CBSE Class 12 Business Studies Organising MCQs Set 07

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: (a)

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 responsibility for performance.
(d) It is an economical structure to maintain.
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. Under which function of management, the relationship between different posts is explained?
(a) Planning
(b) Communication
(c) Organising
(d) Supervision
Answer: (c)

Question. Number of subordinates under a superior is called?
(a) Office environment
(b) Strict control
(c) Span of management
(d) None of the above
Answer: (c)

Question. What is the key to managerial posts?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above.
Answer: (b)

Question. Which of the following is not part of organising process?
(a) Grouping of activities
(b) Departmentalisation
(c) Complete centralisation
(d) None of the above
Answer: (c)

Question. ……………….may be defined as the framework within which managerial and operating tasks are performed.
(a) Organisational structure
(b) Delegation
(c) Span of management
(d) None of the above
Answer: (a)

Question. Which of the following is not an importance of organising?
(a) Increase cost
(b) Clarity in working relationship
(c) Adoption to change
(d) None of the above
Answer: (a)

Question. Which of the following is not structure of organisation?
(a) Functional
(b) Divisional
(c) Control
(d) None of the above
Answer: (c)

Question. If a manager is overburdened then she/he must use the following concept.
(a) Delegation
(b) Decentralisation
(c) Span of Management
(d) None of the above
Answer: (a)

Question. Evenly distribution of authority at every level leads to
(a) Delegation
(b) Decentralisation
(c) Informal Organisation
(d) Formal Organisation
Answer: (b)

Question. Fast decision can be taken by using the concept of
(a) Delegation
(b) Formal Organisation
(c) Decentralisation
(d) None of the above
Answer: (c)

Question. In Delegation, we have sharing of authority and responsibility between
(a) Two levels
(b) Multiple level
(c) Department wise
(d) None of the above
Answer: (a)

Question. In Decentralisation, we have sharing of authority and responsibility at
(a) Two levels
(b) Multiple level
(c) Department wise
(d) None of the above
Answer: (b)

Question. Which of the following a policy matter
(a) Decentralisation
(b) Delegation
(c) Formal Organisation
(d) Informal Organisation
Answer: (a)

Question. Which of the following is a routine activity
(a) Decentralisation
(b) Delegation
(c) Formal Organisation
(d) Informal Organisation
Answer: (b)

Question. Centralisation refers to
(a) Retention of decision making authority
(b) Opening new branches
(c) Separation of divisions or levels
(d) Dispersal of decision making authority
Answer: (a)

Question. The main purpose of ____________ is to reduce the workload of managers.
Answer: Delegation

Question. The main purpose of ___________ is involvement of all the employees working at different levels.
Answer: Decentralisation

Question. Selective Dispersal of Authority leads to _____________.
Answer: Decentralisation

Question. Accountability can be delegated by using the process of delegation. (True/ False)
Answer: False

Question. In delegation, we multiply the authority with two, whereas in decentralisation, we multiply with many. (True/False)
Answer: True

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

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. The extent of _________ decides the power that each job position enjoys in the organisation.
(a) Authority
(b) Responsibility
(c) Delegation
(d) Decentralisation
Answer: (c)

Question. Under Accountability a person is answerable for the
(a) Growth of company
(b) Final outcome of the assigned task
(c) Delegation of authority
(d) None of these
Answer: (b)

Question. ___________ keeps the subordinates in a state wherein they are constantly challenged and have to develop solutions for the various problems they encounter.
(a) Delegation
(b) Decentralisation
(c) Controlling
(d) Responsibility
Answer: (b)

Question. In many organisations the top management plays an active role in taking all decisions while there are others in which this power is given to even the lower levels of management. Decision making authority is shared with lower levels and is consequently placed nearest to the points of action. Identify the concept of management highlighted by the phrase “Decision making authority is shared with lower levels and is consequently placed nearest to the points of action.”
(a) Authority
(b) Accountability
(c) Delegation
(d) Decentralisation
Answer: (d)

Question. The extent of __________ decides the power that each job position enjoys in the organisation.
(a) Authority
(b) Responsibility
(c) Delegation
(d) Decentralisation
Answer: (a)

Question. When decisions taken by the lower levels are numerous as well as important an organisation can be regarded as greatly __________.
(a) Centralised
(b) Decentralised
(c) Efficient
(d) None of these
Answer: (b)

Question. ____________ keeps the subordinates in a state wherein they are constantly challenged and have to develop solutions for the various problems they encounter.
(a) Delegation
(b) Decentralisation
(c) Controlling
(d) Responsibility
Answer: (b)

Question. Decentralisation should be applied with caution as _________.
(a) It can lead to organisational disintegration if departments start to operate on their own guidelines which may be contrary to the interest of the organisation.
(b) Decentralisation must always be balanced in areas of major policy decisions.
(c) It recognises the decision maker’s need for autonomy.
(d) It propagates the belief that people are competent, capable and resourceful.
Answer: (a)

Question. Match the concept of management in Column I with their respective explanation in Column II :
A. Authority (i) Obligation of a subordinate to properly perform the assigned duty.
B. Responsibility (ii) Answerability for the final outcome of the assigned task.
C. Accountability (iii) It refers to the right to take decisions inherent in a managerial position to tell people what to do and expect them to do it.
(a) (i), (ii), (iii)
(b) (iii), (i), (ii)
(c) (ii), (iii), (i)
(d) (iii), (ii), (i)
Answer: (b)

Question. It flows downwards, from superior to subordinate:
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these
Answer: (a)