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

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

ASSERTION- REASONING BASED QUESTIONS

Read the following statements: Assertion and Reason, Choose one of the correct alternatives given below

Question. Assertion (A): Successful Organisation need not follow a deliberate process, called management, to achieve its goals.
Reason(R): Management is the dynamic, life-giving element in every business. Without it, the resources of production remain resources and never become production.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: D

Question. Assertion(A): Management is termed as a ‘Process’.
Reason(R): Management involves a series of inter-related functions, such as Planning, Organising, Staffing, Directing and Controlling.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Social objective of management involve creation of benefits or economic values to the society.
Reason(R): Now a days, profit maximisation is the only objective of management.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: C

Question. Assertion(A): Management is an inexact science.
Reason(R): It is based on human behaviour. It is neither precise nor as comprehensive as the pure science like physics or chemistry.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Management is considered as a tangible force.
Reason(R): Management cannot be seen and touched but its presence can be felt.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: D

Question. Assertion(A): Management translates the work in terms of goals to be achieved and assigns the means to achieve it.
Reason(R): All organisations exist for the performance of some work.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Satisfaction of personnel objectives is very important in an organisation.
Reason(R): Employees are one of the most valuable resources for an organisation,
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Management is termed as a group activity.
Reason(R): Every member of a firm joins the organisation with a different purpose and work towards achievement of personal goals and not organisational goals.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: C

Question. Assertion(A): Art is the skillful and personal application of existing knowledge to achieve desired results.
Reason(R): If an organisation has good management team which is efficient and effective, it automatically serves society by providing good quality products at reasonable prices.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: B

Question. Assertion(A): In order to enter into a profession, one has to acquire an educational degree by clearing specified examination conducted by required institutes.
Reason(R): All professions are bound by a code of conduct which guides the behaviour of its members.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: B

Question. Assertion(A): Management increases efficiency.
Reason(R): As a result of excellent managerial competence, business organisations can reduce costs and increase productivity by making optimum use of available resources.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Management principles are developed through observation and repeated experimentation.
Reason(R): Outcomes of management principles can be predicted accurately.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: C

Question. Assertion(A): Management creates a dynamic organisation.
Reason(R): It is generally seen that individuals in an organisation readily accept changes and face challenges.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: C

Question. Assertion(A): The task of a manager is to give a common direction to the individual effort in achieving in achieving the overall goal of the organisation.
Reason(R): Management is goal-oriented.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: A

Question. Assertion(A): Every manager has his/her own unique style of managing things and people, despite learning same management theories and principles.
Reason(R): Just like Art, management is based on practice and Creativity.
(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, but Reason(R) is False.
(d) Assertion(A) is False, but Reason(R) is true.
Answer: B

Question. Assertion: In any organisation coordination is required so that the production and sales department work hand-in-hand.
Reason: coordination integrates group efforts.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: B

Question. Assertion: The activities of each department need to be linked through coordination
Reason: Specialists usually think that they only are qualified to evaluate, judge and decide according to their personal criteria.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: B

Question. Assertion: Coordination is a one-time function of the top management
Reasons: Coordination begins at the planning stage and continues till controlling.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: D

Question. Assertion: Coordination is not an exclusive of function of the top management
Reasons: Coordination is the responsibility of all managers- top, middle and operational levels.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion: Coordination is the essence of management
Reason: Coordination is the process by which a manager synchronizes the activities of different departments. It is the force that binds all other functions of management and thus called the essence of management.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion: Coordination is not a separate function of management
Reasons: Like a thread in a garland, coordination is a part management functions.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: D

Question. Assertion: planning cannot prevent problems
Reason : Planning can only predict the problems and prepare contingency plan to deal with them if and when they occur
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion : Coordination is an all pervasive function
Reason: Coordination is required at all levels of management due to the interdependent nature of activities of various departments it integrates the efforts of different departments and different levels
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion: Coordination is a deliberate function
Reason: A manager has to coordinate the efforts of different people in a conscious and deliberate manner
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion: There is a need of coordination due to functional differentiation
Reasons: all individuals differ in their habit of work, background, approaches to situation and relationship and they have their individual goals
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

Question. Assertion: Coordination ensure unity of action
Reason: it is a common focus to the efforts of people with diverse interests.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: B

Question. Assertion: Coordination is a voluntarily binding force between individuals and departments.
Reason: Coordination gives a direction to the willing spirit
(a) Both Assertion (A) and Reason(R) are true and R is the correct explanation of A.
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: D

Question. Assertion: The job of the lower level is complex and stressful, demanding, long hours and commitment to the organisation.
Reason: Lower level manager interacts with the actual work force, pass on the instructions and supervise their work, maintain quality of products, maintain safety standards and so on.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: D

Question. Assertion: Foreman and supervisors may both be considered first line managers
Reason: First line supervisors are responsible for directing the day today activities of operative employees
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: B

Question. Assertion : Cooperation in absence of coordination leads to waste of efforts
Reason: Coordination without cooperation has no roots and cooperation without coordination bears no fruits.
(a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
(b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
(c) Assertion (A)is true but Reason (R)is false
(d) Assertion (A)is false but Reason (R)is true
Answer: A

CASE BASED QUESTIONS

Anu and Shilpa are good friends, considering the fact that the activities involved in managing an enterprise are common to all organizations, after completing their master’s in business management, both of them take up a job at managerial level in different organizations as per their individual areas of interest. Anu joined as a marketing manager in a company selling Ladies handbag, she added new product lines in the business viz. Ladies shoes and cosmetics. Shilpa joins an NGO and works diligently to realize its objective by providing employment to especially abled persons. Both Anu and Shilpa make conscious efforts to build team spirit and coordination among diverse individuals. They motivate their employees in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective. Both of them gained experience over a period of time and became more effective.

Question. Which feature of management is highlighted in above para:
(a) Management is dynamic
(b) Management is Pervasive
(c) Management is a continuous process
(d) Management is a continuous activity
Answer: B

Question. Which objective of management is pursued by Anu by adding new product lines in the business:
(a) Organisational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these
Answer: A

Question. Which objective(s) of management is pursued by Shilpa by providing employment opportunities to especially abled persons?
(a) Organisational objectives
(b) Social objectives
(c) Personal objectives
(d) Both (a) & (b)
Answer: B

Question. “They motivate their employees in such a manner that individual members are able to achieve personal goals while contributing to the overall organisational objective.” Which importance of management is highlighted here?
(a) Management helps in achieving group goals
(b) Management helps in development of society
(c) Management helps in achieving personal objectives
(d) Management increase efficiency
Answer: C

Question. “Both of them gained experience over a period of time and became more effective.” Identify the nature of management highlighted in this line.
(a) Management as Profession
(b) Management as Science
(c) Management as an Art
(d) None of the above
Answer: C

Apex Ltd is a company operating on a large scale. Co. realizes that human resources are the most important assets of their business, So HRM Department is set up to show a developmental path to the employees through proper training modules and job enrichment. Time to time incentives and awards are given to employees based on their performance, which keeps the employees highly motivated. Sagar, just a graduate in humanities is appointed as the Plant superintendent in the company. Sagar knew that there are certain theories and principles of management based on deep observation and experimentation. So, he studied various theories and principles of management before joining the Company. Sagar is very energetic and he likes to deal with severe situations. On November \( 20^{th} \), He informed his boss that the goal he had been given had been achieved and the quality was the highest. The best part is that there is one day left for the deadline, which is November 21. However, his boss was dissatisfied because the expenses incurred by his team to complete the project exceeded the upper limit.

Question. Which objective of management is pursued by management of Apex Ltd.:
(a) Organisational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these
Answer: C

Question. Identify the feature of profession which is not applicable here - “Sagar, just a graduate in humanities is appointed as the Plant superintendent in the company.’
(a) Well defined body of knowledge
(b) Restricted Entry
(c) Ethical code of conduct
(d) Service Motive
Answer: B

Question. Which aspect of management is violated by Sagar in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling
Answer: B

Question. Identify the nature of management highlighted in this line - “Sagar knew that there are certain theories and principles of management based on deep observation and experimentation.”
(a) Management as Profession
(b) Management as Science
(c) Management as an Art
(d) None of the above
Answer: B

Question. Which aspect of management is followed by Sagar in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling
Answer: C

Mona is the branch manager of Vidushi handicraft Private Limited. The company objective is to promote the sale of Indian handlooms and handicraft products. It sells fabrics, furnishings, ready-made and household items made out of traditional Indian fabrics. Mona 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 craft people in the company, who developed some prints for bed covers in bright colour on silk. Although the product looked very attractive and impressive, they are relatively expensive on the front of affordability for an average customer. Mona suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on regular basis to keep the cost under control.

Question. She appoints a team of designers and crafts people in this 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: B

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

Question. Mona suggested that we should keep the silk covers for special festive occasions and offer the cotton bed covers on regular basis to keep costs under control.”
(a) Staffing
(b) Planning
(c) Organizing
(d) None of the above
Answer: B

A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for last couple of years. The top management calls an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told about the activities they have to perform. Then, the work is divided among individuals. The efforts taken by the firm turns out to be very productive for the organization and it gains huge profit. The newspaper and the management institutes also praised the company for its high standards of management. However, as time passes the size of the organization grows and thus they think of bringing another concept of management with lots of precision. The concept of management is not voluntary but rather based on a lot of clear-cut thinking in advance. The main idea is to reduce confusion among employees regarding activities they have been assigned.

Question. Identify the function of management discussed in the given case which the company follows
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling
Answer: A

Question. Identify the concept of management discussed which the company tries to bring
(a) Coordination
(b) Controlling
(c) Cooperation
(d) Planning
Answer: A

Question. Find out one importance of the concept highlighted in the given case
(a) Growth in size
(b) Specialization
(c) Functional differentiation
(d) None of the above
Answer: A

Question. Find out the feature of concept highlighted in the given case
(a) Continuous process
(b) Deliberate effort
(c) Pervasive
(d) Responsibility of all managers
Answer: B

Mohit is the managing director of S Limited manufacturing different varieties of cheese. He has an efficient team working under him consisting of Rajan who is the Production manager , Vineet the Marketing manager and Asif the finance manager. They understand and interpret the policies made by Mohit to ensure that their department has adequate manpower, assign them the necessary duties and motivate them to achieve the desired objective.

Question. Mohit is working at which level of management
(a) Top level
(b) Middle level
(c) Lower level
(d) Operational level
Answer: A

Question. Identify another function of the level highlighted in the given case
(a) Oversee the efforts of the workforce
(b) Integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
(c) Cooperate with other departments for smooth functioning of the organization
(d) None of the above
Answer: B

Question. The departmental managers Rajan, Vineet and Asif are working at which level of management
(a) Supervisory level
(b) Middle level
(c) Lower level
(d) Top level
Answer: B

Question. Identify another function of the level highlighted in the given case
(a) Formulate overall organisational goals and strategies
(b) Analyze the business environment and its implication for the survival of the firm
(c) Cooperate with other departments for smooth functioning of the organization
(d) Maintain quality of output, minimize material wastage and maintain safety standards
Answer: C