Business Studies MCQ Quiz Hub

1. Name the process which co-ordinates human efforts; assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives;
 Management
 Planning
 Organising
Directing

2.  Organising is a process by which the manager
Establishes order out of chaos
Removes conflict among people over work or responsibility sharing
Creates an environment suitable for teamwork
 All of the above

3.  It is defined as the framework within which managerial and operating tasks are performed.
Span of management
Organisational structure
Informal organisation
 None of the above

4.  It refers to the number of subordinates that can be effectively managed by a superior;
 Organisational structure
 Informal organisation
 Span of management
None of the above

5.  As the span of management increases in an organisation; the number of levels of management in the organisation
Increases
 Decreases
Remains unaffected
 None of the above

6. Identify the type of organisational structure which facilitates occupational specialisation;
Functional structure
Horizontal structure
Network structure
Divisional structure

7.  Under this type of organisational structure; manpower is grouped on the basis of different products manufactured.
 Divisional structure
Functional structure
Network structure
Matrix structure

8. Which of the following is not a feature of functional structure?
It promotes functional specialisation.
 Managerial development is difficult.
 It is easy to fix responsiblity for performance.
It is an economical structure to maintain.

9. Which of the following is not a merit of functional structure?
 It promotes control and co-ordination within a department.
 It makes training of employees easier; as the focus is only on a limited range of skills.
It ensures that different products get due attention.
It leads to occupational specialisation.

10. Which of the following is not a merit of divisional structure?
 It promotes product specialisation.
 It ensures that different functions get due attention.
It promotes flexibility and faster decision making.
It facilitates expansion and growth as new divisions.

11. Which of the following is not a demerit of divisional structure?
It is an expensive structure to maintain; since there may be a duplication of activities across products.
All functions related to a particular product are integrated in one department.
Conflict may arise among different divisional heads due to different interests.
Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.

12.  Identify the correct sequence of steps to be followed in an organising process.
Departmentalisation; Establishing reporting relationships; Assignment of duties; Identification and division of work
Identification and division of work; Departmentalisation; Assignment of duties; Establishing reporting relationships
 Identification and division of work; Assignment of duties; Departmentalisation; Establishing reporting relationships
dentification and division of work; Establishing reporting relationships; Departmentalisation; Assignment of duties

13. Which of the following is not a demerit of functional structure?
 It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
It may lead to conflict of interests among departments due to varied interests.
 It leads to occupational specialisation.
It may lead to difficulty in co-ordination among functionally differentiated departments.

14. Which of the following is not a feature of formal organisation?
It specifies the relationships among various job positions.
The standards of behaviour of employees are evolved from group norms
It is deliberately designed by the top management.
It places less emphasis on interpersonal relationships among the employees.

15. Which of the following is not a merit of formal organisation?
It is easier to fix responsibility for mistakes.
Scalar chain of command is followed.
It leads to effective achievement of organisational goals.
It leads to faster spread of information and rapid feedback.

16. Which of the following is not a demerit of formal organisation?
 It may lead to procedural delays.
It may lead to spreading of rumours.
 It emphasises on following rigidly laid down policies
It places more importance on work rather than the relationships.

17.  Which of the following is not a feature of informal organisation?
It originates from within the formal organisation.
 The standards of behaviour evolve from group norms.
Scalar chain of command is not followed.
 It is deliberately created by the management.

18. Which of the following is not a merit of informal organisation?
 It leads to faster spread of information and speedy feedback.
 It helps to fulfill the social needs of the members.
 It .does not fulfill inadequacies in the formal organisation.
 All of the above

19.  Which of the following is not a demerit of informal organisation?
It leads to spreading of rumours.
It gives more importance to structure and work.
It may restrict implementation of changes within the organisation.
It puts psychological pressure on members to conform to group expectations; even if they are against the interest of organisation.

20. Which of the following is not an element of delegation?
 Responsibilty
Authority
Accountability
Decentralisation

21. It arises from the established scalar chain which links the various job positions and levels of an organisation.
 Authority
All of the above
Top to bottom
None of the above

22.  The authority flows from as we go higher up in the management hierarchy.
Bottom to top
Decreases
 In all directions
None of the above

23. The scope of authority _________ as we go higher up in the management hierarchy.
Increases
Decreases
Remains same
None of the above

24. It is the obligation of a subordinate to properly perform the assigned duty.
Responsibility
Authority
Accountability
All of the above

25. The responsibility flows
In all directions
Downwards
 Upwards
None of the above

26.  Authority granted to an employee should be
 More than the responsibility entrusted to him
Less than the responsibility entrusted to him
Equal to the responsibility entrusted to him
All of the above

27. It helps the managers to ensure that their subordinate discharges his duties properly.
Responsibility
Authority
Accountability
All of the above

28. The accountability flows
In all directions
 Downward
Upwards
None of the above

29.  Which of the following can be delegated
Responsibility
 Authority
 Accountability
All of the above

30. Which of the following cannot be delegated?
 Responsibility and accountability
 Authority and responsibility
 Accountability and responsibility
All of the above

31. Authority arises from
Responsibility
Formal position
 Accountability
 All of the above

32. Responsibility is derived from
Authority
Formal position
Accountability
 All of the above

33. Accountability is derived from
Authority
Formal position
Responsibility
All of the above

34.  When decision-making authority is retained organisation is said to be by higher management levels; an
Decentralised
Centralised
Fragmented
 None of the above