CBSE Class 12 Business Studies Organising MCQs Set 05

Question: Which of the following has a wider scope?
a) Management
b) Centralisation
c) Decentralisation
d) Delegation
Answer: a

Question: What do we call the division of organisation structure on the basis of products?
a) Functional organisation
b) Divisional organisation
c) Both (a) and (b)
d) None
Answer: b

Question: Which of the following increases the importance of the subordinates?
a) Centralisation
b) Decentralisation
c) Delegation
d) Specialisation
Answer: b

Question: How many standardised forms of organisation structure are there?
a) Two
b) Three
c) Four
d) No definite number
Answer: d

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 of the following organisations lasts longer?
a) Formal
b) Divisional
c) Both the above
d) Informal
Answer: c

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: Under what function of management is the relationship between different posts (positions) explained?
a) Planning
b) Communication
c) Organisation
d) Supervision
Answer: c

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: Which of the following is not an element of delegation?
a) Accountability
b) Authority
c) Responsibility
d) Informal organisation
Answer: d

Question: “Every step that increases the importance of the subordinates is called decentralisation and any step that decreases it is called centralisation.” What is it about?
a) Formal organisation
b) Informal organisation
c) Both (a) and (b)
d) None of these
Answer: d

Question: Which one of the following is not a part of the process of organisation?
a) Grouping of activities
b) Doing complete centralisation
c) Defining inter-relationship
d) Knowing the objectives of enterprise
Answer: b

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: The form of organisation known for giving rise to rumours is called
a) Centralised organisation
b) Decentralised organisation
c) Informal organisation
d) Formal organisation
Answer: b

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 written in the organisation manual?
a) Goods purchased
b) Goods sold
c) Meeting of organisation
d) Authority and responsibility of different posts
Answer: d

Question: Which of the following is based on rules and procedures?
a) Informal
b) Formal
c) Both (a) and (b)
d) None
Answer: b

Question: ________ is a more stable organisation.
a) Formal
b) Informal
c) Both (a) and (b)
d) None
Answer: a

Question: What is decentralisation?
a) Short form of delegation
b) Extended form of delegation
c) Middle form of delegation
d) None of these
Answer: b

Question: Which is not a feature of formal organisation:
a) It is personal
b) It is more stable
c) It is deliberately created
d) It is based on rules and procedures
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: Grouping of activities on the basis of functions is a part of
a) Decentralised organisation
b) Divisional organisation
c) Functional organisation
d) Centralised organisation
Answer: c

Question: Centralisation refers to
a) Retention of decision making authority
b) Dispersal of decision making authority
c) Creating divisions as profit centers
d) Opening new centers or branches
Answer: a

Question: Departments are established on the basis of ________ in functional organisation.
a) Activities
b) Products
c) Demand
d) Market
Answer: a

Question: A network of social relationships that arises spontaneously due to interaction at work is called
a) Formal organisation
b) Informal organisation
c) Decentralisation
d) Delegation
Answer: b

Question: What is the basis of delegation of authority?
a) Centralisation
b) Decentralisation
c) Both (a) and (b)
d) Division of labour
Answer: d

Question: ‘More delegation of authority helps managerial development’ — this statement is related to
a) Delegation
b) Decentralisation
c) Centralisation
d) All the above
Answer: b

Question: How is accountability created?
a) By assigning responsibility
b) By assigning authority
c) Both (a) and (b)
d) None of these
Answer: b

Question: Which organisation structure is consciously or deliberately established?
a) Formal
b) Informal
c) Both (a) and (b)
d) None
Answer: a

Fill In The Blanks:

Question: —————- is the first step in the organizing process.
Answer: identification and division of work

Question: ————- is the Answer: ability for the outcome of the assigned task.
Answer: accountability

Question: Grouping of activities on the basis of functions is a part of ———— organization.
Answer: functional

True/ False:

Question: Divisional structure is suitable for the firms producing single poduct.
Answer: False

Question: Decetralization is the extension of delegation.
Answer: True

Question: Decetralization is good in all the organization.
Answer: False

Question: Delegation is compulsory, decentralization is optional.
Answer: True

Question: Organising clarifies authority and responsibility.
Answer: True

Question: Duplication of activities across the products do not incease the cost.
Answer: False

Match the following:

Question:

a.Authority                            1. Arises from formal position
b.accountability                    2. Arises from responsibility.
                                             3.Arises from the authority delegated.
Answer: a-1 b-3

Question:

a.Functional structure                  1.based on product.
b.Divisional structure.                  2.based on fuctions
                                                   3.based on number of persons.
Answer: a-2,b-1

Question:

a.Delegation                            1. lesser freedom to take own decison
b.Decentralization                   2. greater freedom to take decision
                                                3. no freedom
Answer: a-1,b-2

Question:
a.Importance of delegation.            1.Effective management
b.delegation.                                   2.distribution of authority
                                                        3.Create hierarcy
Answer: a-1,b-2