This quiz works best with JavaScript enabled. Home > Cbse > Class 12 > Commerce > Business Studies > Class 12 Business Studies Chapter 5 Organising – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Class 12 Business Studies Chapter 5 Organising Quiz 1 (60 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Group of letters = A) Paragraph. B) A word. C) An essay. D) A sentence / phrase. Show Answer Correct Answer: B) A word. 2. Organisation structure establishes relationships between A) Organisation and environment. B) People, work and resources. C) Organisation and society. D) Suppliers and customers. Show Answer Correct Answer: B) People, work and resources. 3. The responsibility flows A) In all directions. B) Downwards. C) Upwards. D) None of the above. Show Answer Correct Answer: C) Upwards. 4. Which of the following is an essence of management? A) Controlling. B) Directing. C) Coordination. D) Supervision. Show Answer Correct Answer: C) Coordination. 5. The sentence that expresses the main point, or idea, of a paragraph is a topic sentence. A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 6. The process of granting decision-making authority to lower-level employees is known as: A) Span of control. B) Delegation. C) Centralization. D) Decentralization. Show Answer Correct Answer: D) Decentralization. 7. The process of grouping jobs into logical units is known as: A) Controlling. B) Directing. C) Organizing. D) Staffing. Show Answer Correct Answer: C) Organizing. 8. ..... is the right to command. A) Authority. B) Responsibility. C) Accountability. D) Both responsibility and accountability. Show Answer Correct Answer: A) Authority. 9. Which of the following is not a benefit of delegation? A) Reduced workload for managers. B) Improved decision-making. C) Increased employee motivation and job satisfaction. D) Reduced accountability and responsibility. Show Answer Correct Answer: D) Reduced accountability and responsibility. 10. The first step in the process of organising involves ..... A) Departmentalization. B) Establishing reporting relationship. C) Identification and division of work. D) Assignment of duties. Show Answer Correct Answer: C) Identification and division of work. 11. At the beginning of each sentence of the paragraph, you should A) Start with small letter. B) Use punctuation. C) Start with a capital letter. D) None of the above. Show Answer Correct Answer: C) Start with a capital letter. 12. Group of words =? A) A word. B) A sentence / phrase. C) An essay. D) Paragraph. Show Answer Correct Answer: B) A sentence / phrase. 13. When Arun started a factory two years back with 50 workers, he had placed 10 workers under direct control of one supervisor. Whereas his friend Ajay, has placed 20 workers under direct control of one supervisor in his garment factory. Identify the concept related to organising being described in the above case. A) Planning. B) Decentralisation. C) Span of management. D) Nne of the above. Show Answer Correct Answer: C) Span of management. 14. Concentration of decision making power at top level is known as A) Decentralisation. B) Delegation. C) Centralisation. D) All of them. Show Answer Correct Answer: C) Centralisation. 15. Assertion:A wide span of control can increase efficiency in an organization.Reason:A wide span of control allows for more delegation of tasks and responsibilities. A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion. C) Assertion is true, but Reason is false. D) Assertion is false, but Reason is true. Show Answer Correct Answer: A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. 16. Which of the following is not a principle of organizing? A) Unity of command. B) Span of control. C) Delegation of authority. D) Centralization. Show Answer Correct Answer: D) Centralization. 17. Span of management means A) No. of superior a subordinate can handle. B) No. of subordinate a superior can handle. C) No. of subordinate a superior can handle effectively. D) Superior ans subordinate relationship. Show Answer Correct Answer: C) No. of subordinate a superior can handle effectively. 18. Once plans are drawn they can not be changed which limitation is highlighted A) Inflexibility. B) Creativity. C) Dynamic. D) Lacks creativity. Show Answer Correct Answer: D) Lacks creativity. 19. Decentralization is the extension of A) Authority. B) Responsibility. C) .delegation. D) Planning. Show Answer Correct Answer: C) .delegation. 20. Which of the following is not a step in the delegation process? A) Performance review. B) Personal bias. C) Assignment of responsibility. D) Granting of authority. Show Answer Correct Answer: B) Personal bias. 21. Grouping of activities on the basis of functions is a part of A) Functional Organisation. B) Divisional Organisation. C) Decentralisation. D) Centralisation. Show Answer Correct Answer: A) Functional Organisation. 22. The process of creating a hierarchy of authority and responsibility in an organization is known as: A) Span of control. B) Departmentalization. C) Scalar principle. D) Unity of command. Show Answer Correct Answer: C) Scalar principle. 23. Which of the following principles of managemnt need not be considered while organising A) Order. B) Unity of Direction. C) Unity of command. D) None of the above. E) All of the above. Show Answer Correct Answer: D) None of the above. 24. Assertion:Unity of command is a basic principle of organization.Reason:Unity of command ensures that each employee reports to only one manager. A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion. C) Assertion is true, but Reason is false. D) Assertion is false, but Reason is true. Show Answer Correct Answer: A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. 25. The accountability flows A) In all directions. B) Downwards. C) Upwards. D) None of the above. Show Answer Correct Answer: C) Upwards. 26. Select the best topic sentence for the paragraph.You run up and down the court. You have to be able to chase down the ball. Sometimes you play for five or six minutes straight without a time out. A) Exercise is hard. B) Basketball is an athletic sport. C) I played basketball last Thanksgiving. D) None of the above. Show Answer Correct Answer: B) Basketball is an athletic sport. 27. Which of the following is a benefit of a decentralized organizational structure? A) Reduced employee motivation and job satisfaction. B) Increased speed of decision-making. C) Reduced flexibility and adaptability. D) Increased coordination difficulties. Show Answer Correct Answer: B) Increased speed of decision-making. 28. Downward transfer of authority from a superior to a subordinate is know as ..... A) Accountability. B) Responsibility. C) Authority. D) None of them. Show Answer Correct Answer: C) Authority. 29. A structure in which there are multiple layers of management is known as: A) Flat structure. B) Tall structure. C) Matrix structure. D) Network structure. Show Answer Correct Answer: B) Tall structure. 30. The number of subordinates who report directly to a manager is known as: A) Authority. B) Responsibility. C) Span of control. D) Unity of command. Show Answer Correct Answer: C) Span of control. 31. Which of the following is not a type of delegation? A) Downward delegation. B) Upward delegation. C) Lateral delegation. D) None of the above. Show Answer Correct Answer: B) Upward delegation. 32. What is a paragraph? A) A set of words that is complete in itself, containing a subject, verb and object. B) Some incomplete sentences together. C) A group of sentences that are all related to one main topic. D) None of the above. Show Answer Correct Answer: C) A group of sentences that are all related to one main topic. 33. What might be the main idea of a book titled "Eat Your Fruits and Vegetables?" A) Tomatoes are good for you. B) Strawberries have seeds on the outside. C) It's important to eat vegetables and fruit. D) Spinach is good for your bones. Show Answer Correct Answer: C) It's important to eat vegetables and fruit. 34. In a paragraph that introduces a new character, which sentence would you expect to find at the beginning? A) When the waves cleared, he emerged, six feet tall and covered in scales and ghastly wounds. B) The room was littered with pizza boxes and empty cans of drink. C) I was scared when I walked into the forest, but I knew I had to find the cottage. D) None of the above. Show Answer Correct Answer: C) I was scared when I walked into the forest, but I knew I had to find the cottage. 35. ..... is the organisational structure in which activities are grouped on the basis of products. A) Functional structure. B) Informal. C) Formal. D) Divisional structure. Show Answer Correct Answer: D) Divisional structure. 36. Which step of Organising is based on the principle Division of Work A) Identification and division of work. B) Departmentalisation. C) Assignment of Duties. D) Establishing reporting relationships. Show Answer Correct Answer: A) Identification and division of work. 37. Which is not the feature of planning? A) Planning is continuous. B) Planning involves decision making. C) Planning doesn't guarantee success. D) It is pervasive. Show Answer Correct Answer: C) Planning doesn't guarantee success. 38. One of the importance of organizing is: A) Leads to innovation. B) Guarantee success. C) Optimum utilization of resources. D) Improves creativity. Show Answer Correct Answer: C) Optimum utilization of resources. 39. ..... cannot be delegated. A) Authority. B) Responsibility. C) Accountability. D) Both authority and responsibility. Show Answer Correct Answer: C) Accountability. 40. Assertion:Formal organization is created by management to accomplish specific tasks.Reason:Formal organization is based on a written agreement between the employer and employees. A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. B) Both Assertion and Reason are true, but Reason is not the correct explanation of Assertion. C) Assertion is true, but Reason is false. D) Assertion is false, but Reason is true. Show Answer Correct Answer: A) Both Assertion and Reason are true and Reason is the correct explanation of Assertion. 41. Who reports to whom is decided in the following step of organising process A) Identifying the activities. B) Establish authority relationship. C) Assignment of duties. D) Grouping the activities. Show Answer Correct Answer: B) Establish authority relationship. 42. After completing a course in film production, Rishabh shared his vision to start an advertising agency with his father. His father advised him to first determine the framework of his company in terms of various job positions that he intends to create Identify the concept of organising being described in the above lines. A) Organisational structure. B) Organisation. C) Decentralisation. D) None of the above. Show Answer Correct Answer: A) Organisational structure. 43. Responsibility is derived from A) Authority. B) Formal position. C) Accountability. D) All of the above. Show Answer Correct Answer: A) Authority. 44. Under ..... , a manager gains experience in all functions related to a particular product. A) Functional structure. B) Divisional structure. C) All the above. D) None of the above. Show Answer Correct Answer: B) Divisional structure. 45. Functional structure is inbuilt in divisional structure A) True. B) False. C) All the above. D) None of the above. Show Answer Correct Answer: A) True. 46. The planning function of management is conducted at which level of management? A) Top level. B) Middle level. C) Operational level. D) None of the above. Show Answer Correct Answer: A) Top level. 47. If a company deals in metal products and plastic products, what type of organisation will be useful for it? A) Informal. B) Functional. C) Both of the above. D) Divisional. Show Answer Correct Answer: D) Divisional. 48. ..... is the process of grouping similar activities together and creating departments. A) Departmentalisation. B) Division of work. C) Delegation. D) Centralisation. Show Answer Correct Answer: A) Departmentalisation. 49. For delegation to be effective it is essential that responsibility be accompanied with necessary A) Promotions. B) Authority. C) Manpower. D) Incentives. Show Answer Correct Answer: B) Authority. 50. Which of the following is not correct with reference to 'Specialization" term? A) It reduces the workload & enhances productivity. B) Specific workers performing a specific job on regular basis. C) Allow a worker to gain experience. D) It leads to chaos. Show Answer Correct Answer: D) It leads to chaos. 51. Responsibility flows from:- A) (a) Superior to subordinate. B) (b) Subordinate to superior. C) All the above. D) None of the above. Show Answer Correct Answer: B) (b) Subordinate to superior. 52. Organising process includes one of the following: A) Prescribing disciplinary action. B) Prescribing work schedule. C) Grouping of activities. D) Determining objectives. Show Answer Correct Answer: C) Grouping of activities. 53. The process of assigning a higher-level employee to supervise and guide the work of a lower-level employee is known as: A) Coordination. B) Span of control. C) Unity of command. D) Supervision. Show Answer Correct Answer: D) Supervision. 54. Which function of management establishes the principle ORDER A) Staffing. B) Directing. C) Planning. D) Organising. Show Answer Correct Answer: D) Organising. 55. Why might you start a new paragraph? A) Because a new person is talking. B) To show a change in setting. C) So show the passing of time. D) All of these reasons. Show Answer Correct Answer: D) All of these reasons. 56. Evenly distribution of Authority at every level leads to A) Decentralisation. B) Informal Organisation. C) Formal Organisation. D) Delegation. Show Answer Correct Answer: A) Decentralisation. 57. Name the process which co-ordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives, A) Organising. B) Management. C) Planning. D) Staffing. Show Answer Correct Answer: A) Organising. 58. Degree of decentralisation indicates A) Degree of accountability. B) Degree of power delegation. C) Degree of responsibility. D) Degree of authority delegation. Show Answer Correct Answer: D) Degree of authority delegation. 59. One of the following is not an importance of organising: A) Role clarity. B) Performance appraisal. C) Adaptation to change. D) Growth and expansion. Show Answer Correct Answer: B) Performance appraisal. 60. Complete centralisation would imply concentration of all decision-making functions at the ..... A) Lower level of the management hierarchy. B) Apex of the management hierarchy. C) Middle level of management. D) None of these. Show Answer Correct Answer: B) Apex of the management hierarchy. 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