CUET Business Studies 2022 Slot 5 Past Year Paper with Solutions

Q1:

Business Studies

>

Nature & Significance

Easy

Rajat is working in an organisation for the last one month and he is very happy with the way the work is done. He notices that all the employees in the organisation are satisfied by the working environment and despite having a total workforce of 10,000 employees there is no chaos.

Identify the feature of management discussed above.

Management is an intangible force

Management is a dynamic function

Management is a group activity

Management is a continuous process

Correct Answer

Option 1

Correct Answer

Explanation

Q2:

Business Studies

>

Nature & Significance

Easy

A good manager counsels through praise and criticism in such a way that it brings out the best in the employee. Identify the function of Management

Planning

Directing

Controlling

Organising

Correct Answer

Option 2

Correct Answer

Explanation

Q3:

Business Studies

>

Controlling

Easy

Which function of management refers to monitoring organisational performance towards the attainment of organisational goals ?

Planning

Controlling

Directing

Organising

Correct Answer

Option 2

Correct Answer

Explanation

Q4:

Business Studies

>

Principles of Management

Easy

Work must be divided into small tasks. A competent specialist is required to perform each job. Identify the principle of management.

Discipline

Division of Work

Unity of Direction

Initiative

Correct Answer

Option 2

Correct Answer

Explanation

Q5:

Business Studies

>

Principles of Management

Easy

"The Intererst of an organisation should take priority over the interest of any individual employee". Identify the Principle of Management referred to in the statement given above.

Esprit be Corps

Subordination of Individual Interest to General Interest

Stability of tenure of personnel

Remuneration of employees

Correct Answer

Option 2

Correct Answer

Explanation

Q6:

Business Studies

>

Principles of Management

Medium

Match the items of List - I with the corect items of List - II.

List - I	List - II
(a) Science not rule of thumb	(i) Managers served as a link between owners and workers
(b) Harmony, not discord	(ii) Developed through study and analysis
(c) Cooperation not individualism	(iii) One best way to doing the job
(d) Method study	(iv) Complete Cooperation between the Labour and Management

Choose the correct answer from the options given below :

(a) - (i), (b) - (iii), (c) - (ii), (d) - (iv)

(a) - (iv), (b) - (ii), (c) - (iii), (d) - (i)

(a) - (ii), (b) - (iv), (c) - (i), (d) - (iii)

(a) - (ii), (b) - (i), (c) - (iv), (d) - (iii)

Correct Answer

Option 4

Correct Answer

Explanation

Q7:

Business Studies

>

Business Environment

Easy

Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences constitute _____ dimension of business environment.

Technological environment

Social environment

Economic environment

Political environment

Correct Answer

Option 2

Correct Answer

Explanation

Q8:

Business Studies

>

Business Environment

Medium

Business Environment doesn't help in :

Planning and policy formulation

Coping with rapid changes

Establishing standards for controlling

Tapping useful resources

Correct Answer

Option 3

Correct Answer

Explanation

Q9:

Business Studies

>

Business Environment

Easy

SwarnaBhoomi is a resort in the outskirts of Delhi at Delhi-Gurgoan Express way. The unique feature of this resort was being a gadget free zone where families enjoy their time together. However, recently the visitors have been requesting for wifi, pet care facilities and room pantry. The manager sensing the shift in consumer preference upgraded these facilities by providing :

(a) Free Wi-fi zone

(b) A cretch for pets

(c) A cook-top with essentials for cooking in selected villas and rooms

The above case highlights that :

Business environment is complete in nature

Business environment is a relative concept

Business environment is dynamic in nature

Different elements of Business environment are closely interrelated

Correct Answer

Option 3

Correct Answer

Explanation

Q10:

Business Studies

>

Planning

Medium

Arrange the process of planning in correct sequence.

(a) Setting objectives

(b) Identifying alternative course of actions

(c) Developing premises

(d) Selecting an alternative

(e) Evaluating alternative courses

Choose the most appropriate answer from the options given below :

(a), (b), (c), (d), (e)

(a), (c), (d), (b), (e)

(a), (c), (b), (d), (e)

(a), (c), (b), (e), (d)

Correct Answer

Option 4

Correct Answer

Explanation

Q11:

Business Studies

>

Planning

Easy

Reena is working in a car manufacturing company. One day she approaches her supervisor to discuss a better procedure of manufacturing the car. But the superior informs her that he is helpless and cannot change the procedure as it is set by the higher level Management. Identify the limitation of planning highlighted here i.e. Planning :

May not work in a dynamic environment

Involves huge costs

Is a time consuming process

Leads to rigidity

Correct Answer

Option 4

Correct Answer

Explanation

Q12:

Business Studies

>

Planning

Easy

The purpose of planning is to meet future events effectively to the best advantage of an organisation. Identify the feature of planning highlighted here :

Planning is mental exercise

Planning is futuristic

Planning is continuous

Planning involves decision making

Correct Answer

Option 2

Correct Answer

Explanation

Q13:

Business Studies

>

Organising

Easy

Span of Management refers to _____.

Number of members in middle level management

Number of members in top level management

Number of subordinates under a superior

Length of term for which a manager is appointed

Correct Answer

Option 3

Correct Answer

Explanation

Q14:

Business Studies

>

Organising

Medium

"Delegation does not mean abdication". This statement means :

Authority granted to the subordinates cannot be taken back

Responsibility depends on the extent of authority delegated to the subordinate

The Manager shall be responsible for the performance of the assigned task and even accountable for the same

Delegation is entrustment of responsibility and authority to the subordinate relieving the manager from accountability for performance

Correct Answer

Option 3

Correct Answer

Explanation

Q15:

Business Studies

>

Staffing

Medium

Staffing is putting people to jobs. It includes workforce planning and comprises the following process. State the correct sequence of the process.

(a) Estimating the Manpower Recruitment

(b) Placement and Orientation

(c) Training and Development

(d) Recruitment

(e) Selection

Choose the most appropriate answer from the options given below :

(a), (b), (e), (d), (c)

(a), (c), (d), (b), (e)

(a), (d), (e), (b), (c)

(c), (e), (b), (a), (d)

Correct Answer

Option 3

Correct Answer

Explanation

Q16:

Business Studies

>

Staffing

Easy

The objective of the step of Staffing Process is to create a pool of prospective candidates for the job. Identify the step of Staffing Process highlighted in the above statement.

Casual Callers

Recruitment

Selection

Placement and Orientation

Correct Answer

Option 2

Correct Answer

Explanation

Q17:

Business Studies

>

Directing

Easy

The manager does not have confidence on his subordinates so he does not ask for any suggestions from them. Identify the type of Personal Barrier being highlighted in the above situation.

Fear of challenge to authority

Lack of confidence of superior on subordinates

Unwillingness to communicate

Lack of proper incentive

Correct Answer

Option 2

Correct Answer

Explanation

Q18:

Business Studies

>

Directing

Medium

Match the items of List - I with the correct items of List - II.

List - I	List - II
(a) Employee empowerment	(i) Leadership style
(b) Grapevine	(ii) Financial incentive
(c) Laissez Faire	(iii) Non financial incentives
(d) Co-Partnership	(iv) Internal communications

Choose the correct answer from the options given below :

(a) - (i), (b) - (ii), (c) - (iii), (d) - (iv)

(a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)

(a) - (iii), (b) - (iv), (c) - (i), (d) - (ii)

(a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)

Correct Answer

Option 3

Correct Answer

Explanation

Q19:

Business Studies

>

Directing

Medium

Arrange the elements of communication in a proper sequence.

(a) Sender

(b) Encoding

(c) Receiver

(d) Message

(e) Decoding

Choose the most appropriate answer from the options given below :

(e), (b), (c), (d), (a)

(a), (b), (c), (d), (e)

(a), (c), (b), (d), (e)

(a), (d), (b), (e), (c)

Correct Answer

Option 4

Correct Answer

Explanation

Q20:

Business Studies

>

Controlling

Easy

Identify the function of management that helps in judging the accuracy of standards.

Planning

Staffing

Directing

Controlling

Correct Answer

Option 4

Correct Answer

Explanation

Q21:

Business Studies

>

Controlling

Easy

Maya, the owner of the firm, sets production target for each day and month, in consultation with the Production Manager and supervisors. They decided that deviation between standard production and actual production up to 5% is acceptable. Deviations beyond this, should be reported. Identify the concept mentioned above.

Management by Exception

Key Responsibility Areas

ROI

Budgetary Control

Correct Answer

Option 1

Correct Answer

Explanation

Q22:

Business Studies

>

Controlling

Medium

Arrange the following steps of controlling in proper order.

(a) Analysing deviation

(b) Comparing actual performance with standards

(c) Setting performance standards

(d) Taking corrective action

(e) Measurement of actual performance

Choose the most appropriate answer from the options given below :

(c), (e), (b), (d), (a)

(c), (b), (a), (d), (e)

(c), (e), (b), (a), (d)

(d), (c), (e), (b), (a)

Correct Answer

Option 3

Correct Answer

Explanation

Q23:

Business Studies

>

Controlling

Medium

Match the items of List - I with the correct items of List - II.

List - I	List - II
(a) Personal Observation	(i) operations are planned in advance in the form of financial statement and actual results compared
(b) Budgetary Control	(ii) Technique used to study relationship between cost, volume and profits
(c) Break even Analysis	(iii) enables manager to collect first hand information
(d) Statistical Reports	(iv) information presented in the form of chart, graph, table etc.

Choose the correct answer from the options given below :

(a) - (iii), (b) - (i), (c) - (ii), (d) - (iv)

(a) - (iii), (b) - (i), (c) - (iv), (d) - (ii)

(a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)

(a) - (iii), (b) - (ii), (c) - (i), (d) - (iv)

Correct Answer

Option 1

Correct Answer

Explanation

Q24:

Business Studies

>

Controlling

Easy

Which one of the following is NOT a limitation of controlling ?

Little control on external factor

Ensuring order and discipline

Resistance from Employees

Costly affair

Correct Answer

Option 2

Correct Answer

Explanation

Q25:

Business Studies

>

Financial Markets

Easy

Which one of the following is NOT the function of Financial Market ?

Facilitating Price Discovery

Composition of long term and short term funds

Mobilisation of savings and channeling them into the most productive uses

Providing the liquidity to Financial assets

Correct Answer

Option 2

Correct Answer

Explanation

Q26:

Business Studies

>

Financial Markets

Medium

Name the intermediary who is authorised to maintain the accounts of dematerialised shares :

Depository

Depository Participant (DP)

BSE - Bombay Stock Exchange

RBI - Reserve Bank of India

Correct Answer

Option 2

Correct Answer

Explanation

Q27:

Business Studies

>

Financial Markets

Easy

Name the money market instrument, used by large and credit worthy companies to raise the short term funds at lower rates of interest than market rates.

Call money

Commercial Papers

Certificate of Deposit

Commercial Bill

Correct Answer

Option 2

Correct Answer

Explanation

Q28:

Business Studies

>

Financial Markets

Easy

In order to raise share capital, ABC Ltd., is issuing shares and giving privilege to the existing shareholders to subscribe to the new issue of shares according to the terms of conditions of the company. Identify the method of floatation used by the company.

Private Placement

Offer for sale

Right issue

e-ipo

Correct Answer

Option 3

Correct Answer

Explanation

Q29:

Business Studies

>

Financial Markets

Easy

"Financial Markets help to save time, efforts and money of both buyers and sellers of financial assets". Identify the function of financial markets being highlighted in the statement.

Mobilisation of Savings and Channeling them into the most productive uses

Reducing cost of transactions

Facilitating price discovery

Providing liquidity to financial assets

Correct Answer

Option 2

Correct Answer

Explanation

Q30:

Business Studies

>

Business Finance

Medium

Dividend decision is affected by many factors. Identify the factors affecting dividend decisions.

(a) State of Capital market

(b) Control Consideration

(c) Shareholder's Preference

(d) Taxation Policy

(e) Floatation Cost

Choose the most appropriate answer from the options given below :

(a), (b) and (c) only

(c) and (d) only

(c), (d) and (e) only

(b), (c) and (d) only

Correct Answer

Option 2

Correct Answer

Explanation

Q31:

Business Studies

>

Marketing

Easy

Ravi has started his online business of selling Garments because of low cost of production. Identify the distributions channel used by Ravi.

Zero Level

One Level

Two Level

Three Level

Correct Answer

Option 1

Correct Answer

Explanation

Q32:

Business Studies

>

Marketing

Medium

Identify the function of marketing that is also given by F.W. Taylor as one of the Techniques of Scientific Management.

Motion study

Functional Foremanship

Standardisation

Fatigue study

Correct Answer

Option 3

Correct Answer

Explanation

Q33:

Business Studies

>

Marketing

Medium

Identify the correct sequence of factors affecting Price Determination from the following.

(a) Product cost

(b) Environmental factors

(c) The Utility and Demand

(d) Company Characteristics

(e) The Extent of competition in the market

Choose the most appropriate answer from the options given below :

(a), (b) and (c) only

(a) and (c) only

(a), (d) and (c) only

(a), (c) and (e) only

Correct Answer

Option 4

Correct Answer

Explanation

Q34:

Business Studies

>

Consumer Protection

Easy

Richa purchased an ISI marked steam iron from a branded shop. When she switched the steam iron on, she got an electric shock. Due to the electric shock she got her fingers burnt. Identify the consumer right violated by the company.

Right to Safety

Right to Seek Redressal

Right to be informed

Right to consumer education

Correct Answer

Option 1

Correct Answer

Explanation

Q35:

Business Studies

>

Consumer Protection

Easy

Many Business Organisations have set up their own consumer services and grievance cells so that the consumer can file a complaint in case of dissatisfaction with a good or service. Name the Consumer Right on which the Business Organisations are focussing :

Right to be informed

Right to be Heard

Right to be Seek Redressal

Right to Consumer Education

Correct Answer

Option 2

Correct Answer

Explanation

Q36:

Business Studies

>

Consumer Protection

Easy

When DTH was launched in India all service providers were charging a flat rate in which all channels were provided. Consumers even had to pay for those channels which they did not want to see. Which consumer right is ignored by the DTH service providers ?

Right to be heard

Right to be informed

Right to choose

Right to seek redressal

Correct Answer

Option 3

Correct Answer

Explanation

Q37:

Business Studies

>

Consumer Protection

Medium

Match the items of List - I with the correct items of List - II.

List - I (Marks)	List - II (Name)
(a)	(i) Food Process Order
(b)	(ii) Electrical Goods
(c)	(iii) Eco-Mark
(d)	(iv) BIS Hallmark

(a) - (ii), (b) - (iii), (c) - (i), (d) - (iv)

(a) - (ii), (b) - (i), (c) - (iii), (d) - (iv)

(a) - (i), (b) - (iii), (c) - (iv), (d) - (ii)

(a) - (iii), (b) - (iv), (c) - (ii), (d) - (i)

Correct Answer

Option 2

Correct Answer

Explanation

Q38:

Business Studies

>

Consumer Protection

Easy

Rohit died in a car accident as the air bags of the car did not open on impact. His family and friends are very angry about this defect in the car. They decided to file a case on the car company. Who can file a case on the car company under Consumer Protection Act. ?

The Car Showroom owner

The legal heir of Rohit

The Consumer of another car company

An Unregistered Consumer Association

Correct Answer

Option 2

Correct Answer

Explanation

Q39:

Business Studies

>

Entrepreneurship Development

Medium

Identify the Characteristics of entrepreneurship from the following.

Behavioural

Organisation of Production

Fulfilling Social Responsibility

Basis of Management Hierarchy

Correct Answer

Option 2

Correct Answer

Explanation

Q40:

Business Studies

>

Organising

Medium

Which step in the process of organisation leads to creation of management hierarchy ?

Identification and division of work

Departmentalisation

Assignment of duties

Establishmenting reporting relationships

Correct Answer

Option 4

Correct Answer

Explanation

Q41:

Business Studies

>

Staffing

Easy

Read the passage given below and answer the question.

Saksham, a newly appointed servicemen at M/s. Ghaziabad Petrol Station, G.T. Road, usually encounters problems while performing his job, 'like swiping the card when customer's pay; generally forgetting to bring down the meter to zero before filling the petrol tanks of various vehicles; considerable amount of petrol spills while filling the petrol tank and so on. Overall, he doesn't respond in the manner as expected. Hence, customers get irritated and often complain about him. Saksham feels sad that dispite his best efforts, he is not being able to perform his job properly. Saksham was appointed on the request of one of the close relatives of Petrol Pump Manager. Hence, the Petrol Pump Manager tries to improve Saksham's performance through maintaing good personal relations with him and thus to achieve goals of the organisation. Otherwise Petrol Pump Manager likes to give orders and expects his subordinates to obey them without any contradiction. He believes reward and punishment both can be given depending upon the result.

The concept of staffing that may be used to improve Saksham's performance is :

Recruitment

Training

Performance Appraisal

Placement and Orientation

Correct Answer

Option 2

Correct Answer

Explanation

Q42:

Business Studies

>

Staffing

Medium

Read the passage given below and answer the question.

Saksham, a newly appointed servicemen at M/s. Ghaziabad Petrol Station, G.T. Road, usually encounters problems while performing his job, 'like swiping the card when customer's pay; generally forgetting to bring down the meter to zero before filling the petrol tanks of various vehicles; considerable amount of petrol spills while filling the petrol tank and so on. Overall, he doesn't respond in the manner as expected. Hence, customers get irritated and often complain about him. Saksham feels sad that dispite his best efforts, he is not being able to perform his job properly. Saksham was appointed on the request of one of the close relatives of Petrol Pump Manager. Hence, the Petrol Pump Manager tries to improve Saksham's performance through maintaing good personal relations with him and thus to achieve goals of the organisation. Otherwise Petrol Pump Manager likes to give orders and expects his subordinates to obey them without any contradiction. He believes reward and punishment both can be given depending upon the result.

Identify the most suitable method that may be applied to make Saksham an efficient worker.

Vestibule

Internship

Apprenticeship

Induction

Correct Answer

Option 1

Correct Answer

Explanation

Q43:

Business Studies

>

Staffing

Easy

Read the passage given below and answer the question.

Saksham, a newly appointed servicemen at M/s. Ghaziabad Petrol Station, G.T. Road, usually encounters problems while performing his job, 'like swiping the card when customer's pay; generally forgetting to bring down the meter to zero before filling the petrol tanks of various vehicles; considerable amount of petrol spills while filling the petrol tank and so on. Overall, he doesn't respond in the manner as expected. Hence, customers get irritated and often complain about him. Saksham feels sad that dispite his best efforts, he is not being able to perform his job properly. Saksham was appointed on the request of one of the close relatives of Petrol Pump Manager. Hence, the Petrol Pump Manager tries to improve Saksham's performance through maintaing good personal relations with him and thus to achieve goals of the organisation. Otherwise Petrol Pump Manager likes to give orders and expects his subordinates to obey them without any contradiction. He believes reward and punishment both can be given depending upon the result.

Identify the source of recruitment through which Saksham was appointed.

Direct Recruitment

Casual Caller

Recommendation of Employee

Management Consultants

Correct Answer

Option 3

Correct Answer

Explanation

Q44:

Business Studies

>

Directing

Medium

Read the passage given below and answer the question.

Saksham, a newly appointed servicemen at M/s. Ghaziabad Petrol Station, G.T. Road, usually encounters problems while performing his job, 'like swiping the card when customer's pay; generally forgetting to bring down the meter to zero before filling the petrol tanks of various vehicles; considerable amount of petrol spills while filling the petrol tank and so on. Overall, he doesn't respond in the manner as expected. Hence, customers get irritated and often complain about him. Saksham feels sad that dispite his best efforts, he is not being able to perform his job properly. Saksham was appointed on the request of one of the close relatives of Petrol Pump Manager. Hence, the Petrol Pump Manager tries to improve Saksham's performance through maintaing good personal relations with him and thus to achieve goals of the organisation. Otherwise Petrol Pump Manager likes to give orders and expects his subordinates to obey them without any contradiction. He believes reward and punishment both can be given depending upon the result.

Name the element of one of the functions of management being discussed in the above case :

Leadership

Motivation

Communication

Supervision

Correct Answer

Option 1

Correct Answer

Explanation

Q45:

Business Studies

>

Directing

Medium

Read the passage given below and answer the question.

Saksham, a newly appointed servicemen at M/s. Ghaziabad Petrol Station, G.T. Road, usually encounters problems while performing his job, 'like swiping the card when customer's pay; generally forgetting to bring down the meter to zero before filling the petrol tanks of various vehicles; considerable amount of petrol spills while filling the petrol tank and so on. Overall, he doesn't respond in the manner as expected. Hence, customers get irritated and often complain about him. Saksham feels sad that dispite his best efforts, he is not being able to perform his job properly. Saksham was appointed on the request of one of the close relatives of Petrol Pump Manager. Hence, the Petrol Pump Manager tries to improve Saksham's performance through maintaing good personal relations with him and thus to achieve goals of the organisation. Otherwise Petrol Pump Manager likes to give orders and expects his subordinates to obey them without any contradiction. He believes reward and punishment both can be given depending upon the result.

The leadership style usually followed by the Petrol Pump Manager is :

Participative Leadership style

Free-rein Leadership style

Dogmatic Leadership style

Free-Lancer Leadership style

Correct Answer

Option 3

Correct Answer

Explanation

Q46:

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the concept of Financial Management being mentioned in the above case.

Wealth Maximisation

Financial Planning

Financial Transactions

Financial Decisions

Correct Answer

Option 2

Correct Answer

Explanation

Q47:

Business Studies

>

Business Finance

Medium

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

The various objectives of financial planning concept identified in the case study are :

(a) To see for stock market reactions

(b) To ensure availability of funds whenever required

(c) To prepare financial budget

(d) To take care of purchasing raw material

(e) To see that the firm does not raise resources unnecessarily

Choose the most appropriate answer from the options given below :

(a) and (b) only

(b) and (c) only

(d) and (b) only

(b) and (e) only

Correct Answer

Option 4

Correct Answer

Explanation

Q48:

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the financial decision taken by 'Health and Life Ltd.' that involves allocation of funds.

Investment decision

Dividend decision

Financing decision

Management decision

Correct Answer

Option 1

Correct Answer

Explanation

Q49:

Business Studies

>

Business Finance

Easy

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Identify the financial decision of Mr. Gulati about the requirement of finance to be raised for the company from various sources.

Investment decision

Management decision

Financing decision

Dividend decision

Correct Answer

Option 3

Correct Answer

Explanation

Q50:

Business Studies

>

Marketing

Medium

Read the passage carefully and answer the question.

Mr. Rajesh Gulati is the Finance Manager of 'Health and Life Ltd.' a company dealing with health and organic food items. The company sells its products in smaller quantities in attractive containers. Moreover they have also decided to provide an additional layer of packaging for their products for the purpose of protections along with necessary storage, identification and even convenient transportation.

Keeping up with the latest packaging technology the company decided to upgrade its machinery. This, however, involved a major decision making as to how funds should be invested, so what the company is able to earn highest possible return.

Mr. Gulati estimated the amount of funds required for this purpose. He began with the preparation of sales forecast for the next four years.

He also collected the relevant data about the profit estimates in the coming years. By doing this he wanted to be sure about the availability of funds from internal sources. For the remaining funds he is trying to find out alternative sources.

Name the various levels of packaging used by 'Health and Life Ltd.' as mentioned in the case study.

(a) Primary Package

(b) Secondary Package

(c) Tertiary Package

(d) Transportation Package

(e) Fancy Package

Choose the most appropriate answer from the options given below :

(a), (b) and (d) only

(a), (b) and (c) only

(a), (b) and (e) only

(b) and (d) only

Correct Answer

Option 1

Correct Answer

Explanation

CUET Business Studies 2022 PYQs30 Aug Shift 1. Free, no login required.

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CUET Business Studies 2022 30 Aug Shift 1 Past Year Question Paper

CUET Business Studies Past Year Questions (Topic-Wise)