1. Define partnership?

A partnership is a form of business where two or more people share ownership, as well as the
responsibility for managing the company and the income or losses the business generates.

2. What is management audit?

Management Audit is a systematic examination of decisions and actions of the management to

analyse the performance.

3. What is line and staff authority?

Staff provides managers with varied types of expert help and advice. Staff authority is based
primarily on expert power. Staff offer line managers planning advice through research, analysis
and options development.

4. Write a note on management by objectives?

Management by Objectives (MBO) is a personnel management technique where managers and

employees work together to set, record and monitor goals for a specific period of time.
Organizational goals and planning flow top-down through the organization and are translated
into personal goals for organizational members.

5. What are the functions of management?

There are four functions of management that span across all industries. They include: planning,
organizing, leading, and controlling.

6. Write a note on Business system?

A business system is a combination of policies, personnel, equipment and computer facilities to

co-ordinate the activities of a business organisation. Business system decides how data must be
handled and is methodically processed. It also controls the procedures of the processed data
and the results to be displayed.

7. What is commerce and industry?

Industry is an economic activity, concerned with the procurement and processing of raw
materials into finished products, that reaches the customer.
 Commerce is a business activity, wherein exchange for goods and services for value, is done on
a large scale.

8. State the characteristics of planning?

 Planning is goal-oriented.
 Planning is looking ahead.
 Planning is an intellectual process.
 Planning involves choice & decision making.
 Planning is the primary function of management / Primacy of Planning.
 Planning is a Continuous Process.
 Planning is all Pervasive.
 Planning is designed for efficiency.

9. Management is an Art-Define
It is called an art because managing requires certain skills which are personal possessions
of managers. Science provides the knowledge & art deals with the application of knowledge
and skills. A manager to be successful in his profession must acquire the knowledge of science
& the art of applying it.

10. Enumerate the differences between public company and private limited company?
A public company, publicly traded company, publicly held company, publicly listed company, or
public limited company is a company whose ownership is organized via shares of stock which
are intended to be freely traded on a stock exchange or in over-the-counter markets.

A privately held company, private company, or close corporation is a business company owned
either by non-governmental organizations or by a relatively small number of shareholders or
company members.

11. State any four principles of management by Henry fayol?

Division of Work: This is the principle of specialization, which is very well expressed by
economists as being a necessary factor for efficiency in the utilization of labor.
 Authority and Responsibility: In this principle, Fayol conceives authority as a combination of
official authority deriving from a manager’s official position and personal authority, which is
compounded of intelligence, experience, moral worth, past services etc.

Unit of Command: This is the principle, which states that on employee should receive orders
from one superior only.

Unity of Direction: According to Fayol, the unity of direction principle implies that each group
of activities having the some objectives must have one head and one plan. As distinguished
from the principle of unity of command, Fayol perceives unity of direction as related to the
functioning of personnel.

12. What is delegation and decentralisation?

When an authority or responsibility is entrusted to the subordinate by a superior is known
as Delegation. Decentralization refers to the final result which is attained when the authority
is delegated to the lowest level, in an organised and consistent manner. Delegation is the
technique of management.

13. What are the different approaches to management?

There are 2 different approaches to management are
 Classical Approach
 Behavioural Approach

14. What are the different types of plan?

There are three major types of planning, which include operational, tactical and
strategic planning.

15. Differentiate between Authority and Responsibility?

Authority refers to the power or right, attached to a particular job or designation, to give
orders, enforce rules, make decisions and exact compliance.

Responsibility denotes duty or obligation to undertake or accomplish a task successfully,

assigned by the senior or established by one's own commitment or circumstances.

16. State the steps involved in planning?

 Develop objectives.
 Develop tasks to meet those objectives.
 Determine resources needed to implement tasks.
 Create a timeline.
 Determine tracking and assessment method.
  Finalize plan.
 Distribute to all involved in the process.

17. What is an organisational structure?

An organizational structure defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims. Organizational
structure affects organizational action and provides the foundation on which standard
operating procedures and routines rest.

18. What is controlling?

It is an important function because it helps to check the errors and to take the corrective
action so that deviation from standards are minimized and stated goals of the organization are
achieved in a desired manner.

19. What are the steps involved in controlling?

 Setting Performance Standards: The first step in the process of controlling is concerned
with setting performance standards.
 Measurement of Actual Performance
 Comparing Actual Performance with Standards
 Analysing Deviations
 Taking Corrective Action

20. Why does controlling takes place in an organisation?

Controlling is the managerial functions of planning, staffing, organizing, implementing and
directing. It helps to check the errors and take the corrective action, so it is known as an
important function of management. It is necessary to ensure that the desired
results are achieved.

21. What is business?

Business is the activity of making one's living or making money by producing or buying and
selling products (such as goods and services). Simply put, it is "any activity or enterprise
entered into for profit. It does not mean it is a company, a corporation, partnership, or have
any such formal organization.

22. Who is a sole proprietor?

A sole proprietorship, also known as the sole trader, individual entrepreneurship or
proprietorship, is a type of enterprise that is owned and run by one person and in which there
is no legal distinction between the owner and the business entity.
23. Mention any four characteristics of controlling?
 Control is a Managerial Process
 Control is forward looking
 Control exists at each level of Organization
 Control is a Continuous Process

24. What are the modern techniques of controlling?

 Return on Investment (ROI)
 Programme Evaluation and Review Technique (PERT)
 Management Information System (MIS)
 Management Audit

25. Write a note on cooperative society?

The cooperative society is active in all countries worldwide and is represented in all the
sectors including agriculture, food, finance, healthcare etc. To protect the interest of weaker
sections, the co-operative society is formed. It is a voluntary association of persons, whose
motive is the welfare of the members.

26. State the features of private limited company?

 Non-transferability of shares.
 Cannot accept deposits.
 Number of directors.
 Limited liability.
 Separate legal entity.

27. What are the types of departmentation?

 Types of Departmentation – By Functions, Product, Regions, Customers, Process, Time,
Numbers and Marketing Channels.
 Types of Departmentation – Functional, Product, Geographical, Customer, Process or
Equipment, Project or Matrix Departmentation, Team Structures and a Few Others.

28. What is centralisation and decentralisation?

Centralisation refers to the hierarchical level within an organisation that has authority to
make decisions. When decision making is kept at the top level, the organisation
is centralised; when it is delegated to lower organisational levels, it is decentralised.
29. What is planning?
Planning is the process of thinking about the activities required to achieve a desired goal. It
is the first and foremost activity to achieve desired results. It involves the creation and
maintenance of a plan, such as psychological aspects that require conceptual skills.

30. Management is a Science-Define

Management science (MS) is the broad interdisciplinary study of problem solving and
decision making in human organizations, with strong links to management, economics,
business, engineering, management consulting, and other fields. ... Management
science helps businesses to achieve goals using various scientific methods.

31. Define management?

Management is a set of principles relating to the functions of planning, organizing,
directing and controlling, and the application of these principles in harnessing physical,
financial, human and informational resources efficiently and effectively to achieve
organizational goals.

32. List the process of Management by Objectives (MBO)?

 Define organizational goals.
 Define employee objectives.
 Continuous monitoring performance and progress.
 Performance evaluation.
 Providing feedback.
 Performance appraisal.