Term 1 MCQs for Business Studies Class 12

Term 1 MCQs for Business Studies Class 12

In this section, there are some important Chapter wise Business Studies MCQ’s for class 12. The questions are based on the new pattern for Term 1. CBSE’s Multiple Choice Question Based Term 1 examination will be held in December 2021.

 

Multiple Choice Questions for Chapter-1 Organising

1. The process of combining or grouping similar jobs into larger units called –

a) Organizing

b) Centalisation

c) Departmentalisation

d) Decentralisation

Show Answer

c) Departmentalisation

 

2. Which function of management coordinates human efforts and assembles resources and integrates all for achieving organization objectives ?

a) Planning

b) organizing

c) Directing

d ) Controlling

 

Show Answer

b) organizing

 

3. Which of the following is an ideal situation ?

a) Authority > Responsibility

b) Authority < Responsibility

c) Authority = Responsibility

d) None of the above

 

Show Answer

c) Authority = Responsibility

 

4. Which of the following cannot be delegated ?

a) Authority

b) Responsibility

c) Accountability

d) None of these

Show Answer

c) Accountability

 

5. Which type of Organisational Structure Facilitates occupational specialization ?

a) Divisional Structure

b) Functional Structure

c) Formal Structure

d) Informal Structure

 

Show Answer

b) Functional Structure

 

6. Arrange the Organising Process in correct order :-

I- Estabilishing reporting relationship

II- Identification and division of work

III- Departmentalisation

IV- Assignment of duties

Correct order would be –

a) I,II ,III , IV

b) II,III ,IV,I

c) I ,III ,II , IV

d) III ,II ,I,IV

 

Show Answer

b) II,III ,IV,I

 

7. The concept which helps a manager to extend his area of operations, as without it his activities would be restricted

a) Delegation

b) Decentralisation

c) Centralisation

d) None of these

Show Answer

a) Delegation

 

8. The framework within which operating and managerial task are performed –

a) Delegation of Authority

b) Centralisation

c) Decentralisation

d) Organisation Structure

Show Answer

d) Organisation Structure

 

9.  Responsibility Flows-

a) Upwards

b) Downwards

c) Diagonally

d) None of these

Show Answer

a) Upwards

 

10. Span of Management refers to-

a) Framework within which managerial activities are performed

b) Clearly defines Rules and Regulations

c) Number of subordinates that are effectively managed by a superior

d) None of these

Show Answer

c) Number of subordinates that are effectively managed by a superior

 

11.  The type of Organisational Structure which promotes flexibility and initiative –

a) Functional Structure

b) Divisional Structure

c) Decentralisation

d) All of these

Show Answer

b) Divisional Structure

 

12.  How many persons are involved in the process of delegation ?

a) Two

b) Three

c) Ten

d) Many

Show Answer

a) Two

 

CASE BASED MULTIPLE CHOICE QUESTIONS

Mr. Sindhu is the general manager of Air Purifier Manufacturing Company in Delhi. The Directors want to expand the business operations and As per the resolution passed in meeting , it is decided that a new branch will be started in Mumbai also .

It is also decided to appoint Mr.Sanchit , his subordinates to take charge of company’s new office in Mumbai Mr.Sindhu grants necessary authority to Mr. Sanchit so that he can fulfill his all responsibilities .

However, within three months of feedback about Mr. Sanchit . Mr. Sindhu realizes that Mr. Sanchit is not doing the work as per instructions and expectations . He decided to take away the authority from Sanchit and redelegate the same to Mr. Ankur ,one of his another subordinate .

Due to this change in managerial position at the Mumbai office ,the work suffer a lot and the company is not able to meet the desired goals.

 

13. Why is Mr. Sanchit supposed to give regular feedback about his work to Mr. Sindhu ?

a) As he has granted authority

b) As he has given responsibility

c) both a and b

d) none of the above

Show Answer

c) both a and b

 

14.  Can Mr. Sanchit be held responsible for not meeting the work allotted to him ?

a) Yes , it is obligation of subordinates to perform the assigned duties to the best of his ability

b) No , Mr. Sanchit was not held responsible as he is only subordinate of Mr Sindhu

c) Mr. Sanchit may or may not be responsible

d) Mr. Sindhu will be held responsible

Show Answer

a) Yes , it is obligation of subordinates to perform the assigned duties to the best of his ability

 

15. Can Mr.Sindhu take back the authority granted to Mr. Sanchit and redelegate to another ?

a) No, Mr. Sindhu cannot take back the authority once delegated

b) yes, Mr. Sindhu can take back the authority and redelegate to another

c) Mr. Ankur cannot take the charge in place of Mr. Sanchit

d) none of these

Show Answer

b) yes, Mr. Sindhu can take back the authority and redelegate to another

 

16.  Responsibility is derived from __________ and Accountability is derived from _________ .

a) Accountability , Authority

b) Accountability , Responsibility

c) Authority , Responsibility

d) None of the above

Show Answer

c) Authority , Responsibility

 

ASSERTION –REASON MULTIPLE CHOICE QUESTIONS

17.  Assertion : Decentralisation is an optional policy.

Reason : Decentralisation is the outcome of the policy decision taken by the top management .

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion

c) Assertion is true but Reason is false

d) Assertion is false but reason is true

Show Answer

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion

 

18. Assertion :- It is essential for effective performance that a proper match is made between the nature of job and the ability of an individual.

Reason :- The work is divided into manageable activities which are similar in nature and then grouped together .

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion .

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion .

c) Assertion is true but Reason is false .

d) Assertion is false but reason is true .

Show Answer

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion .

 

19. Assertion :Pursuing departmental interest at the cost of organizational interest can hinder the interaction between two or more departments .

Reason :- A manager when gain power in the organization and have independence ,may ignore organizational interest .

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion .

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion .

c) Assertion is true but Reason is false .

d) Assertion is false but reason is true .

Show Answer

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion .

 

20. Assertion : Avoidance of duplication of work helps in preventing confusion .

Reason : Organising leads to proper usage of raw material , financial resources and human resources .

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion.

b)Both Assertion and Reason are true but Reason is not the correct explanation of Assertion.

c) Assertion is true but Reason is false.

d) Assertion is false but reason is true .

Show Answer

a) Both Assertion and Reason are true and Reason is the correct explanation of Assertion .

 

LESSON:

1. A rational approach for achieving predetermined targets is provided by which of the following function of management?

a) Organizing

b) Directing

c) Planning

d) Controlling

Show Answer

c) Planning

 

2. Identify the incorrect statement(s) .

Statement 1: Planning is concerned with both ends and means.

Statement 2: Planning helps in selecting the best possible alternative from available courses of action to achieve desired objectives.

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

Show Answer

d) Neither 1 nor 2

 

3. Which of the following component of business can be anticipated with the help of planning and though it cannot be completely eliminated, but can be reduced?

a) Objectives

b) Business risk

c) Loss

d) Theft

Show Answer

b) Business risk

 

4. Under which of the following situations, need for planning arises?

a) Only one way available

b) Alternatives available

c) No choice

d) All of these

Show Answer

b) Alternatives available

 

5. Planning cycle ensures that planning remains a continuous process. Which of the following is /are step(s)under planning cycle?

a) Plan is implemented

b) Deviations are measured

c) New plan is made

d) Both A and C

Show Answer

d) Both A and C

 

6. Ram works as manager in a top company. In his company plans are based on guesswork of his boss and does not involve any rational thinking process. The plans are framed in a random manner. This results in non-achievement of targets. Which of the following changes should be introduced in the way of planning in this case?

a) Orderly

b) Logical and systematic thinking

c) Rule of thumb

d) Both A and B

 

Show Answer

d) Both A and B

 

7. The planning function of management involves making decisions. For this purpose which of the following step(s) are undertaken by management for choosing among various alternatives present?

a) Identification of alternatives

b) Evaluation of alternatives

c) Implementation of decision

d) Both A and B

 

Show Answer

d) Both A and B

 

8. Reema works in a corporate firm. There work is done randomly, as per the mood and preferences of their boss. This leads to ineffective performance and lethargy on part of workers as well. Which of the following function of management is ignored by the firm?

a) Controlling

b) Motivation

c) Setting of objectives

d) Planning

 

Show Answer

d) Planning

 

9. Assertion (A) – All other functions of management except planning i.e., organizing, staffing, directing, controlling etc. are performed within the framework of plans drawn.

Reason (R) – Planning is primary function of management

a) Both A and R are true. 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 correct, but R is incorrect.

d) A is incorrect, but R is correct.

 

Show Answer

a) Both A and R are true. R is the correct explanation of A. b) Both A and R are true, but R is not the correct explanation of A.

 

10. Identify the statement is true or false.

If heavy cost is incurred on planning process, then results derived will definitely justify the burden of cost incurred by the management.

a) False

b) True

c) Can’t say

d) Inadequate data

 

Show Answer

a) False

 

11. If employees do not bother to understand the plans and just go on implementing it, then which of the following component will be lacking in the plans?

a) Logic

b) Rationality

c) Creativity

d) Science

 

Show Answer

c) Creativity

 

12. Assertion (A) – A business firm prepares its annual plan for production and sales on the basis of sales forecasting.

Reason (R) – Planning is futuristic in nature.

a) Both A and R are true. 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 correct, but R is incorrect.

d) A is incorrect, but R is correct.

 

Show Answer

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

 

13. Sam worked as an operation manager in a firm. He received plans from the top management which he was to implement . the plans couldn’t be implemented as it was , because of some changes in related laws .But he couldn’t modify them due to one of limitation of planning.Identify the limitation highlighted here .

a) Reduces creativ

b) Planning is rigid

c) Flexible process

d) Involves huge cost

Show Answer

b) Planning is rigid

 

14. Sheena was planning the next project of her company. She had time span of 30 days for this project. She estimated that around 10 days will be required in planning. She kept this big slot for planning, due to which of the following limitation of planning function?

a) No guarantee of success

b) Costly process

c) Reduces creativity

d) Time consuming process

Show Answer

d) Time consuming process

 

15. Identify the correct statement.

Statement 1: If plans are properly drawn, then success of the organization is guaranteed.

Statement 2: In terms of time, money and others, huge cost is involved in the process of planning.

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

 

Show Answer

b) Only 2

 

16. Identify the correct statement.

Statement 1: Adhering of plans is not always possible, therefore planning function should be avoided by the management.

Statement 2: Once made, plans cannot be modified even if any unforeseen event arises.

a) Only 1

b) Only 2

c) Both 1 and 2

d) Neither 1 nor 2

Show Answer

d) Neither 1 nor 2

 

Answer: d) Neither 1 nor 2

17. According to which of the following aspect basically, the alternatives are evaluated so as to achieve desired objectives?

a) Feasibility

b) Profit

c) Risk

d) Revenue

Show Answer

a) Feasibility

 

18. Under which of the following steps of planning process, resources are organized and plans are put into action?

a) Evaluating alternatives

b) Follow up

c) Implementation of plans

d) Setting objectives

Show Answer

c) Implementation of plans

 

19. Sam works as manager in a software company. He is responsible for performing the planning function of management in the organization. Therefore, Sam and his team followed the planning process and plans were implemented. But, after that he did not bother to check the implementation and this lead to non-achievement of targets. Which of the following step of planning process is missed by Sam?

a) Evaluation of alternatives

b) Developing premises

c) Setting of objectives

d) Follow-up action

Show Answer

d) Follow-up action

 

20. Planners need various materials that act as a base for their plans. Which of the following provide base to the plans?

a) Past experience

b) Logical thinking

c) Guess work

d) Both A and B

 

Show Answer

d) Both A and B

 

MARKETING MANAGEMENT

1. _____________ of products and services include activities that communicate features and merits of the products to the target customers and persuade them to buy.

 

2. Which of the following ensures the marketer that there should not be a time gap between the production of goods and their sale:

a) Transportation

b) Warehousing

c) Branding

d) Promotion

 

3. A popular brand of Hair Conditioners comes in different categories for different hair, say for normal hair and for other categories. Which function of labeling is highlighted here:

a) Specifies its content

b) Helps in promotion

c) Product branding

d) Grading of product

 

4. Consumer activist groups need to be satisfied as they can impose restriction on the sale of the firm’s product directly. Name the element of promotion mix in the above statement.

5. Apart from customer satisfaction, which of the following concept pays attention to the social, ethical and ecological aspects of marketing:

a) Product

b) Production

c) Societal

d) marketing

 

6. “Satisfying needs of target market better than the competitors” is the main focus of traditional sense of marketing or modern sense of marketing?

7. A marketer job in an organization is to identify ___________ of the target customers and develop products, that gives them satisfaction.

a) Need

b) Motive

c) Want

d) desire

 

8. The _________________ concept holds that consumers will favor products that are available and highly affordable.

a) Marketing

b) Selling

c) Product

d) Production

 

9. The term marketing mix describes:

a) A composite analysis of all environmental factors inside and outside the firm.

b) A series of business decisions that help in selling a product

c) The relationship between a firm’s marketing strength and its business weaknesses

d) A blending of 4 strategic elements to satisfy specific target markets.

 

10. Newsletters, catalogues and invitations to organization sponsored events are most closely associated with the marketing mix activity of :

a) Pricing

b) Distribution

c) Product development

d) Promotion

 

11. A marketing philosophy summarized by the phrase “a good product will sell itself”, is a characteristic of the ______________ concept:

a) Societal

b) Production

c) Marketing

d) Product

 

12. Diversification is best described as which of the following:

a) Existing product in new markets

b) Existing products in existing markets

c) New products for new markets

d) New products for existing markets

 

13. ______________ is a strategy of using a successful brand name to launch a new or modified product in a new category.

a) Branding

b) Brand extension

c) Multi branding

d) New product development

 

14. Segmentation is the process of –

a) Dividing the market into homogeneous groups

b) Selling one group of consumers among several other groups

c) Creating a unique space in the minds of the target consumer

d) None of these

 

15. The emotional attachment of a consumer towards a brand is known as:

a) Brand association

b) Brand loyalty

c) Brand awareness

d) None of the above

 

Question No 16-18 are based on the following Paragraph:

Sara is very thirsty. She is on a vacation at Jodhpur. Soon she finds a cold drinks shop. She goes and purchases two bottles and drinks them to satisfy her thirst. After drinking the cold drink she realizes that it has been developed after analyzing the preferences of the potential customers. On observing the outer side of the bottle he finds details finds contents, flavor, size, price etc.

16. What is Cold Drink and Thirst here in relation to each other?

a) Want & need

b) Want & desire

c) Need & desire

d) None of the above

 

17. Identify the feature of marketing which has been highlighted here.

a) Creating market offering

b) Customer value

c) Exchange mechanism

d) Focuses on the needs & wants

 

18. “On observing the outer side of the bottle he finds details like content, flavor, size, price etc”. Name the product related decision taken by the marketer.

a) Branding

b) Packaging

c) Labeling

d) Brand loyalty

 

19. Mansi went for shopping to buy a bag for her friend’s birthday. She was delighted when on payment she got a box along with the bag free of cost. Identify the element of promotion mix used by the company.

20. Mahabali enterprises, entered into the market with cycle and have now introduced Electric Scooty and bikes. The company is not only offering the products but also handling complaints and offering after sales services. Identify the element of marketing mix discussed above.

a) Place

b) Promotion

c) Price

d) Product

 

Chapter – Business Environment

Case-based.

Read the following text and answer Q1 to Q4.

CREA is an award-winning, innovation led carry solution company. When the first lockdown was announced in March 2020 to restrict the spread of the novel Coronavirus the company had its gameplan ready. The firm, which designs and manufactures bags for a diverse clientele, spans across cosmetics, fashion travel, health and fitness and apparel , quickly pivoted its business. The moment they saw the global lockdowns were in process , they understood that it is going to be a while before the business flourishes again. They immediately acted and started manufacturing PPE kits,masks etc. required during these tough times. They spent five months making PPE kits for the healthcare heroes. Many businesses change track during the lockdown to meet the consumer demand. But the demand curve is again undergoing a shift, post the various unlock faces, it might mean fight for flight for various MSMEs in the country.

 

1. Which forces have been covered by the CERA in the above case ?

a) Specific forces

b) General forces

c) Both specific and general forces

d) None of these

 

Show Answer

c) Both specific and general forces

 

2. Name the related feature of the business environment which has influenced the business of CREA ?

a) Totality of External forces.

b) Dynamic nature.

c) Interrelatedness

d) Uncertainty

 

Show Answer

b) Dynamic nature

 

3. The above case highlights one of the points related to the importance of the business environment and its understanding which led the managers to do well even in lock down. Identify it.

a) It helps in coping with rapid changes.

b) It helps in improving performance.

c) It helps the firm to identify threats and early warning signals.

d) It enables the firm to identify opportunities and getting the first mover advantage.

 

Show Answer

a) It helps in coping with rapid changes.

 

4. Identify the related dimensions of the business environment which led to the sudden spur in demand for masks and PPE kits ?

a) Social dimension

b) Technological dimension

c) Economic dimension

d) Legal dimension

 

Show Answer

d) Legal dimension

 

Q5. Assertion (A) : Agricultural and industrial production trends affect the business environment.

Reason (R): Technological environment like agriculture and industrial production trends have modified the ways to produce and distribute goods through improved methods and techniques.

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.

 

Show Answer

c) A is true but R is false. 

Explanation: Agricultural and industrial production trends are elements of economic environment and not of technological environment.

 

6. Assertion : Entry of new players in the market may make an enterprise think afresh about how to deal with the situations.

Reason : Business environment assists in planning and policy formulation.

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.

 

Show Answer

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

 

7. Since more people have become more beauty and health conscious, our economy has witnessed an unprecedented surge in the number of health and beauty spas and wellness clinics. Related feature of the business environment being described in the above lines is ___________.

a) Totality of External forces

b) Dynamic

c) Interrelatedness

d) Relativity

Show Answer

c) Interrelatedness

 

8. Twinkle Stars’ is a well-known resort for organising parties, especially for children. However, in the past 6 months its popularity has reduced considerably as a new resort with better ambience and facilities has opened within its vicinity. Name the related feature of the business environment which has influenced the business of ‘Twinkle Stars’ adversely.

a) Totality of external forces

b) Dynamic

c) Inter-relatedness

d) Uncertainty

 

Show Answer

b) Dynamic

 

9. According to the United Nations Environmental Agency, the world produces around 300 million tons of plastic each year, half of which constitutes single-use items. Ford is recycling over one billion plastic bottles every year to develop elements of the car’s interior, reducing the amount of plastic ending up in a landfill. The American car maker has revealed that their Romanian-built EcoSport SUVs’ carpets are made using 470 recycled single-use plastic bottles. The process for making Ford EcoSport carpets involves shredding bottles and their caps into tiny flakes and then heating them to 260° C. Identify the related dimension of the business environment.

a) Economic

b) Social

c) Technological

d) Political

 

Show Answer

c) Technological

 

10. Electric vehicles with zero tailpipe emission are emerging as a good alternative to the problems like climate change, surging pollution leading to ill health, crude import bill and energy security. Identify the related dimensions of the business environment.

a) Economic, legal , social

b) Social , Political and Economic

c) Economic, technological and social

d) Social, Political and legal

 

Show Answer

c) Economic, technological and social

 

11. Yo Tummy’ began its business by offering the classic combo of hamburgers and fries. But over time, their customers wanted healthier foods, so ‘Yo Tummy’ responded and began offering healthy alternatives such as salads, fruits, wraps and oatmeal. If ‘Yo Tummy’ hadn’t responded, they may have lost customers that wanted to eat healthier foods. The above case highlights one of the points related to the importance of the business environment and its understanding by managers. Identify it.

a) It helps in coping with rapid changes .

b) It helps in improving performance.

c) It helps in identifying threats and getting early warning signals.

d) It helps in identifying opportunities and getting first mover advantage

 

Show Answer

a) It helps in coping with rapid changes .

 

12. Assertion (A) : Suppliers affect any business directly but the political environment affects it indirectly.

Reason (R) : Business environment is a relative term . It differs from country to country and region to region .

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.

 

Show Answer

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

 

13. Match the column with respective features .

1) Dynamic                           I. Easier to understand in parts but difficult to grasp in totality

2) Uncertainty                      II. Different political conditions in different nations

3) Complexity                       III. Difficult to predict the future events

4) Relativity                           IV. Technological improvements. Find the correct option

 

(a) 1-IV, 2-III, 3-I ,4-II

(b) 1-IV , 2-III, 3-II ,4-I

(c) 1-III, 2-IV , 3-I , 4-II

(d) 1-I, 2-II , 3-III , 4-IV

 

Show Answer

(a) 1-IV, 2-III, 3-I ,4-II

 

14. Which of the following is an example of a political environment?

a) India is signing double taxation avoidance agreements with a number of countries.

b) Good educational institutions are in great demand.

c) Rates of saving in India are high as compared to other countries.

d) New models of mobile phones are rich in features.

 

Show Answer

a) India is signing double taxation avoidance agreements with a number of countries.

 

15. The purpose of introduction of GST was to introduce one nation and one tax, was to ease the taxation system of the economy, ease in doing business and removal of multiple taxes. Which components of the business environment are involved in the implementation of GST?

a) Legal and political.

b) Political and economic.

c) Economic and legal.

d) Social and legal.

 

Show Answer

c) Economic and legal.

 

16. During the period of COVID-19 the cinema halls even after reopening really faced a lot of loss in revenue. Which dimension of the business environment is responsible for the loss in revenue?

a) Legal environment.

b) Social environment.

c) Technological environment.

d) Political environment.

 

Show Answer

b) Social environment.

 

17. Which of the following is an example of an economic environment?

a) Demand for automatic machines and luxury items in middle class families.

b) Permission to the private sector for entering into the financial sector.

c) Replacement of traditional watches with digital watches.

d) Delicensing policy of industries.

Show Answer

a) Demand for automatic machines and luxury items in middle class families.

 

18. Hindustan Unilever Ltd launched fairness cream, fair and lovely in 1975 which was gender neutral. Later it launched ‘glow and lovely’ and ‘glow and handsome’ for females and males respectively. It was hit by a trademark hurdle with its rival Emami which claimed that it was an unfair business practice to use a similar name with Emami glow and handsome. Which component of the business environment does it relate to?

a) Legal environment.

b) Social environment.

c) Technological environment

d) Political environment

 

Show Answer

a) Legal environment.

 

19. Seeing the surge in demand of sanitisers, several Indian companies were found supplying sanitisers without GST. Which component of the business environment does this relate to?

a) Legal Environment.

b) Social environment.

c) Technological environment.

d) Economic environment.

Answer : (d) Economic Environment

Show Answer

d) Economic environment.

 

20. “Sudden announcement of lockdown in the entire country by our Prime Minister” is an example of which feature of the business environment?

a) Relativity.

b) Specific and general forces.

c) Uncertainty.

d) Inter-relatedness.

 

Show Answer

c) Uncertainty.

 

CASE STUDY BASED QUESTIONS

NATURE AND SIGNIFICANCE OF MANAGEMENT

Three teams of employees of XYZ Ltd. Are working at different positions.

a) Team A is responsible for survival and growth of organization. Team A continuously keeps a watch over the business environment with a view of coping with the changes in the business environment. Team A immediately discusses the change to be brought about in company’s plan.

b) Team B explains the policies of superiors to the employees and ensures a touch of cooperation among all the departments.

c) Team C is responsible for maintaining quality and safety standards and minimize the wastage.

 

1. “Team A immediately discusses the change to be brought about in company’s plan” Which level of management is highlighted in this context?

a) Top Level Management

b) Middle Level Management

c) Lower Level Management

d) None of these

 

Show Answer

a) Top Level Management

 

2. “Team B explains the policies of superiors to the employees”. Which level of management is highlighted in this context?

a) Top Level Management

b) Middle Level Management

c) Lower Level Management

d) None of these

 

Show Answer

b) Middle Level Management

 

3.  “Team C is responsible for maintaining quality and safety standards and minimize the wastage.”Which level of management is highlighted in this context?

a) Top Level Management

b) Middle Level Management

c) Lower Level Management

d) None of these

 

Show Answer

c) Lower Level Management

 

Management consists of a series of interrelated functions that are performed by all managers, for examples, managers have to plan the objective of the firm, organize resources to achieve that objective, recruit and select employees who can implement these objectives. Giving directions, communicating and motivating these employees to achieve objectives effectively and efficiently and ultimately checking whether everything is going as per plan or not.

4.  By communicating and motivating, the manager performs which function of management?

a) Planning

b) Organising

c) Staffing

d) Directing

 

Show Answer

d) Directing

 

5. By setting up of objective, management performs which function?

a) Planning

b) Organising

c) Staffing

d) Directing

Answer : a) Planning

Show Answer

a) Planning

 

6.  “Ultimately checking whether everything is going as per plan or not”, this line indicates which function of management?

a) Planning

b) Organising

c) Staffing

d) Controlling

 

Show Answer

d) Controlling

 

7.  By recruiting and selecting of employees for implementing the objectives, Manager performs which function?

a) Planning

b) Organising

c) Staffing

d) Directing

 

Show Answer

c) Staffing

 

The purchase manager of a leading book shop maintains stock on continuous basis. It helps him to place orders well in advance, thus avoid facing the situation of stock shortage. This way he is able to save on delivery cost and maintain his stock levels. He is already ready to fulfill customer’s need well in time.

 

8. Identify the importance of management highlighted in the above case.

a) Management creates a Dynamic Organisation

b) Management Helps in Achieving Personal Objectives

c) Management helps in Achieving Group Goals

d) Management Increases Efficiency

 

Show Answer

d) Management Increases Efficiency

 

9.  The subject of management is taught at different institutions. Some of these have been set up with the specific purpose of providing management education such as the Indian Institutes of Management (IIMs) in India. Entry to different institutes is usually through an examination. Which aspect of management is highlighted in aforesaid statement?

a) Management as a science

b) Management as an art

c) Management as a science and an art

d) Management as a profession

 

Show Answer

d) Management as a profession

 

10. A company’s target production is 1000 bicycles in a year. To achieve this target the manager to operate has to operate an double shifts due to power failure most of the time. The manager is able to produce 1000 bicycles but at a higher production cost. In this case the manager is:

a) Effective

b) Efficient

c) Neither efficient nor effective

d) Efficient as well as effective

 

Show Answer

a) Effective

 

11. Which of the following is not a characteristics of a profession?

a) Restricted Entry

b) Service Motive

c) Well-defined body of knowledge

d) Based on creativity

 

Show Answer

d) Based on creativity

 

12. Which managerial function ensures that the right people with the right qualifications are available at the right place and time to accomplish the goals of the organisation:

a) Planning

b) Organising

c) Staffing

d) Directing

 

Show Answer

c) Staffing

 

13.  Your Grandmother is retired as the Medical Superintendent of a firm. At which level of management was she working:

a) Top Level Management

b) Middle Level Management

c) Lower Level Management

d) None of these

 

Show Answer

b) Middle Level Management

 

14.  “Doctors have to get themselves registered with Medical Council of India and lawyers with Bar Council of India.”

In the above context, Which feature of profession is highlighted?

a) Restricted Entry

b) Existence of ethical code

c) Professional Associations

d) Service Motive

 

Show Answer

c) Professional Associations

 

15.  On introduction of any changes in the firm, all employees hesitate to accept the changes, Managers convince the employees and guide them to adopt the changes willingly.

This is related to which importance of management.

a) Management help in achieving group goal

b) Management increases efficiency

c) Management creates a dynamic organisation

d) Management helps in achieving personal objectives

 

Show Answer

c) Management creates a dynamic organisation

 

 

16. Indus Ltd. has decided to contribute to Swaach Bharat Abhiyan by cleaning all plastics from Ganga river. Which objective of management is highlighted by this act of the Indus Ltd. Company?

a) Organisational Objective

b) Social Objective

c) Personal Objective

d) None of these

 

Show Answer

b) Social Objective

 

17.  “When all the departments have their own objectives, policies and their own style of working.”

Identify the importance of coordination in the given context.

a) Growth in size

b) Functional Differentiation

c) Specialisation

d) None of these

 

Show Answer

b) Functional Differentiation

 

18.  _________, is not a separate function of management, but its essence.

a) Controlling

b) Planning

c) Coordination

d) None of these

 

Show Answer

c) Coordination

 

19.  In which characteristic of management, a manager replaces ‘I’ with ‘We’.

a) Management is a Continuous Process

b) Management is a Group Activity

c) Management is a Dynamic Function

d) None of these

 

Show Answer

b) Management is a Group Activity

 

20.  “There are many qualified singers and cricketers but Lata Mangeshkar and Sachin Tendulkar has achieved the highest degree of success.”

In the above lines, Identify the characteristics of an Art?

a) Existence of Theoretical knowledge

b) Creativity

c) Based on Practice and Creativity

d) Personalised Application

 

Show Answer

d) Personalised Application

 

Chapter-Principles of management

Read the following text and answer the following questions on the basis of the same:

After completing her Bachelors in Fashion Designing from a well-known college in France, Aditi has opened a boutique in a posh market in Kolkata. She has divided the work in smaller units and each employee is well trained to perform his/her task efficiently. The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.

In the earlier period of her business venture, employees were asked to put in extra hours of work. In return she had promised to give them a special incentive within a year. Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees. She also instructed her employees that communication from top to bottom should follow the official lines of command. However, she tends to be more biased towards her female employees, when it comes to solve the conflicts among employees.

1. Aditi has divided the work in smaller units and each employee is well trained to perform his/ her task efficiently. Which principle of management is being followed here?

a) Centralization and Decentralization

b) Division of work

c) Discipline

d) Order

 

Show Answer

b) Division of work

 

2. “The sales persons are allowed to close a deal with a buyer by giving a maximum of 5 percent discount, whereas the decision to give any further discount rests with Aditi as the final authority.” Identify the principle of management being followed here:

a) Centralization and Decentralisation

b) Authority and Responsibility

c) Unity of Command

d) Unity of Direction

 

Show Answer

a) Centralization and Decentralisation

 

3. “Therefore, when the business was doing well, she honoured her commitment by giving bonus to her employees.” Which principle of management is being highlighted here?

a) Discipline

b) Order

c) Remuneration to Employees

d) Unity of Direction

 

Show Answer

a) Discipline

 

4. Aditi tends to be more biased towards her female employees, when it comes to solve the conflicts among employees. Which principle is being violated here?

a) Discipline

b) Order

c) Equity

d) None of these

 

Show Answer

c) Equity

 

Read the following text and answer the following questions on the basis of the same:

Damini D’Souza took over the reins of Kinsa Retail’ as its managing director in India. Kinsa Retail with its headquarters at Japan has been in retail business for the last 40 years. It has regional offices in many countries with each regional office taking care of the shops in that particular region. As it is a large organisation, the regional officers have been given the powers to decide and spend funds sanctioned to them by the headquarter for the welfare of the customers of the region.

Kinsa Retail wants the highest possible standards of ethical conduct being followed for which a code of conduct is in place for putting values into practice. All employees as well as Board members are required to

act in accordance with the highest standards of personal and professional integrity when acting on behalf of the company. Non-compliance involves a heavy penalty including termination of employment. The management of Kinsa Retail firmly believes that the principles of management are not rigid prescriptions which have to be followed absolutely. Rather, the application of principles of management is dependent upon the prevailing situation at a particular point of time. Their application has to be changed as per requirements. Kinsa Retail selects and appoints personnel after due and rigorous procedure. But once selected, they are given reasonable time to show results. All the employees are happy and satisfied working in the organisation.

 

5. As it is a large organisation, the regional officers have been given the powers to decide and spend funds sanctioned to them by the headquarter for the welfare of the customers of the region. Identify the principle of management discussed here.

a) Authority and responsibility

b) Division of work

c) Centralisation and decentralisation

d) Order

 

Show Answer

c) Centralisation and decentralisation

 

6. All employees as well as Board members are required to act in accordance with the highest standards of personal and professional integrity when acting on behalf of the company. Non-compliance involves a heavy penalty including termination of employment. Identify the principle of management discussed here.

a) Discipline

b) Standardisation and simplification of work

c) Esprit De Corps

d) Initiative

 

Show Answer

a) Discipline

 

7. The management of Kinsa Retail firmly believes that the principles of management are not rigid prescriptions which have to be followed absolutely. Rather, the application of principles of management is dependent upon the prevailing situation at a particular point of time. Their application has to be changed as per requirements. What nature of management principles has been highlighted here?

a) Universal applicability

b) Flexibility

c) Contingent

d) Mainly behavioural

 

Show Answer

c) Contingent

 

8. Kinsa Retail selects and appoints personnel after due and rigorous procedure. But once selected, they are given reasonable time to show results. All the employees are happy and satisfied working in the organisation. Identify the principle of management discussed here.

a) Equity

b) Subordination of individual interest to general interest

c) Stability of personnel

d) Initiative

 

Show Answer

c) Stability of personnel

 

Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case:

9. Assertion(A): Principles of management are mainly behavioural in nature.

Reason (R): Management principles aims at influencing behaviour of human beings.

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 but Reason (R )is not the correct explanation of Assertion( A)

c) Assertion (A) is true and Reason(R) is false.

d) Assertion (A) is false and Reason(R) is true.

Show Answer

a) Both Assertion (A) and Reason (R) are true and Reason (R ) is the correct explanation of Assertion (A).

 

10. Assertion(A): Principles of management establish accurate cause and effect relationship.

Reason (R): The principles of management tell us if a particular principle was applied in a particular situation, what would be its likely effect.

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 but Reason (R )is not the correct explanation of Assertion( A)

c )Assertion (A) is true and Reason(R) is false.

d)Assertion (A) is false and Reason(R) is true.

 

Show Answer

d)Assertion (A) is false and Reason(R) is true.

 

 

11. Assertion(A): Prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for employees and vice versa.

Reason (R): The principle of scientific management highlighted here is “Harmony, not discord”. Taylor recognised that ‘managers versus workers’ conflict helped none, the workers, the managers or the factory owners. He emphasised that there should be complete harmony between the management and workers. Both should realise that each one is important.

a) Both Assertion (A) and Reason (R) are true and Reason ® is correct explanation of Assertion (R)

b) Both Assertion (A) and Reason (R) are true but Reason (R ) is not the correct explanation of Assertion A)

c) Assertion (A) is true and Reason(R) is false.

d) Assertion (A) is false and Reason(R) is true.

 

Show Answer

a) Both Assertion (A) and Reason (R) are true and Reason ® is correct explanation of Assertion (R)

 

12. Assertion(A): There should be an almost equal division of work and responsibility between workers and management.

Reason (R): The principle of scientific management highlighted here is “Cooperation, not individualism”. Management should work almost side-by-side with the workers helping, encouraging and smoothing the way for them. Management should not close its ears to any constructive suggestions made by the employees. They should be rewarded for their suggestions which results in substantial reduction in cost.

a) Both Assertion (A) and Reason (R) are true and Reason R is correct explanation of Assertion A

b) Both Assertion (A) and Reason (R) are true but Reason R is not correct explanation of Assertion R.

c) Assertion (A) is true and Reason(R) is false.

d) Assertion (A) is false and Reason(R) is true.

 

Show Answer

a) Both Assertion (A) and Reason (R) are true and Reason R is correct explanation of Assertion A

 

13. Assertion(A): The intent of division of work is to produce more and better work for the same effort. Specialisation is the most efficient way to use eminent human effort.

Reason (R): The principle of management highlighted here is “Division of work”. In business ,work can be performed more efficiently if it is divided into special tasks; each performed by a specialist or trained employee. This results in efficient and effective output.

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 but Reason R is not the correct explanation of Assertion A.

c) Assertion (A) is true and Reason(R) is false.

d) Assertion (A) is false and Reason(R) is true.

 

Show Answer

a) Both Assertion (A) and Reason (R) are true and Reason R is the correct explanation of Assertion A.

 

14. The sales manager assigned a target of selling 50 electronic irons in one month to a group of 10 sales executives. They mutually decided to sell five electric irons each. However, after selling one electric iron, Arun (one of the sales executives) met with an accident. The other sales executives did not pay any attention to the remaining target of Arun and concentrated on their individual sales target. At the end of the month, only 46 electric irons could be sold. Identify the principle of management violated in the given case:

a) Discipline

b) Esprit De Corps

c) Subordination of individual interest to general interest

d) None of these

 

Show Answer

b) Esprit De Corps

 

15. In the festive season Kapoor industries (manufacturers of gift items) decided to reduce the rest interval of workers from 40 minutes to just eight minutes. However due to heavy workload and reduction in time of rest interval, the workers efficiency level went down and it led to fall in production level instead of rising. Which technique of scientific management should be followed by Kapoor industries?

a) Time study

b) Fatigue study

c) Motion study

d) None of these

 

Show Answer

b) Fatigue study

 

16. “Panchayats in our country have been given more powers to decide and spend funds granted to them by the government for welfare of villagers.” Identify the principle of management highlighted in the statement.

a) Equity

b) Centralisation and decentralisation

c) Authority and responsibility

d) Esprit de corps

 

Show Answer

b) Centralisation and decentralisation

 

17. Karan Nath took over ‘D’ north Motor Company’ from his ailing father three months ago. In the past the company was not performing well. Karan was determined to improve the company’s performance. He observed that the methods of production as well as selection of employees in the company were not scientific. He believed that there was only one best method to maximise efficiency. He also felt that once the method is developed, the workers of the company should be trained to learn that ‘best method’. He asked the production manager to develop the best method and carry out the necessary training. The production manager developed this method using several parameters right from deciding the sequence of operations, place for men, machines and raw materials till the delivery of the product to the customers. This method was implemented throughout the organisation. It helped in increasing the output, improving the quality and reducing the cost and wastage.

Identify the principles of scientific management being discussed above:

a) Science, not rule of thumb

b) Development of each and every person to his or greatest efficiency and prosperity

c) Harmony, not discord

d) Both a and b

 

Show Answer

d) Both a and b

 

18. A Production Manager set a target to manufacture 2,000 shirts in 2 months and accordingly divided the work among 10 employees. One of the workers fell ill and took medical leave for a month. The production manager divided his work among other workers in order to achieve the target on time. The workers cooperated for achievement of targets.

Which principle of management is highlighted here?

a) Initiative

b) Scalar chain

c) Esprit De Corps

d) Unity of direction

 

Show Answer

c) Esprit De Corps

 

19. Beena, a student of management, likes to relate what she learnt in class to real life situations. She observed many situations while watching educational programmes on television that remind her of concepts of scientific Management. In one such programme, factories manufacturing parts for products like automobiles, computers and mobile phones were being telecast. Name the technique of Scientific management that should be adhered to, while manufacturing parts for such products.

a) Functional foremanship

b) Standardisation and Simplification of work

c) Differential Piece Wage System

d) Method Study

Show Answer

b) Standardisation and Simplification of work

 

20. In order to set up standard target of performance for workers, it was necessary for Shiv Ltd. to fix standard time for workers to perform a particular job. For this Mr. Ganesh, the Production Manager of the company observed the workers when they were performing the job. He used a stop watch in hand and noted down the average time taken by workers for completion of the job. He repeated the same

observation for 100 times and then calculated average time for the performance of the job. This was fixed as the standard time on the basis of which efficient and inefficient workers were distinguished. Identify technique of scientific management followed by Mr. Ganesh.

a) Time Study

b) Method Study

c) Motion Study

d) Fatigue Study

 

Show Answer

a) Time Study

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