CBSE Class 12 Business Studies Organising VBQs Set 03

Question. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Decentralization

Question. Priya works in an organization where she enjoys friendly relationships with her colleagues, they go for parties together. She loves to work there. Name the type of organisation.
(a) Formal organization
(b) Informal organization
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Informal organization

Question. Aman runs a factory wherein he manufactures coolers. The business is doing well, and he intends to expand by diversifying into air conditioners and laptops. Which type of organization structure would you recommend for his expanded organisation?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Divisional structure

Question. Priya works in an organisation where she does not enjoy friendly relationships with her colleagues. She has to follow the set rules and regulations of the organization. She only focuses on work and there is no interaction among employees due to which she is planning to leave the organisation. Name the type of organisation.
(a) Formal organisation
(b) Informal organisation
(c) Both (a) and (b)
(d) None of the options
Answer: (a) Formal organization

Question. ENX Ltd. is a which organisation holds its meeting according to the mood of the members. It has no set pattern of behavior. Identify the types of organisation.
(a) Formal Organisation
(b) Informal Organisation
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Informal Organisation

Question. Devlaya education private Ltd. formed a Cricket Club where every employee of the organisation plays cricket on each weekend irrespective of their position or rank in the organisation. Identify the type of organisation.
(a) Formal Organisation
(b) Informal Organisation
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Informal Organisation

Question. Chandram Ltd. is a textile manufacturing company. Mr. Rahul, the owner of the company has created different departments for purchase, production, marketing, finance, and human resource. There are forty employees working in the organisation. Planning is of paramount importance to the company as Mr. Rahul believes that effective planning leads to achievement of organisational objectives. So, in order to make employees focus on objectives, he issued instructions that during working hours only official matters will be discussed. He made certain rules and code of conduct for the employees to follow, according to which employees are not allowed to visit and talk to the employees of other departments except for official work. He emphasised on work performance which resulted in smooth functioning of the organisation. Identify the type of organisation.
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None of the options
Answer: (a) Formal

Question. Karan Industries are company manufacturing office furniture. The company chose to diversify its operations to improve its growth potential and increase market share. As the project was important, many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation. After evaluating the various alternatives, Sukhvinder, the managing director of the company decided that they should add ‘home interiors and furnishings’ as a new line of business activity. Choose the framework, which the diversified organisation should adopt, to enable it to cope with the emerging complexity?
(a) Functional
(b) Divisional
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Divisional

Question. Gedart Ltd. is working by clubbing similar related jobs under different departments. The HR department is not in touch with the marketing department and this has created problems. The HR head feels that only he knows about the HR department and similar is the case with the marketing department. However, the truth is both of them have limited and specific skills. Which type of organisation structure does Gedart Ltd. have?
(a) Directing
(b) Divisional structure
(c) Informal structure
(d) Functional structure
Answer: (d) Functional structure

Question. Waseem has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships
Answer: (b) Departmentalisation

Question. Sharda Ltd. is pursuing diversified activities which require a high degree of specialisation. Identify the type of structure that should be followed by Sharda Ltd.
(a) Functional structure
(b) Divisional structure
(c) Decentralised structure
(d) Informal structure
Answer: (a) Functional structure

Question. Mr. Kiaan who is a boss of Aiysha Ltd. delegated some of his work to his subordinate and instructed him, “You are incharge of this project. I am here if you need me”. Which element of delegation is highlighted in the above case?
(a) Accountability
(b) Coordination
(c) Authority
(d) Creativity
Answer: (a) Accountability

Question. Himalaya Ltd. is engaged in manufacturing washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure. Identify the type of organisation structure described above.
(a) Functional structure
(b) Divisional structure
(c) Decentralisation
(d) Delegation
Answer: (a) Functional structure

After completing a course in travel and tourism, Amit started his own travel agency. For smooth functioning of his business, he decided to create fourteen job positions. Further, he divided them into four departments on the basis of functions namely, front office department including online queries, reservations, department for airways, railways and roadways, accommodation booking department, and securing payments department. In order to avoid any interdepartmental conflicts, he decides to specify clearly the lines of authority and areas of responsibility for each job position.

Question. Identify the function of management performed by Amit:
(a) Planning
(b) Organizing
(c) Both (a) and (b)
(d) None of the options
Answer: (b) Organizing

Question. Identify the framework created by Amit within which all managerial and operating tasks are to be performed in his organization.
(a) Organizational structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the options
Answer: (a) Organizational structure

Question. Which type of organizational structure is used by Amit in his company?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of the options
Answer: (a) Functional structure

Question. Authority and responsibility are related to which concept of management:
(a) Delegation of Authority
(b) Coordination
(c) Both (a) and (b)
(d) None of the options
Answer: (a) Delegation of Authority

Question. Aman runs a clothing company. There is lot of chaos in the organisation. He decided to do grouping of similar activities into departments, units, sections etc. using several criteria as a basis to facilitate specialisation. The step of organizing process referred here is_______
(a) Identification and division of work
(b) departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationship
Answer: (b) departmentalisation

Question. Amit runs a real estate company. Now he wants to open a retail company. The size of organisation is large and there is a need for higher degree of specialisation. The organisational structure discussed here is_______
(a) Divisional structure
(b) functional structure
(c) Both (a) and (b)
(d) None of the options
Answer: (b) functional structure

Question. Bajaj limited is a manufacturing company that manufactures plastic buckets. Company has a target of manufacturing 100 buckets a day. In order to achieve this target efforts of all departments are coordinated and interlined, and authority-responsibility relationship is established among various job positions. There is clarity also that who will report to whom. The function of management discussed above, is_______
(a) planning
(b) organising
(c) staffing
(d) directing
Answer: (b) organising

Question. Infratech industry manufactures office furniture. To improve its growth potential and increase market share the company choose to diversify its operations to improve its growth potential and increase market share. Many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation, as the project was important. After evaluating the various alternatives Ali, the managing director of the company decided that they should add ‘home interiors and furnishings’ as a new line of business activity. ______is the framework, which the diversified organisation should adopt, to enable it to cope with the emerging complexity?
(a) functional
(b) divisional
(c) both (a) and (b)
(d) None of the options
Answer: (b) divisional

Question. ___________ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.
(a) Coordination
(b) Departmentalisation
(c) Organisation Structure
(d) Delegation of authority
Answer: (b) Departmentalisation

Question. _______is the process by which the manager brings order out of chaos, removes conflict among people over work or responsibility sharing and creates an environment suitable for teamwork.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
Answer: (b) Organising

Question. _____________ is a right of a superior to command his subordinate and ensure obedience from him. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of the options
Answer: (a) Authority

Question. __________ obligation of a sub-ordinate to complete an assigned task given by his superior. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of the options
Answer: (c) Responsibility

Question. __________answerability of the subordinate about the final result of the assigned task. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of the options
Answer: (b) Accountability

Question. __________refers to systematic dispersal of authority to the lowest level, except that which can be exercised at central points. Identify the concept of organizing.
(a) Delegation
(b) Decentralization
(c) Authority
(d) Responsibility
Answer: (b) Decentralization

Question. __________means concentration of decision-making authority at higher or top levels of management. It refers to a situation where all decisions on all matters are taken by one or a few managers at relatively higher levels. Identify the concept of organizing.
(a) Delegation
(b) Centralization
(c) Authority
(d) Responsibility
Answer: (b) Centralization

Question. Match Column-I (Steps in the process of organising) with Column- II (Objectives) then select the correct answers from the option given below:
Column I
(A) Identification and division of work
(B) Departmentalisation
(C) Assignment of duties
(D) Establishing authority and reporting relationships
Column II
(i) Merely allocating work is not enough. Each individual should also know who he has to take orders from and to whom he is accountable.
(ii) The first step in the process of organising involves identifying and dividing the work that has to be done in accordance with previously determined plans.
(iii) Once work has been divided into small and manageable activities then those activities which are similar in nature are grouped together.
(iv) It is necessary to define the work of different job positions and accordingly allocate work to various employees.
(A) (B) (C) (D)
(a) (ii) (i) (iii) (iv)
(b) (iii) (i) (iv) (ii)
(c) (ii) (iii) (iv) (i)
(d) (iv) (iii) (ii) (i)
Answer: (c) (ii) (iii) (iv) (i)

Question. Match Column-I (Points of crucial role in business enterprise) with Column- II (Objectives) , then select the correct answers from the option given below:
Column I
(A) Benefits of specialisation
(B) Clarity in working relationships
(C) Optimum utilisation of resources
(D) Adaptation to change
Column II
(i) Organising leads to a systematic allocation of jobs amongst the work force.
(ii) The process of organising allows a business enterprise to accommodate changes in the business environment.
(iii) The establishment of working relationships clarifies lines of communication and specifies who is to report to whom.
(iv) Organising leads to the proper usage of all material, financial and human resources.
(A) (B) (C) (D)
(a) (ii) (i) (iii) (iv)
(b) (i) (iii) (iv) (ii)
(c) (i) (ii) (iii) (iv)
(d) (iv) (iii) (ii) (i)
Answer: (b) (i) (iii) (iv) (ii)

Question. Match Column-I ( Basis of Functional Structure in Business) with Column- II (Objectives of Functional Structure) , then select the correct answers from the option given below:
Column I
(A) Formation
(B) Specialisation
(C) Managerial Development
(D) Cost
Column II
(i) Formation is based on functions
(ii) Functional specialisation
(iii) Difficult, as each functional manager has to report to the top management.
(iv) Functions are not duplicated hence economical
(A) (B) (C) (D)
(a) (iii) (i) (ii) (iv)
(b) (i) (iii) (iv) (ii)
(c) (iv) (iii) (ii) (i)
(d) (i) (ii) (iii) (iv)
Answer: (d) (i) (ii) (iii) (iv)

Question. Match Column A (Basis of Divisional Structure in Business) with Column- II (Objectives of Divisional Structure) then select the correct answers from the option given below:
Column I
(A) Managerial Development
(B) Cost
(C) Coordination
(D) Responsibility
Column II
(i) Duplication of resources in various departments, hence costly.
(ii) Easier, autonomy as well as the chance to perform multiple functions helps in managerial development.
(iii) Easy to fix responsiblity for performance.
(iv) Easy, because all functions related to a particular product are integrated in one department.
(A) (B) (C) (D)
(a) (ii) (i) (iv) (iii)
(b) (i) (iii) (iv) (ii)
(c) (iv) (iii) (ii) (i)
(d) (i) (ii) (iii) (iv)
Answer: (a) (ii) (i) (iv) (iii)

Question. Match Column-I ((Basis of Formal Organisation in Business) with Column-II (Objectives of Formal Organisation) then select the correct answers from the option given below:
Column I
(A) Meaning
(B) Origin
(C) Authority
(D) Behavior
Column II
(i) Structure of authority relationships created by the management
(ii) Arises as a result of company rules and policies.
(iii) Arises by virtue of position in management.
(iv) It is directed by rules.
(A) (B) (C) (D)
(a) (ii) (i) (iv) (iii)
(b) (i) (iii) (iv) (ii)
(c) (iii) (i) (iv) (ii)
(d) (i) (ii) (iii) (iv)
Answer: (d) (i) (ii) (iii) (iv)

Question. Assertion: organizing promotes specialization.
Reason: Every organization is built on the principle of division of labour and specialization.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Organizing establish relation between top managements and subordinates.
Reason: It Establish working relationship between them by lines of communications with reporting parameters.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Organization structure are environment of within organization under which working is done.
Reason: Organization structure should be fixed.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion: Functional structure provides effective control and coordination.
Reason: It may lead in conflict between two or more departments.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).

Question. Assertion: Divisional structures required where activities related no one product are grouped together.
Reason: So working related to each product are grouped under one department.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true, but reason (R) is false.

Question. Assertion: Formal organization improve initiative taking ability among workers.
Reason: It provides creative freedom to subordinates.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (d) If assertion (A) is false and reason (R) is true

Question. Assertion: Informal organization has network oriented communication channel.
Reason: It provides faster communications and faster spread of information.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Sharing work with subordinates is called as delegation of authority.
Reason: Managers cannot manage and control each and every activity by self.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).

Question. Assertion: Delegation includes accountability.
Reason: Accountability is beyond the rules and regulations.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (c) If assertion (A) is true and reason (R) is false

Question. Assertion: Organising helps in maximum use of humans resources in organisation.
Reason:Ability and commands provided by top managements is necessary for working.
(a) If both assertion (A) and reason (R) are true and reason (R) is the correct explanation of assertion (A).
(b) If both assertion (A) and reason (R) are true, but reason (R) is not the correct explanation of assertion (A).
(c) If assertion (A) is true, but reason (R) is false.
(d) If assertion (A) is false but reason (R) is true.
Answer: (b) If both assertion (A) and reason (R) are true but reason (R) is not the correct explanation of assertion (A).