Nature and Significance of Management (12 Business Studies)
Practise chapter-wise MCQs for Class 12 Business Studies — Nature and Significance of Management. Every question comes with the correct answer and an expla
TL;DR: Practise chapter-wise MCQs for Class 12 Business Studies — Nature and Significance of Management. Every question comes with the correct answer and an…
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Practise chapter-wise MCQs for Class 12 Business Studies — Nature and Significance of Management. Every question comes with the correct answer and an expla
Nature and Significance of Management MCQs with Answers & Explanations
Q1. When a manager analyzes past performance and takes corrective actions to ensure future performance aligns with standards, they are performing which management function?
- Staffing
- Planning
- Organizing
- Controlling ✓ (correct)
Explanation: Controlling involves setting performance standards, measuring actual performance, comparing it with standards, and taking corrective action if there are deviations. This process is crucial for ensuring that the organization achieves its goals.
Q2. The function of management that involves setting objectives and deciding the future course of action is:
- Planning ✓ (correct)
- Staffing
- Organizing
- Directing
Explanation: Planning is the fundamental function of management. It involves defining goals, establishing strategies, and outlining the tasks and schedules to achieve the goals. It is about 'what' to do and 'how' to do it.
Q3. Which aspect of management emphasizes the application of knowledge and skills to achieve desired results?
- Management as a System
- Management as an Art ✓ (correct)
- Management as a Profession
- Management as a Science
Explanation: Management as an art focuses on the creative and skillful application of existing knowledge to solve practical problems and achieve goals. It's about the 'how' of management in practice.
Q4. Which of the following best describes the 'essence' of management?
- Planning and organizing resources efficiently.
- Maximizing profits for the shareholders.
- Coordinating all the activities to achieve the organizational goals. ✓ (correct)
- Directing and controlling the work of others.
Explanation: Coordination is considered the essence of management because it integrates all the functions of management and ensures that all departments and individuals work in a harmonious direction towards achieving the common goals.
Q5. Management is a 'gains all-pervasive' activity because it is required in:
- All types of organizations, be it business or non-business.
- All levels of management, from top to operational.
- All countries and all types of economic systems.
- All of the above. ✓ (correct)
Explanation: The characteristic of being 'all-pervasive' means that management principles and practices are applicable universally, regardless of the size, nature, or location of the organization, and across all hierarchical levels within it.
Q6. When a manager delegates authority, assigns responsibilities, and establishes an authority-responsibility relationship, they are performing the function of:
- Planning
- Coordinating
- Staffing
- Organizing ✓ (correct)
Explanation: Organizing involves defining roles, responsibilities, and authority relationships within the organization. Delegation of authority and creation of an organizational structure are key components of this function.
Q7. Which level of management is responsible for formulating overall organizational goals and strategies?
- Top Management ✓ (correct)
- Supervisory Management
- Middle Management
- Operational Management
Explanation: Top management, comprising of CEOs, Directors, and Senior Managers, is responsible for setting the long-term vision, mission, objectives, and strategies for the entire organization.
Q8. The function of management that involves placing the right person at the right job is:
- Organizing
- Staffing ✓ (correct)
- Directing
- Controlling
Explanation: Staffing deals with recruitment, selection, training, development, and performance appraisal of employees. Its core objective is to ensure that the organization has the right human resources for its operations.
Q9. Which of the following is NOT considered a characteristic of management as a discipline?
- It is an art.
- It is a social science.
- It is an exact science. ✓ (correct)
- It is a profession.
Explanation: Management is generally considered a social science and an art due to its reliance on human behavior and practical application. It is not an exact science because its outcomes cannot be predicted with absolute certainty due to the human element involved.
Q10. Management is considered a profession because it has:
- A defined body of knowledge and a code of conduct.
- A service motive above all other motives.
- Entry restricted through formal education and examination.
- All of the above. ✓ (correct)
Explanation: While management has a defined body of knowledge and a code of conduct, and a service motive is increasingly important, the most distinguishing features of a profession are often considered to be formal education, examination, and a restricted entry. However, in the context of NCERT, all these aspects are discussed as characteristics leading to management being considered a profession.
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