CBSE Class 12 Business Studies Case Study Questions Organising MCQs

Read the source given below and answer the following questions :
Vimal Cloth Ltd. was manufacturing only fabrics. After having great success in fabric business the directors of Vimal Cloth Ltd. acquired three new manufacturing units and started selling multi-products in market. (Electronics, Mobile phone, Cements) They decided that an individual who has capability and competence to handle responsibility would head each unit. The vacant position will be filled by women candidate only.

Question. If organisations want their departments to be self-contented and independent then which structure is suitable?
(a) Functional
(b) Divisional
(c) Both (a) and (b)
(d) None of the options

Answer: B

Question. State the type of organisational structure, Vimal Cloth Ltd. had followed when they were producing only fabric.
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of the options

Answer: A

Question. Organisations having plans of diversification and expansion, must adapt :
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of the options

Answer: B

Question. State the organisational structure suitable to Vimal Cloth Ltd. after they plan to add more line of products.
(a) Functional
(b) Divisional
(c) Both (a) and (b)
(d) None of the options

Answer: B

Read the source given below and answer the following questions :
“In every organisation, managers are assigned lot of work and manager alone cannot perform all the work. He divides the work among different individuals working under him according to their qualification and get the work done from them. The manager begins with sharing of his responsibilities with his subordinates. He deliberately passes some of his responsibilities to his subordinates. After passing the responsibilities the manager also shares some of his authority, i.e., power to make decision with his subordinates so that the responsibilities can be carried on properly. To make sure that his subordinates perform all the work effectively and efficiently in the expected manner the manager creates accountability .”

Question. Authority refers to :
(a) power to take decisions independently
(b) obligation to do a task
(c) answerable for non-completion of task
(d) none of the options

Answer: A

Question. Responsibility refers to :
(a) answerable for non completion of task
(b) power to make decisions
(c) obligations to do a work
(d) none of the options

Answer: C

Question. What cannot be delegated ?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the options

Answer: C

Question. Name the concept discussed in the above para.
(a) Delegation
(b) Decentralisation
(c) Organising
(d) Planning

Answer: A

Read the source given below and answer the following questions :
Pawan, Navin and Sachin have decided to start a business of manufacturing toys. They identified the following main activities which they have to perform:
(i) Purchase of raw materials
(ii) Purchase of machinery
(iii) Production of toys
(iv) Arrangement of finance
(v) Sale of toys
(vi) Identifying the areas where they can sell their toys
(vii) Selection of employees
In order to facilitate the work they thought that four managers should be appointed to look after.
(a) Production
(b) Finance
(c) Marketing
(d) Personnel

Question. By grouping the activities in four departments, the manager is performing which step of process?
(a) Assignment of Duty
(b) Reporting Relationship
(c) Departmentalisation
(d) None of the options

Answer: C

Question. State the first step of the process of that function.
(a) In order to facilitate the work they thought that four managers should be appointed.
(b) They identified the main activities.
(c) Both (a) and (b)
(d) None of the options

Answer: B

Question. The steps of process of that function, which is not followed in above para is :
(a) Identification of activities
(b) Establishing reporting relations
(c) Grouping of activities or departmentalisation
(d) None of the options

Answer: B

Question. Identify the function of management involved in above mentioned para.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Answer: B

Read the source given below and answer the following questions :
Mohit, the owner of ‘Ravi Constructions’ decided to begin a campaign in order to create awareness among the residents for creating a clean and safe environment. In an effort to develop clean surroundings in the area, he formed a team of 30 members to list the different ways that can be adopted for keeping the area clean. Different people had different suggestions, someone suggested to take the help of local residents including young children, one suggestion was to involve unemployed youth. The idea to take the help of volunteers was also given. A combination of the most effective strategies after evaluating all options was selected for implementation. To achieve the desired goals and objectives, various activities were identified like:
(i) Purchase of essential items like dustbins, garbage bags, brooms, phenyl, etc.
(ii) Door-to-door collection of garbage.
(iii) Recycling of garbage. (iv) Disposal of garbage, etc.
Thus, an organisational design was chosen which grouped similar activities together in order to minimise duplication of effort. After identification and grouping of these activities,
the work was allocated among the different members.

Question. “After identification of different activities the work was allocated to different members.” Which step does this represent in the process of organising?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships 

Answer: C

Question.  “Thus, an organisational design was choosen which grouped similar activities together in order to minimise duplication of effort.” Which step under the process of organising is being referred to in this line?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships 

Answer: B

Question. “Thus, an organisational design was chosen which grouped similar activities together in order to minimise duplication of effort.” Which step under the process of organising is being referred to in this line?
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships  

Answer: B

Question. “Thus, an organisational design was choosen which grouped similar activities together in order to minimize duplication of effort.” Which organisational design is being referred to in this line?
(a) Function
(b) Formal
(c) Divisional
(d) Informal  

Answer: A

Read the source given below and answer the following questions :
Aman decided to start a business of manufacturing toys. He identified the following main activities which he has to perform: (i) purchase of raw materials, (ii) purchase of machinery, (iii) production of toys; (iv) arrangement of finance; (v) sale of toys; (vi) identifying the areas where they can sell their toys; (vii) selection of employees. In order to facilitate the work he thought that four managers should be appointed to look after: (a) production (b) finance (c) marketing (d) personnel. As planned, all this was executed and the business started doing well. But the manager of production department is overburdened with routine work and is unable to concentrate on core issues of the department. To overcome this problem, he entrusted some of his responsibility and authority to his immediate subordinate

Question. Identify the function of management involved in the above mentioned paragraph.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling 

Answer: B

Question. Which concept/process is used by the productionmanager?
(a) Decentralisatio
(b) Delegation
(c) Training
(d) Coordination 

Answer: B

Question. The concept identified in point previous Question. , is an extension to one of the principles of management. Name that principle.  
(a) Authority and responsibility
(b) Division of work
(c) Centralisation and decentralization
(d) Unity of direction 

Answer: B

Question. Who will be accountable finally if the subordinate is unable to complete the task accordingly within time?
(a) The Manager
(b) The Subordinate
(c) Both (a) and (b)
(d) None of the options

Answer: A