CBSE SQP 2023-24

The Board of directors of Medex Pharma Ltd. decided to issue debentures worth Rs 40 lakhs in order to finance a major Research and Development project. This would increase the Debt Equity ratio from 1:1 to 2:1.However, at the same time it would increase the Earnings per share.

The reason that will justify the above situation is:

• Unfavourable financial leverage, as the financial risk will be higher

• Unfavourable financial leverage, as return on investment is lower than the cost of debt.

• Favourable financial leverage as debt is easily available

• Favourable financial leverage, as return on investment is higher than cost of debt

Some employees have been assigned the job of measuring the output in an objective and reliable way. They are applying different techniques for achieving this aim. Some of these are personal-observation, sample-checking etc. They are also keeping the units of measurement same as that of the units

in the standards. Name the step of ‘Controlling process applicable in the above paragraph

• Analysing deviations

• Comparing actual performance with standards

• Establishing standards

• Measurement of actual performance

Statement I: For products requiring long term storage like agricultural products, the warehouses are located near to the market.

Statement II: Higher the level of inventory, higher will be the level of service to customers but the cost of carrying the inventory will also be high.

Choose the correct option from the following:

• Statement I is true and II is false

• Statement II is true and I is false

• Both the statements are true

• Both the statements are false

Mr. Vivek is working as the General Manager of Oshin Hotels Ltd. Mr. Vivek observed that Government was taking a special interest in the Tourism industry as this sector is an important source of foreign exchange and employment promotion. On the basis of this news, the company decided to set up hotels at several tourist places. Oshin Hotels Ltd. established 50 hotels before other companies considered this issue. Very soon, this brand Oshin Hotels Ltd. became well known in the market.

Identify the importance of business environment described here.

• It enables the firm to identify opportunities and getting the first mover advantage

• Statement II is true and I is falseIt helps the firm to identify threats and early warning signals

• It helps in tapping useful resources

• It helps in improving performance

Name the function of management that acts as a means for translating plans into action

• Planning

• Directing

• Organising

• Controlling

STATEMENT I: Electronic holdings can be converted into physical certificates with the process of dematerialisation.

STATEMENT II: There is no danger of theft, loss or forgery of share certificates in dematerialisation.

Choose the correct option from the following:

• Statement I is true and II is false

• Statement II is true and I is false

• Both the statements are true

• Both the statements are false

‘Pace.’ is a reputed Chartered Accountant firm which renders services to big MNC’s. The Chartered Accountants of the firm are required to travel to Delhi and NCR for which they use company’s cars. The firm decided to convert its Petrol cars to Electric cars in order to improve the quality of life of people. Identify the dimensions of business environment.

• Political and Legal environment

• Legal and Social environment

• Technological and Political environment

• Social and Technological Environment

Choose the incorrect statement about pricing objectives as a factor affecting the price of a product.

• If a firm's objective is to maximize profits in the short run, it should charge maximum price for its products

• If a firm's objective is to capture market share, it should keep low price of its product.

• If a firm wants to attain product quality leadership, it should charge lower prices.

• If a firm is facing problems in survival due to stiff competition, it may offer discount on its products.

Read the following statements: Assertion (A) and Reason(R). Choose the correct alternative from those given below:

ASSERTION (A): Management is concerned with efficient use of resources.

REASONING (R): For management both efficiency and effectiveness need to be balanced.

Alternatives:

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

• Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A)

• Assertion (A) is true but Reason (R) is False

• Assertion (A) is False but Reason (R) is True

Concentration of decision making functions at the apex of management hierarchy is called __________

• Decentralisation

• Delegation

• Organisational structure

• Centralisation