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

MCQs Class 12

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.

Answer

D

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

Answer

C

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

Answer

A

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

Answer

C

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

Answer

B

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

Answer

A

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

Answer

C

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

Answer

C

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

Answer

A

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

Answer

A

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

Answer

A

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

Answer

B

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

Answer

A

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

Answer

B

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

Answer

A

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

Answer

A

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

Answer

A

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

Answer

C

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

Answer

D

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

Answer

D

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

Answer

A

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

Answer

A

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

Answer

B

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

Answer

C

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

Answer

C

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.

Answer

D

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

Answer

B

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

Answer

B

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

Answer

B

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

Answer

C

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.

Answer

B

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

Answer

C

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

Answer

B

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

Answer

B

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

Answer

B

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

Answer

B

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

Answer

A

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

Answer

B

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

Answer

B

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

Answer

A

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

Answer

A

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

Answer

C

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

Answer

B

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 

Answer

C

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

Answer

C

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

Answer

B

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

Answer

B

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

Answer

C

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 

Answer

A

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

Answer

A

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

Answer

C

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

Answer

C

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

Answer

B

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

Answer

C

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

Answer

C

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

Answer

C

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

Answer

B

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

Answer

B

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

Answer

D

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

Answer

C

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

Column IColumn II
A) Survivali) Increase in the number of employees, the number of products or increase in the capital
investment, etc.
B) Profitii) A Vital Incentive for the continued successful operation of the enterprise
C) Growthiii) 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)

Answer

C

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

Answer

A

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

Answer

C

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

Answer

B

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

Answer

A

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

Answer

A

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.

Answer

C

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.

Answer

A

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.

Answer

A

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.

Answer

C

True / False

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

Answer

False; it is the responsibility of the middle management level.

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

Answer

True; management is pervasive.

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

Answer

False; management is a group activity because it unites individual efforts in common direction.

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

Answer

True; coordination is pervasive.

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

Answer

False

Question. Management is a soft science.             

Answer

True

Question. Organisations that are more efficient are effective.              

Answer

False

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

Answer

False

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

Answer

True

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

Answer

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

Answer

False

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

Answer

False

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

Answer

False

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

Answer

False

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

Answer

True

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

Answer

True

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

Answer

True

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

Answer

False

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

Answer

False

One Word

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

Answer

Management

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

Answer

Management

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?             

Answer

Management is universal/all pervasive

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

Answer

Management.

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

Answer

Management.

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

Answer

Efficiency

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

Answer

Management is all pervasive.

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?            

Answer

Management is intangible.

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?              

Answer

Management is an intangible force.

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

Answer

Management.

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.               

Answer

 Social Objective.

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

Answer

Management is a continuous process.

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?             

Answer

 Management is universal/all pervasive

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?       

Answer

 Management is dynamic.

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

Answer

Management is a continuous process.

Fill in the blanks

Question. Management increases ________by reducing ______ to increase productivity.           

Answer

 efficiency/costs

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

Answer

simultaneously

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

Answer

 adapts

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

Answer

revenues/costs

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

Answer

 social obligation

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

Answer

adapt

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

Answer

continuous

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

Answer

dynamic

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

Answer

middle

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

Answer

lower

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

Answer

Supervisory / operative

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

Answer

goals

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

Answer

three

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

Answer

work, people, operations

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

Answer

coordination

Nature and Significance of Management Class 12 MCQ Questions