MCQ Chapter 1 Nature and Significance of Management Class 12 Business Studies

Please refer to Nature And Significance Of Management MCQ Questions Class 12 Business Studies below. These MCQ questions for Class 12 Business Studies with answers have been designed as per the latest NCERT, CBSE books and syllabus issued for the current academic year. These objective questions for Nature And Significance Of Management will help you to prepare for the exams and get more marks.

Nature And Significance Of Management MCQ Questions Class 12 Business Studies

Please see solved MCQ Questions for Nature And Significance Of Management in Class 12 Business Studies. All questions and answers have been prepared by expert faculty of standard 12 based on latest examination guidelines.

Question. A ________ chain is formed from the top-level management to the lower-level management.
(a) Vertical
(b) Thick
(c) Scalar
(d) Small

Question. “Art is bringing about of a desired result through application of skill”. Whose statement is this?
(a) T.L. Massie
(b) G.R. Terry
(c) Prof. Dalton E. McFarland
(d) None of these

Question. ‘Thinking before doing’, under which function of management is this performed?
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. What information do we get about coordination through the medium of interdependence of various processes?
(a) Meaning
(b) Characteristics
(c) Need
(d) None of these

Question. Cooperation means ________ .
(a) Desire to work jointly
(b) Determining Activities
(c) Both the above
(d) None of the above

Question. At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-leve
l (d) None of these

Question. What happens when the management of an organisation gets weakened?
(a) Organisation progresses
(b) Production increases
(c) Profit increases
(d) Organisation faces heavy loss

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

Question. What is the focus of attention when a manager is busy in planning activity?
(a) Coordination
(b) Directing
(c) Controlling
(d) Staffing

Question. How does a manager want to achieve his objectives?
(a) Efficiently
(b) Effectively
(c) Efficiently and effectively
(d) None of the above

Question. Under what function of management does the work of filling posts with people fall?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Question. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Question. Management is important because:
(a) It helps in achieving group goals
(b) It helps in development of society
(c) It increases efficiency
(d) All of the above

Question. Under what function of management does the determining of structure of roles fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. In the context of business what does research refer to?
(a) Finding out new products
(b) Finding out new markets
(c) Finding out new methods of distribution
(d) All the above

Question. Which of the following has formalised methods of acquiring training and experience?
(a) Management
(b) Law
(c) Medical
(d) All of these

Question. Management is a/an
(a) Art
(b) Science
(c) Profession
(d) All of the above

Question. The following is not an objective of management
(a) earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Question. Name the country in which management is accepted as profession.
(a) America
(b) Japan
(c) India
(d) America and Japan

Question. By evaluating results what does management try to find out and then takes corrective action.
(a) Profit
(b) Loss
(c) Deviations
(d) None of these

Question. Levels of management in an organisation serve as a ________ line among the different managerial posts.
(a) Strong
(b) Dividing
(c) Weak
(d) Straight

Question. The principles of Physics and Chemistry are stable. What is your opinion about management?
(a) Stable
(b) Unstable
(c) No principle is available
(d) None of these

Question. “Coordination is not a separate function of management but it happens to be the final truth of all functions.” In what context this observation has been made?
(a) Coordination is the essence of management
(b) Coordination is not established automatically
(c) Coordination is a continuously moving process
(d) None of these

Question. Management is:
(a) An Activity
(b) A process
(c) A Tradition
(d) An Illusion

Question. What contributes to the elimination of complexities of large-scale organisations?
(a) Planning
(b) Directing
(c) Controlling
(d) Coordination

Question. To which level of management do the managers of first-line belong?
(a) Lower-level
(b) Middle – level
(c) Top-level
(d) None of these

Question. Management is
(a) an art
(b) a science
(c) both art and science
(d) neither

Question. Management may be called which of the following science?
(a) Perfect Science
(b) Physics
(c) Applied Science
(d) Chemistry

Question. For which of following minimum qualification has not been prescribed?
(a) Manager
(b) Doctor
(c) Lawyer
(d) Chartered Accountant

Question. Which is not a function of management of the following:
(a) planning
(b) staffing
(c) cooperating
(d) controlling

Question. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Question. Which of the following have no representative professional organisations available?
(a) Law
(b) Management
(c) Medical
(d) Accountancy

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

Question. What is the name of the management institute established in India?
(a) IIT
(b) AIMA
(c) IIM
(d) ICICI

Question. What, out of the following, does not fall under directing?
(a) Planning
(b) Supervision
(c) Leadership
(d) Motivation

Question. Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of management
(d) None of these

Question. What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Question. What type of power management is?
(a) Visible
(b) Invisible
(c) Separate
(d) Collective

Question. What is that area called where the non-managerial members work?
(a) Shopping Area
(b) Showroom Area
(c) Platform Area
(d) Factory Area

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. Coordination is needed where the efforts of ________ persons are required?
(a) One person
(b) Two persons
(c) Three persons
(d) Many persons

Question. Which degree is essential to become a manager?
(a) B.Com.
(b) M.Com.
(c) M.B.A.
(d) None of these

Question. Coordination is
(a) function of management
(b) the essence of management
(c) an objective of management
(d) none of the above

Question. To what function of management is coordination associated with?
(a) Planning
(b) Organising
(c) Staffing, directing and controlling
(d) All of these

Question. The words cooperation and coordination are ________ .
(a) Opposite
(b) Synonym
(c) Complementary
(d) All the above

Question. Who said that management is a soft science?
(a) Ernest Dale
(b) G.R. Terry
(c) Keynes
(d) Fayol

Question: Which is The reasons that bring out the importance or the necessity for coordination
(a) Specialisation
(b) Growth in the size
(c) Functional Differentiation
(d) All the options

Question: Thinking before doing’, under which function of management is this performed?
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question: Rakesh is working as Regional Manager in ABC Ltd. Name the level at which he is working.
(a) Middle Level
(b) Top Level
(c) Lower Level
(d) All the options

Question: An educational institution as well as a business organization both need to be managed. Which characteristic of management is highlighted here
(a) Universal
(b) Intangible Force
(c) Dynamic
(d) All the options

Question: ‘Arrangement of various resources for achieving Target, under which function of management is this performed
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question: At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Question: Which are the characteristics of coordination
(a) Coordination is a continuous process
(b) Coordination integrates group efforts
(c) Coordination ensures unity of action
(d) All the options

Question: Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question: Your uncle is serving as a foreman in a factory. At what level of management is he working
(a) Lower Level
(b) Middle level
(c) Top level
(d) All the options

Question: Lack of coordination results in
(a) Delay
(b) Overlapping
(c) Duplication
(d) All the options

Question. Harsh is the 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. Identify the nature of management when a manager applies the existing theoretical Knowledge in his own unique manner. (Choose the correct alternative)
(a) Management as a Science
(b) Management as an Art
(c) Management as a profession
(d) Management as a Discipline

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

Question. Coordination acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation. Which characteristic of management is mentioned in the given statement.
(a) Coordination integrates group efforts
(b) Coordination ensures unity of action
(c) Coordination is a continuous process
(d) Coordination is an all pervasive function

Question. Policy formulation is the function of
(a) Top level Managers
(b) Middle level Managers
(c) Operational Management
(d) None of the above

Question. __________ is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.
(a) Coordination
(b) Management
(c) Organising
(d) Planning

Question. ‘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) Allowances

Question. _______ arises out of the complexities of modern technology and the diversity of tasks to be performed.
(a) Division of work
(b) Cooperation
(c) Specialisation
(d) Functional Differentiation

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

Question. The objective of management which consistently creates economic values for various sections of society is:
a) Organisational Objectives
b) Social Objectives
c) Personal Objectives
d) Both Social and Personal Objectives

Question. Mr. Top the Managing director of A ltd appointed Production manager Mr. Produce who was assisted by Mr. Ustad who was to take care of ensuring the proper and safe working conditions for workers. Where will Mr. Ustad be placed in management hierarchy?
a) Middle level
b) Top level
c) Operational level
d) None of the above

Question. The sales department accuses the production department for the poor sales due to late delivery of goods. The production department accuses the purchase department for not delivering the raw material in time and the purchase department accuses the finance department for not releasing funds on time. Which quality of management is missing in the above situation?
a) Planning
b) Management
c) Coordination
d) None of the above

Question. Which of the following functions is performed by operational level management
a) Looking for the safety of workers
b) representing the problems of workers before the middle level management 
c) To ensure quality standards are properly followed
d) All of the above

Question. Assertion(A): The task of a manager is to give a common direction to the individual effort in achieving in achieving the overall goal of the organisation.
Reason(R): Management is goal-oriented.
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): Every manager has his/her own unique style of managing things and people, despite learning same management theories and principles.
Reason(R): Just like Art, management is based on practice and Creativity.
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: In any organisation coordination is required so that the production and sales department work hand-in-hand.
Reason: coordination integrates group efforts.
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: The activities of each department need to be linked through coordination
Reason: Specialists usually think that they only are qualified to evaluate, judge and decide according to their personal criteria.
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): Social objective of management involve creation of benefits or economic values to the society.
Reason(R): Now a days, profit maximisation is the only objective of management.
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.

Fill In The Blanks

Question. The policies framed by the top management is interpreted by ___________ level of management. 

Question. Scientific principles have ___________ validity and application.

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

Question. Organisational objectives of management are___________ and___________ .

Question. Management requires team work and coordination of individual effort in common___________ .

Question. ___________ level of management passes on the instructions of management to the workers.

Question. The welfare and survival of an organization are the main functions performed by ___________ level of management.

Question. Lower level of management comprises of___________ and ___________ .

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

Question. Interpretation of the policies are done by ___________ level of management. 

Question. Science principles are based on___________ and ___________ relationship.

Question. All professions are based on ___________ of knowledge.

Question. Management is ___________ as it includes management of work, people and operations. 

Question. Co-operation with various departments for smooth functioning of organization is done by ___________ level of management.

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

True/ False :

Question. Management does not help in achieving personal objectives.

Question. Middle level of management implement the policies framed by top level of management.

Question. Management is a science as well as an art.

Question. The basic objective of any business is survival.

Question. Co-ordination is a separate function of management.

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

Question. Management is a multidimensional activity.

Question. Co-ordination without Co-operation may lead to dissatisfaction among employees.

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

Question. Management does not require team work and co-ordination of individual efforts in a common direction.

Question. Management resist the people to adapt the changes in competitive world.

Question. There are 3 levels of management in the hierarchy of an organization.

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

Question. Co-operation in absence of co-ordination leads to waste of efforts.

Question. Middle level of management is the link between top and supervisory level of management. 

Question. Supervisory level managers are also known as divisional heads. 

Question. Coordination without cooperation may lead to dissatisfaction among employees. 

Match The Following

Question. Match the columns by identifying the levels of management

1) Managers are responsible for the welfare and survival of organization	a) Middle level of management
2) They ensure that the departments have necessary personnel	b) Operational level of management
	c) Top level of management

Question. Match the columns for identifying the management functions

1) It bridges the gap between where we are and where we want to be	a) Directing
2) Process of assigning the duties, grouping tasks, establishing authority and allocating resources	b) Planning
	c) Organizing

Question. Match the columns to identify the features of coordination

1) Deliberate function	a) Coordination is the function performed by every manager
2) Responsibility	b) It begins at planning stage and continues till planning
	c) Manager has to coordinate the efforts of different people in cautious manner

Question. Match the columns to identify the importance of coordination

1) Growth in size	a) When all departments have their own objectives, policies and their own style of working
2) Specialisation	b) When organization is performing on large scale and more people are employed
	c) When more complexities of modern technology and diversity of tasks is to be performed

Question. Match the columns 0n the basis of nature of management

1) Its principles have universal validity and applicability	a) Management as a profession
2) There is restrictions through an examination for acquiring educational degree	b) Management as a science
	c) Management as an art

Question. Match the columns on the basis of importance of management

1) Job of the manager is to give common direction to individual efforts	a) Helps to achieve group goals
2) The task of the mangers is to reduce the cost and to increase the productivity	b) Increases efficiency
	c) Achieving personal objectives

Question. Match the columns on the basis of objectives of management

1) Growth	a) An organization must have enough revenues to cover cost
2) Survival	b) Essential for covering cost and risks of the business
	c) A business needs to add to its prospects in the long run

Question. Match the columns on the basis of features of management

1) The presence of management cannot be seen but it can be felt the way the organization functions	a) Dynamic function
2) For success an organization must change itself according to the need of an environment	b) Intangible force
	c) Group activity

Question. Match the columns 0n the basis of nature of management as an art and science

1) Management as an art	a) Systematized body of knowledge
2) Management as a science	b) Ethical code of conduct
	c) Personalized application
	d) Professional association

Question. Match the columns by identifying the functions of management

1) Intangible force	a) Management unites individual effort in a common direction
2) Pervasive function	b) Management is required in all types of org.
	c) Management cannot be seen but its presence can be felt.
	d) Management is a series of composite functions