This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 2 Principles Of Management – Quiz 20 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 2 Principles Of Management Quiz 20 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the manager is over burdened then he must use the following concept A) Decentralisation. B) Delegation. C) Span of management. D) None of the above. Show Answer Correct Answer: B) Delegation. 2. People with similar skills and performing similar tasks are grouped together into formal work units. What type of organisational structure is this? A) Functional structure. B) Line structure. C) Committee structure. D) Matrix structure. Show Answer Correct Answer: A) Functional structure. 3. We also had the famous trade between Manila and Acapulco in Mexico in the 18th century. This trade, however, did little for the development of the Philippines because the one who obtained the profit were the Chinese. What is it called? A) GALLEON TRADE. B) TRIANGULAR TRADE. C) ASIAN TRADE. D) PERSIAN TRADE. Show Answer Correct Answer: A) GALLEON TRADE. 4. Which of the following should a business NOT consider when developing its management strategy? A) The office renovations. B) The employees. C) The type of business. D) The environment. Show Answer Correct Answer: A) The office renovations. 5. Which of the following best describes 'Diversity' as defined in DEI? A) Ensuring fairness and justice in treatment. B) Creating a culture where all feel welcomed. C) Presence of a variety of different identities and backgrounds. D) Providing resources to level the playing field. Show Answer Correct Answer: C) Presence of a variety of different identities and backgrounds. 6. Apple is experiencing increased competition from Samsung A) Weakness. B) Opportunity. C) Strength. D) Threats. Show Answer Correct Answer: D) Threats. 7. What does the term 'centralization' refer to in an organization? A) Creating a flat organizational structure. B) Consolidating decision-making authority. C) Distributing decision-making power. D) Encouraging employee autonomy. Show Answer Correct Answer: B) Consolidating decision-making authority. 8. Elton Mayo is best known for which series of studies? A) Time and motion studies. B) Hawthorne studies. C) Management by objectives. D) 14 Principles of Management. Show Answer Correct Answer: B) Hawthorne studies. 9. What is the theory of leadership? A) Giving best example and inspiration to the employees. B) Showing imbalance attitude for workers to follow. C) Giving work life balance and more remote working. D) Leading active action. Show Answer Correct Answer: A) Giving best example and inspiration to the employees. 10. Name and explain the technique of scientific management which explains in eliminating unnecesssary diversity of products& thus results in saving cost? A) Time study. B) Simplification. C) Motion study. D) None of the above. Show Answer Correct Answer: B) Simplification. 11. When the Chicago based Club Aluminum Company was facing bankruptcy, one of the changes it new CEO made was to create a ..... for all employees to follow in their business and professional lives. It read, 'Of the things we think, say and do:(1) Is it the truth? (2) Is it fair to all concerned? (3) Will it build goodwill? A) Code of ethic. B) .State of ulitarianism. C) Mission statement of principle. D) Statement of concern. Show Answer Correct Answer: A) Code of ethic. 12. According to Allen, which are not the primary features of an organisation A) Source of Authority. B) Division of Labour. C) Frustration. D) Relationship. Show Answer Correct Answer: C) Frustration. 13. A manager that conducts most of the coordination activities within the firm, and they are responsible for implementing programs and policies formulated A) Middle-level Manager. B) First-level Manager. C) Supervisor. D) Top-level Manager. Show Answer Correct Answer: A) Middle-level Manager. 14. What is the principle of Stability of Personnel about? A) Continuity and consistency in staffing. B) Frequent employee turnover. C) Avoiding experienced personnel. D) Hiring new employees constantly. Show Answer Correct Answer: A) Continuity and consistency in staffing. 15. According to Henri Fayol, which of the following is true of discipline? A) Penalties are properly applied. B) Superiors at all levels of an organisation who are always clear and fair. C) Agreements between two parties that are always clear and fair. D) All of the above. Show Answer Correct Answer: D) All of the above. 16. Planning is made by A) Top level of management. B) Lower level of management. C) Lower level of management. D) All levels of management. Show Answer Correct Answer: D) All levels of management. 17. A flat organizational structure emphasizes: A) More levels. B) Fewer levels of management. C) More hierarchy. D) None. Show Answer Correct Answer: B) Fewer levels of management. 18. Who have the power to take a important decision in MBE? A) Manager. B) Supervisor. C) Employees. D) Concerned authority. Show Answer Correct Answer: A) Manager. 19. Which principle of management states One head One plan A) Unity of command. B) Unity of direction. C) Centralisation. D) Order. Show Answer Correct Answer: B) Unity of direction. 20. What is a key challenge for managers in today's business environment? A) Decreasing innovation. B) Eliminating customer feedback. C) Reducing competition. D) Managing diverse workforces. Show Answer Correct Answer: D) Managing diverse workforces. 21. Universalism suggests that there should be a set of ..... that guide business behavior across borders. A) Ethical standards. B) Financial incentives. C) Marketing strategies. D) Legal loopholes. Show Answer Correct Answer: A) Ethical standards. 22. It means transmittal of understanding A) Leadership. B) Orientation. C) Delegation. D) Communication. Show Answer Correct Answer: D) Communication. 23. Ali's position is at the lowest level in the management hierarchy. He also don't have power and authority in the organizations. Ali's position is refer to ..... A) Top line manager. B) Chief Executives Officer. C) Middle line manager. D) First line manager. Show Answer Correct Answer: D) First line manager. 24. A group of people authorized to act as a single entity (legally a person) and recognized as such in law. A) Corporation. B) Cooperative. C) Partnership. D) None of the above. Show Answer Correct Answer: A) Corporation. 25. Abigail and Mia are working on a project about global business strategies. They discover that the Philippines has emerged as a focal point for international companies aiming to broaden their reach in global markets. What is the main reason for this? A) Its innovative advertisements. B) Its dynamic marketing initiatives. C) Both A and B. D) None of the above. Show Answer Correct Answer: C) Both A and B. 26. What are the management and leadership styles? A) Autocratic. B) Transactional. C) Laissez-faire. D) Paternalistic. E) Democratic/participative. Show Answer Correct Answer: A) Autocratic. 27. What does the principle of Order emphasize? A) A place for everything and everyone in the organization. B) Order is not necessary for efficiency. C) Employees should be free to work wherever they want. D) Order leads to inefficiency. Show Answer Correct Answer: A) A place for everything and everyone in the organization. 28. What is the primary purpose of organization design? A) To create a hierarchical structure. B) To enable an organization to excel in its operations and achieve its objectives. C) To streamline communication channels. D) None of the above. Show Answer Correct Answer: B) To enable an organization to excel in its operations and achieve its objectives. 29. Under Scientific Management Scientific task setting includes ..... A) Time study. B) Motion study. C) Method study. D) All the above. Show Answer Correct Answer: D) All the above. 30. ..... explains that people with similar attitudes, interest and work related needs are attracted to one another. A) Balance Theory. B) Propinquity Theory. C) Complementarity theory. D) Interaction Theory. Show Answer Correct Answer: A) Balance Theory. 31. Utilitarianism directly seeks the greatest good for the greatest number of ..... A) Leaders. B) Nations. C) Animals. D) People. Show Answer Correct Answer: D) People. 32. In Mintzberg's view, the roles of figurehead, leader, and liaison are all in decisional roles. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 33. What is the importance of effective communication? A) Ensuring everyone is on the same page. B) Clearly explaining project details. C) Sharing information effectively. D) All of the above. Show Answer Correct Answer: D) All of the above. 34. Which of the following is NOT an example of an organization's general environment? A) A. Economic conditions. B) B. Political conditions. C) C. Social conditions. D) None of the above. Show Answer Correct Answer: C) C. Social conditions. 35. Covid 19 cases are rising in the United States A) Threats. B) Strength. C) Weakness. D) Opportunity. Show Answer Correct Answer: A) Threats. 36. The philosophy of management known as total quality management developed primarily out of the work of: A) Frederick Taylor. B) Henri Fayol. C) W. Edwards Deming. D) Robert Mc Namara. Show Answer Correct Answer: C) W. Edwards Deming. 37. Top management is responsible for setting the ..... tone of an organization. A) Financial. B) Moral. C) Physical. D) Technical. Show Answer Correct Answer: B) Moral. 38. Corporate Social Responsibility (CSR) relates to: A) Profit maximization. B) Business responsibility towards society. C) Employee recruitment. D) None. Show Answer Correct Answer: B) Business responsibility towards society. 39. Which of the following is one of Henri Fayol's 14 Principles of Management? A) Product Innovation. B) Market Analysis. C) Division of Work. D) Customer Satisfaction. Show Answer Correct Answer: C) Division of Work. 40. An individual who notices opportunities and decides how to mobilize resources necessary to start a new business venture. A) Risk taker. B) Bill Gates. C) Steven Jobs. D) Entrepreneur. Show Answer Correct Answer: D) Entrepreneur. 41. Which of the following is a need that motivates human behavior as per the achievement motivation theory? A) Power. B) Affiliation. C) Achievement. D) All the above. Show Answer Correct Answer: D) All the above. 42. Quasi contracts are ..... A) Valid. B) Illegal. C) Voidable. D) Void. Show Answer Correct Answer: A) Valid. 43. En. Amsyar is a Board of Director at Syarikat Maju Sdn Bhd. He is responsible to set the goals of the company, scan the environment and making the decision for the company. En Amsyar is in which level of management? A) First line manager. B) Team Leader. C) Top line manager. D) Middle line manager. Show Answer Correct Answer: C) Top line manager. 44. Which unit covers the topic of 'Ethical Dilemmas'? A) Unit 1:Business Management Functions. B) Unit 4:Ethics and Social Responsibility. C) Unit 5:Human Resources Management. D) Unit 6:Technology and Communications. Show Answer Correct Answer: B) Unit 4:Ethics and Social Responsibility. 45. When objectives are not written down or rarely verbalized, and the planning is general and lacks continuity, which of the following types of planning is used? A) Economic planning. B) Environmental planning. C) Formal planning. D) Informal planning. Show Answer Correct Answer: D) Informal planning. 46. Managers are frequently called on to investigate a problem and then to decide on and implement a remedy A) Technical. B) Diagnostic. C) Political. D) Interpersonal. Show Answer Correct Answer: B) Diagnostic. 47. What we formalize in structure? A) Process, rules of getting work done. B) Responsibility, information flow, authority. C) Restructurization of the company. D) Who is where in the organization. Show Answer Correct Answer: B) Responsibility, information flow, authority. 48. Employees feel secure due to long-term employment. Which principle is applied? A) Stability of Tenure. B) Initiative. C) Order. D) Discipline. Show Answer Correct Answer: A) Stability of Tenure. 49. Who is the father of the Scientific Management Movement? A) Hentry Fayol. B) F.W.Taylor. C) Harold Koontz. D) Charles Babbage. Show Answer Correct Answer: B) F.W.Taylor. 50. Some One who coordinates and oversees the work of other people in order to accomplish organization goals A) Manager. B) Management. C) Administration. D) None of the above. Show Answer Correct Answer: A) Manager. 51. Corporate rituals are repetitive sequences of activities that express and reinforce the key values of an organization. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 52. Integrity-Based Ethics Programs rely solely on punitive measures to enforce ethical behavior. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 53. Formalization increases as firms get older, larger, and more regulated A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 54. In a manufacturing company, according to Fayol, what is the meaning of the division of work? A) Equitably dividing the entire production process among the workers available. B) Assigning a specific part of the production process to every worker. C) Both of the above. D) None of the above above. Show Answer Correct Answer: A) Equitably dividing the entire production process among the workers available. 55. Staffing function begins with ..... A) Estimating manpower requirements. B) Training. C) Promotion. D) Selection. Show Answer Correct Answer: A) Estimating manpower requirements. 56. Individual managers tend to perceive themselves to be more ..... than their peers. A) Productive. B) Ethical. C) Informed. D) Competitive. Show Answer Correct Answer: B) Ethical. 57. "Management is establishing an effective environment for people operating in formal organizational group" was propounded by: A) Robert L. Trewelly. B) Koontz and O' Donnel. C) M Gene Newport. D) Koontz and Mary Weihrich. Show Answer Correct Answer: B) Koontz and O' Donnel. 58. Which of the following is NOT a topic covered in the Principles of Management course? A) Planning and Strategic Management. B) Ethics and Social Responsibility. C) Financial Accounting. D) Managerial Control. Show Answer Correct Answer: C) Financial Accounting. 59. Middle and low level managers have the decision making power in ..... organizations. A) Centralized. B) Decentralized. C) All the above. D) None of the above. Show Answer Correct Answer: B) Decentralized. 60. External factors such as jobs and prices of natural resources are important factors that can affect organizational decisions. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. ← 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 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 8 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books