CBSE Class 12 Business Studies Nature and Significance of Management VBQs Set 03

Question. Co-ordination is considered to be the essence of management because:
(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the options
Answer: (d) All of the options

Question. Identify the process that provides the requisite amount, quality, timing and sequence of efforts, which ensures that planned objectives are achieved with a minimum of conflict.
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling
Answer: (c) Co-ordination

Question. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is not a one time function, it begins at the planning stage and continue till controlling.”
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function
Answer: (c) Coordination is a continuous process

Question. Sunrise Private Limited decided to donate 2% of its sale to Siksha Foundation for improving the condition of children in India. This initiative by the company was appreciated by the public and their sales increased by 10%. Identify the objective of the management depicted in the given case.
(a) Organizational objective
(b) Personal objective
(c) Social objective
(d) None of the options
Answer: (c) Social objective

Question. Sunrise private limited decided to increase their sales by 10%. They focus every year on increasing the sales so that they can maximize their profits. This company primarily focuses on increasing the profits. Identify the objective of management depicted in the given case.
(a) Economic objective
(b) Personal objective
(c) Social objective
(d) None of the options
Answer: (a) Economic objective

Question. Shivam Ltd. is engaged in manufacturing plastic mobile covers. The objective of the company is to manufacture 100 mobile covers a day. To achieve this, the efforts of all departments are coordinated and interlinked, and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom. Name the function of management discussed above.
(a) Organizing
(b) Directing
(c) Controlling
(d) Planning
Answer: (b) Organising

Question. Rahul was running a media company. He observed that the performance of the employee was not up to the mark. So, he performed a function of management which reviews the operations in a business unit. Identify the function of management.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling
Answer: (d) Controlling

Question. Two dancers, two speakers, two actors and two writers will always differ in demonstrating their skills. In the same way students of management also, apply these principles differently depending on how creative they are. Above lines highlights the nature of management. Identify the nature of management.
(a) Management is an art
(b) Management is a science
(c) Management both art and science
(d) Management as profession
Answer: (a) Management is an art

Question. XYZ Power Ltd., set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. The demand of lanterns was increasing day by day, so the company decided to increase production to generate higher sales. For this they decided to employ people from the nearby villages as very few job opportunities were available in that area. The company also decided to open schools and crèches for the children of its employees. Identify the objectives of management discussed above.
(a) Personal
(b) Social
(c) Individual
(d) None of the options
Answer: (b) Social

Question. “Successful organisation do not achieve their goals by chance but by following a deliberate process.” Identify the process.
(a) Efficiency
(b) Cooperation
(c) Management
(d) Coordination
Answer: (c) Management

Question. Alliance Limited is engaged in manufacturing plastic buckets. The objective of the company is to manufacture 100 buckets a day to achieve this. The efforts of all departments are coordinated and interlined, and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom. Name the function of management discussed above.
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Answer: (b) Organising

Question. “The role of managers working at different levels is to divert the attention of their respective subordinates from their personal goals to the goals of the organisation” Identify the point of importance of management.
(a) Management creates a dynamic organization
(b) Management helps in achieving personal objectives
(c) Management increases efficiency
(d) Management helps in achieving group goals
Answer: (d) Management helps in achieving group goals

Question. To make the annual function of a school successful, the principal divided all the activities into task groups, each dealing with a specific area like rehearsals, decoration, stage management, refreshments, etc. Each group was placed under the overall supervision of a senior teacher. Identify the function of management performed by the principal in doing so?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing
Answer: (b) Organising

Question. A senior manager suggested his subordinate that you can not learn management from books alone. Do you agree with the view of senior manager? Also identify the nature of managment you understand from the above statement.
(a) No, Management is profession
(b) Yes, Management is profession
(c) No, Management is science
(d) Yes, Management is an art
Answer: (d) Yes, Management is an art

Question. Romil works in Cello Limited. He is responsible for defining objectives of the company. At what level of management Romil is working.
(a) Top level
(b) Middle level
(c) Supervisory level
(d) None of the options
Answer: (b) Middle level

Question. Identify the level at which the directing function takes place in an organisation?
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of the options
Answer: (d) All of the options

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) Planning, Organising, Staffing, Controlling

Question. Which aspect of management involves cost-benefit analysis and the relationship between inputs and outputs?
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) Controlling
Answer: (b) Efficiency

Question. Which essence of management affects planning, organising, staffing, directing and controlling?
(a) Cooperation
(b) Coordination
(c) Corporation
(d) Delegation
Answer: (b) Coordination

Question. Only increase in labour cost beyond 2% should be brought to the notice of the management. Which principle of control is highlighted by this statement?
(a) Principle of management by exception
(b) Need for action
(c) Principle of critical point control
(d) All of the options
Answer: (c) Principle of critical point control

Question. National Vritech Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organisation. Identify the concept of management discussed above.
(a) Decentralisation
(b) Delegation
(c) Authority
(d) Diversification
Answer: (a) Decentralisation

Question. Keeping in view the changes in the consumer demands and preferences ‘Rama Bakery’ has reduced the sugar and fat content in its products. This approach of business shows that management is:
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity
Answer: (c) A dynamic function

Question. Which of the following is not a function of management?
(a) Management is all pervasive
(b) Management is multi-dimensional
(c) Management is a group activity
(d) Location of business
Answer: (d) Location of business

Question. Which of the following statements is not true about management?
(a) Management is not visible, it can only be felt.
(b) The effects of management can be realised over a period of time through positivity or negativity created among stakeholders.
(c) The effects of management can be seen and felt.
(d) None of the options
Answer: (c) The effects of management can be seen and felt.

Question. Akash is trying to reduce wastage of resources in his company. He is trying to do it in the best possible manner. He has set standards for performance of different types of activities and is doing his level best to perform according to these set standards to minimize wastage of resources. Things are not going to be over for him as he will have to look into other aspects too. He has set up a good monitoring system which helps him know how to employees are performing according to set standards as when the employees meet these standards, they will be given incentives. He is hoping to pull out a good performance from his team this year. Identify the function of management here.
(a) Planning
(b) Staffing
(c) Controlling
(d) Directing
Answer: (c) Controlling

Question. Management of Mukta Ltd.using environment friendly methods of production and disposes off the waste material by either recycling it or using the same for landfill in such a manner that the aquatic life is not disturbed. In the above statement which objective of management fulfill by Mukta Ltd.
(a) Personal
(b) Organisational
(c) Social
(d) None of the options
Answer: (c) Social

Question. Mr. Shyam is an employee in a company. He is responsible for implementing and controlling plans and strategies developed by top management at the same time he is responsible for all the activities of first line managers. Mr. Shyam is working at.
(a) Top Level
(b) Middle Level
(c) Lower level
(d) None of the options
Answer: (b) Middle Level

Question. Amit, the General Manager of Focus Ltd, performs the managerial functions of planning, organising, staffing, directing, controlling, as an ongoing process. Which management feature is highlighted here?
(a) Management is multi-dimensional
(b) Management is a dynamic function
(c) Management is all- pervasive
(d) Management is a continuous process.
Answer: (d) Management is a continuous process.

Question. Rakesh works as a production manager in Vocal Enterprises Limited. He has been given the task of getting 500 units of hand woven saree manufactured at the cost of Rs. 100 per unit within 8 days. In order to be acknowledged as an effective manager, he must ensure that.
(a) The cost of production does not exceed Rs. 150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than Rs. 150 per unit
(d) All of the options
Answer: (b) The work is completed within 8 days even at higher cost per unit

Question. Dominos Pizza’s keep introducing new variety of pizzas in its menu. Which characteristics of management is highlighted in the above case.
(a) Management is dynamic
(b) Management is static
(c) Management is Pervasive
(d) None of the options
Answer: (c) Management is Pervasive

Question. Bhuvan is the manager of northen division of a large coperate house. At what level does he work in organisation:
(a) Middle level
(b) Lower level
(c) Top level
(d) None of the options
Answer: (d) None of the options

Question. Prakash Ltd. setup a factory in rural area for manufacturing tube lights. The revenue earned by the company was sufficient to cover the cost and the risks. It sold its products at wholesale price so that it can be affordable to the poor people also. Policy of the factory regarding the production was that daily 25% of the last day production will be produced. It also provided after sale services to the customer, i.e., customer assistance to poor people, such as how to use the product. On 31-10-2016, 200 tube lights were manufactured. At the end of the week it is checked whether the actual production was made or not. After scrutinizing, if differences were there then, remedial actions were taken. Identify the function of management.
(a) Planning
(b) Organizing
(c) Staffing
(d) Controlling
Answer: (d) Controlling

Question. Aruna joined in Afsa Ltd. as personnel manager, she observed lots of chaos and misunderstandings in the organisation she found that there is highly centralised pattern , people are not be encouraged to have free communication. If they want to communicate then they have to follow prescribed channel, which results in delays. Other than this there are number of managerial levels, communication gets delayed and distorted as number of filtering points are more. So she found that something is wrong with one of the element of one of the function of management. Identify the element of that function which is missing in the above case according to Aruna:
(a) Motivation element in Directing function.
(b) Communication element in Directing function.
(c) Supervision
(d) Training in Staffing function.
Answer: (b) Communication element in Directing function.

Question. ‘Rats & Fleas’ is a pesticide producing company. The company identifies the various types of activities to be done. For this it divides the work into various departments. The company then gets involved in its business with a lot of zeal. After one year of successful run the company decides to transfer the decision making authority to the lower most level of the employees. For this a major policy decision is taken. Which function of management is highlighted in this case?
(a) Planning
(b) Functional organisation
(c) Staffing
(d) Decentralisation
Answer: (d) Decentralisation

Question. McDonalds, the fast food giant, made major changes in its menu to be able to survive in the Indian market. Which characteristic of management is highlighted?
(a) Dynamic function
(b) Practical knowledge
(c) Group activity
(d) Goal oriented
Answer: (a) Dynamic function

Question. Rishitosh Mukerjee has recently joined AMV Ltd., a company manufacturing refrigerators. He found that his department was under-staffed and other departments were not cooperating with his department for smooth functioning of the organisation. Therefore, he ensured that his department has the required number of employees and its cooperation with other departments is improved. At which level he is working.
(a) Middle level
(b) Lower level
(c) Top Level
(d) All of the options
Answer: (a) Middle level

Question. Ashutosh Goenka was working in ‘Axe Ltd.’, a company manufacturing air purifiers. He found that the profits have started declining from the last six months. Profit has an implication for the survival of the firm, so he analysed the business environment to find out the reasons for this decline. Identify the level of management at which Ashutosh Goenka was working.
(a) Top level
(b) Middle level
(c) Lower level
(d) All of the options
Answer: (a) Top level

Question. A company, FIL Ltd.’s target production is 5000 units in a year. To achieve this target the manager has to operate on double shift due to power failure most of the time. The manager is able to produce 5000 units but at a higher production cost. Which aspect of management is ignored by manager?
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) Planning
Answer: (b) Efficiency

Question. Which of the following statements is not relevant to the concept of “Management as an inexact science”?
(a) The principles of management lack universal validity
(b) The principles of managment lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with at most accuracy.
Answer: (b) The principles of management lack universal applicability