NILA’S GUIDE

12th
COMMERCE

BOOK BACK
ONE MARK
2025 – 2026

Prepared by
Dr.A.VENNILA
Principal,
Mydeen Matric. Hr. Sec. School,
Melacauvery – Kumbakonam – 612 002
 UNIT – I
CHAPTER 1 – PRINCIPLES OF MANAGEMENT
1. Management is what a does?
a) Manager b) Subordinate c) Supervisor d) Superior

2. Management is an
a) Art b) Science c) Art and Science d) Art or Science

3. Scientific management is developed by

a) Fayol b) Taylor c) Mayo d) Jacob

4. Dividing the work into small tasks is known as

a) Discipline b) Unity c) Division of work d) Equity

5. With a wider span, there will be hierarchical levels.

a) More b) Less c) Multiple d) Additional

CHAPTER 2 – FUNCTIONS OF MANAGEMENT

1. Which is the primary function of management?
(a) Innovating (b) Controlling (c) Planning (d) Decision-making

2. Which of the following is not a main function?

(a) Decision-making (b) Planning (c) Organising (d) Staffing

3.is included in every managerial function.

(a) Co-ordinating (b) Controlling (c) Staffing (d) Organising

4. Which of the following is verification function?

(a)Planning (b) Organising (c) Staffing (d) Controlling

5. The goals are achieved with the help of ………

(a) Motivation (b) Controlling (c) Planning (d) Staffing

CHAPTER 3 – MANAGEMENT BY OBJECTIVES (MBO) – MANAGEMENT BY EXCEPTION

1. System gives full Scope to the Individual Strength and Responsibility.

(a) MBO (b) MBE (c) MBM (d) MBA

2. Which is the First step in Process of MBO?

(a) Fixing Key Result Area (b) Appraisal of Activities
(c) Matching Resources with Activities (d) Defining Organisational Objectives

3. keeps Management Alert to Opportunities and Threats by Identifying Critical Problems.

(a) MBA (b) MBE (c) MBM (d) MBO

4. Delegation of Authority is Easily Done with the Help of .

(a) MBM (b) MBE (c) MBO (d) MBA

5. MBO is popularized in the USA by ____________.

(a) MBM (b) MBE (c) MBO (d) MBA
 UNIT - II

CHAPTER 4 – INTRODUCTION TO FINANCIAL MARKETS

1. Financial market facilitates business firms
a) To rise funds b) To recruit workers c) To make more sales d) To minimize fund requirement

2. Capital market is a market for

a) Short Term Finance b) Medium Term Finance
c) Long Term Finance d) Both Short Term and Medium Term Finance

3. Primary market is also called as

a) Secondary market b) Money market c) New Issue Market d) Indirect Market
4. Spot Market is a market where the delivery of the financial instrument and payment of cash occurs
a) Immediately b) In the future c) Uncertain d) After one month

5. How many times a security can be sold in a secondary market?

a) Only one time b) Two time c) Three times d) Multiple times

CHAPTER 5 – CAPITAL MARKET

1. Capital market do not provide
a) Short term Funds b) Debenture Funds c) Equity Funds d) Long term Funds

2. When the NSEI was established

a) 1990 b) 1992 c) 1998 d) 1997
3. Primary market is a Market where securities are traded in the
a) First Time b) Second Time c) Three Time d) Several Times
4. Participants in the Capital Market includes
a) Individuals b) Corporate c) Financial Institutions d) All of the above
5. The ................. was set up by a premier financial institution to allow the trading of securities across the
electronic counters throughout the country.
a)OTCEI b) Factoring c) Mutual Fund d) Venture Funds Institutions

CHAPTER 6 – MONEY MARKET

1) The money invested in the call money market provides high liquidity with .
a) Low Profitability b) High Profitability c) Limited Profitability d) Medium Profitability

1. A major player in the money market is the .

a) Commercial Bank b) Reserve Bank of India c) State Bank of India d) Central Bank.
2. Debt Instruments are issued by Corporate Houses are raising short-term financial resources from the
money market are called .
a) Treasury Bills b) Commercial Paper c) Certificate of Deposit d) Government Securities
3. The market for buying and selling of Commercial Bills of Exchange is known as a .
a) Commercial Paper Market b) Treasury Bill Market c) Commercial Bill Market d) Capital Market
4. A marketable document of title to a time deposit for a specified period may be referred to as a .
a) Treasury Bill b) Certificate of Deposit c) Commercial Bill d) Government. Securities
 UNIT - III

CHAPTER 7 – STOCK EXCHANGE

1. is the oldest stock exchange in the world.
a) London Stock Exchange b) Bombay Stock Exchange
c) National Stock Exchange d) Amsterdam Stock Exchange

2. There are stock exchange in the country.

a) 21 b) 24 c) 20 d) 25

3. Jobbers transact in a stock exchange

a) For their Clients b) For their Own Transactions c) For other Brokers d) For other Members

4. A pessimistic speculator is
a) Stag b) Bear c) Bull d) Lame Duck

5. An optimistic speculator is
a) Bull b) Bear c) Stag d) Lame duck

CHAPTER 8 – STOCK EXCHANGE BOARD OF INDIA (SEBI)

1. Securities Exchange Board of India was first established in the year

a) 1988 b) 1992 c) 1995 d) 1998

2. The headquarters of SEBI is

a) Calcutta b) Bombay c) Chennai d) Delhi

3. Registering and controlling the functioning of collective investment schemes as

a) Mutual Funds b) Listing c) Rematerialisation d) Dematerialization

4. SEBI is empowered by the Finance ministry to nominate members on the Governing body of every
stock exchange.
a) 5 b) 3 c) 6 d) 7

5. Trading is dematerialized shares commenced on the NSE is

a) January 1996 b) June 1998 c) December 1996 d) December 1998

UNIT - IV

CHAPTER 9 – FUNDAMENTALS OF HUMAN RESOURCE MANAGEMENT

1. Human resource is a asset.

a) Tangible b) Intangible c) Fixed d) Current

2. Human Resource management is both and .

a) Science and art b) Theory and practice c) History and Geography d) None of the above
3. Planning is a function.
a) selective b) pervasive c) both a and b d) none of the above

4. Human resource management determines the relationship.

a) internal, external b) employer, employee c) Owner, Servant d) Principle, Agent

5. Labour turnover is the rate at which employees the organisation

a) Enter b) Leave c) Salary d) None of the above

CHAPTER 10 – RECRUITMENT METHODS

1. Recruitment is the process of identifying .
a) Right man for right job b) Good performer c) Right job d) All of the above

2. Recruitment bridges gap between and .

a) Job seeker and job provider b) Job seeker and agent
c) Job provider and owner d) Owner and servant

3. Advertisement is a source of recruitment

a) internal b) external c) agent d) outsourcing

4. Transfer is an source of recruitment.

a) internal b) external c) outsourcing d) None of the above

5. E-recruitment is possible only through facility.

a) Computer b) internet c) Broadband d) 4G

CHAPTER 11 – EMPLOYEE SELECTION PROCESS

1. The recruitment and Selection Process aimed at right kind of people.

a) At right people b) At right time c) To do right things d) All of the above

2. Selection is usually considered as a process

a) Positive b) Negative c) Natural d) None of these

3. Which of the following test is used to measure the various characteristics of the candidate?
a) physical Test b) Psychological Test c) attitude Test d) Proficiency tests

4. The process of eliminating unsuitable candidate is called

a) Selection b) Recruitment c) Interview d) Induction

5. Job first man next is one of the principles of .

a) Test b) Interview c) Training d) placement

CHAPTER 12 - EMPLOYEE TRAINING METHOD

1. Off the Job training is given
a) In the class room b) On off days c) Outside the factory d) In the playground
2. Improves Skill Levels of employees to ensure better job performance
a) Training b) Selection c) Recruitment d) Performance appraisal

3. When trainees are trained by supervisor or by superior at the job is called

a) Vestibule training b) Refresher training c) Role play d) Apprenticeship training

4. is useful to prevent skill obsolescence of employees

a) Training b) Job analysis c) Selection d) Recruitment

5. Training methods can be classified into and training

a) Job rotation and Job enrichment b) On the Job and Off the Job
c) Job analysis and Job design d) Physical and mental

UNIT - V

CHAPTER 13 – CONCEPT OF MARKET AND MARKETER

1. One who promotes (or) Exchange of goods or services for money is called as .
a) Seller b) Marketer c) Customer d) Manager
2. The marketer initially wants to know in the marketing is .
a) Qualification of the customer b) Quality of the product
c) Background of the customers d) Needs of the customers

3. The Spot market is classified on the basis of .

a) Commodity b) Transaction c) Regulation d) Time

4. Which one of the market deals in the purchase and sale of shares and debentures?
a) Stock Exchange Market b) Manufactured Goods Market c) Local Market d) Family Market

5. Stock Exchange Market is also called

a) Spot Market b) Local Market c) Security Market d)National Market

CHAPTER 14 – MARKETING AND MARKETING MIX

1. The initial stage of Marketing system is

a) Monopoly system b) Exchange to Money c) Barter system d) Self producing

2. Who is supreme in the Market?

a) Customer b) Seller c) Wholesaler d) Retailer

3. In the following variables which one is not the variable of marketing mix?
a) Place Variable b) Product Variable c) Program Variable d) Price Variable

4.Marketing mix means a marketing program that is offered by a firm to its target to
earn profits through satisfaction of their wants.
a) Wholesaler b) Retailer c) Consumer d) Seller

5. Which one is the example of Intangible product?

a) Education b) Mobiles c) Garments d) Vehicles
 CHAPTER 15 – RECENT TRENDS IN MARKETING
1. Selling goods/ services through internet is
a. Green marketing b. E- business c. Social marketing d. Meta marketing

2. Which is gateway to internet?

a. Portal b. CPU c. Modem d. Webnaire

3. Social marketing deals with:

a. Society b. Social Class c. Social change d. Social evil

4. Effective use of Social media marketing increase conversion rates of .

a. Customer to buyers b. Retailer to customers
c. One buyer to another buyer’s d. Direct contact of marketer

5. Pure play retailers are called

a. Market creators b. Transaction brokers c. Merchants d. Agents

UNIT – VI -CHAPTER 16 – CONSUMERISM

1. The term ‘consumerism’ came into existence in the year .

a) 1960 b) 1957 c) 1954 d) 1958

2. Who is the father of Consumer Movement?

a) Mahatma Gandhi b) Mr. Jhon F. Kennedy c) Ralph Nader d) Jawaharlal Nehru

3. Sale of Goods Act was passed in the year?

a) 1962 b) 1972 c) 1930 d) 1985

4. The Consumer Protection Act came into force with effect from
a) 1.1.1986 b) 1.4.1986 c) 15.4.1987 d) 15.4.1990

5. of every year is declared as a Consumer Protection Day to educate the public about their rights and
responsibilities.
a) August 15 b) April 15 c) March 15 d) September 15

CHAPTER 17 - RIGHTS, DUTIES & RESPONSIBILITIES OF SONSUMERS

1. The final aim of modern marketing is
a. Maximum profit b. Minimum profit c. Consumer satisfaction d. Service to the society

2. is the king of modern marketing.

a. Consumer b. Wholesaler c. Producer d. Reatailer

3. As the consumer is having the rights, they are also having .

a. Measures b. Promotion c. Responsibilities d. Duties

4. Which of the following is not a consumer right summed up by John F. Kennedy

a. Right to safety b. Right to choose c. Right to consume d. Right to be informed

5. It is the responsibility of a consumer that must obtai as a proof for the purchase of goods he.
a. Cash receipt b. Warranty card c. Invoice d. All of these
 CHAPTER 18 – GRIEVANCE REDRESSAL MECHANISM
1. The Chairman of the National Consumer Disputes Redressal Council is
a) Serving or Retired Judge of the Supreme Court of India. b) Prime Minister
c) President of India d) None of the above

2. The Chairman of the State Consumer Protection Council is

a) Judge of a High Court b) Chief Minister c) Finance Minister d) None of the above

3. The Chairman of the District Forum is

a) District Judge b) High Court Judge c) Supreme Court Judge d) None of the above

4. The State Commission can entertain complaints where the value of the goods or services and the
compensation, if any claimed exceed
a) Rs.2 lakhs but does not exceed Rs.5 lakhs b) Rs.20 lakhs but does not exceed Rs.1 crore
c) Rs.3 lakhs but does not exceed Rs.5 lakhs d) Rs.4 lakhs but does not exceed Rs.20 lakhs

5. The International Organisation of Consumers Unions (IOCU)was first established in

a) 1960 b) 1965 c) 1967 d) 1987

UNIT - VII

CHAPTER 19 – ENVIRONMENTAL FACTORS

1. VUCA stands for , , , .
(a) Volatility, Uncertainty, Complexity and Ambiguity (b) Value, Unavoidable, Company and Authority
(c) Volatility, Uncontrollable, Company and Auction (d) All of the above

2. GST stands for , , .

(a) Goods and Social Tax (b) Goods and Service Tax (c) Goods and Sales Tax (d) Goods and Salary Tax

3. Factors within an organisation constitutes environment.

(a) Internal Thinker (b) External Thinker (c) Fellow human beings (d) All of the above

4. Macro Environment of business is an factor.

(a) Uncontrollable (b) Controllable (c) Manageable (d) Immanageable

5. The two major types of business environment are and .

(a) Positive and Negative (b) Internal and External (c) Good and Bad (d) Allowable and Unallowable

CHAPTER 20 - LIBERALIZATION, PRIVATIZATION AND GLOBALIZATION

1. is the result of New Industrial Policy which abolished the ‘License System’.
(a) Globalisation (b) Privatisation (c) Liberalisation (d) None of these

2. means permitting the private sector to setup industries which were previously reserved for
public sector.
(a) Liberalisation (b) Privatisation (c) Globalisation (d) Public Enterprise
3. ownership makes bold management decisions due to their strong foundation in the
international level.
(a) Private (b) Public (c) Corporate (d) MNC’s

4. results from the removal of barriers between national economies to encourage the flow of
goods, services, capital and labour.
(a) Privatisation (b) Liberalisation (c) Globalisation (d) Foreign Trade

5. New Economic Policy was introduced in the year .

(a) 1980 (b) 1991 (c) 2013 (d) 2015

UNIT - VIII

CHAPTER 21 – THE SALE OF GOODS ACT 1930

1. Sale of Goods Act was passed in the year

a) 1940 b) 1997 c) 1930 d) 1960

2. Which of the below constitutes the essential element of contract of sale?

a) Two parties b) Transfer of property c) Price d) All of the above

3. Which of the below is not a good?

a) Stocks b) Dividend due c) Crops d) Water

4. In case of the sale, the has the right to sell

a) Buyer b) Seller c)Hirer d) Consignee

5. The property in the goods means the

a) Possession of goods b) Custody of goods c) Ownership of goods d) Both (a) and (b)

CHAPTER 22 – THE NEGOTIABLE INSTRUMENTS ACT 1881

1. Negotiable Instrument Act was passed in the year .

a. 1981 b. 1881 c. 1994 d. 1818

2. Number of parties in a bill of exchange are

a. 2 b. 6 c. 3 d. 4

3. Section 6 of Negotiable Instruments Act 1881 deals with

a. Promissory Note b. Bills of exchange c. Cheque d. None of the above

4.cannot be a bearer instrument.

b. Cheque b. Promissory Note c. Bills of exchange d. None of the above

5. A cheque will become stale after months of its date:

a. 3 b. 4 c. 5 d. 1
 UNIT - IX

CHAPTER 23 – ELEMENTS OF ENTREPRENEURSHIP

1. Which of the below is a factor of production?

(a) Land (b) Labour (c) Entrepreneurship (d) All of the above

2. Entrepreneur is not classified as

(a) Risk Bearer (b) Innovator (c) Employee (d) Organizer

3. What are the characteristics of an entrepreneur?

(a) Spirit of enterprise (b) Flexibility (c) Self Confidence (d) All of the above

4. Which of the below is not classified into managerial functions?

(a) Planning (b) Marketing (c) Organizing (d) Controlling
5. Which of the below is a commercial function?
(a) Accounting (b) Coordination (c) Discovery of idea (d) Planning

CHAPTER 24 – TYPES OF ENTREPRENEURS

1. Which of the following is the Activity of a Business Entrepreneur?

a. Production b. Marketing c. Operation d. All of the above

2. Find the odd one out in context of Trading Entrepreneur.

a. Selling b. Commission c. Buying d. Manufacturing

3. Corporate Entrepreneur is also called as

a. Intrapreneur b. Promoter c. Manager d. Shareholder

4. Which of these is based on Technology?

a. Modern b. Professional c. Corporate d. Industrial

5. Which of the below is not a Characteristic of a Fabian Entrepreneur?

a. Conservative b. Risk averse c. Sceptical d. Adaptive

CHAPTER 25 – GOVERNMENT SCHEMES FOR ENTREPRENEURIAL DEVELOPMENT

1. The initiative was launched to modernize the Indian economy to make all governments
services available electronically.
a) Standup India b) Startup India c) Digital India d) Make in India

2. is designed to transform India to a global design and manufacturing hub.

a) Digital India b) Make in India c) Startup India d) Design India.

3. is the Government of India’s endeavour to promote culture of innovation and

entrepreneurship.
a) AIM b) STEP c) SEED d) AIC
4. should cover aspects like sources of finance, technical know-how, source of labour and raw
material, market potential and profitability.
a) Technical Report b) Finance Report c) Project Report d) Progress Report

5. has to include the mechanism for managing venture in the project report.
a) Banker b) Government c) Lending Institutions d) Entrepreneur

UNIT - X

CHAPTER 26 – COMPANIES ACT 2013

1. The Company will have to issue the notice of situation of Registered Office to the Registrar of Companies
within days from the date of incorporation.
(a) 14 days (b) 21 days (c) 30 Days (d) 60 Days

2. How does a person who envisages the idea to form a company called?
(a) Director (b) Company Secretary (c) Registrar (d) Promoter

3. Which of the following types of shares are issued by a company to raise capital from the existing
shareholders?
(a) Equity Shares (b) Rights Shares (c) Preference Shares (d) Bonus Shares

4. The shares which are offered to the existing shareholder at free of cost is known as .
(a) Bonus Share (b) Equity Share (c) Right Share (d) Preference Share

5. The shares which are offered first to the existing shareholder at reduced price is known as .
(a) Bonus Share (b) Equity Share (c) Right Share (d) Preference Share

CHAPTER 27 – COMPANY MANAGEMENT

1. A person Shall hold office as a director in companies as per the Companies Act, 2013.
(a) 5 companies (b) 10 companies (c) 20 companies (d) 15 companies

2. A Private Company shall have a minimum of .

(a) Seven directors (b) Five directors (c) Three directors (d) Two directors

3. A Public Company having a paid up Share Capital of or more may have a Director, elected
by such small shareholder
(a) One Crore (b) Three Crores (c) Five Crores (d) Seven Crores

4. What is the statue of Directors who regulate money of the company.

(a) Banker (b) Holder (c) Agent (d) Trustees

5. According to Companies Act, the Directors must be appointed by the.

(a) Central Government (b) Company Law Tribunal
(c) Company in General Meeting (d) Board of Director
 CHAPTER 28 – COMPANY SECRETARY
1. Mention the status of a Company Secretary in a company.
a) A member b) A director c) An independent d) An employee contractor

2. Who can become a secretary for a company?

a) Individual person b) Partnership firm c) Co-operative societies d) Trade unions

3. Which meeting will be held only once in the life time of the company?
a) Statutory b) Annual General c) Extra - ordinary d) Class General

4. Who is not entitled to speak at the annual general meeting of the company.
a) Auditor b) Shareholder c) Proxy d) Directors

5. From the date of its incorporation the First Annual General Meeting is to be conducted within
months.
(a) Twelve (b) Fifteen (c) Eighteen (d) Twenty one
 One Marks Answers
Chapter 1 1-A 2-C 3-B 4-C 5-B

Chapter 2 1-C 2-A 3-A 4-D 5-A

Chapter 3 1-A 2-D 3-B 4-C 5-B

Chapter 4 1-A 2-C 3-C 4-A 5-D

Chapter 5 1-A 2-B 3-A 4-D 5-A

Chapter 6 1-A 2-A 3-B 4-C 5-B

Chapter 7 1-D 2-B 3-B 4-B 5-A

Chapter 8 1-A 2-B 3-A 4-D 5-C

Chapter 9 1-B 2-A 3-B 4-B 5-B
Chapter 10 1-A 2-A 3-B 4-A 5-B
Chapter 11 1-D 2-B 3-B 4-A 5-A
Chapter 12 1-C 2-A 3-D 4-A 5-B
Chapter 13 1-B 2-D 3-B 4-A 5-C
Chapter 14 1-C 2-A 3-C 4-C 5-A
Chapter 15 1-B 2-C 3-B 4-A 5-B
Chapter 16 1-A 2-C 3-C 4-C 5-C
Chapter 17 1-C 2-A 3-C 4-C 5-A
Chapter 18 1-A 2-A 3-A 4-B 5-A
Chapter 19 1-A 2-B 3-A 4-A 5-B
Chapter 20 1-C 2-B 3-A 4-C 5-B
Chapter 21 1-C 2-D 3-B 4-B 5-C
Chapter 22 1-B 2-C 3-C 4-B 5-A
Chapter 23 1-D 2-C 3-D 4-B 5-A
Chapter 24 1-D 2-D 3-B 4-B 5-D
Chapter 25 1-C 2-B 3-A 4-C 5-D
Chapter 26 1-C 2-D 3-B 4-A 5-C
Chapter 27 1-C 2-D 3-C 4-D 5-C
Chapter 28 1-D 2-A 3-A 4-C 5-C