Fixed Capital Requirement)
Explanation: Detailed explanation will be updated shortly.
Q13. A car company launches a new model with advanced safety features and a powerful engine, pricing it significantly higher than competitors. The company is targeting tech-savvy buyers who value performance and are willing to pay a premium. This marketing strategy is an example of the:
Correct Answer: Option A (Production Concept)
Explanation: Detailed explanation will be updated shortly.
Q14. SEBI's function of training intermediaries of the securities market and conducting research falls under which of its primary functions?
Correct Answer: Option A (Regulatory Function)
Explanation: Detailed explanation will be updated shortly.
Q15. A manager delegates a task to a subordinate but does not give him the necessary authority to access company data required to complete it. The subordinate fails to complete the task on time. Which principle is violated here, leading to the ineffective outcome?
Correct Answer: Option A (Principle of Absoluteness of Accountability)
Explanation: Detailed explanation will be updated shortly.
Q16. 'QuickBites' is a fast-food chain that uses a standardized recipe and cooking process in all its outlets across the country to ensure every customer gets the same taste and quality. This adherence to a pre-defined standard is an aspect of which function of management?
Correct Answer: Option A (Planning)
Explanation: Detailed explanation will be updated shortly.
Q17. According to the Consumer Protection Act, 2019, if a consumer is not satisfied with the order of the District Commission on a claim of ₹45 Lakhs, they can appeal to the:
Correct Answer: Option A (Supreme Court)
Explanation: Detailed explanation will be updated shortly.
Q18. In Maslow's Need Hierarchy Theory, a manager who promotes a high-performing employee to a more challenging and prestigious job title like 'Senior Project Lead' is primarily trying to satisfy the employee's:
Correct Answer: Option A (Physiological Needs)
Explanation: Detailed explanation will be updated shortly.
Q19. Which of the following is an example of a non-financial incentive?
Correct Answer: Option A (Performance-based bonus)
Explanation: Detailed explanation will be updated shortly.
Q20. The process of designing and producing the container or wrapper of a product is known as:
Correct Answer: Option A (Branding)
Explanation: Detailed explanation will be updated shortly.