I
Plot No.-8 Sector-23, Rohini, Delhi-110085.
Session: 2021-2022
Exam: TERM I - MOCK TEST
Class: XII
Subject: Business Studies
Date: 21/10/2021
Duration 90 minutes Max Marks: 40
GENERAL INSTRUCTIONS:
1. The Question Paper contains 3 sections.
2. Section A has 24 questions. Attempt any 20 questions.
3. Section B has 24 questions. Attempt any 20 questions.
4. Section C has 12 questions. Attempt any 10 questions.
5. All questions carry equal marks.
6. There is NO negative marking.
Q-1) The task of a manager is to give a common direction to the individual effort in achieving the (1)
overall goal of the organisation. Identify the point of importance of management highlighted
in above line.
a) Management helps in achieving group goals
b) Management increases efficiency
c) Management creates a dynamic organization
d) Management helps in achieving personal objectives
Q-2) In order to promote the sales of the company, Swifty Limited has decided to offer consumer (1)
durable products at 0% finance. Identify the type of marketing factor being described in the
above line.
a) Non-controllable factor
b) Controllable factor
c) Environment factor
d) None of the these
Q-3) Kiya has started a new business of providing organic vegetables and fruits. Although, she is (1)
not having many competitors, yet she is trying to offer goods at minimum price so that she
is able to survive in market and people with limited means can also afford her fruits and
vegetables. Identify the two objectives of management she is trying to achieve.
a) Organizational and Human
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b) Organizational and Social
c) Personnel and Social
d) All of the above
Q-4) Meera decided to start a chocolate manufacturing business. She sets the target of earning (1)
20% profit on sales in the first year. Which step in the planning process will she now
follow?
a) Setting objectives
b) Developing planning premises
c) Identification of alternative courses of action
d) Evaluating alternative courses of action
Q-5) At the Burger Factory, the ingredients used for making a burger are strategically placed to (1)
reduce the wasteful movements. Identify the work study technique of scientific management
highlighted here.
a) Time Study
b) Motion Study
c) Fatigue Study
d) Method Study
Q-6) A food delivery app recently faced lot of criticism for tampering of their products, by their (1)
delivery boys. The company then decided to put a hologram seal on the food packets in
order to protect the contents from spoilage, leakage, pilferage, damage, along with a tag
with a safety warning for the consumers to check the seal. Which concept of marketing
discussed above is performing the important function of communicating with customers and
promoting their sales?
a) Branding
b) Product designing and label
c) Packaging
d) Labelling
Q-7) Which of the following process provide the requisite amount, quality, timing and sequence (1)
of efforts and ensures that planned objectives are achieved with a minimum of conflict?
a) Planning
b) Controlling
c) Organising
d) Coordination
Q-8) Nishant runs a software company. Now he wants to open a retail company. The size of the (1)
organization would be large and there would be need for high degree of specialization.
Identify the organization structure which would be the most appropriate in this scenario.
a) Divisional Structure
b) Functional Structure
c) Formal Structure
d) None of these
Q-9) Identify the dimension of the characteristic of management- “it is multidimensional”, which (1)
specifies that the task of management is to make the strengths of human resources effective
and their weaknesses irrelevant towards achieving the organisation's objectives.
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a) Management of work
b) Management of people
c) Management of operations
d) Management of goals
Q-10) Top Management undertakes planning for the organization as a whole, the Middle (1)
Management does the ____________ planning. At the lowest level, ________________
planning is done by supervisors.
a) Operational, departmental
b) Departmental, operational
c) Departmental, organizational
d) Organisational, operational
Q-11) Due to proper organizing and division of work, Lenux Ltd. goes for systematic assignment (1)
of jobs among the employees. Which importance of organizing is highlighted here?
a) Benefits of Specialisation
b) Clarity in Working Relationships
c) Adaptation to Change
d) Effective Administration
Q-12) Identify the importance of branding highlighted in the above picture. (1)
a) Enables making product differentiation
b) Helps in Advertising and Display programmes
c) Differential Pricing
d) Ease in introduction of new products
Q-13) Match the points of ‘Importance of Business Environment’ in Column-I with their (1)
respective statements in Column-II.
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Column I Column II
A Suppliers and Creditors (i) Opportunities
B Social and Political Environment (ii) First Mover Advantage
C Gaining the profits because of being a (iii) General Forces
pioneer
D Positive external trends (iv) Specific Forces
a) A(i), B(ii), C(iii), D(iv)
b) A(iv), B(iii), C(ii), D(i)
c) A(iv), B(i), C(iii), D(ii)
d) A(iv), B (iii), C(i), D(ii)
Q-14) According to Fayol, “Good sense and experience are needed to ensure fairness to all (1)
employees, who should be treated as fairly as possible”. However, Fayol does not rule out
use of force sometimes. Rather he says that lazy personnel should be dealt sternly to send
the message that everyone is equal in the eyes of the management.
Identify the principle of management highlighted above.
a) Equity
b) Discipline
c) Order
d) Stability of Personnel
Q-15) Which of the following is not a component of economic environment of business? (1)
a) Interest rates
b) Literacy rates
c) Inflation rates
d) Rates of saving and investment
Q-16) A tall structure has a ___________. (1)
a) Narrow span of management
b) Wide span of management
c) No span of management
d) Less levels of management
Q-17) Shreemaya Hotel in Indore was facing problem of low demand for its rooms due to off (1)
season. The Managing Director (MD) of the hotel, Mrs. Sakina was very worried. She
called upon the Marketing Manager, Mr. Kapoor for his advice. He suggested that the
hotel should announce an offer of ‘3 days and 2 Nights hotel stay package with free
breakfast and one day religious visit to Omkarehswar and Mahakaleshwar Temples’. The
MD liked the suggestion very much. Identify the promotional tool, which can be used by
the hotel through which large number of prospective pilgrimage tourists, all over the
country and also abroad, can be reached, informed and persuaded to use the incentive.
a) Advertising
b) Public Relations
c) Personal Selling
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d) Sales Promotion
Q-18) In the year 1977, the newly elected government’s decision of promoting agriculture, rural (1)
and indigenous industries made the economy unsuitable for MNC's. Therefore, IMB and
Coco-Cola had to leave India. This was an effect of _______ environment.
a) Political
b) Legal
c) Economic
d) Technical
Q-19) Malwa company’s target production is 5000 units in a year. To achieve this target, the (1)
manager has to operate on double shifts due to power failure most of the time. The manager
is able to produce 5000 units but at a higher production cost.
Choose the correct option from the below given alternatives.
(a) Manager was effective
(b) Manager was efficient
(c) Manager was effective but not efficient
(d) Manager was efficient but not effective
Q-20) With the onset of the thought of producing a thing, the process of __________ starts. (1)
a) Buying
b) Selling
c) Marketing
d) Producing
Q-21) The principle of management given by Fayol which aims at preventing overlapping of (1)
activities is ___________.
a) Division of work
b) Unity of Command
c) Unity of Direction
d) Order
Q-22) Authority-responsibility relationship binds individuals as superiors and subordinates and (1)
gives rise to different _____________ in an organisation.
a) functions
b) levels
c) objectives
d) policies
Q-23) _____________ increases employees’ participation in the management, which gives them (1)
an identity in the organisation.
a) Decentralisation
b) Centralisation
c) Both Centralisation and Decentralisation
d) Delegation
Q-24) One of the techniques given by FW Taylor violates a principle given by Henry Fayol. (1)
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Identify the technique.
a) Method Study
b) Time Study
c) Differential Piece Wage System
d) Functional Foremanship
SECTION B
Q-25) Govinda Ltd. is a highly reputed company. Different functions are performed by different (1)
individuals in this company, who are bound together in a hierarchy of relationships. Every
individual in the hierarchy is responsible for successful completion of a particular task.
Mr. Gauranga is responsible for the welfare and survival of the organization. He
formulates overall organizational goals and strategies for their achievement. Mr.
Nityanand ensures that quality of output is maintained, wastage of materials is minimized
and safety standards are maintained. Mr. Sanatan assigns necessary duties and
responsibilities to the personnel and motivates them to achieve desired objectives.
At what levels of management are Mr. Gauranga, Mr. Nityanand and Mr. Sanatan
working respectively in Govinda Ltd.?
a) Middle, Top, Supervisory
b) Top, Middle, Supervisory
c) Top, Supervisory, Middle
d) Middle, Supervisory, Top
Q-26) Frankenstein is an energetic middle level manager in JLP Automotives Ltd. He tries to (1)
make best plans for his organisation. For this, he uses his foresight and intelligent
imagination. He always makes alternative plans and selects the best out of them after
considering relevant aspects. Identify the ‘features of planning’ described above.
(a) Planning provides direction; Planning is futuristic
(b) Planning is continuous; Planning involves decision making
(c) Planning involves decision making; Planning is a mental exercise
(d) Planning promotes innovative ideas; Planning is a mental exercise
Q-27) ‘Balaji Store’, which is located in the centre of the city, is a big shop of the commodities of (1)
daily use. The owner of this shop, Mr. Naresh Aggarwal, has very good relations with his
customers, suppliers and competitors. He knows it that if his customers are dissatisfied with
him, it is just his outlet which is going to be impacted negatively. Therefore, he takes full
care of their requirements. Similarly, Mr. Aggarwal also understands if there is any change
in the customs, traditions followed by people or the technology, its impact will be
experienced by all the firms of his industry.
Identify the feature of Business Environment highlighted in the above paragraph.
(a) Dynamic Nature
(b) Inter-relatedness
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(c) Totality of External Forces
(d) Specific and General Forces
Q-28) Ankit is working as a manager in ‘Creative Designer Candles Ltd.’ His company wants to (1)
launch a unique variety of candles for this Diwali season. Arrange the following activities to
be performed by Ankit in the correct sequence:
(i) He recruits more skilled artistic workers.
(ii) He determines what activities and resources are required.
(iii) He plans a special festive collection for Diwali.
(iv) He ensures that deadlines regarding delivery of goods are met.
Choose the correct option.
(a) (i); (ii); (iv); (iii)
(b) (iii); (ii); (i); (iv)
(c) (iii); (ii); (iv); (i)
(d) (ii); (iii); (i); (iv)
Q-29) Shiya is employed as a middle level manager in ‘Rakshak Medicines Ltd.’ In order to (1)
achieve the objectives of the company for this year, a plan was prepared. When the plan was
actually implemented, Shiya could notice that the actual work did not match with the plan.
She immediately reported the matter to the General Manager of the company. Identify the
step of the ‘planning process’ being executed by Shiya.
a) Evaluating alternative courses of action
b) Selecting an alternative
c) Implementing the plan
d) Follow-up action
Q-30) “Atmanirbhar Bharat Abhiyaan or Self-reliant India campaign is the vision of new India (1)
envisaged by the Hon’ble Prime Minister Shri Narendra Modi. On 12th May 2020, our PM
raised a clarion call on the nation giving a kick start to the Atmanirbhar Bharat Abhiyaan
(Self-reliant India campaign) and announced the Special economic and comprehensive
package of INR 20 lakh crores – equivalent to 10% of India’s GDP – to fight COVID-19
pandemic in India”. Which dimension of business environment is being reflected by the
campaign?
a) Social environment
b) Economic environment
c) Legal environment
d) Political environment
Q-31) “Effective Delegation allows the managers to reduce their workload by assigning routine (1)
jobs to their subordinates.”
Identify the significance of organizing that has been highlighted in the above statement.
(a) Effective administration
(b) Development of personnel
(c) Optimum utilization of resources
(d) Expansion and growth
Q-32) Traditional trade or kirana stores constitute 90% of the FMCG (fast moving consumer (1)
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goods) business in India. HUL is the market leader in FMCG with over 60 lakh outlets.
According to industry estimates, Patanjali products are currently available in two lakh
traditional retail outlets. ‘Availability of the product’ is the single largest driver of FMCG
sales. Research on shoppers suggests that 30% - 40% consumers shift preference if their
favourite brand is not available at the store. In the context of above case, identify the
component of marketing mix being discussed in the above lines.
a) Product
b) Price
c) Place
d) Promotion
Q-33) Sameer, the CEO of Star Light Limited, believes that the two groups working on the (1)
managerial and non-managerial posts are similar to two wheels of an organization vehicle.
If this vehicle is to be driven in a right manner, then both the wheels should be properly
aligned.
Identify the principle of Taylor highlighted here.
a) Science, not rule of Thumb
b) Harmony, not Discord
c) Cooperation, not Individualism
d) Development of Every Person to his Greatest Efficiency
Q-34) Anita and Gauri are heads of two different departments in Yamaha limited. They are (1)
efficient managers and are able to motivate their employees of their respective departments
to improve performance. However, their drive to excel in their own sphere of activities
instead of giving emphasis on the objectives of the enterprise had hindered the interaction
between the departments that Anita and Gauri are heading. There are inter-departmental
conflicts and they have become incompatible. This has proved to be harmful in the
fulfillment of the organizational objectives. The CEO of the company hired a consultant,
Rashmi, to resolve the problem. Rashmi discovered that the problems identified were due to
inflexibility and a narrow perspective on the part of both Anita and Gauri. Rashmi believes
that the situation is a result of the type of organizational structure adopted by the company.
Identify the type of organizational structure being followed by the company.
a) Functional Structure
b) Divisional Structure
c) Formal Structure
d) Informal Structure
Q-35) Kumar wanted to purchase a fuel-efficient car conforming the latest standards of pollution (1)
control. He saw an advertisement offering such a car and visited the showroom wherein the
car was displayed. While discussing the same with the marketing manager, the latter told
him that company is providing technical services, maintenance services and many other
effective services which are helping in bringing repeat sales and developing brand loyalty.
Identify the marketing function being discussed between Kumar and the marketing
manager.
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a) Product designing and development
b) Grading and Standardisation
c) Physical distribution
d) Customer Support Services
Q-36) Ballerina, a greeting card company, provided a prewritten card for every occasion. This (1)
formula made it successful in USA and UK. To get the benefit of the high-tech consumers
who used computers in their life, Ballerina even launched a website for e-greetings. Inspired
by its success, the company decided to enter France. But to their shock, as compared to their
target of covering 60% of the young population, they could not even reach the figure of
10%. This was because the people of France liked to personally express their feelings on the
cards rather than use readymade standardized messages.
What does the above case highlight about the nature of business environment?
a) Dynamic Nature
b) Inter-relatedness
c) Relativity
d) Complexity
Q-37) In order to create demand for its products, a company had relied heavily on a paid form of (1)
non-personal method of promotion. But with passage of time, the demand started to decline.
The marketing manager suggested that there was a need for a more flexible and
personalized approach.
Which tool of promotion is being suggested by the Marketing Manager?
a) Advertising
b) Public Relations
c) Publicity
d) Sales Promotion
Q-38) The scope of authority _________ as we go higher up in the management hierarchy. (1)
a) Increases
b) Decreases
c) Remains same
d) None of the above
Q-39) Soni Bakers launched some new cakes and biscuits in the market on the eve of Christmas (1)
which attracted many buyers. To meet the increased demand, the company employed people
from nearby villages where there was a lot of unemployment. At the end of the day all the
stocks of cakes and pastries which would not last for more than 24 hours were distributed
among the workers. This attracted many people to join the company. As the company’s
product was in great demand in the market, a competitor imitated their recipes. The products
of the competitor were not accepted by the costumers as it was a status symbol to buy the
products of Soni Bakers because of their quality.
Identify the product related decision because of which consumers preferred the product
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of Soni Bakers.
a) Branding
b) Packaging
c) Labelling
d) Ensuring quality
Read the following paragraph and answer the question number 40 to 44 on the basis of
the same.
Pat Ltd. is an electronics company operating in Indonesia. The company got to know that
the Prime Minister of India has announced relaxation in import duties on electronic items
and therefore decided to start exporting products to India. The company decided to tie up
with only those retailers who had direct online links with the suppliers to replenish stock
when needed.
Ever after entering into the market of India, company did not get complacent. It kept on
adding new features in its products, especially in mobile phones to remain ahead of
changes made by other competing brands.
When the festive season was round the corner and multiple E-commerce sites were
coming up with the product options in electronics category, the company took a note of
the potential demand and thus arranged all the extra required inputs such as finance, raw
material to address the surge in demand.
Q-40) Which element of business environment is highlighted in the line, “Prime Minister of (1)
India has announced relaxation in import duties on electronic items”?
a) Economic
b) Legal
c) Political
d) Technological
Q-41) Which element of business environment is highlighted in the line, “The company (1)
decided to the tie up with only those retailers who had direct online links with the
suppliers to replenish stock when needed”?
a) Economic
b) Legal
c) Political
d) Technological
Q-42) Which importance of business environment is highlighted in the line, “It kept on adding (1)
new features in its products, especially in mobile phones to remain ahead of changes
made by other competing brands”?
a) Identify opportunities and getting first mover advantage
b) Tapping useful resources
c) Coping with rapid changes
d) Improving performance
Q-43) Which importance of business environment is highlighted in the line, “the company took (1)
a note of the potential demand and thus arranged all the extra required inputs such as
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finance, raw material to address the surge in demand”?
a) Identify opportunities and getting first mover advantage
b) Tapping useful resources
c) Coping with rapid changes
d) Improving performance
Q-44) “When the festive season was round the corner, multiple E-commerce sites were coming (1)
up with the product options in electronics category.” Which dimension of business
environment is highlighted here?
a) Economic
b) Social
c) Legal
d) Technological
Based on the image given below, answer question number 45 to 48.
Q-45) Identify the principle given by Fayol highlighted in the above image. (1)
a) Equity
b) Division of work
c) Remuneration of employee
d) None of the above
Q-46) Which function would not be performed by the Vice President marketing? (1)
a) Arranging resources and funds for the organization
b) To integrate diverse elements and coordinate the activities of different departments
according to the overall objectives of the organization
c) He is responsible for the welfare and survival of the organization.
d) Ensure that his department has the necessary personnel
Q-47) In the above image, if manager ‘A’ wants to directly talk to manager ‘K’ without (1)
following the defined chain of command, what would he be doing to follow scalar chain
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principle?
a) Use Informal channel of communication
b) He cannot speak to manager K directly
c) He would speak to Vice President finance first
d) He would follow Gang Plank
Q-48) Unlike professions such as medicine or law, which require a practising doctor or lawyer (1)
to possess valid degrees, nowhere in the world is it mandatory for a manager to possess
any such professional degree.
Identify the characteristic of the profession being discussed above which is not being
strictly met by management.
a) Well defined body of knowledge
b) Restricted Entry
c) Professional Association
d) Ethical code of conduct
SECTION C
Q-49) Karan had started the business of producing exclusive home decor items under the brand (1)
name ‘Eleganza’ 15 years back. Over the years, he has diversified into new segments
like home furnishing, furniture and kitchenware. However, all the products are being
sold under the same brand name ‘Eleganza’, as it appears to be apt for all of them.
Identify the relative feature of a good brand name being described in the given case.
a) Short and easy to pronounce, spell and remember
b) Reflects the functions of the product
c) Distinctive/easily identifiable
d) Versatile, can be used for brand extension
Q-50) Assertion (A): The job of a marketer is to add to the value of the product so that the (1)
customers prefer it in relation to the competing products.
Reason (R): A product will be purchased only if it is perceived to be giving greatest
benefit or value for the money.
a) Both Assertion (A) and Reason (R) are true and R is the correct explanation of
A
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation
of A
c) Assertion (A) is true but Reason (R) is false
d) Assertion (A) is false but Reason (R) is true
Q-51) It is not always true that just because a plan has worked before, it will work again. (1)
Identify the related limitation of planning.
a) Planning leads to rigidity
b) Planning reduces creativity
c) Planning may not work in a dynamic environment
d) Planning does not guarantee success
Q-52) The principles of pure science are ________, whereas the principles of management are (1)
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__________.
a) Flexible, Rigid
b) Based on Observation, Based on development
c) Rigid, Flexible
d) Temporary, Permanent
Q-53) In an inter school quiz competition, the participants were shown empty bottles of soft (1)
drinks and were asked to identify the brands. All the participants were able to do so.
Identify the related point highlighting the importance of packaging, which is being
described in the given case.
(a) Rising standards of health and sanitation
(b) Facilitates product differentiation
(c) Innovative packaging adds value to a product
(d) Useful in self service outlets
Q-54) Samir Gupta started a telecommunication company, ‘Donira Ltd.’ to manufacture (1)
economical mobile phones for the Indian rural market with 15 employees. The company
did very well in its initial years. As the product was good and marketed well, the demand
of its products went up. To increase production, the company decided to recruit
additional employees. Samir Gupta, who was earlier taking all decisions for the company
had to selectively disperse the authority. He believed that subordinates are competent,
capable and resourceful and can assume responsibility for effective implementation of
their decisions. This paid off and the company was not only able to increase its
production but also expanded its product range.
Which concept of management has been highlighted in the above case study?
a) Decentralisation
b) Delegation
c) Controlling
d) Divisional Structure
Q-55) Assertion (A): Planning is most challenging activity for the management as it guides (1)
all future actions leading to the growth and prosperity of the business.
Reason (R): Planning promotes innovative ideas.
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 and R is false.
d) A is false but R is true.
Q-56) Sanjay joins an e-commerce company as a delivery executive. The Area Team Leader (1)
Shekhar is very happy with his performance. However, after a few months, due to some
family problems, Sanjay becomes irregular in work and is not able to meet the deadlines.
As a result, Shekhar is not able to realise his team targets. Under such a situation, which
of the following statement will hold true?
a) Shekhar can absolve himself of his accountability to the extent of work
assigned to Sanjay.
b) Shekhar cannot absolve himself of his accountability to the extent of work
assigned to Sanjay.
c) Shekhar can partly absolve himself of his responsibility to the extent of work
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assigned to Sanjay.
d) None of the above
Q-57) Suppose, it is determined that standard output per worker per day is 10 units and those (1)
who made standard or more than standard output will get ₹50 per unit and those
producing below the standard will get ₹40 per unit. Now, if Ramakant is making 12 units
and Mohan makes 8 units, the difference in their wages at the end of the day would be
__________.
a) ₹550
b) ₹180
c) ₹280
d) ₹190
Q-58) In Shalleen Pvt Ltd., there is one head Shalleen who has two lines of authority under her. (1)
One line consists of Sara-Rajat-Abhishek-Ismail-Chris. Another line of authority under
Shalleen is Lata-Rupa-Geet-Hussain-Falguni. According to a Principle of Management
given by Fayol, if Ismail has to communicate with Hussain who is at the same level of
authority, then illustrate the route he will have to traverse.
a) Ismail-Abhishek-Rajat-Sara-Shalleen-Lata-Rupa-Geet-Hussain
b) Hussain-Geet-Rupa-Lata-Shalleen-Sara-Rajat-Abhishek-Ismail
c) Ismail-Chris-Shalleen-Falguni-Hussain
d) Ismail-Abhishek-Rajat-Sara-Lata-Rupa-Geet-Hussain
Q-59) Ajanta Foods Ltd. is engaged in the trading of ‘Noodles’. It has its registered office in (1)
Kolkata, manufacturing unit in Solan and marketing department at Delhi. Which type of
organisational structure the company should adopt to achieve its target?
a) Functional Structure
b) Divisional Structure
c) Formal Structure
d) Informal Structure
Q-60) Geetika Scooters Ltd. are the leading manufacturers of scooters in the industry. They (1)
have the first mover advantage in the industry. When they started manufacturing
scooters, no other company was doing it. They manufacture scooters and the middle
class prefer their product in large numbers. The company is aiming at maximization of
profits by leveraging on economies of scale and thus reducing its average cost of
production.
Identify the marketing management philosophy highlighted in the above case.
a) Production Concept
b) Product Concept
c) Marketing Concept
d) Selling Concept
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