Business Studies M.C.Q (1 Marks)

Controlling is related to ________.

The firm’s ability to borrow at a lower rate increases its capacity to employ higher debt. The factor affecting choice of capital structure referred to is:

Match the following activities in column I with their respective levels of management in column II:

(a) Top Management	(i) Introducing a new product line and deciding the capital structure of the company.
(b) Middle Management	(ii) Recruitment of casual labourers.
(c) Supervisory or Operational Management	(iii) Devise a suitable advertising campaign to sell a new product/service a company is launching.

In 2019 alone, Swiggy has launched operations in 300 towns and cities. Swiggy follows a two-step sequence while expanding to a small town. First, it provides more laborious training to restaurants and delivery partners compared to their counterparts in the city. Second, it focuses on building scale in operations and increase the restaurant’s reach to a larger base of consumers, including optimizing kitchens, resource planning among others.
Identify the type of plan being described in the above lines.

Statement I: Labelling helps in promotion of the products; and provides information required by law.
Statement II: Pricing is the single most important factor affecting the revenue and profits of a firm.

Why is working capital important?

Elpis Ltd. has a plan of increasing profits by 20%. It has devoted a lot of time and money to this plan. But the competition starts increasing, so it could not change its plan to beat its competitors because huge amount of money had already been devoted to the pre-decided plan. It caused losses to the company.
Identify the limitations of planning highlighted in the above case.
a. Planning is a time consuming process.
b. Planning leads to rigidity.
c. Planning reduces creativity.
d. Planning is a costly process.

Statement I: The Consumer Protection Act 2019 has replaced the Act 1986 and seeks to widen its scope in addressing consumer concerns.
Statement II: The Consumer Protection Act 2019 provides for Setting up of Consumer Mediation Cell to ensure faster dispute settlements by respective commissions.

Rajnish is the finance manager of Jupiter Ltd. In the current year, the company earned high profit. However, Rajnish thinks that it is better to declare smaller dividend as he is unsure about the earning potential of the company in the coming years. Rajnish’s choice of dividend decision is based on which of the factor that affect it?

Adapting to a change in consumer preference towards online shopping, Fast-Service started a grocery delivery app. It is a platform that ensures 10-minute deliveries of groceries. Because of this service, Fast-Service earned huge profit within a year. It planned to expand its operations and decided to raise funds by directly issuing its securities to investors.
The market through which Fast-Service has decided to raise funds for its expansion is:

Assertion (A): Decentralization is an optional policy decision.
Reason (R): It is done at the discretion of the top management.

Which of the following statement is false?
a. Service industries require less working capital.
b. Working capital requirement is higher in firms with shorter processing cycle.
c. A liberal credit policy results in larger working capital requirement.
d. Larger the lead time, larger shall be the amount of working capital required.

Mega Enterprises is a company manufacturing water geysers. The company has a functional structure with four main functions-Production, Marketing, Finance and Human Resource. As the demand for the product grew, the company decided to hire more employees. Identify the concept which will help the Human Resource Manager in deciding the actual number of persons required in each department.

Sensex is dependent on ________ companies.

An efficient control system helps to

What out of the following is the effect of optimal capital structure?

What are certain assumptions about the future on the basis of which the plan will be ultimately formulated?

Money market instruments issued on behalf of the Central Government:

Ravi is the Managing Director of Ionn Ltd., manufacturing different varieties of cheese. He has an efficient team working under him consisting of Lalit at, the Production manager, Varun - the Marketing manager and Abhay - the Finance manager. They understand and interpret the policies made by Ravi, ensure that their departments have adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives. Identify the level of management they are working.