CUET 2023 Answer Key Business Studies- Download Slot-wise Answer Key with Solutions PDF

- Statement (A): Efficiency and effectiveness have similar meanings in some contexts, but in management theory, they are often considered distinct.

- Statement (B): This is true because effectiveness refers to achieving goals, while efficiency refers to how well resources are used.

- Statement (C): Management is generally discussed with more than three dimensions.

- Statement (D): This is false because management often has more than three dimensions.

- Statement (E): Principles of management are often considered more flexible and adaptable compared to scientific principles.
Quick Tip: When studying management theories, focus on the specific definitions of terms like efficiency and effectiveness, as their meanings can vary based on context.

Business Environment is characterized by complexity due to various interrelated factors like political, economic, legal, and social influences. It is also relative as it differs from country to country or region to region, and the elements are highly inter-related, making it essential to understand the interconnected nature of external forces. Quick Tip: Remember the key features of Business Environment as: Complexity, Relativity, and Inter-relatedness — not certainty or static nature.

The correct order of the steps to set up a business is as follows:

1. Appraisal by the funding agencies (B)

2. Scanning the environment for entrepreneurial opportunities (D)

3. Assessment of the feasibility of the idea and preparation of the business plan (A)

4. Resource mobilization (C)

5. Development of the product/service idea (E)
Quick Tip: Remember that setting up a business involves understanding funding, evaluating ideas, and building a proper plan before moving on to execution.

Capital budgeting decisions are long-term investment decisions and are influenced by key financial metrics and project fundamentals. The relevant factors include:

Cash flow of project (B): Since capital budgeting evaluates future returns, cash flow is a primary determinant.
The rate of return (D): Determines the profitability of the investment.
The investment criteria involved (E): Includes techniques like NPV, IRR, Payback Period etc., which guide the investment decision.

Floatation cost and control considerations, although relevant in financing and strategic decisions respectively, do not directly affect capital budgeting. Quick Tip: Capital budgeting revolves around expected returns and financial viability, not administrative or incidental costs.

Consumer protection becomes essential when consumers are unaware or ignorant of their legal rights and redressal mechanisms. This lack of knowledge can lead to exploitation by sellers or service providers. Hence, the correct word to complete the sentence is "ignorance." Quick Tip: Consumer protection laws exist primarily to combat ignorance and empower buyers with awareness of their rights.

N/A Quick Tip: The distribution channel generally flows from production to end-user. Start with Manufacturer and end with Customer. Agents and Wholesalers are intermediaries to ease bulk distribution and reach.

N/A Quick Tip: Focus on logical flow: Motivation begins with a need and ends with goal achievement and tension reduction — not necessarily relaxation.

In marketing concepts:
- The Production concept (A) focuses on satisfying customer needs, which is related to I.

- The Product concept (B) emphasizes the quantity of product, corresponding to II.

- The Selling concept (C) is focused on aggressive selling techniques, hence matching III.

- The Marketing concept (D) addresses the quality of product, which aligns with IV. Quick Tip: Understanding marketing concepts helps in matching them with the correct business strategies. Review the key characteristics of each concept for better clarity.

The lines highlight that without planning, employees would lack coordination and the organisation would not achieve its goals. This corresponds to the importance of planning in providing direction for the workforce and guiding them towards achieving the organisation's objectives. Quick Tip: Remember, planning helps in setting clear objectives, aligning efforts, and providing direction to the team.

As per the Consumer Protection Act, 2019, the District Commission has jurisdiction over complaints where the value of goods or services does not exceed one crore rupees. Complaints exceeding this threshold are typically handled by the State Commission. Quick Tip: Remember, the District Commission handles complaints where the value of goods or services is up to one crore rupees. Anything above this threshold falls under the jurisdiction of the State Commission.

The Capital Structure of a company is determined by the proportion of debt and equity financing. The correct formula to calculate the capital structure is Debt/Equity, which indicates the ratio of borrowed funds (debt) to the funds contributed by the owners (equity). Quick Tip: Remember, Capital Structure = Debt/Equity is the key formula for understanding how a company is financed.

The requirement for candidates to clear a specified examination conducted by the Institute of Chartered Accountants of India highlights the importance of Professional Association in management as a profession. It shows that a recognized body governs the profession, ensuring the integrity and standards of practice. Quick Tip: The presence of a professional association ensures that the profession maintains high standards and governs the entry of new professionals.

The first five steps of the planning process are generally as follows:

1. Developing premises (A)

2. Identifying alternative courses of action (B)

3. Evaluating alternative courses (C)

4. Setting objectives (D)

5. Selecting an alternative (E)


Thus, the correct sequence is: C, D, B, E, A. Quick Tip: Understanding the sequence of planning steps is crucial for effective decision-making in management. Remember, it starts with defining objectives and ends with choosing the best course of action.

In management concepts:
- Unity of command (A) means there is only one boss for every individual employee, matching with III.

- Remuneration (B) refers to pay and compensation, which should be fair to both employees and the organisation, corresponding to I.

- Equity (C) implies fairness to all employees, aligning with IV.

- Decentralisation (D) is about the distribution of decision-making authority amongst many personnel, hence matching II. Quick Tip: Understanding key management principles can help in accurately matching the related concepts. Focus on the core objectives of each term.

In environmental concepts:
- Political environment (A) is related to changes in interest rate, inflation, and disposable income, matching IV.

- Economic environment (B) is associated with the general stability of elected government and its attitude towards business, corresponding to III.

- Social environment (C) focuses on the consumption and habits pattern of the household, aligning with I.

- Technological environment (D) deals with scientific improvements and innovations, which matches II. Quick Tip: When studying different types of environments in business, focus on how each environmental factor affects economic and social systems.

In the organising process:

- First, departmentalisation (C) takes place, where the tasks are divided into specific departments.

- Next, the division of work (D) follows, where work is further split into specific jobs.

- Then, the assignment of duties (E) takes place, where specific duties are given to individuals.

- After that, authority and reporting relationships (A) are established to define the responsibility and accountability of the individuals.

- Finally, identification of work (B) ensures that the work is recognized and understood within the organisation.
Quick Tip: The organising process flows logically from identifying and dividing the work, assigning responsibilities, and establishing authority and relationships. Always follow the order of the process for clear understanding.

The formal lines of authority that define the hierarchical structure in an organisation, from the highest rank to the lowest, are referred to as the "Scalar chain." This term was introduced by Henri Fayol and is an essential principle of management.
Quick Tip: In organisational theory, the scalar chain represents the clear, defined line of authority within a hierarchy. Understanding this helps in navigating management structures more effectively.

PERT (Program Evaluation and Review Technique) and CPM (Critical Path Method) are project management techniques that are more modern methods of controlling, rather than traditional ones. Statistical reports, breakeven analysis, and budgetary control are considered traditional methods of controlling in management. Quick Tip: For controlling in management, it's important to distinguish between traditional methods like reports and newer techniques such as PERT and CPM, which are used for more complex project management.

Entrepreneurship typically involves lawful and purposeful activity (A), low levels of risk (B), innovation (C), and organisation of production (E). Systematic activity (D) may not always be a characteristic of entrepreneurship in every context. Quick Tip: Understanding the key traits of entrepreneurship is essential. Focus on the aspects such as innovation and risk, as they define an entrepreneurial mindset.

Single-use plans are those that are used only once, and the combination of Project and Budget are often specific to particular projects or activities, making them single-use plans. Methods, procedures, rules, and programs tend to be ongoing and reusable. Quick Tip: Single-use plans are typically associated with one-time projects, so focus on options that include project-specific elements like budgets or activities.

The correct sequence for the controlling process is:
- First, setting performance standards (A).

- Then, measuring actual performance (B).

- After that, analysing deviations (C).

- Following this, taking corrective action (D).

- Finally, comparing actual performance with standards (E) to ensure that the objectives are met. Quick Tip: The controlling process is systematic and requires setting clear standards, measuring performance, identifying deviations, and taking corrective actions to keep the organisation on track.

Techniques of controlling include Ratio analysis (A), On the job training (C), Management audit (D), and Off the job training (E). PERT and CPM (B) are project management techniques and are not typically considered part of controlling methods.
Quick Tip: Controlling techniques in management often involve monitoring and improving ongoing processes, with methods such as ratio analysis, audits, and training being central to achieving control.

A comprehensive plan designed to accomplish an organisation’s objectives is referred to as a strategy. While policies, procedures, and rules guide actions, strategy is the overarching plan for achieving specific organisational goals. Quick Tip: In management, a strategy is the plan designed to achieve long-term success, while policies and procedures provide the framework for carrying out these plans.

- Fixed capital (A) is related to EBIT/interest (I), as it refers to long-term investments.

- Working capital (B) is connected with the proportion of debt in the capital structure (IV), which deals with short-term assets and liabilities.

- Interest coverage ratio (C) is related to investment in current assets (III), as it evaluates the company's ability to cover its interest expenses.

- Financial leverage (D) deals with the proportion of debt in the capital structure (II), indicating how much debt is used in the financing of the company. Quick Tip: In financial analysis, it's crucial to understand how different financial metrics and ratios are linked with various business operations, including capital structure and asset investment.

In the communication process, the steps occur in the following sequence:

1. The sender (B) initiates the communication.

2. The message (C) is created.

3. The message is then encoded (A).

4. The message is received (E).

5. Finally, the message is decoded (D) by the receiver to understand the information.
Quick Tip: In the communication process, always follow the logical order of sender, message creation, encoding, transmission, and decoding for effective communication.

The correct pair of elements of directing includes Co-ordination and Leadership (1), and Delegation and Communication (4). These pairs are fundamental to effective directing in management.

Motivation and Communication (2), and Supervision and Decentralisation (3) are important but are not directly paired as elements of directing. Quick Tip: When studying directing in management, focus on the roles of co-ordination, leadership, delegation, and communication as they are key to guiding and motivating employees effectively.

When a company issues new equity shares, it dilutes the ownership percentage of existing equity shareholders. This reduces their controlling power in the company because their proportionate ownership decreases. Quick Tip: The issuance of new equity shares is a common way to raise capital, but it also results in dilution of existing shareholders' control over the company.

Labelling is considered a part of the "Product" element of the marketing mix. It helps in identifying the product and provides important information about it, such as the brand, features, and usage instructions. Quick Tip: In the marketing mix, "Product" involves everything related to the product, including design, packaging, labelling, and branding.

Planning is not just for the long run; it also involves immediate and short-term goals. While planning is a mental exercise, futuristic, and involves decision-making, its scope is not limited to the long run alone. Quick Tip: In planning, it is important to consider both long-term and short-term goals as part of the overall strategy.

The essential elements of delegation include authority, responsibility, and accountability. Authority enables the person to make decisions, responsibility refers to the duty to perform tasks, and accountability ensures that the individual is answerable for the results. All three elements are essential for effective delegation. Quick Tip: In delegation, ensure that the person to whom you delegate tasks has both the authority to make decisions and the responsibility for carrying out the tasks. Accountability ensures they are answerable for the outcomes.

The marketing method used and pricing objective do not directly affect the cost of the product or its utility. However, the cost of the product, its utility, and the extent of competition all play an essential role in determining its price. Quick Tip: When pricing a product, focus on direct factors such as cost and utility. Marketing methods and objectives, while important, do not directly influence the product's intrinsic pricing.

The last step in the communication process is feedback. After the message has been sent, decoded, and understood, the receiver provides feedback to the sender, completing the communication loop. Quick Tip: Feedback is crucial for effective communication as it ensures that the message has been received and understood as intended.

- Consumer Protection Act (A) is related to Claim exceeds 10 crore (I), as it deals with large claims.

- District Forum (B) is connected with the settlement of claims exceeding 1 crore but not exceeding 10 crore (II), typically handling medium-sized claims.

- State Commission (C) is linked with being established in 1986 (III), which is when it came into effect.

- National Commission (D) deals with the settlement of claims up to 1 crore (IV), handling smaller claims. Quick Tip: In legal and financial contexts, understanding the structure of regulatory bodies and their responsibilities helps in identifying their role in resolving claims.

Delegation involves assigning authority, responsibility, and accountability. Centralisation, on the other hand, refers to the concentration of decision-making power at the top of the hierarchy, which is not part of delegation. Quick Tip: When studying delegation, remember that it involves distributing authority, responsibility, and accountability, whereas centralisation concentrates power at the top.

- Unclarified assumptions (A) relate to Organisational Barriers (I), as they create obstacles in communication within an organisation.

- Distrust (B) is connected to Personal Barriers (II), as it affects personal interactions and decision-making.

- Status (C) relates to Semantic Barriers (III), as status differences can lead to misinterpretation of messages.

- Lack of proper incentives (D) connects to Psychological Barriers (IV), since the absence of motivation affects mental engagement. Quick Tip: Understanding the psychological and personal barriers within organisations helps in breaking down communication gaps. Focus on how personal and organisational elements influence communication.

The correct sequence of the functions of management is:

1. Planning

2. Organising

3. Directing

4. Controlling

5. Staffing

Planning is the first function, followed by Organising to arrange resources. Then, Directing takes place to guide employees, followed by Controlling to ensure goals are met, and finally, Staffing to allocate appropriate personnel. Quick Tip: Always remember the logical flow of management functions. Planning sets the foundation, followed by organising and directing, with controlling ensuring the process stays on track.

Fayol's 14 principles do not include "Unstability of personnel" (C) or "Authority and responsibility" (A), both of which are not part of the principles outlined by Fayol. The principles include the idea of stable personnel but not instability. Quick Tip: When studying Fayol’s principles, focus on understanding the core concepts like authority, responsibility, and division of work, while excluding principles that contradict the foundations of organizational stability.

Delegation is the process in which a superior transfers authority to a subordinate to carry out specific tasks. This is typically a downward transfer of authority, not responsibility or any other form of transfer. Quick Tip: In delegation, authority is transferred downward from superiors to subordinates to carry out tasks, while responsibility remains with the superior.

Method study involves analysing the sequence of operations and arrangement of work processes, which aligns with the description of Cross Ltd.'s approach. It ensures that work processes are carried out in the most efficient manner. Quick Tip: Method study focuses on improving the efficiency of operations by studying the best methods and sequences of tasks, crucial for assembly line production.

"Esprit De Corps" refers to the sense of unity and teamwork within an organization. By replacing "I" with "We" in communication, the manager promotes a sense of collective effort, which is aligned with the principle of "Esprit De Corps." Quick Tip: Fostering team spirit and unity within an organization is crucial for enhancing employee morale and overall productivity.

The method described in the passage, where a company prints a prospectus to make a direct appeal to investors, is known as "Offer through prospectus." This method is used when a company offers its shares directly to the public. Quick Tip: In primary market offerings, an "Offer through prospectus" involves issuing shares to the public with a detailed document outlining the terms of the offer, financial information, and other important details.

The passage describes a situation where brokers are invited to buy shares at an enbloc value, which is characteristic of "Private placement." In this method, shares are sold to a small group of investors, usually institutional investors. Quick Tip: In private placements, companies sell securities to a select group of investors rather than the general public. It is typically used for raising capital quickly.

The passage describes a situation where shares are offered to a select group of investors, specifically institutional investors. This aligns with the method of "Private placement," where shares are sold to a small group of investors, typically without a public offering. Quick Tip: In private placement, the company raises capital by selling securities directly to a small group of selected investors, usually institutional ones.

The method described in the passage, where a company prints a prospectus to make a direct appeal to investors, is known as "Offer through prospectus." This method involves making a public offering of shares, which is described in the passage. Quick Tip: An "Offer through prospectus" involves issuing a detailed document outlining the terms of the offer, financial information, and other essential details to the public for share offerings.

The passage describes methods used in the primary market, where new securities are issued for the first time to investors. This process involves the issuance of new shares, making option (1) the correct choice. Quick Tip: The primary market is where new securities are issued for the first time, whereas the secondary market involves the trading of existing securities.

In the passage, it is mentioned that Lenovo India uses its referral system where employees recommend candidates. This method of recruitment is known as "Recommendations of Employees." Quick Tip: Employee referral programs are effective sources of recruitment, as they encourage current employees to bring in qualified candidates from their network.

The passage describes a process where an employee is shifted from one job to another within the organization, which is characteristic of "Transfers," a common source of internal recruitment. Quick Tip: Internal recruitment can be through transfers, where employees are moved to different roles or departments within the same company.

The passage discusses methods of recruitment and mentions the use of unsolicited candidates. Casual callers refer to candidates who apply on their own without any invitation, and organizations keep a database for such applicants. Quick Tip: Casual callers are candidates who apply for jobs without being specifically invited by the organization. Many organizations maintain databases of such unsolicited applicants.

In the context of the passage, "Promotions" is an internal source of recruitment. It involves selecting candidates within the company for higher roles or positions. Quick Tip: Internal sources of recruitment include promotions, transfers, and employee referrals. Promotions help employees grow within the company.

Transfers are considered an internal source of recruitment, as they involve moving employees within the organization. The other options are external sources of recruitment. Quick Tip: External sources of recruitment include methods like advertisements, labour contractors, and direct recruitment from outside the organization.