ExamSpark CUET UG
Mock Test 18 Performance Solutions
Subject: Business Studies
Q1. A multinational corporation, 'Global Foods Inc.', has its marketing department aggressively pushing for a new product launch, while the finance department is simultaneously implementing a strict cost-cutting policy, and the R&D department is not yet confident about the product's stability. Though each department is efficient in its own domain, the company is failing to achieve its overall quarterly objectives. Which concept of management is most conspicuously absent here?
Correct Answer: Option A (Efficiency)
Explanation: Detailed explanation will be updated shortly.
Q2. The CEO of 'Innovatech Solutions' believes in giving his subordinates the freedom to devise their own methods to achieve tasks and only intervenes if a major problem arises. He trusts his highly skilled team to manage their work. However, this has led to some teams duplicating efforts and a lack of a unified direction. This scenario highlights a potential negative consequence of which leadership style?
Correct Answer: Option A (Autocratic Leadership)
Explanation: Detailed explanation will be updated shortly.
Q3. 'Astra-Zenith Aerospace' is developing a new hypersonic jet. The project requires a team of specialists from physics, materials science, software engineering, and aerodynamics. These specialists are brought together for this single project and will be reassigned once it is complete. What type of organisational structure is most suitable for this project?
Correct Answer: Option A (Functional Structure)
Explanation: Detailed explanation will be updated shortly.
Q4. A company manufacturing organic soaps has a policy that any purchase of raw materials above ₹50,000 must be approved by the departmental head, while purchases below this amount can be approved by the shift supervisor. This is an application of which of the following principles/concepts?
Correct Answer: Option A (Centralisation and Decentralisation)
Explanation: Detailed explanation will be updated shortly.
Q5. Due to a sudden government regulation banning a specific chemical, 'ChemCo Ltd.' had to halt the production of its most profitable product. The company's detailed five-year plan, which was heavily based on this product's sales, became instantly obsolete. This incident highlights which limitation of planning?
Correct Answer: Option A (Planning is a time-consuming process.)
Explanation: Detailed explanation will be updated shortly.
Q6. A newly recruited finance analyst at a top investment bank is asked to shadow a senior analyst for six months. He observes, learns, and is gradually given more complex tasks under the senior's guidance. This method of training is known as:
Correct Answer: Option A (Vestibule Training)
Explanation: Detailed explanation will be updated shortly.
Q7. 'Evergreen Textiles' has consistently provided job security, fair wages, and a safe working environment to its employees. Most employees have been with the company for over a decade. However, a recent survey shows low motivation and a feeling of stagnation among them. According to Maslow's Need Hierarchy Theory, which need should the management now focus on satisfying?
Correct Answer: Option A (Safety/Security Needs)
Explanation: Detailed explanation will be updated shortly.
Q8. SEBI recently passed an order requiring companies to disclose the risks associated with cryptocurrency investments in their public offerings. This action by SEBI is an example of its:
Correct Answer: Option A (Regulatory Function)
Explanation: Detailed explanation will be updated shortly.
Q9. A company sells premium, handcrafted leather bags. Its target audience is a niche, high-income group. Which element of the marketing mix would be *least* appropriate for this company?
Correct Answer: Option A (Product: Using high-quality, ethically sourced leather.)
Explanation: Detailed explanation will be updated shortly.
Q10. Mr. Sharma purchased a geyser with an ISI mark. Unfortunately, the geyser exploded within a week, causing minor burns to his family member. Under the Consumer Protection Act, 2019, which consumer right allows him to claim compensation for the injury and loss?
Correct Answer: Option A (Right to be Heard)
Explanation: Detailed explanation will be updated shortly.
Q11. The principle of 'Espirit de Corps' by Fayol is most closely undermined by which of Taylor's techniques, if implemented without care?
Correct Answer: Option A (Method Study)
Explanation: Detailed explanation will be updated shortly.
Q12. A firm is engaged in the manufacturing of refrigerators. Its operating cycle is long. What will be its requirement for working capital?
Correct Answer: Option A (It will require less working capital.)
Explanation: Detailed explanation will be updated shortly.
Q13. Assertion (A): The informal organisation cannot be altogether eliminated.
Reason (R): The informal organisation arises spontaneously from personal interaction and social needs of employees, which are inherent in any formal structure.
Correct Answer: Option A (: The informal organisation cannot be altogether eliminated.
Reason (R): The informal organisation arises spontaneously from personal interaction and social needs of employees, which are inherent in any formal structure.)
Explanation: Detailed explanation will be updated shortly.
Q14. A company decides to sell one of its non-core business units (e.g., a cement company selling its software division) to another company to focus on its primary operations. This financial decision is best described as:
Correct Answer: Option A (Floatation)
Explanation: Detailed explanation will be updated shortly.
Q15. When a stock market is experiencing a prolonged period of rising prices and investor optimism, it is referred to as a:
Correct Answer: Option A (Bear Market)
Explanation: Detailed explanation will be updated shortly.
Q16. 'QuickBites', a fast-food chain, ensures that a burger delivered in Delhi has the exact same taste, size, and packaging as one delivered in Chennai. This is an attempt to achieve which feature of its product?
Correct Answer: Option A (Grading)
Explanation: Detailed explanation will be updated shortly.
Q17. The process of performance appraisal is a crucial part of the staffing function. However, its findings are also a critical input for which other management function?
Correct Answer: Option A (Planning, as it helps in forecasting human resource needs.)
Explanation: Detailed explanation will be updated shortly.
Q18. A popular ride-hailing app introduced a 'surge pricing' model where fares increase during periods of high demand. This change in pricing strategy is a response to which specific dimension of the business environment?
Correct Answer: Option A (Social Environment)
Explanation: Detailed explanation will be updated shortly.
Q19. An investor, Rohan, buys 100 shares of Reliance Industries Ltd. from another investor, Priya, through the Bombay Stock Exchange (BSE). This transaction took place in the:
Correct Answer: Option A (Primary Market)
Explanation: Detailed explanation will be updated shortly.
Q20. A manager consistently blames his subordinates for not meeting targets, even when the targets were unrealistic and the resources provided were inadequate. This indicates a barrier to effective communication known as:
Correct Answer: Option A (Semantic Barrier)
Explanation: Detailed explanation will be updated shortly.