CUET Business Studies Question Paper 2024 SET B Download Solutions and Answer Key

| Updated On - Dec 9, 2024

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CUET 2024 Business Studies Question Paper (SET B) with Answer Key PDF

CUET 2024 Business Studies Question Paper with Answer Key SET B	Download	Check Solution

CUET 2024 Business Studies Answer Key

Question	Answer	Detailed Solution
Q1: Identify the correct sequence of Organizing function of management. (A) Establishing authority and reporting relationships (B) Departmentalisation (C) Identification and division of work (D) Assignment of duties Choose the correct answer from the options given below:	(4) (C), (B), (D), (A)	The organizing function unfolds in a specific sequence: (C) Identification and division of work, (B) Departmentalization, (D) Assignment of duties, and (A) Establishing authority and reporting relationships.
Q2: Identify the Consumer Right – ”The consumer has the freedom to access a variety of products at competitive prices. This implies that the marketers should offer a wide variety of products in terms of quality, brand, prices, size, etc.” (1) Right to Safety (2) Right to Seek Redressal (3) Right to be Assured (4) Right to Consumer Education Choose the correct answer from the options given below:	(3) Right to be Assured	The statement refers to the consumer’s right to access a variety of products at competitive prices, which directly corresponds to the Right to be Assured.
Q3: Identify the method of flotation in the Primary Market wherein a company sells securities en bloc at an agreed price to a broker. (1) Rights issue (2) Offer for sale (3) e-IPOs (4) Offer through Prospectus Choose the correct answer from the options given below:	(2) Offer for sale	The description matches the process of an "Offer for Sale," where a company sells its securities in bulk ("en bloc") to a broker at an agreed price.
Q4: Match List-I with List-II on the basis of meaning and the term: List-I (Meaning) List-II (Term) (A) Right to command (I) Answerability (B) Obligation to perform task (II) Delegation (C) Accountability (III) Authority (D) Basis of management hierarchy (IV) Responsibility Choose the correct answer from the options given below:	(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	(A) Right to command: Authority (III), (B) Obligation to perform task: Responsibility (IV), (C) Accountability: Answerability (I), (D) Basis of management hierarchy: Delegation (II).
Q5: The formal organisation can be better understood by a study of its features which are as follows: (A) It specifies the relationships among various job positions and the nature of their inter-relationship. This clarifies who has to report to whom. (B) It is a means to achieve the objectives specified in the plans, as it lays down rules and procedures essential for their achievement. (C) Independent channels of communication without specified direction of flow of information are developed by group members. (D) It is deliberately designed by the top management to facilitate the smooth functioning of the organisation. Which of the following options are correct? (1) (A), (B) and (D) only (2) (A), (B) and (C) only (3) (A), (B), (C) and (D) (4) (B), (C) and (D) only Choose the correct answer from the options given below:	(1) (A), (B) and (D) only	(A), (B), and (D) are correct. (C) is incorrect as it describes informal organizations, not formal ones.
Q6: The informal organisation offers many benefits. Important among them are given below: (A) Prescribed lines of communication are not followed. Thus, informal organisation leads to faster spread of information as well as quick feedback. (B) It helps to fulfil the social needs of the members and allows them to find like-minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation. (C) It contributes towards fulfilment of organisational objectives by compensating for inadequacies in the formal organisation. (D) Unity of command is maintained through an established chain of command. Choose the correct answer from the options given below:	(2) (A), (B) and (C) only	(A), (B), and (C) are correct: Informal organizations enhance communication speed, provide social support, and compensate for formal organizational weaknesses. (D) is incorrect, as unity of command is a feature of formal organizations.
Q7: Identify the correct sequence of trading & settlement procedure: (A) The investor has to sign a broker client agreement. (B) The investor has to open a 'Demat' Account. (C) An order confirmation slip is issued to the investor by the broker. (D) The broker will then go online and connect to the main stock exchange. Choose the correct answer from the options given below:	(1) (A), (B), (C), (D)	The correct sequence is: (A) Broker Client Agreement → (B) Demat Account Opening → (D) Broker Connects to Exchange → (C) Order Confirmation.
Q8: The market where existing securities are bought and sold is known as: (1) Primary market (2) Secondary market (3) Capital market (4) Financial market Choose the correct answer from the options given below:	(2) Secondary market	The secondary market is where existing securities are traded among investors. The primary market involves the issuance of new securities.
Q9: Qualities of successful entrepreneur do not include: (1) Initiative (2) Self-confidence (3) Risk avoider (4) Wealth creators Choose the correct answer from the options given below:	(3) Risk avoider	Successful entrepreneurs are often distinguished by their willingness to take calculated risks. Being a "risk avoider" is not a quality typically associated with entrepreneurial success, as entrepreneurship inherently involves taking risks. On the other hand, initiative, self-confidence, and the ability to create wealth are essential traits for successful entrepreneurs.
Q10: Identify the function performed by SEBI: “It controls insider trading, takeover bids and imposes penalties for such practices.” (1) Protective functions (2) Regulatory functions (3) Developmental functions (4) Preventive functions Choose the correct answer from the options given below:	(2) Regulatory functions	The actions described in the question – controlling insider trading, overseeing takeover bids, and imposing penalties – fall under the regulatory functions of SEBI (Securities and Exchange Board of India). SEBI’s role includes establishing and enforcing rules and regulations to maintain fairness and transparency in the securities market.
Q11: Financial management aims at choosing the best investment and financing alternatives by focusing on their costs and benefits. Its objective is to: (1) Increase the shareholders’ wealth (2) Decrease the shareholders’ wealth (3) Increase the shareholders’ capital (4) Decrease the shareholders’ capital Choose the correct answer from the options given below:	(1) Increase the shareholders’ wealth	The main objective of financial management is to maximize the value of the company, which directly enhances shareholders’ wealth. This goal is achieved by making optimal decisions regarding investment and financing alternatives that maximize the company’s returns.
Q12: A proper matching of funds requirements and their availability is sought to be achieved by: (1) Financial planning (2) Financial control (3) Capital budgeting (4) Investment decisions Choose the correct answer from the options given below:	(1) Financial planning	Financial planning involves forecasting future financial needs and determining how to meet those needs by aligning available funds with expected requirements. This ensures that funds are used efficiently and are available when needed.
Q13: Debt is ______ but is more risky for a business because the payment of interest and the return of principal is obligatory for the business. (1) Cheaper, risky (2) Cheaper, safe (3) Expensive, risky (4) Expensive, safe Choose the correct answer from the options given below:	(1) Cheaper, risky	Debt financing tends to be cheaper than equity financing because the interest on debt is tax-deductible. However, it comes with the risk of mandatory interest payments and principal repayment, which may put the business in financial distress if not managed properly.
Q14: “Coordination unifies unrelated interests into purposeful work activity.” Identify the nature of coordination. (1) Coordination is an all pervasive function (2) Coordination is a continuous process (3) Coordination ensures unity of action (4) Coordination integrates group efforts Choose the correct answer from the options given below:	(4) Coordination integrates group efforts	The statement emphasizes how coordination helps align different, unrelated interests into a collective effort towards achieving a common objective. This reflects how coordination integrates the efforts of different individuals or groups to work together efficiently.
Q15: Akash Industries has installed a waste recycling plant in its premises and does not dump their waste material anymore. This plant is providing employment to many people. Identify the objective of management which the company is achieving by doing the aforesaid activity. (1) Social objective (2) Economic objective (3) Personal objective (4) Growth Choose the correct answer from the options given below:	(1) Social objective	By installing a waste recycling plant and providing employment while also focusing on reducing waste, Akash Industries is addressing a social objective. This involves contributing to the welfare of society by promoting environmental responsibility and creating job opportunities.
Q16: “Management always works by keeping an end result or aim of the organisation. All activities of managers are directed towards the end result.” From the above statement, identify the feature of management. (1) Management is multidimensional (2) Management is continuous (3) Management is intangible (4) Management is a goal-oriented process Choose the correct answer from the options given below:	(4) Management is a goal-oriented process	The statement highlights the goal-directed nature of management, emphasizing that all managerial activities are focused on achieving a specific end result. This characteristic defines management as a goal-oriented process, where every action is aligned with the organization’s objectives.
Q17: The key position of top-level management is: (1) Managing Director (2) Production Manager (3) Marketing Manager (4) Plant Supervisor Choose the correct answer from the options given below:	(1) Managing Director	The Managing Director (MD) holds the highest position in the top-level management hierarchy. The MD is responsible for overseeing the overall strategic direction and operations of the company, while production managers, marketing managers, and plant supervisors hold lower levels of responsibility.
Q18: Match List-I with List-II. List-I (A) Intelligence test (B) Aptitude test (C) Personality test (D) Trade test List-II (I) Indicator of a person’s capacity to develop (II) Clues to a person’s emotions, values, etc. (III) Measure existing skills of the individual (IV) Indicator of a person’s learning ability and ability to make judgments Choose the correct answer from the options given below:	(2) (A) - (IV), (B) - (I), (C) - (II), (D) - (III)	The correct matching of the tests with their descriptions is as follows: • (A) Intelligence test (IV) Indicator of a person’s learning ability and ability to make judgments: Intelligence tests measure cognitive abilities, such as reasoning and learning capacity. • (B) Aptitude test (I) Indicator of a person’s capacity to develop: Aptitude tests assess a person’s potential to develop certain skills or abilities. • (C) Personality test (II) Clues to a person’s emotions, values, etc.: Personality tests provide insights into an individual’s emotional traits and personal values. • (D) Trade test (III) Measure existing skills of the individual: Trade tests evaluate an individual’s proficiency in specific job-related skills. Therefore, the correct answer is (2) (A) - (IV), (B) - (I), (C) - (II), (D) - (III).
Q19: Which of the following are advantages of functional structure of an organisation? (A) Leads to occupational specialisation. (B) Places less emphasis on organisational objectives. (C) Promotes coordination and control within a department. (D) Increases operational efficiency. Choose the correct answer from the options given below:	(3) (A), (C) and (D) only	In a functional organizational structure, the following advantages apply: • (A) Leads to occupational specialization: Employees within a function become specialists in their area, leading to higher expertise. • (C) Promotes coordination and control within a department: Functions that are grouped together make it easier to manage and coordinate activities. • (D) Increases operational efficiency: Specialization and clearer roles within a department contribute to more efficient operations. However, (B) Places less emphasis on organizational objectives is incorrect, as a well-managed functional structure should always emphasize the overall goals of the organization.
Q20: In the above case “Just Foodie” is using various variables of Marketing Mix. Identify the variable used in the following statement: “To make their products available to customers at right time, right place, they are also selling their products to grocery stores in addition to their own outlets.” (1) Product (2) Price (3) Promotion (4) Physical distribution Choose the correct answer from the options given below:	(4) Physical distribution	The statement highlights the physical distribution strategy used by “Just Foodie,” which involves making their products accessible through different retail channels (both their own outlets and grocery stores). This is a key aspect of the physical distribution element in the marketing mix.
Q21: Identify the element of the marketing mix in the following statement: “The taste, quality, and packaging are given utmost care.” (1) Product mix (2) Price mix (3) Promotion mix (4) Physical distribution mix Choose the correct answer from the options given below:	(1) Product mix	This statement emphasizes key product features such as taste, quality, and packaging, which are all part of the product mix in the marketing strategy.
Q22: “They are able to charge a higher price than their competitors.” Which element of the marketing mix is discussed in the statement? (1) Product mix (2) Price mix (3) Promotion mix (4) Physical distribution mix Choose the correct answer from the options given below:	(2) Price mix	The statement focuses on the pricing strategy, specifically the ability to charge a premium price compared to competitors, which is part of the price mix in the marketing strategy.
Q23: “To increase their sales, they are using different offers like free gifts, cash backs, etc. They are offering discounts to customers on various occasions.” Identify the marketing mix element from the above statement. (1) Product mix (2) Price mix (3) Promotion mix (4) Physical distribution mix Choose the correct answer from the options given below:	(3) Promotion mix	The statement describes various promotional activities like free gifts, cash backs, and discounts. These are all part of the promotion mix, which aims to boost sales and customer engagement.
Q24: “To increase their sales, they are using different offers like free gifts, cash backs, etc. They are offering discounts to customers on various occasions.” Which tool of the promotion mix is used in the given statement? (1) Advertisement (2) Sales promotion (3) Personal selling (4) Publicity Choose the correct answer from the options given below:	(2) Sales promotion	Free gifts, cash backs, and discounts are all examples of sales promotion techniques, which are used to encourage immediate purchases and stimulate short-term sales.
Q25: Identify the function of management highlighted in the above case. (1) Organising (2) Staffing (3) Directing (4) Planning Choose the correct answer from the options given below:	(4) Planning	The case highlights Indian Oil’s strategic initiatives such as global expansion and investment planning, indicating that the company is focused on the planning function of management. This includes defining goals, anticipating challenges, and formulating strategies to meet future demands.
Q26: “If the goals are well defined, employees are aware of what the organisation has to do and what they must do to achieve those goals.” Identify the significance of the managerial function highlighted in this statement. (1) Facilitates decision making (2) Reduces overlapping and wasteful activities (3) Reduces risks of uncertainty (4) Provides direction Choose the correct answer from the options given below:	(4) Provides direction	Clear goals provide employees with a sense of direction and purpose, guiding their efforts towards achieving organizational objectives. This reflects the managerial function of providing direction.
Q27: “Changes or events cannot be eliminated, but they can be anticipated and managerial responses to them can be developed.” Identify the significance of the managerial function highlighted in this statement. (1) Provides direction (2) Reduces risks of uncertainty (3) Reduces overlapping and wasteful activities (4) Facilitates decision making Choose the correct answer from the options given below:	(2) Reduces risks of uncertainty	The statement highlights the importance of planning to mitigate uncertainty. By anticipating potential changes and developing responses, management can reduce risks and prepare for unforeseen events.
Q28: “Policy formation serves as the basis of coordinating the activities and efforts of different divisions, departments, and individuals. It helps in avoiding confusion and misunderstanding.” Identify the significance of the managerial function highlighted in this statement. (1) Facilitates decision making (2) Reduces risks of uncertainty (3) Provides direction (4) Reduces overlapping and wasteful activities Choose the correct answer from the options given below:	(4) Reduces overlapping and wasteful activities	The statement emphasizes the role of policies in minimizing confusion and ensuring that resources are efficiently used. By providing a structured framework, policies help in reducing overlapping activities and wasteful efforts, leading to better coordination and use of resources.
Q29: “Manager can look into the future and make a choice from amongst various alternative courses of action.” Identify the significance of the managerial function highlighted in this statement. (1) Provides direction (2) Reduces risks of uncertainty (3) Reduces overlapping and wasteful activities (4) Facilitates decision making Choose the correct answer from the options given below:	(4) Facilitates decision making	The statement focuses on the decision-making process, which involves evaluating various alternatives and selecting the best course of action based on future projections and available information.
Q30: Identify the Principle of Management where Taylor pioneered the introduction of the method of scientific inquiry into the domain of management practice. (1) Science, not rule of thumb (2) Harmony not discord (3) Cooperation, not individualism (4) Development of each and every person to the greatest efficiency and prosperity Choose the correct answer from the options given below:	(1) Science, not rule of thumb	Frederick Winslow Taylor introduced the principle of using scientific methods to improve workplace efficiency. His approach replaced the traditional “rule of thumb” methods with systematic analysis and data-driven decision-making to optimize processes.
Q31: Match List-I with List-II on the basis of Management Principles: List-I List-II (A) Obedience to organisational rules (I) Unity of direction (B) One boss for every individual employee (II) Remuneration of employees (C) One head and one plan (III) Discipline (D) Remuneration should be just and equitable (IV) Unity of command Choose the correct answer from the options given below:	(4) (A) - (III), (B) - (IV), (C) - (I), (D) - (II)	The correct matching is: (A) Obedience to organisational rules (III) Discipline: Discipline refers to adherence to rules and regulations. (B) One boss for every individual employee (IV) Unity of command: Each employee should report to one boss. (C) One head and one plan (I) Unity of direction: Aligning efforts towards a single goal. (D) Remuneration should be just and equitable (II) Remuneration of employees: Fair compensation for employees.
Q32: The aim of which technique given by F.W. Taylor is to reduce a given line or a product to fixed types, sizes and characteristics? (1) Method study (2) Time study (3) Standardisation of work (4) Functional foremanship Choose the correct answer from the options given below:	(3) Standardisation of work	Standardisation of work is a technique developed by F.W. Taylor that establishes fixed procedures, sizes, and characteristics to reduce variations and improve efficiency. It leads to consistency and minimizes waste.
Q33: Match List-I with List-II on the basis of Management Principles: List-I (Meaning) List-II (Term) (A) Employees turnover should be minimised (I) Stability of personnel (B) Emphasises kindness and justice (II) Equity (C) Chain of authority and communication from top to bottom (III) Esprit de corps (D) Promotes team spirit (IV) Scalar chain Choose the correct answer from the options given below:	(3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)	The correct matching is: (A) Employees turnover should be minimised (I) Stability of personnel: A stable workforce reduces turnover. (B) Emphasises kindness and justice (II) Equity: Fairness and justice in treatment. (C) Chain of authority and communication from top to bottom (IV) Scalar chain: Defines the formal chain of authority. (D) Promotes team spirit (III) Esprit de corps: Fosters unity and teamwork.
Q34: Under which dimension of business environment is "Online Booking of Air Tickets" included? (1) Legal dimension (2) Economic dimension (3) Technical dimension (4) Social dimension Choose the correct answer from the options given below:	(3) Technical dimension	"Online Booking of Air Tickets" involves the use of technology, such as the internet and software systems, to facilitate and streamline booking processes. This falls under the technical dimension of the business environment.
Q35: Which of the following is an example of the economic environment? (1) Money supply in economy (2) Constitution of the country (3) Life expectancy (4) Population shifts Choose the correct answer from the options given below:	(1) Money supply in economy	The money supply is an economic factor that influences inflation, interest rates, and investment levels in the economy, making it an essential component of the economic environment.
Q36: Which of the following is an example of legal environment? (1) Death/Birth Ratio (2) Trade Union Act (3) Prevailing Political System (4) Public Debt Choose the correct answer from the options given below:	(2) Trade Union Act	The Trade Union Act is part of the legal environment, as it regulates labor relations and impacts business operations through laws and policies governing employees' rights and work conditions.
Q37: Which of the following does not characterise business environment? (1) Inter-related (2) External forces (3) Market orientation and product (4) Relativity Choose the correct answer from the options given below:	(3) Market orientation and product	Business environment is characterized by inter-related external forces and relativity. Market orientation and product focus relate more to business strategy than the environment itself.
Q38: Identify the correct sequence of steps under the Planning function: (A) Setting objectives (B) Identifying alternative courses of action (C) Developing premises (D) Evaluating alternative courses of action Choose the correct answer from the options given below:	(2) (A), (C), (B), (D)	The correct sequence for the planning function is: (A) Setting objectives (define goals), (C) Developing premises (establish assumptions), (B) Identifying alternative courses of action (explore options), and (D) Evaluating alternative courses of action (choose the best option).
Q39: Identify the correct sequence of Selection process: (A) Selection decision (B) Employment interview (C) Selection tests (D) Reference checking Choose the correct answer from the options given below:	(4) (C), (B), (D), (A)	The selection process typically follows these steps: (C) Selection tests (assess candidate skills), (B) Employment interviews (evaluate further), (D) Reference checking (verify candidate claims), and finally, (A) Selection decision (choose the best candidate).
Q40: "It is a joint programme of training in which educational institutions and business firms cooperate." Identify the method of training. (1) Vestibule training (2) Apprenticeship training (3) Internship training (4) Job rotation Choose the correct answer from the options given below:	(3) Internship training	Internship training is a collaborative program where educational institutions and businesses work together to provide students with real-world experience in their field of study, combining academic learning with practical exposure.
Q41: Match List-I with List-II on the basis of meaning and name of the concept: List-I List-II (A) Choosing the most appropriate candidate (B) Candidate is given an introduction to superiors (C) Learning the skills related to a job (D) Searching for prospective employees Choose the correct answer from the options given below:	(3) (A) - (I), (B) - (II), (C) - (IV), (D) - (III)	(A) Choosing the most appropriate candidate corresponds to (I) Selection, as it is the process of selecting the best candidate. (B) Candidate introduction corresponds to (II) Orientation, which helps new employees get familiar with their work. (C) Learning the skills corresponds to (IV) Training, the process to equip individuals with necessary job skills. (D) Searching for prospective employees corresponds to (III) Recruitment, the process of attracting candidates.
Q42: Which of the following is a process of incitement or inducing subordinates to act in a desired manner to achieve organisational goals? (1) Motivation (2) Supervision (3) Leadership (4) Communication Choose the correct answer from the options given below:	(1) Motivation	Motivation is the process of inspiring individuals to take actions that align with the goals of the organization, fostering a drive for achievement.
Q43: Find the correct sequence of needs as given by Maslow in his Need Hierarchy Theory: (A) Belongingness needs (B) Safety and Security needs (C) Self-actualisation needs (D) Esteem needs Choose the correct answer from the options given below:	(3) (B), (A), (D), (C)	Maslow's hierarchy starts with (B) Safety and Security needs, followed by (A) Belongingness needs, then (D) Esteem needs, and finally (C) Self-actualisation needs.
Q44: “____ is a process of influencing the behaviour of people by making them strive voluntarily towards achievement of organisational goals.” (1) Motivation (2) Supervision (3) Leadership (4) Communication Choose the correct answer from the options given below:	(3) Leadership	Leadership is the act of influencing and guiding others to achieve the goals of the organization, which may include motivation but encompasses a broader spectrum of influencing behavior.
Q45: Which of the following is not a limitation of Controlling? (1) Costly affair (2) Resistance from employees (3) Ensure order and discipline (4) Little control on external factors Choose the correct answer from the options given below:	(3) Ensure order and discipline	Controlling aims to ensure organizational goals are met, but "Ensure order and discipline" is not a limitation; rather, it is a key objective of the controlling function. The other options represent challenges or limitations in the controlling process.
Q46: Identify the correct sequence of Controlling process: (A) Analysing deviations (B) Measurement of actual performance (C) Setting up standards (D) Comparison of actual performance with standards Choose the correct answer from the options given below:	(4) (C), (B), (D), (A)	The controlling process follows this order: (C) Setting up standards, (B) Measuring actual performance, (D) Comparing actual performance with standards, and (A) Analyzing deviations to take corrective action.
Q47: “Only a 5% increase in labour cost may be more troublesome than a 15% increase in postal charges.” Identify the concept pointed out in the statement. (1) Deviation (2) Critical point control (3) Break-even analysis (4) Critical path method Choose the correct answer from the options given below:	(2) Critical point control	The statement illustrates critical point control, which focuses on the factors that have the most significant impact on business operations, like labor costs, even if the percentage increase is small.
Q48: Identify the function performed by Financial Market from the following statement: “Holders of assets can readily sell their financial assets through the mechanism of the financial market.” (1) Reduce the cost of transactions (2) Provide liquidity to financial assets (3) Facilitate price discovery (4) Mobilisation of savings and channellising them into the most productive uses Choose the correct answer from the options given below:	(2) Provide liquidity to financial assets	Financial markets provide liquidity by enabling the quick buying and selling of assets at market prices, ensuring ease of transaction without large price fluctuations.
Q49: If any of the parties are not satisfied by the order of ____, they can appeal against such order to the State Commission on the grounds of facts or law within a period of forty-five days from the date of order. (1) District Commission (2) State Commission (3) National Commission (4) Local Court Choose the correct answer from the options given below:	(1) District Commission	The appeal process allows dissatisfied parties to appeal to the State Commission within 45 days of the District Commission's order in consumer disputes.
Q50: Identify the importance of consumer protection discussed in the following lines — “Business organisations make money by selling goods and providing services to consumers. Thus, consumers form an important group among the many stakeholders of business and like other stakeholders, their interest has to be well taken care of.” (1) Moral justification (2) Business uses society’s resources (3) Social responsibility (4) Long-term interest of business Choose the correct answer from the options given below:	(3) Social responsibility	The statement reflects social responsibility, where businesses are responsible for protecting and ensuring the welfare of their consumers as part of their role in society.