Research is highly organized and systematic study of existing data with an objective of getting a conclusion to a fact, business research finds answers to problems facing in the management, it explores, diagnose a phenomenon. A hypothesis helps a researcher to frame a suitable design and this hypothesis has to be testable and verified using some kind of statistical test. Hypothesis tests are parametric test which are based on some assumptions about population and non-parametric which are not dependent on the assumptions regarding a population distribution. The chi-square test can be used as parametric as well as nonparametric test for comparing the variance of the population; as a test of independence or as a test of goodness of fit ,it is one of the commonly used test and is widely applicable in the field of research to draw the significant conclusions. This paper gives a overview of Chi-square test, its conditions for use merits, demerits and application in Business and Management research.