DELHI PUBLIC SCHOOL ANANTNAG

Class: 12th Subject: Business Studies

Time: 01 Hours Subject Code: 054

1 Management is essential for the organisations which are

(a) Non-profit organisations (b) Service organisations

(c) Social organisations (d) All of the above

2 Management contains a series of interrelated functions that include

(a) Planning (b) Organising

(c) Directing (d) All of the above

3 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

4 Effectiveness relates to

(a) Doing the right task (b) Completing activities

(c) Achieving goals (d) All of the above

5 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

7 Management is not

(a) an applied science. (b) a pure science.

(c) an art. (d) an art and science both.

8 In which category does management fall?

(a) Well-established profession (b) Semi-profession

(c) Emerging profession (d) Marginal profession

9 Top management is concerned with formulation of

(a) guidelines for supervisors. (b) long-term plans.

(c) short-term plans. (d) None of these.

10 This function of Management related to placing the right person at the right job is

(a) Organising (b) Staffing

(c) Planning (d) Controlling

11 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

12. Different levels of management are:

(A) Top level management, mid-way management, bottom level management

(B ) Top level management, middle level management, below level management

( C) To the point management, middle level management, bottom level management

(D) Top level management, middle level management, bottom level management

13 – 16 CASE STUDY BASED QUESTIONS

Read the following case and answer the following questions on the basis of the same:
 Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian
handloom and handicraft products. It sells fabrics, furnishings, ready-mades and household items are made out of traditional
Indian fabrics.
Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their
purchase from different suppliers. She appoints a team of designers and crafts people in the company, who developed some
prints for bed covers in bright colour on silk. Although the products looked very attractive and impressive, they were relatively
expensive on the front of affordability for an average customer.
Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers
on a regular basis to keep costs under control.

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

(A) Controlling (B) Staffing

(C) Planning (D) Directing

14 In the above case “company’s objective is to promote the sales of Indian

handloom and handicraft products.”
The above line focus on which feature of management?

(A) Management is an intangible force (B) Management is a goal oriented process

(C) Management is pervasive in nature (D) Management is a continuous process

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

(A) Lower level (B) Top level

(C) Middle level (D) Shop floor

16 “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a
regular basis to keep costs under control.”

Which function of management is highlighted in this context?

(A) Controlling (B) Staffing

(C) Organising (D) Planning

17. Principles of management can be modified by the manager when the situation demands. This statement
implies that the principles of management are

(a) Rigid (b) Contingent

(c) Flexible (d) Universally applicable

18 ‘Rule of thumb’ refers to

(a) Use of personal judgement in handling management issues

(b) Adopting a hit-and-trial approach to resolve management problems
 (c) Both of the above
(d) None of the above

19 According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and
managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the
related principle of scientific management.

(a) Harmony, not discord

(b) Science, not rule of thumb
(c) Development of each and every person to get his/her greatest efficiency and prosperity
(d) None of the above

20. According to this principle of scientific management, the employees should be rewarded for their suggestions which results in
substantial reduction in the cost.

(a) Science, not rule of thumb (b) Co-operation, not individualism

(c) Harmony, not discord (d) All of the above

21. The concept of Work Study techniques includes

(a) Time study (b) Motion study

(c) Fatigue study (d) All of the above

22. The objective of this technique of scientific management is to reduce a given line or a product to fixed type sizes and
characteristics. Name the technique.

(a) Method study (b) Differential piece wage system

(c) Standardisation and simplification of work (d) Functional foremanship

23. This technique of scientific management helps in development of the concept of assembly line which is

widely used in automobile companies these days as well. Identify the technique

(a) Motion study (b) Standardisation and simplification of work

(c) Method study (d) Time study

24. The technique of differential piece rate system was developed by Taylor in order to

(a) Discriminate between efficient and inefficient workers

(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above
25. The application of this principle of management leads to higher production and better work for the same effort. Identify the
related principle of general management.

(a) Discipline (b) Equity

(c) Division of work (d) Order

26. According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but
at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of
management being described in the given statement.

(a) Discipline (b) Authority and responsibility

(c) Unity of command (d) Unity of direction

27. According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in
jeopardy, order disturbed and stability threatened.” Identify the principle.

(a) Authority and responsibility (b) Discipline

(c) Unity of command (d) Equity

28. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational
efficiency.”?

(a) Stability of personnel (b) Remuneration of employees

(c) Equity (d) Esprit De Corps

29. Father of scientific management

(A) Taylor ( B) Fayol

( C) Koontz ( D) Kotler

30. Father of general management

(A) Taylor ( B) Fayol

( C) Koontz ( D) Kotler

31. Gang plank is concerned about

( A) Direct contact ( B) Indirect contact

( C) Contact not allowed (D) None of these

32 Which of the following is not a feature of Business environment

(a) Interrelated Elements (b) Dynamics

 (c) Complexity (d) Continuous

33. Which of the following does not explain the impact of government policy changes on business & Industry

(a) Increasing competition (b) More demanding market customers

(c) Market orientations (d) Change in agricultural prices

34. Negative and unfavourable external factors that are likely to create hurdles for a firm:-

(a) Opportuities (b) Warning

(c) Threats (d) None of these

35. Which of the following are the dimensions of the business environment:-

(a) Economic & Social (b) Technological & Economic

(c) Legal & Social (d) All of the above

36. Liberalization means

(a) Policy of planned disinvestment (b) Integrating among economies

(c) End of license & reduction of government control (d) None of these

37. Globalization does not involve:-

(a)Increase of barrier (b) Free flow of goods & services
(c) Global mechanism for settlement of economic disputes
(d) Free flow of capital

38. Which of the following are the impact of govt. policy changes on business & industry?

(a) Increased competition (b) Need for change

(c) Demanding customers (d) All of the above

39. Which factor is not included in Macro environment

( a) Economic environment ( b ) Political environment

( c) Social Environment ( d) Competitors

40. Free flow of goods & services means

( a) Globalization ( b) Liberalization
 ( c ) Privatization ( d) None of these

41. Which among the following is success for privatization

(a)Increase of barrier (b) block flow of goods & services

(c ) No Free flow of capital (c) All of these

42. Which among the following is not part of private sector

( a) Railways ( b) air ways

( c) Education ( d) Hospital

42. Name the function of management which involves setting objectives and developing appropriate courses of action to
achieve these objectives.

(a) Directing (b) Organising

(c) Planning (d) Staffing

43. Which of the following is not a benefit of planning?

(a) Planning reduces overlapping and wasteful activities.

(b) Planning is a mental exercise.
(c) Planning provides directions.
(d) Planning reduces the risks of uncertainty.

44. Which of the following is a benefit of planning?

(a) Helps in avoiding confusion and misunderstanding.

(b) Ensures clarity in thought and action.
(c) Useless and redundant activities are minimized or eliminated.
(d) All of the above.

45. Which of the following statements is not true with reference to planning?

(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.

46. What is known as the primary function of management?

(a) Controlling (b) Organising

 (c) Planning (d) Staffing

47. Which of the following is not a feature of planning?

(a) Planning is futuristic.

(b) Planning is pervasive.
(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objective

49 All other managerial functions are performed within the framework of the 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

50. Planning requires logical and systematic thinking rather than guess work or wishful thinking. Identify the related feature of
planning.

(a) Planning is futuristic. (b) Planning is a mental exercise.

(c) Planning establishes standards for controlling.
(d) Planning focuses on achieving objectives.

51. Planning cannot foresee everything, and thus, there may be obstacles to effective planning. Identify the related limitation of
planning.

(a) Planning leads to rigidity.

(b) Planning may not work in a dynamic environment.
(c) Planning does not guarantee success.
(d) Planning reduces creativity.

52. It is not always true that just because a plan has worked before it will work again. Identify the related limitation of planning.

(a) Planning leads to rigidity.

(b) Planning reduces creativity.
(c) Planning may not work in a dynamic environment.
(d) Planning does not guarantee success
53 Organising can be defined as:-

(a) Identifying & grouping various activities (b) Establishing productive relations for the achievement of goals

(c) Both (a) & (b) (d) None of the above

54. Responsibility flows from :-

(a) Superior to subordinate (b) Subordinate to superior

( c) Superior to superior (c) None of the above

55. Which of the following is not a process of organising:-

(a) Division of work (b) Assignment of duties

(c) Grouping jobs (d) Decision making

56. ___________ clearly defines what tasks & activities shall be carried out at particular job

(a) Role clarity (b) Coordination

(c) Job design (d) Specialization

57. When managers are made responsible for coordinating a particular number of jobs effectively is called

(a) Adaptation (b) Span of control

(c) Coordination (d) Job design

58. ________ structure is suitable when the size of the organization is large

(a) Organisational (b) Divisional

(c) Functional ( d) Regional

59. Which of the following is not true about formal organization:-

(a) Deliberately planned & created by management

(b) Stable & predictable
(c) Violation of rules may lead to penalties
(d) Leaders are chosen

60. Process of entrusting responsibility & authority & creating accountability of person who work has been given is known as
 (a) Delegation (b) Centralization

(c) Decentralization (d) Informal organization

61. Organising process includes one of the following:

(a) Grouping of activities (b) Prescribing disciplinary action

(c) Determining objectives (d) Prescribing work schedule

62. One of the following is not an importance of organising:

(a) Role clarity (b) Performance appraisal

(c) Adaptation to change (d) Growth and expansion

63 Organisation structure establishes relationships between

(a) organisation and environment. (b) people, work and resources.

(c) organisation and society. (d) suppliers and customers.

64. One of the following is an advantage of functional structure:

(a) Responsibility for end results (b) Flexibility

(c) Personalised attention (d) Easier employee learning

65. Divisional structure leads to conflict in

(a) resource allocation. (b) marketing management.

(c) motivation. (d) planning process.

66. In which respect does formal organisation differ from informal organisation?

(a) Production process (b) Structuring

(c) Financial procedure (d) Purchasing

67. Which one of the following does not follow scalar chain?

(a) Informal organisation (b) Functional structure

(c) Formal organisation (d) Divisional structure

68. Degree of decentralisation indicates

(a) degree of authority delegation. (b) degree of responsibility.

 (c) degree of power delegation. (d) degree of accountability.
69. ___ involves giving authority and responsibility to subordinates.

(a) Division of work (b) Decentralisation

(c) Delegation (d) Centralisation

70. ___ is the process of grouping similar activities together and creating departments.

(a) Division of work (b) Departmentalisation

(c) Delegation (d) Centralisation

71. ___ is the organisational structure in which activities are grouped on the basis of products.

(a) Divisional structure (b) Functional structure

(c) Formal (d) Informal

72. __ is the organisational structure in which no department is responsible for end results.

(a) Divisional structure (b) Functional structure

(c) Formal (d) Informal

73. ___ is the duty for job performance.

(a) Authority (b) Responsibility

(c) Accountability (d) None

74. ___ is the right to command.

(a) Authority (b) Responsibility

(c) Accountability (d) Both (b) and (c)

75. ___ cannot be delegated.

(a) Authority (b) Responsibility

(c) Accountability (d) Both (b) and (c)

76. When decision-making authority is retained organisation is said to be by higher management levels, an

(a) Decentralised (b) Centralised

(c) Fragmented (d) None of the above

77. Responsibility is derived from

(a) Authority (b)Formal position

(c) Accountability (d) All of the above

78. Which of the following cannot be delegated?

(a) Responsibility and accountability (b) Authority and responsibility

(c) Accountability and responsibility (d) All of the above

79. The accountability flows

(a) In all directions (b) Downwards

(c) Upwards (d) None of the above

80. Authority granted to an employee should be

(a) More than the responsibility entrusted to him

(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above

81. Which of the following is not concerned with staffing?

(a) Recruitment (b) Selection

(c) Training (d) Publicity

82. _________ involves planning, acquisition & development of resources necessary for organizational success.

(a) Human Resource management (b) Human emphasis

(c) Specialization (d) Compensation

83. Which of the following is not a process of selection?

(a) Manpower planning (b) Placement & orientation

(c) Separation (d) Initiate action

84. ______ refers to careful study of each job to determine tasks & responsibility involved in a job.

(a) Multiplier effect (b) Human emphasis

(c) Job analysis (d) Job satisfaction

85. Process of attracting qualified person to apply for the jobs that are open is refer to as

(a) Training (b) Recruitment

(c) Human resource management (d) Transfer

86. Which of the following is not a process of selection?

(a) Testing (b) Checking references

(c) Attitude formation (d) Medical examination

87. ______ is the learning experience that seeks relatively permanent change in an individual that will improve
his ability to perform on job.

(a) Training (b) Development

(c) Attitude formation (d) Job analysis

88. Under this method employees learn their job on the equipment they will be using but training is done away
from actual work place

(a) Apprenticeship programme (b) Vestibule training

(c) Job rotation (d) Job analysis

 89. 4. Which of the following is not a type of personal barrier?
(a) Fear of challenge to authority .
(b) Unwillingness to communicate
(c) Loss by transmission and poor retention
(d) Lack of proper incentive
90. It refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve
their objectives.

(a) Planning (b) Organising

(c) Staffing (d) Directing

91. Which of the following is not an element of directing?

(a) Supervision (b) Communication

(c) Leadership (d) Inspection

92. While other functions prepare a setting for action, name the function that initiates action in the organisation.

(a) Planning (b) Organising

(c) Staffing (d) Directing

93. Identify the level at which the directing function takes place in an organisation?

(a) Top level management (b) Middle level management

(c) Lower level management (d) All of the above

94. It is defined as the process of guiding the efforts of employees and other resources to accomplish the desired
objectives.

(a) Supervision (b) Communication

(c) Leadership (d) Inspection

95. It means the process of making subordinates to act in a desired manner to achieve certain organisational goals.

(a) Supervision (b) Communication

(c) Leadership (d) Motivation

96. Effective motivation in the organisation does not contribute towards

(a) Developing performance levels of employees

(b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation
(d) All of the above
97. These needs are most basic in the hierarchy of motivation theory and correspond to primary needs.

(a) Self Actualisation Needs (b) Basic Physiological Needs

(c) Security Needs (d) Belonging Needs

98. Azra recently got a raise in his salary due to annual increment. Which of his human
needs is being satisfied through this?

(a) Security Needs (b) Belonging Needs

(c) Self Actualisation Needs (d) Basic Physiological Needs

99. Which of the following is not an importance of controlling function?

(a) It ensures order and discipline. (b) It restricts co-ordination in action.

(c) It helps in judging accuracy of standards.

(d) It improves employee motivation.
100 Which of the following statements does not highlight the relationship between planning and controlling?

(a) Planning and controlling are separable twins of management.

(b) Planning without controlling is meaningless, controlling without planning is blind.
(c) Planning is prescriptive, controlling is evaluative.
(d) Planning and controlling are interrelated and interdependent.
101. It is the process of ensuring that events confirm to plans.

(a) Planning (b) Controlling

(c) Organising (d) Directing

102. The controlling function is performed by

(a) Top level management (b) Lower level management

(c) Middle level management (d) All of the above

103. Controlling function brings the management cycle back to the

(a) Organising function (b) Directing function

(c) Planning function (d) None of the above

104. Deviations are said to be positive in nature when

(a) Planned performance is more than the actual performance

(b) Actual performance is more than the planned performance
(c) Both planned and actual performances are same
(d) None of the above
105. Which of the following statements is true with respect to controlling function?

(a) It is a forward looking function.

(b) Is a backward looking function.
(c) Both (a) and (b)
(d) None of the above
106. Which of the following is a technique used for measuring actual performance?

(a) Random sampling (b) Personal observation

 (c) Performance reports (d) All of the above

107. The comparison of actual performance with the planned performance becomes easier if the standards are set in

(a) Qualitative terms (b) Quantitative terms

(c) Either of the above (d) None of the above

108. This concept of Control Management is based on the belief that if you try to control everything, you may end up controlling
nothing.

(a) Critical point control (b) Key result areas

(c) Management by exception (d) Deviations

109. When the deviations between the actual performance and the planned performance are within the limits

(a) A limited corrective action is required

(b) No corrective action is required
(c) A major corrective action is required
(d) None of the above
110. The need for the controlling function is felt in

(a) Business organisations (b) Political organisations

(c) Social organisations (d) All of the above

111. Controlling is known as a backward-looking function because

(a) It relates to future course of action.

(b) It is like a post-mortem of the past activities
(c) To find out deviation, it aims at improving future performance.
(d) All of the above
112. Reducing the workers, absenteeism in a factory by 20% is an example of

(a) Quantitative standard (b) Qualitative standard

(c) Deviation (d) None of the above

113. Which of the following is not a characteristic of directing?

(a) Directing initiate action (b) It is a continuous process

(c) Flows from top to bottom (d) Ensuring order & discipline
114. Which of the following is the elements of directing?

(a) Supervision (b) Motivation

(c) Leadership (d) All of the above

115. _______ is the process of guiding the efforts of employees to accomplish the desired goal.

(a) Supervision (b) Directing

(c) Controlling (d) Motivating

116. Which of the following is not a non-financial incentive?

(a) Status (b) Job enrichment

(c) Bonus (d) Employee progress

117. Which of the following is not a feature of motivation?

(a) It is an integral feeling (b) Reduces absenteeism

(c) Complex process (d) Can be positive or negative

118. ________ is an example of esteem needs:-

(a) Status (b) Self-fulfillment

(c) Hunger (d) Pension

119. __________ is the process of influencing the behaviour of people making them strive voluntarily towards achievement of goals

(a) Motivation (b) Communication

(c) Leadership (d) Directing

120. Informal communication is also called:-

(a) Wheel communication (b) Grapevine

 (c) Verbal (d) Visual

121. Controlling function finds out how far __________ deviates from standards.

(a) Actual performance (b) Improvement

(c) Corrective actions (d) Cost

122. Which of the following is not a limitation of controlling?

(a) Little control on external factors (b) Costly affair

(c) Ensuring order & discipline (d) Difficulty in setting quantitative standards

123. “Planning is theoretical whereas controlling is practical”

(a) True (b) False

(c) Cannot say ( d) Maybe true or false

124. Which of the following is not a process of controlling?

(a) Analyzing deviations (b) Integrates employees efforts

(c) Taking corrective measures (d) Setting performance standards

125. Which of the following is a traditional technique of managerial control?

(a) Personal observation (b) Breakeven analysis

(c) Budgetary control (d) All of the above

126. Remedial actions taken to prevent deviation in future is called

(a) Measurement of actual performance (b) Taking corrective actions

(c) Analyzing deviations (d) Setting performance standards