Nature and Significance of Management Class 12 Business Studies MCQs Pdf

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

Answer/Explanation

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

2. Management is essential for the organisations which are

(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

Answer/Explanation

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

3. Management contains a series of interrelated functions that include

(a) Planning
(b) Organising
(c) Directing
(d) All of the above

Answer/Explanation

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

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

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

5. Successful management ensures that

(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
(d) None of the above

Answer/Explanation

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

6. Efficiency is concerned with

(a) Doing the right thing
(b) Doing things right
(c) Achieving end results
(d) None of the above

Answer/Explanation

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

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

Answer

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

(b) The work is completed within 10 days even at higher cost per unit

(c) The cost of production is less than ₹150 per unit

(d) All of the above

Answer/Explanation

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

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

Answer

Answer: b

10. Management is said to be poor if it is

(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

Answer

Answer: c

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

Answer/Explanation

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

12. Management is equally important to run a political organisation as it is to run an economic

organisation. Which feature of management is being reflected in the given statement?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity

Answer/Explanation

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

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

Answer/Explanation

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

14. Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.

(b) Achievement of common goal requires teamwork and co-ordination of efforts in a common
direction.

(c) Each member of the organisation may have different individual goals but they must travel
together towards common goals.
(d) All of the above

Answer

Answer: d

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

Answer/Explanation

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

16. Which of the following is not an organisational objective of management?

(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children

Answer/Explanation

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

17. Management is considered important because

(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
(d) All of the above

Answer

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

Answer/Explanation

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

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

Answer/Explanation

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

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

Answer

Answer: b

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

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

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

Answer/Explanation

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

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

Answer/Explanation

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

24. Which of the following is a function of top level management?

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

Answer/Explanation

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

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

Answer/Explanation

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

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

Answer/Explanation

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

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

Answer/Explanation

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

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

Answer

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

Answer

Answer: c

30. Organising as a function of management involves deciding

(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

Answer

Answer: d

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

Answer

Answer: b

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

Answer

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

Answer

Answer: a

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

Answer

Answer: b

35. It is a force that binds all the functions Of management.

(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

Answer

Answer: b

36. Co-ordination is considered to be the essence of management because

(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the above

Answer

Answer: d

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

Answer

Answer: c

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

Answer

Answer: c

Maths

Textbook Solutions NCERT

Solutions
Science NCERT SolutiMCQ Questions Social
for Class 12 Business Studies
Chapter 1 Nature and Significance of Science
Management with Answers
NCERT
September 1, 2020 by Prasanna
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Nature and Significance of

Management Class 12 MCQs
Questions with Answers

Question 1.
Which one of the following
statements is not correct?
(a) Management is a goal-oriented
process.
(b) Management is a continuous
process.
(c) Management is a dynamic
process.
(d) Management is a rigid process.

Answer

Answer: (d) Management is a rigid

process.

Question 2.
Which one of the following is not an
importance of management?
(a) Integrating various interest
groups
(b)Developing society
(c) Disciplining employees
(d) Inculcating creativity

Answer

Answer: (c) Disciplining employees

Question 3.
Management is not
(a) an applied science.
(b) a pure science.
(c) an art.
(d) an art and science both.

Answer

Answer: (b)a pure science.

Question 4.
In which category does management
fall?
(a) Well-established profession
(b) Semi-profession
(c) Emerging profession
(d) Marginal profession

Answer

Answer: (c) Emerging profession

Question 5.
Top management is concerned with
formulation of
(a) guidelines for supervisors.
(b) long-term plans.
(c) short-term plans.
(d) None of these.

Answer
Answer: (b) long-term plans.

Question 6.
Coordination is
(a) a management function.
(b) the essence of management.
(c) an objective of management.
(d) a social objective.

Answer

Answer: (b) the essence of

management.

Question 7.
The element that aims at integrating
group efforts to achieve group
objectives is called ___
(a) Cooperation
(b) Coordination
(c) Management
(d) Directing

Answer

Answer: (b) Coordination

Question 8.
Managing Director is the position of
___ level of management in a large
company.
(a) Top
(b) Middle
(c) Lower
(d) Middle and Lower

Answer
Answer: (a) Top

Question 9.
Management is multidimensional
because it has ___ dimension(s).
(a) One
(b) Two
(c) Three
(d) Four

Answer

Answer: (c) Three

Question 10.
Management is a ___ directed
process as it aims at achieving
specified goals.
(a) Continuously
(b) Future
(c) Goal
(d) Deliberately

Answer

Answer: (c) Goal

Question 11.
___ is a systematised body of
knowledge that explains certain
general truths or operation of
general laws.
(a) Science
(b) Art
(c) Profession
(d) Art and Profession both

Answer

Answer: (a) Science

Question 12.
Identify the feature of co-ordination
being highlighted in the given
statement: “Coordination is not a
one time function, it begins at the
planning stage and continue till
controlling.”
(a) Coordination ensures unity of
action
(b) Coordination is an all pervasive
function
(c) Coordination is a continuous
process
(d) Coordination is a deliberate
function

Answer

Answer: (c) Coordination is a

continuous process

Question 13.
Co-ordination is considered to be the
essence of management because
(a) It is a common thread that runs
through all the activities within the
organisation
(b) It is implicit and inherent in all
functions of the organisation
(c) It is a force that binds all the
functions of management
(d) All of the above

Answer

Answer: (d) All of the above

Question 14.
This function of Management related
to placing the right person at the
right job is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer

Answer: (b) Staffing

Question 15.
This function of management
relating to laying down the
foundation for carrying out the other
functions of management
successfully is
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Answer

Answer: (c) Planning

Question 16.
Organising as a function of
management involves deciding
(a) What activities and resources are
required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

Answer

Answer: (d) All of the above

Question 17.
The main task of this level of
management is to determine the
overall organisational objectives and
strategies for their realisation.
(a) Operational management
(b) Middle level management
(c) First line managers
(d) Top level management

Answer

Answer: (d) Top level management

Question 18.
Which of the following statements is
not true for lower level management?
(a) Analyse the business
environment and its implications for
the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage
of resources
(d) They ensure that the safety
standards are maintained within the
organisation.

Answer

Answer: (a) Analyse the business

environment and its implications for
the survival of the business.
Explanation:
Analyse the business environment
and its implications for the survival
of the business-top level
management

Question 19.
Which of the following is a function
of top level management?
(a) Ensuring quality of output
(b) Assigning necessary duties and
responsibilities to their departments
(c) Taking responsibility for all the
activities of the business and its
impact on the society
(d) Ensuring that the safety
standards are maintained within the
organisation.

Answer

Answer: (d) Ensuring that the safety

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

Question 20.
Which of the following is not a
designation related to middle level
management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager

Answer

Answer: (c) Chief Operating Officer

Explanation:
Chief Operating Officer is a
designation for top level
management.

True or False

State with reasons whether the

following statements are True or
False.

1. “Management principles can be

applied to all types of activities.”
Answer

Answer: True; management is

pervasive.

2. “Coordination is required at all

levels of management in all
management functions.”

Answer

Answer: True; coordination is

pervasive.

3. “Management involves the

decisions by a manager and it is not
a group activity.”

Answer

Answer: False; management is a

group activity because it unites
individual efforts in common
direction.

4. Top management level is

responsible for implementing plans
and strategies of the organisation.

Answer

Answer: False; it is the responsibility

of the middle management level

ons