Class 12 Business Studies Chapter 1 Nature and Significance of Management MCQ Questions with Answers

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Nature and Significance of Management Class 12 MCQ Questions with Answers

Business Studies Class 12 MCQ with answers are given here for Nature and Significance of Management. These MCQs are based on the latest CBSE board syllabus and relate to the latest Class 12 Business Studies syllabus. By Solving these Class 12 MCQ, you will be able to analyze all of the concepts quickly in the chapter and get ready for the Class 12 Annual exam.

Learn Class 12 Nature and Significance of Management MCQ PDF with answers according to the latest CBSE and NCERT syllabus. Students should prepare for the examination by solving CBSE Class 12 Business Studies MCQ with answers given below.

Question 1. Whose speciality happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these

Question 2. Under what function of management does the determining of structure of roles fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question 3. Which degree is essential to become a manager?
(a) B.Com.
(b) M.Com.
(c) M.B.A.
(d) None of these

Question 4. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Question 5. How does a manager want to achieve his objectives?
(a) Efficiently
(b) Effectively
(c) Efficiently and effectively
(d) None of the above

Question 6. To which level of management do the managers of first-line belong?
(a) Lower-level
(b) Middle – level
(c) Top-level
(d) None of these

Question 7. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Question 8. What type of power management is?
(a) Visible
(b) Invisible
(c) Separate
(d) Collective

Question 9. By evaluating results what does management try to find out and then takes corrective action.
(a) Profit
(b) Loss
(c) Deviations
(d) None of these

Question 10. “Art is bringing about of a desired result through application of skill”. Whose statement is this?
(a) T.L. Massie
(b) G.R. Terry
(c) Prof. Dalton E. McFarland
(d) None of these

Question 11. To what function of management is coordination associated with?
(a) Planning
(b) Organising
(c) Staffing, directing and controlling
(d) All of these

Question 12. ‘Thinking before doing’, under which function of management is this performed?
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question 13. In the context of business what does research refer to?
(a) Finding out new products
(b) Finding out new markets
(c) Finding out new methods of distribution
(d) All the above

Question 14. A ________ chain is formed from the top-level management to the lower-level management.
(a) Vertical
(b) Thick
(c) Scalar
(d) Small

Question 15. Management is:
(a) An Activity
(b) A process
(c) A Tradition
(d) An Illusion

Question 16. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question 17. Which of the following has formalised methods of acquiring training and experience?
(a) Management
(b) Law
(c) Medical
(d) All of these

Question 18. Management is important because:
(a) It helps in achieving group goals
(b) It helps in development of society
(c) It increases efficiency
(d) All of the above

Question 19. Who said that management is a soft science?
(a) Ernest Dale
(b) G.R. Terry
(c) Keynes
(d) Fayol

Question 20. For which of following minimum qualification has not been prescribed?
(a) Manager
(b) Doctor
(c) Lawyer
(d) Chartered Accountant

Question 21. What is the name of the management institute established in India?
(a) IIT
(b) AIMA
(c) IIM
(d) ICICI

Question 22. Coordination is needed where the efforts of ________ persons are required?
(a) One person
(b) Two persons
(c) Three persons
(d) Many persons

Question 23. The principles of Physics and Chemistry are stable. What is your opinion about management?
(a) Stable
(b) Unstable
(c) No principle is available
(d) None of these

Question 24. Management may be called which of the following science?
(a) Perfect Science
(b) Physics
(c) Applied Science
(d) Chemistry

Question 25. The words cooperation and coordination are ________ .
(a) Opposite
(b) Synonym
(c) Complementary
(d) All the above

Question 26. Management is a/an
(a) Art
(b) Science
(c) Profession
(d) All of the above

Question 27. Levels of management in an organisation serve as a ________ line among the different managerial posts.
(a) Strong
(b) Dividing
(c) Weak
(d) Straight

Question 28. At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Question 29. Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Question 30. What, out of the following, does not fall under directing?
(a) Planning
(b) Supervision
(c) Leadership
(d) Motivation

Question 31. What is that area called where the non-managerial members work?
(a) Shopping Area
(b) Showroom Area
(c) Platform Area
(d) Factory Area

Question 32. Under what function of management does the work of filling posts with people fall?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

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Question 33. Name the country in which management is accepted as profession.
(a) America
(b) Japan
(c) India
(d) America and Japan

Question 34. Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

Question 35. “Coordination is not a separate function of management but it happens to be the final truth of all functions.” In what context this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of these

Question 36. What is the focus of attention when a manager is busy in planning activity?
(a) Coordination
(b) Directing
(c) Controlling
(d) Staffing

Question 37. Cooperation means ________ .
(a) Desire to work jointly
(b) Determining Activities
(c) Both the above
(d) None of the above

Question 38. What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Question 39. What information do we get about coordination through the medium of interdependence of various processes?
(a) Meaning
(b) Characteristics
(c) Need
(d) None of these

Question 40. Which of the following have no representative professional organisations available?
(a) Law
(b) Management
(c) Medical
(d) Accountancy

Question 41. What happens when the management of an organisation gets weakened?
(a) Organisation progresses
(b) Production increases
(c) Profit increases
(d) Organisation faces heavy loss

Question 42: Name the process that synchronises the activities of different departments.
(a) Coordination
(b) Staffing
(c) Production
(d) Finance

Question 43. What contributes to the elimination of complexities of large-scale organisations?
(a) Planning
(b) Directing
(c) Controlling
(d) Coordination

Question 44. Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of management
(d) None of these

Question 45: Recruitment and selection of the personnel, Identify the functions of the management
(a) Staffing
(b) Directing
(c) Controlling
(d) Co-Ordination

Question 46: Coordination is
(a) Function of management
(b) The essence of management
(c) an objective of management
(d) none of the above

Question 47: Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of
(d) None of these

Question 48. In order to be successful an organisation must change its goals according to the needs of environment. Which characteristic of management is highlighted here
(a) Dynamic
(b) Intangible Force
(c) Universal
(d) All the options

Question 49: What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Question 50. Which are the objectives of management
(a) Growth
(b) Survival
(c) Profit
(d) All the options

Question 51. Management is multi-dimensional. Which is the dimensions of it
(a) Work 
(b) Work and People
(c) People
(d) None of the options

Question 52. “Through motivation and leadership, the management helps individuals to develop team spirit, cooperation and commitment to group success” Identify the point of importance of management highlighted above.
a) Management helps in achieving group goals
b) Management increases efficiency
c) Management creates a dynamic organisation
d) Management helps in achieving personal objectives

Question 53. The following is not an objective of management
(a) Earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Question 54. The meaning of coordination is to balance its various activities are
(a) All the options
(b) Sale & Purchase
(c) Production
(d) Finance

Question 55. Which of the following proves that management is not an exact science?
a) Management has its own theory and principles that have developed over a period of time, but it also draws on other disciplines such as economics, sociology, psychology and mathematics. Like any other organized activity, management has its own vocabulary of terms and concepts.
b) Since management deals with human beings and human behaviour, the outcomes of these experiments are not capable of being accurately predicted or replicated.
c) The application and use of principles of management is not universal. They have to be modified according to a given situation.
d) Both b & c

Question 56. “Unlike professions such as medicine and Law which require a practicing doctor or lawyer to possess valid degrees. Nowhere in the world it is mandatory for a manager to possess any such specific degree.” Identify the characteristic of profession that management does not fulfill in the statement being discussed above.
a) Ethical code of conduct
b) Restricted entry
c) Professional association
d) Service motive

Question 57. Radhey ltd. is diversifying its product lines. What organisational objective it is trying to achieve?
a) Survival
b) Profit
c) Growth
d) All of above

Question 58. “The aim of manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling the activities of the organisation.” Identify the point of importance of management highlighted above”
a) Management helps in achieving group goals
b) Management increases efficiency
c) Management creates a dynamic organisation
d) Management helps in achieving personal objectives

Question 59. Assertion: The job of the lower level is complex and stressful, demanding, long hours and commitment to the organisation.
Reason: Lower level manager interacts with the actual work force, pass on the instructions and supervise their work, maintain quality of products, maintain safety standards and so on.
a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c) Assertion (A)is true but Reason (R)is false
d) Assertion (A)is false but Reason(R)is true

Question 60. Assertion(A): Management is an inexact science .
Reason(R): It is based on human behaviour. It is neither precise nor as comprehensive as thepure science like physics or chemistry.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question 61. Assertion: Coordination is a voluntarily binding force between individuals and departments.
Reason: Coordination gives a direction to the willing spirit
a) Both Assertion (A) and Reason(R) are true and R is the correct explanation of A.
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c) Assertion (A)is true but Reason (R)is false
d) Assertion (A)is false but Reason(R)is true

Question 62. . Assertion (A): Successful Organisation need not follow a deliberate process, called management, to achieve its goals.
Reason(R): Management is the dynamic, life-giving element in every business. Without it, the resources of production remain resources and never become production.
a) Both Assertion (A) and Reason(R) are True and Reason ( R)is the correct explanation of Assertion(A).
b) Both Assertion (A) and Reason(R) are True , but Reason ( R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question 63. Assertion(A): In order to enter into a profession, one has to acquire an educational degree by clearing specified examination conducted by required institutes.
Reason(R): All professions are bound by a code of conduct which guides the behaviour of its members.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

True/False

Question 1. Directing takes place at every level of management.           

Question 2. Middle level managers set goals and objectives and make decisions about the direction of the organisation that affect everyone in the organisation.    

Question 3. Middle level management is responsible for setting and achieving objectives for the organisation.   

Question 4. Management is not an exact science because it fulfils principles of science fully in some situations and partly in others.       

Question 5. A professional manager can possess professional degree or vast experience in a specialised field of business operations.       

Question 6. Profession refers to the skills to be put into action for the achievement of a given task.     

Question 7. Co-operation in absence of co-ordination leads to waste of efforts.                  

Question 8. Every manager must be the member of professional body/association.           

Question 9. AIMA (All India Management Association) has a statutory backing.               

Question 10. Coordination without cooperation has not roots and cooperation without coordination bears no fruits.         

Question 11. Co-ordination without Co-operation may lead to dissatisfaction among employees.           

Question 12. Supervisors and foremen may both be considered first-line managers.        

Question 13. Old saying ‘Managers are born’ has been replaced by ‘Managers are made’.              

Question 14. Science is a well-defined body of knowledge which is learned intellectually with the motive to serve others.          

Question 15. Creation of job positions from the top to bottom is known as hierarchy of the management.         

Question 16. First-line supervisors are responsible for directing the day-to-day activities of operative employees.         

Question 17. Supervisory level managers are also known as divisional heads.       

Question 18. In order to be considered a manager, an individual must coordinate the work of others.          

Question 19. The top level of management is not responsible for all its activities of business and its impact on society.     

Question 20. First line managers are also known as top level managers.         

One Word

Question 1. ‘A manager applies scientific methods and body of knowledge to a given situation, an issue or a problem in his own unique manner.’ Which aspect of nature of management is being discussed here?

Question 2. Identify the nature of management when it is said to be a systematised body of knowledge that explains certain general truths.

Question 3. “The truth, managers are born has been replaced with managers are made.” What nature of management is highlighted here?

Question 4. Name the level of management which is engaged in overseeing the activities of the workers

Question 5. At which level of management does directing take place?

Question 6. Give one designation each of top and middle-level management?

Question 7. Name the level of management which is engaged in taking key decisions.

Question 8. Which level of management has the power to decide about the opening of new branch of a business?

Question 9. Identify the level of management at which the managers are responsible for implementing and controlling the plans and strategies of the organisation.

Question 10. Which level interprets and explains the policy decisions?

Question 11. At which level of management, the managers are responsible for the welfare and survival of the organisation?

Question 12. Mohan is working as Manager–Operations. In which managerial level is he working?

Question 13. Name the level of management which is engaged in selection of employees.

Question 14. Which level of management spends more time on planning as compared to other levels?

Question 15. Mr. Rounak, a director of Sunlight Bulbs Limited, gets involved in activities like procurement of raw material, production and dispatch of goods, employees discipline, etc. Name the level of management Mr Rounak belongs to.

Question 16. Name the level of management which is engaged in liaison with outside world.Question45. Name the level of management which is engaged in liaison with outside world.

Question 17. Which level of managers are responsible for coordination?

Question 18. Which level of manages are responsible for all the activities of first line managers?

Question 19. Which level is known as operative management in an organisation?

Question 20. Ritu is the manager of the northern division of a large corporate house. At what level does she work in the organization?

Fill in the blanks

Question 21. __________ is an activity which is necessary wherever there is a group of people working in an organisation.           

Question 22. Management has been defined as a process of getting things done with the aim of achieving goals __________ and __________.         

Question 23. Management is a/an __________ force that cannot be seen but its presence can be felt.                   

Question 24. Management is a ___________ function to have adapt itself to the changing environment.                     

Question 25. Management tries to achieve _____________ objectives by satisfying human needs.                           

Question 26. Management fulfills three basic objectives; organisational, __________ and personnel.                             

Question 27. The effect of management is ______in an organization where targets are met according to plans.           

Question 28. In order to be successful, an organisation must __________ itself and its goals according to the needs of the environment.        

Question 29. Management as _______ creates cause and effect relationship.               

Question 30. An organisation is a collection of diverse _____ with different _____.           

Question 31. The chain of command consisting of a series of managerial position is called the ________ of management. 

Question 32. A saying ‘Managers are_____’ has been replaced by ‘Managers are_____’.           

Question 33. All _______ are based on well-defined body of knowledge.                       

Question 34. Supervisory/operational level is also known as _______ managers.                 

Question 35. Coordination act as a _______force between various departments to ensure unity of action.          

Question 36. Planning & organizing and Staffing & Directing are the respective jobs of ____ level and ____ level of management respectively.             

Question 37. Sharman uses methods of production which do not affect the environment. He is trying to achieve _______objective of management.        

Question 39. Provision of entertainment facility is an example of _______ objective.             

Question 40. Organizational objectives carry survival, _____ and ________ as three sub-objectives of management.         

Question 41. ______presupposes the existence of certain theoretical knowledge.              

Question 42. Top level of management is responsible for ______ and _____ of the organization.               

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