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Assertion Reason-Based MCQs

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• PRINCIPLES OF MANAGEMENT | CHAPTER 2 | BUSINESS STUDIES | CLASS 12 | MOST IMPORTANT MCQs
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assertion and reason questions class 12 business studies chapter 1

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assertion and reason questions class 12 business studies chapter 3

assertion and reason questions class 12 business studies chapter 4

assertion and reason questions class 12 business studies chapter 5

assertion and reason questions class 12 business studies chapter 6

assertion and reason questions class 12 business studies chapter 7

assertion and reason questions class 12 business studies chapter 8

assertion and reason questions class 12 business studies chapter 9

assertion and reason questions class 12 business studies chapter 10

assertion and reason questions class 12 business studies chapter 11

assertion and reason questions class 12 business studies chapter 12

ASSERTION AND REASONING QUESTIONS (ARQ)
Q.No. Assertion and Reasoning
Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?

1)
Assertion (A) Increase in technology will benefit in expansion of business.
Reason (R) Social environment for business provides freedom of choice to
consumer.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

2 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) The internal factors are generally regarded as controllable factors.
Reason (R) Since, the company has control over internal factors
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

3 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) Desire competition is generally very high in countries characterised
by limited disposable incomes.
Reason (R) In competitive world the firms has to compete, not only the other
firms which market the same or similar products, but also all those who compete
for the discretionary income of the consumer.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

.4 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) Economic environment includes the social forces like customs and
traditions.
Reason (R) Reserve bank of India is the key regulator of county’s economic
environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

5 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) High intensity of competitive rivalry can make an industry more
competitive and decrease profit potential for the existing firms.
Reason (R) Industry with excess production capacity will have greater rivalry
among competitors.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

6 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) Business environment does not affect much the decision-making of
the companies.
Reason (R) Business environment is related to all external forces outside the
organisation.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

7 Direction: In the questions given below are two statements labelled as Assertion
and Reason (R). In the context of the two statements, which one of the following is
correct?
Assertion (A) Environmental understanding provide enough information
regarding the need of consumers.
Reason (R) Environmental understanding is not an early warning system.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

8 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A)
Reason (R)
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

9 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A) The image and brand equity of the company matters a lot in raising
finance forming joint ventures and other alliance.
Reason(R) The main motive of any business should be wealth maximisation.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

10 Direction: In the questions given below are two statements labelled as Assertion
(A) and Reason (R). In the context of the two statements, which one of the
following is correct?
Assertion (A): Business environment is the sum total of all the external forces.
Reason (R): The different elements of business environment are closely interrelated.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

11 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Management is required to remain highly cautious, alert and
adaptable.
Reason (R): The business environment is dynamic in nature.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A).
(b) both assertion(A)and reason(R)are true and assertion (R )is not the correct
explanation of assertion(A)
(c) Assertion (A) is True but Reason (R) is False.
(d)Assertion (A) False but Reason (R) is True.

12 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment differs from country to country and even
region to region.
Reason (R): Business environment consists of numerous interrelated and dynamic
forces.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

13 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Political factors play a major role in shaping the environment, in
which business firms operate.
Reason (R): Political instability builds up confidence among the business people to
invest in the long term projects.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

14 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business Environment is largely uncertain.
Reason (R): It is very difficult to predict future happenings
Alternatives:

(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d} Assertion (A) is False but Reason (R) is True.

15 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Timely understanding of Business Environment helps to make
suitable changes in the organisation.
Reason (R): A firm gets various resources or inputs from its business
environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

16 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): A company, which is conscious about the changes of business
environment, can take better advantage of opportunities instead of losing them to
competitors.
Reason (R): External environment provides numerous opportunities for business
units.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

17 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Equal pay to male and female workers for equal work is an
example of social environment.
Reason (R): Analysis and understanding of social environment is important as it
determines the products, services and standards of conduct that are acceptable to
society.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

18 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment is aggregative in nature.
Reason (R): Business environment is the sum total of all things external to
business firms (Totality of external forces)
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

19 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Social, political, legal and technological conditions are the specific
forces of business environment.
Reason (R): They have impact on all business enterprises and. thus may affect an
individual firm only indirectly.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

20 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment is dynamic.
Reason (R): It becomes easy to comprehend at once what exactly constitutes a
given environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

21 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment is a complex phenomenon.
Reason (R): It is relatively easier to understand in parts but difficult to grasp in
its totality;
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

22 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Each business firm is not an island unto itself; it exists, survives
and grows within the context of the element and forces of its environment.
Reason (R): A good understanding of environment by business managers enables
them not only to identify and evaluate, but also to react to the forces external to
their firms.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

23 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment helps in improving performance.
Reason (R): Enterprises that continuously monitor their environment and adopt
suitable business practices are the ones which not only improve their present
performance but also continue to succeed in the market for a longer period.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

24 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Economic environment refers to all the forces and factors which
directly influence the economy of your country.
Reason (R): Economic environment consist of gross domestic product, national
income at national level and per capita level, profit earning rate, productivity and
employment rate, monetary and fiscal policy of the government, etc.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

25 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Social environment consist of the customs and traditions of the
society in which business is existing.
Reason (R): High inflation rate set as constraint as they increase the cost of
production.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

26 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): The political environment has immediate and great impact on the
business transactions so businessmen must scan this environment very carefully.
Reason (R): The business man has to make changes in his organisation according
to the changing factor of political environment.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

27 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Technological environment includes forces related to scientific
improvements and innovations which provide new ways of producing goods and
services and new way of operating business.
Reason (R): Import and export of technology is important for a nation to develop.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

28 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment cannot be predicted. It is highly uncertain
and unpredictable.
Reason (R): Business environment keeps on changing. Sometimes there is a
change in technology, tastes and preferences of consumers, etc.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

29 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Business environment is very complex.
Reason (R): it helps the firm to identify threats and early warning signals.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

30 Read the following statements: Assertion and Reason. Choose one of the correct
alternatives given below:
Assertion (A): Study of business Environment helps in coping with rapid changes.
Reason (R): Changes in Business environment affects all firms in the same way.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct
explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the
correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True

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• PRINCIPLES OF MANAGEMENT | CHAPTER 2 | BUSINESS STUDIES | CLASS 12 | MOST IMPORTANT MCQs
• CBSE Sample Paper 2022 23 Class 12 PDF Economics
• CBSE Sample Paper Class 12 2022-23 Accountancy
• CBSE Sample Paper 2022 23 Class 12 PDF Business Studies
• Class 12: Complete Syllabus in One Shot – Business Studies
• Business Studies One Shot Lectures Class 12
• Last 10 Year Question Paper Accountancy Class 12th CBSE Pdf
• Last 10 Years Question Paper of CBSE Class 12 Economics
• last 10 Year’s Question Paper of CBSE class 12 Business Studies 2011-22
• Previous 10 Year’s Question Papers Chapter Wise of CBSE class 12 Business Studies
• Business Studies | CBSE 12 | Management | Bharat Anuragi | Video Lectures | live streamed