This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 2 Principles Of Management – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 2 Principles Of Management Quiz 2 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The process of satisfying the needs and wants of others in which other people is willing to provide it for the purpose or earning a profit. A) Business. B) Entrepreneurship. C) Ethics. D) Venture. Show Answer Correct Answer: A) Business. 2. The following are non-verbal communication A) Facial expression. B) Appearance. C) Posture. D) All the above. Show Answer Correct Answer: D) All the above. 3. Staffing function does not include A) Selection. B) Recruitment. C) Training. D) Motivation. Show Answer Correct Answer: D) Motivation. 4. Which of the following is NOT a level of management? A) Informal-level. B) Top-level. C) Low-level. D) Middle-level. Show Answer Correct Answer: A) Informal-level. 5. The one who is known as father of modern management.- A) Henry Fayol. B) F.W. Taylor. C) Peter Drucker. D) None of the above. Show Answer Correct Answer: A) Henry Fayol. 6. Individual relativism holds that what is morally right or wrong is a matter of ..... opinion, and there is no overarching, objective moral truth. A) Historical. B) Personal. C) Scientific. D) Universal. Show Answer Correct Answer: B) Personal. 7. Which of the following is included in the function of Directing? A) Instructing. B) Guiding. C) Motivating. D) Leading. E) All of these. Show Answer Correct Answer: E) All of these. 8. Management increases: A) Efficiency. B) Cut-throat Competition. C) Cost. D) Monotony. Show Answer Correct Answer: A) Efficiency. 9. Which of the following is not a principle of management proposed by Peter Drucker? A) Scalar Chain. B) Centralization. C) Unity of Command. D) Division of Labor. Show Answer Correct Answer: C) Unity of Command. 10. The political component of the external environment includes laws, regulations and government stability that can impact organizational operations A) Trues. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) Trues. 11. It is the responsibility of the management to regularly motivate their employees and be supportive of each other. Developing trust and mutual understanding will lead to a positive outcome and work environment.-it is called A) Stability. B) Motivation. C) Initiative. D) Esprit de Corps. Show Answer Correct Answer: D) Esprit de Corps. 12. Which of the following is NOT management functions? A) Organizing. B) Control. C) Staffing. D) Planning. Show Answer Correct Answer: C) Staffing. 13. ..... is the process of defining and grouping activities, and establishing authority relationships among them to attain organizational objectives. A) Directing. B) Organizing. C) Planning. D) Staffing. Show Answer Correct Answer: B) Organizing. 14. Mintzberg's broke managerial roles into three separate specific areas. One is defined as having the skill to monitor the external environment and then disseminate what was collected to subordinates in the company. This description best defines the role of: A) Decisional. B) Negotiator. C) Interpersonal. D) Disturbance handler. E) Informational. Show Answer Correct Answer: E) Informational. 15. The most important goal of business communication is ..... A) Favourable relationship between sender and receiver. B) Organizational Goodwil. C) Receiver response. D) Receiver understanding. Show Answer Correct Answer: D) Receiver understanding. 16. Which type of global organization involves the interconnectedness and interdependence of nations? A) Transnational Corporation. B) International Corporation. C) Global Corporation. D) Multinational Corporation (MNC). Show Answer Correct Answer: A) Transnational Corporation. 17. Ethical climate refers to the processes by which decisions are evaluated and made on the basis of ..... A) Right and wrong. B) Profit and loss. C) Tradition and culture. D) Speed and efficiency. E) Popularity and trend. Show Answer Correct Answer: A) Right and wrong. 18. Why are businesses redesigning jobs, improving health and safety, and establishing family-friendly practices? A) As a way to eliminate protocol. B) To minimize manager responsibilities. C) To build a better structure. D) As a reaction to society changes. Show Answer Correct Answer: D) As a reaction to society changes. 19. A person enjoying the benefits of a lawful non-gratuitous act of another A) Is liable to compensate to another. B) Is not liable to compensate to another. C) Another cannot claim any compensation. D) Both b and c. Show Answer Correct Answer: A) Is liable to compensate to another. 20. In ABC Ltd, each employee receives instructions from only one supervisor to avoid confusion. Which principle is followed? A) Unity of Direction. B) Unity of Command. C) Scalar Chain. D) Discipline. Show Answer Correct Answer: B) Unity of Command. 21. What is the first step in ethical decision making? A) Moral awareness (realizing the issue has ethical implications). B) Gathering all the facts. C) Implementing the decision. D) Evaluating alternative solutions. Show Answer Correct Answer: A) Moral awareness (realizing the issue has ethical implications). 22. A rigid plan, no scope for discretion is ..... A) Procedures. B) Rule. C) Goals. D) Strategies. Show Answer Correct Answer: B) Rule. 23. Employee satisfaction depends on fair remuneration for everyone. This includes financial and non-financial compensation. A) Remuneration. B) Motivation. C) Equity. D) None of the above. Show Answer Correct Answer: A) Remuneration. 24. The greater the risk involves in making a decision, the greater the: A) Rewards. B) Information available. C) Outcomes. D) Uncertainty. Show Answer Correct Answer: A) Rewards. 25. Kohlberg's model of cognitive moral development classifies people based on their level of ..... judgment. A) Emotional. B) Legal. C) Aesthetic. D) Moral. Show Answer Correct Answer: D) Moral. 26. Which of the following is a disadvantage of sole proprietorship? A) Business secrecy can be maintained. B) Limited capital. C) Easy to start. D) Full control over decisions. Show Answer Correct Answer: B) Limited capital. 27. 'Rule of thumb' refers to A) Use of personal judgement in handling management issues. B) Adopting a hit-and-trial approach to resolve management problems. C) Both of the above. D) None of the above. Show Answer Correct Answer: C) Both of the above. 28. What principle of management emphasizes that each employee should receive orders from only one superior? A) Unity of Direction. B) Unity of Command. C) Authority and Responsibility. D) Remuneration. Show Answer Correct Answer: B) Unity of Command. 29. Deciding who will be assigned to which job 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: A) True. 30. Which technique of scientific management provides various specialists to supervise the work of workers? A) Time Study. B) Functional Foremanship. C) Method Study. D) Fatigue Study. Show Answer Correct Answer: B) Functional Foremanship. 31. What is the process called in Walzer's theory where goods from one sphere improperly influence another? A) Segregation. B) Integration. C) Contamination. D) Distribution. Show Answer Correct Answer: C) Contamination. 32. The 10 managerial roles were first categorized by A) FW Taylor. B) Elton Mayo. C) Henry Mintzberg. D) Henri Fayol. Show Answer Correct Answer: C) Henry Mintzberg. 33. Employees receive instructions from one superior only. Which principle is followed? A) Unity of Direction. B) Unity of Command. C) Discipline. D) Authority. Show Answer Correct Answer: B) Unity of Command. 34. Subodh is a middle lever manager. He keeps all his subordinates under a lot of discipline. His employees however complain of wastage of time and efforts as they feel that nothing is being assigned in a proper way and a proper place, also no proper schedule is made for working. Which principle of management is violated here? A) Principle of Unity. B) Principle of Order. C) Unity of Direction. D) Unity of Command. Show Answer Correct Answer: B) Principle of Order. 35. MBO stands for ..... A) Management by objectives. B) Minimum bearing objectives. C) Management before order. D) Major basic order. Show Answer Correct Answer: A) Management by objectives. 36. In many cases, managers do not have complete information, and as a result, biases can occur when making decisions. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 37. The principle of division of work leads to: A) Increased productivity and efficient resource allocation. B) Decreased productivity and inefficient resource allocation. C) No impact on productivity and resource allocation. D) Increased resource allocation but decreased productivity. Show Answer Correct Answer: A) Increased productivity and efficient resource allocation. 38. Which principle promotes long-term employment for skilled PE teachers in schools? A) Equity. B) Scalar Chain. C) Stability of Tenure. D) Initiative. Show Answer Correct Answer: C) Stability of Tenure. 39. Henri Fayol developed 14 principles A) 1. True. B) 1. False. C) All the above. D) None of the above. Show Answer Correct Answer: A) 1. True. 40. A tall organizational structure causes delayed communication. Which principle is involved? A) Scalar Chain. B) Discipline. C) Order. D) Unity of Direction. Show Answer Correct Answer: A) Scalar Chain. 41. What did Taylor want to standardise? A) Material. B) Machine and Tools. C) Methods. D) All of these. Show Answer Correct Answer: D) All of these. 42. 1) Henry Fayol laid down ..... Principles. A) 14. B) 15. C) 10. D) None of the above. Show Answer Correct Answer: A) 14. 43. As a human resources manager for Select Engineering & Manufacturing Corp., Kim Radel had to find inexpensive ways to reward employees and bolster morale during a sales economic downturn. Radel had to engage in which management function? A) Relationship Building. B) Human skill. C) Leading. D) Planning. E) Organizing. Show Answer Correct Answer: C) Leading. 44. Q5) Which principle of management emphasizes the importance of clear and concise communication within an organization? A) Centralization. B) Scalar Chain. C) Order. D) Division of Labor. Show Answer Correct Answer: B) Scalar Chain. 45. An office supply firm that has three departments based upon retail, wholesale, and governmental customers is using which of the following types of departmentalization? A) Product. B) Geographic. C) Customer. D) Functional. Show Answer Correct Answer: C) Customer. 46. Refers to work environments in which colleagues interact by providing opportunities for co-workers to socialize with one another by providing lunch rooms or allowing employees to attend company retreats. A) Social needs. B) Status needs. C) Fulfillment. D) None of the above. Show Answer Correct Answer: A) Social needs. 47. ..... flows from top to bottom in an organisation. A) Authority. B) Responsibility. C) Accountability. D) None of the Above. Show Answer Correct Answer: A) Authority. 48. Which key aspect of CSR involves activities that benefit the communities in which companies operate, such as philanthropy and community development projects? A) Financial Reporting. B) Product Innovation. C) Market Expansion. D) Social Welfare. Show Answer Correct Answer: D) Social Welfare. 49. Which of the following is a principle of scientific management proposed by Frederick Taylor? A) Quality control and inspection. B) Employee empowerment and self-management. C) Time studies and task allocation. D) Team-based decision making and consensus. Show Answer Correct Answer: C) Time studies and task allocation. 50. Centralization refers to ..... A) A situation whereby subordinates. B) The allocation of power from management to employees. C) The authority to identify any problems and suggest suitable solutions to overcome the problem. D) Facilitate the coordination of tasks given to employees at different management level. Show Answer Correct Answer: A) A situation whereby subordinates. 51. An identified group of people contributing their efforts towards the attainment of goals is called an A) Organisation. B) Department. C) Business. D) Management. Show Answer Correct Answer: A) Organisation. 52. Which of the following, according to Fayol, happens to be the meaning of the division of work? A) Equitable division of the whole work among the persons available. B) Allotting a specific part of the whole work to every person. C) Both the above. D) None of the above. Show Answer Correct Answer: C) Both the above. 53. A strategy that allows a skilled and devoted entrepreneur with a credible opportunity and sufficient resources to establish a new enterprise successfully. A) Entrepreneurial Activity. B) Entrepreneurial Strategy. C) Entrepreneurship. D) Entrepreneurial Management. Show Answer Correct Answer: B) Entrepreneurial Strategy. 54. These are all of the tangible finished goods produced by the organization. A) AUGMENTED. B) SERVICES. C) PRODUCT. D) ALTERNATIVE. Show Answer Correct Answer: C) PRODUCT. 55. Which of these is not a monetary incentive? A) Increments. B) Bonus. C) Praising. D) Perquisites. Show Answer Correct Answer: C) Praising. 56. There are 3 Levels of Goals and Plans except ..... A) Strategic Goal/ Strategic Plan. B) Tactical Goal/ Tactical Plan. C) Special Goal/ Specific Plan. D) Tactical Goal/ Tactical Plan. Show Answer Correct Answer: C) Special Goal/ Specific Plan. 57. Hendry concluded that the division of work ..... the productivity, efficiency, accuracy, and speed of the workers A) Breaking. B) Affecting. C) Disprove. D) Improves. Show Answer Correct Answer: D) Improves. 58. Control system of an organisation has no influence over the ..... A) External environment. B) Government. C) Internal environment. D) Customers. Show Answer Correct Answer: A) External environment. 59. Fatigue Study means A) To decrease fatigue in workers. B) To improve working conditions of workers. C) Only to improve working conditions of workers. D) Both a and b. Show Answer Correct Answer: D) Both a and b. 60. Henry Fayol laid down ..... A) 14 principles. B) 13 principles. C) 12 principles. D) 15 principles. Show Answer Correct Answer: A) 14 principles. ← PreviousNext →Related QuizzesCommerce QuizzesClass 12 QuizzesClass 12 Business Studies Chapter 2 Principles Of Management Quiz 1Class 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