MCQ Questions Chapter 2 Principles of Management Class 12 Business Studies

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Please refer to MCQ Questions Chapter 2 Principles 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 2 Principles of Management in Class 12 Business Studies provided below to get more marks in exams.

Chapter 2 Principles of Management MCQ Questions

Please refer to the following Chapter 2 Principles of Management MCQ Questions Class 12 Business Studies with solutions for all important topics in the chapter.

Question. The principles are guidelines to action but do not provide ready made, straitjacket solutions to all managerial problems. This is so because .
(a) The applications of principles has to be changed as per requirements. ‘
(b) Real business situations are very complex and dynamic and are a result of many factors.
(c) Principles are like different tools serving different purposes, the manager has to decide which tool to use under what circumstances.
(d) All the above

Question. “She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship?
(a) Route Clerk
(b) Repair Boss
(c) Gang Boss
(d) Instruction Card Clerk

Question. Which of the following technique of scientific management violate‘s the principle of Equity?
(a) Functional foremanship
(b) Standardisation and Simplification of work ‘
(c) Differential Piece Wage System
(d) Method Study

Question. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case. Identify the principle of management highlighted above.
(a) Authority and Responsibility
(b) Discipline
(c) Equity
(d) Stability of Personnel

Question. The salesman of ABC ltd. could not achieve his sales target of 1000 units, on enquiry it was found that he was not allowed to take decision related to give discount or credit to any of his customer. State the principle of Management violated in this case.
(a) Principle of Division of work 
(b) Principle of order
(c) Principle of authority and responsibility
(d) None of these

Question. Match the technique of scientific management in Column I with their respective explanation in Column II:

a) Time study	(i) Each specialist is to be assigned work according to her/his qualities. For example, those With technical mastery, intelligence and grit may be given planning work. Those with energy and good health may be assigned execution work.
b) Method study	(ii) Devising new varieties instead of the existing ones and eliminating unnecessary diversity of products.
c) Functional foremanship	(iii) Fixing the standard time taken to perform a well-defined job so as to determine the number of workers to be employed; frame suitable incentive schemes and determine labour costs.
d) Standardisation and simplification of work	(iv) Finding out one best way of doing the job to minimise the cost of production and maximize the quality and satisfaction of the customer.

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

Question. A worker directly contacts the CEO of the company with a complaint regarding working conditions in the factory. Which of the following principles is being violated here?
(a) Unity of Command
(b) Discipline
(c) Scalar Chain
(d) Unity of Direction

Question. Mr Rajiv is the owner of “Laxmi Diary”.He is producing various milk products. He always tests various ways of producing different products and chooses the best and most economical way of production. He is also very particular about fixing a place for everything and he makes sure that all the employees are given a fixed place so that there is no wastage of time and delay in production Which technique of scientific management is applied by Mr. Rajiv?
(a) Motion study 
(b) Fatigue study
(c) Method study
(d) None of the above

Question. Which principle of HenryFayol is followed by him?
(a) Principle of equity 
(b) Principle of order
(c) Principle of discipline
(d) All of the above.

Question. The principles of management are said to be flexible as:
(a) They aim at influencing behavior of human beings.
(b) They are general guidelines to action, but do not provide readymade solutions to management problems.
(c) They can be modified by the manager when the situation so demands.
(d) Their application is dependent upon the prevailing situation at a particular point of time.

Question. Which principle of Taylor is applied here?
(a) Harmony not discord 
(b) Cooperation not individualism
(c) science not rule of thumb.
(d) None of the above

Question. “Management principles are not as rigid as principles of pure science.” Which of the following best describes the given statement?
(a) Management principles deal with human behaviour and, thus, are to be applied creatively given the demands of the situation.
(b) Principles of management are formed after research in work situations, which are technical in nature. .
(c) Principles of management contribute towards the development of management both as a science and as an art. .
(d) None of the above

Question. Match the technique of scientific management in Column I with their respective explanation in Column II:

a) Standardisation of work	(i) Separation of planning and execution functions
b) Simplification of work	(ii) Setting benchmarks for every business activity which must be adhered to during production
c) Method study	(iii) Eliminating superfluous varieties, sizes and dimensions.
d) Functional foremanship	(iv) Minimising the cost of production and maximise the quality and satisfaction of the customer

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

Question. According to this principle of management, there should be obedience to organisational rules and contract of employment, clear and fair decisions and judicious application of penalties which are necessary for the working of the organisation. The principle of management referred to above is:
(a) Authority and Responsibility
(b) Discipline
(c) Unity of Command
(d) Subordination of Individual Interest to General Interest

Question. Match the technique of scientific management in Column I with their respective explanation in Column II:

a) Method Study	(i) To reduce a given line or product to fixed types, sizes and characteristic
b) Time Study	(ii) Devising new varieties of the existing ones
c) Standardisation of work	(iii) To find out one best way of doing the job
d) Simplification of work	(iv) To determine the number of workers to be employed; frame suitable incentive schemes and determine labour costs.

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

Question. is an extension of the principle of division of work and specialization to the shop floor; and it violates the principle of Unity of command.
(a) Cooperation, not individualism
(b) Functional foremanship
(c) Unity of Direction
(d) Standardisation and Simplification of work

Question. Mr Mukesh used to manufacture shoes by employing labour who were easily available. When his son after completion is MBA joined the business. He analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.Which technique of scientific management is used by his son.
(a) Fatigue study 
(b) Motion study
(c) Method study
(d) Work study

Question. What is the objective of that technique?
(a) Finding the best way of doing thing
(b) Finding the rest interval
(c) Finding the minimum cost
(d) All of the above.

Question. Same battery can be used in different mobile phones of a particular brand. This is an example of which of the following techniques of scientific management?
(a) Standardisation of work
(c) Simplification of work
(b) Method Study
(d) Functional Foremanship

Question. Principles of Taylor and Fayol are mutually complementary. One believed that the management should share the gain with the workers while the other suggested that employee’s compensation should depend upon the earning capacity of the company and should give them a reasonable standard of living. Which principle of Fayol is applied here?
(a) Remuneration (c) Equity
(b) Discipline
(c) Principle of discipline
(d) Esprit the corps

Question. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W. Taylor?
(a) It implies change of attitude.
(b) The management and workers should not play the game of one upmanship.
(c) Both management and workers require each other.
(d) Workers should be paid more wages.

Question. Sanak and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. The principle of management followed by Wales Limited is.
(a) Authority and Responsibility
(b) Discipline
(c) Equity
(d) Stability of Personnel

Question. Manager of ABC ltd. does not allocate work as per the capability of workers.Which principle is violated by them.
(a) Principle of equity 
(b) Principle of discipline
(c) Principle of order
(d) Principle of Division of work

Question. Suraj was engaged in the business of carpet making. Since company was making handmade carpet as well as machine made carpet. There were lot of overlapping of activities, so the Production manager advised there should be two separate division for both of them. Where in each division should have its own incharge plans and execution. Identify the principle of management insisted by production Manager.
(a) Unity of command 
(b) Unity of direction
(c) order
(d) Equity

Question. Match the principle of management in Column I with their respective explanation in Column II:

a) Scalar chain	(i) When no division of the company has a separate plan of action.
b) Subordination of individual interest to general interest	(ii) When a manager awards contract for supply of raw material to a particular party, which happens to be owned by his relative ignoring other parties, who can supply the same at a cheaper rate.
c) Unity of direction	(iii) When a subordinate habitually contacts higher authorities in the company by passing his/her immediate superior
d) Equity	(iv) When the manager grants one month medical leave to a supervisor with pay and only one week medical leave to accountant.

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

Question. According to Fayol, discipline requires .
(a) Good superiors at all levels
(b) clear and fair agreements
(c) Judicious application of penalties
(d) All of these

Question. “The principles of management are not rigid prescriptions, which have to be followed absolutely.” Which of the following best describes the given statement?
(a) Management principles aim at influencing behaviour of human beings.
(b) Management principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.
(c) Management principles are flexible and can be modified by the manager when the situation so demands.
(d) None of the above.

Question. Mr. Malhotra, Finance manager of ABC ltd. Applied for leave to attend a family function in Amritsar. The director of the company requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Malhotra immediately agreed and cancelled his trip as he thought attending meeting is more import for company’s benefit. Which principle of Fayol is applied by Mr. Malhotra?
(a) Principle of subordination of individual interest to general interest.
(b) Principle of equity
(c) Principle of order
(d) Principle of Discipline.

Question. The application of principles has to be changed as per requirements. For example, employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include contribution of the employee, paying capacity of the employer and also prevailing wage rate for the occupation under consideration. Identify the nature of principles of management highlighted above.
(a) General Guidelines
(b) Flexible
(c) Mainly Behavioral
(d) Contingent

Question. In an organisation, each person should be scientifically selected. Then work assigned should suit his physical, mental and intellectual capabilities. To increase efficiency, they should be given the required training. Efficient employees would produce more and earn more. Which of the following principle of management is highlighted above?
(a) Science, not rule of thumb
(b) Division of work.
(c) Development of each and every person to his/her greatest efficiency and prosperity.
(d) Remuneration of employees.

Question. The technique in which task of supervision is divided into several specialised functions and each function is entrusted to a specialist foremen is:
(a) Standardisation
(b) Differential piece wage system
(c) Simplification
(d) Functional Foremhip .

Question. Which of the following is not the part of work study –
(a)method study
(b) motion study
(c)time study
(d) functional foremhip 

Question. Which principle is an extension of harmony not discord:
(a) cooperation not individualism
(b) eSpirit de Corps
(c) initiative
(d) Discipline

Question. violation of Principle of Esprit de Corps leads to –
(a) minimising labour turnover
(b) sales turnover
(c) need for using penalties
(d) disorder

Question. Which foreman is keeping the machinery and tools ready for operation by workers:
(a)repair Boss
(b) gang Boss
(c)speed boss
(d)inspector 

Question. Principles of management cannot be
(a).Defined
(b) Applied anywhere.
(c) Tested in Laboratories
(d) Part of Business .

Question. “One head One plan” is concerned with the following principle of Fayol
(a) Unity of command
(b) Unity of Direction
(c) Fair remuneration
(d) Division of work .

Question. The principle which states that there should be good supervisors at all levels for smooth and systematic working of an organisation is:
(a) Equity
(b) Initiative
(c) Discipline
(d) Order .

Question. This principle emphasise kindliness and justice in the behaviour of managers towards workers:
(a)Equity
(b)Order
(c)Espirit de Corps
(d) Initiative .

Question. Taylor focussed his attention on
(a) Shop level
(b) Top level
(c) Middle level
(d) Administrative level .

Question: Identify the technique of scientific management when specialists supervise each worker
(a) Functional Foremanship
(b) Method Study
(c) Motion Study
(d) Time study

Question: Which principle of management discuss about route clerk and gang boss?
(a) Equity
(b) Order
(c) Functional Foremanship
(d) Motion study.

Question: Why is it said that principles of management are flexible
(a) Because they can be modified
(b) Because they can be Fixed
(c) Because they can be modified and Because they can be Fixed
(d) None of the options

Question: Who gave 14 general principles of Management
(a) Henri Fayol
(b) F.W.Taylor
(c) Harold Koontz
(d) Gilbreth

Question: Principle of Order is concerned with
(a) Giving order to employees
(b) Orderly arrangements of various resources
(c) Receiving order from top level
(d) None of the above. 

Question: Taylors book Principles of Scientific Management was published
(a) 1911
(b) 1912
(c) 1914
(d) 1915

Question: Which is the techniques of scientific work
(a) Fatigue study
(b) Time study
(c) Motion study
(d) All the options 

Question: Who is known as father of General Management?
(a) Henry Fayol
(b) Gilberth
(c) F W Taylor
(d) Harold Koontz.

Question. Aqualife Ltd. has decided to become the market leader in selling water bottles. The company decides to take care of all the departments. The top management decides to set standards for all the business activities right from the purchase of raw material to manufacturing and packaging of the water bottles. Which technique of scientific management is
used here?
(a) Simplification
(b) Standardisation
(c) Differential piece wage system
(d) Method study

Question. Principles of management are not …………….. . (Fill in the blank choosing the correct alternative)
(a) Universal
(b) Flexible
(c) Behavioural
(d) Absolute

Question. Management should find ‘one best way to perform a task’. Which technique of scientific management is defined in this sentence?
(a) Time study
(b) Motion study
(c) Fatigue study
(d) Method study

Question. Rahul, a manager decided that there will be separate departments for finance, marketing, production and sales in his company. By doing so he is following a principle of management. Which of the following principles of management is followed by Rahul in the given case?
(a) Division of work
(b) Equity
(c) Order
(d) Unity of direction

Question. ‘Principles of Management are not rigid prescriptions, which have to be followed absolutely’. Identify the nature of management principles discussed in the given statement.
(a) General Guidelines
(b) Universal
(c) Flexible
(d) Contingent

Question. ‘The application of Principles of management is dependent upon the prevailing situation at a particular point of time’. Identify the nature of management principles mentioned in the given statement. (Choose the correct alternative)
(a) Universal
(b) Flexible
(c) Contingent
(d) Mainly behavioural

Question. Match the Nature of principles of management in Column I with their respective Explanation in Column II.

Columm I	Columm II
a. Universal Applicability	(i) Principles of management are not rigid prescriptions.
b. Flexible	(ii) Principles of management are intended to apply to all types of organisations
c. General guidelines	(iii) Management principles do not provide readymade strait jacket solutions to all managerial problems.

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

Question. ‘Principles of management are at the core of management theory’. Which importance of principles of management is highlighted in the above statement. 
(a) Optimum utilisation of resources and effective administration
(b) Scientific divisions
(c) Meeting changing environment requirements
(d) Management training, education and research

Question. Which principle of Henri Fayol states that ‘there should be one and only one boss for every individual employee.
(a) Discipline
(b) Unity of command
(c) Unity of direction
(d) Division of work

Question. …………….. involves a change in the attitude of workers and management towards and another from competition to cooperation.
(a) Cooperation not individualism
(b) Mental revolution
(c) Unity of direction
(d) Unity of command

Question. 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

Question. What did Taylor want to standardise?
(a) Material
(b) Machine and tools
(c) Methods
(d) All of the above

Question. Sharing of gains with the workers is the objective of the principle:
(a) Harmony, not discord
(b) Science, Not rule of Thumb
(c) Cooperation, Not Individualism
(d) Development of each and every person to his or her greatest efficiency

Question. According to this principle of scientific management, “Scientific management has for its foundation the firm conviction that true interest of the management and workers are one and the same; the prosperity for the employer cannot exist for a long time unless it is accompanied by prosperity for the employees and vice versa.”
(a) Science, not rule of thumb
(b) Co-operation, not individualism
(c) Harmony, not discord
(d) All of the above

Question. Match the following by choosing the correct option

Column A	Column B
(i) Manager should replace ‘I’ with ‘We’ in all his conversations with workers	(a) Equity
(ii) Employees should not be transferred frequently	(b) Order
(iii) Right material should be placed at the right place	(c) Esprit de corps
(iv) No worker should be unduly favoured	(d) Stability of personnel

(a) (i)-(c); (ii)-(d); (iii)-(b); (iv)-(a)
(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(a); (ii)-(c); (iii)-(d); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b)

Question. Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?
(a) Time Study
(b) Method Study
(c) Fatigue Study
(d) Motion Study

In the given questions a statement of assertion followed by a statement of reason is given. Choose the correct answer out of the following choices.
(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 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) : Managerial Principles are guidelines for managerial action.
Reason (R): Values are not guidelines for human behaviour.

Question. .Assertion (A) : Management principles provides managers with useful insight into reality.
Reason (R): Management principles improve knowledge, ability and understanding of managers under various managerial situations.

Question. Assertion (A) : Technique of “Simplification of Work” eliminate superfluous verities. Sizes and dimensions of products.
Reason (R) Technique of “Simplification of work” reduced inventories, fuller utilisation of equipment and increased turnover to reduce cost.

Question. Assertion (A) : A principal refers to a statement which reflects the fundamental truth about some phenomenon based on cause and effect relationship.
Reason (R) Management principles are broad and general guidelines for decision marking and behaviour of managers.

Question. Assertion (A): Fayol suggested that employees in the organisation must be given an opportunity to take some initiative in making and execution a plan.
Reason (R): It dose not help to develop feeling of belongingness in the employees

Question. Assertion (A) : Taylor’s technique of functional formanship is based on fayol’s principle of division of work
Reason (R): Taylor advocated separation of planning and execution functions of a foreman through a planning and production in-charge under him. Each of the in-charge will have four personnel working under him according to their specialisation.

Question. .Assertion (A) : Taylor insists that each job performed in the organisation should be based on intuition and not on scientific enquiry.
Reason (R) Taylor insists that standard time for a job should be set up scientifically by performing time study in the organisation and then the day’s target should be fixed.

Question. Assertion (A): Management principal can not be applied differently under different conditions
Reason (R): Some changes can be made in application of principles according to the requirement of the company.

Fill In The Blanks:

Question. The study of movements like lifting, putting objects, sitting and changing positions etc is known as __________ .

Question. Unity of Commands resembles __________ organization.

Question. Principles of Management are universally __________ .

Question. The principles of management are __________ to action but do not provide readymade solutions.

Question. Remuneration will be fair when it gives __________ of living to employees. 

Question. The formal lines of authority from highest to lowest ranks are known as__________.

Question. The principles of management are dependent upon the prevailing situation i.e. they are __________ .

Question. Discipline require superiors at all levels and clear &__________ agreement. 

Question. There should be parity between authority and __________ according to fayol. 

Question. The right to give orders and obtain obedience is known as __________ .

Question. A manager should replace__________ with __________ in his conversation to boost team spirit.

True /False:

Question. Espirit de corps me all the employees should be treated in same manner .

Question. If unity of direction is followed “authority is undermined, discipline is in jeopardy, order is disturbed and stability is threatened.

Question. Standarisation refers to setting standards for each and every business activity.

Question. The principles of management are rigid statements .

Question. Fayol suggested that there is a need to balance subordinate involvement through decentralization with managers.

Question. Management principles are flexible to adapt to dynamic business environment.

Question. According to Taylor, Competition should be replaced by cooperation.

Question. Derivation of principles may be said to be a matter of science and their application can be regarded as an art.

Question. Fayol principles are developed on the basis of scientific experiments.

Question. Scientific management me using rule of thumb to perform task in best and cheapest way.

Match the following:

Question. Match the technique of scientific management given under B with the suitable statements under A

A	B
1. One best way of doing job	a. Simplification
2. Eliminates unnecessary diversity of products	b. Standardisation
3. Setting standards for business activities	c. Motion study
4. Eliminates unnecessary movements	d. Method study

Question. Match the principles of management given under B with suitable statements given under A

A	B
1. Minimising employee turnover	a.Equity
2. Kindness and justice in behaviour of managers	b.Fair Remuneration
3. Fair Pay and compensation	c.Subordination of individual to general interest
4.Priority of organisational interest over individual interest	d.Stability of tenure of personnel

Question. Match the work performed by specialist foreman under functional foremanship given under A with the job assigned to them under B

A	B
1. Draft instructions to workers	a. Disciplinarian
2. Check quality of work	b. Repair boss
3. Ensures proper working condition of tools and machines	c. Instruction card clerk
4. Ensures discipline	d.Inspector

Question. Match the principles of management given under B with suitable statements given under A

A	B
1. Prevents dual subordination	a. Division of work
2. Prevents overlapping of activities	b. Unity of command
3. Minimises employee turnover	c. Unity of direction
4. Prevents lack of efficiency	d. Fair remuneration

Question. Match the features of principles of management given under A with the correct statement given under B.

A	B
1. Flexibilty	a. Principles depends upon prevailing situations
2. Contingent	b. Principles can be modified by the managers
	c.Principles aim at influencing human behaviour.
	d.Principles are applied to all organisations

Question. Match the statements given under A with the correct options given under B

A	B
1. Principle of Fayol	a. Science not rule of thumb
2. Technique of Taylor	b. Equity
	c. Motion study
	d.Rigidity

Question. Match the principles of management given under B with suitable statements given under A

A	B
1. One head for one plan	a. Order
2. Use of We instead of I	b. Equity
3. Similar wages for similar jobs	c. Unity of direction
4. Right place for resources	d. Espirit De Corps

Question. Match the statements given under A with the correct options given under B

A	B
1. Scientific principles of management	a. Fatigue study
2. General principles of management	b.Technique of Taylor
3. Functional Foremanship	c. Fayol
4. Rest Intervals in job	d.Taylor

Question. Match the statements given under A with the correct options given under B

A	B
1. Right to give orders to subordinates	a.Responsibility
2. Retention of decision making authority at top level	b.Authority
3. Obligation to perform tasks	c.Decentralisation
4. Distribution of authority at all levels	d.Centralisation

Question. Match the statements given under A with the correct options given under B

A	B
1. It ensures unity of action and facilitates coordination	a. Scalar chain
2. It leads to quick decision at middle and operational level.	b. Stability of personnel
3. It reduces expenses on recruitment, selection and training.	c. Unity of direction
4 It ensures orderly and smooth flow of information	d. Decentralisation

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