NCERT BOOK CLASS 12TH Business Studies MCQ
Chapter 2 : Principles of Management
Important MCQs with Answers
1. Who proposed the Principles of Management?
a) Frederick Taylor
b) Henri Fayol
c) Elton Mayo
d) Peter Drucker
Answer: b) Henri Fayol
2. Who is known as the “Father of Scientific Management”?
a) Henri Fayol
b) Frederick Taylor
c) Max Weber
d) Elton Mayo
Answer: b) Frederick Taylor
3. According to Fayol, how many principles of management are there?
a) 10
b) 12
c) 14
d) 16
Answer: c) 14
4. The “Division of Work” principle is related to:
a) Specialization
b) Centralization
c) Discipline
d) Equity
Answer: a) Specialization
5. What does the “Authority and Responsibility” principle state?
a) Authority and responsibility should go hand in hand
b) Only authority is important
c) Only responsibility is important
d) None of these
Answer: a) Authority and responsibility should go hand in hand
6. The “Discipline” principle depends on:
a) Good leadership
b) Clear rules
c) Punishment system
d) Both (a) and (b)
Answer: d) Both (a) and (b)
7. “Unity of Command” means:
a) An employee should receive orders from only one boss
b) All employees should receive the same orders
c) Managers should make uniform decisions
d) None of these
Answer: a) An employee should receive orders from only one boss
8. What does “Unity of Direction” suggest?
a) A group should work towards a single objective
b) All employees should look in the same direction
c) Managers should follow the same policy
d) Both (a) and (c)
Answer: a) A group should work towards a single objective
9. What does “Subordination of Individual Interest to General Interest” mean?
a) Organizational benefit should be prioritized over personal benefit
b) Employees should be given priority
c) Managers should work for their own benefit
d) None of these
Answer: a) Organizational benefit should be prioritized over personal benefit
10. According to the “Remuneration” principle, how should employees’ salaries be?
a) Fair
b) Minimum
c) Maximum
d) Arbitrary
Answer: a) Fair
11. “Centralization” means:
a) Decision-making power lies with top management
b) Decision-making power lies with lower levels
c) Everyone has decision-making authority
d) None of these
Answer: a) Decision-making power lies with top management
12. What does “Scalar Chain” represent?
a) The chain of authority in an organization
b) The number of employees
c) The production process
d) None of these
Answer: a) The chain of authority in an organization
13. What does the “Equity” principle suggest?
a) Employees should be treated fairly and kindly
b) Only seniors should be given benefits
c) Employees should be discriminated against
d) None of these
Answer: a) Employees should be treated fairly and kindly
14. What is the importance of “Stability of Tenure”?
a) Employees get job security
b) The organization benefits
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
15. What does the “Initiative” principle encourage employees to do?
a) Suggest new ideas
b) Only follow orders
c) Remain inactive
d) None of these
Answer: a) Suggest new ideas
16. What does “Esprit de Corps” mean?
a) Team spirit
b) Personal gain
c) Competition
d) None of these
Answer: a) Team spirit
17. What was the main objective of Frederick Taylor’s “Scientific Management”?
a) To increase productivity
b) To give employees less work
c) To give managers more power
d) None of these
Answer: a) To increase productivity
18. What is “Time Study” related to?
a) Analyzing the time taken to complete a task
b) Increasing employees’ working hours
c) Measuring machine speed
d) None of these
Answer: a) Analyzing the time taken to complete a task
19. What is “Motion Study”?
a) Analysis of work methods
b) Measuring employees’ speed
c) Increasing machine speed
d) None of these
Answer: a) Analysis of work methods
20. Who proposed the “Scientific Analysis of Work”?
a) Henri Fayol
b) Frederick Taylor
c) Elton Mayo
d) Peter Drucker
Answer: b) Frederick Taylor
21. What is “Functional Foremanship” related to?
a) An employee receiving instructions from eight specialists
b) Control by only one foreman
c) Employees managing themselves
d) None of these
Answer: a) An employee receiving instructions from eight specialists
22. According to Taylor, what is the purpose of “Standardization”?
a) To bring uniformity in tools and processes
b) To keep employees’ salaries fixed
c) To increase production costs
d) None of these
Answer: a) To bring uniformity in tools and processes
23. What does the “Differential Piece Wage System” encourage?
a) Higher pay for efficient workers
b) Equal pay for all workers
c) Reducing working hours
d) None of these
Answer: a) Higher pay for efficient workers
24. What is the main difference between Fayol’s and Taylor’s principles?
a) Fayol focused on administration, Taylor on shop-floor level
b) Both principles are the same
c) Taylor only focused on financial management
d) None of these
Answer: a) Fayol focused on administration, Taylor on shop-floor level
25. What is true about the “Flexibility” of management principles?
a) They can be applied flexibly based on situations
b) They must be applied rigidly
c) They apply only to large organizations
d) None of these
Answer: a) They can be applied flexibly based on situations
26. Which is NOT a benefit of management principles?
a) Providing practical guidance to managers
b) Efficient use of resources
c) Increasing reliance on guesswork in decision-making
d) Assisting in training
Answer: c) Increasing reliance on guesswork in decision-making
27. What is the difference between “Unity of Command” and “Unity of Direction”?
a) The first relates to individual reporting, the second to group activities
b) Both are the same
c) The first applies only at lower levels
d) None of these
Answer: a) The first relates to individual reporting, the second to group activities
28. Why is “Delegation of Authority” important according to Fayol?
a) To increase efficiency
b) To reduce the burden on top management
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
29. When can the “Scalar Chain” be bypassed?
a) In emergencies through a “Gang Plank”
b) It can never be bypassed
c) Only at lower levels
d) None of these
Answer: a) In emergencies through a “Gang Plank”
30. Which statement is correct regarding “Remuneration”?
a) It should be fair for both employees and employers
b) It only considers company profits
c) It is unrelated to employees’ skills
d) None of these
Answer: a) It should be fair for both employees and employers
31. What is correct about “Centralization vs Decentralization”?
a) Small organizations tend to have more centralization
b) Decentralization gives more authority to lower levels
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
32. The “Equity” principle is related to:
a) Balancing fairness and kindness
b) Good treatment only for seniors
c) Discrimination among employees
d) None of these
Answer: a) Balancing fairness and kindness
33. What is the impact of “Stability of Tenure”?
a) Preservation of organizational knowledge
b) Increased employee loyalty
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
34. What is correct about “Initiative”?
a) It encourages innovation
b) It forces managers to make every decision
c) It applies only to top management
d) None of these
Answer: a) It encourages innovation
35. Why is “Esprit de Corps” important?
a) It enhances teamwork and cooperation
b) It encourages individual competition
c) It promotes conflict
d) None of these
Answer: a) It enhances teamwork and cooperation
36. What is a limitation of Taylor’s “Scientific Management”?
a) It neglects human elements
b) It applies only to large organizations
c) It is costly
d) None of these
Answer: a) It neglects human elements
37. What is a feature of Fayol’s principles?
a) Universal applicability
b) Applicable only to industries
c) Lack of flexibility
d) None of these
Answer: a) Universal applicability
38. What is a limitation of “Functional Foremanship”?
a) An employee needs multiple bosses
b) It works only in small organizations
c) It is expensive
d) None of these
Answer: a) An employee needs multiple bosses
39. What is the primary objective of “Time and Motion Study”?
a) To eliminate unnecessary activities and improve efficiency
b) To monitor employees
c) To measure machine speed
d) None of these
Answer: a) To eliminate unnecessary activities and improve efficiency
40. What is a limitation of the “Differential Piece Rate System”?
a) It may create tension among employees
b) It is only for skilled workers
c) It increases production costs
d) None of these
Answer: a) It may create tension among employees
41. What is true about the nature of management principles?
a) They are universal but applied flexibly
b) They are rigid rules
c) They apply only to profit-making organizations
d) None of these
Answer: a) They are universal but applied flexibly
42. What is the benefit of “Division of Work”?
a) Increases specialization and efficiency
b) Reduces employee stress
c) Simplifies organizational structure
d) None of these
Answer: a) Increases specialization and efficiency
43. What is correct about “Authority and Responsibility”?
a) Responsibility is meaningless without authority
b) Authority can be given without responsibility
c) Both are independent of each other
d) None of these
Answer: a) Responsibility is meaningless without authority
44. What does “Discipline” depend on?
a) Good leadership and clear rules
b) Only punishment
c) Only rewards
d) None of these
Answer: a) Good leadership and clear rules
45. When is “Unity of Command” violated?
a) When an employee receives orders from multiple superiors
b) When no instructions are given
c) When instructions are unclear
d) None of these
Answer: a) When an employee receives orders from multiple superiors
46. What does “Unity of Direction” relate to?
a) Groups with the same objective working under one plan
b) All departments looking in the same direction
c) Following only top management’s orders
d) None of these
Answer: a) Groups with the same objective working under one plan
47. Why is “Subordination of Individual Interest” important?
a) To achieve organizational goals
b) To reduce personal conflicts
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
48. What does Fayol suggest about “Remuneration”?
a) It should be fair for both employees and employers
b) It should be as low as possible
c) It should focus only on company profits
d) None of these
Answer: a) It should be fair for both employees and employers
49. What is correct about “Centralization”?
a) It is more effective in small organizations
b) It gives decision-making freedom to lower-level employees
c) It always leads to inefficiency
d) None of these
Answer: a) It is more effective in small organizations
50. What is the significance of the “Scalar Chain”?
a) Establishes clear communication paths in an organization
b) Applies only to formal organizations
c) Promotes conflict
d) None of these
Answer: a) Establishes clear communication paths in an organization
51. What is the primary purpose of “Management Principles”?
a) To guide the achievement of organizational goals
b) Only to maximize profits
c) To control employees
d) None of these
Answer: a) To guide the achievement of organizational goals
52. According to Fayol, at which level is “Planning” done?
a) Top management
b) Middle management
c) Lower management
d) All levels
Answer: d) All levels
53. How did Fayol describe “Coordination”?
a) The essence of management
b) An unnecessary process
c) Only a top-level activity
d) None of these
Answer: a) The essence of management
54. What does Taylor’s principle “Science, Not Rule-of-Thumb” mean?
a) Decisions based on scientific analysis
b) Following traditional methods
c) Working based on experience
d) None of these
Answer: a) Decisions based on scientific analysis
55. What is the role of the “Route Clerk” in “Functional Foremanship”?
a) Determining production routes for tasks
b) Setting employee salaries
c) Purchasing raw materials
d) None of these
Answer: a) Determining production routes for tasks
56. What does the “Harmony, Not Discord” principle relate to?
a) Cooperation between management and workers
b) Unity only among workers
c) Machine maintenance
d) None of these
Answer: a) Cooperation between management and workers
57. What is the meaning of “Mental Revolution”?
a) A change in the mindset of management and employees
b) Only training employees
c) Adopting new technologies
d) None of these
Answer: a) A change in the mindset of management and employees
58. In which year were Fayol’s principles published?
a) 1916
b) 1920
c) 1900
d) 1890
Answer: a) 1916
59. What does “Interrelation Between Principles” imply?
a) Principles are interconnected
b) Each principle is independent
c) Only two principles are related
d) None of these
Answer: a) Principles are interconnected
60. How are principles useful for “Managerial Training”?
a) By providing guidance to new managers
b) Only for experienced managers
c) By reducing the need for training
d) None of these
Answer: a) By providing guidance to new managers
61. What is the purpose of “Scientific Selection”?
a) To place the right person in the right job
b) To increase the number of employees
c) To reduce training costs
d) None of these
Answer: a) To place the right person in the right job
62. What is NOT related to “Work Study”?
a) Time Study
b) Motion Study
c) Financial Analysis
d) Fatigue Study
Answer: c) Financial Analysis
63. To what types of organizations do “Fayol’s Principles” apply?
a) All types
b) Only profit-making organizations
c) Only large organizations
d) None of these
Answer: a) All types
64. Which principle is related to “Span of Control”?
a) Division of Work
b) Authority and Responsibility
c) Unity of Command
d) None of these
Answer: b) Authority and Responsibility
65. What is the difference between “Principles of Management” and “Management Techniques”?
a) Principles are guidelines, techniques are specific methods
b) Both are the same
c) Techniques apply only to industries
d) None of these
Answer: a) Principles are guidelines, techniques are specific methods
66. What is essential for “Discipline”?
a) Good leadership and fair rules
b) Only strict punishment
c) Only high salaries
d) None of these
Answer: a) Good leadership and fair rules
67. In which country is “Stability of Tenure” more important?
a) Japan
b) United States
c) India
d) All countries
Answer: d) All countries
68. What is the benefit of encouraging “Initiative”?
a) Increased innovation and creativity
b) Reduced burden on managers
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
69. What culture does “Esprit de Corps” relate to?
a) Cooperation and teamwork
b) Individual competition
c) Profit maximization
d) None of these
Answer: a) Cooperation and teamwork
70. Which “Scientific Management” technique involves dividing work into smaller parts?
a) Division of Work
b) Time Study
c) Motion Study
d) None of these
Answer: a) Division of Work
71. In which language were “Fayol’s Principles” originally published?
a) French
b) English
c) German
d) None of these
Answer: a) French
72. What do “Principles of Management” help explain?
a) Organizational structure
b) Managerial functions
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
73. What is a disadvantage of “Centralization”?
a) Reduced decision-making ability at lower levels
b) Loss of organizational flexibility
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
74. What may happen if the “Scalar Chain” is not followed?
a) Communication barriers
b) Delayed decision-making
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
75. What is the most important feature of management principles?
a) Flexibility
b) Rigidity
c) Complexity
d) None of these
Answer: a) Flexibility
76. Which Scientific Management technique includes “Work Analysis”?
a) Time Study
b) Motion Study
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
77. According to Fayol, what is the relationship between “Planning” and “Organizing”?
a) Planning precedes organizing
b) Organizing precedes planning
c) Both occur simultaneously
d) None of these
Answer: a) Planning precedes organizing
78. Who proposed the “Differential Piece Rate System”?
a) Frederick Taylor
b) Henri Fayol
c) Elton Mayo
d) Peter Drucker
Answer: a) Frederick Taylor
79. What is true about the nature of “Principles of Management”?
a) They are universal but flexible
b) They are rigid rules
c) They apply only to industries
d) None of these
Answer: a) They are universal but flexible
80. How many types of foremen are there in “Functional Foremanship”?
a) 8
b) 6
c) 4
d) 2
Answer: a) 8
81. Which managerial function includes “Coordination”?
a) All managerial functions
b) Only planning
c) Only controlling
d) None of these
Answer: a) All managerial functions
82. What is required to maintain “Discipline”?
a) Good leadership
b) Clear rules
c) Both (a) and (b)
d) None of these
Answer: c) Both (a) and (b)
83. What is an advantage of “Centralization”?
a) Uniformity in decision-making
b) Quick decisions
c) Empowerment of lower levels
d) None of these
Answer: a) Uniformity in decision-making
84. Which principle is related to “Esprit de Corps”?
a) Team spirit
b) Individual competition
c) Centralization
d) None of these
Answer: a) Team spirit
85. What is the main objective of management principles?
a) To enhance organizational efficiency
b) Only to increase profits
c) To control employees
d) None of these
Answer: a) To enhance organizational efficiency