CBSE Class 12 Business Studies Nature and Significance Of Management MCQs Set H

Question. Which is not a function of management of the following:
(a) Planning
(b) Staffing
(c) Cooperating
(d) Controlling
Answer: (c)

Question. Policy formulation is the function of
(a) Top level Managers
(b) Middle level Managers
(c) Operational Management
(d) None of the above
Answer: (a)

Question. The following is not an objective of Management
(a) Earning profits
(b) Growth of the organisation
(c) Providing Employment
(d) Policy Making
Answer: (c)

Question. Which one of the following is not a characteristic of management
(a) Management is a goal-oriented process
(b) Management is multidimensional
(c) Management is profit oriented
(d) Management is intangible
Answer: (c)

Question. Foremen and supervisors fall in the category of
(a) Top level management
(b) Operational Management
(c) Middle Level Management
(d) None of the above
Answer: (b)

Question. Which of the following functions of Management is concerned with finding the right people for the right Job.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling
Answer: (c)

Question. ‘The activities involved in managing an enterprise are common to all organisations whether economic, social or political’. Which characteristic of management is highlighted in the given statement.
(a) Management is a goal-oriented process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is a group activity.
Answer: (b)

Question. Which one of the following is not an organisational objective of management
(a) Survival
(b) Cooperation
(c) Growth
(d) Profit
Answer: (b)

Question. ‘Management aims at reducing costs and increasing productivity’. Which importance of Management is highlighted in the given statement.
(a) Management helps in achieving group goals
(b) Management increases efficiency
(c) Management creates a dynamic organisation
(d) Management helps in achieving personal objectives
Answer: (b)

Question. Deeksha is working in ‘Telco Ltd.’ A company manufacturing toys. She found that the profits had started declining for the last six months. Profit has an implication for the survival of the firm. So She analysed the business environment to find out the reasons for this decline. From the following alternatives, identify the level of management at which Deeksha is working.
(a) Lower level Management
(b) Middle level Management
(c) Top Level Management
(d) None of the above
Answer: (c)

Question. One of the organisational objectives of management is ‘Growth of a business’. Which one of the following is not associated with measurement of business growth.
(a) Sales volume
(b) Number of Employees
(c) Number of creditors
(d) Number of Products offered
Answer: (c)

Question. ‘Management has to adapt itself to the changing environment’. Identify from the following alternatives, the characteristic of management discussed in the given statement.
(a) Management is a group activity
(b) Management is a dynamic function
(c) Management is goal oriented
(d) Management is multidimensional
Answer: (b)

Question. _______ refers to the orderly synchronising of efforts of subordinates to provide proper amount, timing and quality of execution. (Choose the correct alternative from the following)
(a) Planning
(b) Organising
(c) Coordination
(d) Cooperation
Answer: (c)

Question. _______ is a managerial function that is concerned with monitoring organisational performance towards the attainment of organisational goals. (Identify from the following alternatives)
(a) Planning
(b) Organising
(c) Directing
(d) Controlling
Answer: (d)

Question. ________ in Management means to complete the task correctly with minimum resources. (Choose from the following alternatives)
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) None of the above
Answer: (b)

Question. Vijay works in a bank. The bank is about to lose its position as the leading bank in the banking industry. Vijay was assigned to find out the reason behind poor performance of the bank. He analysed the situation and came out with the conclusion that there was lack of integration of efforts made by various departments like human resource, information technology and customer relationship. Identify the Managerial concept discussed in the about case.
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency
Answer: (b)

Question. Saurabh is managing director in a shoe manufacturing company. He has been doing well at this post. Under his guidance and leadership, the company has been actively achieving all the set targets as all the unrelated and diverse actions taken by different departments are given a common direction. Identify the characteristic of management discussed in the given case.
(a) Management is a goal oriented process
(b) Management is a continuous process
(c) Management is a group activity
(d) Management is a dynamic function
Answer: (c)

Question. Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.
(a) Management
(b) Planning
(c) Organising
(d) Controlling
Answer: (a)

Question. ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Allowances
Answer: (b)

Question. ................. is the force that binds all the other functions of management
(a) Planning
(b) Organising
(c) Span of Management
(d) Coordination
Answer: (d)

Question. Management is ................. .
(a) An art
(b) A science
(c) Both art & science
(d) Neither
Answer: (c)

Question. ‘Management cannot be seen but its presence can be felt in the way the organisation functions.’ Which characteristic of management is mentioned in the given statement.
(a) Management is multidimensional
(b) Management is all pervasive
(c) Management is an intangible force
(d) Management is a dynamic function
Answer: (c)

Question. ‘Coordination unifies unrelated or diverse interests into purposeful work activity.’ Which characteristic of coordination is discussed in the given statement?
(a) Coordination is a continuous process.
(b) Coordination ensures unity of action.
(c) Coordination is an all pervasive function.
(d) Coordination integrates group efforts.
Answer: (d)

Question. Identify the nature of management when a manager applies the existing theoretical Knowledge in his own unique manner. (Choose the correct alternative)
(a) Management as a Science
(b) Management as an Art
(c) Management as a profession
(d) Management as a Discipline
Answer: (b)

Question. ‘The aim of a manager is to reduce costs and increase productivity’. Identify the importance of management mentioned in the given Statement.
(a) Management increases efficiency.
(b) Management creates a dynamic organisation.
(c) Management helps in achieving personal objectives.
(d) Management helps in achieving group goals.
Answer: (a)

Question. Coordination is ................. .
(a) a function of management
(b) the essence of management
(c) an objective of management
(d) characteristic of management
Answer: (b)

Question. ................. is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
(a) Planning
(b) Management
(c) Organising
(d) Development
Answer: (b)

Question. ‘An organisation has multiple objectives to serve the purpose of the different groups that constitute it’, which importance of management is mentioned here? (Choose the correct alternative)
(a) Management helps in achieving group goals.
(b) Management helps in development of society.
(c) Management creates a dynamic organisation.
(d) Management helps in achieving personal objectives.
Answer: (b)

Question. Which of the following is a feature of art?
(a) Existence of theoretical knowledge
(b) Systematised body of knowledge
(c) Service motive
(d) Ethical code of conduct
Answer: (a)

Question. _______ arises out of the complexities of modern technology and the diversity of tasks to be performed.
(a) Division of work
(b) Cooperation
(c) Specialisation
(d) Functional Differentiation
Answer: (b)

Question. Harsh is the managing director in a shoe manufacturing company. He has been doing well at this post. Under his guidance and leadership, the company has been actively achieving all the set targets as all the unrelated and diverse actions taken by different departments are given a common direction. Identify the characteristic of Management discussed in the given case.
(a) Management is a goal oriented process
(b) Management is a continuous process
(c) Management is a group activity
(d) Management is a dynamic function
Answer: (c)

Question. Coordination acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. Which characteristic of management is mentioned in the given statement.
(a) Coordination integrates group efforts
(b) Coordination ensures unity of action
(c) Coordination is a continuous process
(d) Coordination is an all pervasive function
Answer: (b)

Question. Match the features of management in Column I with their respective definition in Column II.
Column I
A. Continuous process
B. Pervasive
C. Intangible force
Column II
(i) Managerial functions are performed by all managers all the time.
(ii) Effect of management can only be felt on organisation functions.
(iii) Managerial activities are common to all organisations
(a) A-(i), B-(iii), C-(ii)
(b) A-(iii), B-(ii), C-(i)
(c) A-(ii), B-(iii), C-(i)
(d) A-(ii), B-(i), C-(ii)
Answer: (a)

Question. __________ is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.
(a) Coordination
(b) Management
(c) Organising
(d) Planning
Answer: (b)

Question. ________ is not an element of delegation.
(a) Authority
(b) Accountability
(c) Efficiency
(d) Responsibility
Answer: (c)

Case Based Questions

I. Anil is a Managing director in a toy manufacturing company. He decided to set up a new manufacturing unit of his company in a rural area of Bihar where job opportunities are very less. He believes in using environmental friendly methods of production and aims at giving employment opportunities to the disadvantaged section of the community. As a manager he aims at reducing costs and increasing productivity through better planning, organizing, directing staffing and controlling the activities of the organization. Anil considers human resources as the greatest asset of any organization. Getting work done through others is a major task of a manager as per the views of Anil. As a manager Anil believes that his task is to make workers work towards achieving the organizations’ goals. On the basis of the above paragraph answer the following questions.

Question. Identify the level of management at which Anil is working.
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Supervisory level management
Answer: (a)

Question. Identify the objective of management discussed in the given case (Choose the correct alternative)
(a) Economic objective
(b) Organizational objective
(c) Social objective
(d) Personal objective
Answer: (c)

Question. “As a manager, he aims at reducing costs and increasing productivity”. Name the importance of management highlighted in the given statement. (Choose the correct alternative)
(a) Management helps in achieving group goals.
(b) Management creates a dynamic organization.
(c) Management increases efficiency.
(d) Management helps in achieving personal objectives.
Answer: (c)

Question. “Getting work done through others is a major task of a manager as per the views of Anil”. Which dimension of management is reflected by Anil’s view? (Choose the correct alternative)
(a) Management of people
(b) Management of work
(c) Management of operations
(d) Management of resources
Answer: (a)

II. XOLO Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. As the demand of lanterns was increasing day by day, the company decided to increase production to generate higher sales. For this they decided to employ people from a nearby village as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees. The General Manager of the company, Nishant believes that an organization should provide good quality products and services, create employment opportunities and adapt new technology for the greater good of the people. According to him, in order to be successful, an organization must change itself and its goals according to the needs of the environment. As per Nishant’s viewpoint, in order to ensure success a business needs to add to its prospects in the long run. He firmly believes that in order to remain in the industry, management must exploit fully the given resources. On the basis of the above paragraph, answer the following questions:

Question. Which set of managerial objectives are mentioned in the given case. (Choose the correct alternative)
(a) Personal objectives and social objectives
(b) Social objectives and group objectives
(c) Organizational objectives and social objectives
(d) Organizational objectives and personal objectives
Answer: (c)

Question. “Nishant believes that an organization should provide good quality goods and services, create employment opportunities and adapt new technology for the greater good of the people”. Identify the importance of management mentioned in the given statement. (Choose the correct alternative)
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society
(d) Management helps in achieving group goals
Answer: (c)

Question. “An organization must change itself and its goals according to the needs of the environment”. Identify, from the following alternatives, the characteristic of management discussed in the given statement. (Choose the correct alternative)
(a) Management is multidimensional
(b) Management is a goal oriented process
(c) Management is a group activity
(d) Management is a dynamic function
Answer: (d)

Question. Which organizational objective is mentioned in the given case. (Choose the correct alternative)
(a) Survival
(b) Growth
(c) Profit
(d) Operational efficiency
Answer: (b)

III. An organization is a collection of diverse individuals with different needs. Every member of the group has a different purpose of joining the organization but as members of the organization they work towards fulfilling the common organizational goal. Bhagwati Enterprises is also such an organization. The firm deals in manufacturing of shoes. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining returns on investment and poor marketing. On investigation the CEO of the company Mr. Gopal Rao found that the organization was lacking an important quality of management. This managerial quality aims at securing unity of action in the realization of the common purpose. It acts as the binding force between the departments and ensures that all action is aimed at achieving the goals of the organization. On the basis of the above paragraph answer the following questions:

Question. According to you, which characteristic of management is lacking in Bhagwati Enterprises? (Choose the correct alternative)
(a) Management is multidimensional
(b) Management is a continuous process
(c) Management is an intangible force
(d) Management is a group activity
Answer: (d)

Question. “This managerial quality aims at securing unity of action in the realization of the common purpose”. Which managerial quality is being talked about in the given statement? (Choose the correct alternative)
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency
Answer: (b)

Question. Identify the characteristic of managerial quality (identified in part (i)). Which is discussed in the given paragraph. (Choose the correct alternative)
(a) It integrates group efforts
(b) It ensures unity of action
(c) It is an all pervasive function
(d) It is the responsibility of all the managers
Answer: (c)

Question. Which one of the following functions is not performed by Mr. Gopal Rao as the CEO of the company.
(a) Coordinating the activities of different departments.
(b) Ensuring welfare and survival of the organization.
(c) Assigning necessary duties and responsibilities to the workers.
(d) Formulating overall organizational goals and strategies for their achievement.
Answer: (c)

IV. Shilpa is working as a marketing head in an insurance company. She has been holding this position for long. She is an experienced manager who believes that organisations are made up of people who have different personalities, backgrounds, experiences and objectives. According to her, people become part of the organization to satisfy their diverse needs. Shilpa is of the view that all organisations have to function in an environment that is constantly changing. Hence, during the spread of Corona virus pandemic, she came up with new insurance products, which were designed as per the present needs and requirements of the customers. Soon the insurance products developed by Shilpa became a hit and the organization was able to achieve its goals. The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise. Before developing the new products, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively. On the basis of the above paragraph answer the following questions:

Question. During the spread of coronavirus pandemic, Shilpa came up with new insurance products to ensure ____________ of the company in the long run.
(a) Growth
(b) Survival
(c) Welfare
(d) Profit
Answer: (b)

Question. Which importance of management is mentioned in the given case. (Choose the correct alternative)
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society.
(d) Management helps in achieving group goals
Answer: (b)

Question. “Before developing the new product, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively”. Which managerial function is achieved by Shilpa here? (Choose the correct alternative)
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling
Answer: (a)

Question. “The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise”. Which goal of the organization Shilpa wanted to achieve?
(a) Growth
(b) Survival
(c) Profit
(d) Efficiency
Answer: (c)

V. Sameer is a foreman in a factory. He directs all the members under him to follow the targets and advises them to put their efforts in the direction of the achievement of these targets. He leads, influences and motivates the workers to perform the tasks assigned to them. He encourages the employees to do their best. Sameer was assigned a target of \( 1,000 \) units in the month of July. For this he and his team had to operate on double shifts. Sameer was able to achieve the production target but at a higher production cost. On the basis of the above paragraph answer the following questions.

Question. Name the function of management Sameer is performing in the above paragraph.(Choose the correct alternative)
(a) Planning
(b) Organisaing
(c) Directing
(d) Controlling
Answer: (c)

Question. With reference to the above case, Sameer believes in motivation, teamwork , communication and achievement of objectives. Sameer in the given case is ....................... . (Fill in the blank with the correct alternative)
(a) Effective
(b) Efficient
(c) Cooperative
(d) Goal oriented
Answer: (a)

Question. At which level of management, Sameer is working . (Choose the correct alternative)
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above
Answer: (c)

Question. Which of the following functions is performed by Sameer as a foreman.
(a) Interpreting the policies formed by top management
(b) Assigning necessary duties and responsibilities to the workers.
(c) Directly overseeing the efforts of the workers
(d) Coordinating the activities of different departments.
Answer: (c)

VI. Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, ready mades and household items made out of traditional Indian fabrics. Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colours on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control. On the basis of the above paragraph answer the following questions.

Question. “She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk.” Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Planning
(d) Directing
Answer: (c)

Question. In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.” The above line focuses on which feature of management?
(a) Management is an intangible force
(b) Management is a goal oriented process
(c) Management is pervasive in nature
(d) Management is a continuous process
Answer: (b)

Question. With reference to the above case, at which level of management Sana is working?
(a) Lower level
(b) Top level
(c) Middle level
(d) Shop floor
Answer: (c)

Question. “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control”. Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Organizing
(d) Planning
Answer: (a)