This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 2 Principles Of Management – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 2 Principles Of Management Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. An example of Economic external environment is income distribution. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: B) FALSE. 2. Span of management refers to A) Number of in members in top management. B) Number of subordinates under a superior. C) Length of term for which a manager is appointed. D) Number of managers. Show Answer Correct Answer: B) Number of subordinates under a superior. 3. Which of the following is a method used in Integrity-Based Ethics Programs? A) Creating codes of conduct. B) Encouraging employees to make ethical decisions based on principles such as honesty, integrity, and fairness. C) Detecting and punishing violations. D) Maximizing profits. Show Answer Correct Answer: B) Encouraging employees to make ethical decisions based on principles such as honesty, integrity, and fairness. 4. Importing refers to the sale of goods or services to another country, while exporting involves purchasing goods or services from a foreign country. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 5. Which power is based on the ability to control rewards and punishments? A) Reward Power. B) Identity Power. C) Position Power. D) Expert Power. Show Answer Correct Answer: A) Reward Power. 6. ..... principle ensures a cordial relationship between the management and the employees. A) Equity. B) Discipline. C) Unity of command. D) Control. Show Answer Correct Answer: A) Equity. 7. Standing plans include: A) Policies, procedures, rules. B) Budgets and projects. C) One-time activities. D) Forecasts only. Show Answer Correct Answer: A) Policies, procedures, rules. 8. What is a red tape? A) Over formalization. B) Having a loss on the balance sheet. C) It is a hot potato. D) Excessive power of the office. Show Answer Correct Answer: D) Excessive power of the office. 9. What is the main focus of Human Resource Management (HRM)? A) Production efficiency. B) Marketing strategies. C) Employing and developing people. D) Financial management. Show Answer Correct Answer: C) Employing and developing people. 10. ..... explains that individuals affiliate with one another because of spatial or geographical proximity A) Interaction Theory. B) Complementarity theory. C) Propinquity Theory. D) Balance Theory. Show Answer Correct Answer: C) Propinquity Theory. 11. Organizations that are highly flexible and adaptive are described as which of the following? A) Mechanistic. B) Intuitive. C) Organic. D) Rational. Show Answer Correct Answer: C) Organic. 12. In which type of organisation, the principle of scalar chain is fully followed A) Divisional Organisation. B) Formal Organisation. C) Informal Organisation. D) None of the above. Show Answer Correct Answer: B) Formal Organisation. 13. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management. A) Order. B) Division of work. C) Equity. D) Discipline. Show Answer Correct Answer: B) Division of work. 14. Strategic ..... is a process which involves the review of market conditions, customer needs, competitive strengths and weaknesses, socio-political, legal and economic conditions, technological developments and resource availability that led to the specific opportunities or threats facing an organization. A) Research. B) Organizing. C) Review. D) Planning. Show Answer Correct Answer: D) Planning. 15. This principle refers to how close employees are to the decision-making process. It is important to aim for an appropriate balance. A) Division of Work. B) Subordination of Individual Interests to the General Interest. C) Centralization. D) None of the above. Show Answer Correct Answer: C) Centralization. 16. We are constructing a new house. But my parents want that the house get completed slowly. The number of workers required can be calculated by ..... Study. A) Time. B) Motion. C) Fatigue. D) Method. Show Answer Correct Answer: A) Time. 17. Frequent ..... increase selection and training cost. A) Productivity. B) Wastage. C) Labour turnover. D) Absenteeism. Show Answer Correct Answer: C) Labour turnover. 18. The authority flows from A) Bottom to top. B) Top to bottom. C) In all directions. D) None of the above. Show Answer Correct Answer: B) Top to bottom. 19. When managers need new information to make decisions, how should the information be collected? A) Through fabrication. B) Through research. C) Through obsolete resources. D) Managers should never introduce new information. Show Answer Correct Answer: B) Through research. 20. Organizations are seen as systems composed of a set of interdependent parts that coordinate their efforts to achieve common goals. A) CLASSICAL MANAGEMENT. B) SCIENTIFIC MANAGEMENT. C) SYSTEMS THEORY. D) CLASSICAL ORGANIZATIONAL. Show Answer Correct Answer: C) SYSTEMS THEORY. 21. The principle that a subordinate should receive the order and be responsible to the only boss is known as ..... A) Unity of Command. B) Unity of Direction. C) Span of Control. D) All of the Above. Show Answer Correct Answer: A) Unity of Command. 22. Mr. Rajat, a project manager at Tech Solutions, always makes decisions without considering the opinions of his team members. He believes that his decisions are always the best. Identify the management principle that Mr. Rajat is not adhering to in his leadership approach. A) Centralization. B) Initiative. C) Subordination of Individual Interest to General Interest. D) Unity of Direction. Show Answer Correct Answer: C) Subordination of Individual Interest to General Interest. 23. In order for codes of ethics to be effective, they should contain meaningful and clearly stated provisions with ..... for noncompliance that are both enforceable and enforced universally. A) Sanctions. B) Rewards. C) Suggestions. D) Guidelines. Show Answer Correct Answer: A) Sanctions. 24. What is the nature of principles of management? A) They are specific to certain types of organizations. B) They are applicable only to large-scale operations. C) They are derived from personal experiences of managers. D) They are intended to apply to all types of organizations. Show Answer Correct Answer: D) They are intended to apply to all types of organizations. 25. Why is it important to divide jobs fairly? A) To ensure all employees are satisfied. B) To achieve objectives effectively. C) To reduce costs. D) To increase competition among employees. Show Answer Correct Answer: B) To achieve objectives effectively. 26. Five categories for Managerial Grid such as A) Team management. B) Task manager. C) Task keeper. D) Team worker. Show Answer Correct Answer: A) Team management. 27. Which of the following is a contingent contract? A) Contract for doing impossible acts. B) Contract of insurance. C) Marriage contract. D) Wagering agreements. Show Answer Correct Answer: B) Contract of insurance. 28. Active concealment of fact2. Promise made without any intention of performing it3. Breach of duty which gains and advantage to the person committing it4. Including mistake as to subject matterQues; Which if the above amount to fraud? A) 1 and 2. B) 2 and 3. C) 3 and 4. D) 1 and 4. Show Answer Correct Answer: A) 1 and 2. 29. Which of the following statements best defines the techniques of management? A) It is the set of guidelines to take decisions and actions. B) It is a procedure which involves a series of steps to be taken. C) They are general rules for behaviour of individuales. D) None of the above. Show Answer Correct Answer: B) It is a procedure which involves a series of steps to be taken. 30. ..... refers to an organization's ability to outperform others because it produces desired goods or services more efficiently and effectively than they do. A) Empowerment. B) Dissemination. C) Restructuring. D) Turnaround management. E) Competitive advantage. Show Answer Correct Answer: E) Competitive advantage. 31. Which is NOT a feature of a formal organisation? A) It is personal. B) It is more stable. C) It is deliberately created. D) It is based on rules and procedures. Show Answer Correct Answer: A) It is personal. 32. What is the primary goal of using social media platforms in a marketing campaign? A) To reduce advertising costs. B) To enhance customer engagement. C) To increase product prices. D) To limit customer feedback. Show Answer Correct Answer: B) To enhance customer engagement. 33. What is the purpose of job analysis? A) To evaluate employee performance. B) To determine personnel requirements for a job. C) To create marketing strategies. D) To assess financial needs. Show Answer Correct Answer: B) To determine personnel requirements for a job. 34. The economic factors include inflation, interest rates, unemployment, and demand. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 35. What does deontological ethics provide in ethical decision-making by offering clear rules and guidelines? A) Ambiguity in moral choices. B) Clarity in ethical decision-making. C) Emphasis on consequences. D) Flexibility in personal preferences. Show Answer Correct Answer: B) Clarity in ethical decision-making. 36. ..... is a measure of how efficiently and effectively managers use available resources to satisfy customers and achieve company goals. A) Corporate culture. B) Empowerment. C) Organizational performance. D) Core competency. E) Organizational structure. Show Answer Correct Answer: C) Organizational performance. 37. Why are Steven and Sam concerned about the changes made by Nina? A) Because they want to sell the theme park to a property developer and retire. B) Because they are not making enough profit and want to implement new marketing strategies. C) Because they are unhappy with their sister's leadership and want to take over the business. D) Because they are worried about the safety of the park and the rise in customer complaints. Show Answer Correct Answer: D) Because they are worried about the safety of the park and the rise in customer complaints. 38. An employee is accountable for work but lacks decision-making power. Which principle is violated? A) Authority and Responsibility. B) Discipline. C) Equity. D) Unity of Direction. Show Answer Correct Answer: A) Authority and Responsibility. 39. When the business looks to fill the vacancy from within its existing workforce A) Internal Recruitment. B) External Recruitment. C) All the above. D) None of the above. Show Answer Correct Answer: A) Internal Recruitment. 40. According to the principle of scalar chain, communication should follow: A) Random chain. B) Scalar chain. C) Circular chain. D) Hierarchical chain. Show Answer Correct Answer: B) Scalar chain. 41. What is the main responsibility of a manager according to the text? A) Ensure the success of the organization. B) Avoid challenges and risks. C) Only supervise employees. D) Make all decisions alone. Show Answer Correct Answer: A) Ensure the success of the organization. 42. It is important to empower employees for quicker response of employees and faster decision A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 43. Managers must have the authority to give orders, but they must also keep in mind that with authority comes responsibility. A) Authority&responsibility. B) Authority. C) Discipline. D) Responsibility. Show Answer Correct Answer: A) Authority&responsibility. 44. Providing motivation is a part of the organizing function of management. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 45. What type of motivation describes those things we enjoy doing just because we like doing them? A) Intrinsic Motivation. B) External Motivation. C) Identified Motivation. D) Introject Motivation. Show Answer Correct Answer: A) Intrinsic Motivation. 46. Which one of these best describes a functional manager? A) They oversee the entire business. B) They set targets for the business as a whole. C) They focus on one part of the organisation. D) None of the above. Show Answer Correct Answer: C) They focus on one part of the organisation. 47. When people felt good about their work, they tended to attribute these characteristics to themselves. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 48. "They are the general guidelines for decision making and behavior" -is th e Meaning of A) Principles of Management. B) Decision Making. C) Management. D) Behavior Management. Show Answer Correct Answer: A) Principles of Management. 49. It is the administration of an organization, whether it be a business, a not-for-profit organization, or government body. A) Management. B) Resources. C) Team. D) None of the above. Show Answer Correct Answer: A) Management. 50. ..... method, he superior teaches job knowledge and skills to a subordinate A) Learner Training. B) Position rotation. C) Under study. D) Coaching. Show Answer Correct Answer: D) Coaching. 51. Steps to be taken for selecting salespersons is an example of ..... A) Strategies. B) Policies. C) Methods. D) Procedures. Show Answer Correct Answer: D) Procedures. 52. Strong team spirit exists among employees. Which principle is reflected? A) Discipline. B) Unity of Command. C) Esprit de Corps. D) Order. Show Answer Correct Answer: C) Esprit de Corps. 53. Which of the following is a component of Human Resources Management? A) Leading. B) Recruitment and Selection. C) Personal vs. Professional Ethics. D) Keeping up with Technology. Show Answer Correct Answer: B) Recruitment and Selection. 54. Licensing is commonly used as a strategy for international expansion, allowing to enter markets without establishing their own manufacturing facilities A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 55. What are the objectives of management? A) Organistional Objective. B) Personal Objective. C) Social Objective. D) All of them. E) None of them. Show Answer Correct Answer: D) All of them. 56. Which of the following motions cannot be identified with the help of motion study? A) Unproductive. B) Incidental. C) Accidental. D) Productive. Show Answer Correct Answer: C) Accidental. 57. What are values in the context of management? A) Unrelated to the practice of management. B) General rules for behavior formed through common practice. C) Acceptable or desirable qualities with moral connotations. D) Basic truths or guidelines for behavior. Show Answer Correct Answer: C) Acceptable or desirable qualities with moral connotations. 58. According to the principle of ..... workers should be paid fair &equitable wages, commensurate with the work. A) FAIR REMUNERATION TO WORKERS. B) ESPIRIT DE CORPS. C) INITIATIVE. D) DIVISION OF WORK. Show Answer Correct Answer: A) FAIR REMUNERATION TO WORKERS. 59. Deontology emphasizes individual and organizational accountability for what? A) Ethical decisions and actions. B) Financial performance only. C) Legal compliance only. D) Personal beliefs regardless of rules. Show Answer Correct Answer: A) Ethical decisions and actions. 60. What are the definitions of management and leadership? A) Management by objectives. B) Situational and contingency. C) Functional and action centred. D) Transformational and transactional. Show Answer Correct Answer: A) Management by objectives. Next →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 2 Principles Of Management Quiz 2Class 12 Business Studies Chapter 2 Principles Of Management Quiz 3Class 12 Business Studies Chapter 2 Principles Of Management Quiz 4Class 12 Business Studies Chapter 2 Principles Of Management Quiz 5Class 12 Business Studies Chapter 2 Principles Of Management Quiz 6Class 12 Business Studies Chapter 2 Principles Of Management Quiz 7Class 12 Business Studies Chapter 2 Principles Of Management Quiz 8Class 12 Business Studies Chapter 2 Principles Of Management Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books