Important MCQs of Nature and significance of Management of BST Class 12

Looking for Important MCQs (Multiple Choice Questions) of chapter 1 Nature and significance of Management chapter of Business studies Class 12 CBSE, ISC and other state Board.

We have made a good collection of very important MCQs of Chapter 1 of Business studies class 12.

Multiple Choice Questions of Nature and significance of Management chapter of BST class 12

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Which of the following is an organizational objective of the management?

a) Survival
b) Women Empowerment
c) Profit
d) All of these

Ans – a), c)

‘A business needs to add to its prospects in long run’. Which organizational objective of
management is highlighted in the given statement?

a) Growth
b) Profit
c) Survival
d) None of these

Ans – a)

‘The activities involved in managing an enterprise are common to all organizations whether
economic, social or political. Which characteristic of management is highlighted in the
given statement.

a) Intangible force
b) Group Activity
c) Dynamic Function
d) Pervasive

Ans – d)

The manager of Climax Ltd. achieved the target production, but at a higher production cost.
In this case, Manager is________but not_________.

a) Efficient, Honest
b) Effective, Efficient
c) Efficient, Effective
d) None of these

Ans – b)

Shivram is working as a Finance Manager in Mercury Ltd. State the management level at
which he is working.

a) Top Level
b) Supervisory Level
c) Middle Level
d) None of these

Ans – c)

Which of the following is not a dimension of management?

a) Management of work
b) Management of People
c) Management of operations
d) Management of Ideas

Ans – d

Name the level of management involved in taking key decisions.

a) Top-level Management
b) Middle-level Management
c) Lower level Management
d) Either (b) or (c)

Ans – a)

_________helps in achieving group goals by giving proper direction to the efforts of all
individuals

a) Work
b) Management
c) Society
d) None of these

Ans – b)

Identify the social objectives from the following.

a) Providing good quality products at reasonable prices
b) conducting business in a fair and lawful manner
c) Expansion of the organization
d) Both a) and b)

Ans – d)

At which level of management, managers are responsible for maintaining the quality output
and safety standards?

a) Top-level management
b) Middle-level management
c) Lower level management
d) Both b) and c)

Ans – c)

Which of the following statements is incorrect?

a) Every individual who is working in an organization desires a handsome salary, peer
recognition etc.
b) Every organization has a set of goals to be achieved
c) Management has some social responsibilities towards society
d) None of the above

Ans – d)

Identify the nature of management when it is practiced as the personal application of existing
knowledge to achieve desired results.

a) Management as a science
b) Management as an art
c) Management as a profession
d) All of the above.

Ans – b)

Management is the process of working with and through others to effectively achieve
organizational objectives by efficiently using limited resources in the changing environment,
is given by

a) Henry Fayol
b) Harold Koontz
c) Kreitner
d) None of these

Ans – c)

Why is coordination needed in a large enterprise?

a) To minimize their profits
b) To perform their task slowly
c) To bind the efforts of all individuals
d) All of the above

Ans – c)

What is the main focus of management?

a) To complete tasks efficiently and effectively
b) To complete tasks efficiently but not effectively
c) To complete tasks effectively but not efficiently
d) None of the above

Ans – a)

An organization is a collection of diverse activities and different individuals. Which
characteristic of management is defined by this statement?

a) Intangible force
b) group activity
c) Goal-oriented process
d) All of these

Ans – b)

Refers to the management of human resources, which are the most important assets for an
organization.

a) Management of work
b) Management of operations
c) Management of People
d) None of the above

Ans – c)

Athens Ltd is an MNC which produces cellphones. Currently, Athens Ltd is under huge losses
due to the failure of its much-hyped product in the market. R&D department and marketing
department are blaming each other for this failure. In your opinion, Athens Ltd is lacking
which quality of management?

a) Planning
b) Controlling
c) Co-ordination
d) Directing

Ans – c)

To become a Chartered Accountant in India, a candidate has to clear a specified examination
conducted by the institute of chartered accountants of India. Which feature of the profession
is being revealed?

a) Ethical code of conduct
b) Restricted Entry
c) Well defined body of knowledge
d) Professional association

Ans – b)

star Ltd. is manufacturing electrical items by using environment friendly methods of production.
Which management objective is used here?

a) Social Objective
b) Organisational Objective
c) Individual Objective
d) Economic Objective

Ans – a)

An organization consists of diverse individuals with different needs, who join the organization
for different purposes, but as members of the organization, they work together to achieve
organizational goals. which feature of management is being highlighted?

a) Goal-Oriented
b) Pervasive Function
c) Group Activity
d) Continous Process

Ans – c)

To cooperate with other departments for smooth functioning of the organization highlights
the function of_________level of management.

a) Top
b) Supervisory
c) Middle
d) None of these

Ans – c)

Max ltd. Needed funds to fulfill a big order. The management of the company borrowed money
from a financial institution @ 15% interest, while the prevailing rate of interest was 11%.
As a result of the funds, the company was able to achieve the target. According to you,
management was__________

a) Effective
b) Efficient
c) Both a) and b)
d) Inefficient

Ans – a)

According to which function of management, Thinking before doing is best suited?

a) Planning
b) Organising
c) Directing
d) Controlling

Ans – a)

Which of the following is a characteristic of Management?

a) it is pervasive
b) It is profit Oriented
c) It is multidimensional
d) It is continuous Process

Ans – a), c), d)

Management is a:

a) A science
b) An art
c) Both science and art
d) Neither

Ans – c)

Arnav has recently started a business to sell computers. He hired a shop in Nehru Place
in New Delhi, where he assembles various components to make computers and supplies them
as per order. He performs a series of composite but separate functions simultaneously
and ensures that computers are delivered in time as per orders. These functions are performed
by all managers at all times. The feature of management highlighted above is:

a) Management is a continuous process
b) Management is pervasive
c) Management is dynamic
d) Management is a group activity

Ans – a)

Name the process of working with and through others to effectively achieve organisational
objectives by efficiently using limited resources in a changing environment.

a) Management
b) Planning
c) Organising
d) Controlling

Ans – a)

Efficiency:

a) Focuses on optimum use of resources
b) Involves cost-benefit analysis
c) Means doing the task correctly and with minimum cost
d) All of the above

Ans – d)

General Manager belongs to____________level, while production Manager belongs to_______
level.

a) Middle, Top
b) To, Middle
c) Top Lower
d) Middle, Lower

Ans – b)

A manager applies the acquired knowledge in a personalized and skillful manner in the light
of the realities of a given situation. The given statement indicates that management is:

a) A science
b) An art
c) A profession
d) None of these

Ans – b)

Following is the feature of ‘profession’:

a) Personalised Application
b) Ethical code of conduct
c) Universal validity
d) Service Motive

Ans – b), d)

Profit is essential for covering the cost and risks of the business. Which management objective
is discussed here?

a) Social Objective
b) Personal Objective
c) Organisational Objective
d) None of these

Ans – c)

“Management has to adapt itself according to the changing environment”. Which feature of
management is highlighted in the given statement?

a) Continous Process
b) Goal-Oriented
c) Group Activity
d) Dynamic Function

Ans – d)

A lawyer has to become a member of the Bar Council, to practice law in India. Which feature
of the profession is being highlighted?

a) Ethical code of conduct
b) Professional Association
c) Service Motive
d) Restricted Entry

Ans – b)

Survival is possible only when an organization is able to earn enough revenue to cover its
costs. Which management objective is highlighted?

a) Organisational Objective
b) Individual Objective
c) Social Objective
d) None of these

Ans – a)

‘Management can not be seen but its presence can be felt. Which characteristic of
management is highlighted in the given statement?

a) Group Activity
b) Dynamic Function
c) Intangible Force
d) Continous Process

Ans – c)

Providing proper working conditions and ensuring that quality of output is maintained
is the function of_____________level of management.

a) Operational
b) Middle
c) Top
d) All of these

Ans – a)

Climax Ltd is engaged in manufacturing calculators. The firm decided to provide employment
to disadvantaged sections of society. Which objective of management is discussed here?

a) Individual Objective
b) Social Objective
c) Organisational Objective
d) None of these

Ans – b)

Management must be:

a) Effective
b) Efficient
c) Both a) and b)
d) Either a) or b)

Ans – c)

The objective of management which consistently creates economic value for various
constitutes of society are:

a) Organisational Objective
b) Social Objective
c) Personal Objective
d) Both Social and Personal Objective

Ans – b)

Anyone can be called a manager irrespective of the educational qualification possessed.
Identify the characteristic of the profession that management does not fulfill in the
statement being discussed above.

a) Ethical code of conduct
b) Professional Association
c) Restricted Entry
d) Service Motive

Ans – c)

Even where members of a department willingly cooperate and work, a manager has to
coordinate the efforts of different people in a conscious manner. Identify the
characteristic of coordination discussed above.

a) Coordination ensures unity of action
b) Coordination is a deliberate function
c) Coordination is a continuous process
d) Coordination is an all-pervasive function

Ans – b)