Preparing for your CBSE Class 12th Business Studies exam? Here’s a comprehensive set of 100 quick revision questions and answers covering key topics from your syllabus, including Principles of Management, Business Environment, Financial Management, Marketing, Consumer Protection, and more.
1. Nature and Significance of Management
- What is management?
Management is the process of planning, organizing, staffing, directing, and controlling to achieve organizational goals efficiently and effectively. - Define effectiveness in management.
Effectiveness means achieving organizational goals successfully within the desired timeframe. - Why is management called a process?
Management is called a process because it involves a series of interrelated functions. - What are the three levels of management?
Top-level, middle-level, and lower-level management. - What is the importance of coordination in management?
Coordination ensures synchronization of efforts across departments to achieve common goals. - What are the objectives of management?
Management objectives include organizational objectives, social objectives, and personal objectives. - Explain the concept of ‘Efficiency’ in management.
Efficiency refers to doing tasks correctly with minimum cost and resources. - How does management ensure adaptability to the business environment?
By planning and making necessary adjustments in organizational strategies. - State the role of middle-level management.
Middle-level management acts as a bridge between top-level management and operational staff. - What is the significance of management in organizations?
Management ensures effective utilization of resources, achieves goals, and maintains a competitive edge.
2. Principles of Management
- Who introduced the principles of management?
Henri Fayol introduced the principles of management. - What is the principle of ‘Division of Work’?
Specialization improves efficiency by dividing work into smaller tasks. - Explain ‘Unity of Direction’.
All activities with the same objective should be directed by one plan and one manager. - What is ‘Authority and Responsibility’?
Authority is the right to give orders, and responsibility is the obligation to perform tasks. - State Fayol’s principle of ‘Equity’.
Managers should treat employees fairly and with justice. - What is the principle of ‘Order’?
There should be a proper place for everything and everyone in the organization. - Explain ‘Esprit de Corps’.
It emphasizes team spirit and unity among employees. - What does ‘Scalar Chain’ refer to?
The chain of command from the highest to the lowest rank. - Name any two techniques of scientific management.
Time study and motion study. - What is meant by ‘Functional Foremanship’?
It is a technique where different specialists supervise different aspects of work.
3. Business Environment
- What is a business environment?
It refers to external and internal factors that influence business operations. - List the dimensions of the business environment.
Economic, social, technological, political, and legal. - Explain ‘Economic Environment’.
It includes factors like interest rates, inflation, GDP, and economic policies. - What is ‘Demonetization’?
It refers to the withdrawal of legal tender status of currency notes. - How does technology impact the business environment?
It introduces innovation, improves efficiency, and influences competition. - What are the features of a dynamic business environment?
Uncertainty, complexity, and interrelatedness. - What is the importance of a business environment?
It helps businesses adapt, innovate, and achieve growth. - What is the social environment?
It includes societal norms, values, and cultural aspects. - Define ‘Legal Environment’.
It consists of laws, regulations, and legal norms that affect business operations. - Why is understanding the political environment important for businesses?
It helps businesses anticipate changes in government policies.
4. Planning
- What is planning?
Planning is the process of setting objectives and determining the best course of action to achieve them. - Why is planning important?
It provides direction, reduces risks, and ensures efficient use of resources. - List the steps involved in the planning process.
Setting objectives, developing premises, identifying alternatives, and selecting the best alternative. - What are single-use plans?
Plans formulated for one-time activities or projects. - What are standing plans?
Ongoing plans used for recurring activities. - Explain the concept of ‘Policy’ in planning.
A policy is a general guideline for decision-making. - What is a ‘Procedure’?
A detailed series of steps to be followed for completing a specific task. - What is meant by ‘Rule’?
A rule is a specific statement that guides actions and behavior. - What are the limitations of planning?
It is time-consuming, costly, and may not be flexible. - What is contingency planning?
It is a backup plan prepared for unexpected situations.
5. Financial Management
- Define financial management.
It involves planning, organizing, and controlling financial resources. - What are the objectives of financial management?
Ensuring profitability, liquidity, and wealth maximization. - What are the three financial decisions?
Investment decisions, financing decisions, and dividend decisions. - Explain ‘Capital Structure’.
It refers to the mix of debt and equity in a company’s financing. - What is working capital?
The capital required for day-to-day operations. - List factors affecting fixed capital requirements.
Nature of business, scale of operations, and technology. - What is ‘Financial Planning’?
It ensures that the right amount of funds is available at the right time. - What is meant by ‘Dividend Decision’?
It involves deciding the portion of profit to be distributed as dividends. - What are the sources of long-term finance?
Equity shares, preference shares, and debentures. - What is the importance of financial management?
It ensures optimal utilization of financial resources.
6. Marketing
- Define marketing.
Marketing involves promoting and selling products or services to meet customer needs. - What are the elements of the marketing mix?
Product, price, place, and promotion. - What is branding?
Branding involves creating a unique identity for a product. - What is the role of packaging in marketing?
It protects the product and attracts customers. - What are the components of physical distribution?
Transportation, warehousing, inventory management, and order processing. - What is advertising?
Advertising is a non-personal form of communication used to promote products. - Explain personal selling.
It involves face-to-face interaction to persuade customers. - What is sales promotion?
Short-term incentives to boost sales. - What is meant by public relations?
Building a positive image of the company and maintaining good relations with stakeholders. - What is a product lifecycle?
The stages a product goes through: introduction, growth, maturity, and decline.
7. Consumer Protection
- What is consumer protection?
It refers to safeguarding consumers’ rights and interests. - List any three consumer rights.
Right to safety, right to information, and right to redress. - Who is a consumer?
A person who buys goods or services for personal use. - What is the Consumer Protection Act, 2019?
A law aimed at protecting consumer interests and resolving disputes. - What are the responsibilities of consumers?
Being aware, demanding a bill, and following environmental norms. - What is the role of consumer organizations?
They create awareness and assist consumers in resolving grievances. - What is meant by redressal machinery?
Bodies established to resolve consumer disputes. - Name the three-tier redressal mechanism under the Consumer Protection Act.
District Forum, State Commission, and National Commission. - What are the remedies available to consumers?
Refund, replacement, and compensation. - What is the significance of consumer protection?
It ensures fair trade practices and empowers consumers.
8. Organizing
- What is organizing?
Organizing is the process of arranging resources and tasks to achieve objectives. - List the steps in the organizing process.
Identifying activities, grouping activities, assigning duties, and establishing authority. - What is functional structure?
It groups employees based on functions like marketing, finance, and operations. - What is divisional structure?
It groups employees based on products, projects, or geography. - What is the difference between formal and informal organization?
A formal organization is officially structured, while an informal organization is based on personal relationships. - What are the elements of delegation?
Authority, responsibility, and accountability. - What is decentralization?
It is the systematic delegation of decision-making authority to lower levels of management. - What are the advantages of decentralization?
Faster decision-making, increased motivation, and reduced workload for top management. - What is the importance of delegation?
It enables better management, motivates employees, and ensures task completion. - Differentiate between delegation and decentralization.
Delegation refers to assigning tasks to subordinates, while decentralization involves distributing decision-making power.
9. Staffing
- What is staffing?
Staffing is the process of recruiting, selecting, and developing employees. - Why is staffing important?
It ensures that the right people are hired for the right jobs. - What are the steps in the staffing process?
Manpower planning, recruitment, selection, training, and development. - What is internal recruitment?
Filling positions with current employees through promotions or transfers. - What is external recruitment?
Hiring candidates from outside the organization. - What is meant by training?
Training is the process of improving an employee’s skills and knowledge for their current job. - What are on-the-job training methods?
Coaching, job rotation, and apprenticeship. - What are off-the-job training methods?
Lectures, seminars, and simulations. - What is the difference between training and development?
Training focuses on current job skills, while development focuses on future roles. - What is performance appraisal?
It is the evaluation of an employee’s performance to provide feedback and identify areas for improvement.
10. Controlling
- What is controlling?
Controlling is the process of monitoring and evaluating performance to ensure objectives are met. - List the steps in the controlling process.
Setting standards, measuring performance, comparing performance, and taking corrective actions. - What is a budgetary control?
A method of controlling activities through budgets. - What is the relationship between planning and controlling?
Planning sets the objectives, while controlling ensures they are achieved. - What are the types of control?
Strategic control, operational control, and financial control. - What is management by exception?
It focuses on significant deviations from the standard. - What is feedback control?
It involves evaluating performance after the task is completed. - What is concurrent control?
It monitors activities in real-time to make adjustments. - What is preventive control?
It focuses on identifying potential problems before they occur. - Why is controlling important?
It ensures efficiency, reduces risks, and helps achieve organizational objectives.
