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

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Please refer to MCQ Questions Chapter 1 Nature and Significance of Management Class 12 Business Studies with answers provided below. These multiple-choice questions have been developed based on the latest NCERT book for class 12 Business Studies issued for the current academic year. We have provided MCQ Questions for Class 12 Business Studies for all chapters on our website. Students should learn the objective based questions for Chapter 1 Nature and Significance of Management in Class 12 Business Studies provided below to get more marks in exams.

Chapter 1 Nature and Significance of Management MCQ Questions

Please refer to the following Chapter 1 Nature and Significance of Management MCQ Questions Class 12 Business Studies with solutions for all important topics in the chapter.

Question. 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

Question. In which of the following occupation, no minimum qualification is prescribed?
(a) Manager
(b) Doctor
(c) Lawyer
(d) Chartered Accountant

Question. Foreman will be considered under which level of management?
(a) Lower-level
(b) Middle – level
(c) Top-level
(d) None of these

Question. 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 practicing managers to be a member of a professional association.

Question. Policy formulation is the function of
(a) Top level Managers
(b) Middle level Managers
(c) Operational Management
(d) None of the above

Question. Match the objective of management in Column I with their respective definition in ColumnII:

Column I	Column II
a) Survival	i) Increase in the number of employees,the number of products or increase in the capital investment,etc
b) Profit	ii) A Vital Incentive for the continued successful operation of the enterprise
c) Growth	iii)An organisation must earn enough revenues to cover costs.

(a) i), ii), iii)
(b) ii),i), iii)
(c) ii), iii), i)
(d) i), iii), ii)

Question. ‘Corrective action’ comes under which function of management?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

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

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

Question. Managing Director will be considered under which level of management?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Question. 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

Question. ‘Doing the task with minimum cost” name the term associated with management?
(a) Efficiency
(b) Effective
(c) Both
(d) Management

Question. Ravi works as a production manager in Rosy private Limited. He has been given the task of getting 10000 units of hand woven table mats manufactured at the cost of ₹150 per unit, within 100 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 100 days even at higher cost per unit
(c) The cost of production is less than ₹150 per unit
(d) All of the above

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

Question. Suzy Enterprises Limited is planning to increase its sales by 25% in the next year. 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

Question. The objective of the Marketing Department of ‘KOTEX Ltd.’ is to increase sales by 10 per cent by offering discounts. But, the finance department may not approve of such discounts as it means loss of revenue. These kinds of conflict arise in organizations because each department performing activities in isolation from others and barriers between departments are becoming more rigid. Identify the point of importance of coordination to which this case is related:
(a) Growth in size
(b) Functional differentiation
(c) Specialization
(d) None of these

Question. Keeping in view ,the changes in the consumer demands and preferences,Royal 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

Question. Which degree is compulsory to become a manager?
(a) B.B.A.
(b) M.Com.
(c) M.B.A.
(d) No compulsion of degree.

Question. Match the concept of management in Column I with their respective meaning in II;

Column I	Column II
a) Effectiveness	i) doing the task correctly with minimum cost
b) Efficiency	ii) finishing the task on time
c) Process	iii) The primary functions or activities that management performs to get.

(a) i), ii), iii)
(b) ii), i), iii)
(c) iii), ii), i)
(d) i), iii), ii)

Question. Goal setting is the function of
(a) CEO
(b) Foreman
(c) Supervisor
(d) Superintendent

Question. Management is essential for the organizations which are
(a) Non-profit organizations
(b) Service organizations
(c) Social organizations
(d) All of the above

Question.”Management has to adapt itself according to the changing environment”.Which characteristic of management is highlighted in the above statement?
(a)Continuous process 
(b)Dynamic function
(c)Group activity
(d)Goal oriented

Question. When an organization is concerned about personal growth and development of employees which management objective is highlighted?
(a) Organisational objective
(b) Personal objective
(c) Social objective
(d) Growth objective

Question. Radhika is engaged in manufacturing earthen coolers by using environmental friendly methods of productions. Which management objective is discussed?
(a) Social objective
(b) Organisational objective
(c) Individual objective
(d) Economic objective

Question.This concept provides the requisite amount,quality ,timing and sequence of efforts which ensures that planned objectives are achieved with a minimum of conflict.Identify the concept identified in the above stated line.
(a) Cooperation
(b) Management
(c) Coordination
(d) Planning

Question. Sachin the director of Apex ltd.is engaged in manufacturing furniture. He decided to keep one-third seats reserved for specially disadvantaged section of society. Which objective of management is discussed here?
(a) Individual objective
(b) Social objective
(c) Organisational objective
(d) Personal objective

Question.”Management cannot be seen but its presence can be felt”.Which characteristic of management is highlighted in the above statement?
(a) Group activity 
(b) Intangible force
(c) Dynamic function
(d) Continuous process

Question. Which level of management is responsible for the welfare and survival of organization?
(a) Middle level
(b) Supervisory level
(c) Operational level
(d) Top level 

Question. Which level of management is concerned to develop cooperation with other departments for smooth functioning of organisation?
(a) Top level
(b) Supervisory level
(c) Middle level
(d) Operational level 

Question.Management consists of 3 dimensions-management of work,people and operations.Which characteristic of management is being highlighted here?
(a) Goal oriented 
(b) Dynamic
(c) Multi dimensional
(d) Pervasive

Question. It is not a separate fuction of management but its very essence.Identify it.

(a) Cooperation
(b) Efficiency
(c) Coordination
(d) Effectiveness 

Question.”It involves leading, influencing and motivating the employees to perform the assigned task”, highlighted one of the function of management. Identify
(a) Staffing
(b) Planning
(c) Directing
(d) Controlling 

Question. Which level of management formulates overall organizational goals and strategies for their achievement?
(a) Middle level
(b) Operational level
(c) Top level
(d) Supervisory level 

Question. Highlight the feature of management depicted by the image given here

(a) Group activity
(b) Goal oriented
(c) Pervasive
(d) Dynamic

Question. To exploit fully the growth potential of the organization management is talking about which objective?
(a) Social objective
(b) Personal objective
(c) Organisational objective
(d) Economic objective

Question. In order to survive an organization must earn enough revenue to cover cost. Which management objective is highlighted?
(a) Organistional objective
(b) Growth objective
(c) Social objective
(d) Individual objective

Question. …………….. is the force that binds all the other functions of management
(a) Planning
(b) Organising
(c) Span of Management
(d) Coordination

Question. ‘The aim of a manager is to reduce costs and increase productivity’. Identify the importance of management mentioned in the given Statement.
(a) Management increases efficiency.
(b) Management creates a dynamic organisation.
(c) Management helps in achieving personal objectives.
(d) Management helps in achieving group goals.

Question. ________ is not an element of delegation. 
(a) Authority
(b) Accountability
(c) Efficiency
(d) Responsibility

Question. Vijay works in a bank. The bank is about to lose its position as the leading bank in the banking industry. Vijay was assigned to find out the reason behind poor performance of the bank. He analysed the situation and came out with the conclusion that there was lack of integration of efforts made by various departments like human resource, information technology and customer relationship. Identify the Managerial concept discussed in the about case.
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency

Question. Foremen and supervisors fall in the category of
(a) Top level management
(b) Operational Management
(c) Middle Level Management
(d) None of the above

Question. …………….. is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
(a) Planning
(b) Management
(c) Organising
(d) Development

Question. Which one of the following is not a characteristic of management
(a) Management is a goal-oriented process
(b) Management is multidimensional
(c) Management is profit oriented
(d) Management is intangible

Question. ‘An organisation has multiple objectives to serve the purpose of the different groups that constitute it’, which importance of management is mentioned here? (Choose the correct alternative)
(a) Management helps in achieving group goals.
(b) Management helps in development of society.
(c) Management creates a dynamic organisation.
(d) Management helps in achieving personal objectives.

Question. Which of the following functions of Management is concerned with finding the right people for the right Job.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling

Question. Directors of Atul Limited assigned the task of implementing the plans and policies framed by the board to all the department heads. Department heads appointed supervisors, superintendent, executives, etc) so that work can be assigned to workers as per the plan. Supervisors kept a check on the workers as per the plan. Identify the feature of management highlighted in above lines.
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function

Question. Which of the following is not a part of importance of management-“Management helps in the development of society?”
(a) It creates employment opportunities
(b) It provides good quality products and services
(c) It adopts new technology for the greater good of the people
(d) None of the above.

Question. At times business may concentrate more on producing goods with fewer resources I.e., cutting down cost but not achieving the target production. Consequently, the goods do not reach the market and hence the demand for them declines and competitors enter the market. This is a case of:
(a) Being efficient but not effective
(b) Being effective but not efficient
(c) Being both effective and efficient
(d) All of these

Question. To which level of management do managers of first line belongs?
(a) Lower level
(b) Top level
(c) Middle level
(d) None of the above

Question. Coordination is
(a) A Function of management
(b) The essence of management
(c) An objective of management
(d) None of the above

Question. The General Manager of ‘Uthranchalwood put ltd called a meeting of production manager and Sales manager both of his company. He explained to them that both of these departments are the base of company’s success. Therefore it is necessary for both of them to work with coordination. Also, they were told whatever decision they were taken for their respective departments would affect others; they must give its information to them immediately. They did the same. As a result of this, there never arouse a situation in the company, when the sales orders could not be compiled with because of the shortage of goods. Identify the characteristic of coordination in the paragraph given below
(a) Coordination is the continuous process
(b) Coordination ensures unity of action
(c) Coordination is a deliberate function
(d) Coordination is an all pervasive action

Question. Your grandfather has retired as the director of a manufacturing company. At which level of management was he working
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above

Question. The words cooperation and coordination are
(a) Opposite
(b) Synonym
(c) Complementary 
(d) All of these

Question. “McDonalds the fast-food giant made major changes in its menu to be able to survive in the Indian market. “ Identify the characteristic of management highlighted in the above statement
(a) Management is a goal-oriented process
(b) Management is a group activity
(c) Management is multi-dimensional
(d) Management is a dynamic function

Question. Which of the following statement best explains the “Management is an Art”?
(a) Two managers deal with the same problem differently.
(b) Management has drawn its knowledge from other disciplines also.
(c) No formal qualification is required for the appointment as the manager in a company.
(d) Outcomes of managerial actions cannot be predicted accurately.

Question. Assertion(A):Satisfaction of personnel objectives is very important in an organisation.
Reason(R): Employees are one of the most valuable resources for an organization,Alternatives
(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. Assertion(A):Management is an exact science.
Reason(R): It is based on human behavior .It is neither precise nor as comprehensive as the pure 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. Assertion(A):Social objective of managemen tinvolve creation of benefits or economic values to the society.
Reason(R):Now a days,profit maximization is the only objective of management alternatives:
(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. Assertion(A):Management principles are developed through observation and repeated experimentation.
Reason(R):Outcomes of management principles can be predicted accurately .Alternatives:
(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.

Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case:
(a) Both Assertion (A) and Reason (R) are true.
(b) Both Assertion (A) and Reason (R) are false.
(c) Assertion (A) is true and Reason (R) is false.
(d) Assertion (A) is false and Reason(R) is true.

Question. Assertion (A), Coordination is not an exclusive function of the top management.
Reason (R), Coordination is the responsibility of all managers-top, middle and operational levels.

Question. Assertion (A). Planning cannot prevent problems.
Reason (R).Planning can only predict the problems and prepare contingency plans to deal with then if and when they occur.

Question. Assertion (A), Coordination is an all pervasive function.
Reason(R). Coordination is required at all levels of management due to the interdependent nature of activities of

Question. Assertion (A): There is a kind of cost-benefit analysis involved and the relationship between inputs and outputs.
Reason (R): If by using less resources (i.e., the inputs) more benefits are derived (ie., the outputs) then effectiveness has increased.

Question. Assertion (A). Management is a dynamic function.
Reason (R). An organisation interacts with ins external mvironment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and Its goals according to the needs of the environment.

Question. Assertion (A). Management is a series of continuous interrelated functions.
Reason (R). The process of management is a series of continuous, interrelated, but separate functions (planning, organising, directing, staffing and controlling). These functions are simultaneously performed by all managers all the time.

Question. Assertion (A), Management is a tangible force and its presence can be felt in the way the organization functions.
Reason (R). The effect of management is noticeable in an organisation where targets are met according to plan, employees are happy and satisfied, and there is orderliness instead of chaos.

Question. Assertion (A), Management is a full-fledged profession.
Reason (R), Management meets the exact criteria of a profession.

Fill In The Blanks

Question. Co-ordination is a ___________ function of management 

Question. Co-ordination act as a ___________ force between various departments to ensure unity of action. 

Question. In order to survive an organization must earn enough revenues to cover ___________ . 

Question. Management is the process of getting things done with the aim of achieving goals ___________ and ___________ .

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

Question. Coordination is called the___________ of management. 

Question. The overall organization goals and strategies of organization are formulated by ___________ level of management. 

Question. Divisional heads, department heads belongs to ___________ level of management

Question. Management increases ___________ by reducing costs and increasing productivity.

Question. The operational level managers are also termed as ___________ . 

Question. Top level of management is responsible for ___________ and___________ of the organization.

Question. The Multidimensional characteristics of management links work, people and___________ .

Question. Scientific principles are developed through ___________ and___________  .

Question. Management is a (n)___________ force that cannot be seen but its presence can be felt.

Question. Priya is using environmental friendly methods of production.She is trying to achieve ___________ objective of management. 

True/ False :

Question. Cooperation in the absence of coordination may lead to wasted effort. 

Question. Scientific management principles are universally applicable.

Question. The main objective of any profession is to serve the society as a whole.

Question. Middle level of management motivate their team to achieve desired goals.

Question. Coordination is the force that binds all the other functions of management.

Question. Management is not a multidimensional activity.

Question. The top level of management are responsible for welfare and survival of organization.

Question. Management principles are derived after observations and experimentations under controlled condition.

Question. Specialization arises out of complexities of modern technology and diversity of task to be performed.

Question. Coordination is the separate function of management. 

Question. The top level of management are not responsible for all the activity of business and its impact on society.

Question. Efficiency means doing the task correctly and with maximum cost.

Question. The basic objective of any profession is to earn money.

Question. Coordination involves synchronization of the different actions of the various units of the organization 

Question. Art does not involve the creative practice of existing theoretical knowledge.

Question. Coordination is not a separate function of management.

Question. Through motivation and leadership management helps the individual to develop team spirit.

Match The Following

Question. Match the columns by identifying the levels of management :

1. They interact with the actual workforce	a) top level of management
2. Responsible for all the activities of business and its impact on society	b) Middle level of management
	c) Operational level of management

Question. Match the columns for identifying the management functions

1. It involves monitoring organization performance towards attainment of organizational goals	a) Planning
2. Deciding in advance what to do and how to do	b) Controlling
	c) Directing

Question. Match the columns to identify the importance of coordination

1. Functional differentiation	a) When all departments have their own objectives, policies and their own style of working
2. Specialisation	b) When organization is performing on large scale and more people are employed
	c) When more complexities of modern technology and diversity of tasks is to be performed

Question. Match the columns on the basis of importance of management.

1. Creates dynamic organisation	a) The task of the mangers is to reduce the cost and to increase the productivity
2. Increases efficiency	b) Job of the manager is to give common direction to individual efforts
	c) Organization have to work in an environment which is constantly changing

Question. Match the columns 0n the basis of nature of management

1. Principles are based on observation and experimentation	a) Management as an art
2. Principles are based on practice and creativity	b) Management as a profession
	c) Management as a science

Question. Match the columns on the basis of objectives of management

1. Survival	a) Essential for covering cost and risks of the business
2. Profit	b) A business needs to add to its prospects in the long run
	c) An organization must have enough revenues to cover cost

Question. Match the columns to identify the importance of coordination

1. Growth in size	a) When all departments have their own objectives, policies and their own style of working
2. Functional differentiation	b) When organization is performing on large scale and more people are employed
	c) When more complexities of modern technology and diversity of tasks is to be performed

Question. Match the columns on the basis of nature of management

1. Management as science	a) Professional association
2. Management as a profession	b) Personalized application
	c) Systematized body of knowledge
	d) Existence of theoretical knowledge

Question. Match the columns on the basis of importance of management

1. Development of society	a) The task of the mangers is to reduce the cost and to increase the productivity
2. Creates dynamic organisation	b) Job of the manager is to give common direction to individual efforts
	c) Helps to provide quality production and creates employment opportunities

Question. Match the columns on the basis of objectives of management

1. Growth	a) Essential for covering cost and risks of the business
2. Profit	b) An organization must have enough revenues to cover cost
	c) A business needs to add to its prospects in the long run

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