CUET Business Studies MCQs Unit V Organising

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

(a) Authority

(b) Responsibility

(c) Accountability

(d) Permissibility

Answer: B

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: Which organisation structure is consciously or deliberately established?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None

Answer: A

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

(a) Accountability

(b) Authority

(c) Responsibility

(d) Informal organisation

Answer: D

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

(a) Informal

(b) Formal

(c) Both (a) and (b)

(d) None

Answer: B

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

Answer : D

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. In the context of process of organising, .......... creates superior subordinate hierarchy and helps in coordination among various activities of the organisation.
(a) assignment of duties
(b) departmentalisation
(c) identification and division of work
(d) establishing reporting relationships

Answer : D

Question. Centralisation refers to
(a) retention of decision making authority
(b) dispersal of decision making authority
(c) creating divisions as profit centres
(d) opening new centres or branches

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 organisation

Answer : C

Question. A network of social relationship that arise spontaneously due to interaction at work is called
(a) Formal organisation
(b) Informal organisation
(c) Decentralisation
(d) Delegation

Answer : B

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. 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. The organisation process starts with
(a) assignment of duties
(b) establishing reporting relationships
(c) identification and division of work
(d) departmentalisation

Answer : C

Question. Which of the following is/are the importance of organising?
(a) Adaptation to change
(b) Effective administration
(c) Expansion and growth
(d) All of the above

Answer : D

Question. Organisation leads to optimal utilisation of resources which helps in
(a) prevention of confusion
(b)minimisation of wastage
(c) increased project timeline
(d) Both ((a) and ((b)

Answer : D

Question. On what, the degree of centralisation and ecentralisation depend?
(a) The amount of authority delegated to the middle level
(b) The amount of authority delegated to the lowest level
(c) The amount of authority delegated to the highest level
(d) The amount of authority delegated to the topmost level

Answer : B

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. Which of the following is/are true about functional structure?
(a) It is economical as there is minimal duplication of resources
(b) It is costlier as there is duplication of resources
(c) It is easier to fix responsibility on each division
(d) Both (b) and (c)

Answer : A

Question. Functional structure of organisation is most suitable
(a) in case of diversification of activities
(b) in case of large organisation
(c) when high degree of specialisation is required
(d) All of the above

Answer : D

Question. Divisional structure can bring ............ that can lead to incompatibilities.
(a) specialisation
(b) compartmentalisation
(c) departmentalisation
(d) All of the above

Answer : B

Question. If a firm wants to diversify its business into different products and expand to different territories, which organisation structure would be suited for this firm?
(a) Divisional structure
(b) Functional structure
(c) Informal structure
(d) Network structure

Answer : A

Question. Mrs. Sharma has joined a new organisation named Realistic Ltd. On her first day to office, she analysed that there were no different departments assigned for various product lines. She observed a separate team structure for each of them and also that they functioned independently of one another. From her analysis, what can we make out of the Realistic Ltd.?
(a) It is a functional form of organisation
(b) Divisional structure is the way of the organisation
(c) The company follows the informal structure
(d) No observation can be made out of her analysis

Answer : B

Question. Once departments are created, each department is placed under the charge of a ………… .
(a) branch manager
(b) departmental head
(c) HR manager
(d) marketing head

Answer : B

Question. What explains informal organisation the best?
(a) All departments in an organisation reports to a coordinating head
(b) Network of personal and social relationships that arise as people associate with other people in a work environment
(c) This structure is created intentionally by the managers for achievement of organisational goal
(d) None of the above

Answer : B

Question. Formal organisation leads to
(a) freedom and independence
(b) procedural delays and delayed decision-making
(c) more emphasis on the interpersonal relations
(d) faster spreading of information

Answer : B

Question. Informal organisation provides necessary environment for individual’s ……… .
(a) authority
(b) accountability and responsibility
(c) creativity and innovation
(d)None of the above

Answer : C

Question. One of the disadvantages of informal organisation is that it generally prefers
(a) deviance
(b) status quo
(c) disruptiveness
(d) disorderliness

Answer : B

Question. Organising can be defined as
(a) a structure
(b) a process
(c) Both ((a) and ((b)
(d) a function of planning

Answer : C

Question. ........... develops initiative among subordinates.
(a) Delegation
(b) Authority
(c) Obligation
(d) Decentralisation

Answer : D

Question. Minimum freedom for managers and maximum constraints are main features of
(a) total autonomy
(b) total decentralisation
(c) total centralisation
(d) total congruency

Answer : C

Question. Being answerable to the final outcome is a phrase which can be associated with
(a) authority
(b) duty
(c) responsibility
(d) accountability

Answer : D

Question. A company is very f lexible in its working. It wants the proper participation of all the employees in the organisation. Also, the company wants to expand and hence it uses the feature ‘development of managerial talent for future.’ In which aspect is it covered?
(a) Decentralisation
(b) Formal organisation
(c) Authority
(d) Continuity

Answer : A

Question. Which of the following statements is not true?
(a) Formal organisation originates as a result of company’s rules and policies
(b) Informal organisation arises out of personal qualities of individuals
(c) Under formal organisation, flow of communication takes place in any direction
(d) Formal organisation is rigid in nature

Answer : C

Question. Which of the following is not an importance of delegation of authority?
(a) Effective management
(b) Relief to top-managers
(c) Facilitation of growth
(d) Basis of management hierarchy

Answer : B

Question. An organisation structure in which various departments are created on the basis of products, territory or region is called a
(a) divisional structure
(b) functional structure
(c) matrix structure
(d) staff structure

Answer : A

Question. I refer to a network of personal and social relationships which spontaneously originates within the formal set up. Who am I?
(a) Informal organisation
(b) Party organisation
(c) Social organisation
(d) Formal organisation

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. ........... organisation emerges from ............ organisation.
(a) Divisional, functional
(b) Formal, informal
(c) Informal, formal
(d) Functional, divisional

Answer : C