BUSINESS MANAGEMENT MCQs

1:  Consider the following statements:

Planning involves
1. Forecasting
2. Choice among alternative courses of action.
3. Wishful thinking
4. Decision only by production manager 
Of these statements:
A.1, 2, 3 and 4 are correct

B.1, 3 and 4 are correct

C.1 and 2 are correct

D 2 and 3 are correct

.
2:  Overall and strategic planning is done by the
A.Top management

B.Middle level management

C.Supervisory level
management

D All of the above

.
3:  If a general manager asks the sales manager to recruit some salesman on his
behalf, it is an instance of
A.Division of authority

B.Decentralisation of authority

C.Delegation of authority

D Delegation of responsibility
.
4:  Consider the following basic steps involved in the process of control:
1. Identifying the strategic control points
2. Establishment of the standards
3. Measuring performance against standards
4. Correcting deviations from the standards
A.1,4,3,2

B.1,2,3,4

C.2,1,3,4

D 2,3,1,4
.
5:  An organisation structure is effective if it enables individuals to contribute to
the objectives of the enterprise. This is known as
A.Scalar principle

B.Principle of functional definition

C.Principle of unity of objectives

 D None of the above
.
6:  While delegating, a superior delegates
A.Only authority

B.Authority and responsibility

C.Authority, responsibility and accountability

D Authority and responsibility but not accountability

.
7:  
Match the following

List I                                           List II
(a) Fayol                          1. Grapevine
(b) Simon                        2. Cybernetics
(c) Shannon                    3. Gang plank
(d) Weiner                       4. Noise
A.a-3, b-4, c-2, d-1

B.a-3, b-2, c-4, d-1

C.a-3, b-1, c-4, d-2

D a-3,b-4,c-1,d-2
.
8:  Directing function of management implies
1. Planning     2. Staffing
3. Leadership 4. Motivation
Choose the correct answer using the codes given below:
A.1 and 2

B.3 and 4

C.2 and 4

D 2,3 and 4
.
9:  Whlch of the following is true with respect to planning function?
A.To make a blue print of ideas and work

B.To tell the work allocation to all

C.Monitoring whether the things allocated are done properly

D None of the above
.
10:  Which of the following pairs are correctly matched ?
1. 3D Theory                                                     V.J. Peddin
2. Life Cycle Theory                                        Paul Hersey and Blandard
3. Continuum Approval                                  Tannenbaum and Schmidt
4. Managerial Grid                                          Mountain & Black
Select the correct answer using the codes given below?
A.1, 2, 3 and 4

B.3 and 4
 C.2 and 4

D 1 and 2
.
11: Each subordinate should have only one superior whose command he has to
obey. This is known as
A.Division of work

B.Exception principle

C.Unity of Command principle

D Authority - responsibility principle

.
12:  In line and staff organisation the staff performs the function of
A.Management

B.Advising the
management

C.Assigning responsibility

D None of the above

.
13:  Planning function is mainly performed at
A.Top management level

B.Middle management level

C.Lower management level

D None of the above

.
14:  Which one of the following may not necessarily be an advantage of
coordination?
A.Effective supervision

B.Unity of direction

C.Creative force

D Summarisation of all management functions

.
15:  Leadership is a function of all the following factors except

A.Work group

B.Product or service

C.Leader

D Situation
.
16:  Which of the following is not true in respect of planning?
A.Planning is an intellectual activity

B.Planning function is not performed by the top management

C.Planning is related to objectives

D Planning is forward-looking
 .

17:  Which one of the following orders indicates the correct logical order of
managerial functions?
A.Organising, Planning, Directing, Staffing, Coordination and
Control
B.Planning, Organising, Staffing,Directing, Control and Coordination
C.Planning, Directing, Organising, Staffing, Control and
Coordination
D Organising, Planning, Staffing,Directing, Control and Coordination
.
 
18:  Which of the following skills is equally important at all levels of management?
A.Technical skill

B.Human relation skill

C. Conceptual skill

D All of the above

.
19:  Consider the following statements:
1. Decentralisation and delegation are closely interrelated
2. Delegation and decentralisation both are desirable
3. Decentralisation is not suitable for large organisation
4. Delegation is not possible in the case of small organisations
Of these statements:
A.1 and 2 are correct

B.2 and 3 are correct

C.1 and 4 are correct

D 1,3 and 4 are correct

.
20:  Consider the following office equipments used in various offices:
1. Fax
3. Dictaphone
2. Typewriter
4. Letter opener
The correct order in which they are used is 
A.1 2 3 4

B.4 3 2 1

C.2 4 3 1

D3241
.
21: Which one of the following formulae is used to calculate "Cross Relationship"
under span of control?
A.n (n - 1)

B.n (2n/2 - 1)

C.n (2n/2 + n -1)

D None of the above

 .

22:  Which of the following is not an advantage of MBO?

A.Success without planning

B.Employee commitment

C.Better appraisal

D Self control
.
23:  Motivational process and not the motivators as such is associated with the
A.Need hierarchy theory

B.Two-factor theory

C.ERG Theory

D Expectancy theory
.
24:  Which one of the following is the oldest form of organization?
A.Functional organization

B.Staff organization

C.Line and Staff organization

D Departmentation
.
25:  The potential disadvantage of MBO is
A.Its inability to control progress of work and achievement of
results
B.Its over-emphasis on production and productivity
C.The additional commitment to the organisation
D The absence of short-term and long-term planning
.
 
26:  Delegation of authority is linked to
A.Managerial planning

B.Management coordination

C.Management control

D Scientific management
.
27:  Organisation Theory deals with
A.Forms of business organisation

B.Structure of an organisation

C.Industrial relations

D Incentives and wage policy

.
28:  Consider the following steps:
1. Analysis of variances
2. Initiating corrective action
3. Measurement of Actual performance
4. Establishment of standards
What is the sequence of steps?
A.1,2,3,4

B.2,3,1,4

C.3,1,2,4

D 4,3,1,2
.
29:  The following steps are involved in managing by objectives

1. Preliminary setting of objectives at the top

2. Setting subordinates objectives
3. Tying resources with the goals
4. Clarifying the organisational roles
The correct sequence of these steps is
A.1,2,3,4

B.1,2,4,3

C.1,3,2,4

D 1,4,2,3
.
 
30:  The main advantage of functional organisation is
A.Specialisation

B.Simplicity

C.Expert advice

D Experience
.
31:  In a Functional organization
A.There are no advisers, the executive alone having the authority and competence
B.There are specialist advisers having no authority
C.The entire organization is divided into functions with specific role for
specialists.
D The organization is divided into functions with specialists having authority.
.
 
32:  TQM's major emphasis is on
A.Company profitability

B.Product quality

C.Customer delight

D Employee training
.
33:  Which of the following functions is known as the essence of management? 
A.Planning

B.Organising

C.Co-ordinating

D Control
.
34:  The following steps are involved in the process of organising
1. Forming supportive objectives
2. Delegating to the head of each group the authority necessary to perform the
activities
3. Establishing enterprise objectives
4. Identifying and classifying activities
The correct sequence of steps is :
A.3,1,2,4

B.3,1,4,2

C.1,3,4,2

D 1,3,2,4
.
35:  In line and staff organisation, the authority lies in
A.Line

B.Staff

C.Both line and staff

D None of the above

.
36:  'Matrix organisation' refers to a term of
A.Organisation where authority and responsibility coexist
B.Organisation in which two or more basic types of departmentation are
combined.
C.Mathematical arrangement of events in columns and rows.
D None of the above
.
37:  Decentralisation of an organization is commanded on account of which of the
following advantages?
1. Reduced burden on top executives
2. Executive development
3. Improvement of morale
4. Solves problems of coordination
Select the correct answer from the codes given below and mark your answer
accordingly.
A.2 and 3

B.1,2, and 4

C.1,2 and 3

D 3 and 4
.
38:  In Taylor's functional organisation, gang boss
A.lnspects the quality of work done

B.Issues instructions to workers

C.Sets up tools and machines for work

D Compiles cost of production

.
39:  MBO is a technique which requires that the objectives of the enterprise
A.Be written and defined in broad terms

B.Lay down the time period for achieving the desired results
C.Include a plan of action for achieving the desired result
D Be defined in terms of measurable results
.
 
40:  When management pays attention to more important areas and when the day
to day routine problems are looked after by lower level management, it is known as
A.Management by objectives

B.Management by Exception

C.Participative Management

D Critical path method

.
41: Staffing includes
1. Training     2. Appraisal
3. Placement 4. Directing
Choose the correct answer using the codes given below:
A.1 and 3

B.2 and 3

C.1,2 and 3

D 1,2,3 and
. 4

42:  Repeated use plans or standing plans include

A.Objectives and policies

B.Procedures and methods

C.Rules

D All of the above

.
43:  Span of controls means that
A.An organization consists of various departments
B.Each person's authority is clearly defined.
C.Every subordinate has one superior

D A manager can supervise only a limited number of subordinates

.
 
44:  If the span of control is narrow, a number of managers would be required in
each unit of the organization and there would be many managerial levels or layers,
such an organizational structure is referred to as
A.Flat structure

B.Tall structure

C.Matrix structure

D Project structure
.
45:  The famous book 'General and Industrial Management' was written by

A.Oliver Sheldon

B.Henri Fayol

C.Elton Mayo

D Maslow
.
46:  Consider the following elements:
1. Indicators
2. Objectives
3. Controls
4. Key Result Areas
5. Roles and Missions
6. Action plans
Their correct sequence in management by objectives and results is
A.5  4  2 1 3
6

B.4 5 2 1 3 6

C.5 4 1 2 6 3

D451263
.
47:  Who wrote Management & Moral?

A.Taylor

B.Riggs

C.Dimock

D Roethliberge
. r

48:  The following steps are involved in the process of organizing

1. Forming supportive objectives
2. Delegating to the head of each group the authority
3. Necessary to perform the activities
4. Establishing enterprise objectives
The correct sequence of these steps is
A.3,1,2,4

B.4,1,2,3

C.1,3,4,2

D 1,3,2,4
.
49:  According to the principle of  "Span of control" there is
A.A tendency of overload supervisors with too much of work
B.A limit to the number of subordinates a supervisor can effectively supervise.
C.No limit to the number of subordinates a supervisor can supervise.
D A limit to delegation of authority to the subordinate.
.
 
50:  Which one of the following statement is correct?
A.Planning and controlling are essentially one and the same.
B.Controlling is a part of the planning process.
C.Controlling is a substitute for planning

D A control process is meaningless without pre-set goals.

.
51:  In the process of controlling office management certain steps are normally
taken.
These include
1. Analysing the actual performance.
2. Finding out the reasons for discrepancies.
3. Evaluating the performance.
4. Establishing the standards of work performance.
The correct sequence in which these steps are usually taken is
A.4,1,2,3

B.1,4,2,3

C.1,4,3,2

D 4,1,3,2
.
52:  What is the correct sequence of the following functions of a manager in an
organisation?
1. Motivation   2. Controlling
3. Organising 4. Planning
Select the correct answer using the codes given below.
A.4,3,2,1

B.4,3,1,2

C.3,4,2,1

D 3,4,1,2
.
 MULTIPLE CHOICE ANSWERS
1.C 12.B 23.D 34.B 45.B
2.A 13.A 24.B 35.A 46.A
3.C 14.A 25.B 36.C 47.D
4.B 15.B 26.C 37.C 48.B
5.C 16.B 27.B 38.C 49.B
6.A 17.B 28.D 39.D 50.D
7.C 18.B 29.B 40.B 51.D
8.D 19.A 30.A 41.C 52.B
9.A 20.B 31.D 42.D
10.A 21.C 32.B 43.D
11.C 22.A 33.C 44.B