NCERT BOOK CLASS 12TH Business Studies MCQ
Chapter 5 : Organising
Important MCQs with Answers
1. What is the definition of Organising?
a) Giving instructions to employees
b) Efficient allocation of resources
c) Classification and coordination of tasks to achieve goals
d) Only financial management
Answer: c) Classification and coordination of tasks to achieve goals
2. What is the first step in the Organising Process?
a) Delegation of Authority
b) Identification and Division of Work
c) Departmentation
d) Establishing Coordination
Answer: b) Identification and Division of Work
3. “Departmentation” means:
a) Training employees
b) Grouping similar activities into a single unit
c) Creating only financial departments
d) Speeding up the production process
Answer: b) Grouping similar activities into a single unit
4. The advantage of a Functional Organisation Structure is:
a) Promotes specialisation
b) Delays decision-making
c) Suitable only for small organisations
d) High-level training for employees
Answer: a) Promotes specialisation
5. “Delegation of Authority” includes:
a) Responsibility, Authority, and Accountability
b) Only giving orders
c) Terminating employees
d) Financial accounting
Answer: a) Responsibility, Authority, and Accountability
6. “Accountability” means:
a) Responsibility to complete a task
b) Authority to perform a task
c) Being answerable for the results of a task
d) Only managerial work
Answer: c) Being answerable for the results of a task
7. A characteristic of an “Informal Organisation” is:
a) Predetermined rules
b) Spontaneously developed relationships
c) Only written communication
d) Rigid structure
Answer: b) Spontaneously developed relationships
8. The benefit of “Decentralisation” is:
a) Faster decision-making
b) Only empowers central management
c) Reduced employee control
d) High-level decision-making
Answer: a) Faster decision-making
9. The principle of “Unity of Command” states that:
a) An employee should receive orders from only one superior
b) Employees can receive orders from multiple superiors
c) Only top management can give orders
d) Employees can make their own decisions
Answer: a) An employee should receive orders from only one superior
10. The difference between “Decentralisation” and “Delegation” is:
a) In decentralisation, authority is transferred permanently
b) In delegation, authority is permanent
c) There is no difference between the two
d) Decentralisation applies only to government organisations
Answer: a) In decentralisation, authority is transferred permanently
11. In a “Functional Organizational Structure,” departmentation is done on the basis of:
a) Type of product
b) Geographical region
c) Functional areas of work
d) Type of customers
Answer: c) Functional areas of work
12. What does the “Chain of Command” refer to?
a) Hierarchy of authority levels in an organisation
b) Informal relationships among employees
c) Path of financial flow
d) Stages of the production process
Answer: a) Hierarchy of authority levels in an organisation
13. Which factor does NOT influence the determination of Organizational Structure?
a) Size of the organisation
b) Technology
c) Salary level of employees
d) Environmental uncertainty
Answer: c) Salary level of employees
14. In a “Decentralized Organization”:
a) All important decisions are made at the top level
b) Decision-making authority is distributed across various levels
c) Only middle management can make decisions
d) Decision-making takes more time
Answer: b) Decision-making authority is distributed across various levels
15. The main basis of a “Divisional Organizational Structure” is:
a) Different product lines or market segments
b) Skill level of employees
c) Financial condition of the organisation
d) Government rules
Answer: a) Different product lines or market segments
16. Which statement is correct regarding an “Informal Organization”?
a) It appears in the organisation chart
b) It is based on social relationships
c) Communication is slow in it
d) It is found only in large organisations
Answer: b) It is based on social relationships
17. The main benefit of “Work Specialization” is:
a) Increased employee efficiency
b) Increase in organisational levels
c) Delayed decision-making
d) Communication barriers arise
Answer: a) Increased employee efficiency
18. What does an “Organization Chart” depict?
a) Formal structure of the organisation
b) Informal relationships among employees
c) Financial status of the organisation
d) Stages of the production process
Answer: a) Formal structure of the organisation
19. “Span of Control” refers to:
a) The number of subordinates a manager can effectively supervise
b) Total number of employees in the organisation
c) Number of departments in the organisation
d) Deadline of a project
Answer: a) The number of subordinates a manager can effectively supervise
20. A characteristic of a “Matrix Organizational Structure” is:
a) Dual command system (functional and project managers)
b) Rigid departmental boundaries
c) Suitable only for small organisations
d) Slow decision-making process
Answer: a) Dual command system (functional and project managers)
21. Which is NOT included in the “Principles of Organizing”?
a) Unity of purpose
b) Specialisation
c) Salary level of employees
d) Unity of command
Answer: c) Salary level of employees
22. For “Delegation of Authority” to be successful, what is necessary?
a) Clearly defined objectives
b) Only written orders
c) High salaries for employees
d) Small size of the organisation
Answer: a) Clearly defined objectives
23. “Centralization” means:
a) Concentration of decision-making authority at the top level
b) Decentralisation of resources
c) Empowering employees
d) Autonomy of departments
Answer: a) Concentration of decision-making authority at the top level
24. What is a disadvantage of a “Divisional Structure”?
a) Duplication of resources
b) Lack of specialisation
c) Slow decision-making process
d) Unsuitable for small organisations
Answer: a) Duplication of resources
25. Which statement is incorrect regarding an “Informal Organization”?
a) It appears in the organisation chart
b) It is spontaneous
c) It is based on social relationships
d) It facilitates faster communication
Answer: a) It appears in the organisation chart
26. What is a disadvantage of a “Functional Structure”?
a) Departmental narrowness
b) High cost
c) Lack of flexibility
d) Duplication of resources
Answer: a) Departmental narrowness
27. Why is “Coordination in Organization” essential?
a) The work of different departments is interrelated
b) It controls employee salaries
c) It reduces the size of the organization
d) It is only necessary for large organizations
Answer: a) The work of different departments is interrelated
28. Which is NOT a type of “Organization Structure”?
a) Functional structure
b) Divisional structure
c) Financial structure
d) Matrix structure
Answer: c) Financial structure
29. “Narrow Span of Control” means:
a) Fewer subordinates under one manager
b) More subordinates under one manager
c) Fewer levels in the organization
d) More levels in the organization
Answer: a) Fewer subordinates under one manager
30. “Organizational Culture” refers to:
a) Shared values, beliefs, and norms in an organization
b) Financial policies of the organization
c) Physical structure of the organization
d) Only the skill level of employees
Answer: a) Shared values, beliefs, and norms in an organization
31. Why is a “Flexible Organization Structure” needed?
a) To adapt to changing environments
b) To reduce employee salaries
c) To increase the size of the organization
d) Only to comply with government rules
Answer: a) To adapt to changing environments
32. What does “Hierarchy in Organization” mean?
a) Arrangement of authority levels in an organization
b) Friendship among employees
c) Financial structure of the organization
d) Stages of the production process
Answer: a) Arrangement of authority levels in an organization
33. The advantage of a “Committee Organization” is:
a) Utilization of collective knowledge
b) Quick decision-making
c) Low cost
d) Less need for coordination
Answer: a) Utilization of collective knowledge
34. A characteristic of an “Informal Leader” is:
a) Appointed by the organization
b) Accepted by group members
c) Holds formal authority
d) Only performs managerial tasks
Answer: b) Accepted by group members
35. What is NOT included in a “Job Description”?
a) Responsibilities of the position
b) Duties of the position
c) Employee’s salary details
d) Qualifications for the position
Answer: c) Employee’s salary details
36. The objective of “Organization Development” is:
a) To enhance organizational effectiveness
b) To reduce the number of employees
c) Only to increase profits
d) To lower production costs
Answer: a) To enhance organizational effectiveness
37. Which is NOT a barrier in “Organizational Communication”?
a) Clarity of the message
b) Bias
c) Noise
d) Organizational structure
Answer: a) Clarity of the message
38. Why is there resistance to “Organizational Change”?
a) Due to feelings of insecurity
b) Due to higher salaries
c) Due to reduced workload
d) Due to rewards from management
Answer: a) Due to feelings of insecurity
39. The advantage of a “Team Structure” is:
a) Integration of diverse expertise
b) Delayed decision-making
c) High cost
d) Rigid structure
Answer: a) Integration of diverse expertise
40. A characteristic of a “Network Organization” is:
a) Focus on core functions
b) Performing all functions internally
c) Rigid hierarchy
d) High control
Answer: a) Focus on core functions
41. An external factor influencing “Organizational Structure” is:
a) Technology
b) Market dynamics
c) Number of employees
d) Managers’ style
Answer: b) Market dynamics
42. The correct statement about “Formal and Informal Aspects of Organization” is:
a) Informal organization appears in the structure chart
b) Formal organization is guided by rules
c) Communication is slow in informal organization
d) Formal organization is based on social relationships
Answer: b) Formal organization is guided by rules
43. What is necessary for “Innovation in Organization”?
a) Willingness to take risks
b) Strict control
c) Resistance to change
d) Only lower-level employees
Answer: a) Willingness to take risks
44. Which is NOT a type of “Organizational Culture”?
a) Role culture
b) Power culture
c) Financial culture
d) Task culture
Answer: c) Financial culture
45. Which is NOT a measure of “Organizational Effectiveness”?
a) Profitability
b) Employee satisfaction
c) Number of employees
d) Customer satisfaction
Answer: c) Number of employees
46. A positive aspect of “Conflict in Organization” is:
a) Potential for creative change
b) Decreased productivity
c) Disrupted communication
d) Weakened team spirit
Answer: a) Potential for creative change
47. The importance of “Organizational Learning” is:
a) To maintain competitive advantage
b) To reduce the number of employees
c) Only to develop new products
d) To improve financial accounting
Answer: a) To maintain competitive advantage
48. A challenge of “Global Organizational Structure” is:
a) Cultural differences
b) Low competition
c) Simple communication
d) Uniform markets
Answer: a) Cultural differences
49. A characteristic of a “Virtual Organization” is:
a) Less need for physical space
b) Centralized control
c) Static structure
d) High operational costs
Answer: a) Less need for physical space
50. The “Principles of Organization” include:
a) Unity of purpose
b) Personal preference
c) Random structure
d) Flexible accountability
Answer: a) Unity of purpose
51. Which factor does NOT influence the “Decision Making Process in Organization”?
a) Organizational structure
b) Employees’ favorite color
c) Available information
d) Environmental uncertainty
Answer: b) Employees’ favorite color
52. A way to increase “Organizational Flexibility” is:
a) Multi-skill development
b) Rigid rules
c) Centralized control
d) Specialized roles
Answer: a) Multi-skill development
53. What is essential for successful “Organizational Change”?
a) Employee participation
b) Maintaining secrecy
c) Quick decisions
d) Centralization of authority
Answer: a) Employee participation
54. The primary purpose of an “Organization Chart” is:
a) To clarify relationships and responsibilities
b) To display employee salaries
c) To describe the production process
d) To showcase customer relations
Answer: a) To clarify relationships and responsibilities
55. An advantage of “Informal Communication” is:
a) Rapid information flow
b) Official documentation
c) Organizational control
d) Formal structure
Answer: a) Rapid information flow
56. What plays a key role in shaping “Organizational Culture”?
a) Founders’ values
b) Building design
c) Employees’ salary levels
d) Market conditions
Answer: a) Founders’ values
57. The objective of “Job Analysis” is:
a) To understand job requirements
b) To evaluate employees
c) To decide salary structure
d) To determine organizational size
Answer: a) To understand job requirements
58. Which is NOT part of “Organizational Development” interventions?
a) Team building
b) Salary increments
c) Sensitivity training
d) Feedback surveys
Answer: b) Salary increments
59. “Delayering” in “Organizational Structure” means:
a) Reducing the number of management levels
b) Increasing the number of departments
c) Increasing employee count
d) Reducing span of control
Answer: a) Reducing the number of management levels
60. Which is NOT an indicator of “Organizational Performance”?
a) Productivity
b) Employee attendance rate
c) Building size
d) Quality standards
Answer: c) Building size
61. The process of “Organizational Learning” involves:
a) Learning from experiences
b) Only formal training
c) Hiding mistakes
d) Ignoring new technologies
Answer: a) Learning from experiences
62. To promote “Organizational Innovation,” what is necessary?
a) A culture of risk-taking
b) Strict control
c) Traditional methods
d) Bureaucratic structure
Answer: a) A culture of risk-taking
63. The purpose of a “Quality Circle” is:
a) To solve work-related problems
b) To evaluate employees
c) To decide salary structure
d) To reduce organizational size
Answer: a) To solve work-related problems
64. A way to enhance “Organizational Commitment” is:
a) Employee participation
b) Strict discipline
c) Limited communication
d) Restricted responsibilities
Answer: a) Employee participation
65. “Outsourcing” in “Organizational Structure” means:
a) Assigning non-core activities to external agencies
b) Performing all tasks internally
c) Establishing new departments
d) Increasing employee count
Answer: a) Assigning non-core activities to external agencies
66. Changing “Organizational Culture” takes time because:
a) It is deeply rooted in established values and beliefs
b) Employee training is expensive
c) Changing org charts is difficult
d) Managers dislike it
Answer: a) It is deeply rooted in established values and beliefs
67. The importance of “Organizational Ethics” lies in:
a) Long-term success
b) Only meeting legal requirements
c) Reducing competition
d) Cutting employee numbers
Answer: a) Long-term success
68. “Corporate Social Responsibility” includes:
a) Responsibility toward society
b) Only shareholders’ interests
c) Compliance with government rules
d) Maximizing profits
Answer: a) Responsibility toward society
69. Which is NOT a method to resolve “Organizational Conflict”?
a) Reconciliation
b) Procrastination
c) Collaboration
d) Compromise
Answer: b) Procrastination
70. “Organizational Development” requires:
a) A long-term perspective
b) Quick profits
c) Controlling employees
d) Centralization of resources
Answer: a) A long-term perspective
71. An example of “Organizational Learning Disability” is:
a) “This is how we do things here” mindset
b) Adopting new technologies
c) Encouraging experiments
d) Accepting diverse ideas
Answer: a) “This is how we do things here” mindset
72. The significance of “Organizational Memory” is:
a) Learning from past experiences
b) Controlling employees
c) Financial accounting
d) Reducing production costs
Answer: a) Learning from past experiences
73. Which is NOT a stage in “Organizational Change”?
a) Stabilizing the change
b) Ignoring resistance
c) Understanding the need for change
d) Implementing new processes
Answer: b) Ignoring resistance
74. A key feature of “Organizational Leadership” is:
a) Providing vision
b) Maintaining control
c) Promoting bureaucracy
d) Focusing on personal gains
Answer: a) Providing vision
75. The most critical factor for “Organizational Success” is:
a) Human resources
b) Physical resources
c) Building size
d) Location
Answer: a) Human resources