MCQ Chapter 2 Principles of Management Class 12 Business Studies

Please refer to Principles 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 Principles of Management will help you to prepare for the exams and get more marks.

Principles of Management MCQ Questions Class 12 Business Studies

Please see solved MCQ Questions for Principles 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. Which system of management talks of “complete mental change”?
(a) Administrative management
(b) Scientific management
(c) Both (a) and (b)
(d) None of these

Question. In which book Henry Fayol has mentioned the 14 principles of management:
(a) General and industrial management
(b) Principles based management
(c) General management
(d) Industrial management

Question. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship. 
(a) Instruction Card Clerk
(b) Repair Boss
(c) Gang Boss
(d) Route Clerk

Question. What was the title of the research paper written by Taylor in 1903?
(a) Factory management
(b) Shop management
(c) Office management
(d) Production management

Question. A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate, which principle of management has been violated by this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity

Question. Which management expert is talked about mental revolution?
(a) Fayol
(b) Taylor
(c) Hamman
(d) None of the above

Question. Under fatigue study:
(a) Tiring work is given to employees
(b) Employee’s movements are increased
(c) Record is maintained for time consumed on employee’s work
(d) Rest is given to employees during work

Question. What principle of management has been given by Henry Fayol?
(a) Principle of Unity of command
(b) Principle of optimum production
(c) Principle of using science instead of rule of thumb
(d) None of these

Question. Which company did Taylor join in America in 1878 as a labourer?
(a) Bethlehem Steel Works
(b) American Steel Company
(c) Midvale Steel Company
(d) None of these

Question. Out of the following which one gives more strength to research work.
(a) Principles of management
(b) Functions of management
(c) Levels of management
(d) All the above

Question. Which of the following, according to Foyal, happens to be the meaning of the division of work?
(a) Equitable division of the whole work among the persons available
(b) Alloting a specific part of the whole work to every person
(c) Both the above
(d) None of the above

Question. Which of the following principles aims at checking the ignoring of activities?
(a) Unity of command
(b) Unity of direction
(c) Discipline
(d) All the above

Question. What type of centralisation Fayol talks about?
(a) Little Centralisation
(b) More Centralisation
(c) Effective Centralisation
(d) No Centralisation

Question. According to which principle of management, all similar activities for the fulfilment of one object must be kept under one authority.
(a) Equity
(b) Centralisation
(c) Unity of command
(d) Unity of direction

Question. ‘A proper place for everything and everything in its right place’, with which order is this statement connected as explained in the principle of order?
(a) Material
(b) Social
(c) Both the above
(d) None of the above

Question. On what basis the principles of management were derived?
(a) On the basis of observation
(b) On the basis of experimental studies
(c) On the basis of both (a) and (b)
(d) None of these

Question. How many Principles of Management has been given by Henry Fayol?
(a) 5
(b) 14
(c) 16
(d) 20

Question. What study did Taylor make to set standard time for work?
(a) Time study
(b) Fatigue study
(c) Motion study
(d) Method study

Question. Who is the Father of Administrative Management?
(a) Taylor
(b) Fayol
(c) Both
(d) None of these

Question. Where are the principles of management applicable?
(a) In the field of business
(b) In the non-business field
(c) In both (a) and (b)
(d) None of these

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

Question. Which one is not the Henry Fayol’s principle of management:
(a) Division of Work
(b) Differential wages
(c) Scalar chain
(d) Equity

Question. In what two departments did Taylor divide the work of a factory manager?
(a) Department of Planning and Production
(b) Department of Planning and Finance
(c) Department of Planning and Marketing
(d) Department of Planning and Research

Question. What is the meaning of the universality of the principles of management?
(a) Applicable to all the fields
(b) Applicable no where
(c) Applicable only to business
(d) Applicable only to non-business field

Question. Which study is not done under scientific management:
(a) Motion
(b) Profit
(c) Time
(d) Fatigue

Question. Which system of management gives due importance to ‘specialisation’?
(a) Scientific management
(b) Administrative management
(c) Both (a) and (b)
(d) None of these

Question. What principle of management is violated if an employee gets orders from more than one superior?
(a) Unity of command
(b) Unity of direction
(c) Division of work
(d) Scalar chain

Question. What did Taylor want to standardise?
(a) Material
(b) Machine and Tools
(c) Methods
(d) All of these

Question. The violation of which principle of management results in ‘disorderly flow of information’?
(a) Scalar Chain
(b) Unity of Command
(c) Authority and Responsibility
(d) Stability of employees

Question. Which of the following system of management talks about cheap and efficient way of doing a job?
(a) Administrative
(b) Scientific
(c) Both the above
(d) None of the above

Question. Principles of management are NOT
(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural

Question. Henry Fayol was a
(a) Social Scientist
(b) Mining Engineer
(c) Accountant
(d) Production engineer

Question. What type of revolutionary change is talked about by F.W. Taylor?
(a) Green Revolution
(b) White Revolution
(c) Mental Revolution
(d) None of these

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. ‘Three subordinates- S1, S2 and S3 receive orders from M1’. In such a situation which principle of management is being observed?
(a) Equity
(b) Order
(c) Unity of command
(d) Unity of direction

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

Question. Scientific management brings:
(a) Social change
(b) Economic change
(c) Mental change
(d) Industrial change

Question. Which of the following statements best describes the principle of ‘Division of Work’?
(a) Work should be divided into small task
(b) Labour should be divided
(c) Resources should be divided among jobs
(d) It leads to specialisation

Question. In what situation has Fayol permitted the violation of the Principle of Scalar Chain?
(a) When the employee is extraordinarily capable
(b) At the time of sudden happening
(c) In all conditions and circumstances
(d) In no condition or situation

Question. In which year Taylor became an Engineer from a worker?
(a) 1878
(b) 1884
(c) 1901
(d) 1903

Question. Which of the following elements should be kept in mind while determining fair remuneration?
(a) Cost of living
(b) Demand of labourers
(c) Qualification
(d) All of these

Question. Which of the following statements is FALSE about Taylor and Fayol?
(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer 
(b) Fayol’s principles are applicable in specialised situations whereas Taylor’s principles have universal application
(c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation
(d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor

Question. The principles of management are significant because of
(a) Increase in efficiency
(b) Initiative
(c) Optimum utilisation of resources
(d) Adaptation to changing technology

Question: Which is determines the standard time taken to perform a well-defined job.
(a) Time Study
(b) Motion study
(c) Fatigue study
(d) Method study

Question: Name and explain that principle of Fayol which suggest that communication from top to bottom should follow the official lines of command?
(a) Remuneration of Employees
(b) Centralization and Decentralization
(c) Principle of Scalar Chain
(d) Unity of Direction

Question: Science not rule of thumb principle is given by _______
(a) Hanry Fayol
(b) L M Prasad
(c) F W Taylor
(d) L H Haney.

Question: Which is the principles of management given by Fayol
(a)  Centralisation and decentralisation
(b) Unity of direction
(c) Equity
(d)  All the options 

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

Question: Henri Fayol was a
(a) French Doctor
(b)  Mechanical engineer
(c) Russian Mechanical engineer
(d) All the options

Question: Henri Fayol Period was
(a) 1841-1925
(b) 1851-1925
(c) 1861-1925
(d) 1841-1926

Question: Which principle of management suggest the concept of replacing I with we.
(a) Order
(b) Equity
(c) Espirit De Corp
(d) None of these.

Question. A firm is manufacturing Apparels and is running under heavy losses. To recover from the losses, the management thought of shifting the unit to a backward area where labour is available at a low cost. The management also asked the workers to work overtime without any additional payment and promised to increase the wages of workers after achieving its mission. Within a short period the company started earning profits because both the management and the workers honoured their commitments. From the following options, identify principle of management described in the above para.
(a) Discipline
(b) Cooperation not individualism
(c) Esprit de corps
(d) Order

Question. Which principle of Henri Fayol states that workers should be encouraged to develop and carry out their plans for improvements. 
(a) Esprit de corps
(b) Order
(c) Initiative
(d) Equity

Question. Taylor in one of his principles of scientific management suggested ‘investigation of traditional methods through work study, unifying the best practices and developing a standard method, which would be followed throughout the organisation. Which principle of scientific management is discussed in the given statement. (Choose the correct alternative)
(a) Science not rule of thumb
(b) Harmony not discard
(c) Cooperation not individualism
(d) Division of work

Question. Arun is a managing director in a company. He believes that employees turnover should be minimised to maintain organisational efficiency. He is of the view that personnel should be selected and appointed after due and rigorous procedure and once selected they should be kept at their post for a minimum fixed tenure. From the following options, choose the management principle followed by Arun in the given case.
(a) Remuneration of employees
(b) Stability of personnel
(c) Centralisation and decentralisation
(d) Discipline

Question. Which of the following techniques of scientific management aims at differentiating between efficient and inefficient workers. (choose the correct alternative)
(a) Differential piece wage system
(b) Time Study
(c) Standardisation and simplification of work
(d) Method study

Question. Raj, a Manager decided that there will be separate departments for finance, marketing, production and sales in his company. By doing so he is following a principle of Management. Identify the principle of management followed by Raj in the given situation. (Choose the correct alternative)
(a) Division of work
(b) Centralisation and decentralisation
(c) Order
(d) Unity of command

Question. ‘Management principles help the managers in better understanding of managerial situations and circumstances’. Which significance of principles of management is highlighted in the given statements.
(a) Optimum utilisation of resources and effective administration
(b) Providing managers with useful insights into reality
(c) Scientific decisions
(d) Fulfilling social responsibility.

Question. According to Henri Fayol ‘People and materials must be in suitable place at appropriate time for maximum efficiency’. Identify the managerial principle discussed in the given statement.
(a) Discipline
(b) Scalar Chain
(c) Unity of Direction
(d) Order

Question. Which principle of scientific management is considered as an extension of principle of ‘Harmony not discord.’ (Choose the correct alternative)
(a) Science not rule of thumb
(b) Equity
(c) Coordination not individualism
(d) Development of each and every person to his or her greatest efficiency and prosperity. 

Question. Which of the following statements justifies the principle ‘Cooperation, not individualism’?
(a) Management and workers should transform their thinking towards each other.
(b) There should be an equal division of work between management and workers
(c) Industrial efficiency depends to a large extent on personnel competencies
(d) There is only one best method to maximise efficiency

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

Question. Assertion (A) Each group of activities having the same objective must have ‘one head and one plan’.
Reason (R) Principle of “unity of command”.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Question. Assertion (A): According to the principle of cooperation, not individualism all the activities done by different people must be carried on with a spirit of mutual cooperation.
Reason (R): Workers and managers should separately determine the standards. In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Question. Assertion (A): Simplification putting an end to the unnecessary types, qualities, sizes etc.
Reason (R): Simplification effects economy in the use of machine In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Question. Assertion (A) The principles of management are yet to be evolved.
Reason (R) Principles of Management are said to be evolutionary in nature as these principles have evolved over a long period of time with continuous practice and experimentation.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Question. Assertion (A): Differential piece wage system is a technique which does not differentiate between efficient and less efficient workers.
Reason (R): Differential piece wage system acts as an incentive for less efficient workers to be motivated to perform better. In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Fill In The Blanks:

Question. Authority is of two types official and__________ authority. 

Question. According to __________principle of Fayol ,every subordinate must have only 1 boss.

 Question. The principle of division of work given by Fayol states that __________ should be divided into small tasks. 

Question. Formal lines of authority from highest to lowest ranks are known as __________ .

Question. The concentration of decision making authority in the hands of management is known as __________.

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

Question. Functional foremanship is extension of __________ principle of Fayol. 

Question. Unity of Commands resembles __________ organization.

Question. Under differential piece rate plan, efficient and inefficient workers are paid at __________ rates. 

 Question. In general, __________ organization have more decentralisation.

True /False:

Question. Principles of management provide an accurate cause and effect relationship.

Question. Fayol’s book, ‘General and Industrial Management’ was published in English in the year 1949.

Question. Fayol had the view that one group should have one head and one plan.

Question. Managerial principles are behavioural, therefore they apply on human behaviour only.

Question. In case of emergency where a worker can even contact CEO directly.

Question. Fayol is known as father of scientific management.

Question. Remuneration principle states that overall pay and compensation to both males and females should be same.

Question. Principle of management may be used by managers as Straightjacket solution for the managerial problems faced by them.

Question. Gang Plank permits horizontal communication.

Question. The application of principles of management is contingent or dependent upon the prevailing situation at a particular point of time.

Match the following:

Question. On the basis of features of principles of management

(a) Cause and effect relationship	(i) They do not provide readymade solution for managerial problem
(b) General guide lines	(ii) Application of principles of management are not dynamic in nature
	(iii) They can be used in similar situation large number of cases.

Question. Match the following on the basis of the meaning of

(a) Formal lines of authority from highest to lowest	(i) Decentralization
(b) Systematic dispersal of decision making authority	(ii)Centralization
	(iii) Division of Work
	(iv) Scalar Chain

Question. Match the following on the basis of effect

(a) Division of work	(i) ensures congenial atmosphere
(b) Discipline	(ii) Employees suggestion system
(c) Remuneration of Employees	(iii) Invites penalty if violated
	(iv) Specialization

Question. Match the following on the basis of meaning

(a) One and only boss for every employee	(i) Order
(b) A place for every thing and everything in its place	(ii) Division of work
	(iii) Unity of command
	(iv) Initiative

Question. Match the following on the basis of violating effect

(a) conflicts among superiors	(i) Remuneration of employee
(b) poor relation between workers and management	(ii) Principle of order
(c) Wastage of time & efforts	(iii) Authority and responsibility
(d) Abuse of managerial power	(iv) Division of work