Business Studies

Business studies is a comprehensive study of the different elements included in a business. It provides a good insight into the different fundamentals involved in running a business. It defines the policies, norms, rules, and many more related to the business. Individuals studying business studies understand how to attract customers to the firm or retain the business for the long term. It also provides the vision to the entrepreneur on how to analyze the growth of the organization. People studying business studies understand the fundamentals behind the success and growth of any firm. They also understand the main reason, like customer attraction, behind the success of any business. 

Multiple Choice Questions

1. Every successful organization gets success by following a systematic procedure. This procedure is called:
2. 1. Coordination
   2. Controlling
   3. Management
   4. Planning 

Answer: (C) Management

Explanation: 

Management is the systematic procedure that defines all the steps involved in the growth and expansion of the organization. 

2. Management is a systematic procedure. It is important for which types of organizations. 
3. 1. Service organizations
   2. Social organizations
   3. Non-profit organisations
   4. All of the above-given options 

Answer: (D) All of the above-given options 

Explanation:

Every business involves a systematic procedure for defining its growth. So, it is important for all types of businesses. 

3. The employee or executive department of any business performs the various task to achieve a similar goal which is:
4. 1. Common objectives
   2. Different objectives
   3. None of the above
   4. Both (a) option and (b) option 

Answer: (A) Common objectives

Explanation:

All the businesses have a common objective: grasping the whole market and customer’s attention. 

4. Successful and systematic in any business, ensures its
5. 1.  Achievement of goals with less investment 
   2. Achievement of goals in a short period 
   3. None of the above
   4. Both (a) option and (b) option 

Answer: (D) Both (a) option and (b) option 

Explanation:

Mainly, the most successful business is the one that completes all its goals and achievements with less investment. Although, the completion of a goal in a short period by any business is considered its success. Along with this, various domains like its policies, fundamentals, employee attitude, and several customers also define the success of any business. 

5. In business studies, a word is used, effectiveness. What is the meaning of effectiveness in terms of business studies? 
6. 1. Performing the correct task at the correct timings. 
   2. Completion of all the basic activities of any organization on time. 
   3. Achievement of goals which the business defines in the beginning phase. 
   4. All of the above-given options 

Answer: (D) All of the above-given options 

Explanation:

The effectiveness of any business describes how smoothly any business is running. So, it includes performing the correct task at the correct timings, completing all the basic activities of any organization on time, and achieving goals that the business defines in the beginning phase. 

6. Implementation of the management is considered poor when the:
7. 1. It is effective but does not provide any output 
   2. It is providing output but not as much effective as needed 
   3. Neither effective nor providing adequate output. 
   4. All of the above-given options 

Answer: (D) All of the above-given options 

Explanation:

Effectiveness and getting adequate outputs are the vital goals behind implementing the management. If any one of them does not happen properly, the management is considered poor. 

7. In business studies, the term globalization refers to a:
8. 1. Declination of involvement of customers and other public. 
   2. Collaboration of economics of various countries 
   3. The decline in the number of interest rates 
   4. Having control over the inflation in the economy of all countries. 

Answer: (B) Collaboration of economics of various countries 

Explanation: 

Globalization term in business studies covers the various dimensions of the whole world, or say globally. So, the collaboration of various countries’ economies is the main aim of globalization, where all the countries help each other in their growth and development. 

8. Write the nature of the business, which describes that the business environment is changing. Although, the change in a positive or negative direction doesn’t matter. 
9. 1.  Pervasive
   2. Dynamic
   3. Multidimensional
   4. Continuous

Answer: (B) Dynamic 

Explanation: 

The meaning of dynamic is change. So, the dynamic nature of the business describes that the environment of the business is changing. Whether the change is done with a slow or rapid phase doesn’t matter. 

8. Among the below components, which one is not a part of specific forces of business. 
9. 1. Customers
   2. Technological conditions
   3. Employees
   4. Investors

Answer: (B) Technological conditions

Explanation: 

The business mainly involves investors, employees, and customers, who serve their ideas and talent for the growth of an organization. However, Technological conditions are another aspect that comes under technology. Although it affects the growth of the business, do not consider a part of the business environment. 

9. What is the most important factor of planning in business? 
10. 1. Working on the strategies reduces the chances of uncertainties. 
    2. Research the various alternatives for achieving a particular task with less investment. 
    3. Development of leadership quality among the employees 
    4. Selection of the most suitable plan for the business 

Answer: (A) Working on the strategies which reduce the chances of uncertainties. 

Explanation: 

When the business starts, the occurrence of various uncertainties is normal. So, the main aim of the planning is to work on strategies that may reduce the chances of uncertainties in the future. 

10. From the below-written steps, which one is the most important planning step? 
11. 1. Inspection of the structure of the business 
    2. Inspection of the environment 
    3. Inspection of the attitude of the employees in the workplace 
    4. Inspection of the moral values of the workers and employees. 

Answer: (A) Inspection of the structure of the business 

Explanation: 

Planning is the systematic procedure done to prevent the business from future uncertainties. It defines all the basic strategies and policies that help properly execute the business idea.

11. From the options given below, which one is the single-used plan? 
12. 1. Rule
    2. Strategy 
    3. Method
    4. Budget 

Answer: (D) Budget 

Explanation:

A budget is described as the planning of all the financial decisions in the following year. Every business designs a new budget every year. After designing the budget, businesses have to take permission from the government to implement that particular budget. However, the government of any country also releases its budget every year, which describes all the major financial decisions of that year. 

12. From the options below, decision-making is the part of which one? 
13. 1. Staffing 
    2. Planning
    3. Directing
    4. Organizing

Answer: (B) Planning

Explanation: 

Planning contains the designing of decisions for the following year. 

13. From the below-given options, which statement describes the numerical values? 
14. 1. Plan
    2. Forecast 
    3. Estimate 
    4. Budget 

Answer: (D) Budget 

Explanation: 

A budget is described as the planning of all the financial decisions in the following year. It contains the amount of money invested in the following year.

14. From the below-given features, which one is the most important planning feature?
15. 1. Continuous
    2. Pervasive
    3. Integrating
    4. Achievement of a primary goal 

Answer: (D) Achievement of the primary goal 

Explanation: 

The main goal of planning is to achieve the primary goal. However, it also contains accurate decision-making for removing the chances of uncertainties in achieving a particular goal. 

15. From the below-given categories, which one is the most important category in developing any business. 
16. 1. Employees 
    2. Administration 
    3. Customers 
    4. None of the above 

Answer: (C) Customers 

Explanation: 

All the strategies of any business contain a common goal: getting the attraction of more and more customers. Customers play an important role in the overall growth of any business. So, the main category of any business is the customers. 

16. From the given below marks, which one describes the best quality of electrical appliances? 
17. 1. FPO
    2. ISO
    3. Agmark
    4. ISI

Answer: (D)  ISI 

Explanation: 

ISI is a type of mark that describes that the given electronic product is of good quality. It also defines that the following electronic product is safe and secure for use. Every consumer must have to check this mark before purchasing any electronic appliances. 

17. From the below-given options, which term describes the person who purchases any good for his personal and daily uses. Also, he/she consumes the services for their comfort and entertainment. 
18. 1. Customer 
    2. Employees 
    3. Manager 
    4. None of the above 

Answer: (A) Customer 

Explanation:

The customer is the person who purchases any goods for his personal and daily use. Customers play a vital role in the overall growth of any organization. The whole revenue of any business depends on its customers. Due to this, all the business designs various strategies for attracting customers. 

18. What is the role 0f the entrepreneur in any business?

1. 1. To design the whole business plan. 
   2. To research and study the business properly 
   3. To build the workplace 
   4. All the above-given options 

Answer: (D) All the above-given options

Explanation: 

The entrepreneur is the most important person in any business. Entrepreneurs design the whole structure of the business, research the business and build the workplace to implement planning. At the same time, business depends on the mind of the entrepreneur.