CBSE Class 12 Business Studies Organising MCQs Set 06

Question: Which of the following are parts of formal organisation?
a) Functional organisation
b) Line organisation
c) Line and staff organisation
d) All of these
Answer: d

Question: What is the key to managerial post?
a) Responsibility
b) Authority
c) Accountability
d) None
Answer: b

Question: On which of the following does decentralisation depend?
a) Centralisation
b) Specialisation
c) Scientific management
d) Delegation
Answer: d

Question: In which type of organisation, the principle of scalar chain is fully followed?
a) Divisional organisation
b) Formal organisation
c) Informal organisation
d) None of the above
Answer: b

Question: Number of subordinates under a superior is called
a) Office environment
b) Strict control
c) Span of management
d) Scalar chain
Answer: c

Question: In which situation does the divisional structure happen to be appropriate?
a) Where the number of major products is more than one
b) Where the size of the organisation is quite large
c) Both the above
d) Where primarily only one product is sold
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) Nowhere
Answer: c

Question: If a company deals in metal products and plastic products, what type of organisation will be useful for it?
a) Informal
b) Functional
c) Both the above
d) Divisional
Answer: d

Question: Which organisation structure is compulsory?
a) Formal
b) Informal
c) Both (a) and (b)
d) None
Answer: a

Question: Grouping of activities on the basis of product lines is a part of
a) Delegated organisation
b) Divisional organisation
c) Functional organisation
d) Autonomous organisation
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: Which one is not correct in respect of delegation of authority
a) Increase in administrative work
b) Development of sub-ordinates
c) Convenience in business expansion
d) Quick and better decision possible
Answer: a

Question: Grouping of activities in accordance to their nature
a) Division of work
b) Departmentalization
c) Specialization
d) Decentralization
Answer: b

Question: Establishing reporting system leads to
a) Specialization
b) Improved productivity
c) Clarity of relationship
d) Rumours
Answer: c

Question: Which organisation resists changes?
a) Formal
b) Informal
c) Both (a) and (b)
d) None
Answer: b

Question: Extended form of delegation of authority is called
a) Specialisation
b) Centralisation
c) Decentralisation
d) Division of labour
Answer: c

Question: It is a limitation of functional structure
a) Functional empires
b) Product specialization
c) Functional specialization
d) Lack of coordination
Answer: a

Question: Ram was given a task by his superior to prepare a plan in 15 days. He asked two of his subordinates to work upon two aspects of his task. One of the subordinates met with an accident and could not complete his work. Who is Answer: able for this task?
a) Ram is accountable
b) Ram’s subordinate is responsible
c) Ram’s superior is responsible
d) None of them is responsible
Answer: a

Question: Which one is not correct in respect of formal organisation
a) Definite responsibility
b) Definite authority
c) Effective control
d) Social popularity
Answer: d

Question: Grouping of activities as the basis of functions is a part of
a) Decentralized organization
b) Functional organization
c) Centralized organization
d) Informal organization
Answer: b

Question: Decentralization is the extension of
a) Responsibility
b) Authority
c) Delegation
d) Planning
Answer: c

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

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

Question: A tall structure has a
a) Narrow span of management
b) No span
c) Informal organization
d) Centralization
Answer: a

Question: (I) Delegation of authority is inevitable and decentralisation is voluntary.
(II) Scope of delegation of authority is limited and the scope of decentralisation is broad.
Above both statement are:
(a) True
(b) False
(c) Statement (I) is True and Statement (II) is False
(d) Statement (I) is False and Statement (II) is True
Answer: a

Fill In The Blanks:

Question: Organising clarify ————— relationship.
Answer: working

Question: Organising is the process of defining and ———– the activites of the enterprise.
Answer: grouping

Question: Interdependental conflicts are one of the disadvantages of ———— structure.
Answer: functional

Question: Delegation of —————- merely means the granting of authority to subordinate.
Answer: Authority

Question: Each division is ———— because within each division functions ae performed altogether to get goals.
Answer: multifunctional

Question: Organising involves ———– of work into small task.
Answer: dividing

Question: ———————— is the process of decision making where authority to decide is delegated or shared among all levels of management.
Answer: decentralization

True/ False:

Question: Resposibility is the obligation of a subordinate to perform the assigned duty.
Answer: True

Question: Delegation allows managers to extend their area of operation.
Answer: True

Question: Decentralization facilitate growth of employee.
Answer: True

Question: Establishing reporting system is not the last step of organizing process.
Answer: False

Match the following:

Question:
a.Centralization                       1.Decision all taken at the apex of management hierarchy.
b.Decentralization                   2.Decision making among all level of management.
                                                3.No decision power is given
Answer: a-1,b-2

Question:
a.delegation is                      1.function of management
b.decentralization is              2.Principle of management
                                             3.granting of authority to subordinate
                                             4.Granting of authority to the lowest level
Answer: a-3,b-4

Question:
a.delegation ensures       1.gossiping
                                        2.Informal relationship
                                        3.peace.
                                        4.ease in burden of managers
Answer: a-4