Title - MCQS Questions Bank No. 5: Prof. Suryawanshi Vijaykumar Balasaheb

Prof.
Suryawanshi Vijaykumar Balasaheb

Chandmal Tarachand Bora College, Shirur. Dist: Pune (412210). MH.
Email : vjb.sur@gmail.com
Subject - Principles of Management (101)
Class : FY BBA
Title - MCQS Questions Bank No. 5
1) Code of conduct is an example of -------
(a) Controllable premise
(b) Semi-controllable
(c) Uncontrollable
(d) None of the above.
Ans:- a) Controllable premise

2) A small programme is called ------
(a) Schedule
(b) Project
(c) Budget
(d) None
Ans:- b) Project
3) Guide post of managerial action is ------
(a) Rule
(b) Policy
(c) Programme
(d) Strategy.
Ans:- a) Rule
4) Policies are ------
(a) Short-range plan

(b) Medium –term plan
(c) Long –range plan
(d) All
Ans:- d) All
5) A sequence of activities to implement the policy is ---
(a) Programme
(b) Budget
(c) Plan
(d) Procedure
Ans:- a) Programme
6) Planning is --------------process
(a) directing
(b) thinking
(c) forecasting
(d) none of these
Ans:- b) thinking
7) Lower level management is concerned with the tactical administrative

plans which are -----------
(a) long range plans

(b) short range plans
(c) medium range plans
(d) none of these
Ans:- b) short range plans

8) Policies are flexible where as procedure are --------
(a) specific
(b) detailed
(c) Rigid
(d) All
Ans:- c) Rigid
9) -----------is described as interpretative planning
(a) Procedure
(b) Strategy
(c) Policies
(d) none of the above.
Ans:- b) Strategy
10) --------------indicates the exact manner in which the integrated serious of

activities will have to be performed.
(a) Procedures
(b) Planning
(c) Organising
(d) staffing
Ans:- a) Procedures
11) Organisational decisions are made by ------
(a) Directors
(b) Managers
(c) Managing directors
(d) None of these
Ans:- b) Managers
12) Organisation means a formalised intentional structure of ------
(a) Roles
(b) Rooms
(c) Routes
(d) None
Ans:- a) Roles
13) A proper organisation avoids duplication of ----------
(a) Action
(b) Activities
(c) Assets
(d) None
Ans:- b) Activities
14) Power is the ability to do ----
(a) something
(b) anything
(c) order
(d) none
Ans:- a) something
15) Authority and responsibility should be --------
(a) Equal
(b) Not equal
(c) effective
(d) none
Ans:- a) Equal
16) Authority is the right to give ---------
(a) Powers
(b) Order
(c)Responsibility
(d) None
Ans:- b) Order
17) Responsibility is an obligation to carry out certain ------
(a) Tasks
(b) Talks
(c) Tastes
(d) None
Ans:- a) Tasks
18) Operational authority is to carrying out the ------
(a) Wards
(b) Work
(c) Supervisor
(d) None
Ans:- b) Work
19) Authority flowing from top to bottom is called -----
(a) Formal authority.

(b) Informal authority
(c) Both
(d) None.
Ans:- a) Formal authority.

20) The number of subordinates that a manager can manage is called-----
(a) Delegation
(b) Span of Management
(c) Development
(d) None.
Ans:- b) Span of Management
21) The staff are experts who provide advice to ----
(a) Workers
(b) Line workers
(c) Line officers
(d) None.
Ans:- c) Line officers
22) Functional authority ensures ---

(a) Co-Ordination
(b) Control
(c) Better division of labour
(d) None.
Ans:- c) Better division of labour

23) Aptitude test consists of -----
(a) Attitude test
(b) Intelligent test
(c) Interest test
(d) All
Ans:- d) All
24) Shifting a trainee fromone job to another is known as ---------
(a) Job rotation

(b) Job playing
(c) Programmed learning
(d) None of these.
Ans:- a) Job rotation
25) Performance appraisal serves as a basis for ---------
(a) Training
(b) Promotion
(c) performance
(d) staffing
Ans:- b) Promotion
26) -------- is concerned with developing the employees in the present job.
(a) Man power planning

(b) On-the –job-training
(c) Job Description
(d) None of these.
Ans:- b) On-the –job-training
27) The supervisor motivate the subordinates in -----
(a) Consultative direction
(b) Free rein direction
(c) Autocratic direction
(d) All
Ans:- b) Free rein direction
29) Direction is known as ------
(a) Command
(b) Supervision
(c) Communication
(d) none
Ans:- b) Supervision
30) Direction has the following functions-------
(a) Supervision
(b) Motivation
(c) Communication
(d) All
Ans:- d) All
31) Telling people what to do is ---
(a) Directing
(b) Motivating
(c) Supervision
(d) None
Ans:- a) Directing
32) Effective control depends on ----
(a) Organisation structure
(b) proper direction
(c) Flow of communication
(d) All
Ans:- d) All
33) Control is the function of -----
(a) Top level management
(b) Lower level management
(c) All managers
(d) None
Ans:- c) All managers
34) Effective control depends on ------
(a) Organisation structure
(b) proper direction
(c) Flow of communication
(d) All
Ans:- d)
35) The requirement of Effective control system is ------
(a) Flexible
(b) Objective
(c) Suitable
(d) All
Ans:- d) All
36) CPM emphasis –
(a) Time
(b) Cost
(c) cost as well as time
(d) None
Ans:- c) cost as well as time
37) BEP is a function of ----
(a) sales volume

(b) cost
(c) profit
(d) sales volume, cost and profit
Ans:- d) sales volume, cost and profit
38) The heart of management is ----
(a) planning
(b) organisation
(c) controlling
(d) coordinating
Ans:- d) coordinating
39) The process of MBO starts with -----
(a) setting up of obligation

(b) Fetron plan
(c) Review
(d) All
Ans:- a) setting up of obligation
40) Management is a -----
(a) profession
(b) principles
(c) performance
(d) None
Ans:- a) profession
41) Management is a -----Activity
(a) single
(b) group
(c) both group and single
(d) None
Ans:- b) group
42) Management applies to ----
(a) Business unit

(b) Family
(c) government
(d) All
Ans:- d) All
43) A manager needs three skills such as technical, human and ---
(a) Conceptual
(b) Process
(c) Accuracy
(d) None
Ans:- a) Conceptual
44) Management is a wider concept than administration according to---
(a) Oliver Sheltom

(b) Fayol
(c) Hernold Koontz
(d) William Newman
Ans:- b) Fayol
45) MBO was developed by ----
(a) Peter.F.Drucker
(b) Chester Bernard
(c) Fayol
(d) None
Ans:- a) Peter.F.Drucker
46) MBO offers the basis for assessing the ---
(a) operations
(b) performance
(c)equality
(d) None these
Ans:- b) performance
107-MF Google form MCQ TEST Answer key.
1) The Founder of Scientific Management was

a) Peter Drucker
b) Fredrick Taylor
c) Hendry Fayol
d) Elton Mayo
2) Principles of Managements are not

a) Absolute
b) Universal
c) Flexible
d) Behavioural
3) Efficiency is considered with

a) Doing the right thing
b) Doing things right
c) Achieving end results
d) None of above
4) By Profession FW Taylor was

a) Mechanical Engineer
b) Mining Engineer
c) Psychologist
d) Human Resource officer
5) “Management should find one best way to perform a task” Which technique of scientific
management is defined in the sentence
a) Time Study
b) Motion Study
c) Fatigue Study
d) Method Study
6) Planning provides direction is a

a) Importance of planning
b) Limitation of planning
c) Characteristic of planning
d) Nature of planning
7) They represent the end point of planning
a) Rules
b) Methods
c) Objectives
d) Policies
8) The Plans which deal with fairly small set of activities are called
a) Strategic Plan
b) Tactical plan
c) Operational plan
d) Personal plan
9) MBO offers basis for assessing the …….
a) Techniques
b) Performance
c) Authority
d) Subject
10) Planning provides

a) Information to outsiders
b) Basis for recruitment and selection
c) Purpose and direction of all persons
d) None of these
11) An identified group of people contributing their efforts towards attainment of goals is called
an
a) Organization
b) Business
c) Management
d) Department
12) As the span of management increases in the organization, the number of levels of
management in the organization
a) Increases
b) Decreases
c) Remains unchanged
d) None of the above
13) Identify the type of organizational structure which facilitates occupational specialization
a) Functional structure
b) Horizontal structure
c) Network structure
d) Divisional structure
14) When the “voice of customers” is brought in to the organization, which of the following
organizational structure works best?
a) Virtual teams
b) Cross functional teams
c) Matrix
d) Line and staff
15) Why grievances to be redressed?
a) Collective disputes conversion
b) Affects the management
c) Affects the individual
d) All of above
16) Which of the following is not an element of directing

a) Supervision
b) Communication
c) Leadership
d) Inspection
17) Lateral communication takes place

a) First to second division of the same organization
b) Superior to subordinate
c) Subordinate to superior
d) All of the above
18) Direction is________ function performed by all the managers at all levels of the organization
a) Managerial
b) Organizational
c) Both a) & b)
d) None of the above
19) When authority is delegated as per the organisation structure it is called ____.
A. formal delegation.
B. informal delegation.
C. general delegation.
D. specific delegation.
20) Motivation based of force of fear is called

a) Negative Motivation
b) Positive Motivation
c) Extrinsic Motivation
d) Intrinsic Motivation
21) How many steps are there in controlling process

a) 2
b) 3
c) 4
d) 5
22) The clan control deals with

a) Authority
b) Profit Centers
c) Rules and standards
d) Expectations
23) Limitation(s) of control is (are)

(A) external factors
(B) fixing of responsibility
(C) variation and its causes
(D) All of the above
24) Controlling function brings the management cycle back the to the
a) Organizing function
b) Planning function
c) Directing function
d) None of above
25) Reducing the workers absenteeism in a factory by 20% is an example of
a) Qualitative standard
b) Quantitative standard
c) Deviation
d) None of above
MG8591 PRINCIPLES OF MANAGEMENT
MULTIPLE CHOICE QUESTIONS (MCQ)
UNIT I - V MODEL QUESTIONS
1) A primary benefit of MBO is:

A) Avoid competition
B) Resistance against new entrance
C) Improve employee motivation
D) Increase resources
2) Functional departmentalization groups’ jobs by which of the following?

A) Tasks they perform
B) Territories they serve
C) Products or services they manufacture or produce
D) Type of customer they serve
3) Henri Fayol, a French industrialist, first analyzed what managers do

and divided that work into functions The study of the management
function that defines goals and establishes strategies to achieve them is
called:
A) Planning
B) Organizing
C) Leading
D) Controlling
4) Which one of the following items best reflects the extent to which a
society places a high value on reducing risk and instability?
A) Uncertainty avoidance
B) Power distance
C) Masculinity/femininity
D) Long-term/short-term orientation
5) When a manger made a decision and he is uncertain about the

outcomes His decision is likely to be:
A) Of Poor Quality
B) Unacceptable
C) Successful
D) Risky
6) Forecasting techniques fall into which of the following two categories?

A) Fixed asset and human capital
B) Predictive and confirmatory
C) Quantitative and qualitative
D) Empirical and conceptual
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7) A plan developed to carry out a course of action that is not likely to be
repeated in the future is called:
A) Single-use plan
B) Specific plan
C) Reaction plan
D) Directional plan
8) The organization which has no interaction with its external

environment is called:
A) Open system
B) Closed system
C) Non-interactive system
D) Moderated system
9) Which famous management thinker was related with the development

of “Theory X”?
A) Douglas McGregor
B) Abraham Maslow
C) Frederick Herzberg
D) Chester Barnard
10) The management function that specifies goals to be achieved and

deciding in advance the appropriate actions to achieve those goals is:
A) Leading
B) Controlling
C) Organizing
D) Planning
11) Supervisor is another name for whom?

A. team leaders
B. middle managers
C. first-line managers
D. top managers
12) Which of the following is true concerning technical and managerial

skills?
A. Human skills and technical skills remain equally important as
managers move to higher levels.
B. Technical-skill needs remain necessary and human skills decrease as
C. Human skills remain necessary and technical-skill needs decrease as
D. Both human-skill and technical-skill needs decrease as managers
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move to higher levels.
13) Which of the following views of managerial impact is useful in

explaining the high turnover among college and professional sports
coaches who can be considered the “managers” of their teams?
A. symbolic
B. omnipotent
C. generalist
D. autocratic
14) Managers operate within the constraints imposed

by__________________.
A. government at the federal and state level
B. the employees of the organization
C. the organization’s culture and environment
D. the organization’s board of directors
15) Which of the following is not an example of a constituency that

makes up the specific environment?
a) customers
b) sociocultural factors
c) suppliers
d) competitors
16) Employees in organizations with strong cultures _______________.

A. are more committed to their organization
B. are more likely to leave the organization than stay
C. are more willing to perform illegal activities
D. are more likely to follow directives from peers
17) When Japanese employees use words such as: KAIZEN and RINGI,
they are using organizational __________.
A. languages
B. rituals
C. symbols
D. artifacts
18) According to the textbook, _______________ refers to the number of

components in an organization’s environment and the extent of the
knowledge that the organization has about those components.
A. degree of stability
B. openness
C. degree of complexity
D. change
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19) A manager resolving conflict among organizational members is
performing what function?
A. controlling
B. commanding
C. directing
D. leading
20) According to Mintzberg’s management roles, the _____________ roles

are those that involve people and other duties that are ceremonial and
symbolic in nature.
A. informational
B. interpersonal
C. technical
D. decisional
21) Hawthorne studies were a series of early experiments that focused

on:
A) Behavior in the workplace
B) Ethics in the workplace
C) Group norms
D) Interpersonal dynamics
22) Selecting an alternative in the decision-making process is

accomplished by option:
A) Choosing the alternative with the highest score
B) Choosing the One You Like Best
C) Selecting the alternative that has the lowest price
D) Selecting the alternative that is the most reliable
23) A plan developed to carry out a course of action that is not likely to
be repeated in the future is called:
A) Single-use plan
B) Specific plan
C) Reaction plan
D) Direction plan
24) Concern for employee motivation is most closely associated with

which of the following management approach?
A) Bureaucracy
B) Organizational behavior (NOT SURE)
C) Scientific management
D) Systems
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25) Interest rates, inflation rates, and stock market indexes are all
examples of which of the factor of an organization’s general
environment?
A) Economic
B) Political
C) Social
D) Technological
26) Which factor has been the most rapidly changing component in an
organization’s general environment in the past quarter-century?
A) Global
B) Economic
C) Social
D) Technological
27) The process of monitoring performance, comparing it with goals and

correcting any significant deviations is known as:
A) Planning
B) Organizing
C) Leading
D) Controlling
28) When Usman decides to deploy employees to another department

that is lagging behind in production, he is acting in which of the following
roles?
A) Spokesperson
B) Negotiator
C) Leader
D) Resource allocator
29) The greater the risk involves in making a decision, the greater the:
A) Outcomes
B) Information available
C) Rewards
D) Uncertainty
30) Each subordinate should report to one and only one superior is
called:
A) Authority
B) Unity of command
C) Unity of direction
D) Order
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31) Which of the following is part of the principles of management
identified by Henri Fayol?
A) Scalar chain
B) Innovation
C) Efficiency
D) Motivation
32) A learning organization has developed its________

A) Educational department to keep employees trained
B) Capacity to adapt and change
C) Barriers to entry of its markets
D) A sustainable competitive advantage that is easy to maintain
33) Which of the following is not a suggestion for motivating employees?

A) Recognize individual differences
B) Makes goals very difficult to achieve
C) Match people to jobs
D) Individualize rewards
34) In Maslow’s need hierarchy, a healthy work environment is an

example of what type of need?
A) Physiological
B) Steem
C) Safety
D) Social
35) The plans which deal with fairly small set of activities are called:
A) Strategic plan
B) Tactical plan
C) Operational plan
D) Personal plan
36) Which of the following is known as the process of getting activities

completed efficiently and effectively with and through other people?
A) Leading
B) Management
C) Supervision
D) Controlling
37) Which of the following describe(s) a global marketplace?

A) The entire world is a marketplace
B) National borders are irrelevant
C) The potential for organizations to grow expands dramatically
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D) All of the given options
38) The assignment of new or additional responsibilities to a subordinate

is called:
A) Coordination
B) Specialization
C) Delegation
D) Span of control
39) Which of the following management thinker created a role

classification system based on how managers spend their time at work
to describe a manager’s role?
A) Peter Brabeck-Letmathe
B) Abraham Maslow
C) Andrea Jung
D) Henry Mintzberg
40) Which expectancy theory linkage explains the degree to which a

student desires a good job?
A) Expectancy
B) Effort to performance
C) Input to outcome
D) Valence
41) The assignment of new or additional responsibilities to a subordinate

is called:
A) Coordination
B) Specialization
C) Delegation
D) Span of control
42) Which ethical approach is guided by what will result in the greatest
good for the greatest number of people?
A) Moral-Rights approach
B) Individual approach
C) Utilitarian approach
D) Justice approach
43) Low level management has a complete authority to make decisions

in case of:
A) Centralization
B) Decentralization
C) Scalar Chain
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D) Order
44) Which one of the following individuals is most closely associated with
scientific management?
A) Frederick Taylor
B) Mary Parker Follett
C) Harold Koontz
D) Max Weber
45) Each subordinate should report to one and only one superior is
called:
A) Authority
B) Unity of command
C) Unity of direction
D) Order
46) There are many healthcare products manufacturers XYZ Company

manufactures only personal hygiene products It markets such products
deodorant, body powder, body creams, and exfoliates Because it only
stocks body care and personal hygiene products, it is using ___ strategy :
A) Prospecting
B) Emergent
C) Focus
D) Cost leadership
47) When managers give goals to employees, they must always: :

A) Use employee-recognition as a reward
B) Provide feedback to the employees
C) Let the employees participate in setting the goals
D) All of the given options
48) The organization that has developed the capacity to continuously

learn, adapt, and change is called:
A) Virtual organization
B) Learning organization
C) Traditional organization
D) Bureaucratic organization
49) Your firm’s attorney has which of the following power when giving
legal advice?
A) Legitimate
B) Status
C) Expert
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D) Coercive
50) Which of the following is a function of how much decision-making

authority is pushed down to lower levels in the organization?
A) Departmentalization
B) Centralization
C) Span of control
D) Power
51) Organizations that are highly flexible and adaptive are described as
which of the following?
A) Organic
B) Mechanistic
C) Rational
D) Intuitive
52) A human resource manager attending a local Society for Human

Resource Management meeting would be functioning in which of the
following role?
A) Informational
B) Leader
C) Liaison
D) Disseminator
53) Which type of environment is best suited for mechanistic

organizations?
A) Dynamic
B) Manufacturing
C) Service
D) Stable
54) The most outspoken advocate of the classical view of social

responsibility is economist and Nobel prize winner:
A) Carnegie Milton
B) Charles Darwin
C) Milton Freeman
D) Milton Friedman
55) In traditional goal setting, the goals are set at the top level of
management and after that they:
A) Become the responsibility of first-line management
B) Are broken down into sub goals for each level of the organization
C) All the efforts to achieve the goals are directed by top management
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D) Are delegated to the next lower level to be achieved
56) Which of the management tasks is the most important for a

supervisory manager?
A) Planning
B) Organizing
C) Controlling
D) Staffing
57) A budget is an example of which of the following plan?

A) Strategic plan
B) Single use plan
C) Informal plan
D) Standing plan
58) Which of the following is the final step in the decision-making

process?
A) Identifying the problem
B) Evaluating the decision’s effectiveness
C) Identifying decision criteria
D) Selecting an alternative that can resolve the problem
59) The behavioral dimension of leadership involving the concern that

the leader has for the feelings, needs, personal interest, problems, and
well-being of followers is referred to as which of the following?
A) Consideration
B) Initiating structure
C) Autocratic
D) Democratic
60) What type of an organization actively creates, acquires, and

transfers knowledge within itself and is able to modify its behavior to
reflect new knowledge?
A) Enlightened organization
B) Conceptualized organization
C) Learning organization
D) Modern organization
61) Monitoring organizational progress towards goal attainment is called:

A) Planning
B) Organizing
C) Leading
D) Controlling
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62) Organizational culture is similar to an individual’s:
A) Skills
B) Personality
C) Motivation
D) Ability
63) Which of the following is NOT an example of an organization’s

general environment?
A. Economic conditions
B. Political conditions
C. Social conditions
64) Who presented the Concept of Quality?

A. Henri Fayol
B. ProfHenryMintzberg
C. Frank & Lillian Gilbreth
D. ProfEdward Deming
65) In order to communicate, motivate and delegate a manager must

have:
A. Political skills
B. Conceptual skills
C. Technical skills
D. Interpersonal skills
66) Which of the following is called output of a system?

A. Services
B. Material
C. Human
D. Information resource
67) Who is credited for the theory of motivation based on the hierarchy
of needs?
A. Abraham Maslow
B. Douglas McGregor
C. Henri Fayol
D. Mary Parker Follett
68) Which of the following is NOT an example of a constituency that

makes up the specific environment?
A. Customers
B. Socio-cultural
C. Suppliers
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D. Competitors
69) The SWOT approach assesses an organization’s:

A. Speed, Wants, Order, Timing
B. Studies, Workflows, Opportunities, Trials
C. Strengths, Weaknesses, Opportunities, Threats
D. Signs, Worries, Objectives, Techniques
70) An office supply firm that has three departments based upon retail,
wholesale, and governmental customers is using which of the following
types of departmentalization?
A. Functional
B. Product
C. Customer
D. Geographic
71) To determine the ___________, a manager must determine what is

relevant or important in resolving the problem
A. Geocentric behavior needed
B. Number of allowable alternatives
C. Weighting of decision criteria
D. Decision criteria
72) A manager who strives to ensure the activities of the organization’s

employees are supported and blend well with those of individuals outside
the firm could be said to hold which of the following interpersonal role
within the company?
A. Liaison
B. Disseminator
C. Figure head
D. Entrepreneur
73) What would be the best description of plans that focus on the broad
future of the organization and incorporate both external environmental
demands and internal resources into managers’ actions?
A. Operational plans
B. Tactical plans
C. Strategic plans
D. Holistic plans
74) Which of the following scientist is most closely associated with the
Hawthornestudies?
A. Adams
B. Mayo
Page 12 of 21
C. Lawler
D. Barnard
75) When objectives are not written down or rarely verbalized, and the
planning is general and lacks continuity, which of the following types of
planning is used?
A. Environmental planning
B. Economic planning
C. Informal planning
D. Formal planning
76) Which of the following is the power that rests on the leader’s ability
to punish or control?
A. Reward power
B. Coercive power
C. Expert power
D. Referent power
77) Inspiring people to be high performer is called:

A. Controlling
B. Leading
C. Planning
D. Organizing
78) Which of the following theory is currently the most widely accepted
when describing employee motivation?
A. Reinforcement
B. Three-need
C. Expectancy
D. Equity
79) Activities such as taking visitors to dinner and attending ribbon

cutting ceremonies come under which of the following management
role?
A. Leader
B. Liaison
C. Figurehead
D. Negotiator
80) LG and Sony electronics agreed to cooperate on developing new

technologies Representatives from each firm meet regularly to
coordinate this new venture Which of the following roles these mangers
are playing?
A. Liaison
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B. Leader
C. Disseminator
D. Spokesperson
81) A skill or capability that enables an organization to conceive of and

implement its strategies is its:
A. Strength
B. Weakness
C. Opportunity
D. Threat
82) The task environment of organizations consists of constituencies that

have a direct impact on managers’ decisions and actions The main
constituencies are made up of customers, suppliers, competitors, and
________
A. Legislators
B. Pressure groups
C. Employees
D. Lawyers
83) Set of processes involved in creating or determining the strategies of

the organization is called:
A. Strategy formulation
B. Strategy implementation
C. Strategy evaluation
D. Strategy imitation
84) What type of an organization actively creates, acquires, and

transfers knowledge within itself and is able to modify its behavior to
reflect new knowledge?
A. Enlightened organization
B. Conceptualized organization
C. Learning organization
D. Modern organization
85) Which of the following is a general statement or understanding that

guide or channelize thinking in decision making?
A. Policy
B. Procedure
C. Rule
D. Project
86) Which of the following is a process that involves managers from all
parts of the organization in the formulation of strategic goals?
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A. Strategic management
B. Strategic positioning
C. Strategic planning
D. Strategic organizing
87) Maslow’s need hierarchy, a healthy work environment is an example

of what type of need?
A. Physiological
B. Esteem
C. Safety
D. Social
88) That would be the best description of plans that focus on the broad
future of the organization and incorporate both external environmental
demands and internal resources into managers’ actions?
A. Operational plans
B. Tactical plans
C. Strategic plans
D. Holistic plans
89) Which of the following is NOT a key element of the Total Quality
Management approach?
A. Focus on the customer
B. Employee involvement
C. Continuous improvement
D. Focus on the supplier
90) When call center managers spend much of their time monitoring
customer calls and giving employees feedback about how to improve
their dialogue with customers in the future, these managers are using
which of the following skills?
A. Technical
B. Conceptual
C. Situational
D. Ethical
91) The process of selecting decision criteria is accomplished by:

A. Massaging the data that will support a given decision
B. Flipping a coin to produce a – chance of being right
C. Determining what is relevant in making the decision
D. Examining the difference in the opportunities available
92) Alternatives that an organization chooses from its operations across

several industries and several markets is called:
Page 15 of 21
A. Business-level strategy
B. Corporate-level strategy
C. Functional-level strategy
D. Market-level strategy
93) In the MBO system:

A. Objectives are determined by management
B. Goals are only reviewed at the time of completion
C. Goals are used as controls
D. Progress is periodically reviewed
94) Strategic plans cover a broader view of the organization and include
the formulation of goals, whereas operational plans define ways to:
A. Maximize the organization’s profits
B. Achieve the goals
C. Minimize the number of employees
D. Provide the most efficient methods of production
95) The first step in the decision-making process is which of the

following?
A. Developing decision criteria
B. Allocating weights to the criteria
C. Analyzing alternatives
D. Identifying a problem
96) A skill or capability that enables an organization to conceive of and

implement its strategies is its:
A. Strength
B. Weakness
C. Opportunity
D. Threat
97) The management function that specifies goals to be achieved and

deciding in advance the appropriate actions to achieve those goals is:
A. Leading
B. Controlling
C. Organizing
D. Planning
98) The plans which deal with fairly small set of activities are called:
A. Strategic plan
B. Tactical plan
C. Operational plan
Page 16 of 21
D. Personal plan
99) A budget is an example of which of the following plan?

A. Strategic plan
B. Single use plan
C. Informal plan
D. Standing plan
100) Which of the following can be defined as the art and science of
formulating, implementing and evaluating cross-functional decisions that
enable an organization to achieve its objectives?
A. Strategy formulation
B. Strategy evaluation
C. Strategy implementation
D. Strategic management
101) Which of the following is NOT one of the situational factors thought
to influence the relationship between leader behavior and subordinate
motivation to perform in the path-goal theory?
A. Preferences of the leader
B. Subordinate locus of control
C. Characteristics of the work group
D. Task structure
102) Social obligation is the obligation of a business to meet its:

A. Social and technological responsibilities
B. Economic and social responsibilities
C. Technological and economic responsibilities
D. Economic and legal responsibilities
103) All of the following are the examples of the actions that can be
taken in strategy implementation stage EXCEPT:
A. Changing organization’s pricing strategy
B. Developing new employee benefits
C. Transferring managers among divisions
D. Taking corrective action when needed
104) The method by which strategies are operational zed or executed

within the organization is called:
A. Strategy implementation
B. Strategy evaluation
C. Strategy formulation
D. Strategy imitation
Page 17 of 21
105) The idea that employees should also share the profit of organization
was given by:
A. Frederick Taylor
B. Robert Owen
C. Charles Babbage
D. W Edwards Deming
106) In some countries, such as Venezuela, titles, rank, and status carry
a lot of weight These countries have a large:
A. Power distance
B. Uncertainty avoidance
C. Short- versus long-term orientation
D. Individualism versus collectivism
107) Which of the following is associated with the classical view of social
responsibility?
A. Economist Robert Reich
B. Concern for social welfare
C. Stockholder financial return
D. Voluntary activities
108) Which of the following management thinker created a role

classification system based on how managers spend their time at work
to describe a manager’s role?
A. Peter Brabeck-Letmathe
B. Abraham Maslow
C. Andrea Jung
D. Henry Mintzberg
109) Which of the management tasks is the most important for a

supervisory manager?
A. Planning
B. Organizing
C. Controlling
D. Staffing
110) Forecasting techniques fall into which of the following two

categories?
A. Fixed asset and human capital
B. Predictive and confirmatory
C. Quantitative and qualitative
D. Empirical and conceptual
Page 18 of 21
111) If all criteria in the decision making are equal, weighting the criteria
______________.
A. improves decision making when large numbers of criteria are involved
B. is not needed
C. produces excellent decisions
D. improves the criteria
112) Decision making is (simplistically) typically described as which of

the following?
A. deciding what is correct
B. putting preferences on paper
C. choosing among alternatives
D. processing information to completion
113) In Step 6 of the decision-making process, each alternative is

evaluated by appraising it against the _____________.
A. subjective goals of the decision maker
B. criteria
C. assessed values
D. implementation strategy
114) According to the textbook, because managers can’t possibly

analyze all information on all alternatives, managers ______________,
rather than ______________.
A. maximize; satisfice
B. maximize; minimize
C. satisfice; minimize
D. satisfice; maximize
Answer Keys
An
Q Q Q Q Q
sw A A A A
No No No No No
er
1 C 26 D 51 C 76 C 101 D
2 A 27 D 52 C 77 B 102 D
3 A 28 D 53 A 78 B 103 A
4 A 29 C 54 C 79 B 104 A
Page 19 of 21
5 D 30 B 55 B 80 A 105 C
6 C 31 A 56 C 81 A 106 A
7 A 32 B 57 B 82 A 107 A
8 B 33 B 58 B 83 A 108 D
9 A 34 C 59 D 84 C 109 C
10 D 35 C 60 C 85 A 110 C
11 C 36 B 61 D 86 A 111 B
12 C 37 D 62 B 87 C 112 C
13 B 38 C 63 C 88 C 113 B
14 C 39 D 64 D 89 D 114 D
15 B 40 A 65 D 90 A
16 A 41 C 66 B 91 B
17 A 42 D 67 A 92 D
18 C 43 B 68 B 93 A
19 D 44 A 69 C 94 B
20 B 45 B 70 A 95 D
21 A 46 C 71 D 96 A
22 A 47 D 72 C 97 D
23 B 48 B 73 C 98 D
24 B 49 C 74 B 99 B
Page 20 of 21
25 A 50 A 75 C 100 D
Page 21 of 21
DNYANSAGAR INSTITUTE OF MANAGEMENT AND RESEARCH
MBA I SEM I
MCQ: 107 – Management Fundamental
Sr. Question Answe

No. r
1 The steps in ……………must include, among other things, the establishment A
of objectives, the course of actions to take and the follow-up of those
actions if the business wants success.
(A) Planning
(B) Organizing
(C) Staffing
(D) Producing
2 ………….is a network of cooperation made possible by, ICT, i.e. Information D
and Communication Technology, which is flexible and comes to meet the
dynamics of the market.
(A) Learning Organization
(B) Organization
(C) Boundary less Organization
(D) Virtual Organization
3 Departments in decentralization are often broken down by broad categories B
which is not among them
(A) Functional
(B) Cost
(C) Product
(D) Geographical
4 .......................is what the organizational chart typically illustrates. B
(A) Span of control
(B) Interest area
(C) The chain of command
(D) Department
5 Tasks are subdivided into individual jobs and Employees perform only the A
tasks relevant in to their specialized function comes under ...............
(A) Work Specialization
(B) Work planning
(C) Work functions
(D) Departmental
6 The duty to perform the task or activity an employee has been assigned and C
Managers are assigned authority Commensurate with .......................
(A) Functions
(B) Rules
(C) Responsibility
(D) Department
Prof. Nilambari Moholkar www.dimr.edu.in

7 Process managers use to transfer authority and responsibility on organizations C

encourage managers to delegate authority to lowest possible level know
as.........
(A) Structure
(B) Resealing
(C) Delegation
(D) Responsibility
8 An organizational structure Results in a complex network of superior- D
subordinate reporting relationships and the structure is very flexible and
can respond rapidly to the need for change is very well known
as.................
(A) Global geographic structure
(B) Departments structure
(C) Divisional structure
(D) Matrix structure
9 The structure of a large organization that has many divisions and D
simultaneously uses many different organizational structures
(A) Departments structure
(B) Divisional structure
(C) Matrix structure
(D) Hybrid Structure
10 Top managers should always construct a hierarchy with the fewest levels of C
authority necessary to efficiently and effectively use organizational
resources comes under............................................
(A) Accountability
(B) Responsibility
(C) Minimum Chain of Command
(D) Structure
11 Interpersonal Category does not include. B
(A) Liaison
(B) Toys
(C) Figurehead
(D) Leader
12 Informational Category does not include. D
(A) Disseminator
(B) Spokesperson
(C) Monitor
(D) System
13 Decisional Category does not include. B
(A) Disturbance Handler
(B) Process
(C) Resource Allocator
(D) Entrepreneur

14 …………….have universal application in every kind of enterprise and at every B

level of the enterprise.
(A) Management fund
(B) Management fundamentals
(C) Mutual Fund
(D) Maturity Date
15 Practical lessons from scientific management say which of the belonging. C
(A) Carefully design jobs with inefficient work methods
(B) Carefully select workers with the no abilities to do these jobs
(C) Train workers to perform jobs to the best of their abilities
(D) Train supervisors does not support workers so they can perform jobs to
the best of their abilities
16 Administrative principles does not includes ………….. D
(A) Foresight
(B) Organization
(C) Command
(D) Force
17 Which of the below is correct option for Characteristics of bureaucratic C
organizations
(A) Physiological
(B) Safety
(C) Formal rules and procedures
(D) Social
18 Which of the below is Foundations in the behavioral or human resource A
approaches to management
(A) Theory X and Theory Y
(B) Classical
(C) Scientific
(D) Administrative
19 Which of the below is Classical or human resource approaches to management C
(A) Maslow’s Need Theory
(B) Theory X And Theory Y
(C) Administrative
(D) Hawthorne Studies
20 Which of the below is Quantitative Approaches to management. D
(A) Theory X and Theory Y
(B) Classical
(C) Scientific
(D) Operation Management
21………………..to Management provides a framework of management practices A
based on more recent trends, such as globalization, theory Z concepts,
McKinsey’s 7-S approach, excellence models, productivity and quality issues.
(A) Contemporary Approaches
(B) Classical Approach
(C) Behavioral Approach
(D) Quantitative Approach

22Hg Which of the following is a Theory X assumes that workers are:- C

(A) Willing to work
(B) Capable of self control
(C) Lack ambition
(D) Willing to accept responsibility
23 Which of the following is a Theory Y assumes that workers are:- D

(A) Are irresponsible
(B) Resist change
(C) Prefer to be led
(D) Willing to accept Responsibility
24 The ………….school emerged to treat the problems associated with global C

warfare.
(A) Management Information System
(B) Operation Management
(C) Management Science
(D) Perfect Competition
25 ……………is a narrow branch of the quantitative approach to management. It B

focuses on managing the process of transforming materials, labor, and capital
into useful goods and/or services.
(A) Management Information System
(B) Operation Management
(C) Management Science
(D) Perfect Competition
26 ……………has contributed directly to management decision making in the A
areas of planning and control.
(A) Quantitative Approach
(B) Science Management
(C) Management Information System
(D) Bureaucratic
27 A ……….which says that organizations are different, face different situations C
and require different ways of managing.
(A) Quantitative Approach
(B) Science Management
(C) Management Approach
(D) Management Information System
28 There a relationship between employee job performance and …………….. B

(A) Employees satisfaction
(B) Customer satisfaction
(C) Labour Job
(D) Skilled Employees

29 ……………Means doing things differently, exploring new territory, and taking A

risks, innovative effort can be found in all types of organizations.
(A) Innovation
(B) Growth
(C) Development
(D) Design
30 “Acting in their managerial capacity, president, college deans, bishops, B
and………………., all do the same things.”
(A) Head of secret agencies
(B) Head of government agencies
(C) Help of government agencies
(D) Head of great agencies
31 ………………….is a process of agreeing upon objectives within an B
organization so that management and employees agree to the objectives and
understand what they are in the organization.
(A) Material by Objectives
(B) Management by Objectives
(C) Management by Order
(D) Mix by Objectives
32 Which of the following is not a benefit of planning? B
(A) Planning reduces overlapping and wasteful activities.
(B) Planning is a mental exercise.
(C) Planning provides directions.
(D) Planning reduces the risks of uncertainty.
33 Which of the following statements is not true with reference to planning? B
(A) Planning is a pre-requisite for controlling.
(B) Planning does not lead to rigidity.
(C) Planning enables a manager to look ahead and anticipate changes.
(D) Planning facilitates co-ordination among departments and individuals in the
organisation.
34 What is known as the primary function of management? C
(A) Controlling
(B) Organising
(C) Planning
(D) Staffing
35 All other managerial functions are performed within the framework of the D
plans drawn. Identify the related feature of planning.
(A) Planning focuses on achieving objectives.
(B) Planning is pervasive.
(C) Planning is futuristic.
(D) Planning is primary function of management.

36 Customer Departmentalization includes which of the below work . A

(A) Customers’ needs and problems can be met by specialists
(B) Allows specialization in particular products and services
(C) Managers can become experts in their industry
(D) Closer to customers
37 Product Departmentalization includes which of the below:- C
(A) Simple of functions
(B) Unlimited view of organizational goals
(C) Managers can become experts in their industry
(D) Customers’ needs and problems can be met by specialists
38 ………………A desired future state that the organization attempts to realize B

(A) Mission
(B) Goal
(C) Vision
(D) Structure
39 Broadly states the basic business scope and operations that distinguishes it A
from similar types of organizations………………..
(A) Mission
(B) Goal
(C) Vision
(D) Structure
40 “Accomplishing tasks through small groups of people who are collectively B

responsible and whose job requires coordination “relates to which of the
below skill.
(A) Strategic Action Competency
(B) Team work competency
(C) Multicultural(Global) Competency
(D) Self-Management Competency
41 “Understanding, appreciating and responding to diverse political, cultural, C

ethnic, and economic issues across and within nations”. relates to which of
the below skill.
(C) Multicultural(Global) Competency
42 “Deciding what tasks need to be done, determining how they can be done, C
allocating resources to enable them to be done, and then monitoring progress
to ensure that they are done.” relates to which of the below skill.
(C) Planning & administrative Competency

43 “Understanding the overall mission and values of the organization and A

ensuring that employees’ actions match with them – includes Understanding
industry, understanding Co ,taking strategic actions.” relates to which of the
below skill.
44 “Developing yourself and taking responsibility, Integrity and ethical conduct, D
Personal drive and resilience”. are the skills belongs to…………..
45 Ability to effectively transfer and exchange information that leads to B
understanding between yourself and others
(B) Communication competency
46 “Directly responsible for production of goods or services and Spend little time B
with top managers in large organizations.” are the responsibility of which
manager?
(A) Top manager
(B) First Line manager
(C) Middle line manager
(D) Lower line manager
47 “Develop goals and strategies for entire organization and Spend most of their A
time planning and leading , Communicate with key stakeholders—
stockholders” are the responsibility of which manager ?
(A) Top manager
48 Three Approaches to Defining What Managers Do does not include. C
(A) Functions they perform.
(B) Roles they play.
(C) Unlawful
(D) Skills they need.

49 Responsible for setting objectives that are consistent with top management’s C
goals and translating them into specific goals and plans for first-line
managers to implement, Responsible for coordinating activities of first-line
managers.
(A) Top manager
50 ………..refers to the degree to which jobs within the organization are B
standardized and the extent to which employee behaviour is guided by rules
and procedures.
(A) Chain of Command
(B) Formalization
(C) Centralization
(D) Decentralization
51 ……………… describes the degree to which decision making is concentrated C

at a single point in the organization.
(B) Formalization
(C) Centralization
52 The more that lower-level employees provide input or actually make decisions, D
the more ………………there is.
(B) Formalization
(C) Centralization
53 ………are more expensive because of the number of managers involved. A
communication problems because of the number of people through whom
information must pass.
(A) Tall organization
(B) Flat organization
(C) Structure organization
(D) Organic structure
54 Lead to higher levels of employee morale and productivity. Create more B
administrative responsibility for the relatively few managers.
(A) Tall organization
(B) Flat organization
55 An organizational arrangement based on multiple businesses in related areas A
operating within a larger organizational framework; following a strategy of
related diversification. Activities are decentralized down to the divisional
level; others are centralized at the corporate level.
(A) Multidivisional Design

(B) Geographic Structure

56 Enhances organizational flexibility. Team members have the opportunity to B

learn new skills.
(A) Multidivisional Design
(B) Matrix Structure
57 Right to take decisions that arises due to position in organizational structure. B
Authority is the right to perform or command. It allows its holder to act in
certain designated ways and to directly influence the actions of others
through orders.
(A) Responsibility
(B) Authority
(C) Rules
(D) Delegation
58 Assigning work to subordinates and giving them necessary authority to do the D
assigned work effectively.
(A) Responsibility
(B) Authority
(C) Rules
(D) Delegation
59 Do not give Sound Advice Steal Credit for Success Fail to Keep line B
personnel informed of their activities.
(A) Assume line Authority
(B) Delegation Of Authority
(C) Ask line Authority
(D) Assume line Attention
60 ……………Organizations Another approach to contemporary organizational A
design is the It is an organization whose design is not determined by a
predefined structure. Instead the organization seeks to eliminate
(A) Boundary less Organizations
(B) Virtual Organizations
(C) Tele-working
(D) Global Organizations
61 Assisting in recruiting efforts. Enhancing worker morale. Managing employee B
attendance and reducing absenteeism ……………
(B) flexi –work Organizations
(C) Tele-working

62 The recent proliferation of "……….." has been fueled more by economic C

necessity than strategic planning.
(B) flexi –work Organizations
(C) Tele-working
63 Which of the following terms is associated with nonprogrammer decisions? A
(A) Unique
(B) Recurring
(C) Routine
(D) Repetitive
64 Lower-level managers typically confront what type of decision making? C
(A) Unique
(B) Nonroutine
(C) Programmed
(D) Nonprogrammed
65 When problems are ______________, managers must rely on C
______________ in order to develop unique solutions.
(A) Well structured; nonprogrammed decision making
(B) Well structured; pure intuition
(C) Poorly structured; nonprogrammed decision making
(D) Poorly structured; programmed decision making
66 Nonprogrammed decisions are best described as ________________. D
(A) Recurring, but difficult to make
(B) Very similar to problems in other areas of the organization
(C) Requiring more aggressive action on the decision maker’s thought
processes
(D) Unique and nonrecurring
67 Poorly structured problems _____________. D
(A) Are easily solved
(B) Present new or unusual circumstances
(C) Force managers to deal with incomplete or ambiguous information
(D) b and c
68 A business school’s statement that it “strives for productive relationships with B
local organizations” is an example of a ________________.
(A) Rule
(B) Policy
(C) Procedure
(D) Commitment
69 Which of the following factors contrasts the difference between a policy and a A
rule?
(A) A policy establishes parameters
(B) A rule establishes parameters
(C) A policy is more explicit
(D) A rule is more ambiguous
70 A policy ____________. A

(A) Typically Contains An Ambiguous Term

(B) Is Used Frequently When A Manager Faces A Well-Structured Problem
(C) Allows Little Discretion On The Part Of The Manager
(D) Offers Strict Rules As To How A Problem Should Be Solved
71 A ______________ is an explicit statement that tells a manager what he or she C
can or cannot do.
(A) Procedure
(B) Policy
(C) Rule
(D) Solution
72 Programmed decision making tends to rely on which of the following? C
(A) The Problem Solver’s Ability To Think On His Or Her Feet
(B) The Development Of A Clear Set Of Alternative Solutions
(C) Previous Solutions
(D) Identification Of The Actual Problem
73 ______________ decision making is relatively simple and tends to rely heavily D
on previous solutions.
(A) Nonprogrammed
(B) Linear
(C) Satisfying
(D) Programmed
74 The most efficient way to handle structured problems is through D
______________ decision making.
(A) Linear
(B) Unique
(C) Focused
(D) Programmed
75 According to the textbook, all of the following are aspects of intuition except D
__________________.
(A) Experienced-Based Decisions
(B) Affect-Initiated Decisions
(C) Cognitive-Based Decisions
(D) Programmed Decisions
76 In studying intuitive decision making, researcher have found that B
__________________.
(A) Managers Do Not Make Decisions Based On Feelings Or Emotions
(B) Managers Use Data From Their Subconscious Mind To Help Make
Their Decisions
(C) Rational Thinking Always Works Better Than Intuitive
(D) Accumulated Experience Does Not Support Intuitive Decisions
77 Managerial decisions are strongly influenced by ________________. D
(A) The Organization’s Culture
(B) Internal Politics
(C) Power Considerations
(D) All Of The Above

78 When a decision maker chooses an alternative under perfect rationality, she C

chooses a ______________ decision, whereas under bounded rationality she
chooses a ______________ decision.
(A) Minimizing; Satisfying
(B) Satisfying; Maximizing
(C) Maximizing; Satisfying
(D) Maximizing; Minimizing
79 Which of the following is important to remember in evaluating the B
effectiveness of the decision-making process?
(A) Ignore Criticism Concerning The Decision-Making Process
(B) You May Have To Start The Whole Decision Process Over
(C) Restart The Decision-Making Process If The Decision Is Less Than 50
Percent Effective.
(D) Ninety Percent Of Problems With Decision Making Occur In The
Implementation Step.
80 Which of the following is the final step in the decision-making process? B
(A) Identifying The Problem
(B) Evaluating The Decision’s Effectiveness
(C) Identifying Decision Criteria
(D) Selecting An Alternative That Can Resolve The Problem
81 Which of the following is important in effectively implementing the chosen C
alternative in the decision-making process?
(A) Getting Upper-Management Support
(B) Double-Checking Your Analysis For Potential Errors
(C) Allowing Those Impacted By The Outcome To Participate In The
Process
(D) Ignoring Criticism Concerning Your Chosen Alternative
82 ______________ includes conveying a decision to those affected and getting C
their commitment to it.
(A) Selecting An Alternative
(B) Evaluation Of Decision Effectiveness
(C) Implementation Of The Alternatives
(D) Analyzing Alternatives
83 To determine the _____________, a manager must determine what is relevant D
or important to resolving the problem.
(A) Geocentric Behavior Needed
(B) Number Of Allowable Alternatives
(C) Weighting Of Decision Criteria
(D) Decision Criteria
84 The feedback control system: A
(A) Cannot make corrections until a measurable error exists
(B) Makes a change in output which is the differentiated error
(C) Is always superior to a feedforward system in operation
(D) Is theoretically capable of perfect control
85 The most dramatic application of feedforward techniques has occurred in their D
application to:

(A) Heat exchangers

(B) Level processes
(C) Flow processes
(D) Distillation columns
86 A properly designed feedforward control system: B
(A) Should be applied to every process
(B) Should be employed when its use can be justified economically and
technologically
(C) Is always easier to adjust than a feedback system
(D) Will always result in more economical process operation
87 _____________function of management not only helps in keeping a track on C
progress of activities but also ensures that activities confirm to standards fill
in the above blank with the most suitable functions of management.
(A) Planning
(B) Organizing
(C) Controlling
(D) Directing
88 Which of the following is not the feature of controlling? D
(A) A goal of oriented process
(B) Not the last function of management
(C) A pervasive function
(D) Improves employees motivation
89 controlling functions finds out how for actual performance deviates from B
standards, analyses the causes of such deviation and attempts to take
corrective measure which helps in better planning in future which features of
controlling the highlighting in above case.
(A) A goal oriented process
(B) Not the last function of management
(C) A pervasive function
(D) Improves employees motivation.
90 Mr.Arnold is of the view that a good control system helps to minimize B
dishonest behavior on the part of the employees by keeping a close check on
their activities.
Which importance of controlling function is expressed by Mr.Arnold?
(A) Accomplishment of organizational goal
(B) Ensures order and discipline
(C) Judging accuracy of standards
(D) Facilitating coordination in action
91 An efficient control system keeps a careful check on the changes taking place C
in the organization and in the environment.
Which importance of controlling function is expressed by Mr.arnold?
(A) Accomplishment of organizational goal
(B) Ensures order and discipline
(C) Judging accuracy of standards
(D) Facilitating coordination in action

92 Determining a percentage to be applied to a chosen benchmark for materiality B

involves the exercise of ______________.
(A) Professional skepticism
(B) Professional judgment
(C) Independence
(D) Provision
93 Factors that may affect the identification of an appropriate benchmark in C
determining Materiality for the financial statements as a whole include the
following:
(A) The elements of the financial statements

(B) The entity’s ownership structure and the way it is financed
(C) Both the above
(D) None of the above
94 Audit risk is a function of: B
(A) Audit risk and detection risk
(B) Risks of material misstatement and detection risk
(C) Control risk and detection risk
(D) Inherent risk and detection risk
95 In relation to the chosen benchmark in determining materiality for the financial C
statements as a whole, relevant financial data ordinarily includes:
(A) Prior periods’ financial results and financial position
(B) The period-to-date financial results and financial position
(C) Both the above
96 The audit documentation shall include the basis for the auditor’s conclusions A
about the_____________ of accounting estimates and their disclosure that
give rise to significant risks.
(A) Reasonableness
(B) Correctness
(C) personality
(D) Disinvestment
97 Due to which of the following reasons excessive band width in control systems C
should be avoided?
(A) It leads to slow speed of response
(B) It leads to low relative stability
(C) Noise is proportional to bandwidth
(D) Presence of feedback
98 In an automatic control system which of the following elements is not used? D
(A) Error detector
(B) Final control element
(C) Sensor
(D) Oscillator

99 The use of feedback element in the feedback loop is: A

(A) It converts the output variable ‘c’ to another suitable feedback variable
‘b’ to compare with the input command signal.
(B) It is the actuating element
(C) To increase the stability
(D) None of the mentioned
100 Practically all the elements are: B
(A) Linear
(B) Non-linear
(C) Exponential
(D) None of the mentioned
101 The need of assuming non-linear element as linear: D
(A) Simplicity of analysis and accuracy of results
(B) Ease of calculations
(C) Less time consuming
(D) Mathematical tool available
102 A situation in which a decision maker knows all of the possible outcomes of a B
decision and also knows the probability associated with each outcome is
referred to as.
(A) Certainty.
(B) Risk.
(C) Uncertainty.
(D) Strategy.
103 Which of the following methods of selecting a strategy is consistent with risk A
averting behavior?
(A) If two strategies have the same expected profit, select the one with the
smaller standard deviation.
(B) If two strategies have the same standard deviation, select the one with
the smaller expected profit.
(C) Select the strategy with the larger coefficient of variation.
(D) All of the above are correct.
104 Which one of the following does measure risk? C
(A) Coefficient of variation
(B) Standard deviation
(C) Expected value
(D) All of the above are measures of risk.
105 If a person's utility doubles when their income doubles, then that person is risk. B
(A) Averse.
(B) Neutral.
(C) Seeking.
(D) There is not enough information given in the question to determine an
answer.

106 Strategy A has an expected value of 10 and a standard deviation of 3. Strategy D

B has an expected value of 10 and a standard deviation of 5. Strategy C has
an expected value of 15 and a standard deviation of 10. Which one of the
following statements is true?
(A) A risk averse decision maker will always prefer A to B, but may prefer
C to A.
(B) A risk neutral decision maker will always prefer C to A or B.
(C) A risk seeking decision maker will always prefer C to A or B.
107 The coefficient of variation measures. A
(A) The risk per unit of expected payoff.
(B) The risk-adjusted expected value.
(C) The payoff per unit of risk.
(D) A decision maker's risk-return tradeoff.
108 A situation in which a decision maker must choose between strategies that D
have more than one possible outcome when the probability of each outcome
is unknown is referred to as
(A) Diversification.
(B) Certainty.
(C) Risk.
(D) Uncertainty.
109 If a decision maker is risk averse, then the best strategy to select is the one that C
yields the.
(A) Highest expected payoff.
(B) Lowest coefficient of variation.
(C) Highest expected utility.
(D) Lowest standard deviation.
110 Circumstances that influence the profitability of a decision are referred to as C
(A) Strategies.
(B) A payoff matrix.
(C) States of nature.
(D) The marginal utility of money.
111 The marginal utility of money diminishes for a decision maker who is C
(A) A risk seeker.
(B) Risk neutral.
(C) A risk averter.
(D) In a situation of uncertainty.
112 A strategy that yields an expected monetary payoff of zero is called a B
(A) Risk-neutral strategy.
(B) Fair game.
(C) Zero-sum game.
(D) Certainty equivalent.

113 A risk-return tradeoff function D

(A) Shows the minimum expected return required to compensate an
investor for accepting various levels of risk.
(B) Slopes upward for a risk averse decision maker.
(C) Is horizontal for a risk neutral decision maker.
114 If the market interest rate is 10% and a decision maker's risk adjusted discount A
rate is 12%, then the decision maker
(A) Is risk averse.
(B) Has a certainty-equivalent coefficient that is greater than one.
(C) Is risk neutral.
(D) None of the above is correct.
115 Circumstances that influence the profitability of a decision are referred to as C
(A) Strategies.
(B) A payoff matrix.
(C) States of nature.
(D) The marginal utility of money.
116 The marginal utility of money diminishes for a decision maker who is C
(A) A risk seeker.
(B) Risk neutral.
(C) A risk averter.
(D) In a situation of uncertainty.
117 Fred is willing to pay $1 for a lottery ticket that has an expected value of zero. D
This proves that Fred.
(A) Is risk averse.
(B) Has a certainty-equivalent coefficient that is equal to one.
(C) Is risk neutral.
118 The analysis of a complex decision situation by constructing a mathematical C
model of the situation and then performing a large number of iterations in
order to determine the probability distribution of outcomes is called
(A) Sensitivity analysis.
(B) Expected utility analysis.
(C) Simulation.
(D) A decision tree.
119 A payoff matrix presents all the information required to determine the optimal B
strategy using the
(A) Expected value criterion.
(B) The maximin criterion.
(C) The utility maximization criterion.
(D) Simulation criterion.
120 A futures contract B
(A) Is a type of bond that specifies the amount of interest that must be paid
on a loan at a future point in time.
(B) Is an agreement to buy or sell a commodity at a specified price at a
specified point in time.

(C) Is a partnership agreement between two parties that determines their

future business relationship.
121 Hedging refers to an investment strategy that is used to A

(A) Control risk from variations in currency prices.
(B) Prevent losses due to corporate bankruptcies.
(C) Ensure the highest possible rate of return.
(D) Prevent foreign competition in domestic capital markets.
122 Asymmetric information refers to circumstances in which C
(A) Both parties to a transaction have identical amounts of information.
(B) Neither party to a transaction has any relevant information.
(C) One party to a transaction has more information than the other party.
(D) The riskiness of a transaction is greater than its expected return.
123 The tendency for low-quality cars to drive high quality cars out of the used car B
market is an example of
(A) Hedging.
(B) Adverse selection.
(C) Portfolio analysis.
(D) Moral hazard.
124 A person with health insurance is more likely to become ill and visit a doctor D
than is someone without health insurance. One reason is that a person with
health insurance is less likely to take precautions that will prevent illness.
This is an example of
(A) Propinquity.
(B) A futures contract.
(C) Hedging.
(D) Moral hazard.
125 The principal-agent problem may result if B
(A) A firm is owned and operated by the same person.
(B) Managers make decisions that are not in the best interest of owners.
(C) A firm compensates managers based on the profitability of the firm.
(D) All of these answers are correct.
126 One way to correct a potential principal-agent problem is for stockholders to A

(A) Offer managers "golden parachutes" in the event of a takeover.
(B) Empower managers to make the decisions they feel are best.
(C) Ensure that there is no explicit linkage between managers'
compensation and the profitability of the firm.
(D) All of these answers are correct.

127 Element of control does not include……… A

(A) Prohibition
(B) Knowledge
(C) Director
(D) Constraint
128 Control process does include…………… C

(A) Establishment of standards of performance
(B) Measurement of actual performance
(C) Taking incorrect action
(D) Comparison of actual performance with the original standards
129 ………………is an organizational structure that groups similar or related B

occupational specialties together.
(A) Divisional Structure
(B) Functional structure
(C) Simple Structure
(D) Traditional; Structure
130 ……………, an organization whose design is not determined by a predefined B
structure. Instead the organization seeks to eliminate the chain of command
(A) Virtual organization
(B) Boundary less organization
(C) Flexi work organization
(D) Learning organization
131 A ……………is the term given to an organization which facilitates the D

learning of its employees so that the organization can continuously
transforms itself .It develops as a result of the pressures which are being
faced by the organizations these days for enabling them to remain
competitive in the present day business environment
132 Which of the below is not a tpe of control C
(A) Pre-controls or forward-looking control
(B) Feed forward or steering control
(C) Freedom
(D) Yes-no controls
133 Which of the below is not a essential of control system? C
(A) Suitability
(B) Prompt reporting
(C) Offensive -looking
(D) Focus on strategic points

134 …………….. culture is nothing but a form of organisation culture where the C
team members connect with each other, regardless of when, where, and how they
work.
135 Factors Affecting Structural Choice. D
(A) Strategy
(B) Size
(C) Technology
(D) Cost
136 Which of the below is not a environmental factor C
(A) Environment is a constraint on managerial discretion
(B) Environment also has a major effect on an organization’s structure
(C) Unstable environment: mechanistic structure
(D) Dynamic/uncertain environment: organic structure
137 Adding a significant number of new employees to a smaller organization that has B
a more …………..structure will force it to become more ……………….
(A) Vertical and horizontal
(B) Organic and mechanistic
(C) Mechanistic and Organic
(D) Horizontal and vertical
138 ………..involves tasks that must be performed to attain organizational goals, B
outlining how the tasks must be performed, and indicating when they should be
performed.
(A) Organizing
(B) Planning
(C) Structuring
(D) Performing
139 Which of the below is not a rational decision Maker B
(A) A rational decision maker would be fully objective and logical.
(B) Solution faced would be clear, unambiguous ( clear )
(C) Decision maker would have a clear and specific goal to be achieved
(D) Know all possible alternatives and consequences

140 A high degree of …………….on an assembly line can lead to boredom and C
alienation, this is unlikely to be true of specialization on a building project, such
as the construction of Biosphere II in Oracle, Arizona.
(A) Job Design
(B) Job analysis
(C) Job specialization
(D) Job Specification
141 A person has this style if they have a low tolerance for ambiguity and are A
efficient, rational, and logical in their way of thinking.
(A) Directive style
(B) Analytic style
(C) Conceptual style
(D) Behavioral style
142 They are careful decision makers that like to be well informed and thoroughly B
assess their options. They usually have the ability to adapt or cope with unique
and challenging situations.
(A) Directive style
(B) Analytic style
143 They are long-term oriented and are usually capable of formulating creative C
solutions to problems. Individuals who tend to be very broad in outlook, to look
at many alternatives, and to focus on the long run and often look for creative
solutions.
(A) Directive style
(B) Analytic style
144 Work well with others, are open to suggestions, and are concerned about the D
achievements of their team. They generally try to avoid conflict and place
importance on their acceptance by others.
(A) Directive style
(B) Analytic style
145 The …………..attempts to reconcile these two earlier approaches and the work A
of the formal and the informal writers.
(A) Systems approach
(B) Environmental approach
(C) Ethical approach
(D) Quantitative approach

146 ……………to decision-making produces the best results when the problem is D
clearly defined, several alternatives exist, and decision outcomes are easily
measurable.
147 …………… issues become manageable when the societal decision making B
process is compared with the decision making of family.
148 …………… standard of business people apart from the demanding situation and C
competitive pressures.
149 ……………is a method of thinking that is outside of the box. According to It, it B
is a process available for humans to use when complexity is introduced into a
scenario or stimuli.
(A) Linear Thing
(B) Nonlinear thinking
(C) Style profile
(D) Non verbal thinking
150 ……………. is thinking inside the box, it is straight forward, cut and dry. It is a A
“follow the recipe” method of thinking that takes information at face value and
thinks directly on a task without ever trying to read into the information to find
hidden.
(A) Linear Thing
(B) Nonlinear thinking
(C) Style profile
Non verbal thinking
151 Decision-Making Errors and Biases includes which of the below…. A
(A) Hindsight
(B) Defensive -serving
(C) Total Costs
(D) Simple
152 Decision-Making Errors and Biases includes which of the below . D
(A) Posting Effect
(B) Selective Perception
(C) Not Confirmation
(D) Framing

153 …………..comparing the additional revenue and the additional cost arising from A
increasing output.
(A) Marginal analysis
(B) Breakeven point
(C) Cost Analysis
(D) Performance analysis
154 Recognizing and overcoming factors that stand critically in the way of a goal, the C
best alternative course of action can be selected stands for…………
(A) Principle of the Option factor
(B) Principle of the Resource factor
(C) Principle of the limiting factor
(D) Principle of the Political factor
155 The use of mostly short-term programs that facilitate the learning process to help B
managers do their jobs better could be best explain by ………..
(A) Soft skill training
(B) Managerial training
(C) Technical training
(D) Personal training
156 The relationship in which a superior exercises direct supervision over a B
subordinate could be explain by the term
(A) Square authority
(B) Line authority
(C) Staff authority
(D) Circle authority
157 The clearer the line of authority, the clearer will be the responsibility for decision A
making and the more effective will be organizational communication can be well
explain by the term
(A) Scalar principle
(B) Actual principle
(C) Regard principle
(D) Performance principle

1. The Practice of Management written by __________.
A. Peter F. Drucker.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
2. Management is an organ, organs can be described and defined only through their
functions. This definition
was given by ____________.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
3. Management is what a manger does_____________.

B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: C
4. To manage is to forecast and plan, to organize, to compound, to co-ordinate and to

control. This definition
was given by____________.
B. Henry Fayol.
C. Louis Allan.
D. Terry.
ANSWER: B
5. Management is the art of getting things done through and with an informally
organized_____________.
A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Henry Fayol.
ANSWER: A
6. Management is the art and science of decision making and leadership _____.
A. Harold Koontz.
B. Donald J. Clough.
C. Louis Allan.
D. Terry.
ANSWER: B
7. Luther Gullik classifies the function of management as ___________.

A. POSDCORB.
B. POSTCARD.
C. POSDCORB.
D. POSDORBC.
ANSWER: C
8. Father of Administrative management______________.

A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: C
9. Pioneer of Human Relations is ___________.

A. Mary Parkett.
B. Lillian Gilbert.
C. Henry Fayol.
D. Elton Mayo.
ANSWER: D
10. Henry Fayol laid down_____________.

A. 12 principles.
B. 13 principles.
C. 14 principles.
D. 15 principles.
ANSWER: C
11. Espirit de corps means______________.

A. union is strength.
B. service is our motto.
C. buyer beware.
D. product is our strength.
ANSWER: A
12. F.W. Taylor is associated with________________.

A. Scientific Management.
B. Future management.
C. Modern management.
D. Principles of management.
ANSWER: A
13. Management is________________.

A. an art.
B. a science.
C. an art and a science.
D. an art not science.
ANSWER: C
14. Henry Fayol was a French__________________.

A. Industrialist.
B. Writer.
C. Manager.
D. Actor.
ANSWER: A
15. General and Industrial Management was written by_________________.

A. Harold Koontz.
B. Terry.
C. Louis Allan.
D. Hendry Fayol.
ANSWER: D
16. Every subordinate should receive orders from and be accountable to only one
superior is __________.
A. Unity of direction.
B. Unity of command.
C. Centralization.
D. Scalar chain.
ANSWER: B
17. Control system of an organisation has no influence over the _____________.
A. internal environment.
B. external environment.
C. customers.
D. government.
ANSWER: B
18. The chain of command from the highest authority to the lowest level in the
organization is _________.
A. Unity of direction.
B. Unity of command.
C. Centralization.
D. Scalar chain.
ANSWER: D
19. Allotment of work to each worker on the basis of the capacity of an average worker
functioning in the
normal working condition is _____________.
A. social task planning.
B. scientific task planning.
C. not a planning.
D. scientific organizing.
ANSWER: B
20. Study of the movements of both the workers and the machine to eliminate wasteful
movement is
_____________.
A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: C
21. A study relating to the fixing of the working hours with rest periods to recoup the
energy while performing
in a job is called ____________.
A. fatigue study.
B. time study.
C. motion study.
D. work-study.
ANSWER: A
22. The first and foremost function of management is ___________.

A. planning.
B. organizing.
C. controlling.
D. coordination.
ANSWER: A
23. Planning lays down the overall objective, strategies and polices for the total
enterprise is ___________.
A. corporate planning.
B. divisions planning.
C. unit planning.
D. department planning.
ANSWER: A
24. Strategic planning is ___________.

A. long term planning.
B. medium term planning.
C. short term planning.
D. annual planning.
ANSWER: A
25. The assumptions about future derived from forecasting and used in planning are
known as
_____________.
A. planning premises.
B. freehold premises.
C. business premises.
D. corporate premises.
ANSWER: A
26. Goals, aims, purposes, missions and target is also known as ____________.
A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: A
27. Contingent plan to meet environmental pressures is ______________.

A. objective.
B. strategies.
C. policies.
D. rules.
ANSWER: B
28. A chronological sequence of steps to be undertaken to enforce a policy and to attain

an objective is known
as ___________.
A. objective.
B. strategies.
C. procedures.
D. rules.
ANSWER: C
29. A statement of expected results expressed in numerical terms for a definite period of
time in the future is
known as ____________.
A. objective.
B. strategies.
C. procedures.
D. budgets.
ANSWER: D
30. The process of establishing a time sequence for the work is known as __________.
A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: B
31. A rigid plan, no scope for discretion __________.

A. rule.
B. schedules.
C. procedures.
D. budgets.
ANSWER: A
32. Specifying the manner of executing policy is known as ________________.

A. objective.
B. schedules.
C. procedures.
D. budgets.
ANSWER: C
33. ____________ is the harmonising or synchronising of individual efforts with the

purpose of achieving
group goals.
A. coordination.
B. control.
C. decision making.
D. delegation.
ANSWER: A
34. __________ is an obligation to perform certain functions and achieve certain results.
A. responsibility.
B. decentralisation.
C. centralisation.
D. delegation.
ANSWER: A
35. Plan that establishes a required method of handling future activities is called
_________.
A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
36. Set of clear instruction in a clear and logical sequence to perform a particular
task______.
A. rules.
B. programme.
C. policy.
D. methods.
ANSWER: B
37. Employees will be promoted on the basis of seniority is an example of __________.

A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: C
38. Steps to be taken for selecting salespersons is an example of ___________.

A. rules.
B. procedures.
C. policy.
D. methods.
ANSWER: B
39. An identified group of people contributing their efforts towards the attainment of
goals is called an
_____________.
A. organization.
B. business.
C. management.
D. department.
ANSWER: A
40. A system of co-operative activities of two or more persons is called __________.

A. department.
B. co-ordination.
C. organization.
D. control.
ANSWER: C
41. Supply of human and material resources and helps to achieve the objective of
business is______________.
A. planning.
B. organisaiton.
C. management.
D. control.
ANSWER: B
42. Formal authority flows from upwards to downwards in___________.

A. formal organization.
B. informal organization.
C. business or organisation.
D. strategic organization.
ANSWER: A
43. Informal authority flows upwards to downwards or horizontally in _____________.

ANSWER: B
44. Rules, duties and responsibilities or workers are given in writing in______________.
ANSWER: A
45. Which is created for technological purpose?

ANSWER: A
46. Which arises from mans quest for social satisfaction?

ANSWER: B
47. Which type of organization is permanent and stable?
ANSWER: A
48. Which type of organization gives importance to terms of authority and functions?
ANSWER: A
49. Which type of organization gives importance to people and their relationships?
ANSWER: B
50. Which organisational relationship gives a greater job satisfaction and results in
maximum production?
ANSWER: B
51. Which type of organization has no place in the organization chart?

ANSWER: B
52. Decision making is the selection based on some criteria from two or more possible
alternatives is defined
by___________.
A. Farland.
B. Mac Donald.
C. Terry.
D. M.C. Nites.
ANSWER: C
53. The selection of best alternative from many alternatives is known as__________.
A. selection.
B. decision-making.
C. organizing.
D. budgeting.
ANSWER: B
54. Deal with routing and repetitive problems is a __________.

A. programmed decision.
B. non-programmed decision.
C. major decision.
D. minor decision.
ANSWER: A
55. Placing a purchase order is an example of ________.

C. major decision.
D. decision.
ANSWER: A
56. The decision which is taken within the purview of the policy of the organization
is_______.
C. major decision.
D. minor decision.
ANSWER: A
57. The decision taken by lower-level management is a _____________.

C. major decision.
D. minor decision.
ANSWER: A
58. The decision deal with novel and non-repetitive problems is___________.
C. individual decision.
D. non-economic decision.
ANSWER: A
59. Opening of new branch is an example of ___________.

ANSWER: B
60. The decision taken by high level of management is _______________.

ANSWER: B
61. Non-programmed decision is also called _____________.

A. routine decisions.
B. structured decisions.
C. strategic decisions.
D. operative decisions.
ANSWER: C
62. Programmed decision is also known as _____________.

A. routine decisions.
B. structured decisions.
C. strategic decisions.
ANSWER: D
63. The decision which has long term impact on business is _____.
ANSWER: B
64. The decision which relates to day-to-day operation of an organization is known as

____.
A. major decision.
B. organisational decision.
C. personal decision.
D. operative decision.
ANSWER: D
65. The decision which does not incur any expenses is known as ____.
A. economic decision.
B. crisis decision.
C. non-economic decision.
D. problem decision.
ANSWER: C
66. The decision which is implemented within the concerned department is known as
___.
B. departmental decision.
ANSWER: B
67. Decision taken by a committee formed by the top management for specific purpose
is ____.
A. group decision.
B. organisational decision.
C. personal decision.
D. operative decision.
ANSWER: A
68. Crisis decision is also known as ____.
A. group decision.
B. major decision.
C. minor decision.
D. spot decision.
ANSWER: D
69. A decision taken to meet unexpected situations is known as ____.

B. crisis decision.
ANSWER: B
70. The authority flows from top to bottom through the structure of an organization is
____.
A. The acceptance of authority theory.
B. The formal authority theory.
C. The competence theory.
D. The organisation theory.
ANSWER: B
71. Which theory is also called traditional authority theory?

ANSWER: B
72. If the subordinates do not accept the command of their superior, then the superior
cannot be said to have
any authority over them is given in.
ANSWER: A
73. The type of authority is invested with the persons by virtue of the office held by
them is ____.
ANSWER: C
74. The process whereby a manager shares his work and authority with his subordinates
is________.
A. Decentralisation
B. Responsibility.
C. Delegation.
D. decision making.
ANSWER: C
75. The subordinate is granted authority to perform all the functions in his department
or division is ____.
A. general delegation.
B. formal delegation.
C. specific delegation.
D. informal delegation.
ANSWER: A
76. The orders, instructions or direction are delegated to a particular person specifically
is known as ____.
A. general delegation.
B. formal delegation.
C. specific delegation.
D. informal delegation.
ANSWER: C
77. When authority is delegated as per the organisation structure it is called ____.
ANSWER: A
78. When an individual or a group agrees to work under the direction of an informal
leader is called _____.
ANSWER: B
79. Delegation made by written orders and instruction is known as ____.

A. oral delegation.
B. written delegation.
C. downward delegation.
D. sideward delegation.
ANSWER: B
80. Departmentation on the basis of activities grouped according to the type of

customer is _____.
A. departmentation by function.
B. departmentation by products.
C. departmentation by territory.
D. departmentation by customers.
ANSWER: D
81. The process of dividing the large monolithic functional organization into small and
flexible administrative units is called ____.
A. staffing.
B. delegation.
C. departmentation.
D. control.
ANSWER: C
82. Departmentation is a part of the ___.

A. organisation process.
B. control process.
C. planning process.
D. staffing process.
ANSWER: A
83. Banks, insurance companies and distribution agencies are examples of ____.
A. departmentation by function.
ANSWER: C
84. Departmentation on the basis of the production process is called ____.

A. equipment department.
ANSWER: A
85. The term span of management is also known as ____.

A. span of business.
B. span of control.
C. span of activity.
D. span of planning.
ANSWER: B
86. The number of subordinates that report directly to a single supervisor is ___.
A. span of supervision.
B. span of activity.
C. span of business.
D. span of organizing.
ANSWER: A
87. Few subordinates report directly to a manager is ____.

A. wide span of management.
B. large span of management.
C. small span of management.
D. narrow span of management.
ANSWER: D
88. Large number of subordinates report to a manager is ____.

A. wide span of management.
B. large span of management.
C. small span of management.
D. narrow span of management.
ANSWER: A
89. Making assignments, issuing orders and instructions, providing guidance and
inspiration to subordinates
for the achievement of organizational objective is called ___.
A. Planning.
B. Organizing.
C. Directing.
D. controlling.
ANSWER: C
90. Motivation based on force of fear is called ____.

A. negative motivation.
B. positive motivation.
C. extrinsic motivation.
D. intrinsic motivation
ANSWER: A
91. Wages, salaries, bonus, vacation pay, insurance are examples of ____.
A. financial motivation.
B. non-financial motivation.
D. intrinsic motivation.
ANSWER: A
92. Participation, recognition and power are some of the examples of ___.
A. financial motivation.
B. non-financial motivation.
D. intrinsic motivation.
ANSWER: B
93. ____ means that each section has its own workers to perform activities within the
department.
A. centralisation.
B. departmentation.
C. decentralisation.
D. delegation.
ANSWER: C
94. According to Maslow, self-actualization needs is a ____.

A. high level needs.
B. medium level needs.
C. lower level needs.
D. psychological needs.
ANSWER: A
95. Expectancy motivation theory is given by ____.

A. Vroom.
B. Maslow.
C. Herzberg.
D. Mc Gregor.
ANSWER: A
96. Management By Objectives was introduced by _____.

A. Taylor.
B. Elton Mayo.
C. Peter Drucker.
D. Maslow.
ANSWER: C
97. Leadership behaviour is influenced by certain qualities of a person is ____.

A. Followers theory.
B. Trait theory.
C. Situational theory.
D. Managerial grid.
ANSWER: B
98. The leadership theory study leaders behaviour is _____.

A. Flowers theory.
B. Trait theory.
C. Behavioural theory.
D. Managerial grid.
ANSWER: C
99. All decision-making power is centralized in the leader is under ____.
A. autocratic style.
B. liberal leader.
C. democratic leader.
D. institutional leader.
ANSWER: A
100. The leader makes decisions in consultation with his followers is ____.
B. liberal leader.
C. democratic leader.
ANSWER: C
101. Complete freedom for group or individual decision, with a minimum of leader
participation is under ____.
B. democratic style.
C. free-rein style.
D. creative style.
ANSWER: C
102. A leader exercises his power over his followers because of his position held in the.
organizational
hierarchy is ____.
A. autocratic leader.
B. intellectual leader.
C. liberal leader.
ANSWER: D
103. The leader who excels as a leader because of his superior knowledge is ___-.
A. autocratic leader.
C. liberal leader.
ANSWER: B
104. A leader who serves as the head of the family and treats his followers like his family
members is ____.
A. paternalistic leader.
C. liberal leader.
ANSWER: A
105. A leader motivates his followers to work hard by offering them rewards is ____.
A. positive style.
B. negative style.
C. autocratic style.
D. democratic style.
ANSWER: C
106. A leader forces his followers to work had and penalizes them is ____.
A. positive style.
B. negative style.
ANSWER: B
107. Leader acts more as bosses then leadership style is ____.

A. positive style.
B. negative style.
ANSWER: B
108. The leader acts as a liaison officer between the employees and the outside world is
____.
A. positive style.
B. free-rein style.
ANSWER: B
109. The last function of management is____.

A. Planning.
B. Organizing.
C. Controlling.
D. Staffing.
ANSWER: C
110. Fixation of standards, measurement of performance, comparison, and correction of

deviation are the steps in________.
A. planning.
B. organizing.
C. Staffing.
D. control process.
ANSWER: D
111. Planning is looking ahead and control is_________.

A. looking back.
B. looking front.
C. looking sideward.
D. looking down.
ANSWER: A
112. Control exercised while the activity is in progress is__________.

A. concurrent control.
B. feedforward control.
C. feedback control.
D. preserving control.
ANSWER: A
113. Exchange of ideas, opinions, information etc. between two or more persons
is________.
A. Planning.
B. organizing.
C. Communication.
D. Staffing.
ANSWER: C
114. Communication is a _______.

A. one-way process.
B. two-way process.
C. three-way process.
D. four-way process.
ANSWER: B
115. The person who sends a message is known as________.

A. Sender.
B. Receiver.
C. Messenger.
D. Communicator.
ANSWER: A
116. The act of making ones ideas and opinions known to others is said by_______.
A. Meyer.
B. Brown.
C. Newman.
D. Keith Davis.
ANSWER: A
117. The act of translating the message into words, pictures, symbols, signs or some
other form is known as _________.
A. Sender.
B. Receiver.
C. Encoding.
D. decoding.
ANSWER: C
118. The person who receives the message is called _________.

A. sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: B
119. Converting symbols, signs or pictures into meaning is known as _______.

A. Sender.
B. receiver.
C. encoding.
D. decoding.
ANSWER: D
120. communication that flow from superior to subordinates is________.
A. downward communication.
B. upward communication.
C. horizontal communication.
D. informal communication.
ANSWER: A
121. Informal communication is commonly known as ________.

D. Grapevine.
ANSWER: D
122. Communication of policies, procedures and programmes is example of_________.

ANSWER: A
123. Reports, suggestions, appeals, grievances, etc is example of_________.

ANSWER: B
124. Inter-departmental committee meeting is an example of__________.

ANSWER: C
125. Rumours and gossips are_________.

ANSWER: D
126. Exchange of messages through spoken words is_________.

A. oral communication.
B. written communication.
C. gestural communication.
D. sideward communication.
ANSWER: A
127. Lectures, group discussions, interviews, social gathering are example of _____.
ANSWER: A
128. Letters, circulars, memos, bulletin, manuals, reports are example of________.
ANSWER: B
129. The problems in communication channels is known as______.

A. organizational barriers.
B. mechanical barriers.
C. personal barriers.
D. semantic barriers.
ANSWER: B
130. The integration of objectives and activities of an organization is________.

A. control.
B. co-ordination.
C. Planning.
D. organizing.
ANSWER: B
131. Co-ordination between the activities of various departments and individuals
working within the organization is known as _________.
A. vertical co-ordination.
B. external co-ordination.
C. internal co-ordination.
D. horizontal co-ordination.
ANSWER: C
132. Scalar chain means ________.

A. hierarchy levels.
B. chain of command.
C. delegation of authority.
D. span of control.
ANSWER: A
133. The oldest type of organization__________.

A. functional organization.
B. line organization.
C. matrix organization.
D. committee organization.
ANSWER: B
134. The organization which was devised by FW Taylor was ________.

A. functional organization.
B. matrix organisation.
C. committee organization.
D. line and staff organization.
ANSWER: A
135. Devices which shows the organizational relationships________.

A. organizational charts.
B. scalar chain.
C. overall plan.
D. Budgets.
ANSWER: A
136. When the supervisor commands subordinates and has close supervision is called
______.
A. free-rein.
B. autocratic.
C. consultative.
D. democratic.
ANSWER: B
137. Praise, recognition and power are_______.

A. intrinsic motivation.
B. extrinsic motivation.
C. positive motivation.
D. negative motivation.
ANSWER: A
138. X and Y theory was introduced by_______.

A. Mc gregor.
B. Peter drucker.
C. Henry fayol.
D. FW taylor.
ANSWER: A
139. Time-event network is _________.

A. PERT.
B. CPM.
C. MIS.
D. statistical reports.
ANSWER: A
140. Management is ____________.

A. art.
B. science.
C. art and science.
D. humanities.
ANSWER: C
141. Decision making helps in the smooth function of the___________.

A. business.
B. staffing.
C. organization.
D. planning.
ANSWER: A
142. The transmission of thoughts from person to another is_____________.
A. communication.
B. controlling.
C. consultative.
D. organizing.
ANSWER: A
143. The study relating to the movement of a machine operator and his machine while
performing the job is
called__________.
A. time study.
B. work study.
C. motion study.
D. fatigue study.
ANSWER: C
144. Selecting a best course of action among the alternatives is called as_________.
A. decision making.
B. planning.
C. organizing.
D. controlling.
ANSWER: A
145. The decisions which are frequent and repetitive in nature are called as________.
A. non programmed decisions.
B. programmed decisions.
C. major decisions.
ANSWER: B
146. A decision which is taken to meet unexpected situation__________.

A. problem decision.
B. certainty decisions.
C. crisis decision.
D. organizational decision.
ANSWER: C
147. The right of a person to give instructions to his subordinates is known as_________.
A. responsibility.
B. authority.
C. accountability.
D. line authority.
ANSWER: B
148. Elements of delegation_________.

A. responsibility, authority, accountability.
B. authority, delegation, accountability.
C. responsibility, decentralization, centralization.
D. controlling, responsibility, authority.
ANSWER: A
149. The extent to which power and authority are retained at the top is called as________.
A. centralization.
B. decentralization.
C. responsibility.
D. accountability.
ANSWER: A
150. _____ deals with appointing people and placing them at the appropriate jobs.
A. Human resources.
B. Recruitment.
C. Staffing.
D. Placement.
ANSWER: C
1-In management process, the most misinterpreted word is

(A) Organizing
(B) Delegating
(C) Controlling
(D) Planning
2-The department(s) that an event management company will have is (are)

(A) Creative
(B) Production
(C) Client servicing
3- Who said, “Management is a multiple purpose organ that manages a business,

manages a manager and manages workers and work”?
(A) Harold Konntz
(B) Peter Drucker
(C) Kenneth O ‘Donell
(D) Anonymous
4- Under mechanism of scientific management, scientific task setting includes:

(A) Time study
(B) Motion study
(C) Method study
5- Management as a discipline is the function of________.

(A) Science
(B) Art
(C) Creativity
6- Which theory assumes that people are naturally lazy and will avoid work and
responsibilities if possible?
(A) Theory X
(B) Theory Y
(C) Theory Z
7- Who is the person you have to give importance under the company’s checklist before
making call to the consultant.
(A) Managers
(B) Employees
(C) Customer
8- What is one of the most significant inhibitors in customer preference while

purchasing perishable items in retail?
(A) Proximity of markets
(B) Customer preference to brands
(C) Both (A) and (B)
9- The objectives in corporate governance are

(A) Growth
(B) Stability
(C) Shareholders value maximization
10- The word________denotes a function, a task, a discipline.

(A) Management
(B) Leadership
(C) Motivation

ANSWERS:
1-(A), 2-(D), 3-(B), 4-(D), 5-(C), 6-(A), 7-(B), 8-(A), 9-(D), 10-(A)
1- Management is a creative and ________ process.

(A) Continuous
(B) Technical
(C) Democratic
2- The old control technique(s) which was (were) used through years is (are)
(A) unity of policies
(B) break-even analysis
(C) budgetary control
3- Which type of strategies do professional managers help organizations in chalking out?

(A) Multi-disciplinary
(B) Corporate
(C) Managerial
4- Management exists at the ___ level of the organization.

(A) Lower
(B) Middle
(C) Top
5- Limitation(s) of control is (are)

(A) external factors
(B) fixing of responsibility
(C) variation and its causes
6- Management is said to be the combination of

(A) arts, science and profession
(B) arts, science and engineering
(C) arts, commerce and science
(D) arts, commerce and engineering
7- ___ is supposed to be immutable, unchanging and eternal.

(A) Policy
(B) Vision
(C) Mission
8- The summary of important trends in retailing are

(A) market concentration
(B) global players vs. local players
(C) non store retailing
(D) all of the above
9- Costliness of the ________ is the overriding factor determining the extent of decentralization.
(A) Decision
(B) Staffing
10- Positive motivation makes people willing to do their work in the best way they can and improve
their ________.
(A) Productivity
(B) Personality
(C) Performance
11- The objective(s) in corporate governance is (are)

(A) shareholders value maximization
(B) growth
(C) stability
(D) all of the above
12- The heart of administration is the ___ function.

(A) Directing
(B) Organizing
(C) Controlling
(D) Cooperating
13- The different A’s of the service sector are

(A) acceptability , awareness , adaptability
(B) acceptability , awareness , availability
(C) adaptability , awareness , availability
(D) acceptability , adaptability , availability
14- Fedrick Winslow Taylor’s Mechanism of Scientific Management includes

(A) Scientific task setting
(B) planning the task
(C) standardization of tools and equipment
15- Direction is a ________ function performed by all the managers at all levels of the organization.
(A) Managerial
(B) Organizational
16- Retailing category(ies) based on ownership arrangement would be

(A) Super Markets
(B) Consumer Durables Stores
(C) Departmental Stores
17- ___ is a tool for corporate governance.

(A) Training
(B) Recruitment
(C) Communication
(D) Consulting
18-Horizontal co-ordination takes place ___ .

(A) upwards
(B) downwards
(C) sideways
(D) any of the above
19-The internal environment factor(s) that influence management is (are)

(A) Labor
(B) Machines
(C) Place
20-What articulates the long-term goals of an enterprise?

(A) Policies
(B) Vision statement
ANSWERS:
1-(A), 2-(D), 3-(B), 4-(D), 5-(D), 6-(A), 7-(A), 8-(D), 9-(A), 10-(C), 11-(D), 12-(A), 13-(B), 14-(D), 15-(A),
16-(D), 17-(C), 18-(C), 19-(D), 20-(B)

Title - MCQS Questions Bank No. 5: Prof. Suryawanshi Vijaykumar Balasaheb

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Title - MCQS Questions Bank No. 5: Prof. Suryawanshi Vijaykumar Balasaheb

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Suryawanshi Vijaykumar Balasaheb

Subject - Principles of Management (101)

Title - MCQS Questions Bank No. 5

1) Code of conduct is an example of -------

(a) Controllable premise

(d) None of the above.

Ans:- a) Controllable premise

3) Guide post of managerial action is ------

4) Policies are ------

(a) Short-range plan

7) Lower level management is concerned with the tactical administrative

(a) long range plans

Ans:- b) short range plans

9) -----------is described as interpretative planning

10) --------------indicates the exact manner in which the integrated serious of

12) Organisation means a formalised intentional structure of ------

13) A proper organisation avoids duplication of ----------

15) Authority and responsibility should be --------

16) Authority is the right to give ---------

18) Operational authority is to carrying out the ------

19) Authority flowing from top to bottom is called -----

(a) Formal authority.

Ans:- a) Formal authority.

Ans:- b) Span of Management

21) The staff are experts who provide advice to ----

Ans:- c) Line officers

22) Functional authority ensures ---

Ans:- c) Better division of labour

24) Shifting a trainee fromone job to another is known as ---------

(a) Job rotation

Ans:- a) Job rotation

25) Performance appraisal serves as a basis for ---------

(a) Man power planning

Ans:- b) On-the –job-training

27) The supervisor motivate the subordinates in -----

(a) Consultative direction

(b) Free rein direction

(c) Autocratic direction

29) Direction is known as ------

31) Telling people what to do is ---

32) Effective control depends on ----

(a) Organisation structure

(b) proper direction

(c) Flow of communication

(a) Top level management

(b) Lower level management

(c) All managers

Ans:- c) All managers

34) Effective control depends on ------

(a) Organisation structure

(b) proper direction

(c) Flow of communication

35) The requirement of Effective control system is ------

Ans:- c) cost as well as time

37) BEP is a function of ----

(a) sales volume

Ans:- d) sales volume, cost and profit

38) The heart of management is ----

(a) setting up of obligation

Ans:- a) setting up of obligation

40) Management is a -----

41) Management is a -----Activity