NCERT BOOK CLASS 12TH Business Studies MCQ
Chapter 1 : Nature and Significance of Management
Important MCQs with Answers
1. What is Management?
a) A Science
b) An Art
c) A Profession
d) All of the above
Answer: d) All of the above
2. Which aspect of management is considered a “Science”?
a) Practical knowledge
b) Universal principles
c) Creativity
d) Personal skills
Answer: b) Universal principles
3. “Management is an Art” – Why is this statement correct?
a) It involves theoretical knowledge
b) It requires personal skills and creativity
c) It has a code of conduct
d) It requires training
Answer: b) It requires personal skills and creativity
4. Why is management considered a “Profession”?
a) Because it requires specialized knowledge
b) Because it has an ethical code
c) Because it requires training
d) All of the above
Answer: d) All of the above
5. How are the principles of management characterized?
a) Rigid
b) Flexible
c) Static
d) Unchangeable
Answer: b) Flexible
6. How many levels of management are there in an organization?
a) 2
b) 3
c) 4
d) 5
Answer: b) 3
7. Which of the following is NOT a function of top-level management?
a) Policy formulation
b) Daily supervision
c) Setting organizational objectives
d) Resource allocation
Answer: b) Daily supervision
8. What is the primary function of middle-level management?
a) Acting as a bridge between top management and lower-level management
b) Formulating policies
c) Recruiting employees
d) Managing finances
Answer: a) Acting as a bridge between top management and lower-level management
9. By what other name is lower-level management known?
a) Supervisory management
b) Operative management
c) Both a and b
d) None of these
Answer: c) Both a and b
10. At which level of management is a “Foreman” positioned?
a) Top level
b) Middle level
c) Lower level
d) None of these
Answer: c) Lower level
11. What are the primary functions of management?
a) Planning, Organizing, Directing
b) Staffing, Controlling
c) Both a and b
d) None of these
Answer: c) Both a and b
12. “Determining a predetermined course of action for the future” refers to which managerial function?
a) Organizing
b) Planning
c) Directing
d) Controlling
Answer: b) Planning
13. Efficient allocation of resources falls under which managerial function?
a) Planning
b) Organizing
c) Directing
d) Controlling
Answer: b) Organizing
14. “Motivating and guiding employees” is part of which managerial function?
a) Staffing
b) Directing
c) Controlling
d) Organizing
Answer: b) Directing
15. What does the controlling process include?
a) Evaluating actual performance
b) Setting standards
c) Identifying deviations
d) All of the above
Answer: d) All of the above
16. What is the primary objective of management?
a) Achieving organizational objectives
b) Fulfilling social objectives
c) Meeting personal objectives
d) All of the above
Answer: d) All of the above
17. “Earning profit” falls under which type of objective?
a) Organizational objectives
b) Social objectives
c) Personal objectives
d) None of these
Answer: a) Organizational objectives
18. “Providing fair salary to employees” is part of which objective?
a) Organizational objectives
b) Social objectives
c) Personal objectives
d) None of these
Answer: c) Personal objectives
19. “Environmental protection” is related to which managerial objective?
a) Organizational objectives
b) Social objectives
c) Personal objectives
d) None of these
Answer: b) Social objectives
20. Which statement is correct regarding management objectives?
a) They may conflict with each other
b) They are equally important
c) They are dynamic
d) All of the above
Answer: d) All of the above
21. Who is considered the “Father of Scientific Management”?
a) Henry Fayol
b) F.W. Taylor
c) Peter Drucker
d) Elton Mayo
Answer: b) F.W. Taylor
22. Who proposed the “14 Principles of Management”?
a) F.W. Taylor
b) Henry Fayol
c) Elton Mayo
d) Maslow
Answer: b) Henry Fayol
23. What does the principle of “Unity of Command” state?
a) An employee should receive orders from only one superior
b) All employees should receive the same orders
c) There should be only one head in an organization
d) None of these
Answer: a) An employee should receive orders from only one superior
24. According to the principle of “Authority and Responsibility”:
a) Authority and responsibility should be equal
b) Authority should be greater than responsibility
c) Responsibility should be greater than authority
d) There is no relationship between them
Answer: a) Authority and responsibility should be equal
25. The principle of “Division of Work” is related to:
a) Specialization
b) Centralization
c) Discipline
d) Cooperation
Answer: a) Specialization
26. Which role of management involves decision-making?
a) Interpersonal role
b) Informational role
c) Decisional role
d) All of the above
Answer: c) Decisional role
27. Under which category does the “Spokesperson” role fall?
a) Interpersonal role
b) Informational role
c) Decisional role
d) None of these
Answer: b) Informational role
28. What is the “Entrepreneur” role related to?
a) Implementing new ideas
b) Resolving conflicts
c) Disseminating information
d) Representation
Answer: a) Implementing new ideas
29. Under which category does the “Leader” role fall?
a) Interpersonal role
b) Informational role
c) Decisional role
d) None of these
Answer: a) Interpersonal role
30. What is the “Resource Allocator” role related to?
a) Distribution of organizational resources
b) Motivating employees
c) Communicating with external agencies
d) Formulating policies
Answer: a) Distribution of organizational resources
31. What is the importance of management?
a) It helps achieve organizational goals
b) It ensures efficient use of limited resources
c) It helps fulfill social objectives
d) All of the above
Answer: d) All of the above
32. How is management important for society?
a) By providing employment opportunities
b) By supplying quality goods and services
c) By contributing to environmental protection
d) All of the above
Answer: d) All of the above
33. Why is management important for employees?
a) It ensures fair salaries
b) It creates a good work environment
c) It develops their skills
d) All of the above
Answer: d) All of the above
34. Without management:
a) The organization will fail
b) Resources will be wasted
c) Achieving goals will be difficult
d) All of the above
Answer: d) All of the above
35. With management in place:
a) Productivity increases
b) Costs decrease
c) Quality improves
d) All of the above
Answer: d) All of the above
36. “Policy formulation” is primarily the function of:
a) Management
b) Administration
c) Both
d) None of these
Answer: b) Administration
37. “Implementing policies” is primarily the function of:
a) Management
b) Administration
c) Both
d) None of these
Answer: a) Management
38. Which statement is correct regarding management and administration?
a) They are complementary
b) They are different
c) They are the same
d) None of these
Answer: a) They are complementary
39. In schools and colleges, what primarily takes place?
a) Management
b) Administration
c) Both
d) None of these
Answer: b) Administration
40. In business organizations, what primarily takes place?
a) Management
b) Administration
c) Both
d) None of these
Answer: a) Management
41. “Coordination” is the ______ of management.
a) Function
b) Objective
c) Essence
d) Principle
Answer: c) Essence
42. At which level is coordination necessary?
a) Top level
b) Middle level
c) Lower level
d) All levels
Answer: d) All levels
43. Which characteristic of management makes it “universal”?
a) It applies to all organizations
b) It applies to all countries
c) Both a and b
d) None of these
Answer: c) Both a and b
44. Which statement is correct regarding the nature of management?
a) It is a goal-oriented process
b) It is a continuous process
c) It is a group effort
d) All of the above
Answer: d) All of the above
45. What is the difference between “efficiency” and “effectiveness” in management?
a) Efficiency means “doing things right,” while effectiveness means “doing the right things.”
b) Efficiency means “using fewer resources,” while effectiveness means “achieving goals.”
c) Both a and b
d) None of these
Answer: c) Both a and b
46. “Management is a pervasive process” – What does this mean?
a) It applies to all organizations
b) It applies at all levels
c) It applies to all types of activities
d) All of the above
Answer: d) All of the above
47. Who is referred to as a “professional manager”?
a) One who has specialized education in management
b) One who owns the organization
c) One with management experience
d) Both a and c
Answer: d) Both a and c
48. What does “managerial efficiency” depend on?
a) Minimum use of resources
b) Cost reduction
c) Efficient use of time
d) All of the above
Answer: d) All of the above
49. What does “managerial effectiveness” depend on?
a) Achievement of goals
b) Customer satisfaction
c) Organizational growth
d) All of the above
Answer: d) All of the above
50. Which statement is correct regarding management?
a) It is a social process
b) It is a dynamic function
c) It is a multi-dimensional concept
d) All of the above
Answer: d) All of the above
51. Which characteristic makes management “goal-oriented”?
a) It organizes various resources
b) It works to achieve predetermined objectives
c) It fulfills social responsibilities
d) It focuses on earning profits
Answer: b) It works to achieve predetermined objectives
52. “Management is a social process” – What does this statement indicate?
a) It interacts with various social groups
b) It works for societal welfare
c) It involves human relations
d) All of the above
Answer: d) All of the above
53. What does “dynamism” mean in management?
a) It adapts to changing environments
b) It adopts innovations
c) It is responsive to technological changes
d) All of the above
Answer: d) All of the above
54. Which aspect of management is considered “intangible”?
a) Its presence can be felt but not seen
b) Its results can be observed
c) Its functions can be measured
d) Its principles can be documented
Answer: a) Its presence can be felt but not seen
55. “Management is a group activity” – What does this mean?
a) It is not an individual effort
b) It functions through collaboration across departments
c) It relies on teamwork
d) All of the above
Answer: d) All of the above
56. According to the principle of “Discipline”:
a) Organizational rules must be followed
b) Both employees and management must be disciplined
c) A system of rewards and punishments should exist
d) All of the above
Answer: d) All of the above
57. The principle of “Stability of tenure” relates to:
a) Providing job security to employees
b) Reducing labor turnover
c) Enhancing employee loyalty
d) All of the above
Answer: d) All of the above
58. According to the principle of “Initiative”:
a) Employees should be encouraged to propose new ideas
b) Managers should be willing to take risks
c) Innovations should be promoted
d) All of the above
Answer: d) All of the above
59. What does the principle of “Subordination of individual interest to general interest” teach?
a) Organizational interests should be prioritized
b) Personal gains should be limited
c) Team spirit should be encouraged
d) All of the above
Answer: d) All of the above
60. According to the principle of “Centralization and Decentralization”:
a) Organizations should balance based on their needs
b) Centralization suits small organizations
c) Decentralization is essential for large organizations
d) All of the above
Answer: d) All of the above
61. What does the “Staffing” process include?
a) Human resource planning
b) Recruitment and selection
c) Training and development
d) All of the above
Answer: d) All of the above
62. Which of the following is NOT part of the “Organizing” function?
a) Division of work
b) Defining authority and responsibility
c) Arranging financial resources
d) Policy formulation
Answer: d) Policy formulation
63. What is the final step in the “Controlling” process?
a) Taking corrective action
b) Evaluating performance
c) Setting standards
d) Identifying deviations
Answer: a) Taking corrective action
64. Which element is NOT part of “Directing”?
a) Leadership
b) Communication
c) Motivation
d) Budgeting
Answer: d) Budgeting
65. Which statement is correct about “Coordination”?
a) It is inherent in all management functions
b) It is not an independent managerial function
c) It integrates group efforts
d) All of the above
Answer: d) All of the above
66. “Quality management” relates to which managerial objective?
a) Organizational objective
b) Social objective
c) Personal objective
d) None of these
Answer: a) Organizational objective
67. “Employee development” fulfills which objective?
a) Organizational objective
b) Social objective
c) Personal objective
d) Both a and c
Answer: d) Both a and c
68. “Customer satisfaction” is part of which managerial objective?
a) Organizational objective
b) Social objective
c) Personal objective
d) Both a and b
Answer: d) Both a and b
69. Encouraging “innovation” relates to which objective?
a) Organizational objective
b) Social objective
c) Personal objective
d) None of these
Answer: a) Organizational objective
70. “Timely payment of taxes” fulfills which objective?
a) Organizational objective
b) Social objective
c) Personal objective
d) None of these
Answer: b) Social objective
71. What is true about the nature of “management principles”?
a) They are conditional
b) They are flexible
c) They are universal
d) All of the above
Answer: d) All of the above
72. Who classified “managerial roles”?
a) Henry Fayol
b) F.W. Taylor
c) Henry Mintzberg
d) Peter Drucker
Answer: c) Henry Mintzberg
73. What is included in the “scope of management”?
a) Production management
b) Marketing management
c) Financial management
d) All of the above
Answer: d) All of the above
74. What is the primary purpose of “management principles”?
a) Aiding managerial decision-making
b) Enhancing organizational efficiency
c) Improving human relations
d) All of the above
Answer: d) All of the above
75. What does the “success of management” depend on?
a) Efficient use of resources
b) Achievement of organizational goals
c) Satisfaction of stakeholders
d) All of the above
Answer: d) All of the above