Business Studies MCQs for Class 12 with Answers Chapter 1 Nature and Significance of Management

Free PDF Download of CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 1 Nature and Significance of Management. Business Studies MCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Business Studies Nature and Significance of Management MCQs Pdf with Answers to know their preparation level.

Nature and Significance of Management Class 12 Business Studies MCQs Pdf

1. Successful organisations do not achieve goals by chance but by following a deliberate process known as
(a) Planning
(b) Co-ordination
(c) Controlling
(d) Management

Answer/Explanation

Answer: d
Explaination:
(d) Management is considered to be a deliberate process as it involves creating an environment which is conducive to efficient and effective performance.


2. Management is essential for the organisations which are
(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

Answer/Explanation

Answer: d
Explaination:
(d) Management is essential for all types of organisations irrespective of their size or type.


3. Management contains a series of interrelated functions that include
(a) Planning
(b) Organising
(c) Directing
(d) All of the above

Answer/Explanation

Answer: d
Explaination:
(d) Management as a process contains a series of functions namely planning, organising, staffing, directing and controlling.


4. People in the organisations carry out diverse tasks with the aim to achieve
(a) Different objectives
(b) Common objectives
(c) Both of the above
(d) None of the above

Answer/Explanation

Answer: b
Explaination:
(b) Management seeks to integrate individual goals with organisational goals and ensure realisation of both.


5. Successful management ensures that
(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
(d) None of the above

Answer/Explanation

Answer: c
Explaination:
(c) Management aims to carry out the work in a manner that is completed within the stipulated time (effectiveness) and at the least cost (efficiency).


6. Efficiency is concerned with
(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above

Answer/Explanation

Answer: b
Explaination:
(b) Efficiency aims at reduction of cost through optimum utilisation of resources and avoiding wastage of resources.


7. Effectiveness relates to
(a) Doing the right task
(b) Completing activities
(c) Achieving goals
(d) All of the above

Answer

Answer: d


8. Rohan works as a production manager in Global Enterprises Limited. He has been given the task of getting 1000 units of hand woven table mats manufactured at the cost of ₹150 per unit within 10 days. In order to be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
(d) All of the above

Answer/Explanation

Answer: b
Explaination:
(b) The concept of effectiveness is related to the completion of the task within the stipulated time irrespective of the cost involved.


9. Jay is working as a marketing manager in a company. Has been given the task of selling 100000 units of a product at the cost of ₹100 per unit within 20 days. He is able to sell all the units within the stipulated time, but had to sell last 1000 units at 20% discount in order to complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
(d) None of the above

Answer

Answer: b


10. Management is said to be poor if it is
(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

Answer

Answer: c


11. Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter. Identify the feature of management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
(d) All of the above

Answer/Explanation

Answer: b
Explaination:
(b) Management is considered to be goal oriented as an organisation is brought into existence for realisation of certain goals.


12. Management is equally important to run a political organisation as it is to run an economic organisation. Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity

Answer/Explanation

Answer: c
Explaination:
(c) Management is required in all types: economic, social or political, and sizes of organisations.


13. Management translates the works to be carried out in terms of goals to be achieved and assigns the means to achieve it. This statement relates to
(a) Management of work
(b) Management of people
(c) Management of operations
(d) All of the above

Answer/Explanation

Answer: a
Explaination:
(a) Management is multidimensional in nature and involves three aspects, management of work is one of them.


14. Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.
(b) Achievement of common goal requires teamwork and co-ordination of efforts in a common direction.
(c) Each member of the organisation may have different individual goals but they must travel together towards common goals.
(d) All of the above

Answer

Answer: d


15. Keeping in view the changes in the consumer demands and preferences ‘Tasitemaker Bakery’ has reduced the sugar and fat content in its products. This approach of business shows that management is
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity

Answer/Explanation

Answer: c
Explaination:
(c) In order to be successful, it is important that a business adapts itself to the changes in the taste and preferences of the consumers.


16. Which of the following is not an organisational objective of management?
(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children

Answer/Explanation

Answer: d
Explaination:
(d) Providing free education to children is a social objective of management.


17. Management is considered important because
(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
(d) All of the above

Answer

Answer: d


18. Management is considered to be an art because
(a) The principles of management have universal validity
(b) The principles of management have universal application
(c) Different principles of management are brought into effect differently by different managers
(d) It is not important for the practising managers to be a member of a professional association.

Answer/Explanation

Answer: c
Explanation:
(c) Management is based on personalised application of the knowledge and skills.


19. Which of the following statements is not relevant to the concept of “Management as an inexact science”?
(a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with utmost accuracy

Answer/Explanation

Answer: b
Explanation:
(b) The principles of management are not universaly valid as they deal with human behaviour and the outcome of application of a principle cannot be predicted with utmost accuracy.


20. The authority-responsibility relationships that exist within the organisation give rise to
(a) Different functions within the organisation
(b) Different levels in the organisation
(c) Management as a multidimensional activity
(d) Management as a group activity

Answer

Answer: b


21. Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager

Answer/Explanation

Answer: d
Explanation:
(d) Production Manager is a designation for middle level management.


22. Which of the following is not a designation related to middle level management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager

Answer/Explanation

Answer: c
Explanation:
(c) Chief Operating Officer is a designation for top level management.


23. Which of the following is not a designation related to lower level management?
(a) Plant Superintendent
(b) Supervisors
(c) Section officers
(d) Marketing Manager

Answer/Explanation

Answer: d
Explanation:
(d) Marketing Manager is a designation related to middle level management.


24. Which of the following is a function of top level management?
(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) Ensuring that the safety standards are maintained within the organisation.

Answer/Explanation

Answer: d
Explanation:
(d) Ensuring quality of output; Ensuring the safety standards are maintained within the organisation – lower level management and assigning necessary duties and responsibilities to their departments – middle level management.


25. Which of the following statements does not pertain to middle level management?
(a) They are responsible for all the activities of the operational managers.
(b) They are responsible for the welfare and survival of the organisation.
(c) The interpreter the policies made by top level managers
(d) Co-operate with other departments for the smooth running of the organisation.

Answer/Explanation

Answer: b
Explanation:
(b) They are responsible for the welfare and survival of the organisation- top level management


26. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.

Answer/Explanation

Answer: a
Explanation:
(a) Analyse the business environment and its implications for the survival of the business-top level management


27. Identify the level of management which does not interact with the work force directly.
(a) Supervisory management
(b) Operational management
(c) First line managers
(d) Middle level management

Answer/Explanation

Answer: d
Explanation:
(d) The middle level managers interact with the supervisory/operational/first-line managers who in turn interact with the workers directly.


28. The main task of this level of management is to determine the overall organisational objectives and strategies for their realisation.
(a) Operational management
(b) Middle level management
(c) First line managers
(d) Top level management

Answer

Answer: d


29. This level of management serves as a link between top level managers and first line managers.
(a) Supervisory level management
(b) Operational management
(c) Middle level management
(d) None of the above

Answer

Answer: c


30. Organising as a function of management involves deciding
(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

Answer

Answer: d


31. The function of management related to grouping of activities to be carried out into departments and creating management hierarchy is
(a) Planning
(b) Organising
(c) Controlling
(d) Directing

Answer

Answer: b


32. This function of management relating to laying down the foundation for carrying out the other functions of management successfully is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer

Answer: c


33. Supervision, communication, motivation and leadership are the key elements of this • function of management.
(a) Directing
(b) Controlling
(c) Planning
(d) Organising

Answer

Answer: a


34. This function of Management related to placing the right person at the right job is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer

Answer: b


35. It is a force that binds all the functions Of management.
(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

Answer

Answer: b


36. Co-ordination is considered to be the essence of management because
(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the above

Answer

Answer: d


37. Identify the process that provides the requisite amount, quality, timing and sequence of efforts, which ensures that planned objectives are achieved with a minimum of conflict.
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling

Answer

Answer: c


38. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is not a one time function, it begins at the planning stage and continue till controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function

Answer

Answer: c


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