CUET UG Business Studies Test 2- Objectives and Importance of Management -

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CUET UG Business Studies Test 2- Objectives and Importance of Management

⏱️ 30 Minutes

❓ 20 Questions

📌 Answers are locked once submitted — results and explanations appear at the end.

CUET UG Business Studies Test 2- Objectives and Importance of Management

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QUESTION 1 OF 20

EcoTech Inc. has recently launched a new product line. Due to high initial production costs, the company decides its primary goal for the year is simply to earn enough revenue to cover these costs without focusing on profit margins yet. Which objective is EcoTech prioritizing?

Answer Review

1 EcoTech Inc. has recently launched a new product line. Due to high initial production costs, the company decides its primary goal for the year is simply to earn enough revenue to cover these costs without focusing on profit margins yet. Which objective is EcoTech prioritizing?

A Growth

B Expansion

C Profit

D Survival

💡 Short Explanation

Survival is the most basic economic objective. It focuses on maintaining a presence in the market. Revenue must at least equal the total costs incurred.

✅ Correct Answer Explanation

�� In the early stages of a product launch or during difficult market conditions, a business prioritizes survival. According to NCERT, management must strive to earn enough revenues to cover costs to ensure the organization's existence. EcoTech's decision to focus solely on covering high initial costs without seeking a surplus (profit) is the definition of a survival objective.

❓ Why Other Options Are Incorrect

Option A → Growth involves increasing the scale of operations (sales, employees, etc.) and requires more than just covering costs.
Option B → Expansion is a form of growth, typically involving geographic or product line widening.
Option C → Profit is the surplus earned over and above the costs; EcoTech has explicitly deferred this focus.

🎯 Strategy

Used: Contextual/Tonal Matching Application: The scenario describes the baseline financial goal of "covering costs," which matches the NCERT definition of survival. Final Logic: Survival is the prerequisite stage where revenue equals cost before moving toward profit.

🧠 Memory Trick

S-C: Survival = Costs covered.

📚 Nature and Significance of Management – Topic: Organisational Objectives – Page 10

2 Assertion (A): Mere survival is not enough for a business; management has to ensure that the organisation makes a profit.
Reason (R): Profit is essential for covering costs and risks of the business, providing a vital incentive for successful operations.

A Both A and R are true and R is the correct explanation of A.

B Both A and R are true but R is not the correct explanation of A.

C A is true but R is false.

D A is false but R is true.

💡 Short Explanation

Survival is the start, but profit is the goal. Profit acts as a reward for taking business risks. It provides the necessary funds for future needs.

✅ Correct Answer Explanation

�� Assertion (A) is true because a business cannot exist indefinitely on a break-even basis; it must grow and provide returns. Reason (R) is true and correctly explains the assertion by identifying profit as the "incentive" and "risk cover" required for an organization to be considered successful and viable in the long run.

❓ Why Other Options Are Incorrect

Option B → R is the direct justification for A; without the incentive of profit, there is no reason to move beyond mere survival.

Option C & D → Both statements are fundamentally accurate principles of business management.

🎯 Strategy

Used: Substitution Application: Use "Because" between the statements. "Survival is not enough because profit is the essential incentive and risk cover." The logic holds perfectly. Final Logic: Profit is the logical successor to survival because it provides the means for stability and growth.

🧠 Memory Trick

No Profit, No Future.

📚 Nature and Significance of Management – Topic: Organisational Objectives – Page 10

3 Which of the following is NOT an indicator that a business is successfully fully exploiting its growth potential?

A Increase in the number of products

B Increase in the number of employees

C Decrease in capital investment

D Increase in sales volume

💡 Short Explanation

Growth represents a positive change in scale. It is measured by volume, headcount, and diversification. Capital investment must increase to support larger operations.

✅ Correct Answer Explanation

�� Growth is measured by an increase in various quantitative parameters. A decrease in capital investment usually indicates downsizing, liquidation, or stagnation, rather than the exploitation of growth potential. Therefore, it is the only option that does not serve as an indicator of growth.

❓ Why Other Options Are Incorrect

Option A → Diversifying into more products is a clear sign of growth.
Option B → A larger workforce usually indicates an increase in the scale of work.
Option D → Higher sales volume is the most common indicator of market growth.

🎯 Strategy

Used: Odd One Out Application: Options A, B, and D all describe "increases," while C describes a "decrease." Final Logic: Growth is synonymous with expansion and addition, not reduction in investment.

🧠 Memory Trick

Growth = UP (Sales, People, Money, Products).

📚 Nature and Significance of Management – Topic: Organisational Objectives – Page 10

4 Consider the following statements regarding development and growth:
Statement I: A business needs to add to its prospects in the short run to ensure permanent survival.
Statement II: To remain in the industry, management must exploit fully the growth potential of the organisation.

A Both Statement I and II are true.

B Statement I is true, but Statement II is false.

C Statement I is false, but Statement II is true.

D Both Statement I and II are false.

💡 Short Explanation

Growth is a long-run objective. Short-run focus is usually on survival and profit. Continuous growth is necessary to stay relevant in a competitive industry.

✅ Correct Answer Explanation

�� Statement I is false because growth (adding to prospects) is a long-run objective, not a short-run one; survival is the immediate priority. Statement II is true because, in a competitive environment, an organization must grow and adapt to remain a player in the industry over time.

❓ Why Other Options Are Incorrect

Option A, B, & D → These options fail because they do not recognize that "prospects in the long run" is the correct terminology for growth.

🎯 Strategy

Used: Dimensional/Unit Analysis Application: Check the "Time Dimension." Growth = Long Run. Survival = Short Run. Final Logic: The error in Statement I is purely the time frame ("short run").

🧠 Memory Trick

Growth is a Marathon (Long Run), not a Sprint.

📚 Nature and Significance of Management – Topic: Organisational Objectives – Page 10

5 Match the organisational actions with their respective objective types:

List 1	List 2
1. Social Responsibility	A. Offering competitive salaries and peer recognition
2. Stakeholder Balance	B. Increasing the sales volume and capital investment
3. Personnel Objectives	C. Fulfilling obligations towards shareholders, customers, and government
4. Growth Objectives	D. Using environmental friendly methods of production

A 1-D, 2-C, 3-A, 4-B

B 1-C, 2-D, 3-B, 4-A

C 1-A, 2-B, 3-D, 4-C

D 1-B, 2-A, 3-C, 4-D

💡 Short Explanation

Social = Environment/Society. Stakeholders = All interested groups. Personnel = Staff needs. Growth = Expansion metrics.

✅ Correct Answer Explanation

�� 1-D: Social responsibility focuses on environmental protection and community. → 2-C: Stakeholder balance involves meeting the needs of external and internal groups like govt and shareholders. → 3-A: Personnel objectives specifically target employee needs like salary and recognition. → 4-B: Growth objectives are identified by sales volume and investment increases.

❓ Why Other Options Are Incorrect

Option B → Misaligns Social (1) with Stakeholders (C).
Option C → Misaligns Social (1) with Personnel (A).
Option D → Misaligns Social (1) with Growth (B).

🎯 Strategy

Used: Option Grouping Application: Pair 3-A (Personnel = Salary) and 4-B (Growth = Sales). Only Option A follows this logic. Final Logic: Matching specific employee benefits to personnel objectives is the quickest path to the correct answer.

🧠 Memory Trick

Staff-Salary / Grow-Sales.

📚 Nature and Significance of Management – Topic: Objectives of Management – Page 9-11

6 ITC's E-Choupal initiative provided farmers in rural India with a direct marketing channel, eliminating wasteful handling. This initiative is a prime example of an organisation prioritizing:

A Personnel growth objectives

B Corporate social responsibility

C Strict profit maximization

D Rapid expansion objectives

💡 Short Explanation

CSR involves benefiting the community while doing business. Providing infrastructure (digital Choupal) is a social contribution. It fulfils the obligation toward the underprivileged or rural sections.

✅ Correct Answer Explanation

�� The E-Choupal initiative is a classic CSR case. It creates economic value for "various constituents of society" (farmers) by using technology to improve their livelihood. This falls under the "Social Objectives" of management, which include creating employment and providing amenities to society.

❓ Why Other Options Are Incorrect

Option A → This would focus on ITC's internal employees, not the farmers.
Option C → Eliminating wasteful handling saves money, but the primary driver of this specific model is social development and farmer empowerment.
Option D → While ITC expanded, the nature of E-Choupal is fundamentally community-centric.

🎯 Strategy

Used: Contextual/Tonal Matching Application: Helping "farmers in rural India" matches the social objective of serving the "community" and "underprivileged." Final Logic: Projects that empower external societal groups are categorized as social objectives.

🧠 Memory Trick

External Help = Social.

📚 Nature and Significance of Management – Topic: Social Objectives – Page 11

📄 Passage

"Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher level needs such as personal growth and development."

Based on the passage, how is the need for employee satisfaction through peer recognition categorized?

A As a financial need

B As a higher level need

C As a social need

D As a basic survival need

💡 Short Explanation

People have a hierarchy of needs. Social needs involve interaction and status within a group. Peer recognition is a social interaction outcome.

✅ Correct Answer Explanation

�� The passage explicitly categorizes "social needs such as peer recognition." This relates to an employee's desire to be respected and acknowledged by their colleagues, fulfilling their requirement for a sense of belonging and status within the workgroup.

❓ Why Other Options Are Incorrect

Option A → Financial needs are restricted to money and perks.
Option B → Higher-level needs in the text are defined as "personal growth and development."
Option D → "Basic survival need" is not a category used in this specific passage.

🎯 Strategy

Used: Contextual/Tonal Matching Application: The text directly links the words "social needs" with "peer recognition." Final Logic: Direct textual evidence provides the categorization.

🧠 Memory Trick

Peers = People = Social.

📚 Nature and Significance of Management – Topic: Personnel Objectives – Page 11

📄 Passage

"Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. They all become part of the organisation to satisfy their diverse needs. These vary from financial needs such as competitive salaries and perks, social needs such as peer recognition and higher-level needs such as personal growth and development."

According to the passage, satisfying the diverse needs of employees is vital. Which specific need does offering competitive salaries address?

A Social needs

B Financial needs

C Higher level needs

D Peer recognition needs

💡 Short Explanation

Salaries are the primary economic reward for work. They fall under the lowest/basic level of organizational reward. They are categorized as "financial" in the provided text.

✅ Correct Answer Explanation

�� The passage states that diverse needs "vary from financial needs such as competitive salaries and perks." Therefore, salary is a direct fulfillment of the financial requirement an employee has for joining an organization.

❓ Why Other Options Are Incorrect

Option A → Social needs are about recognition and belonging.
Option C → Higher-level needs are about self-actualisation and growth.
Option D → Peer recognition is a specific social need, not a salary-based one.

🎯 Strategy

Used: Contextual/Tonal Matching Application: The word "salaries" is explicitly linked to "financial needs" in the second sentence of the passage. Final Logic: Monetary compensation is the definition of a financial need in management.

🧠 Memory Trick

Finance = Money = Salary.

📚 Nature and Significance of Management – Topic: Personnel Objectives – Page 11

9 Arrange the following groups in the order they are mentioned in the text as stakeholders whose interests must be considered by management:
1. Government
2. Employees
3. Shareholders
4. Customers

A 3, 2, 4, 1

B 1, 2, 3, 4

C 2, 4, 1, 3

D 4, 3, 2, 1

💡 Short Explanation

NCERT lists stakeholders in a specific order when defining organizational objectives. The sequence moves from owners to internal staff to external consumers to the state.

✅ Correct Answer Explanation

�� In the NCERT text under Organisational Objectives, it is stated that management must "consider the interests of all stakeholders, shareholders (3), employees (2), customers (4) and the government (1)." This specific sequence matches Option A.

❓ Why Other Options Are Incorrect

Option B, C, & D → These represent random arrangements that do not reflect the specific sequence provided in the standard textbook definition.

🎯 Strategy

Used: Contextual/Tonal Matching Application: Recall the verbatim list from the "Organisational Objectives" section of Chapter 1. Final Logic: The textbook lists stakeholders starting with the owners (shareholders) and ending with the regulator (government).

🧠 Memory Trick

S-E-C-G (Shareholders-Employees-Customers-Government).

📚 Nature and Significance of Management – Topic: Organisational Objectives – Page 9

10 The main objective of balancing stakeholder interests is to utilize human and material resources to the maximum possible advantage. This fundamentally fulfils the: Options:

A Economic objectives of a business

B Environmental objectives of a business

C Personal objectives of the management

D Political objectives of the society

💡 Short Explanation

Organisational objectives are primarily economic. They aim to optimize resource usage. Maximizing advantage leads to survival, profit, and growth.

✅ Correct Answer Explanation

�� "Organisational Objectives" are also known as the Economic Objectives of a business. Management is tasked with utilizing resources (human and material) to the maximum possible advantage to ensure the three economic goals: Survival, Profit, and Growth.

❓ Why Other Options Are Incorrect

Option B → Environmental objectives are a subset of social objectives.
Option C → Personal objectives focus on the individuals, not the "maximum advantage" of the total resources.
Option D → Management is not concerned with political objectives; it is an economic organ of society.

🎯 Strategy

Used: Substitution Application: In NCERT, "Organisational Objectives" and "Economic Objectives" are used interchangeably to describe the utilization of resources. Final Logic: Resource optimisation is the core of economic activity in business.

🧠 Memory Trick

Organisational = Economic.

📚 Batch 2: Questions 11–20

11 Assertion (A): Management is required not for itself but for achieving the goals of the organisation. Definition: The task of a manager is to give a common direction to the individual effort in achieving the overall goal.

A Both Assertion and Definition are accurate and conceptually related.

B Assertion is accurate, but the Definition is inaccurate.

C Assertion is inaccurate, but the Definition is accurate.

D Both Assertion and Definition are inaccurate.

💡 Short Explanation

Management is a tool, not an end. It exists to facilitate group achievement. Direction is the mechanism for this achievement.

✅ Correct Answer Explanation

�� The Assertion is a standard management principle: management has no meaning without an organizational goal to pursue. The Definition provided accurately describes how this is done—by providing a "common direction." Because the definition explains the "how" of the "why" in the assertion, they are conceptually related.

❓ Why Other Options Are Incorrect

Option B, C, & D → Both statements are verbatim or conceptual summaries of the "Importance of Management" section in NCERT and are factually correct.

🎯 Strategy

Used: Contextual/Tonal Matching Application: The assertion addresses the purpose of management; the definition addresses the process. They fit together perfectly. Final Logic: Management's value is derived entirely from the success of the group goals it helps achieve.

🧠 Memory Trick

Manager = Compass (Direction).

📚 Nature and Significance of Management – Topic: Management helps in achieving group goals – Page 12

12 Which of the following is NOT an outcome of a manager effectively directing the efforts of individuals?

A Achieving group goals

B Securing unity of action

C Creating overlapping efforts and chaos

D Giving a common direction

💡 Short Explanation

Directing synchronizes efforts. Efficiency requires the elimination of waste. Chaos is a sign of management failure, not effective directing.

✅ Correct Answer Explanation

�� Effective management ensures unity of action and common direction. "Overlapping efforts and chaos" are the exact problems that management is designed to solve. If a manager is effective, these negative traits will be replaced by order and goal-oriented movement.

❓ Why Other Options Are Incorrect

Option A, B, & D → These are all positive results of the "Directing" function and the "Importance of Management" as per NCERT.

🎯 Strategy

Used: Odd One Out Application: A, B, and D are positive outcomes. C is a negative outcome. Final Logic: Effective management is the antidote to chaos, not the cause.

🧠 Memory Trick

Management = Order.

📚 Nature and Significance of Management – Topic: Importance of Management – Page 12

13 A manager at a manufacturing plant decides to double the workforce shifts to meet a 5000-unit target due to frequent power failures. The target is met, but labour and electricity costs skyrocket. What decision outcome describes this scenario?

A The manager was efficient but not effective.

B The manager was both effective and efficient.

C The manager was effective but ignored cost reduction efficiency.

D The manager achieved a productivity increase without effectiveness.

💡 Short Explanation

Effective = Target met (on time). Efficient = Cost minimized (low resource use). Meeting a goal at any cost is effective but inefficient.

✅ Correct Answer Explanation

�� The manager was effective because the 5000-unit target was achieved (the "end" was reached). However, the manager was inefficient because the "means" (costs of labor and electricity) were not managed correctly, leading to "skyrocketing" expenses. Efficiency requires doing the task at the minimum cost.

❓ Why Other Options Are Incorrect

Option A → Being efficient would mean costs were low, which they weren't.
Option B → High costs preclude efficiency.
Option D → Effectiveness was clearly achieved as the target was met.

🎯 Strategy

Used: Dimensional/Unit Analysis Application: Target Met? Yes (Effective). Low Cost? No (Inefficient). Final Logic: Effectiveness is about results; efficiency is about resources.

🧠 Memory Trick

Effective-End / Efficient-Expense.

📚 Nature and Significance of Management – Topic: Effectiveness vs Efficiency – Page 3

14 Consider the following statements about productivity: Statement I: The aim of a manager is to reduce costs and increase productivity. Statement II: This productivity increase is achieved solely through the controlling function of management.

A Both Statement I and II are true.

B Statement I is true, but Statement II is false.

C Statement I is false, but Statement II is true.

D Both Statement I and II are false.

💡 Short Explanation

Managers aim for efficiency (low cost) and effectiveness (high output). Productivity is a result of all management functions combined. Controlling is only the final step of the process.

✅ Correct Answer Explanation

�� Statement I is correct; reducing costs and increasing productivity is the essence of efficiency. Statement II is false because productivity is increased through the integration of all functions—planning, organizing, staffing, directing, and controlling—not "solely" through one.

❓ Why Other Options Are Incorrect

Option A, C, & D → These are wrong because they fail to see that management is a "composite" process.

🎯 Strategy

Used: Extreme Word Filter Application: The word "solely" in Statement II is an extreme qualifier that usually denotes an incorrect statement in management theory. Final Logic: Productivity is the result of the entire POSDC cycle, not just the last step.

🧠 Memory Trick

Productivity = All 5 Functions.

📚 Nature and Significance of Management – Topic: Management increases efficiency – Page 12

15 Match the following factors related to handling change and adaptability:

List 1	List 2
1. Dynamic environment	A. Helps people adapt to maintain a competitive edge
2. Individuals	B. Resist change due to insecurity
3. Familiar environment	C. Constantly changing and challenging
4. Management role	D. Secure and familiar

A 1-C, 2-B, 3-D, 4-A

B 1-A, 2-C, 3-B, 4-D

C 1-D, 2-A, 3-C, 4-B

D 1-B, 2-D, 3-A, 4-C

💡 Short Explanation

Environment = Changing. Humans = Resistance. Management = Facilitator.

✅ Correct Answer Explanation

�� 1-C: The environment is dynamic, meaning it is constantly changing. → 2-B: Individuals naturally resist change because it threatens their security. → 3-D: A "familiar" environment is one that feels secure to employees. → 4-A: Management's role is to act as the bridge, helping people adapt to the new environment to keep the firm competitive.

❓ Why Other Options Are Incorrect

Option B → Misaligns Management role (4) with the Secure environment (D).
Option C → Misaligns Dynamic environment (1) with Secure (D).
Option D → Misaligns Dynamic environment (1) with Resistance (B).

🎯 Strategy

Used: Option Grouping Application: Pair 2-B (Individuals/Resist) and 4-A (Management/Help). This represents the core "Dynamic Organisation" importance. Final Logic: Only Option A accurately describes the relationship between the environment, human behavior, and management's intervention.

🧠 Memory Trick

Env-Change / People-Wait / Manager-Push.

📚 Nature and Significance of Management – Topic: Management creates a dynamic organisation – Page 12

16 Fast-food giant McDonalds made major changes to its menu to survive in the Indian market. This case highlights management's role in:

A Resisting dynamic changes

B Adopting a dynamic function to handle change

C Focusing only on employee satisfaction

D Reducing productivity

💡 Short Explanation

Organizations must adapt to local social and economic factors. Sticking to global norms in a different market can lead to failure. McDonald's localized menu (e.g., McAloo Tikki) is a dynamic adaptation.

✅ Correct Answer Explanation

�� NCERT uses the McDonald's menu change as a prime example of management being a dynamic function. To survive and grow in a new market (India), the organization had to change its goals and product offerings to match the local environment. This proves management is not static.

❓ Why Other Options Are Incorrect

Option A → Resisting change would have meant keeping the same menu and likely failing.
Option C → The menu change was for the customers and market survival, not primarily for employee satisfaction.
Option D → Adaptation is meant to increase success and productivity in a specific market context.

🎯 Strategy

Used: Contextual/Tonal Matching Application: Menu changes to "survive in a market" is a direct application of the "Dynamic Function" characteristic. Final Logic: Successful companies change themselves to fit the environment; they don't expect the environment to fit them.

🧠 Memory Trick

McD = Dynamic.

📚 Nature and Significance of Management – Topic: Management is a dynamic function – Page 6

17 The process of influencing others to do what the leader wants them to do, which is critical for personal development within an organisation, is formally defined as:

A Controlling

B Planning

C Leadership

D Staffing

💡 Short Explanation

Management involves getting work done through others. Influence is the key mechanism of human management. This is a core component of the "Directing" function.

✅ Correct Answer Explanation

�� Leadership is defined as the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals. It is specifically mentioned as a tool management uses to help individuals develop and commit to organizational success.

❓ Why Other Options Are Incorrect

Option A → Controlling is about monitoring and correcting performance.
Option B → Planning is about setting future goals and paths.
Option D → Staffing is about filling and keeping filled positions in the organization.

🎯 Strategy

Used: Substitution Application: Replace "influencing others" with the formal term: Leadership. Final Logic: Leadership is the behavioral tool used to align individual will with organizational requirements.

🧠 Memory Trick

Influence = Leadership.

📚 Nature and Significance of Management – Topic: Management helps in achieving personal objectives – Page 12

18 Which of the following is NOT developed in team members through effective motivation and leadership?

A Team spirit

B Cooperation

C Resistance to new technology

D Commitment to group success

💡 Short Explanation

Leadership aims to reduce friction. Motivation encourages the acceptance of new challenges. Effective management overcomes resistance.

✅ Correct Answer Explanation

�� Motivation and leadership are used to build team spirit, cooperation, and commitment. They are tools used specifically to eliminate or reduce resistance to change (like new technology). Therefore, creating "resistance" is the opposite of what effective motivation and leadership achieve.

❓ Why Other Options Are Incorrect

Option A, B, & D → These are the primary positive behavioral outcomes of good leadership mentioned in NCERT.

🎯 Strategy

Used: Odd One Out Application: A, B, and D are positive traits for an organization. C is a negative barrier. Final Logic: Leadership exists to make transitions smoother, not to create barriers like resistance.

🧠 Memory Trick

Leader = Guide (Not a Wall).

📚 Nature and Significance of Management – Topic: Management helps in achieving personal objectives – Page 12

19 Arrange the following social benefits provided by management in the logical sequence of societal development mentioned in the text:
1. Creates employment opportunities
2. Helps to provide good quality products and services
3. Leads the path towards growth and development
4. Adopts new technology for the greater good

A 2, 1, 4, 3

B 1, 2, 3, 4

C 4, 3, 2, 1

D 3, 4, 1, 2

💡 Short Explanation

Social benefit starts with the consumer (Quality). It extends to the community (Jobs). it evolves through innovation (Technology). It concludes with national progress (Growth).

✅ Correct Answer Explanation

�� In the "Development of Society" section, NCERT follows this logical flow 1. Providing quality products/services (2). 2. Creating employment opportunities (1). 3. Adopting new technology for the greater good (4). 4. All of these together lead the path toward growth and development (3).

❓ Why Other Options Are Incorrect

Option B, C, & D → These arrangements do not follow the textbook's hierarchy of how management's specific actions (input) lead to broad societal development (output).

🎯 Strategy

Strategy Used: Contextual/Tonal Matching Application: Match the sequence in the NCERT paragraph regarding "Importance of Management - Development of Society." Final Logic: Specific service acts (quality/jobs) logically precede the broader result (growth).

🧠 Memory Trick

Product → People → Progress.

📚 Nature and Significance of Management – Topic: Management helps in the development of society – Page 12

20 Consider the following statements regarding economic growth: Statement I: In the process of fulfilling multiple objectives, management helps in the development of the organisation. Statement II: Through the development of the organisation, management helps in the overall development and economic growth of society.

A Both Statement I and II are true.

B Statement I is true, but Statement II is false.

C Statement I is false, but Statement II is true.

D Both Statement I and II are false.

💡 Short Explanation

Management is a multi-purpose activity. Organizational health is a prerequisite for social health. The "hand" of management moves from micro to macro.

✅ Correct Answer Explanation

�� Statement I is correct; management must juggle organizational, social, and personnel objectives to develop the firm. Statement II is also correct; as the organization grows (paying taxes, creating jobs, providing goods), it contributes to the larger economic growth and development of society. The two statements represent the micro-to-macro link of management's importance.

❓ Why Other Options Are Incorrect

Option B, C, & D → These incorrectly separate the success of the organization from the success of society, which is conceptually linked in management studies.

🎯 Strategy

Used: Substitution Application: If Statement I is a "Process" and Statement II is the "Outcome," they naturally support each other. Final Logic: Management's ultimate contribution is realized at the societal level through the vehicle of a healthy organization.

🧠 Memory Trick

Healthy Firm = Healthy Society.

📚 Nature and Significance of Management – Topic: Management helps in the development of society – Page 12

CUET UG Business Studies Test 2- Objectives and Importance of Management

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