MCQs For NCERT Class 12 Business Studies Chapter 2 Principles of Management

Please refer to the MCQ Questions for Class 12 Business Studies Chapter 2 Principles of Management with Answers. The following Principles 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.

Principles of Management Class 12 MCQ Questions with Answers

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

Question. Principles of management are not       
(a) behavioural.
(b) absolute.
(c) universal.
(d) flexible.

Question. “His father appreciated the Japanese culture but advised him to modify the principles as per the demand of the situation.” Identify the nature of principles of management.           
(a) General guidelines
(b) Mainly behavioural
(c) Flexible
(d) Contingent

Question. “For greater productivity, he believed in separation of planning and execution functions and decided to extend this concept to the shop floor.” Which technique of scientific management has been referred to in above lines?           
(a) Simplification
(b) Differential Piece Wage system
(c) Functional Foremanship
(d) Standardisation

Question. “He believed that on organization cannot succeed without winning the confidence of his employees and for that it is very important that management and workers both honour their commitments.” Identify Fayol’s principle of management highlighted in above lines.         
(a) Discipline
“(b) Equity
(c) Espirit de Corps
(d) Initiative

Question. Principles of management provide   
(a) readymade solutions to problems.
(b) general guidelines.
(c) methods and procedures.
(d) rules and regulations.

Question. Management principles differ from pure science principles because management principles are   
(a) vague.
(b) situation-bound.
(c) rigid.
(d) easy to learn.

Question. Principles of management are significant because these result in   
(a) taking initiative.
(b) adapting to new technology.
(c) employee satisfaction.
(d) optimum utilisation of resources.

Question. Which one of the following is not a principle of scientific management?   
(a) Functional foremanship
(b) Development of personnel
(c) Harmony, not discord
(d) Maximum, not restricted output

Question. Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?   
(a) Time Study
(b) Method Study
(c) Fatigue Study
(d) Motion Study

Question. Which scientific principle of management encourages employees to render their suggestions while taking important decisions?     
(a) Harmony, not Discord
(b) Science, not Rule of Thumb
(c) Cooperation not individualism
(d) Maximum, not Restricted Output

Question. Management should find ‘One best way’ to perform a task. Which technique of scientific management is defined in this sentence?       
(a) Time Study
(b) Motion Study
(c) Fatigue Study
(d) Method Study

Question. Which foreman ensures proper working condition of machineries ready for operation by workers?   
(a) Repair Boss
(b) Gang Boss
(c) Speed boss
(d) Inspector

Question. Unity of command is related to     
(a) superiors and subordinates.
(b) management and workers.
(c) planned actions.
(d) cooperation among employees.

Question. Gang plank is related to     
(a) communication.
(b) motivation.
(c) supervision of workers.
(d) incentives to workers. 

Question. Management principles are flexible whereas ______________ principles are rigid.   
(a) Pure Science
(b) Employment
(c) Scientific Management
(d) Art

Question. ___________ denotes concentration of authority at the top level.     
(a) Decentralisation
(b) Centralisation
(c) Coordination
(d) Delegation

Question. __________ is the technique in which each worker is supervised by eight supervisors.     
(a) Functional foremanship
(b) Unity of action
(c) Centralisation
(d) Simplification of work

Question. _________ principle of management puts emphasis on judicious application of penalties by the management.     
(a) Esprit de corps
(b) Order
(c) Division of work
(d) Discipline

Question. _________ principle of management states that there should be a place for everything and everything should be in its place.     
(a) Equity
(b) Discipline
(c) Order
(d) Esprit de corps

Question. __________ means one plan, one boss.   
(a) Unity of direction
(b) Unity of command
(c) Centralisation
(d) Gang Plank

Question. __________ involves harmony and team spirit among employees.     
(a) Discipline
(b) Esprit de corps
(c) Order
(d) Standardisation 

Question. Principles of management are not   
(a) universal
(b) flexible
(c) absolute
(d) behavioural

Question. Principles of management cannot be   
(a) defined
(b) applied anywhere
(c) tested in Laboratories
(d) part of Business

Question. How are principles of management formed?   
(a) By experiments in a laboratory
(b) By experiences of managers
(c) By experiences of customers
(d) By propagation of social scientists

Question. ‘Hindustan Lever Limited’ decided to divest in non-core business of chemicals and seeds.’ Which point of importance of principles of management is highlighted here?   
(a) Fulfilling social responsibility
(b) Optimum utilization of resources
(c) Meeting changing environment requirements
(d) Scientific decisions

Question. Principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes. Which of the following characteristic of principles of management is reflected in the above statement?   
(a) Principles are flexible in nature
(b) Principles are contingent
(c) Principles are behaviourial
(d) General guidelines

Question. The principles of science are ______ whereas the principles of management are _______ .   
(a) flexible/rigid
(b) rigid/flexible
(c) based on research/based on development
(d) permanent/temporary

Question. The principles of management can be changed according to the prevailing situation in organisation.   
This shows that management principles are
(a) flexible
(b) universal
(c) behavioral
(d) scientific

Question. ’The principles of management are dependent on the prevailing situation at particular point of time.’ Identify the nature of principles of management   
(a) Contingent
(b) Flexible
(c) Mainly behavioral
(d) Cause and effect relationship

Question. Which of the following option is false? Principles of management are       
(a) Applicable only in large firms
(b) Formed by practice and experience of managers
(c) Flexible
(d) Contingent

Question. _____ are guidelines to take decisions or actions while practicing ______.     
(a) Values, principles
(b) Values, techniques
(c) Principles, techniques
(d) Principles, value

Question. Which of the following is not a principle of management given by Taylor?       
(a) Science, not rule of thumb
(b) Functional foremanship
(c) Maximum, not restricted output
(d) Harmony, not discord

Question. Taylor focused his attention on       
(a) administrative level
(b) Top level
(c) Middle level
(d) Shop level

Question. ‘If this principle is violated, authority is undermined, discipline in jeopardy, order disturbed and stability threatened.’ Identify the principle of management       
(a) Discipline
(b) Unity of Direction
(c) Order
(d) Unity of Command

Question. ‘The Differential Piece Wage System technique is based on the principle of ________.       
(a) Equity
(b) Remuneration
(c) Subordination of individual interest to general interest
(d) Division of work

Question. Which contemporary techniques of management focuses on reduction of seven wastes of production?     
(a) Six Sigma
(b) Operation Research
(c) Lean Manufacturing
(d) Reengineering

Question. Which scientific technique/ work study establishes interchangeability of manufactured parts or products?       
(a) Motion Study
(b) Method Study
(c) Standardisation and Simplification
(d) Functional Foremanship

Question. The technique in which task of supervision is divided into several specialized functions with the help of eight specialists is       
(a) Standardization
(b) differential piece wage system
(c) simplification
(d) functional Foremanship

Question: Which is the objective of standardisation
(a) All the options
(b) To reduce product to fixed types, sizes, features etc.
(c) To establish interchangeability of various parts.
(d) To establish standards of excellence and quality in materials.

Question: The main objective of functional foremanship is _____
(a) Not to provide free time to workers
(b) Separate planning functions from executive functions
(c) To separate top level management from CEO
(d) Not to divide the work.

Question: What is the aim of Method study
(a) To find one best method of doing the job
(b) To find None method of doing the job
(c) To find Time method of doing the job
(d) All the options

Question: How many principles are given by Henry Fayol
(a) 20
(b) 14
(c) 18
(d) 16 

Question: Harmony, Not Discord principle is concerned with______________
(a) Management should share the gains of company with workers
(b) Observation and Analysis
(c) Scientific inquiry
(d) Investigation of Task

Question: Functional foremanship is concerned with ______
(a) Marketing
(b) Division of work
(c) Insurance
(d) Gang plank

Question: Who was the first to identity functions of management
(a) Henry Fayol
(b) James Lundy
(c) Harold Koontz
(d) F.W.Taylor

Question: The main objective of the motion Study is ______
(a) To provide more work to the workers
(b) To separate planning functions with other functions
(c) To eliminate unproductive movement
(d) To study standard time.

Question: Lifetime of Henry Fayol is ______________
(a) 1841 to 1925
(b) 1841 to 1930
(c) 1845 to 1925
(d) 1845 to 1930

Question: The method of time study will depend Upon
(a) Volume and frequency of the task
(b) Volume
(c) frequency of the task
(d) None of the options

Question. Which of the following is not a principle of management given by Taylor?
(a) Science not rule of thumb
(b) Functional foremanship
(c) Maximum not restricted output
(d) Harmony not discord

Question. XYZ Ltd. is engaged in producing electricity from domestic garbage. There is almost equal division of work and responsibility between workers and  Management. The management even takes workers into confidence before taking important decisions. All the workers are satisfied as the behaviour of the  management is very good. From the following options identify the principle of management discussed in the given case.
(a) Initiative
(b) Science not rule of thumb
(c) Cooperation not individualism
(d) Equity

Question. Simco Ltd. is manufacturing files and folders from the old clothes to discourage use of plastic files and folders. For this they employ people from nearby villages where very less job opportunities are available. An employee, Atul, designed a plan for the cost reduction but it was not welcomed by the production manager. Another employee gave the same suggestion for improvement in design, but it was also not appreciated by the production manager. From the following alternatives choose the principle of management described in the above para.
(a) Equity
(b) Initiative
(c) Order
(d) Discipline

Question. …………….. is the principle of management according to which a manager should replace ‘I’ with we’ in all his conversations with workers.
(a) Division of work
(b) Scalar chain
(c) Esprit de corps
(d) Cooperation not individualism

Question. ‘The application of principles of management is dependent upon the prevailing situation at a particular point of time’. Which nature of management principle is mentioned in given the statement.
(a) Behavioural
(b) Contingent
(c) Flexible
(d) Universal

Question. 15 new employees have started their career in Bhagwati Enterprises Ltd. The employees are new to the environment of the organisation and have no idea about the demands of the new job. The management has decided to give them three months of time to show their results. Which principle of Henri Fayol is mentioned here?
(a) Stability of personnel
(b) Discipline
(c) Order
(d) Unity of Direction

Question. Which technique of scientific Management helps in establishing interchangeability of manufactured parts and products. (choose the correct alternative)
(a) Standardisation of work
(b) Division of work
(c) Functional foremanship
(d) Motion study

Question. Which of the following statements best describes mental revolution.
(a) It implies change of attitude
(b) The management and workers should not play the game of one upmanship
(c) Both Management and workers require each other
(d) Workers should be paid more wages

Question. “Any one can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that Management does not fulfil in the statement being discussed above.
(a) Ethical code of Conduct
(b) Professional Association
(c) Restricted Entry
(d) Service Motive

Question. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order

Question. In today’s dynamic business environment, companies are specialising in their core competency and divesting non- core businesses. In this context, one may cite the decision of Hindustan Unilever limited in divesting non-core businesses of chemicals and seeds. Some companies are outsourcing their non-core activities like share-transfer management and advertising to outside agencies. So much so, that even core processes such as R&D, manufacturing and marketing are being outsourced today. Thus, the significance of ‘Business Process outsourcing’ (BPO) and ‘Knowledge Process outsourcing’ (KPO) has increased. Identify the significance of principles of management highlighted above.
(a) Providing managers with useful insight into reality
(b) Optimum utilisation of resources
(c) Meeting changing requirements
(d) Scientific decisions

Question. According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction

Question. The Delhi Government imposes ban on use, storage, sale and manufacture of plastic after considering its adverse impact on environment and ecology. Which principle of Fayol is mentioned in the above decision.
(a) Initiative
(b) Division of work
(c) Esprit de corps
(d) None of these

Question. Match the following by choosing the correct option.

Column A	Column B
(i) Each work is done by a trained specialist	(a) Unity of Command
(ii) Judicious application of penalties	(b) Unity of Direction
(iii) Dual subordination should be avoided	(c) Division of work
(iv) One head and one plan	(d) Discipline

(a) (i)-(a); (ii)-(b); (iii)-(c); (iv)-(d)
(b) (i)-(b); (ii)-(a); (iii)-(d); (iv)-(c)
(c) (i)-(c); (ii)-(d); (iii)-(a); (iv)-(b)
(d) (i)-(d); (ii)-(c); (iii)-(a); (iv)-(b)

Question. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility.
(b) Esprit De Corps
(c) Order
(d) None of the above

Question. “Unity of command means one employee getting orders and instructions from one supervisor”.   

Question. Time study involves analysing movements involved in performing an activity.    

Question. Scalar chain involves direct communication between two employees at horizontal level.     

Question. Discipline principle of management leads to development of team spirit.   

Question. Discipline refers to compliance of rules and regulations by subordinates working at different levels in an organisation.     

Question. One group of workers should receive orders and instructions from and be answerable to only one boss.

Question. Esprit de corps means all the employees should be treated fairly without any discrimination.           

Question. Employees’ turnover refers to the turnover achieved by employees.       

Question. Management principles are derived after observations and experimentations when certain conditions are present.   

Question. Principle of management are behaviourial in nature and these can be applied to human beings only.       

Question. Principles of management contribute towards the development of management both as a science and as an art. 

Question. Principle of order relates to orders and instructions given by superior to his subordinates.   

Question. Principles of Fayol are developed on the basis of scientific experiments.         

Question. Fayol suggested that there is a need to balance subordinate involvement through decentralization.      

Question. The extent of the applicability of principles of management vary with the nature of the organisation.     

One Word

Question. Name the practitioner, who was the first to identify the functions of management like planning, organising, staffing, directing and controlling.     

Question. ‘‘The principles of management are the guidelines to action but do not provide ready-made straight jacket solutions to all managerial problems.’’ Which characteristic of principles of management is referred to here?   

Question. Identify the techniques of scientific management when there is change in the outlook between workers and management towards each other for mutual gains.      

Question. Which principle of management is violated when a manager allows one month leave to a supervisor with pay and only one-week medical leave to an accountant.         

Question. Which principle of management is violated when Aman, a worker in Malik Crafts Limited, through his personal experience, was able to identify the time-saving techniques of production but when he approached management with his suggestion he was not appreciated.            

Question. Name the principle which suggests that authority and communication should follow the official chain of command.           

Question. Which expert of management worked at the operative level in the organisation?           

Question. Which technique of scientific management recommends for higher remuneration for the efficient workers and helps in the improvement of inefficient workers?    

Question. Name the principle of management which states that there should be one and only one superior for every individual employee.        

Question. Name the technique of scientific management that lays down that there should be two types of rates of wage payment.        

Question. Which technique of scientific management relates to multiple accountability?       

Question. Which principle of management suggests ‘a place for everyone/everything and everything/ everyone in proper place?      

Question. The principles of management are not rigid and can be modified when the situation demands.’’     
Which nature of management principles is being discussed here?

Question. Which principle of management suggests that communication from top to bottom should follow the official lines of command?         

Question. Name the principle of management which requires good supervisors at all levels, clear and fair agreements and judicious application of penalties?         

Question. Factory owners or managers rely on personal judgment in attending to the problems they confront in the course of managing their work. Which principle of Taylor is it referring to?   

Question. Which technique of Taylor acts as the strongest motivator for a worker to reach standard performance?

Question. Which scientific principle of management talks about rewarding the employees for their constructive suggestions.        

Fill in the Blanks

Question. The objective of ____ study is to determine the one best way to perform the job.         

Question. Functional foremanship is an extension of the principle of __________.               

Question. __________ refers to the process of setting standards for every business activity.     

Question. __________ aims at eliminating superfluous varieties, sizes and dimensions.      

Question. The objective of __________ is to find out one best way of doing the job.                  

Question. Taylor believed that there was only ____ best method to maximise efficiency.       

Question. Sharing of _____between management and workers leading to complete _____.      

Question. The concept of functional foremanship was extended to the _______level of the shop floor.          

Question. To establish interchange ability of manufactured parts and products is the objective of _______.          

Question. Through _______ study, Taylor was able to design suitable equipment and tools to educate workers on their use.       

Question. __________ means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.          

Question. As per one of the principles of scientific management, one best method to do a work is developed through study and analysis and it substitutes     _______________.       

Question. The principle, __________ is an extension of principle of ‘Harmony not discord’.         

Question. Industrial efficiency depends to a large extent on __________ competencies.           

Question. Taylor advocated separation of __________ and __________ functions.