MCQs For NCERT Class 12 Business Studies Chapter 1 Nature and Significance of Management

Please refer to the MCQ Questions for Class 12 Business Studies Chapter 1 Nature and Significance of Management with Answers. The following Nature and Significance of Management Class 12 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Business Studies with Answers for all chapters in your NCERT Class 12 Business Studies book.

Nature and Significance of Management Class 12 MCQ Questions with Answers

See below Nature and Significance of Management Class 12 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. Which one of the following statements is not correct?     
(a) Management is a goal-oriented process.
(b) Management is a continuous process.
(c) Management is a dynamic process.
(d) Management is a rigid process.

Question. Management is a ________ directed process as it aims at achieving specified goals.   
(a) Continuously
(b) Future
(c) Goal
(d) Deliberately

Question. ________ is a systematised body of knowledge that explains certain general truths or operation of general laws.   
(a) Science
(b) Art
(c) Profession
(d) Art and Profession both

Question. Which one of the following is not an importance of management?     
(a) Integrating various interest groups
(b) Developing society
(c) Disciplining employees
(d) Inculcating creativity

Question. Management is not      
(a) an applied science.
(b) a pure science.
(c) an art.
(d) an art and science both.

Question. Managing Director is the position of __________ level of management in a large company. 
(a) Top
(b) Middle
(c) Lower
(d) Middle and Lower

Question. Management is multidimensional because it has _________ dimension(s).   
(a) One
(b) Two
(c) Three
(d) Four

Question. The process of getting work done through others is known as   
(a) effectiveness
(b) efficiency
(c) management
(d) planning

Question .______ Aims to help each other   
(a) Cooperation 
(b) Planning
(c) Coordination
(d) Staffing

Question .Coordination is:   
(a) The essence of management
(b) Function of Management
(c) An objective of management
(d) None of the above

Question .Providing the facility for Schools and hospitals is the _____objective of management.   
(a) Social Objectives
(b) Organisational Objective
(c) Personal Objective
(d) None of the above

Question .Chief Marketing Officer and Managing Director is the part of _________   
(a) Operational Management
(b) Top Management
(c) Middle Management
(d) None of the above

Question .Which one of the following is not an objective of Management?       
(a) Political Objective
(b) Social Objective
(c) Organisational Objective
(d) Personal Objectives

Question . Management is _______   
(a) Wastage of time
(b) Multi-Dimensional
(c) Not required in small business firms
(d) Individual Activity

Question . Management is a __________ Activity   
(a) Group
(b) Supervisor Level
(c) Accounting
(d) Individual

Question . The word________denotes a function, a task, a discipline.   
(a) Management
(b) Leadership
(c) Motivation
(d) None of the above

Question .Mainly planning is concerned with ________   
(a) Formulation of Policies and Strategies
(b) Management in Action
(c) Manpower Planning
(d) None of the above

Question .A process needs   
(a) Throughout to execute
(b) Timer to execute
(c) Resources to execute
(d) Both a and b

Question. Irfan Khan and Naseeruddin Shah, both got training from National School of Drama, New Delhi but they perform differently. Which feature of art is associated with the above fact?   
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application

Question. A doctor has to obtain certificate from the Medical Council of India to practice his medical profession.   
Which feature of the profession is revealed here?
(a) Ethical code of conduct
(b) Restricted entry
(c) Service motive
(d) Professional association

Question. Policy formulation is the function of   
(a) top-level managers
(b) middle-level managers
(c) operational management
(d) all of these

Question. This level of management is responsible for all the activities of the business and for its impact on society. Identify the level of management:   
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Both A and B

Question. Saksham is responsible for taking decision on which machinery to be purchased to improve the productivity of the organisation. At which level Saksham is working?   
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Supervisory Level

Question. Human Resource Department of any organisation has to ensure the adequate number of employees available throughout the organisation. At which level a human resource manager works?   
(a) top-level management
(b) middle-level management
(c) operational management
(d) all of these

Question. Which level of management is concerned with developing cooperation with other departments for smooth functioning of organisation?   
(a) Top level
(b) Supervisory level
(c) Middle level
(d) Operational level

Question. Which of the following function is performed by the middle-level management?     
(a) Analysis of business environment and its implication for survival of organisation.
(b) Maintenance of quality output and minimisation of wastage.
(c) Formulation of organisational goals and strategies.
(d) Interpretation of the policies framed by the top management.

Question. Arun is responsible for making annual appraisal report of line managers. At which level of management Arun is working?   
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Supervisory Level

Question. Google and Microsoft make the provision of crèche, laundry, gym, and entertainment facilities for their employees, which objective of management is achieved by the management?   
(a) Social objective
(b) Personnel objective
(c) Organisational objective
(d) Economic objective

Question. Earning profit is essential to cover the costs, survival and growth. Which objective of the management has been referred here?   
(a) Social objective
(b) Organizational objective
(c) Personnel objective
(d) Individual objective

Question. Nestle manufactures its products by using environment friendly methods of production. It is referred to ______ of the management.   
(a) Individual objective
(b) Organisational objective
(c) Social objective
(d) Economic objective

Question. Top-level management does not   
(a) control the activities of all the departments of the organisation.
(b) make sub-plans for the lower level.
(c) determine the objectives and policies of the organisation.
(d) establish contacts with the outside world.

Question. In which category does management fall?     
(a) Well-established profession
(b) Semi-profession
(c) Emerging profession
(d) Marginal profession

Question. Top management is concerned with formulation of   
(a) guidelines for supervisors.
(b) long-term plans.
(c) short-term plans.
(d) None of these.

Question. The element that aims at integrating group efforts to achieve group objectives is called ________.     
(a) Cooperation
(b) Coordination
(c) Management
(d) Directing

Question. Coordination is     
(a) a management function.
(b) the essence of management.
(c) an objective of management.
(d) a social objective.

Question. “It provides the requisite amount, quality, timing and sequence of efforts which ensures that planned  objectives are achieved with a minimum of conflicts”. Identify the concept.   
(a) Controlling
(b) Coordination
(c) Planning
(d) Organising

Question. At what level Kavita Mendiratta is working?   
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) Supervisory Level

Question. Which feature of management is discussed in above case study? 
(a) Management is all Pervasive
(b) Management is Intangible
(c) Management is a Continuous Process
(d) Management is Multidimensional

Question: A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Question: Finding out deficiencies in implementation of plans, Identify the functions of this management
(a) Controlling
(b) Staffing
(c) Directing
(d) Co-Ordination

Question: In which level coordination in the activities of workers to ensure work progresses as per plans
(a) Lower level
(b) Middle level
(c) Top level
(d) None of the options

Question: Setting Objective is a function of:-
(a) Middle level management
(b) Operational level management
(c) Top level Management
(d) None of the above

Question: Which force binds all other functions of management
(a) Production
(b) Coordination 
(c) Finance
(d) Staffing

Question: Planning, Organising, Staffing, Directing and Controlling is the sequence of functions in a process, Name it.
(a) Finance
(b) Production
(c) Management 
(d) Staffing 

Question: Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

Question: Name the level at which the managers are responsible for implementing and controlling the plans and strategies of the organisation
(a) Top Level
(b) Middle Level
(c) Lower Level
(d) All the options

Question: Whose specialty happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these

Question: Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Question: Mr. Gaurav is working as the Finance Manager of XYZ ltd. At what level of management is he working
(a) Middle level
(b) Lower Level
(c) Top level
(d) All the options 

Question: In which level needs coordination to integrate activities of the organisation for accomplishing the organisational goals
(a) Top level
(b) Middle level
(c) Lower level
(d) None of the options

Question: Which is not a function of Management of the following?
(a) Planning
(b) Controlling
(c) Cooperating.
(d) Staffing.

Question. ‘Management cannot be seen but its presence can be felt in the way the organisation functions.’ Which characteristic of management is mentioned in the given statement.
(a) Management is multidimensional
(b) Management is all pervasive
(c) Management is an intangible force
(d) Management is a dynamic function

Question. Which one of the following is not an organisational objective of management
(a) Survival
(b) Cooperation
(c) Growth
(d) Profit

Question. _______ refers to the orderly synchronising of efforts of subordinates to provide proper amount, timing and quality of execution. (Choose the correct alternative from the following)
(a) Planning
(b) Organising
(c) Coordination
(d) Cooperation

Question. Deeksha is working in ‘Telco Ltd.’ A company manufacturing toys. She found that the profits had started declining for the last six months. Profit has an implication for the survival of the firm. So She analysed the business environment to find out the reasons for this decline. From the following alternatives, identify the level of management at which Deeksha is working.
(a) Lower level Management
(b) Middle level Management
(c) Top Level Management
(d) None of the above

Question. One of the organisational objectives of management is ‘Growth of a business’. Which one of the following is not associated with measurement of business growth. 
(a) Sales volume
(b) Number of Employees
(c) Number of creditors
(d) Number of Products offered

Question. ‘Management has to adapt itself to the changing environment’. Identify from the following alternatives, the characteristic of management discussed in the given statement.
(a) Management is a group activity
(b) Management is a dynamic function
(c) Management is goal oriented
(d) Management is multidimensional

Question. ‘Management aims at reducing costs and increasing productivity’. Which importance of Management is highlighted in the given statement.
(a) Management helps in achieving group goals
(b) Management increases efficiency
(c) Management creates a dynamic organisation
(d) Management helps in achieving personal objectives

Question. _______ is a managerial function that is concerned with monitoring organisational performance towards the attainment of organisational goals. (Identify from the following alternatives)
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. Saurabh is managing director in a shoe manufacturing company. He has been doing well at this post. Under his guidance and leadership, the company has been actively achieving all the set targets as all the unrelated and diverse actions taken by different departments are given a common direction. Identify the characteristic of management discussed in the given case.
(a) Management is a goal oriented process
(b) Management is a continuous process
(c) Management is a group activity
(d) Management is a dynamic function

Question. Match the objective of management in Column I with their respective definition in Column II:

Column I	Column II
A) Survival	i) Increase in the number of employees, the number of products or increase in the capital investment, etc.
B) Profit	ii) A Vital Incentive for the continued successful operation of the enterprise
C) Growth	iii) An organisation must earn enough revenues to cover costs.

a) i), ii), iii)
b) ii), i), iii)
c) iii), ii), i)
d) i), iii), ii)

Question. Why management is considered a multi-faceted concept?
a) Because management is a complex activity that has three main dimensions: management of work, management of people and management of operations.
b) The activities involved in managing an enterprise are common to all organizations whether economic, social or political.
c) The process of management is a series of continuous, composite, but separate functions (planning, organizing, directing, staffing and controlling). These functions are simultaneously performed by all the managers at all the times.
d) None of the above

Question. Fab India Ltd. is a private limited company with several branches all over the country. It needs a team of designers and craftspeople. Similarly, another company Infosys technologies which develops software needs system analysts and programmers. Identify that which function of management is needed to satisfy the need of other companies.
a) Planning
b) Organizing
c) Staffing
d) Controlling

Question. Name the concept of management which involves the grouping of the required tasks into manageable departments or work units and establishment of authority and reporting relationships within the organizational hierarchy.
a) Planning
b) Organizing
c) Staffing
d) Controlling

Question. “Management is a force that cannot be seen but its presence can be felt in the way the organisation functions. The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied and there is orderliness instead of chaos.” Identify the characteristic of management highlighted above.
a) Management is an intangible force
b) Management is a group activity
c) Management is multi-dimensional
d) Management is a continuous process

Question. Assertion: planning cannot prevent problems
Reason : Planning can only predict the problems and prepare contingency plan to deal with them if and when they occur
a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c) Assertion (A)is true but Reason (R)is false
d) Assertion (A)is false but Reason(R)is true

Question. Assertion(A): Management creates a dynamic organisation.
Reason(R): It is generally seen that individuals in an organisation readily accept changes and face challenges.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason ( R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question. Assertion(A): Management translates the work in terms of goals to be achieved and assigns the means to achieve it.
Reason(R): All organisations exist for the performance of some work.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason ( R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question. Assertion(A): Satisfaction of personnel objectives is very important in an organisation.
Reason(R): Employees are one of the most valuable resources for an organisation
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanationof Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question. Assertion(A): Management is termed as a group activity.
Reason(R): Every member of a firm joins the organisation with a different purpose and work towards achievement of personal goals and not organisational goals.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

True / False

Question. Top management level is responsible for implementing plans and strategies of the organisation.

Question. “Management principles can be applied to all types of activities.”

Question. “Management involves the decisions by a manager and it is not a group activity.”

Question. “Coordination is required at all levels of management in all management functions.”

Question. Management is a full-fledged profession like legal, accounting and medical profession.       

Question. Management is a soft science.             

Question. Organisations that are more efficient are effective.              

Question. Efficiency means completing the right task correctly to achieve the predetermined goals within given time frame.      

Question. Effectiveness refers to completion of the right task correctly using minimum cost.              

Question. The main objective of any profession is to serve the society as a whole.

Question. The basic objective of any profession is to earn money.               

Question. Management affects employee morale but not a company’s financial performance.       

Question. The existence of management can be seen but it cannot be felt.          

Question. For management it is necessary to be efficient rather than effective.       

Question. Anyone can be called a manager irrespective of the educational qualifications possessed.         

Question. It is not mandatory anywhere in the world to possess a specialized degree to become a manager.      

Question. There is no compulsion for managers to be the members of any management association nor does it have any statutory backing.    

Question. Efficiency means doing the task correctly and with maximum cost.    

Question. Being efficient or doing work efficiently basically means finishing the given task. 

One Word

Question. Name that intangible force which creates productive relationships among resources of an organisation.   

Question. Name the process of designing and maintaining an environment in which individuals working together in groups, efficiently accomplish selected aims. 

Question. Rahul is of the opinion that management is needed in all types of organisations whether working for earning profits or for any social purpose. Which characteristic of management he holds in his view?             

Question. Name the process of working with and through others to effectively achieve organisational objectivesby efficiently using its limited resources in the changing environment.         

Question. Planning, Organising, Staffing, Directing and Controlling is the sequence of functions in a process. Name it.     

Question. Production manager tries to produce goods at minimum costs. Name the concept which is being focused by management.      

Question. “The principles of management can be applied to all types of activities.” Which characteristic of management is highlighted by this statement?           

Question. ‘‘In an organisation, employees are happy and satisfied, there is no chaos and the effects of management are noticeable.’’ Which characteristic of management is highlighted by this statement?            

Question. In an organisation targets are met according to plans, employees are happy and satisfied and there is orderliness instead of chaos. Which characteristic of management is being highlighted here?              

Question. “Successful organizations do not achieve their goals by chance but by following a deliberate process”.Identify the process highlighted here.      

Question. To meet the objectives of the firm, the management of JMD Infrastructures Ltd. offered employment to a physically challenged person. Identify the managerial objective it is trying to achieve.               

Question. ‘Management consists of an on-going series of functions.’ Which characteristic of management is highlighted by this statement?          

Question. Rahul is of the opinion that management is needed in all types of organisations whether working for earning profits or for any social purpose. Which characteristic of management he holds in his view?             

Question. “McDonald’s had to make changes in its menu when it started its business in India.” Which characteristic of management is highlighted in this statement?       

Question. “The functions of management are simultaneously performed by all mangers all the time.” Which characteristic of management is highlighted by this statement?    

Fill in the blanks

Question. Management increases ________by reducing ______ to increase productivity.           

Question. Functions of management are performed one after another as well as _______ by all managers all the time.               

Question. Management is a dynamic function as it ______ itself according to the changing environment.           

Question. In order to survive, an organisation must earn enough __________ to cover __________.                      

Question. As a part of society, every organisation whether it is business or non-business has a __________ to fulfill.             

Question. Management helps its people __________ to the changes in the environment.            

Question. Management is a ____________ process as different functions of management are simultaneously performed by all the managers all the time.           

Question. Management is a _____ function as it adapts itself according to the changing environment.          

Question. Coordination with various departments for smooth functioning of organization is done by ________ level of management.           

Question. Quality of output and safety standards are maintained by _________ level of management.                

Question. __________level of management passes on the instructions of management to the workers.               

Question. An organisation has a set of basic______ which are the basic reason for its existence.              

Question. Management is a complex activity that has _______ main dimensions.          

Question. The Multidimensional characteristics of management links _____. ______ and ______.               

Question. Management requires team work and _________of individual efforts in common direction.