Self-Assessment Test-5.

1
Time: 1.5 hrs Matks:
1. cannot be delegated.
(b) Responsibility
(a) Authority (d) Both (a) and (b)
ue Accountability
2. Grouping of activities as the basis of functions is a part of
(a) Decentralised organisation
o Functional organisation
(d) Divisional organisation.
(c) Centralised organisation
3. Which of the following does not follow the principle(b)of scalar chain?
(a) Formal organisation
Informal organisation
(d) Divisional structure.
(c) Functional structure
4. Which of the following has a wider scope?
(a) Management (b) Centralisation
(c) Decentralisation (d) Delegation
5. Choose the correct option by appropriated matching.
Column A Column B
() Formal organisation (a) It arises out of personal qualities
(i) Informal organisation (b) It arises by virtue of positions in management
(i) Authority (c) Answerability of final outcome
(iv) Accountability (d) Right to command subordinates
fa (-b);(ii-a); (ü-d): (iv-c) (b) (-a); (iü-b): (ii-d); (iv)
() -d); (ii-b): (i-a): (ivc) (d) (i-e); (i-a): (ii-d); (ivc)
6. The cartoon shows that one of the prerequisites to the efficient functioning of an organisation is missing. Name it
MANAGER

All files must be

approved by me.
Boss
is busy

(a) Authority (b) Delegation of Authority

(c) Centralisation (d) Decentralisation
Q. Nos 7-10 are based on the following CASE PROBLEM.
Samir Gupta started a telecommunication company, Donira Ltd. ' with 15 employees to manuacture eronomi
mobile phones for the Indian rural market. The company did very well in its initial years. As the product was g°
and marketedwell, the demand of its products wernt up. To increase production, the company decided torr
additional employees. Samir Gupta, who was earlier taking all the decisions for, the company had to selati
disperse the authority. He believed that his subordinates are competent, capable and resourceful and can asw
responsibility for effective implementation of their decisions. This paid off and the company was not cnly abe
increase its production but also expanded its product range.
7. Centralisation refers to
(a) Retention of decision-making authority. (b) Opening new branches
(c) Separation of divisions or levels (d) Dispersal of decision-making authority
 232 GEETE Best u BUSINESS STUDIES-XII (Part A)

Self-Assessment Test-6.1
Time: 1.5 hrs
Marks:40
1. Define recruitment.
2. The word 'training' is mainlyassociated with
(a) managers (b) workers
(c) supervisors (d) workers and supervisors.
3. The cartoon demonstrates the effects of over staffing-"More play, less work". Which step of staffing process was nok
properly carried out?
(a) Recruitment and Selection
(b) Estimating manpower planning
(c) Promotion and career planning
(d) Placement and Orientation

4. What is included in Psychological tests?

(a) Interest test (b) Intelligence test
(c) Aptitude test (d) Allof these
5. is included in external source of recruitment.
(a) Advertisement (b) Employment exchange
(c) Both (a) and (b) (d) None of these
6. What do we call keeping the employees temporarily away from the job for which they have been appointed?
(a) Demotion (b) Promotion
(c) Transfer (a) Lay off
Q.Nos 7-10 are based on the following CASE PROBLEM.
Amajor insurance company handled all recruiting, screening and training processes for data entry/customer service
representatives. Its competitor was attracting most of the qualified, potential employees available in the market
Recruiting was made even more difficult by the strong economy and the job-seeker's market'. This resulted in the
client having to choose from the candidates whohad the sof skills needed for the job, but lacked the proper hart
skills and training.
7. Which department as a separate field of management is highlighted in the above case?
(a) Training (b) Human resource management
(c) Orientation (d) Recruitment
8. Which problem is being highlighted in the above case?
(a) Training (b) Development
(c) Selection test (d) Preliminary screening
9. Staffing function deals with which element of management?
(a) Human (b) Machine
() Money (d) Material
10. Which is a long-term process and takes place throughout the life of a person?
(a) Development (b) Education
(c) Training (d) Internship
11. Max Industries want to hire staff for its chemical division. The personnel department lists out the following methods
of recruitment
(a) Using naukri.com to search for prospective candidates.
(b) Considering voluntary applications receive earlier from varlous job-seekers.
ldentify the methods of recruitment and explain them.
33

Self-Assessment Test - 7.1

Time:1.5hrs
Marks: 40

, Strict olbedience of order and discipline is found in -

(a) Autocratic leadership (b) Democratic leadership
(c) Free-rein leadership (d) Paternalistic leadership.
2 Two-way communication technique is used under
(a) Laissez-Faire leadership style (b) Democratic leadership style
(c) Autocratic leadership style (d) None of these.
3. Identity the element of directing in the given picture.

(a) Formal Communication (b) Infornmal Communication

() Leadership (d) Motivation
4. Which of the following is not an element of directing?
(a) Supervision (b) Communication
(c) Planring (a) Leadership
5. Which of the following is not a type of semantic barriers?
(a) Badly expressed message (b) Unclassified assumptions
(c) premature evaluation (d) Technical jargon
6. as an element of directing involves instructing, observing, overseeing, monitoring and guiding the efforts of
employees and other resources to accomplish desired objectives.
(a) Supervision (b) Motivation
(c) Leadership (d) Communication
Q. Nos 7-10 are based on the following CASE PROBLEM.
Anjali had been working with "Tata Enterprises' forthe last tenyears. She was famous for her dedication towards work.
When her senior manager retired, all her colleagues thought that now Anjali would be promoted. But to everyone's
surprise, the vacant post was filled by an outsider, Miss Morika. Anjali felt demoralised and her performance started
declining. She would absent herself often and could not meet her targets.
Miss Monika had an ability to influence the behaviour of others as she, not only instructed her subordinates, but
also guided and inspired them. She noticed Anjal>'s behayiour and felt that her performance could be improved. She
started involving Anjali in the decision-making issues related to the organisation and made her apart of ahigh-level
joint management commitee. Anjali was now punctual to office and her performance started improving,
7. ldentify the function of management being performed by Ms. Monika.
(a) Staffing (b) Directing
(c) Organising (d) Planning ()
8. Name the elements of the above function of management which helped Ms. Monika to improve Anjal>'s behaviour.
(a) Supervision and leadership (b) Communication and supervision
(c) Leadership and communication (d) Motivation and leadership
Time:1.5hrs
Self-Assessment Test-8.1 Marks: 40

1. Controlling and are ciosely interrelated.

(a) Planning (b) Directing
(c) Staffing (4) Orgarising
2 Which cf the following is a feature of
laj Pervasive Controlling?
(b) Continuous
(c) Backward-looking (d) All of the above
3 Lmpies the measurement of actual performance against the standards and the correction of deviations to
assure attainment of objectives according to plans.
(a) Staffing (b) Controlling
() Directirg () Organising
is not included ín the controlling process.
(a) Mezsuremert of actual performance (b) Comparison of actual performance with standards.
(c) Initiating action in the organisation (d) Aralysing deviations
5. Match the items given under 'Column A' with the suitable statements under Column B
ounnB
) Critical Point Control (a) Unrealistic standards or defective process may be the reason for occurrence of
deviations.
() Taking Corrective Action (b) Control system should focus on Key Result Areas
(G) Anaysing Devations () fdevation cannot be corected through managerial action, the standards may
have to be resised
6. Which of the following is not an element of controlling proces?
(a) Evaluation of different alternatives
(b) Measurement of performance
(c) Comparison of actual performance with the standards
(d) Taking corrective action
Q, Nos 7-10 are based on the following CASE PROBLEM.
Managers at of an import-export company at New York City suspected that two employees were involved in the
malpractíces in the organisation. Corporate Defence Strategies (CDS) of May wood New Jersey, advised the firm
to irstall a software program that could secretly log every single stroke of the suspects computer keys and send
an encrypted e-mail report to CDS. Investigators revealed that the two employees were deleting orders from the
corporate books after processing them, pocketing the revenues, and building their own company from within The
programne picked up on their plan to returm to the ofice late one night to steal alarge shipment of electronics. The
police hiding ín the rafters of the firm's warehouse, and when the suspects entered, they were arrested. The pair was
charged with embezzling $3 million over two and ahalf years, asizable amount of revenue for a $25 million-a-year
firm.
7. Which of the following strategy of controlling helped the firm to solve the mentioned problem?
(a) Criticai point control (b) Management by exception
() Sample checking (d) Personal observation (2
8. New Jersey advised the firn to install asoftware program that could secretly log every single stroke of the suspects'
computer keys and send an encrypted email report to it. Identify the management function performed by the
company.
9. By taking care of important deviations, the company is able to save both time and efforts. (Write T/)
0. An efficient control system by New York City Import-Export company will help it to -
(aj accomplish organisational objectives (b) make optimum utilisation of resources
(c) ensure order and discipline (d) all of these.
Time: 1.5 hrs
Self-Assessment Test -9.1
Mark.
1.
decisions, ams al smooth operations by focusing on fund requirements and their availability in the light cá finas
(a) Financial decision
() Financial planning (b) Financial control
(d) Capital structure
2. Working capital decisions are
(a) Control concerned with the decision of
(b) Inventory (c) Debt (d) Equity
3. Which one of the following is relaled to planning, organising, directing and
(a) Financial decision cortroling of fimaneial activities?
() Investment decision (b) Capital structure
(d) Financial management
4. Calculate the net working capital from the
following information:
Sundry Debtors=30,000 Outstanding expenses 3,000
Prepaid expenses = 5,000 Bills Payable =?8,000
Sundry Creditors =17,000 Cash 25,000
(a) 32,000 (b) ? 30,000 (c) 88,000 (d) 60,000
5. Which of the following statements is incorrect?
(a) Current assets are usually more liquid than fixed assets.
(b) Current assets are generally financed through short-term liabilities.
(c) Bills Receivable, debtors, stock, etc. are fixed assets.
(a) Fixed assets are financed through long-term liabilities.
6. In financial management, the procurement of funds is done for
(a) Long-term needs only (b) Short-term needs only
(c) Both (a) and (b) (d) Maximising risks
Q. Nos 7-10 are based on the following CASE PROBLEM.
Company XLtd.
Total Funds used 30 lac
Interest Rate 10% p.a.
Tax rate 30%
EBIT R4 lac
Debt
Situation l NIU
Situation lI Z10lac
Situation llI 720 lac

EBIT - EPS Analysis

Situation l Situation l Situation l
EBIT 4,00,000 4,00,000 4,00,000
Interest NIL 1,00,000 2,00,000
E8T (Earnings before taxes) 4,00,000 3,00,000 2,00,000
Tax 1,20,000 90,000 60,000
EAT (Earnings after taxes) 2,80,000 2,10,000 1,40,000
No. of shares of? 10
3,00,000 2,00,000 1,00,000
EPS (Earnings per share) 0.93 1.05 1.40