This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 2 Principles Of Management – Quiz 24 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 2 Principles Of Management Quiz 24 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. ..... means of authority from the top level to the lower level for the purpose of communication A) Order. B) Scalar chain. C) Command. D) Equality. Show Answer Correct Answer: B) Scalar chain. 2. In management, the various roles that managers are called on to perform are defined in which process? A) Business process. B) Executive process. C) Management process. D) Supervisory process. Show Answer Correct Answer: C) Management process. 3. 3) Basic aim of functional foremanship is ..... A) Not to divide the work. B) To separate Top level management from CEO. C) To separate planning and execution function. D) None of these. Show Answer Correct Answer: C) To separate planning and execution function. 4. What is the significance of the principle of Division of Work? A) It leads to specialization and improves efficiency. B) It creates confusion among employees. C) It reduces the quality of work. D) It is not applicable in modern organizations. Show Answer Correct Answer: A) It leads to specialization and improves efficiency. 5. To make an ethics code effective, which of the following should be done? A) Involve those who have to live with it in writing the statement. B) Focus on real-life situations that employees can relate to. C) Keep it short and easily understood and remembered. D) All of the above. Show Answer Correct Answer: D) All of the above. 6. Hugo Munsterberg pioneered in the field of industrial psychology. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 7. What is the main focus of Compliance-Based Ethics Programs? A) Fostering a culture of ethical decision-making. B) Adherence to external laws, regulations, and policies. C) Maximizing profits for shareholders. D) Promoting personal responsibility. Show Answer Correct Answer: B) Adherence to external laws, regulations, and policies. 8. Which stakeholder is interested in "Value for moneyProduct quality & customer service" A) Shareholders / Owners. B) Managers & Employees. C) Customers. D) None of the above. Show Answer Correct Answer: C) Customers. 9. The ethical climate is shaped by the core ..... and beliefs that are upheld within the organization. A) Values. B) Locations. C) Rules. D) Profits. Show Answer Correct Answer: A) Values. 10. The principles of division of labour may be used to a government office where a diary/dispatch clerk receives and sends mail, and a data entry operator enters data into a computer. Division of labour also applies to limited companies with different divisions such as production, finance, research & development, and so on. Which aspect of management principles is highlighted above? A) Flexible. B) General Guidelines. C) Contingent. D) Universal applicability. Show Answer Correct Answer: D) Universal applicability. 11. When the leadership style is centered on the use of fear, threat and punishment, this type of leadership style is known as ..... A) Democratic. B) Autocratic. C) Strategic. D) Laissez-faire. Show Answer Correct Answer: B) Autocratic. 12. It entails scouting for potential personnel from outside the company. A) Internal Recruitment. B) External Recruitment. C) Outsourcing. D) Recruitment. Show Answer Correct Answer: B) External Recruitment. 13. Directive / Instruction to do or not to do so is called A) Programme. B) Method. C) Rules. D) Process. Show Answer Correct Answer: C) Rules. 14. What is effectiveness? A) Doing things right, or getting the most output from the least amount of inputs. B) Doing the right things or doing those work activities that will result in achieving goals. C) All the above. D) None of the above. Show Answer Correct Answer: B) Doing the right things or doing those work activities that will result in achieving goals. 15. Labor includes all workers who provide the service or produce the products. Labor is especially a concern when it is unionized. A) TRUE. B) FALSE. C) All the above. D) None of the above. Show Answer Correct Answer: A) TRUE. 16. He believed that production and profit would increase if the conditions of the workers were improved. A) ADAM SMITH. B) HENRY GANTT. C) KARL MARX. D) ROBERT OWEN. Show Answer Correct Answer: D) ROBERT OWEN. 17. Which management theory emphasizes the importance of human relations? A) Human Relations Theory. B) Contingency Theory. C) Systems Theory. D) Scientific Management Theory. Show Answer Correct Answer: A) Human Relations Theory. 18. To what time-frame do strategic plans relate? A) Long Term. B) Medium Term. C) Short Term. D) Unspecified Time. Show Answer Correct Answer: A) Long Term. 19. Which of the following is NOT a level of organizational behavior? A) Individual level. B) Group level. C) Financial level. D) None of the above. Show Answer Correct Answer: C) Financial level. 20. Which leadership style is suitable? For Highly skilled workforce A) Laissez-faire. B) Autocratic. C) Transactional. D) Democratic/participative. Show Answer Correct Answer: A) Laissez-faire. 21. Whether the following statement is true or false.' There should be pure centralisation in an enterprise '. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 22. Which leadership style emphasizes high concern for both people and production? A) Middle of the Road Management. B) Task Authoritarian Management. C) Impoverished Management. D) Country Club Management. Show Answer Correct Answer: B) Task Authoritarian Management. 23. What does the principle of Centralization and Decentralization suggest? A) There should be a balance between centralization and decentralization. B) All decisions should be made by lower-level employees. C) Centralization is always better than decentralization. D) Decentralization leads to chaos. Show Answer Correct Answer: A) There should be a balance between centralization and decentralization. 24. ..... is a function of management which follow planning. It is also defined as the process of determining what needs to be done, how it will be done and who is to do it. A) Organizing. B) Leading. C) Controlling. D) Planning. Show Answer Correct Answer: A) Organizing. 25. CSR also extends to how companies interact with their customers. This is known as: A) Stakeholder Engagement. B) Customer Relations. C) Corporate Governance. D) Social Welfare. Show Answer Correct Answer: B) Customer Relations. 26. If a new contract is substituted in place of an existing contract, it is called ..... A) Alteration. B) Remission. C) Novation. D) Waiver. Show Answer Correct Answer: C) Novation. 27. The principles of management are significant because of A) Optimum utilisation of resources. B) Increase in efficiency. C) Initiative. D) Adaptation to changing technology. Show Answer Correct Answer: B) Increase in efficiency. 28. It is a meeting wherein you answer questions about your qualifications and talents for a job. A) Meeting. B) Orientation. C) Testing. D) Interview. Show Answer Correct Answer: D) Interview. 29. What is a key benefit of partnership over sole proprietorship? A) More capital and shared responsibility. B) Limited liability. C) Government support. D) Better public image. Show Answer Correct Answer: A) More capital and shared responsibility. 30. What does the principle of Unity of Direction emphasize? A) Individual goals over organizational goals. B) Multiple plans for different teams. C) One head and one plan for a group of activities. D) No need for a coordinated strategy. Show Answer Correct Answer: C) One head and one plan for a group of activities. 31. Span of control means: A) Number of subordinates a manager can supervise. B) Number of levels in management. C) Authority over resources. D) Scope of planning. Show Answer Correct Answer: A) Number of subordinates a manager can supervise. 32. Organisation interest supersede employees interest is indicated in A) Principle of discipline. B) Principle of subordination of individual interest to general interest. C) Principle of initiative. D) Principle of Esprit de corps. Show Answer Correct Answer: B) Principle of subordination of individual interest to general interest. 33. In case of emergency where delay has to be avoided which principle can be violated. A) Scalar chain. B) Unity of command. C) Authority. D) None of the above. Show Answer Correct Answer: A) Scalar chain. 34. Closed managers believe employees A) Should be trusted and respected. B) Should be empowered. C) Are not very interested by their work. D) Generally enjoy their work. Show Answer Correct Answer: C) Are not very interested by their work. 35. What is the primary goal of training in an organization? A) To increase employee turnover. B) To improve job knowledge and skills. C) To reduce operational costs. D) To enhance marketing strategies. Show Answer Correct Answer: B) To improve job knowledge and skills. 36. The line of authority from the highest executive to the lower one for the purpose of communication is known as A) Unity of command. B) Order. C) Scalar chain. D) Unity of direction. Show Answer Correct Answer: C) Scalar chain. 37. Increase in sales by 20% ..... Which step in planning process. A) Setting objectives. B) Developing premises. C) Follow up action. D) Implementing the plan. Show Answer Correct Answer: A) Setting objectives. 38. The Top Managers are given the designation of A) Supervisors. B) Vice President. C) Division manager. D) Shift manager. Show Answer Correct Answer: B) Vice President. 39. Where do Taylor's Scientific Management apply? A) Factory. B) Shop. C) Business. D) Office. Show Answer Correct Answer: A) Factory. 40. Delegating one or more business processes to an external provider, which then owns, manages and administers the selected processes to an agreed standard A) Internal recruitment. B) Outsourcing. C) Selection. D) External recruitment. Show Answer Correct Answer: B) Outsourcing. 41. Which of the following is a characteristic of an effective work team? A) Employees are self-centered. B) Productivity is determined by a single member. C) Require minimal monitoring by management. D) Team members each of their own agendas. Show Answer Correct Answer: C) Require minimal monitoring by management. 42. ..... includes those needs that provide a person with a sense of security and well being A) Social needs. B) Physiological needs. C) Esteem needs. D) Safety or security needs. Show Answer Correct Answer: D) Safety or security needs. 43. Refers collectively to commercial services, such as catering and cleaning, that supply the personal needs of customers. A) Personal services. B) Recreational services. C) Professional services. D) None of the above. Show Answer Correct Answer: A) Personal services. 44. What does the term 'Scientific Management' refer to? A) Enhancing labor productivity through scientific analysis. B) Standardizing work processes. C) Implementing performance-based pay. D) All of the above. Show Answer Correct Answer: D) All of the above. 45. In what order do managers typically perform the managerial functions? A) Planning, Organizing, Staffing, Controlling, Leading. B) Planning, Organizing, Staffing, Leading, Controlling. C) Planning, Staffing, Leading, Controlling, Organizing. D) Organizing, Staffing, Planning, Leading, Controlling. Show Answer Correct Answer: B) Planning, Organizing, Staffing, Leading, Controlling. 46. What is ethical relativism? A) The belief that ethical or moral principles are universal. B) The belief that ethical or moral principles are shaped by cultural, historical, or individual contexts. C) The belief that there is one objective standard for morality. D) The belief that ethics do not matter. Show Answer Correct Answer: B) The belief that ethical or moral principles are shaped by cultural, historical, or individual contexts. 47. Overall planning and strategic planning is done by A) Supervisory level management. B) Middle level management. C) Top level management. D) None of these. Show Answer Correct Answer: C) Top level management. 48. What is the result of human limitation to the span of management? A) Satisfaction. B) Development. C) Motivation. D) Delegation. Show Answer Correct Answer: D) Delegation. 49. 3) Who wrote the famous book "General and Industrial Administration" . A) Henry Fayol. B) F.W. Taylor. C) All the above. D) None of the above. Show Answer Correct Answer: A) Henry Fayol. 50. DEI can become a politically charged issue, especially when discussions about social justice, privilege, and systemic inequalities are involved. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 51. Which leadership style is suitable? When a quick decision needs to be madeEmergenciesWhen employees need lots of direction A) Autocratic. B) Democratic/participative. C) Paternalistic. D) Charismatic. Show Answer Correct Answer: A) Autocratic. 52. Organizational culture is similar to an individual's: A) Ability. B) Personality. C) Motivation. D) Skills. Show Answer Correct Answer: B) Personality. 53. Fill in the blank:Aiden's new startup uses various means to inform the public about its services and reach a wider customer base. This component of service marketing is known as ..... A) Process. B) Promotion. C) Physical evidence. D) Price. Show Answer Correct Answer: B) Promotion. 54. As director of human resources, Leah is responsible for creating a formal system of task and reporting relationships to enable employees to meet organizational goals. Leah is demonstrating the ..... function of management. A) Organizing. B) Planning. C) Restructuring. D) Controlling. E) Leading. Show Answer Correct Answer: A) Organizing. 55. Decision making is not a goal oriented process A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: B) False. 56. One good thing about the Principles of Management is that it helps understand the relationship between human and material resources in achieving organisational goals. Which feature of the Principles of Management is described in the above statement? A) Behavioural. B) Cause and effect relationships. C) Use of resources and effective administration. D) None of the above. Show Answer Correct Answer: A) Behavioural. 57. Controlling ensures: A) Leadership is ignored. B) Motivation is unnecessary. C) Resources are wasted. D) Plans are implemented properly. Show Answer Correct Answer: D) Plans are implemented properly. 58. What is characteristic of effective goal setting? A) Challenging but achievable. B) Encourages detailed planning. C) Review progress. D) Flexible and empowered workforce. Show Answer Correct Answer: A) Challenging but achievable. 59. Which is NOT a type of plan? A) Supervision. B) Objective. C) Strategy. D) Procedure. Show Answer Correct Answer: A) Supervision. 60. When Usman decides to deploy employees to another department that is lagging behind in production, he is acting in which of the following roles? A) Spokesperson. B) Negotiator. C) Leader. D) Resource allocator. Show Answer Correct Answer: D) Resource allocator. ← 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