MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Nature and Significance of Management Class 12 MCQ Questions With Answers

Question 1.

Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.

(A) Management
(B) Planning
(C) Organising
(D) Controlling
Answer:
(A) Management

Explanation: Management as a process means f to carry out primary functions or activities that management performs to get things done. These functions are planning organising, staffing, directing and controlling.

Question 2.

Management is a/an process as it is an ongoing and never-ending process.

(A) Continuous
(B) Non-con tinuous
(C) Frequent
(D) Alter
Answer:
(A) Continuous

Explanation:

The process of management is a series of continuous, composite, but separate functions (planning, organising, directing staffing and controlling). These functions are simultaneously performed by all managers all the time.

Question 3

is used extensively for all types of activities and mainly for taking charge of different activities in any enterprise.

(A) Planning
(B) Management
(C) Coordination
(D) Staffing
Answer:
(B) Management

Explanation:
The activities involved in managing an enterprise are common to all organisations whether economic, social or political.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 4.

Which of the following feature of management states that the management functions cannot be performed in isolation?

(A) Management is a goal-oriented process.
(B) Management is all pervasive.
(C) Management is a continuous process.
(D) Management is a group activity.
Answer:
(D) Management is a group activity.

Explanation:
Management always refers to a group of people involved in managerial activities. The management functions cannot be performed in isolation. Even the result of management affects every individual and every department of the organisation. So it always refers to a group effort and not the individual effort of one person.

Question 5.

Management follows a series of continuous inter-related functions so it is called a/an:

(A) Series
(B) Process
(C) Experiment
(D) None of these
Answer:
(B) Process

Explanation:
Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.

Question 6.

Management is the process of designing and maintaining an environment in which work togethe efficiently and effectively

accomplishing selected aims.
(A) groups, independently
(B) individuals, in groups
(C) individuals, independently
(D) None of the above
Answer:
(B) individuals, in groups

Explanation:
Management unites the efforts of different individuals and create an environment to work in groups in the organisation towards achieving the goals.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 7.

If a manager is able to achieve the target production of 7,000 units but at a higher cost, then what will he be considered as?

(A) Only efficient
(B) Only effective
(C) Both efficient and effective
(P) Neither efficient nor effective
Answer:
(B) Only effective

Explanation:
Effectiveness in management is concerned with doing the right task, completing activities and achieving goals. In other words, it is concerned with the end result.

Question 8.

If a manager is not able to achieve the target production of 6,000 units but is able to reduce the costs significantly, then what will he be considered as?

(A) Only efficient
(B) Only effective
(C) Both efficient and effective
(D) Neither efficient nor effective
Answer:
(A) Only efficient

Explanation:
Efficiency means doing the task correctly and with minimum cost. Efficiency a is increased when for the same benefit or outputs, fewer resources are used and less costs are incurred.

Question 9.

Match the CHARACTERISTICS of management in Column I with their correct EXPLANATIONS in Column II:

Column I Column II
(a) Goal-oriented process (i) Management is a complex activity involving management of people, work and operations.
(b) Group activity (ii) Some aims and objectives are the basic reason for existence of an organization.
(c) Multi dimensional (iii) Diverse individuals with different needs work together to fulfill the common organizational goal.

(A) (ii), (i), (iii)
(B) (ii), (iii), (i)
(C) (iii), (ii), (i)
(D) (iii), (i), (ii)
Answer:
(B) (ii), (iii), (i)

Question 10.

“Anyone can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfill in the statement being discussed above:

(A) Ethical Code of Conduct
(B) Professional Association
(C) Restricted Entry
(D) Service Motive

Answer:
(C) Restricted Entry

Explanation:
The entry to a profession is restricted through an examination or through acquiring an educational degree. Whereas there is no legal restriction on appointment of a manager, anyone can become a manager irrespective of the educational qualification.

Question 11.

Which of the following nature of management involves skillful and personal application of existing knowledge to achieve desired results?

(A) Science
(B) Art
(C) Profession
(D) None of these
Answer:
(B) Art

Explanation:
A successful manager practices the art of management in the day-to-day job of managing an enterprise based on study. A manager applies his acquired knowledge in a personalised and skillful manner in the light of the realities of a given situation.

Question 12.

Which of the following statements is true for management as a science?

(A) Existence of theoretical knowledge
(B) Based on practice and creativity
(C) Principles based on experimentation
(D) Professional association
Answer:
(C) Principles based on experimentation

Explanation:
Scientific principles are first developed through observation and then tested through repeated experimentation under controlled conditions.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 13.

Management is ………….. .

(A) A Science
(B) An Art
(C) Both a science and an art
(D) None of the above
Answer:
(C) Both a science and an art

Explanation:
Management is both a science as well as an art. Like science it has systematic and well- organised body of knowledge and like
an art it requires personal skill, creativity and practice to apply such knowledge in the best possible way.

Question 14.

Art can be acquired through which of the following:

(A) Study
(B) Observation
(C) Experience
(D) All of the above
Answer:
(D) All of the above

Explanation:
In every art there is systematic and organized study material available to acquire theoretical knowledge of the art. Every artist must have personal skill and creativity to apply that knowledge.

Question 15.

A good manager works through a combination of which of the following?

(A) Practice
(B) Creativity and imagination
(C) Initiative and innovation
(D) All of the above
Answer:
(D) All of the above

Explanation:
A good manager should practice his skills. He should be creative, innovative, imaginative and take initiative to perform the | tasks of the organisation in order to achieve goals.

Question 16.

Nature of is said to be a systematic body of knowledge which explains certain general truths.

(A) Management as a Science
(B) Management as an Art
(C) Management as a Profession
(D) All of the above
Answer:
(A) Management as a Science

Explanation:
Science is a systematic body of knowledge. Its principles are based on a cause and effect relationship. Such systematized body of knowledge contains concepts, principles and theories which help to explain past events and to predict the outcome of specific actions.

Question 17.

Identify the nature of management when it is practised as personal application of existing knowledge to achieve desired results.

(A) Management as a Science
(B) Management as an Art
(C) Management as a Profession
(D) All of the above
Answer:
(B) Management as an Art

Explanation: Management is an art because it requires personal skill, creativity and practice to apply systematic and well-organised body of knowledge in the best possible way.

Question 18.

Match the NATURE of management in Column I with its correct EXPLANATION in Column II:

Column I Column II
(a) Art (i) Management is based on a systematic body of knowledge comprising well- defined principles based on a variety of business situations.
(b) Profession (ii) Principles of management are based on repeated experimentation and observation in different types of organisations.
(c) Science (iii) Manager applies the acquired knowledge in a personalized and skillful manner.

(A) (ii), (i), (iii)
(B) (ii), (iii), (i)
(C) (iii), (ii), (i)
(D) (iii), (i), (ii)
Answer:
(D) (iii), (i), (ii)

Question 19.

…………….. is the process by which the manager brings order out of chaos, removes conflict among people over allotted work or responsibility-sharing and creates an environment suitable for teamwork.

(A) Planning
(B) Organising
(C) Staffing
(D) Controlling
Answer:
(B) Organising

Explanation:
Proper organisational techniques help in the accomplishment of work and promote both the efficiency of operations and the effectiveness of results.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 20.

Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.

(A) Planning
(B) Organising
(C) Directing
(D) Controlling
Answer:
(D) Controlling

Explanation:
Controlling is the management function of monitoring organisational performance towards the attainment of organisational goals.

Question 21.

Which of the following functions of management helps in assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan?

(A) Planning
(B) Directing
(C) Staffing
(D) Organising
Answer:
(D) Organising

Explanation:
The function of organizing involves the determination of activities that need to be done in order to reach the company goals, assigning these activities to the proper personnel, and delegating the necessary authority to carry out these activities in a coordinated and cohesive manner.

Question 22.

The festive season was about to come. Mrs. Rubi, Head of Production department, called for a meeting of all the subordinates and communicated the objectives. Now she is establishing authority- responsibility relationship between superior and subordinates to avoid any delay.
…………….. function of management is stated in the above case.

(A) Organising
(B) Controlling
(C) Directing
(D) Planning
Answer:
(A) Organising

Explanation:
Organising is the management function of assigning duties, grouping tasks, establishing authority and allocating resources required to carry out a specific plan.

Question 23.

…………………… comes under the top management.

(A) Chief Executive Officer
(B) Operations Manager
(C) Foremen
(D) Supervisors
Answer:
(A) Chief Executive Officer

Explanation:
The top level management includes Board of Directors and the Chief Executive. This level determines the objectives of the business as a whole and lays down policies to achieve these objectives.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 24.

At which level managers spend more time in planning and organising?

(A) Top level
(B) Middle level
(C) Lower level
(D) All of these SSI
Answer:
(A) Top level

Explanation:
The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning, organizing and coordinating functions.

Question 25.

…………………… plays a very important role in the organization as they act as a link between the top and lower level management.

(A) Supervisory level
(B) Middle level
(C) Operational level
(D) First line managers
Answer:
(B) Middle level

Explanation:
Middle level Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers.

Question 26.

Hiring of employees is done by :

(A) Top level
(B) Middle level
(C) Lower level
(D) All of these
Answer:
(B) Middle level

Explanation:
Middle level management participate in employment and training of managers so they are responsible for hiring of employees.

Question 27.

Match the following POSITIONS in Column I with their LEVEL in Column II

Column I Column II
(a) Vice president (marketing) (i) Middle level management
(b) Production manager (ii) Lower level management
(c) Foreman (iii) Top level management

(A) (i), (iii), (ii)
(B) (ii),(iii), (i)
(C) (iii), (i), (ii)
(D) (ii), (i), (iii)
Answer:
(C) (iii), (i), (ii)

Question 28.

‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner.’ Identify the characteristic of coordination discussed above.

(A) Coordination ensures unity of action.
(B) Coordination is a deliberate function.
(C) Coordination is a continuous process.
(D) Coordination is an all-pervasive function.
Answer:
(B) Coordination is a deliberate function.

Explanation:
A manager has to coordinate the efforts of different people in a conscious and deliberate manner. Even where members of f a department willingly cooperate and work, coordination gives a direction to that willing spirit.

Question 29.

Coordination is needed at:

(A) Lower level of management
(B) Middle level of management
(C) Top level of management
(D) All of the above
Answer:
(D) All of the above

Explanation:
Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different deparments and diffrent leveis.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 30.

Which level of manager is responsible for coordination?

(A) Lower
(B) Middle
(C) Upper
(D) All levels
Answer:
(D) All levels

Explanation:
Coordination is needed at all three, i.e., top, middle, and lower managerial levels. Different activities performed at all levels are equally important. Thus, it is the responsibility of all the managers that they | make efforts to establish coordination.

Question 31.

Zamara Garments Ltd., found that there was decline in sales even in the festive season. After analyzing, it was found that purchase and sales departments were not synchronizing so that supply of goods could take place according to purchase orders.aspect of management is lacking above.

(A) Planning
(B) Organising
(C) Controlling
(D) Coordination
Answer:
(D) Coordination

Explanation:
Coordination involves synchronisation of the different actions or efforts of the various units of an organisation.

Question 32.

Making timetable in an educational institute is an example of ……………….. .

(A) Organising
(B) Coordination
(C) Controlling
(D) None of these
Answer:
(B) Coordination

Explanation:
Planning is the elementary stage of achieving co-ordination. When various functions are properly planned and various policies are integrated then co-ordination will be easily achieved.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 33.

The process by which a manager synchronizes the activities of different departments is :

(A) Planning
(B) Organising ”
(C) Controlling
(D) Coordination
Answer:
(D) CoordinationExplanation:
Coordination is the integration, unification, synchronization of the efforts of the departments to provide unity of action for pursuing common goals.

Question 34.

Coordination is needed when:

(A) An individual is working independently.
(B) A group is working.
(C) Both when an individual is working independently and a group is working.
(D) Neither when an individual is working independently nor when a group is working.
Answer:
(B) A group is working.

Explanation:
The need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can g be said that coordination is related to group effort and not individual effort.

Question 35.

Coordination is:

(A) he last function of management.
(B) The first function of management.
(C) The essence of management.
(D) Aseparate function of management.
Answer:
(C) The essence of management.

Explanation:
Coordination is the essence of management, for achieving harmony among individual efforts towards the accomplishment of group goals.

Question 36.

Coordination is:

(A) A random effort and established by itself.
(B) A deliberate effort and established by itself.
(C) A random effort where manager also makes an effort to coordinate.
(D) A deliberate effort where manager also makesan effort to coordinate.
Answer:
(D) A deliberate effort where manager also makesan effort to coordinate.Explanation:
Every manager tries to coordinate the activities of organisation to avoid confusion and chaos. Without coordination efforts of individuals cannot be united and integrated; that is why while performing various activities in the organisation managers deliberately perform coordination function.

Question 37.

Which of the following processes provide the requisite amount, quality, timing and sequence of efforts and ensures that planned objectives are achieved with a minimum of conflicts?

(A) Planning
(B) Controlling
(C) Organising
(D) Coordination
Answer:
(D) Coordination

Explanation:
The process of coordinating the activities of an organisation begins at the planning stage itself. Coordination is needed to avoid inconsistencies in priorities, objectives and policies which may adversely affect the realisation of overall objectives of the company.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 38.

Match the following FEATURES of coordination in Column I with their correct EXPLANATION in Column II:

Column I Column II
(a) Pervasive function (i) Begins at the planning stage and continues till controlling
(b) Continuous process (ii) Unifies unrelated or diverse activities or interests
(c) Deliberate function (iii) Required at all levels of management
(d) Integrative function (iv) Conscious effort by the manager

(A) (i), (iv), (iii), (ii)
(B) (iii), (i), (iv), (ii)
(C) (iv), (iii), (i), (ii)
(D) (ii), (iv), (i), (iii)
Answer:
(B) (iii), (i), (iv), (ii)

Assertion and Reason Based MCQs

Directions: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(C) (A) is true, but (R) is false.
(D) (A) is false, but (R) is true.
Question 1.

Assertion (A): Management is a goal-oriented process.
Reason (R): An organization has a set of basic goals which are the basic reasons for its existence.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Different organisations have different goals. Management unites the efforts of different individuals in the organisation towards achieving these goals.

Question 2.

Assertion (A): Management is a dynamic function and has to adapt itself to the changing environment.
Reason (R): The effect of management is noticeable in an organisation where targets are met according to plans.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 3.

Assertion (A): Management is responsible for setting and achieving objectives for the organisation. Reason (R): The basic objective of any business is survival.

(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth.

Question 4.

Assertion (A): Management increases efficiency. Reason (R): An organisation has a single objective to serve the purpose of different groups that constitute it.

Answer:
(C) (A) is true, but (R) is false.

Explanation:
The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling activities of the organisation. An organisation has multiple objectives to serve the purpose of different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of society.

Question 5.

Assertion (A): Profession involves skillful and personal application of existing knowledge to achieve desired results.
Reason (R): Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art.

Answer:
(D) (A) is false, but (R) is true.

Explanation:
Art involves skillful and personal application of existing knowledge to achieve desired results. Art presupposes the existence of certain theoretical knowledge.

Question 6.

Assertion (A): Scientific principles have universal application and validity.
Reason (R): Management principles are not exact like scientific principles so their application and use is not universal.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).

Explanation:
Scientific principles are based on truth and they can be applied at every time and in every situation. Thus, its universal application is possible. In the field management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 7.
Assertion (A): Management is a systematic body of knowledge.
Reason (R): Management has its own theory and principles that have developed over a period of time.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).
Explanation:
Management has a systematized body of knowledge. Like all other organised activities, management has its own theory, principles, vocabulary of terms and concepts.

Question 8.

Assertion (A): All professions are bound by a code of conduct which guides the behaviour of its members.
Reason (R): There are several associations of practicing managers in India, that has laid down a code of conduct to follow.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).Explanation:
Every profession has a certain code of conduct to follow. There are several associations of practicing managers in India, like the AIMA (All India Management Association) that has laid down a code of conduct to regulate the activities of their members.

Question 9.

Assertion (A): Middle Management is the link between top and lower level managers.
Reason (R): Middle management are subordinate to top managers and superior to the first line managers.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first line managers.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 10.

Assertion (A): Lower level managers spend more time in planning and organizing.
Reason (R): Top Management consists of the senior- most executives of the organisation.

Answer:
(D) (A) is false, but (R) is true.

Explanation:
Top level managers spend more time in planning and organizing. They are usually referred to as the chairman, the chief . executive officer, chief operating officer, president and vice-president. They formulate overall organisational goals and strategies for their achievement.

Question 11.

Assertion (A): Planning is the first function management. –
Reason (R): Planning implies setting goals in advance and developing a way of achieving them efficiently and effectively.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Planning is the function of determining in advance what is to be done and who is to do it. Planning bridges the gap between where we are and where we want to go.

Question 12.

Assertion (A): Staffing is finding the right people for the right job and is an important aspect of management.
Reason (R): Staffing makes sure that right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Staffing is also known as the human resource function and it involves activities such as recruitment,selection, placement and training of personnel.

Question 13.

Assertion (A): Coordination integrates group efforts.
Reason (R): Coordination unifies unrelated or diverse interests into purposeful work activity.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Coordination gives a common focus to group effort to ensure that performance is as it was planned and scheduled.

Question 14.

Assertion (A): Coordination is the essence of management.
Reason (R): Coordination is the force that binds all the other functions of management.

Answer:
(A) Both (A) and (R) are true, and (R) is the correct explanation of (A).

Explanation:
Coordination is the common f thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation. Coordination is implicit and inherent in all functions of an organisation.

Question 15.

Assertion (A): Coordination begins at the planning stage and continues till controlling.
Reason (R): Coordination is a one-time process.

Answer:
(C) (A) is true, but (R) is false.

Explanation:
coordination is a continuous process. It is not a one-time function but continuous process. It begins at the planning stage and continues till controlling. %

Question 16.

Assertion (A): Coordination is an all-pervasive function.
Reason (R): Coordination ensures unity of action.

Answer:
(B) Both (A) and (R) are true, but (R) is not the correct explanation of (A).Explanation:
Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.

Case-Based MCQs

I. Read the following text and answer the following questions on the basis of the same:
Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items made out of traditional Indian fabrics. Sana decides quantities, varieties, colours and textures of all the above items and then allocates resources for their purchase from different suppliers.

She appointed a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.

Question 1.

“She appointed a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk.” Which function of management is highlighted in this context ?

(A) Controlling
(B) Staffing
(C) Planning
(D) Directing
Answer:
(B) Staffing

Explanation:
Staffing is a very important aspect of management so as to make sure that the right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 2.

In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.” The above line focus on which feature of management?

(A) Management is an intangible force.
(B) Management is a goal oriented process.
(C) Management is pervasive in nature.
(D) Management is a continuous process.
Answer:
(B) Management is a goal oriented process.Explanation:
An organisation has a set of f basic goals which are the basic reason for its existence. Management unites the efforts of different individuals in the organisation *” towards achieving these goals.

Question 3.

With reference to the above case, at which level of management Sana is working?

(A) Lower level
(B) Top level
(C) Middle level
(D) Shop floor
Answer:
(C) Middle level

Explanation:
Middle Management is the link between top and lower level managers. They are subordinate to top managers and superior to the first line managers. They are usually known as division heads.

Question 4.

“Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.” Which function of management is highlighted in this context?

(A) Controlling
(B) Staffing
(C) Organising
(D) Planning
Answer:
(A) Controlling

Explanation:
Controlling is the management function of monitoring organisational performance towards the attainment of organi- sational goals. The task of controlling involves establishing standards of performance, measuring current performance, comparing this with established standards and taking corrective action where any deviation is found.

II. Read the following text and answer the below questions :

A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting. For this, they have outlined a series of activities to be performed by each person. The people are told the activities they have to perform. Thus, the work is divided among individuals. The efforts taken by the firm turn out to be very productive for the organisation and it gains huge profit.

The newspapers and management institutes also praise the company for its high standards of management. However, as time passes the size of the organisation grows and thus they think of bringing another concept of management with a lot of precision. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.

Question 1.

Identify the function of management highlighted in the above lines which the company follows :

(A) Planning
(B) Organising
(C) Directing
(D) Controlling
Answer:
(A) Planning

Explanation:
Planning is the function of determining in advance what is to be done and who is to do it. This implies setting goals in advance and developing a way of achieving them efficiently and effectively. Planning cannot prevent problems, but it can predict them and prepare contingency plans to deal with them if and when they occur.

Question 2.

Identify in the above lines a concept of management discussed which the company tries to bring.

(A) Coordination
(B) Cooperation
(C) Controlling
(D) Planning
Answer:
Option (A) is correct.

Question 3.

Find out one importance of the concept highlighted in the above case.

(A) Growth in size
(B) Specialisation
(C) Functional differentiation
(D) None of the above
Answer:
(A) Growth in size

Explanation:
As organisations grow in size, the number of people employed by the organisation also increases. At times, it
may become difficult to integrate their efforts and activities. Therefore, for organisational efficiency, it is
important to harmonise individul goals and organisational goals through coordination.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 4.

Find out one characteristic of the concept highlighted in the above case.

(A) Continuous process
(B) Deliberate effort
(C) Pervasive
(D) Responsibility of all managers
Answer:
(B) Deliberate effort

III. Read the following text and answer the below questions:

Radio XYZ is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets. In the previous meeting, it was decided that in coming years, company could show increase in the number of workers, number of products produced and also the sales turnover. However, recently it earned a negative reputation under the impact of resignations put forth by two of its departmental heads. These departmental heads were experts in their fields.

One was leading the marketing department and the other was a scientist of repute who headed the manufacturing department. In the top-level management meeting it was found that such departmental heads who were specialists in their areas cannot be tackled by unity of command. They were egoistic as they were specialists.

After the meeting, things started to change for the organisation as all the departments started to work with one single target of giving back the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action. Thus, the overall functioning of the organization improved.

Question 1.

Identify the feature of management highlighted above:

(A) Management is an intangible force.
(B) Management is multi-dimensional.
(C) Management is a goal-oriented process.
(D) Management is all pervasive.
Answer:
(C) Management is a goal-oriented process.

Question 2.

“…company could show increase in the number of workers, number of products produced and also the sales turnover.” Identify the type of objective being discussed.

(A) Organisational
(B) Personal
(C) Social
(D) None of these
Answer:
(A) Organisational

Explanation:
Management is responsible for setting and achieving objectives for the organisation. It has to achieve a variety of objectives in all areas considering the interest of all stakeholders including, shareholders, employees, customers and the government.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 3.

The concept of management missing in Radio XYZ Company is:

(A) Cooperation
(B) Coordination
(C) Control
(D) Direction
Answer:
(B) Coordination

Explanation:
Coordination is the force that binds all the other functions of management. is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation.

Question 4.”…

as all the departments started to work with one single target of giving back the company its lost fame.” Identify the feature of coordination being discussed above :

(A) Unity of action
(B) Responsibility of all managers
(C) Pervasive
(D) Continuous process
Answer:
(A) Unity of action

IV. Read the following text and answer the below questions:

Das is the Managing Director of ‘Gamut Ltd.’, manufacturing different varieties of cheese. He has an efficient team working under him consisting of Rajat, the Production Manager, Vinay – the Marketing Manager and Adit- the Finance Manager. They understand and interpret the policies made by Das, ensure that their departments have adequate manpower, assign them the necessary duties and motivate them to achieve the desired objectives.

Question 1.

Das is working at which level of management ?

(A) Top level
(B) Middle level
(C) Lower level
(D) Operational level
Answer:
(A) Top level

Explanation:
Top Level of Management consists of board of directors, chief executive or managing director. The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning and coordinating functions.

Question 2.

Identify another function of the level highlighted in the above case.

(A) Oversee the efforts of the workforce
(B) Integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
(C) Cooperate with other departments for smooth functioning of the organization.
(D) None of the above.
Answer:
(B) Integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.

Question 3.
The departmental managers, Rajat, Vinay and Adit are working at which level of management ?

(A) Supervisory level
(B) Middle level
(C) Lower level
(D) Top level
Answer:
(B) Middle level

Explanation:
The branch managers and departmental managers constitute middle level. They are responsible to the top management for the functioning of their department. They devote more time to organizational and directional functions.

MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management

Question 4.

Identify another function of the level highlighted in the above case.

(A) Formulate overall organisational goals and strategies.
(B) Analyse the business environment and its implications for the survival of the firm.
(C) Cooperate with other departments for smooth functioning of the organization.
(D) Maintain quality of output, minimize material wastage and maintain safety standards.
Answer:
(C) Cooperate with other departments for smooth functioning of the organization.

V. Read the following text and answer the below questions:

Best Textiles Ltd. is a big company. Managing many employees at the same moment is a challenge which this company always faces. Since the company has many departments it is necessary for the company to ensure unity of action among various departments. The various departments are human resources, marketing, finance, operations and sales. The top-level managers coordinate with all middle-level managers. The middle-level managers coordinate simultaneously with top as well as lower-level managers.

The lower-level managers coordinate with middle-level managers and the workers. The employees are always concerned about the company and are a useful resource to their organisation. Though they have diverse interests and have to perform different activities, the management ensures that the efforts of the employees should be given a focus so as to achieve the organisational goals.The different departments have their own interests but due to proper coordination, conflict of interest between departments is minimized to zero.

When it comes to the employees, the organisation shows its concern. The career of employees is shown a developmental path through proper training modules and job enrichment. Sanjeev is a manager who takes care of all the duties and responsibilities to be assigned to his employees in the department. He uses all sources to develop a proper communication with them and leaves no attempt to motivate them. This year the company has decided to give the best manager award to Sanjeev for his contribution to the organisation.

Question 1.

Which characteristic of coordination has been highlighted in the above case?

(A) Unity of action
(B) Responsibility of all managers
(C) Integration of group efforts
(D) All of the above
Answer:
(D) All of the above

Question 2.

Which importance of management has been highlighted above ?

(A) Functional differentiation
(B) Growth in size
(C) Specialisation
(D) All of the above
Answer:
(A) Functional differentiation

Explanation:
Functions of an organisation are divided into departments, divisions and sections. In an organisation there may be separate departments of finance, production, I marketing or human resources. The activity of each department needs to be focused on attainment of common organisational goals. ; The process of linking the activities of various departments is accomplished by coordination.

Question 3.

Which type of objective is fulfilled here ?

(A) Personal
(B) Social
(C) Organisational
(D) None of these
Answer:
(A) Personal

Explanation:
Organisations are made up of people who have different personalities, backgrounds, experiences and objectives. Management has to reconcile personal goals with organisational objectives for harmony in the organisation.

Question 4.

At which level of management does Sanjeev work?

(A) Top
(B) Middle
(C) Lower
(D) None of these
Answer:
(B) Middle

MCQ Questions for Class 12 Business Studies with Answers