laboursonline – MCQs, Mock Tests | Business Studies Business Studies-[Class 12-MCQS ]-Chapter 5 Organising

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

1. Management
2. Planning
3. Organising
4. Directing

✅ Correct Answer: 3

Organising is a process by which the manager

1. Establishes order out of chaos
2. Removes conflict among people over work or responsibility sharing
3. Creates an environment suitable for teamwork
4. All of the above

✅ Correct Answer: 4

It is defined as the framework within which managerial and operating tasks are performed.

1. Span of management
2. Organisational structure
3. Informal organisation
4. None of the above

✅ Correct Answer: 2

It refers to the number of subordinates that can be effectively managed by a superior;

1. Organisational structure
2. Informal organisation
3. Span of management
4. None of the above

✅ Correct Answer: 3

As the span of management increases in an organisation; the number of levels of management in the organisation

1. Increases
2. Decreases
3. Remains unaffected
4. None of the above

✅ Correct Answer: 2

Identify the type of organisational structure which facilitates occupational specialisation;

1. Functional structure
2. Horizontal structure
3. Network structure
4. Divisional structure

✅ Correct Answer: 1

Under this type of organisational structure; manpower is grouped on the basis of different products manufactured.

1. Divisional structure
2. Functional structure
3. Network structure
4. Matrix structure

✅ Correct Answer: 1

Which of the following is not a feature of functional structure?

1. It promotes functional specialisation.
2. Managerial development is difficult.
3. It is easy to fix responsiblity for performance.
4. It is an economical structure to maintain.

✅ Correct Answer: 3

Which of the following is not a merit of functional structure?

1. It promotes control and co-ordination within a department.
2. It makes training of employees easier; as the focus is only on a limited range of skills.
3. It ensures that different products get due attention.
4. It leads to occupational specialisation.

✅ Correct Answer: 3

Which of the following is not a merit of divisional structure?

1. It promotes product specialisation.
2. It ensures that different functions get due attention.
3. It promotes flexibility and faster decision making.
4. It facilitates expansion and growth as new divisions.

✅ Correct Answer: 2

Which of the following is not a demerit of divisional structure?

1. It is an expensive structure to maintain; since there may be a duplication of activities across products.
2. All functions related to a particular product are integrated in one department.
3. Conflict may arise among different divisional heads due to different interests.
4. Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.

✅ Correct Answer: 2

Identify the correct sequence of steps to be followed in an organising process.

1. Departmentalisation; Establishing reporting relationships; Assignment of duties; Identification and division of work
2. Identification and division of work; Departmentalisation; Assignment of duties; Establishing reporting relationships
3. Identification and division of work; Assignment of duties; Departmentalisation; Establishing reporting relationships
4. dentification and division of work; Establishing reporting relationships; Departmentalisation; Assignment of duties

✅ Correct Answer: 2

Which of the following is not a demerit of functional structure?

1. It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
2. It may lead to conflict of interests among departments due to varied interests.
3. It leads to occupational specialisation.
4. It may lead to difficulty in co-ordination among functionally differentiated departments.

✅ Correct Answer: 3

Which of the following is not a feature of formal organisation?

1. It specifies the relationships among various job positions.
2. The standards of behaviour of employees are evolved from group norms
3. It is deliberately designed by the top management.
4. It places less emphasis on interpersonal relationships among the employees.

✅ Correct Answer: 2

Which of the following is not a merit of formal organisation?

1. It is easier to fix responsibility for mistakes.
2. Scalar chain of command is followed.
3. It leads to effective achievement of organisational goals.
4. It leads to faster spread of information and rapid feedback.

✅ Correct Answer: 4

Which of the following is not a demerit of formal organisation?

1. It may lead to procedural delays.
2. It may lead to spreading of rumours.
3. It emphasises on following rigidly laid down policies
4. It places more importance on work rather than the relationships.

✅ Correct Answer: 2

Which of the following is not a feature of informal organisation?

1. It originates from within the formal organisation.
2. The standards of behaviour evolve from group norms.
3. Scalar chain of command is not followed.
4. It is deliberately created by the management.

✅ Correct Answer: 4

Which of the following is not a merit of informal organisation?

1. It leads to faster spread of information and speedy feedback.
2. It helps to fulfill the social needs of the members.
3. It .does not fulfill inadequacies in the formal organisation.
4. All of the above

✅ Correct Answer: 3

Which of the following is not a demerit of informal organisation?

1. It leads to spreading of rumours.
2. It gives more importance to structure and work.
3. It may restrict implementation of changes within the organisation.
4. It puts psychological pressure on members to conform to group expectations; even if they are against the interest of organisation.

✅ Correct Answer: 2

Which of the following is not an element of delegation?

1. Responsibilty
2. Authority
3. Accountability
4. Decentralisation

✅ Correct Answer: 4

It arises from the established scalar chain which links the various job positions and levels of an organisation.

1. Authority
2. All of the above
3. Top to bottom
4. None of the above

✅ Correct Answer: 2

The authority flows from as we go higher up in the management hierarchy.

1. Bottom to top
2. Decreases
3. In all directions
4. None of the above

✅ Correct Answer: 2

The scope of authority _________ as we go higher up in the management hierarchy.

1. Increases
2. Decreases
3. Remains same
4. None of the above

✅ Correct Answer: 1

It is the obligation of a subordinate to properly perform the assigned duty.

1. Responsibility
2. Authority
3. Accountability
4. All of the above

✅ Correct Answer: 1

The responsibility flows

1. In all directions
2. Downwards
3. Upwards
4. None of the above

✅ Correct Answer: 3

Authority granted to an employee should be

1. More than the responsibility entrusted to him
2. Less than the responsibility entrusted to him
3. Equal to the responsibility entrusted to him
4. All of the above

✅ Correct Answer: 3

It helps the managers to ensure that their subordinate discharges his duties properly.

1. Responsibility
2. Authority
3. Accountability
4. All of the above

✅ Correct Answer: 3

The accountability flows

1. In all directions
2. Downward
3. Upwards
4. None of the above

✅ Correct Answer: 3

Which of the following can be delegated

1. Responsibility
2. Authority
3. Accountability
4. All of the above

✅ Correct Answer: 2

Which of the following cannot be delegated?

1. Responsibility and accountability
2. Authority and responsibility
3. Accountability and responsibility
4. All of the above

✅ Correct Answer: 1

Authority arises from

1. Responsibility
2. Formal position
3. Accountability
4. All of the above

✅ Correct Answer: 1

Responsibility is derived from

1. Authority
2. Formal position
3. Accountability
4. All of the above

✅ Correct Answer: 1

Accountability is derived from

1. Authority
2. Formal position
3. Responsibility
4. All of the above

✅ Correct Answer: 3

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

1. Decentralised
2. Centralised
3. Fragmented
4. None of the above

✅ Correct Answer: 2