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

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. The objective of management which consistently creates economic values for various sections of society is:
(a) Organisational Objectives
(b) Social Objectives
(c) Personal Objectives
(d) Both Social and Personal Objectives
Answer: (b)

Question. Aarav has recently started a business to sell computers. He hired shop in Nehru Place in New Delhi, where he assembles computers and various components, supplies them as per order. He performs a series of composite but separate functions simultaneously and ensures that computers are delivered in time as per orders. These functions are performed by all managers at all times. The feature of management highlighted here is:
(a) Management is a continuous process
(b) Management is pervasive
(c) Management is a dynamic function
(d) Management is a group activity
Answer: (a)

Question. Management is essential for the following Organisation(s):
(a) Big or Small
(b) Profit or Non-Profit
(c) Service or Manufacturing
(d) All of these
Answer: (d)

Question. Match the concept of management in Column I with their respective meaning in column II:
Column I
Effectiveness
Efficiency
Process
Column II
i) Doing the task correctly with minimum cost
ii) Finishing the task on time
iii) The primary functions or activities that management performs to get the things done.
(a) i), ii), iii)
(b) ii), i), iii)
(c) iii), ii), i)
(d) i), iii), ii)
Answer: (b)

Question. At times business may concentrate more on producing goods with fewer resources I.e., cutting down cost but not achieving the target production. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market. This is a case of:
(a) Being efficient but not effective
(b) Being effective but not efficient
(c) Being both effective and efficient
(d) All of these
Answer: (a)

Question. Match the dimensions of management in Column I with their respective definition in Column II:
Column I
A) Management of work
B) Management of People
C) Management of operations
Column II
i) In a factory, a product is manufactured, in a garment store, a customer’s need is satisfied and in a hospital a patient is treated. Management translates the goals to be achieved and assigns the means to achieve it.
ii) No matter what the organisation, it has some basic product or service to provide in order to survive the flow of input material and the technology for transforming this input into the desired output for consumption.
iii) The task of management is to make people work towards achieving the organisation’s goals, by making their strengths effective and their weaknesses irrelevant.
(a) i), ii), iii)
(b) ii), i), iii)
(c) iii), ii), i)
(d) i), iii), ii)
Answer: (d)

Question. “Every member of an organisation has a different purpose for joining the organisation but as members of the organisation they work towards fulfilling the common organisational goal. This requires team work and coordination of individual effort in a common direction.” Identify the characteristic of management highlighted above.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
Answer: (b)

Question. “An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.” Identify the characteristic of management highlighted here.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
Answer: (d)

Question. “Management is a force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied and there is orderliness instead of chaos.” Identify the characteristic of management highlighted above.
(a) Management is an intangible force
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a continuous process
Answer: (a)

Question. “Management has to achieve variety of objectives in all areas considering the interest of all stakeholders including shareholder, employees, customers and the government. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage.” Identify the objectives of management highlighted above.
(a) Organisational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these
Answer: (a)

Question. Match the objective of management in Column I with their respective definition in Column II:
Column I
A) Survival
B) Profit
C) Growth
Column II
i) Increase in the number of employees, the number of products or increase in the capital investment, etc.
ii) A Vital Incentive for the continued successful operation of the enterprise
iii) An organisation must earn enough revenues to cover costs.
(a) i), ii), iii)
(b) ii), i), iii)
(c) iii), ii), i)
(d) i), iii), ii)
Answer: (c)

Question. “The aim of manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.” Identify the point of importance of management highlighted above”
(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. “Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success” Identify the point of importance of management highlighted above.
(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: (a)

Question. Which of the following is not a part of importance of management-“Management helps in the development of society?”
(a) It creates employment opportunities
(b) It provides good quality products and services
(c) It adopts new technology for the greater good of the people
(d) None of the above.
Answer: (d)

Question. “All the management practices are based on the same set of principles, what distinguishes a successful manager from a less successful one is the ability to put these principles into practice.” Identify the nature of management highlighted above.
(a) Management as a science
(b) Management as an art
(c) Management as a profession
(d) management is both science and art
Answer: (b)

Question. Which of the following proves that management is not an exact science?
(a) Management has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as economics, sociology, psychology and mathematics. Like any other organized activity, management has its own vocabulary of terms and concepts.
(b) Since management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated.
(c) The application and use of principles of management is not universal. They have to be modified according to a given situation.
(d) Both b & c
Answer: (d)

Question. “Unlike professions such as medicine and Law which require a practicing doctor or lawyer to possess valid degrees. Nowhere in the world it is mandatory for a manager to possess any such specific degree.” Identify the characteristic of profession that management does not fulfill in the statement being discussed above.
(a) Ethical code of conduct
(b) Restricted entry
(c) Professional association
(d) Service motive
Answer: (b)

Question. “Profit maximization as the objective of management does not hold true and is fast changing. Therefore, if an Organisation has a good management team that is efficient and effective it automatically serves society by providing good quality products at reasonable prices. Identify the characteristic of the profession that is not fully present in management.
(a) Ethical code of conduct
(b) Restricted entry
(c) Professional association
(d) Service motive
Answer: (d)

Question. “McDonalds the fast-food giant made major changes in its menu to be able to survive in the Indian market. “ Identify the characteristic of management highlighted in the above statement.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
Answer: (d)

Question. Why management is considered a multi-faceted concept?
(a) Because management is a complex activity that has three main dimensions: management of work, management of people and management of operations.
(b) The activities involved in managing an enterprise are common to all organizations whether economic, social or political.
(c) The process of management is a series of continuous, composite, but separate functions (planning, organizing, directing, staffing and controlling). These functions are simultaneously performed by all the managers at all the times.
(d) None of the above
Answer: (a)

Question. Radhey ltd. is diversifying its product lines. What organisational objective it is trying to achieve?
(a) Survival
(b) Profit
(c) Growth
(d) All of above
Answer: (c)

Question. Which of the following statement best explains the “Management is an Art”?
(a) Two managers deal with the same problem differently.
(b) Management has drawn its knowledge from other disciplines also.
(c) No formal qualification is required for the appointment as the manager in a company.
(d) Outcomes of managerial actions cannot be predicted accurately.
Answer: (a)

Question. Bonnie limited is able to achieve the target production of 5000 units within the prescribed period. However, to achieve the target on time, additional Rs.40,000 were paid as overtime wages to employees. Bonnie limited is_________
(a) Efficient but not effective
(b) Effective but not efficient
(c) Both effective and efficient
(d) Neither effective nor efficient
Answer: (b)

Question. Directors of Atul Limited assigned the task of implementing the plans and policies framed by the board to all the department heads. Department heads appointed supervisors, superintendent, executives, etc. so that work can be assigned to workers as per the plan. Supervisors kept a check on the workers as per the plan. Identify the feature of management highlighted in above lines.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function
Answer: (c)

Question. To which level of management do managers of first line belongs?
(a) Lower level
(b) Top level
(c) Middle level
(d) None of the above
Answer: (a)

Question. Coordination is
(a) A Function of management
(b) The essence of management
(c) An objective of management
(d) None of the above
Answer: (b)

Question. The General Manager of ‘Uthranchalwood pvt ltd called a meeting of production manager and Sales manager both of his company. He explained to them that both of these departments are the base of company’s success. Therefore it is necessary for both of them to work with coordination. Also, they were told whatever decision they were taken for their respective departments would affect others; they must give its information to them immediately. They did the same. As a result of this, there never arose a situation in the company, when the sales orders could not be compiled with because of the shortage of goods. Identify the characteristic of coordination in the paragraph given below.
(a) Coordination is the continuous process
(b) Coordination ensures unity of action
(c) Coordination is a deliberate function
(d) Coordination is an all pervasive action
Answer: (b)

Question. The process of coordinating the activities of an organization begins at the ————- stage itself.
(a) Planning
(b) Staffing
(c) Directing
(d) Controlling
Answer: (a)

Question. The words cooperation and coordination are
(a) Opposite
(b) Synonym
(c) Complementary
(d) All of these
Answer: (c)

Question. The objective of marketing departments of S Lodi’s to increase the sales by 10% by offering discounts. But, the finance department may not approve of such discounts as it means loss of revenue. These kinds of conflict arise in organizations because each department is performing activities in isolation of other departments and barriers between departments are becoming more rigid. Identify the point of importance of coordination to which this case is related:
(a) Growth in size
(b) Functional differentiation
(c) Specialisations
(d) None of the above
Answer: (b)

Question. ”Coordination is not a separate function of management but it happens to be the final truth of all the functions. “In what context this observation this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of the above
Answer: (a)

Question. The process by which manager integrates and synchronizes the activities of different departments is called
(a) Management
(b) Controlling
(c) Planning
(d) Coordination
Answer: (d)

Question. As Top level of management is responsible for the welfare and operations of whole organization, Middle level is responsible for the welfare and operations of
(a) Workers
(b) Department
(c) Both a and b
(d) None of the above
Answer: (b)

Question. Mr. Top the Managing director of A ltd appointed Production manager Mr. Produce who was assisted by Mr. Ustad who was to take care of ensuring the proper and safe working conditions for workers. Where will Mr. Ustad be placed in management hierarchy?
(a) Middle level
(b) Top level
(c) Operational level
(d) None of the above
Answer: (c)

Question. The Force that binds all other functions of management is called
(a) Controlling
(b) Coordination
(c) Cooperation
(d) Planning
Answer: (b)

Question. Which of the following functions is performed by operational level management
(a) Looking for the safety of workers
(b) representing the problems of workers before the middle level management
(c) To ensure quality standards are properly followed
(d) All of the above
Answer: (d)

Question. Which function of management ensure work accomplishment as per plans
(a) Controlling
(b) Planning
(c) Directing
(d) Organizing
Answer: (a)

Question. It involves leading, influencing and motivating the employees to perform the assigned task
(a) Staffing
(b) Planning
(c) Directing
(d) Controlling
Answer: (c)

Question. Identify the feature of coordination being highlighted in the given statement:” coordination is not a one-time function it begins at planning stage and continue till controlling“
(a) Controlling ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function
Answer: (c)

Question. Name the level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organization.
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above
Answer: (b)

Question. Your grandfather has retired as the director of a manufacturing company. At which level of management was he working
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above
Answer: (a)

Question. Fab India Ltd is a private limited company with several branches all over the country. It needs a team of designers and craftspeople. Similarly, another company Infosys technologies which develops software needs system analysts and programmers. Identify that which function of management is needed to satisfy the need of other companies.
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
Answer: (c)

Question. Name the concept of management which involves the grouping of the required tasks into manageable departments or work units and establishment of authority and reporting relationships within the organizational hierarchy.
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
Answer: (b)

Question. Which of the following is not included in level of management
(a) Top level management
(b) Supervisory level of management
(c) Sub level management
(d) Middle level management
Answer: (c)

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

Question. Arun is responsible for making annual appraisal reports of line managers. At which level of management Arun is working?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Supervisory level management
Answer: (b)

Question. Which concept of management requires balancing, timing, and integration of activities to ensure planned objectives are achieved with minimum conflicts.
(a) Cooperation
(b) Coordination
(c) Management
(d) Planning
Answer: (b)

Question. ————- unifies unrelated or diverse interest into purposeful activity
(a) Planning
(b) Controlling
(c) Organizing
(d) Coordination
Answer: (d)

Question. The sales department accuses the production department for the poor sales due to late delivery of goods. The production department accuses the purchase department for not delivering the raw material in time and the purchase department accuses the finance department for not releasing funds on time. Which quality of management is missing in the above situation?
(a) Planning
(b) Management
(c) Coordination
(d) None of the above
Answer: (c)