CBSE Class 12 Business Studies Organising MCQs Set 03

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

Answer : A

Question: Properly perform the assigned duty, is ___________
(a) Accountability
(b) Authority
(c) Responsibility 
(d) None of the options

Answer : C

Question: _________ is helpful in reducing the burden of the manager
(a) Delegation 
(b) Centralisation
(c) Decentralisation
(d) None of the options

Answer : A

Question: Right of an individual to command his subordinates is ______________
(a) Accountability
(b) Authority 
(c) Responsibility
(d) None of the options

Answer : B

Question: Authority delegated to a subordinate can be taken back under __________
(a) Centralisation
(b) Delegation 
(c) Decentralisation
(d) None of the options

Answer : B

Question: Which of the following is arises from delegation of authority?
(a) Responsibility 
(b) Accountability
(c) Authority
(d) None of the options

Answer : A

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

Answer : A

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) Assignment of duties
(b) Identification and division of work
(c) Establishing reporting relationships
(d) Departmentalisation 

Answer : D

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

Answer : B

Question: Grouping of activities on the basis of functions is a part of
(a) Divisional organisation
(b) Decentralised organisation
(c) Centralised organisation
(d) Functional organisation 

Answer : D

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

Answer : C

Question: Which of the following is not a process of organising:-
(a) Assignment of duties
(b) Grouping jobs
(c) Division of work
(d) Decision making 

Answer : D

Question: One of the following is not an importance of organising:
(a) Growth and expansion
(b) Role clarity
(c) Adaptation to change
(d) Performance appraisal 

Answer : D

Question: Organisation structure establishes relationships between
(a) suppliers and customers.
(b) people, work and resources. 
(c) organisation and environment.
(d) organisation and society.

Answer : B

Question: Degree of decentralisation indicates
(a) degree of accountability.
(b) degree of authority delegation. 
(c) degree of responsibility.
(d) degree of power delegation.

Answer : B

Question: ___ involves giving authority and responsibility to subordinates.
(a) Decentralisation
(b) Division of work
(c) Delegation 
(d) Centralisation

Answer : C

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) Relational structure
(b) Divisional structure
(c) Functional structure 
(d) None of the options

Answer : C

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

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) Informal structure
(b) Functional structure 
(c) Divisional structure
(d) None of the options

Answer : B

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 functional structure?
(a) It may lead to conflict of interests among departments due to varied interests.
(b) It may lead to difficulty in co-ordination among functionally differentiated departments.
(c) It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
(d) It leads to occupational specialisation. 

Answer : D

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

Answer : B

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

Answer : B

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

Answer : B

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

Answer : C

Question: Meaning of authority is__________________
(a) Right to Command 
(b) Subordinate to Superior relationship
(c) Right to avoid taxes
(d) None of the options

Answer : A

Question: For delegation to be effective it is essential that responsibility be accompanied with necessary
(a) Manpower
(b) Authority 
(c) Promotions
(d) Incentives

Answer : B

Question: Organisation establishes relationship between
(a) Customer, work and resources
(b) People, work and management
(c) People, work and resources 
(d) Customer, work and management

Answer : C

Question: ________ cannot be entirely delegated
(a) Responsibility 
(b) Accountability
(c) Authority
(d) None of the options

Answer : A

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

Answer : A

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) Matrix structure
(b) Divisional structure
(c) Network structure
(d) Functional structure 

Answer : D

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

Answer : A

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

Answer : B

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

Answer : A

Question: Span of management refers to
(a) Length of term for which a manager is appointed
(b) Number of members in top management
(c) Number of subordinates under a superior 
(d) Number of managers

Answer : C

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) Matrix structure
(b) Divisional structure
(c) Network structure
(d) Functional structure 

Answer : D

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

Answer : B