Category: Important Questions

BSEB Bihar Board 12th Business Studies Important Questions Short Answer Type Part 4 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Important Questions Short Answer Type Part 4

Question 1.
Give the meaning of finance.
Answer:
Money required for carrying business activities is called business finance. Almost all business activities require some finance. Finance is needed to establish a business, to run it, to modernise it, to expand to diversity it. It is thus, needed at every stage in the life of a business entity. Availability of adequate finance is thus very crucial for the survival and growth of a business.

Question 2.
Give the meaning of Financial Management.
Answer:
All finance comes at some cost. It is quite imperative that it needs to be carefully managed. Financial management is concerned with optimal procurement well as usage of finance. For optimal procurement different available sources of finance are compared with associated risks. Similarly, the finance; so procured needs to be invested in a manner that the returns for the investment exceed the cost at which procurement has taken place.

Financial managment aims at reducing the cost of funds procured. Keeping the risk under control, and achieving effective deployment of such funds is covered under financial management. It also aims at ensuring availability of enough funds whenever required as well as avoiding idle finance.

Question 3.
What are the main objectives of financial management?
Answer:
The main objectives of financial management are as follow:
1. Profit maximization: It is the chief aim of every investor, while purchasing the share of company, the investor see the profitability of that company. When a company earns maximum profit, chances are that the rate of dividend will be high. Thus the main objectives of financial management is to safeguard the interest of shareholders, creditors, the company, employees and the government at large.

The arguments behind the concept of maximization of profit are:

• Profit is the indicator of economic efficiency of the company.
• Profit leads to efficient allocation of resources and the distribution to the users.

However, it suffers from certain limitations:

• It assumes perfect competition in the economy which may always be not so. Thus it may not lead to optimisation of owner’s interest and society.
• It ignores the impact of dividend policy on market price of the share.
• It is a vague concept and is subject to varied interpretation.

2. Wealth maximisation: It is also known as value maximisation or net present worth maximisation. It is universally accepted as the objective for financial decision. As per this concept the value of an asset should be viewed in terms of benefits it can produce.

Question 4.
What are the characteristics of sound financial plan?
Answer:
The following are the main characteristics which should be kept in mind while making a sound plan:

• Simplicity: The financial plan should be simple so that every one can understand it easily.
• Based on organizational objectives: The financial plans are prepared with a view to cover the main objectives of that organization. Hence, it is suggested that funds should be procured at the lowest cost otherwise the profitability of the organisation will suffer.
• Best utilisation of resources: The best financial plan is the one which utilises its own resources for the benefit of the company. Ploughing back of profit is the best way of financing the business enterprises.
• Flexibility: The financial plan should be flexible, which means due scope for adjustment as and when needed may be incorporated in it.
• Utility: The proper use of capital should be for the development of the organisation.

Question 5.
Define the capital structure.
Answer:
Debt and equity differ significantly in their cost and riskiness for the firm. Cost of debt is lower than cost of equity for a firm because lender’s risk is lower than equity shareholder’s risk, and therefore, they should acquire a lower rate of return. Additionally, interest paid on debt is deductible expense for computation of tax liability whereas dividends are paid out of after tax profits.

Increased use of debt, therefore, is likely to lower the overall cost of capital of the firm provided that cost of equity remains unaffected cost. Hence, capital structure refers to the mix between owner and borrowed funds.

Question 6.
Distinguish between owner’s capital and borrowed capital.
Answer:
Distinction between owner’s capitals and borrowed capital:

Question 7.
What is “Financial Risk”? Why does it arises?
Answer:
Financial risk is the chance that a firm would fail to meet its payment obligations. Increased use of debt increases the financial risk of a business. It arises on account of use of debt in Capital Stricture, any default in meeting these commitments may force the business to go into liquidation. Higher use of debt increases the fixed financial charges of a business.

Question 8.
Define a current asset and gave four examples.
Answer:
Current assets are those assets which are the normal routing of the business, get converted into cash or cash equivalents within one year. Current assets facilitate smoothing day-to-day operations of the business. Current assets are usually more liquid but contribute less to the profits than fixed assets e.g., 1. Cash in hand/Cash at bank, 2. Marketable securities, 3. Bills receivables, 4. Debtors, 5. Finished goods inventory, 6. Work in progress, 7. Raw materials, 8. Prepaid expenses.

These assets are expected to get converted into cash or cash equivalents within a period of one year. There provide liquidity to the business. An asset is more liquid if it can be converted into cash quicker and without reduction in value. Insufficient investment in current assets may make it more difficult for an organization to meet its payment obligations. However, these assets provide little or low returns. Hence a balance needs to be struck between liquidity and profitability.

Question 9.
Give the functions of financial market.
Answer:
Financial market is a merket for the creation and exchange of financial assets. Its functions are as follows:

1. Mobilization of savings and channelising them into the most productive uses.
2. Facilitate price discovery.
3. Provide liquidity to financial assets.
4. Reduce the cost of transactions.

Question 10.
What do you mean by money market?
Or, “Money market is essentially a market for short-term funds.” Discuss.
Answer:
The money market is a market in which short-term money loan or financial assets that are close or near substitute of money are traded. The ‘short term’ means generally for the period upto one year. The term ‘close substitutes for money’ is used to denote financial assets which can be turned into cash quickly. It is a market where low risk, unsecured and short term debt instruments that are highly liquid are issued and actively traded everyday. It has no physical location, but is an activity conducted over the telephone and through the internet.

It enables the raising of short term funds for meeting the temporary shortage of cash and obligations of the temporary deployment of excess funds for earning returns. The major participants in the market are the Reserve Bank of India (RBI), commercial banks, non-banking finance companies, state governments, large corporate houses and mutual funds.

Question 11.
Discuss the objectives for evolution of money market.
Answer:
There are mainly four objectives of money market:

• It provides an equilibrating mechanism for earning out short term surpluses and deficits.
• The money market provides a focal point for Central Bank intervention for influencing liquidity in the economy.
• It provides reasonable access to users of short-term money to meet their requirements at realistic, price.
• From the point of view of an efficient banking system, the money market should genuinely equilibrate in the short term to provide a viable alternative to default in the maintenance of reserve requirement by banks.

Question 12.
Discuss the functions of money market.
Answer:
There are various functions performed by money market for overall economic development of country, main are as follows:

• It provides outlets to commercial banks, non-banks financial concerns, business corporations and other investors for short-term.
• It also provides short term funds to business man, industrialists, traders, etc. to meet their day-to-day requirement of working capital.
• It enables businessmen with temporary surplus funds to invest them for a short periods.
• By discounting the bills and commercial papers the money market bridges the time limit between the sale and actual payment of money.

Question 13.
What is Capital market?
Answer:
Capital market is concerned with long term finance for industry and government, just as money market is concerned with supply of short-term finance to trade and industry. Capital market consists of series of channels through which the saving of community are made available for industry and government.

It refers to all the facilities and industrial arrangement for the borrowing and lending term funds. It directs savings into most productive uses leading to growth and development of the economy. An ideal capital market is one where finance is available at reasonable cost.

Question 14.
How capital market function?
Answer:
The term capital market refers to facilities and industrial arrangement through which long term funds, both debt and equity are raised and invested. The capital market consists of development banks, commercial banks and stock exchanges.

An ideal capital market is one where finance is available at reasonable cost. The process of economic development is facilitated by the existence of a well-functioning capital market. Infact, development of the financial system is seen as a necessary conditions for economic growth. It is essential that financial institutions are sufficiently developed and that market operations are free, fair, competitive and transparent. The capital market should also be efficient in respect of the information that it delivers, minimize transaction cost, allocate capital most productively.

Question 15.
Explain the two parts of Capital market.
Answer:
The capital market can be divided into two parts:

1. Primary market
2. Secondary market

1. Primary market: The primary market is known as the new issues market. It deals with flow securities being issued for the first time. The essential function of a primary market is to facilitate the transfer of investible funds from savers to entrepreneurs seek to establish new entereprise or to expand existing ones.

2. Secondary Market: The secondary market is also know, as the stock market or stock exchange. It is a market for the purchase and sale of existing securities. It helps existing investors to disinvest and fresh investors to enter the market. It also provides liquidity arid marketability to existing securities.

Question 16.
What are the features of Indian capital market?
Answer:
The capital market in India has exhibited following special features in the recent years:

• Greater reliance on debt instruments as against equity and in particular borrowing from financial, institutions.
• Issue of debentures, particularly convertible debentures with automatic and compulsory conversion into equity without the normal option given to investors.
• Floation of equity issues for the purpose of takeover, amalgamation, etc. and avoidance of borrowing from financial institutions for fear of their discipline and conversion clause by bigger companies.
• Avoidance of underwriting by some companies to reduce the costs and avoid scrutiny by financial institutions.

Question 17.
Discuss the functions of stock exchange.
Answer:
The functions of a Stock Exchange are as follow:
1. A ready and continuous market for trading: Stock exchange provides a ready market for those who wish to buy and sell securities. Buyers and sellers do not have to search for each other. They come in contact with each other through brokers who provide a quick intermediation between them.

2. Liquidity: It provides quick liquidity to investors who are motivated by liquidity factors. People with surplus cash can invest in securities which provide them a return higher than the bank rate and people with deficit it cash can sell their securities to convert them into cash.

3. Time efficiency: It enables the security holder to dispose off his securities at the best price in the shortest possible time period. So it true for buyers.

4. Source of finance: Government local bodies, financial corporations and corporate enterprises have been able to raise crores of rupees by channelising individuals funds in securities. It thus, provides an effective source of finance to them where by they connect their financial requirements for their day-to-day working, setting up to new ventures, expansion, diversifications and modernisation of their existing units.

5. Pricing of securities: It, prices the securities as close as possible to their net worth. The prices are based on their present and future income earning capacity. Though some degree of speculation is always present, buyers and sellers deals in securities which almost reflect their true “work. Prices are quoted and published daily in the forms of stock market quotations.

6. Equity and safety in dealings: A stock exchange operates in accordance with rules and regulations framed by the government. The government is empowered under the Securities Contracts (Regulations) Act, 1956 to grant and withdraw approval or change bye-laws, demand enquiries on the members of stock exchange, supersede and suspend the governing body of the stock exchange, suspend its business etc.

7. Mobilisation of savings: It provides an outlet for investment of surplus funds of corporates and non-corporates in corporate securities that would fetch them a ratio of return generally higher than the rate offered by banks.

8. Capital formation: By channelising savings in the most productive investment outlets, stock exchanges provides for capital formation and economic growth of an economy.

Question 18.
What is meant by National Stock Exchange of India (NSE)?
Answer:
The National Stock Exchange is the latest, most modem technology driven exchange. It was incorporated in 1992 and was recognised as a Stock Exchange in April 1993. It started operations in 1994, with trading on the wholesale debt market segment. Subsequently, it lanched the capital market segment in November 1994 as a trading platform for equities and the futures and option segment in June 2000 for various derivate instruments. NSE has set f up a nation-wide fully automated screen based trading system.

The NSE was set up by leading financial institutions, banks, insurance companies and other financial intermediaries. It is managed by professional, who do not directly or indirectly trade as on the exchange. The trading rights are with the trading members who offer their services to the investors. The board of NSE comprises of senior executives.

Question 19.
Authority can be delegated but not responsibility. Explain.
Answer:
The power of taking decision in order to guide the activities of others is called authority. Authority can be delegated where the obligation of a subordinate to perform assigned duties. The manager divides some of work and authority among his subordinates. No manager can perform all the function himself. Responsibility can not be delegated in any circumstances.

Question 20.
What are the reasons for the establishment of SEBI?
Answer:
The capital market has witnessed a tremendous growth during 1980’s charactered particularly by the increasing participation of the public. This ever expanding investors population and market capitalization led to a variety of malpractices on the part of companies and others involved in the securities market. The glaring examples of these malpractices include existence of self-styled merchant bankers, unofficial private placements rigging off prices, unofficial premium on new issues, non-adherence of provision of the Companies Act, violation of rules and regulations of stock exchanges and listing requirements, delay in delivery of shares etc. These malpractices and unfair trading of shares etc. These malpractices and unfair trading practices have eroded investors’ confidence and multiplied investors’ grievances.

The government and the Stock Exchange authorities were helpless in redressing the investors problems because of lack of proper penal provision in the existing legislation. This gave rise reasons to establish Securities Exchange Board of India.

Question 21.
Define the Securities and Exchange board of India (SEBI).
Answer:
The Securities and Exchange Board of India was established by the Government of India on 12th April for the orderly and healthy growth of securities market and for investors protections. It was to function under the administrative control of the ministry of finance of the Government of India. The SEBI was given all powers through the ordinance passed in Parliament to redress the investors and to control the malpractices prevailing in stock exchanges, the government of India took initiative to set up a separate regulatory body known as Securities and Exchange Board of India.

Question 22.
What is ‘Treasury Bills’?
Answer:
Treasury Bills: Treasury bills are issued by the Reserve Bank of India on behalf of the Government of India as a short term liability, and sold to banks and to the public, The issue period ranges from 14 to 364 days. Treasury bills are negotiable instrument, i.e,. there are freely transferable. They do not pay any interest but are issued at a discount. Their marketability makes them popular and they are considered a safe investment.

Question 23.
What is marketing? What functions does it play in process of exchange of goods and services? Explain.
Answer:
According to Candiff and Still marketing is the business process by which products are matched with the markets and through which transfers of ownership are affected. If a business organization produces the products after assessing the requirements of prospective customers, it is more likely to be successful to achieve its objective. The process of marketing works through the exchange mechanism.

The individual buyers and sellers obtain what they need and want through the process of exchange i.e. the process of marketing involves exchanges of products and services for money or something considered valuable by the people. Exchange mechanism refers to the process through which two or more parties come together to obtain the desired products or service from someone.

Question 24.
Give the important features of marketing.
Answer:
Features of Marketing:
1. Need and wants: The process of marketing helps individuals and groups in obtaining what they heed and want. Thus, the primary reason for people to engage in the process of marketing is to satisfy some of their needs or wants. Needs are basic to human beings and do hot pertain to a particular product. Wants are culturally defined objects that are potential satisfiers of needs.

2. Creating a market offering: Marketing offering refers to a complete offer for a produce for service, having given features, like size, quality, taste, etc. at a certain price, available at a given outlet or location and soon. A good ‘market-offer’ is the one which is developed after analysing the needs and preference of potential buyers.

3. Customer value: The process of marketing facilitates exchange of products and services between the buyers and sellers. The buyers make buying decision on their perception of the value of the product or service in satisfying their need, in relations to its cost. A product will be purchased only if it is perceived to be giving greatest benefit or value for the money.

4. Exchange mechanism: The process of marketing works through the exchange mechanism. The individuals (buyers and sellers) obtain what they need and want through the process of exchange. In the modem world, goods are produced at different places and are distributed over a wide geographical area through various middlemen, involving exchanges at different levels of distribution.

In short marketing is not merely a business phenomenon or confined only to business organiations but marketing activities are equally relevant to nonprofit organisations such as hospitals, schools, sports-clubs and social and religious organizations.

Question 25.
What are the main objectives of marketing?
Answer:
The main objectives of marketing are:

• Consumer Satisfaction: A business organisation can survive only if its products and services are demanded by customers. Effective marketing makes an effort to supply goods and services to the consumer.
• Identification of consumers’ demand: Marketing is concerned with assessment of consumers’ demand so that the producer can know what goods be produced and in what quantity.
• Co-ordination with other business activities: Marketing makes an effective effort of Co-operation with other aspect’s of business.
• Sales promotion: The aim of marketing is to boost sales through advertisement of mass contact technique. The new and old customers should be kept well informed about the quality and price of product.
• Control on sales areas: Marketing is useful in controlling the sales areas of any business organisation. Every organisation plans its sales according to an area or region, if any variation in sales then it sounds be corrected as soon as possible.

Question 26.
What are the differences between marketing and selling.
Answer:
The differences between marketing and selling are:
Marketing

1. Focuses on customer heeds.
2. Customer enjoys supreme importance.
3. Product planning and development to match products with markets,
4. Inregrated approach to achieve long term goals.
5. Converting customers needs.
6. Caveat vender (let the sellers beware)
7. Profit through customer satisfaction.

Selling:

1. Focuses on seller needs.
2. Product enjoys supreme importance.
3. High pressure selling to sell goods already produced.
4. Fragmented approach to achieve immediate gains.
5. Converting products into cash.
6. Caveat emptor (let the buyers beware).
7. Profit through sales volume.

Question 27.
Define the marketing management.
Answer:
Marketing management involves planning, organising, directing and controlling all marketing activities. It is responsible for developing and executing an appropriate marketing mix so as to achieve the organisational objectives. According to Philip Kotler, marketing management is the analysis, planning, implementation and control of programmes designed to create, build and maintain mutually beneficially exchanges and relationships with target market for the purpose of achieving organisational objectives.

Marketing management is thus marketing concept in action. It is an important functional are a of business. In most of the large concerns it is organised as a separate marketing department under the control of a marketing manager.

Question 28.
Explain the significance of marketing mix.
Answer:
Marketing mix represents a blending off our elements, product, price, promotion and physical distribution. Determination of marketing mix is an important decision which the market manager has to take. If proper marketing mix is determined the following benefits will accure to the organisation:

• Marketing mix serves as the link between the business firm and its customers. It focuses attention on the satisfaction of customers. Thus, it helps in pursuing consumer oriented marketing.
• Since marketing mix takes care of the needs of the customers it helps in increasing.sales and earning higher profits.
• Marketing mix gives consideration to the various elements of marketing system. There is a balanced relation between these elements.
• Marketing mix signifies that its four dements are closely inter-related. Decisions or changes in one element usually affect decisions or changes in the other.
• Marketing mix facilitates melting the requirements of different types of customers, product design, pricing, promotion and distribution will depend upon the needs and purchasing power of the customers.

Question 29.
Define advertising. What arc its main features? Explain.
Answer:
Advertising: Advertising is the dissemination of information, concerning an idea, product or service to induce action in accordance with the intent of the advertiser. According to William J. Stanton, “Advertising consists of all the activities involved in presenting to a group a non-personal oral or visual, openly sponsored message regarding a product, service or idea, this message called an advertisement, is disseminated through one or more media and is paid for by the identified sponsor.”

Features of advertising:

• The purpose of advertising is to promote ideas about the products and services of a business firm. It is directed towards increasing the sales of a business.
• Advertising is a non-personal form of presentation and promotion of ideas, goods or services, There is no face to face direct contact with the customers,
• It is also described as non-personal sales-manship. It is complementary to personal selling because it simplifies the task of sales force by creating awareness about the message in the minds of potential customers.
• Advertising is a paid form of communication. The advertisements are communicated through various advertising media and the advertiser has to pay for the space or time hired by him to communicate the message to the present and prospective customers.
• Advertising is done by an identified sponsor.

Question 30.
Give the functions of labeling in the marketing of products.
Answer:
The functions of labeling are as follows:
1. It suggests the product’s usage, cautions in use, etc. and specify its components.
2. It helps in identifying the product or brand. For example, the name Parle, Monaco imprinted on the pack helps us to identify from number of packs which one is Parle’s Monaco Biscuit.
3. It helps in grading the products into different categories. For example, Gamier. Hair conditioner comes in different categories for different hair say for ‘normal hair’ and for other categories.
4. It helps in promotion of the products. A carefully designed level can attract attention and give reason to purchase it. For example, the pack of Dabur Amla hair oil states, “Baalon mein dum, life main fun”. The label for Surf Excelmatic says, “Keep cloth, good look and your machine in top condition.”
5. Labelling performs the functions of providing information required by law. For example, the statutory warning on the package of cigarette or Pan masala is, “Smoking is injurious to health” or “Chewing tobacco is injurious to health”. Such information is required on processed goods, drugs and tobacco products also.

Question 31.
Give the distinction between Advertisement and Personal Selling.
Answer:
Distinction between advertisement and personal selling:

Question 32.
Product is a bundle of utilities. Do you agree?
Or, Product is a mixture of tangible and intangible attributes. Discuss.
Answer:
A product may be defined as a bundle of utilies consisting of various product features and accompanying services. The bundle of utilities or the bundle of psychological satisfaction that the buyer receives is provided by the seller when he sells a particular product. Anything that can be of value to the buyers termed as products.

It can be tangible i.e. which can be felt seen and touched physically such as pencil, a cycle or an intangible such as services rendered by a doctor, hair dresser or a lawyer. Thus, anything that has value to the other can be marketed. It can be a product or a service or a person or a place, an idea or an event or an organisation or experience or properties.

Question 33.
What are your responsibilities as a customer?
Or, State any two points of responsibility of a consumer.
Answer:
As a customer our responsibilities are as follows:

• Do not make hurry in buying.
• Do not make forget to get receipt and Guarantee/Warranty card.
• Do not make compromise with quality.
• Beware from false and misleading advertisement.
• Contact immediately to the concerned officer against grievance/complaint.

Question 34.
What is Recruitment? How it is differ from selection?
Answer:
Recruitment function is concerned with discovering the sources of manpower required and tapping these sources, i.e. attracting the potential employees to offer their services to the working organisation.

Difference between recruitment and Selection:

Question 35.
What is meant by ‘Leadership’?
Answer:
Leadership may be defined as the process of influencing the behaviour of people at work, towards the realisation of specified goals. It involves ability to use non-coercive influence on the activities, goals and motivation of others achieving organisational objectives.

Question 36.
State any two differences between Advertising and Personal Selling.
Answer:
Advertising

1. Advertising is a means of indirect and impersonal communication.
2. It is a means of mass communication.
3. Usually there is no personal contact in case of advertising.
4. Message reaches the customers quickly.

Personal Selling:

1. Personal selling is a means of direct face-to-face communication.
2. Only limited number of people can be contacted.
3. There is personal contact.
4. Message reaches at a very slow speed.

Question 37.
What is meant by on the job training?
Answer:
On the job method: The trainees are asked to do a particular job on a machine or in a workshop or laboratory. They are taught the technique of operating a machine or using tools are equipment by an experienced employee or a special supervisor. In this way, the trainees learn a job and also produce goods. Supervisor examines the work done by them from time to time and in case of any defect suggests the way tomend it.

Question 38.
State two points of importance of Supervision.
Answer:
The term supervision is normally used m management to mean overseeing the employees at work. It implies, instructing, observing, monitoring and guiding the subordinates at work place to ensure that plans and procedure are implemented as intended, (i) It is a universal activity performed at all levels of management, (ii) It is an important part of the directing function of management.

Question 39.
What is Budgetary control?
Answer:
Budgetary control is a technique of controlling based on budgets. A budget is a quantitative statement for a definite future period of time for the purpose of obtaining a given period. Actual results are compared with budgetary standard. An organisation may have a budget for any activity or function.

Question 40.
State any two features of Scientific Management.
Answer:
Two features of scientific management:

1. Systematic approach: Scientific management is a systematic approach to management and its use ensure that all activities are completed in a systematic and scientific manner.
2. Improves the efficiency of workers: The main aim of scientific management is to increase the efficiency of workers. This is done through conducting various kind of studies such as time study, motion study and fatigue study.

Question 41.
How scale of operation affect the requirement of fixed capital?
Answer:
Fixed capital requirements depend on the size of business. If the size is big, it will need more fixed capital. For smaller organisation the need will be less.

Question 42.
How “scale of oprations” affect the requirement of fixed Capital?
Answer:
Fixed capital requirements depend on the size of business. If the size is big, it will need more fixed capital. For smaller organisation the need will be less.

Question 43.
“Sales promotion makes advertising effective.” How?
Answer:
Once the samples of a particular product reach the consumers through sales promotion the advertisement of the same product gets more effective.

Question 44.
Give two advantages of functional Organisation.
Answer:
The advantages of functional structure are:

1. It is easier to organise department based on functions and sub-functions
2. It gives balanced weightage to the basic functions on which the survival of a firm depends.

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 5 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 5

Question 1.
IDBI was established in the year
(a) 1944
(b) 1954
(c) 1964
(d) 1974
Answer:
(c) 1964

Question 2.
Dividend is
(a) Net profit
(b) Reserve fund
(c) Appropriation of profit
(d) Loss rate
Answer:
(c) Appropriation of profit

Question 3.
Public deposits are the source of
(a) Short term finance
(b) Long term finance
(c) Medium term finance
(d) Social investigator
Answer:
(c) Medium term finance

Question 4.
When is divided given upon cumulative preference share?
(a) In the year of profit
(b) In the year of loss
(c) In the year of profit or loss
(d) None of these
Answer:
(c) In the year of profit or loss

Question 5.
Telephone expenseis
(a) Fixed
(b) Variable
(c) Semi-variable
(d) None of these
Answer:
(c) Semi-variable

Question 6.
The best example of variable cost is
(a) Interest on capital
(b) Rent
(c) Material cost
(d) Wealth tax
Answer:
(c) Material cost

Question 7.
Fixed cost per unit increase when
(a) Production decreases
(b) Production increases
(c) Production remains same
(d) All of the above
Answer:
(a) Production decreases

Question 8.
Which of the following is not factory overhead?
(a) Factory insurance
(b) Depreciation on plant
(c) Drawing office salary
(d) Salary
Answer:
(d) Salary

Question 9.
Which of the following example of fixed cost?
(a) Direct material cost
(b) Chargeable expense
(c) Salary of office management
(d) Direct labour cost
Answer:
(d) Direct labour cost

Question 10.
Price policy is
(a) In favour of consumer
(b) In favour of government
(c) In favour of manufacturer
(d) In favour of all
Answer:
(d) In favour of all

Question 11.
Merger means
(a) Taking over one organisation by another organisation
(b) Combination of two or more business
(c) Acquiring controlling interest in organisation
(d) None of the above
Answer:
(b) Combination of two or more business

Question 12.
Generally diversification is classified in
(a) Two ways
(b) Three ways
(c) Four ways
(d) Five ways
Answer:
(c) Four ways

Question 13.
Conglomeration is a technique to
(a) Develop in the same industry
(b) Diversify in other areas
(c) Taking over other units
(d) Divide the organisation in subunits
Answer:
(b) Diversify in other areas

Question 14.
Modernisation is necessary
(a) To increase export
(b) To received self depend
(c) Increase employment
(d) All of the above
Answer:
(d) All of the above

Question 15.
Main functions of financial management are
(a) Procurement of funds
(b) Utilisation of funds
(c) Allocation of net profits
(d) None of these
Answer:
(d) None of these

Question 16.
Source of trade credit is
(a) Long-term finance
(b) Medium-term finance
(c) Short-term finance
(d) None of these
Answer:
(a) Long-term finance

Question 17.
Fixed capital needed for …………. period.
(a) For short period
(b) For long period
(c) For both
(d) None of these
Answer:
(a) For short period

Question 18.
Bank overdraft facilities are available on
(a) Saving Bank A/c
(b) Current A/c
(c) Term Deposit A/c
(d) All of these
Answer:
(b) Current A/c

Question 19.
Financial management is
(a) Art
(b) Science
(c) Both
(d) None of these
Answer:
(c) Both

Question 20.
Dividentis
(a) net profit
(b) appropralation of profit
(c) reserve fund
(d) past undistributed profit
Answer:
(b) appropralation of profit

Question 21.
The first step to translate ideas into actions is business
(a) Planning
(b) Finance
(c) Organisation
(d) Location
Answer:
(a) Planning

Question 22.
The rate of dividend on preference shares of
(a) Variable
(b) Fixed
(c) Semi-variable
(d) none of these
Answer:
(b) Fixed

Question 23.
Debentures are
(a) unsecured borrowings
(b) fully secured borrowings
(c) Pastly secured borrowings
(d) all of the above
Answer:
(a) unsecured borrowings

Question 24.
The purpose of advertising is
(a) to attract potential buyers
(b) to inform and guide customer
(c) to make publicity of product
(d) all of the above
Answer:
(d) all of the above

Question 25.
According to guidelines issued by government debt equity ration for venture capital fund is
(a) 1.5
(b) 2.0
(c) 0.5
(d) 2.5
Answer:
(a) 1.5

Question 26.
Management is a profession. This statement is of
(a) Lawrance A. Appley
(b) R.C. Davis
(c) Henry Fayol
(d) None of these
Answer:
(b) R.C. Davis

Question 27.
Marketing concept is
(a) Production-oriented
(b) Sales-oriented
(c) Customer-oriented
(d) All of these
Answer:
(d) All of these

Question 28.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 29.
Under franchising
(a) Control on the product remains in the hands of franchise
(b) Control on the product goes in the hands of franchise
(c) Above (a) and (b)
(d) None of the above
Answer:
(a) Control on the product remains in the hands of franchise

Question 30.
Lack of standardisation of the equipment is due to
(a) Internal constraints
(b) External constraints
(c) Government Barriers
(d) Regulatory Barriers
Answer:
(b) External constraints

Question 31.
Project life cycle is not concerned with the following
(a) Pre-investment stage
(b) Constructive stage
(c) Normalisation stage
(d) Stabilistion stage
Answer:
(d) Stabilistion stage

Question 32.
Modernisation improves
(a) Products
(b) Production
(c) Processes
(d) Capacity
Answer:
(d) Capacity

Question 33.
Gestation period is concerned with
(a) Idea creation period
(b) Incubation period
(c) Implementation period
(d) Commercialisation period
Answer:
(c) Implementation period

Question 34.
What is required for fixed capital and working-capital of any enterprise?
(a) Finance
(b) Marketing
(c) Planning
(d) None of the above
Answer:
(a) Finance

Question 35.
The term “fund” as used in fund flow analysis means
(a) Cash only
(b) Current Assets
(c) Current liabilities
(d) Excess of current assets over current liabilities
Answer:
(d) Excess of current assets over current liabilities

Question 36.
What affects purchase of plant will have on working capital?
(a) Decrease
(b) Increase
(c) No effect
(d) None of the above
Answer:
(a) Decrease

Question 37.
B.E.P. =
(a) \(\frac{\text { Fixed Cost }}{P / V \text { Ratio }}\)
(b) \(\frac{\text { Fixed Cost }}{\text { Contribution }} \times 100\)
(c) \(\frac{\mathrm{P} / \mathrm{V} \text { Ratio }}{\text { Fixed } \cost}\)
(d) None of these
Answer:
(a) \(\frac{\text { Fixed Cost }}{P / V \text { Ratio }}\)

Question 38.
P/V ratio
(a) \(\frac{\text { Contribution }}{\text { Sales }} \times 100\)
(b) \(\frac{\text { Sales }}{\text { Contribution }} \times 100\)
(c) \(\frac{\text { Contribution }}{\text { Sales }}\)
(d) None of these
Answer:
(a) \(\frac{\text { Contribution }}{\text { Sales }} \times 100\)

Question 39.
Risk Capital Foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 40.
Technological Development and Infrastructure Corporation of India was established in the year
(a) 1975
(b) 1986
(c) 1988
(d) 1990
Answer:
(c) 1988

Question 41.
What is management?
(a) Science
(b) Art
(c) Art and Science both
(d) None of these
Answer:
(c) Art and Science both

Question 42.
The foremost need of development in a country is of
(a) Physical Resources
(b) Economic Resources
(c) Efficient management
(d) None of these
Answer:
(c) Efficient management

Question 43.
Present production system in fact is
(a) Direct production
(b) Indirect production
(c) Primary
(d) Secondary
Answer:
(b) Indirect production

Question 44.
Out of the following which is the method of quality control?
(a) Inspection method
(b) Statistical quality central method
(c) Both “a” and “b” above
(d) None of these
Answer:
(c) Both “a” and “b” above

Question 45.
Out of the following which is the method of production?
(a) Direct method of production
(b) Indirect method of Production
(c) Both “a” and “b” above
(d) None of the above
Answer:
(c) Both “a” and “b” above

Question 46.
Marketing Expenditure is a burden
(a) On Industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 47.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All of these
Answer:
(d) All of these

Question 48.
Maximum wide scope is of
(a) Brand
(b) Labelling
(c) Packaging
(d) Trade mark
Answer:
(c) Packaging

Question 49.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 4 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 4

Question 1.
What is net sales?
(a) Gross sales – Sales return
(b) Sales return – Gross sales
(c) Gross sales – Profit
(d) Gross sales + Profit
Answer:
(a) Gross sales – Sales return

Question 2.
The formula of operating profit ratio
(a) \(\frac{\text { Gross profit }}{\text { sales }} \times 100\)
(b) \(\frac{\text { Net profit margin }}{\text { sales }} \times 100\)
(c) \(\frac{\text { Operation profit }}{\text { sales }} \times 100\)
(d) \(\frac{\text { Net profit }}{\text { sales }} \times 100\)
Answer:
(c) \(\frac{\text { Operation profit }}{\text { sales }} \times 100\)

Question 3.
Operating ratio = ?
(a) Gross profit – Sales
(b) Profit – Loss
(c) Net sales – Gross profit
(d) Cost + Profit
Answer:
(c) Net sales – Gross profit

Question 4.
An ideal current ratio is
(a) 2 : 1
(b) 1 : 2
(c) 3 : 2
(d) 4 : 1
Answer:
(a) 2 : 1

Question 5.
Current ratio is
(a) Composite ratio
(b) P/L ratio
(c) Balance sheet ratio
(d) None of these
Answer:
(c) Balance sheet ratio

Question 6.
Which of the following is not operating expense?
(a) Advertising expense
(b) Wages
(c) Written of preliminary exp.
(d) Rent
Answer:
(c) Written of preliminary exp.

Question 7.
Formula of the depreciation to sales
(a) \(\frac{\text { Depreciation }}{\text { Net sales }} \times 100\)
(b) \(\frac{100}{\text { Net sales }} \times \text { depreciation }\)
(c) \(\frac{\text { Net sales }}{\text { Depreciation }} \times 100\)
(d) \(\frac{\text { Depreciation }}{100} \times \text { Net sales }\)
Answer:
(a) \(\frac{\text { Depreciation }}{\text { Net sales }} \times 100\)

Question 8.
Contribution
(a) Sales less total cost
(b) sales less variable cost
(c) Sales less fixed cost
(d) None of these
Answer:
(b) sales less variable cost

Question 9.
Break even point
(a) \(\frac{\text { Fixed cost }}{\text { Contribution per unit }}\)
(b) \(\frac{\text { Variable cost }}{\text { Contribution }}\)
(c) \(\frac{\text { Fixed cost }}{\text { Profit }} \times 100\)
(d) \(\frac{\text { Unit cost }}{\text { Loss }} \times 100\)
Answer:
(a) \(\frac{\text { Fixed cost }}{\text { Contribution per unit }}\)

Question 10.
Utility is included in BEP as
(a) Diagnostic tool
(b) Risk valuation
(c) Profit improvement
(d) All of these
Answer:
(d) All of these

Question 11.
The difference between actual sale and break-even sale is called
(a) Net profit
(b) Gross profit
(c) Contribution
(d) Margin of safety
Answer:
(d) Margin of safety

Question 12.
Risk capital foundation was established in
(a) 1970
(b) 1975
(c) 1986
(d) 1988
Answer:
(b) 1975

Question 13.
Venture capital thought was originated in
(a) India
(b) England
(c) America
(d) Japan
Answer:
(d) Japan

Question 14.
Venture capital was established in SIDBI
(a) 1972 – 73
(b) 1952 – 53
(c) 1992 – 93
(d) 1892 – 93
Answer:
(c) 1992 – 93

Question 15.
Risk capital foundation was established by
(a) IFCI
(b) UTI
(c) IDBI
(d) ICICI
Answer:
(a) IFCI

Question 16.
Venture capital contains
(a) High risk
(b) Venture risk
(c) No risk
(d) None of these
Answer:
(a) High risk

Question 17.
According to guidelines issued by government, debt equity ratio for venture capital is
(a) 1.5
(b) 2.0
(c) 0.5
(d) 2.5
Answer:
(a) 1.5

Question 18.
Indian investment fund was established by
(a) IFCI
(b) SBI
(c) Can Bank
(d) Grindlay Bank
Answer:
(d) Grindlay Bank

Question 19.
Variables are used for technical capability
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(c) 4

Question 20.
Labour intensive technique is appropriate because it relate with
(a) Unstable nature
(b) Movable nature
(c) Constant nature
(d) Advantage in nature
Answer:
(a) Unstable nature

Question 21.
Capital intensive technique is not much useful because it
(a) Helps labour power
(b) Exploit customers
(c) Improves balanced regional developments
(d) Control capitalised resources
Answer:
(b) Exploit customers

Question 22.
Capital intensive technique is favoured due to
(a) Rapid growth
(b) Social influence
(c) (a) & (b) both
(d) None of these
Answer:
(d) None of these

Question 23.
Management is
(a) Art
(b) Science
(c) Art & Science both
(d) None of these
Answer:
(c) Art & Science both

Question 24.
The social responsibility of management is
(a) Towards the government
(b) Towards all
(c) Towards employees
(d) Towards himself
Answer:
(b) Towards all

Question 25.
Management is a profession. This statement is of
(a) Fayol
(b) Terry
(c) Robins
(d) American Management Association
Answer:
(d) American Management Association

Question 26.
Management is the development of men and not the direction of things
(a) Lawrence A. Appley
(b) R. C. Devis
(c) Keith and Gubelline
(d) Henry Fayol
Answer:
(a) Lawrence A. Appley

Question 27.
H. Fayol started the function of management
(a) 1912
(b) 1816
(c) 1916
(d) 1926
Answer:
(a) 1912

Question 28.
Function of management is
(a) 2
(b) 3
(c) 4
(d) 5
Answer:
(d) 5

Question 29.
Motivation includes
(a) Directing
(b) Controlling
(c) Staffing
(d) Planning
Answer:
(a) Directing

Question 30.
According to American Management Association, Management is a
(a) Science
(b) Profession
(c) Art
(d) Employment
Answer:
(b) Profession

Question 31.
Steps of product are
(a) Extractive
(b) Genetic
(c) Communication
(d) Extractive and Genetic
Answer:
(d) Extractive and Genetic

Question 32.
Production design includes
(a) Standardisation
(b) Planning
(c) Cost
(d) Control
Answer:
(a) Standardisation

Question 33.
Infact, present production system is
(a) Direct production
(b) Primary
(c) Secondary
(d) Indirect production
Answer:
(d) Indirect production

Question 34.
Use of linear programming
(a) In production method
(b) In market method
(c) In transportation method
(d) All of these
Answer:
(c) In transportation method

Question 35.
Production process includes
(a) Creativity
(b) Price
(c) Warehousing
(d) All of these
Answer:
(a) Creativity

Question 36.
The purpose of advertisement is
(a) To attract potential buyers
(b) To inform and guide customers
(c) To make publicity of product
(d) All of these
Answer:
(d) All of these

Question 37.
Brand indicates
(a) Symbol
(b) Design
(c) Name
(d) All of these
Answer:
(d) All of these

Question 38.
What does affect product mix?
(a) Marketing
(b) Product
(c) Financial
(d) All of these
Answer:
(a) Marketing

Question 39.
Which is the most important scope?
(a) Brand
(b) Labelling
(c) Packaging
(d) Trade mark
Answer:
(c) Packaging

Question 40.
Labelling is
(a) Compulsory
(b) Necessary
(c) Voluntary
(d) Wastage of money
Answer:
(b) Necessary

Question 41.
The characteristics of a good brand are
(a) Short name
(b) Memorable
(c) Attractive
(d) All these
Answer:
(d) All these

Question 42.
Importance of marketing concept is for
(a) Society
(b) Consumers
(c) Producers
(d) All the three
Answer:
(d) All the three

Question 43.
Marketing concept is
(a) Production oriented
(b) Sales oriented
(c) Customer oriented
(d) All the three
Answer:
(d) All the three

Question 44.
The advantage of marketing is to
(a) To consumers
(b) To businessmen
(c) To producer
(d) To all
Answer:
(d) To all

Question 45.
For business, marketing is
(a) Compulsory
(b) Necessary
(c) Unnecessary
(d) Luxury
Answer:
(a) Compulsory

Question 46.
Marketing expenditure is a burden
(a) On industry
(b) On businessmen
(c) On consumers
(d) All of these
Answer:
(c) On consumers

Question 47.
Money spent on marketing is
(a) Wastage
(b) Unnecessary expenses
(c) Burden on customer
(d) Investment
Answer:
(d) Investment

Question 48.
The rate of dividend on preference share is
(a) Fixed
(b) Variable
(c) Semi variable
(d) All of these
Answer:
(a) Fixed

Question 49.
SFC Act in India was passed in the year
(a) 1948
(b) 1949
(c) 1950
(d) 1951
Answer:
(b) 1949

Question 50.
IFCI was established in the year
(a) 1939
(b) 1948
(c) 1950
(d) 1956
Answer:
(b) 1948

BSEB Bihar Board 12th Business Studies Important Questions Objective Type Part 2 are the best resource for students which helps in revision.

Bihar Board 12th Business Studies Objective Important Questions Part 2

Question 1.
Which of the following is not the tool of sales promotion?
(a) Samples
(b) Prize in packet
(c) Coupons
(d) Publicity
Answer:
(a) Samples

Question 2.
Modern approach of financial management is
(a) procurement of funds
(b) utilisation of funds
(c) (a) and (b) both
(d) None of these
Answer:
(c) (a) and (b) both

Question 3.
The functions of Entrepreneur are
(a) To imagine business idea
(b) To study project feasibility
(c) To set up enterprise
(d) all of the above
Answer:
(d) all of the above

Question 4.
Which of the following is function of packaging?
(a) Protection
(b) Convenience
(c) Indentification
(d) All of the above
Answer:
(d) All of the above

Question 5.
Planning is not the remedy of all business evils, because
(a) Planning is generally biased and time consuming
(b) Planning is goal oriented
(c) Planning enables us to face future uncertainties
(d) Planning improves competitive strength Ans. (b)
Answer:
(b) Planning is goal oriented

Question 6.
Which of the following is a determinant of Capital structure?
(a) Cash Flow Statement
(b) Interest Coverage Ratio
(c) Debt Service Coverage Ratio
(d) All of the above
Answer:
(a) Cash Flow Statement

Question 7.
Which of the following is not a characteristic of Entrepreneurship?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 8.
Grapevine Communication is
(a) informal
(b) formal
(c) written
(d) none of these
Answer:
(a) informal

Question 9.
The foremost stock exchange in the world was established in
(a) Delhi
(b) London
(c) America
(d) Japan
Answer:
(b) London

Question 10.
State Commission can settle consumer disputes
(a) up to Rs 5 lakh
(b) up to Rs 10 lakh
(c) up to Rs 20 lakh
(d) Above Rs 20 lakh
Answer:
(d) Above Rs 20 lakh

Question 11.
How many levels of management are?
(a) 3
(b) 4
(c) 5
(d) 6
Answer:
(a) 3

Question 12.
The main function of management according to Koontz O’Donnel are
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(a) 2

Question 13.
The father of Scientific management was:
(a) Gilbreth
(b) Taylor
(c) Robertson
(d) Watson
Answer:
(b) Taylor

Question 14.
Mental Revoultion in the essence of
(a) Scientific management
(b) Combination
(c) Rationalisation
(d) Profession
Answer:
(a) Scientific management

Question 15.
When scientific management was introduced?
(a) 1913
(b) 1832
(c) 1903
(d) 1920
Answer:
(a) 1913

Question 16.
Entrepreneurial Development programme provides?
(a) Self-employment
(b) Education & training
(c) Skill increment
(d) All of these
Answer:
(a) Self-employment

Question 17.
Entrepreneurial Development Institute of India is situated in:
(a) Ahmedabad
(b) Mumbai
(c) New Delhi
(d) Chennai
Answer:
(a) Ahmedabad

Question 18.
Which of the following sentence is not a characteristic of entrepreneurship?
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 19.
“Management is a profession.” This statement is of:
(a) George R. Terry
(b) American Management Association
(c) Henry Fayol
(d) Lawrence A Appley
Answer:
(b) American Management Association

Question 20.
The essence of management is:
(a) Co-ordination
(b) Organisation
(c) Staffing
(d) Controlling
Answer:
(a) Co-ordination

Question 21.
Co-ordination is
(a) Function of management
(b) The essence of management
(c) An objective of management
(d) None of the above
Answer:
(b) The essence of management

Question 22.
Henri Fayol was a
(a) Social scientist
(b) Mining minister
(c) Accountant
(d) Production Engineer
Answer:
(b) Mining minister

Question 23.
Which of the following does not characterise the business environment?
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity
Answer:
(b) Employees

Question 24.
Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal organisation
Answer:
(d) Informal organisation

Question 25.
For delegation to be effective it is essential that responsibility be accompained with necessary
(a) Authority
(b) Manpower
(c) incentives
(d) Promotions
Answer:
(a) Authority

Question 26.
Which one of the following is not an element of direction?
(a) Motivation
(b) Communication
(c) Delegation
(d) Supervision
Answer:
(c) Delegation

Question 27.
Which of the following is a financial incentive?
(a) Promotion
(b) Stock Incentive
(c) Tab security
(d) Employee Participation
Answer:
(b) Stock Incentive

Question 28.
Grapevine is
(a) Formal Communication
(b) Barrier of communication
(c) Lateral Communication
(d) Informal communication
Answer:
(d) Informal communication

Question 29.
Controlling function of an organisation is
(a) Forward looking
(b) Backward looking
(c) Forward as well as backward looking
(d) All of the above
Answer:
(c) Forward as well as backward looking

Question 30.
Budgetary control requires the preparation of
(a) Training schedule
(b) Budgets
(c) Network diagram
(d) Responsibility centres
Answer:
(b) Budgets

Question 31.
The cheapest source of finance is
(a) debentures
(b) equity share capital
(c) preference share
(d) retained earning
Answer:
(a) debentures

Question 32.
A fixed asset should be financed through
(a) a long term liability
(b) a short term liability
(c) a mix of long and short term liability
(d) None of these
Answer:
(a) a long term liability

Question 33.
Primary and secondary markets
(a) Complete with each other
(b) Complement each other
(c) Function independently
(d) Control each other
Answer:
(c) Function independently

Question 34.
Total number of stock exchanges in India are
(a) 20
(b) 21
(c) 22
(d) 23
Answer:
(b) 21

Question 35.
National stock exchange of India was recognised as stock exchange in the year
(a) 1992
(b) 1993
(c) 1994
(d) 1995
Answer:
(b) 1993

Question 36.
Entrepreneurs undertake
(a) Calculated risks
(b) Moderate and calculated risks
(c) Low risks
(d) High risks
Answer:
(a) Calculated risks

Question 37.
In economics, which of the following is not a function of the entrepreneur?
(a) Risk taking
(b) Provision of capital and organisation of production
(c) Innovation
(d) Day to day conduct of business
Answer:
(d) Day to day conduct of business

Question 38.
Communication is a
(a) One-way process
(b) Two-way process
(c) Multiway process
(d) None of these
Answer:
(b) Two-way process

Question 39.
The main function of financial management are
(a) Procurement of funds
(b) Allocation of profits
(c) Utilisation of funds
(d) None of these
Answer:
(d) None of these

Question 40.
Which of the following is not a current assets?
(a) Bills Receivable
(b) Stock
(c) Preliminary Expenses
(d) None of these
Answer:
(b) Stock

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 3 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 3

Question 1.
According to George R. Terry planning are of
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(b) 4

Question 2.
Planning is for
(a) Past
(b) Future
(c) Present
(d) For all
Answer:
(b) Future

Question 3.
Planning is
(a) Necessary
(b) Unnecessary
(c) Wastage of time
(d) Wastage of money
Answer:
(a) Necessary

Question 4.
Planning is the of all managerial activities
(a) Beginning
(b) End
(c) Beginning and End both
(d) None of these
Answer:
(c) Beginning and End both

Question 5.
A good plan is
(a) Goal oriented
(b) Objective oriented
(c) Mental process
(d) All of these
Answer:
(b) Objective oriented

Question 6.
Kinds of Planning on the basis of functions
(a) High level
(b) Middle level
(c) Low level
(d) All of these
Answer:
(d) All of these

Question 7.
Project is not concerned with
(a) Innovation
(b) Vision
(c) Risk
(d) Creativity
Answer:
(d) Creativity

Question 8.
A project is
(a) Cluster of activities
(b) Single activities
(c) Family welfare
(d) opportunity
Answer:
(a) Cluster of activities

Question 9.
Project Management is not concerned with
(a) Functional approach
(b) Centralised policy formulation
(c) Decentralised implementation
(d) Decentralised policy formulation
Answer:
(d) Decentralised policy formulation

Question 10.
Project report is a summary prepared
(a) By promoters
(b) By manager
(c) By entrepreneur
(d) All of these
Answer:
(d) All of these

Question 11.
Project report is a summary of
(a) Facts
(b) Informations
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 12.
When project plan fails?
(a) Employee
(b) Wrong data
(c) Forecasting
(d) None of these
Answer:
(b) Wrong data

Question 13.
Project appraisal is a
(a) Export analysis
(b) Expert analysis
(c) Profitability analysis
(d) All of these
Answer:
(c) Profitability analysis

Question 14.
NPV method relates with
(a) Time value of money
(b) Inflated value of money
(c) Present value of money
(d) None of the above
Answer:
(c) Present value of money

Question 15.
All resources are
(a) Money
(b) Export
(c) Production process
(d) Commerce
Answer:
(c) Production process

Question 16.
Required for fixed capital
(a) Money
(b) Finance
(c) Credit
(d) Goodwill
Answer:
(b) Finance

Question 17.
Fixed cost includes
(a) Cost of labor
(b) Cost of power
(c) Coast of factory
(d) Cost of raw materials
Answer:
(c) Coast of factory

Question 18.
Regular working capital is the part of
(a) Permanent working capital
(b) Variable working capital
(c) Net working capital
(d) None of these
Answer:
(a) Permanent working capital

Question 19.
Networking capital means
(a) C. A. – C. L.
(b) C. A. + C. L.
(c) C. L. – C. A.
(d) All the above
Answer:
(a) C. A. – C. L.

Question 20.
Working capital may be classified into
(a) Permanent working capital
(b) Variable working capital
(c) Regular capital
(d) All the above
Answer:
(d) All the above

Question 21.
Long term loan bears
(a) Fixed rate of interest
(b) Zero rate of interest
(c) Flexible rate of interest
(d) All the above
Answer:
(a) Fixed rate of interest

Question 22.
Various public utility undertaking have to invest heavily
(a) Current assets
(b) Fixed assets
(c) Fictitious assets
(d) Factory assets
Answer:
(b) Fixed assets

Question 23.
Commercial paper was implemented in
(a) 1690
(b) 1790
(c) 1890
(d) 1990
Answer:
(d) 1990

Question 24.
NPV method relates with:
(a) inflated value of money
(b) present value of money
(c) time value of money Long term loan bears
(d) none of these
Answer:
(b) present value of money

Question 25.
Long term loan bears
(a) zero rate of interest
(b) flexible rate of interest
(c) fixed rate of interest
(d) None of the above
Answer:
(c) fixed rate of interest

Question 26.
Networking capital
(a) C.A + C.L.
(b) C.A. – C.L.
(c) C.L – C.A.
(d) all of the above
Answer:
(b) C.A. – C.L.

Question 27.
Risk capital foundation established by
(a) UTI
(b) IDBI
(c) IFCI
(d) ICICI
Answer:
(c) IFCI

Question 28.
Labour intensive technique is useful to
(a) back word economics
(b) developing economics
(c) developed countries
(d) none of the above
Answer:
(b) developing economics

Question 29.
Venture Capital available for
(a) technical units
(b) high risks units
(c) institution units
(d) all of the above
Answer:
(d) all of the above

Question 30.
Regular working capital is the part of
(a) Net working capital
(b) Permanent working capital
(c) Variable working capital
(d) None of the above
Answer:
(c) Variable working capital

Question 31.
The term fund means fund flow statement
(a) Cash only
(b) Current assets
(c) Current liabilities
(d) Excess of current assets over current liabilities
Answer:
(d) Excess of current assets over current liabilities

Question 32.
Purchase of goodwill by issuing debenture is
(a) Application of fund
(b) Sources of fund
(c) No flow of fund
(d) None of these
Answer:
(c) No flow of fund

Question 33.
Increase in share premium is
(a) Sources of fund
(b) Application of fund
(c) No flow of fund
(d) All of these
Answer:
(a) Sources of fund

Question 34.
Closing stock is
(a) No flow of fund
(b) Sources of fund
(c) Application of fund
(d) None of these
Answer:
(b) Sources of fund

Question 35.
Increase in fixed assets due to cash purchase
(a) Sources of fund
(b) Application of fund
(c) Inflow of fund
(d) Not come of fund
Answer:
(b) Application of fund

Question 36.
Current liabilities is
(a) Prepaid expenses
(b) Creditors
(c) Cash Balance
(d) Investment
Answer:
(b) Creditors

Question 37.
Non-current liabilities is
(a) Share
(b) Capital
(c) Debenture
(d) All of these
Answer:
(d) All of these

Question 38.
Depreciation is in operation fund
(a) added
(b) lessen
(c) not included
(d) (a) & (b)
Answer:
(a) added

Question 39.
How does purchase of plant affect working capital
(a) Increase
(b) Decrease
(c) Change
(d) Fund flow
Answer:
(b) Decrease

Question 40.
Which knowledge is necessary before preparation of fund flow statement?
(a) Of balance sheet
(b) Meaning of fund
(c) Meaning of flow
(d) All of these
Answer:
(d) All of these

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 2 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 2

Question 1.
Break-even point indicates
(a) Zero profit, zero loss
(b) Cost revenue relation
(c) Minimum sale price
(d) All of these
Answer:
(a) Zero profit, zero loss

Question 2.
Modernisation improves
(a) Products
(b) Processes
(c) Capacity
(d) Labours
Answer:
(a) Products

Question 3.
Aspects of project evaluation is
(a) Technical evaluation
(b) Financial evaluation
(c) Managerial evolution
(d) All of these
Answer:
(d) All of these

Question 4.
Printing expenses are
(a) fixed
(b) variable
(c) semi-variable
(d) None of these
Answer:
(c) semi-variable

Question 5.
The type of shares are
(a) Equity share
(b) Preference share
(c) Both
(d) None of these
Answer:
(c) Both

Question 6.
Expenses on Marketing is
(a) Wastage
(b) Unnecessary expenses
(c) Burden on customers
(d) Investment
Answer:
(d) Investment

Question 7.
Debit the receiver and credit the giver rule apply
(a) In Personal A/c
(b) In Real A/c
(c) In Nominal A/c
(d) In Trading A/c
Answer:
(a) In Personal A/c

Question 8.
Project report is a summary of
(a) Facts
(b) Informations
(c) Analysis
(d) All of these
Answer:
(d) All of these

Question 9.
An entrepreneur must be conscious to protect
(a) Environment
(b) Shareholders
(c) Employees
(d) Customers
Answer:
(a) Environment

Question 10.
In view of growing global competition, an entrepreneur must ensure adequate of goods and services.
(a) quality
(b) price
(c) standard
(d) publicity
Answer:
(c) standard

Question 11.
The necessary quality of leadership is
(a) greatness
(b) wealth
(c) behaviour
(d) popularity
Answer:
(c) behaviour

Question 12.
One of the major causes of business failure is
(a) unskilled labour
(b) inadequate capital
(c) small market
(d) poor management
Answer:
(d) poor management

Question 13.
The major achievement of an entrepreneur is
(a) profit
(b) growth
(c) quality
(d) market
Answer:
(b) growth

Question 14.
The most important factor of business development is
(a) relations
(b) sales
(c) purchases
(d) power
Answer:
(a) relations

Question 15.
Which of the following is a element of sensing the opportunities?
(a) Ability to perceive
(b) Insight into the change
(c) Innovative quality
(d) All of these
Answer:
(d) All of these

Question 16.
Which of the following is a kind of opportunities?
(a) First opportunity
(b) Created opportunity
(c) Last opportunity
(d) None of these
Answer:
(b) Created opportunity

Question 17.
The factor identifies business opportunities
(a) Form of external assistant
(b) Possibility of export
(c) Volume of internal demand
(d) All of these
Answer:
(d) All of these

Question 18.
Learning process involves
(a) Drive
(b) Cue
(c) Response
(d) All of these
Answer:
(d) All of these

Question 19.
Subsidy is
(a) Concession
(b) Discount
(c) Repayment
(d) None off these
Answer:
(c) Repayment

Question 20.
Incentives are not concerned with
(a) Rebate
(b) Exemption from Tax
(c) Lump-sum payment
(d) Provision of seed capital
Answer:
(c) Lump-sum payment

Question 21.
Social behaviour is not conceded with
(a) Production of public goods
(b) Avoidance of unethical behaviour
(c) Fulfilment of social obligation
(d) Profit earning process
Answer:
(d) Profit earning process

Question 22.
Market demand is also known as
(a) supply
(b) real demand
(c) demand forecasting
(d) None of these
Answer:
(c) demand forecasting

Question 23.
Which of the following factors affect market assessment?
(a) Micro environment
(b) Production cost
(c) Demand
(d) None of these
Answer:
(a) Micro environment

Question 24.
Short forecast involves period
(a) 24 months
(b) 15 months
(c) 12 months
(d) 6 months
Answer:
(c) 12 months

Question 25.
Nature of marketing includes
(a) Product planning
(b) Classification of product
(c) Customer
(d) None of these
Answer:
(a) Product planning

Question 26.
Demand forecasting includes
(a) Consumer forecasting
(b) Short term forecasting
(c) Long term forecasting
(d) All of these
Answer:
(b) Short term forecasting

Question 27.
Which of the following factors is to be considered while selecting a product/services?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) All of the above
Answer:
(d) All of the above

Question 28.
Which of the following factors is not to be considered while selecting a product/services?
(a) Market asscssment
(b) Practicability
(c) Competition
(d) Product planning
Answer:
(d) Product planning

Question 29.
Feasibility study is a ractor
(a) Study
(b) Questionnaires
(c) Production
(d) Identification
Answer:
(b) Questionnaires

Question 30.
Selection of an enterprise depends upon
(a) Sole trading
(b) Partnership firm
(c) Self ability
(d) None of these
Answer:
(c) Self ability

Question 31.
The point which is considered while selecting an enterprise
(a) Product
(b) Marketing
(c) Availability of capital
(d) All of these
Answer:
(c) Availability of capital

Question 32.
Product selection is affected by
(a) Technical knowledge
(b) Availability of Market
(c) Position of Competition
(d) All of the above
Answer:
(b) Availability of Market

Question 33.
Essential elements while selectioning an enterprise
(a) Promotion
(b) Area of operation
(c) Secrecy
(d) All of these
Answer:
(b) Area of operation

Question 34.
Which form of organisation is preferred by an entrepreneur if production is to be undertaken on small scale basis?
(a) Sole trade
(b) Partnership
(c) Company
(d) None of these
Answer:
(a) Sole trade

Question 35.
Create perfection in the market to increase sales and profit
(a) Promotion
(b) Innovation
(c) Marketing
(d) Location
Answer:
(b) Innovation

Question 36.
A successful entrepreneur must possess the following quality
(a) Leadership
(b) Control
(c) Innovation
(d) All of the above
Answer:
(d) All of the above

Question 37.
Determines the form of organisation
(a) Size
(b) Innovation
(c) Study
(d) Location
Answer:
(a) Size

Question 38.
Implementation of Industrial licensing Act
(a) 1931
(b) 1941
(c) 1951
(d) 1961
Answer:
(c) 1951

Question 39.
Planning is done
(a) Short term
(b) Middle term
(c) Long term
(d) All terms
Answer:
(d) All terms

Question 40.
Planning is a trap to capture the future
(a) Newman
(b) Hurley
(c) Alen
(d) Terry
Answer:
(c) Alen

BSEB Bihar Board 12th Entrepreneurship Important Questions Objective Type Part 1 are the best resource for students which helps in revision.

Bihar Board 12th Entrepreneurship Objective Important Questions Part 1

Question 1.
It is necessary to give due consideration on internal resources before initiating a particular decision
(a) Yes, it is necessary
(b) No, not necessary
(c) Necessary for External Resources
(d) None of the above
Answer:
(a) Yes, it is necessary

Question 2.
Which of the following is a factor affecting identification of business opportunities?
(a) Volume of Internal demand
(b) Created opportunity
(c) Existing opportunity in the Environment
(d) None of the above
Answer:
(a) Volume of Internal demand

Question 3.
Learning processes involves
(a) Drive
(b) cue
(c) Response
(d) Drive, Cue and Response
Answer:
(d) Drive, Cue and Response

Question 4.
Subsidy is
(a) Concession
(b) Discount
(c) Repayment
(d) None of these
Answer:
(d) None of these

Question 5.
Business regulatory frame work is concerned with what?
(a) Direction of business
(b) Volume of business
(c) Regulation
(d) None of the above
Answer:
(c) Regulation

Question 6.
What is the Economic policies determined?
(a) Direction of Business
(b) Volume of Business
(c) Direction & Volume of Business
(d) None of the above
Answer:
(c) Direction & Volume of Business

Question 7.
Short-term forecast involve a period of how many months?
(a) Twelve months
(b) Twenty four months
(c) Eighteen months
(d) Thirty six months
Answer:
(a) Twelve months

Question 8.
Demand forecasting is termed as what out of the following?
(a) Marketing
(b) Market demand
(c) Demand and supply
(d) All of the above
Answer:
(d) All of the above

Question 9.
Which of the following factors is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) All of the above
Answer:
(d) All of the above

Question 10.
Out of the following what is essential to study in feasibility study?
(a) Cost
(b) Price
(c) Operation
(d) All of the above
Answer:
(d) All of the above

Question 11.
Market demand is known as
(a) Demand forecasting
(b) Real demand
(c) Supply
(d) None of those
Answer:
(a) Demand forecasting

Question 12.
What creates imperfection in the market which ultimately increases the volumes of sales and profit
(a) Innovation
(b) Promotion
(c) Marketing
(d) None of the above
Answer:
(a) Innovation

Question 13.
How will you formulate general plan of Business?
(a) By production planning
(b) By cost planning
(c) By financial planning
(d) By doing all the above
Answer:
(d) By doing all the above

Question 14.
Which of the following is a problem connected with Business?
(a) Profit
(b) Money
(c) Sales
(d) Risk Management
Answer:
(d) Risk Management

Question 15.
On which out of the following the formulating of the general plan of business depends?
(a) Project report
(b) Plant & production planning
(c) Marketing planning
(d) Financial planning
Answer:
(b) Plant & production planning

Question 16.
A successful entrepreneur must possess the quality of
(a) Leadership
(b) Control
(c) Innovation
(d) All of the above
Answer:
(d) All of the above

Question 17.
An entrepreneur
(a) serves as an economic man
(b) applies problem solving for projects
(c) undertakes to act as an intermedia between labour and capital
(d) All of the above
Answer:
(d) All of the above

Question 18.
Business is a game of
(a) Competition
(b) Challenge
(c) Skill
(d) None of these
Answer:
(c) Skill

Question 19.
The major achievement of an entrepreneur is
(a) profit
(b) growth
(c) quality
(d) market
Answer:
(a) profit

Question 20.
An entrepreneur is both a worker and
(a) Manager
(b) Owner
(c) Investor
(d) All of the above
Answer:
(b) Owner

Question 21.
Entrepreneurship involves
(a) Creations of a business unit
(b) Use of skill to earn profits
(c) decision to accept risks
(d) All of the above
Answer:
(d) All of the above

Question 22.
The success of an entrepreneur lies mainly in his ability to
(a) collect resources
(b) appoint staff
(c) sell products
(d) None of these
Answer:
(c) sell products

Question 23.
Market demand is also known as
(a) supply
(b) real demand
(c) demand forecasting
(d) None of the above
Answer:
(c) demand forecasting

Question 24.
Which factors affects market assessment?
(a) demand
(b) supply
(c) demand supply
(d) micro environment
Answer:
(d) micro environment

Question 25.
Which of the following factor is to be considered while selecting a product or service?
(a) Competition
(b) Cost of production
(c) Profit possibility
(d) all of the above
Answer:
(d) all of the above

Question 26.
Which of the following is to be consider at the time of selection of enterprise?
(a) Situation
(b) Capability
(c) Nature of Product
(d) all of the above
Answer:
(d) all of the above

Question 27.
Planning is
(a) long term
(b) short term
(c) middle term
(d) all of the above
Answer:
(d) all of the above

Question 28.
A good plan is
(a) Rigid
(b) Flexible
(c) Expensive
(d) None of these
Answer:
(b) Flexible

Question 29.
Project identification deals with
(a) logical opportunity
(b) Viable products
(c) effective demand
(d) all of the these
Answer:
(b) Viable products

Question 30.
DPR is
(a) action plan
(b) implement plan
(c) working plan
(d) none of these
Answer:
(b) implement plan

Question 31.
Projects is prepared
(a) by promoters
(b) by entrepreneur
(c) by manages
(d) all of these
Answer:
(d) all of these

Question 32.
Money spent on the preparation of project is
(a) wastage
(b) expenditure
(c) investment
(d) none of these
Answer:
(c) investment

Question 33.
Project report is a summary of
(a) information
(b) facts
(c) analysis
(d) all of these
Answer:
(d) all of these

Question 34.
“A plan is a trap to capture the future.” This statement is of:
(a) Newman
(b) Hurley
(c) Allen
(d) Terry
Answer:
(c) Allen

Question 35.
Of all managerial activities planning is the
(a) Beginning
(b) End
(c) Both (a) and (b)
(d) None of these
Answer:
(c) Both (a) and (b)

Question 36.
Planning is
(a) Past
(b) Future
(c) Present
(d) All time
Answer:
(d) All time

Question 37.
Planning is the function of management
(a) Primary
(b) Secondary
(c) Tertiary
(d) All of these
Answer:
(b) Secondary

Question 38.
Planning is
(a) Goal-oriented
(b) Objective-oriented
(c) Mental process
(d) All the above
Answer:
(d) All the above

Question 39.
A good plan is
(a) Expensive
(b) Flexible
(c) Rigid
(d) Time consuming
Answer:
(b) Flexible

Question 40.
The best method of Business growth is
(a) Customer satisfaction
(b) Maximum price
(c) Both
(d) None of these
Answer:
(a) Customer satisfaction

BSEB Bihar Board 12th Business Studies Important Questions Objective Type Part 7 are the best resource for students which helps in revision.

Bihar Board Class 12th Business Studies Objective Important Questions Part 7

Question 1.
In the beginning scientific management is …………. by works:
(a) favoured
(b) opposed
(c) both
(d) helpful
Answer:
(c) both

Question 2.
Mental work is …………:
(a) Production
(b) Management
(c) Marketing
(d) None
Answer:
(b) Management

Question 3.
Which of the following does not characterise the business environment:
(a) uncertainty
(b) employees
(c) relativity
(d) complexity
Answer:
(b) employees

Question 4.
Globalisation signifies ………..:
(a) Integration among various economic of the world
(b) Investment in public sector
(c) Investment in private sector
(d) All of these
Answer:
(a) Integration among various economic of the world

Question 5.
Which of the following is an example of social environment?
(a) composition of families
(b) consumer protection act
(c) business law
(d) privatisation
Answer:
(a) composition of families

Question 6.
Economic environment of business is influenced by ………….:
(a) economic system
(b) liberalisation
(c) globalisation
(d) privatisation
Answer:
(a) economic system

Question 7.
The main objective of budgeting is
(a) Planning
(b) Co-ordinating
(c) Control
(d) All of these
Answer:
(d) All of these

Question 8.
Which of the following is not a limitation of planning?
(a) Wastage of time
(b) Basis of control
(c) Rigidity
(d) Huge cost
Answer:
(b) Basis of control

Question 9.
Organising process involves
(a) Grouping of identical work
(b) Division of a work
(c) Assigning work to appropriate persons
(d) All of these
Answer:
(d) All of these

Question 10.
Delegation can be done of
(a) Authority
(b) Responsibility
(c) Accountability
(d) None of these
Answer:
(a) Authority

Question 11.
Comprehensive plan for accomplishing an organisation’s objectives is known as
(a) Policy
(b) Programme
(c) Objective
(d) Strategy
Answer:
(d) Strategy

Question 12.
Centralisation refers to …………
(a) Rotation of authority
(b) Dispersal of authority
(c) Creating profit centre
(d) Opening new centre
Answer:
(a) Rotation of authority

Question 13.
Development of employees involves
(a) Promotion
(b) Transfer
(c) Training
(d) All of these
Answer:
(d) All of these

Question 14.
Human resource management includes
(a) Recruitment
(b) Selection
(c) Training
(d) All of these
Answer:
(d) All of these

Question 15.
“Needs hierarchy theory” of motivation is given by
(a) Herzberg
(b) Maslow
(c) Eltor
(d) None of them
Answer:
(b) Maslow

Question 16.
Planning is:
(a) Past
(b) Future
(c) Present
(d) All time
Answer:
(d) All time

Question 17.
Planning involves ………….:
(a) What to do
(b) When to do
(c) How to do
(d) All of these
Answer:
(d) All of these

Question 18.
Which of the following is not a limitation of planning?
(a) Wastage of time
(b) Basis of control
(c) Rigidity
(d) Huge cost
Answer:
(b) Basis of control

Question 19.
Of all managerial activities planning is the:
(a) Beginning
(b) End
(c) Both
(d) None of these
Answer:
(c) Both

Question 20.
Planning is:
(a) Goal-oriented
(b) Objective oriented
(c) Mental process
(d) All of above
Answer:
(d) All of above

Question 21.
Management is
(a) Art
(b) Science
(c) Both
(d) None of these
Answer:
(c) Both

Question 22.
Management has social responsibility towards whom?
(a) Society as a whole
(b) The Government
(c) Organisation
(d) None of these
Answer:
(a) Society as a whole

Question 23.
Which of the following is the function of management?
(a) Planning
(b) Organising
(c) Directing
(d) All of these
Answer:
(d) All of these

Question 24.
The father of scientific management was
(a) Gilbreth
(b) Taylor
(c) Robertson
(d) None of these
Answer:
(b) Taylor

Question 25.
Fourteen principles of management was given by
(a) Henry Fayol
(b) F. w. Taylor
(c) Peter Drucker
(d) A. H. Maslow
Answer:
(a) Henry Fayol

Question 26.
Henry Fayol’s principles of management are
(a) 10
(b) 3
(c) 14
(d) 15
Answer:
(c) 14

Question 27.
Principles of management are
(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural
Answer:
(c) Absolute

Question 28.
Which of the following Is an example of social environment?
(a) Money supply
(b) Consumer Protection Act
(c) The Indian Constitution
(d) Composition of family
Answer:
(d) Composition of family

Question 29.
Business environment does not help
(a) Threats
(b) Opportunities
(c) Resources
(d) Certainty
Answer:
(d) Certainty

Question 30.
Planning is
(a) Past
(b) Future
(c) Present
(d) All time
Answer:
(d) All time

Question 31.
The father of scientific management was:
(a) Gilbreth
(b) Taylor
(c) Robertson
(d) Watson
Answer:
(b) Taylor

Question 32.
The propounder of administrative management were:
(a) Fayol
(b) Taylor
(c) Terry
(d) Watson
Answer:
(a) Fayol

Question 33.
A good plan is:
(a) Expensive
(b) Time consuming
(c) Flexible
(d) Rigid
Answer:
(c) Flexible

Question 34.
Responsibility is of:
(a) Subordinate
(b) Officer
(c) Both (a) and (b)
(d) None of these
Answer:
(b) Officer

Question 35.
Authority can not be delegated of:
(a) Routine work
(b) Secret work
(c) Ordinary work
(d) Easy work
Answer:
(b) Secret work

Question 36.
“A plan is a trap to capture the future.” This statement is of:
(a) Newnan
(b) Hurley
(c) Allen
(d) Terry
Answer:
(c) Allen

Question 37.
Organising process involves:
(a) Grouping of identical work
(b) Division of a work
(c) Assigning work to appropriate persons
(d) None
Answer:
(d) None

Question 38.
Authority can not be delegated of ………..:
(a) Routine work
(b) Secret work
(C) Ordinary work
(d) Easy work
Answer:
(b) Secret work

Question 39.
Centralisation refers to:
(a) Retention or authority
(b) Dispersal or authoriry
(c) Creating profit centre
(d) Opening new centre
Answer:
(a) Retention or authority

Question 40.
Comprehensive plan for accomplishing an organisation’s objectives is known as:
(a) Policy
(b) Programme
(c) Objective
(d) Strategy
Answer:
(a) Policy

BSEB Bihar Board 12th Business Studies Important Questions Objective Type Part 6 are the best resource for students which helps in revision.

Bihar Board Class 12th Business Studies Objective Important Questions Part 6

Question 1.
For stock exchange the services of SEBI is:
(a) Voluntary
(b) Necessary
(c) Unnecessary
(d) Compulsory
Answer:
(d) Compulsory

Question 2.
Marketing includes:
(a) Purchase
(b) Sales
(c) Warehousing
(d) All of the above
Answer:
(d) All of the above

Question 3.
Consumer rights under consumer protection act are:
(a) 6
(b) 7
(c) 8
(d) 9
Answer:
(a) 6

Question 4.
Essentials of a good brand are:
(a) Short name
(b) Easy to remember
(c) Attractive design
(d) All of the above
Answer:
(d) All of the above

Question 5.
Labelling is compulsory in packed consumer products:
(a) All
(b) few
(c) None
(d) None of these
Answer:
(a) All

Question 6.
Which is not an element of promotion mix:
(a) Advertisement
(b) Personal selling
(c) Sales promotion
(d) Product development
Answer:
(d) Product development

Question 7.
Advertisement is deemed as:
(a) Wastage
(b) Investment
(c) Luxury
(d) None of these
Answer:
(b) Investment

Question 8.
Objectives of sales promotion are:
(a) To introduce with new product only
(b) To attractive new customers only
(c) To counter competitor only
(d) All the above
Answer:
(d) All the above

Question 9.
Which of the following is not sales promotion tool?
(a) Samples
(b) Prize to pack
(c) Coupons
(d) Warranty
Answer:
(d) Warranty

Question 10.
Media of advertising is:
(a) Samples
(b) Premium
(c) Calendar
(d) Demonstration
Answer:
(c) Calendar

Question 11.
Costliest means of advertising is:
(a) Advertising
(b) Personal selling
(c) Necessary
(d) Public relation
Answer:
(b) Personal selling

Question 12.
Consumer Protection Act in India was passed in:
(a) 1886
(b) 1986
(c) 1996
(d) None of these
Answer:
(a) 1886

Question 13.
Consumer Protection Act covers:
(a) Dispute relating service
(b) Dispute relating do defective products services
(c) Claims relating to industrial accidents
(d) All the above
Answer:
(b) Dispute relating do defective products services

Question 14.
Consumer court under Consumer Protection Acts means:
(a) District Forum
(b) State Commission
(c) National Commission
(d) All the above
Answer:
(d) All the above

Question 15.
The machinery for settlement of consumer disputes is:
(a) One-tier
(b) Three-tier
(c) Two-tier
(d) None of these
Answer:
(b) Three-tier

Question 16.
The disputes comes under consumer protection act are:
(a) Dispute as to sale of shares by a company
(b) Dispute of penal nature
(c) Disputes as to sales of defective goods by the seller
(d) Service disputes
Answer:
(c) Disputes as to sales of defective goods by the seller

Question 17.
District Forum can settle disputes:
(a) Upto 5 Lakh
(b) Upto 10 Lakh
(c) Upto 15 Lakh
(d) Upto 20 Lakh
Answer:
(d) Upto 20 Lakh

Question 18.
State commission can settle disputes:
(a) Upto 5 Lakh
(b) Upto 10 Lakh
(c) Upto 20 Lakh
(d) Above 20 Lakh
Answer:
(d) Above 20 Lakh

Question 19.
Under the Consumer Protection Act, complaintee means:
(a) Consumer
(b) State Government
(c) Central Government
(d) All the above
Answer:
(d) All the above

Question 20.
Entrepreneurship fails to lead:
(a) Partnership firm
(b) New corporate division
(c) New subsidiary venture
(d) None of the above
Answer:
(a) Partnership firm

Question 21.
In India entrepreneurial development programme is:
(a) Necessary
(b) Unnecessary
(c) Wastage of time
(d) Wastage of money
Answer:
(a) Necessary

Question 22.
In India, entrepreneurial development programme has been:
(a) Successful
(b) Unnecessary
(c) Need to improvement
(d) None of the above
Answer:
(c) Need to improvement

Question 23.
An entrepreneur is
(a) Born
(b) Made
(c) Born and made both
(d) All of these
Answer:
(c) Born and made both

Question 24.
Which of the following sentence is not a characteristic of entrepreneurship:
(a) Risk taking
(b) Innovation
(c) Creative activity
(d) Managerial training
Answer:
(d) Managerial training

Question 25.
Which of the following sentence is inconsistent in the context of entrepreneur:
(a) He is owner of the business
(b) He is risk taker
(c) He operates production activities
(d) He searches out business opportunities
Answer:
(c) He operates production activities

Question 26.
An entrepreneur is said to be:
(a) Promotor of economic development
(b) Motivator of economic development
(c) Both the above
(d) None of the (a) and (b)
Answer:
(c) Both the above

Question 27.
Which of the following attitudes is not generally associated with successful entrepreneurship:
(a) Competition and co-operation
(b) Desire to influence others
(c) Innovation and product improvement
(d) Status quo in business
Answer:
(b) Desire to influence others

Question 28.
The nature of management is:
(a) as an inborn ability
(b) as an acquired ability
(c) as inborn ability and as an acquired ability both
(d) None of these
Answer:
(c) as inborn ability and as an acquired ability both

Question 29.
According to George R. Terry the functions of management are:
(a) 2
(b) 4
(c) 6
(d) 7
Answer:
(b) 4

Question 30.
Co-ordination is:
(a) Voluntary
(b) Necessary
(c) Unnecessary
(d) Wastage of time
Answer:
(b) necessary

Question 31.
Management in India is:
(a) Necessary
(b) Unnecessary
(c) Luxury
(d) None
Answer:
(a) Necessary

Question 32.
According to ………….., “Management is the development of people and not the direction of things.”:
(a) Henry Fayol
(b) Lawrence Appley
(c) F. W. Taylor
(d) R. C. Davis
Answer:
(b) Lawrence Appley

Question 33.
The main cause of slow progress of India is the lack of:
(a) efficient management
(b) man power
(c) resources
(d) all of these
Answer:
(d) all of these

Question 34.
Primary element of success of management is:
(a) Satisfied employee
(b) Large capital
(c) Big market
(d) Maximum production
Answer:
(a) Satisfied employee

Question 35.
Production in scientific management is:
(a) Maximum
(b) Minimum
(c) Normal
(d) Average
Answer:
(a) Maximum

Question 36.
Who was the father of scientific management:
(a) H.S. Person
(b) Diemer
(c) F. W. Taylor
(d) Charles Babbage
Answer:
(c) F. W. Taylor

Question 37.
Management should find one best way to perform a task. Which technique of scientific management is defined in this sentence:
(a) Universal
(b) Flexible
(c) Absolute
(d) Behaviour
Answer:
(d) Behaviour

Question 38.
The essence of scientific management is …………:
(a) mental revolution
(b) remuneration
(c) not mental revolution
(d) all of these
Answer:
(a) mental revolution

Question 39.
Scientific management ………….. workers remuneration:
(a) increases
(b) decrease
(c) both
(d) neither increase nor decrease
Answer:
(a) increases

Question 40.
The scientific management is ………… owners:
(a) in favour
(b) against
(c) both
(d) helpful
Answer:
(a) in favour

BSEB Bihar Board 12th Business Studies Important Questions Objective Type Part 5 are the best resource for students which helps in revision.

Bihar Board Class 12th Business Studies Objective Important Questions Part 5

Question 1.
The steps of organisation process are:
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(d) 8

Question 2.
There is no favouritism in organisation:
(a) Formal organisation
(b) Informal organisation
(c) Divisional organisation
(d) Functional organisation
Answer:
(a) Formal organisation

Question 3.
Depends on the sweet will of employees:
(a) Formal organisation
(b) Informal organisation
(c) Functional organisation
(d) Divisional organisation
Answer:
(b) Informal organisation

Question 4.
In case of informal organisation authority are:
(a) Decentralised
(b) Centralised
(c) Equally distributed
(d) None of these
Answer:
(d) None of these

Question 5.
Organisation is automatically formed:
(a) Functional
(b) Informal
(c) Formal
(d) Divisional
Answer:
(b) Informal

Question 6.
For delegation to be effective, it is essential that responsibility is accompanied with necessary:
(a) Authority
(b) Man power
(c) Incentives
(d) Promotions
Answer:
(a) Authority

Question 7.
Responsibility is of:
(a) Subordinate
(b) Officer
(c) Both a and b
(d) None of these
Answer:
(b) Officer

Question 8.
Management itself expands:
(a) Through delegation
(b) Through centralisation
(c) Through decentralisation
(d) Through all
Answer:
(a) Through delegation

Question 9.
In a large size enterprise delegation is:
(a) Compulsory
(b) Voluntary
(c) Necessary
(d) None of these
Answer:
(a) Compulsory

Question 10.
For effective delegation is necessary:
(a) Facility to contact
(b) Atmosphere of Co-operation and Co-ordination
(c) Clear explanation of authorities
(d) All of these
Answer:
(d) All of these

Question 11.
Development of employees involves:
(a) Continuous
(b) Promotion
(c) Training
(d) All
Answer:
(d) All

Question 12.
Henry fayol was born in:
(a) Japan
(b) France
(c) Germany
(d) America
Answer:
(b) France

Question 13.
New economic policy was declared in:
(a) July 1990
(b) July 1991
(c) July 1992
(d) July 2001
Answer:
(b) July 1991

Question 14.
Main components of new Economic Policy are:
(a) Liberalisation
(b) Globalisation
(c) Privatisation
(d) All of these
Answer:
(d) All of these

Question 15.
Which of the following is an example of social environment?
(a) Money supply
(b) Consumer protection
(c) The Indian constitution
(d) Composition of family
Answer:
(d) Composition of family

Question 16.
Which of the following does not characterise the business environment:
(a) Uncertainty
(b) Employees
(c) Relativity
(d) Complexity
Answer:
(b) Employees

Question 17.
Methods of training are:
(a) Conference
(b) Lectures
(c) Apprenticeship
(d) All above
Answer:
(d) All above

Question 18.
Employees training is:
(a) Unnecessary
(b) Necessary
(c) Compulsory
(d) Luxury
Answer:
(b) Necessary

Question 19.
Motley spent on staffing is:
(a) Necessary
(b) Wastage
(c) Investment
(d) None of these
Answer:
(d) None of these

Question 20.
Staffing is the responsibilities of:
(a) Top Management
(b) Middle Management
(c) Lower Management
(d) All
Answer:
(d) All

Question 21.
Human resource management includes:
(a) Recruitment
(b) Selection
(c) Training
(d) All of these
Answer:
(d) All of these

Question 22.
Main elements of direction are:
(a) 2
(b) 3
(c) 4
(d) 6
Answer:
(c) 4

Question 23.
Direction is related to employees:
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) All Level
Answer:
(d) All Level

Question 24.
Direction is:
(a) Compulsory
(b) Necessary.
(c) Unnecessary
(d) Wastage of Time
Answer:
(a) Compulsory

Question 25.
Supervision is:
(a) Necessary
(b) Unnecessary
(c) Wastage of Time
(d) None of these
Answer:
(a) Necessary

Question 26.
Supervision is an element of:
(a) Leadership
(b) Planning
(c) Direction
(d) None of these
Answer:
(c) Direction

Question 27.
The types of communication network are:
(a) 2
(b) 4
(c) 6
(d) 8
Answer:
(b) 4

Question 28.
Barrier in effective communication is:
(a) Language
(b) Distance
(c) Individual Difference
(d) All the above
Answer:
(d) All the above

Question 29.
Types of communication are
(a) Written
(b) Verbal
(c) Formal
(d) All the above
Answer:
(d) All the above

Question 30.
In effective communication language should not be used:
(a) Express
(b) Impressive
(c) Ambiguous
(d) Courtesy
Answer:
(d) Courtesy

Question 31.
Controlling is necessary:
(a) For small Enterprise
(b) For medium sized Enterprise
(c) For large sized enterprise
(d) For all the above
Answer:
(d) For all the above

Question 32.
Controlling is the aspect of management:
(a) Theoretical
(b) Practical
(c) Mental
(d) Physical
Answer:
(b) Practical

Question 33.
In a business enterprise controlling is needed:
(a) At the time of Establishment of Business
(b) At the time of Direction of Business
(c) At the end of the year
(d) Continuously
Answer:
(d) Continuously

Question 34.
Effective controlling is:
(a) Static
(b) Pre-determined
(c) Dynamic
(d) All the above
Answer:
(d) All the above

Question 35.
Control is the function of the management:
(a) First
(b) Last
(c) Third
(d) Second
Answer:
(b) Last

Question 36.
Control is managerial function:
(a) Compulsory
(b) Necessary
(c) Optional
(d) Nope of these
Answer:
(a) Compulsory

Question 37.
Money market deals in:
(a) Short-term funds
(b) Medium-term funds
(c) Long-term funds
(d) None of these
Answer:
(a) Short-term funds

Question 38.
Legally SEBI was established in:
(a) 1988
(b) 1990
(c) 1992
(d) 1994
Answer:
(c) 1992

Question 39.
In new issued shares deals:
(a) Secondary market
(b) Primary market
(c) Secondary and Primary market both
(d) None of these
Answer:
(b) Primary market

Question 40.
Regional Office of SEBI is situated in:
(a) Delhi
(b) Kolkata
(c) Chennai
(d) All these three
Answer:
(d) All these three

Critical Appreciation of The Poem My Grandmother’s House

Question 1.
Write a critical appreciation of My Grandmother’s House.
Answer:
Joint family system in which old persons were heads has been a reality in India till recent years, especially during the pre-independence period. Many people still recall with nostalgia the love and security they enjoyed in the atmosphere of a joint family household.

In the present poem, Kamala Das, makes the speaker recall her life in the house of her grand mother. When she says the grandmother’s house she means the house in which the old grandmother was the head.

She begins by telling us first that she received love there. Of all the things that she may have got there she lists love as the most precious gift. The implication is that love is getting scarce and scarce. It is openly expressed in the last lines of the poem where the poet speaks of her present condition in which she is begging for love at the doors of the strangers.

Abruptly then the speaker announces the death of the grandmother and the deadly transformation of the house that followed it. The house became silent and turned into an abode of horror where snake started crawling inside it. This leads the speaker to think of better days when she moved about freely and wondered what could be the subject of numerous books on the shelves.

The fascination of the house is still there in the speaker who now wishes to go back there. She feels that even the frozen air of the house will give her some comfort. The physical details of the house are not given. The house is chiefly remembered for the love that the old lady gave to the speaker during childhood. It is this lost love that is a memorable treasure to her. The poem is a strong statement on the values of the joint family in India.

Bihar Board Class 12th English Important Questions