Organising (12 Business Studies)
Practise chapter-wise MCQs for Class 12 Business Studies — Organising. Every question comes with the correct answer and an explanation.
TL;DR: Practise chapter-wise MCQs for Class 12 Business Studies — Organising. Every question comes with the correct answer and an explanation.
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Practise chapter-wise MCQs for Class 12 Business Studies — Organising. Every question comes with the correct answer and an explanation.
Organising MCQs with Answers & Explanations
Q1. The principle of 'unity of command' is violated in which of the following situations?
- A manager overseeing a small number of subordinates.
- A subordinate receiving instructions from multiple superiors. ✓ (correct)
- A subordinate receiving instructions from only one superior.
- A superior delegating tasks to a subordinate.
Explanation: Unity of command states that each subordinate should receive instructions from and be accountable to only one superior. Receiving instructions from multiple superiors violates this principle.
Q2. An organisation follows a structure where employees report to two managers: one functional manager and one project manager. This is an example of:
- Divisional Structure
- Functional Structure
- Matrix Structure ✓ (correct)
- Line Structure
Explanation: A matrix structure combines functional and project structures, where employees report to multiple managers, usually a functional manager and a project manager.
Q3. Which of the following best describes the process of defining authority relationships between various positions in an organisation?
- Span of Management
- Delegation of Authority
- Centralisation
- Organisational Structure ✓ (correct)
Explanation: Organisational structure involves defining the relationships between various positions, including the lines of authority and reporting.
Q4. Which of the following is a key element of the organising function of management?
- Defining roles and responsibilities ✓ (correct)
- Controlling the performance
- Setting objectives
- Motivating the employees
Explanation: Defining roles and responsibilities, along with establishing authority relationships, is a fundamental aspect of the organising function.
Q5. When decision-making authority is retained at the top level of management, the organisation is said to be:
- Departmentalised
- Centralised ✓ (correct)
- Decentralised
- Delegated
Explanation: Centralisation means that decision-making power is concentrated at the top level of the organisation.
Q6. Which of the following is a disadvantage of a functional organisational structure?
- Focus on specialised skills
- Quick decision-making
- Lack of coordination between departments ✓ (correct)
- Efficient use of resources
Explanation: In a functional structure, departments can become isolated, leading to a lack of coordination between them.
Q7. The process of assigning responsibility and granting authority to a subordinate is known as:
- Coordination
- Decentralisation
- Authority
- Delegation ✓ (correct)
Explanation: Delegation is the process by which a superior entrusts responsibility and authority to a subordinate.
Q8. A manager is responsible for 20 subordinates. This statement relates to which of the following concepts?
- Span of Management ✓ (correct)
- Centralisation
- Departmentalisation
- Organisational Chart
Explanation: Span of management refers to the number of subordinates a manager can effectively supervise.
Q9. Which organisational structure is primarily concerned with grouping similar jobs together?
- Divisional Structure
- Functional Structure ✓ (correct)
- Project Structure
- Line and Staff Structure
Explanation: Functional structure groups jobs based on similar functions or related tasks performed within the organisation.
Q10. Which type of organisational structure is suitable for organisations with diverse product lines or operating in multiple geographical regions?
- Functional Structure
- Informal Structure
- Divisional Structure ✓ (correct)
- Matrix Structure
Explanation: Divisional structure is ideal for organisations with multiple product lines or geographical locations as it groups activities around these divisions.
More 12 Business Studies MCQs
- Nature and Significance of Management
- Principles of Management
- Business Environment
- Planning
- Staffing
- Directing
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