CBSE Class 12 Business Studies Organising MCQs Set A

Question: Under what function of management the relationship between different posts (positions) is explained?

(a) Planning

(b) Communication

(c) Organisation

(d) Supervision

Answer: C

Question: Where lies the need of organisation?

(a) In business organisation

(b) In non-business organisation

(c) In both (a) and (b)

(d) No where

Answer: C

Question: Which organisation structure is consciously or deliberately established?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None

Answer: A

Question: Which organisation structure is based on rules and procedures?

(a) Informal

(b) Formal

(c) Both (a) and (b)

(d) None

Answer: B

Question: Which structure of organisation is helpful in locating the inefficient employees?

(a) Formal

(b) Informal

(c) Both the above

(d) None of the above

Answer: A

Question: Which organisation structure does not have duplication of work?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None of these

Answer: A

Question: Which of the following is not the disadvantage of formal organisation?

(a) Lack of initiative

(b) Delay in work

(c) Lack of favouritism

(d) Mechanical relationship

Answer: C

Question: In which organisation structure do we find “group norms”?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None of these

Answer: B

Question: Which of the following is not an element of delegation?

(a) Accountability

(b) Authority

(c) Responsibility

(d) Informal organisation

Answer: D

Question: A network of social relationship that arises spontaneously due to interaction at work is called:

(a) Formal organisation

(b) Informal organisation

(c) Decentralisation

(d) Delegation

Answer: B

Question: Which of the following does not follow the scalar chain?

(a) Functional structure

(b) Divisional structure

(c) Formal organisation

(d) Informal organisation.

Answer: D

Question: A tall structure has a

(a) Narrow span of management

(b) Wide span of management

(c) No span of management

(d) Less levels of management

Answer: A

Question: Centralisation refers to

(a) Retention of decision-making authority

(b) Dispersal of decision-making authority

(c) Creating divisions as profit centre’s

(d) Opening new centres or branches

Answer: A

Question: For delegation to be effective it is essential that responsibility be accompanied with necessary

(a) Authority

(b) Manpower

(c) Incentives

(d) Promotions.

Answer: A

Question:  Span of management refers to

(a) Number of managers

(b) Length of term for which a manager is appointed

(c) Number of subordinates under a superior

(d) Number of members in top management

Answer: C

Question: The form of organisation known for giving rise to rumours is called

(a) Centralised organisation

(b) Decentralised organisation

(c) Informal organisation

(d) Formal organization

Answer: B

Question:  Grouping of activities on the basis of product lines is a part of

(a) Delegated organization

(b) Divisional organisation

(c) Functional organisation

(d) Autonomous organization

Answer: B

Question:  “Organisation is the harmonious adjustment of specialised parts of the accomplishment of some common purpose or purposes.” What does this statement imply?

(a) It implies the features of organisation

(b) It implies the importance of organisation like specialisation, adaptation to change etc

(c) It refers to the process of organisation which includes assignment of duties

(d) None of the above

Answer: B

Question:  ........... is the obligation to perform the assigned task.

(a) Authority

(b) Responsibility

(c) Accountability

(d) Permissibility

Answer: B

Question:  Vardhman Ltd. is engaged in manufacturing travelling bags. The objective of the company is to manufacture 50 bags a day. To achieve this, the efforts of all departments are co-ordinated, interlinked, authority, responsibility and relationship is established among various job positions. There is clarity on who is to report to whom. Which step of organising is being discussed here?

(a) Division of work

(b) Departmentalisation

(c) Assignment of duties

(d) Reporting relationships

Answer: D

Question:  There is a board meeting going on for the Synco Informatics Ltd. Two of the top level managers, Mr. Vivek and Mr. Ankit are of a different view when it comes to the kind of working structure of the organisation. Mr. Vivek says that the organisation deals in variety of products, the growth prospects of the organisation are high and that it wants to expand to different territories. Which structure is he fighting for?

(a) Divisional structure

(b) Functional structure

(c) Matrix structure

(d) Line structure

Answer: A

Question:  Everest Ltd. is engaged in manufacturing of refrigerators. The target of the organisation is to manufacture 200 refrigerators 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) Formal

(b) Divisional

(c) Functional

(d) Informal

Answer: C

Question:  Grouping of activities on the basis of functions is a part of

(a) Decentralised organisation

(b) Divisional organisation

(c) Functional organisation   

(d) Centralised organization

Answer: C

Question. Name the process which co-ordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing
Answer: c

Question. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above
Answer: d

Question. It is defined as the framework within which managerial and operating tasks are performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above
Answer: b

Question. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above
Answer: c

Question. As the span of management increases in an organisation, the number of levels of management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above
Answer: b

Question. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above
Answer: a

Question. Identify the type of organisational structure which facilitates occupational specialisation,
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure
Answer: a

Question. Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure
Answer: c

Question. This type of organisational structure is most suitable when the size of the organisation is large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Answer: b

Question. Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure
Answer: a

Question. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.
Answer: c

Question. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.
Answer: c

Question. Rishabh 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

Question. Indigo Limited has a staff of 300 people which is grouped into different departments. The organisational structure depicts that 100 people work in Production department, 150 in Finance department, 20 in Technology department and 30 in Human Resource department. Identify the type of organisational structure being followed by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of the above
Answer: a

Question. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.
Answer: b

Question. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of activities across products.
(b) All functions related to a particular product are integrated in one department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.
Answer: b

Question. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of duties
Answer: b

Question. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.
Answer: c

Question. Lakshay has been given the task of arranging for five-day conference for foreign delegates. In order to ensure smooth functioning of the event, he has made two people as co-ordinators to take care of activities related to registration and refreshment. Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) Directing
Answer: c

Question. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.
Answer: b

Question. Which of the following is not a merit of formal organisation?
(a) It is easier to fix responsibility for mistakes.
(b) Scalar chain of command is followed.
(c) It leads to effective achievement of organisational goals.
(d) It leads to faster spread of information and rapid feedback.
Answer: d

Question. Which of the following is not a demerit of formal organisation?
(a) It may lead to procedural delays.
(b) It may lead to spreading of rumours.
(c) It emphasises on following rigidly laid down policies.
(d) It places more importance on work rather than the relationships.
Answer: b

Question. Which of the following is not a feature of informal organisation?
(a) It originates from within the formal organisation.
(b) The standards of behaviour evolve from group norms.
(c) Scalar chain of command is not followed.
(d) It is deliberately created by the management.
Answer: d

Question. Which of the following is not a merit of informal organisation?
(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above.
Answer: c

Question. Which of the following is not a demerit of informal organisation?
(a) It leads to spreading of rumours.
(b) It gives more importance to structure and work.
(c) It may restrict implementation of changes within the organisation.
(d) It puts psychological pressure on members to conform to group expectations, even if they are against the interest of organisation.
Answer: b

Question. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation
Answer: d

Question. It arises from the established scalar chain which links the various job positions and levels of an organisation.
(b) Authority
(d) All of the above
(b) Top to bottom
(d) None of the above
Answer: b

Question. The authority flows from as we go higher up in the management hierarchy.
(a) Bottom to top
(b) Decreases
(c) In all directions
(d) None of the above
Answer: b

Question. The scope of authority _________ as we go higher up in the management hierarchy.
(a) Increases
(b) Decreases
(c) Remains same
(d) None of the above
Answer: a

Question. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Answer: a

Question. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Answer: c

Question. Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above
Answer: c

Question. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Answer: c

Question. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above
Answer: c

Question. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above
Answer: b

Question. Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above
Answer: a

Question. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above
Answer: a

Question. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above
Answer: a

Question. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above
Answer: c

Question. When decision-making authority is retained organisation is said to be by higher management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above
Answer: b