This quiz works best with JavaScript enabled. Home > Class 12 > 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 (25 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 managers. B) Length of term for which a manager is appointed. C) Number of subordinates under a superior. D) Number of in members in top management. Show Answer Correct Answer: C) 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) Position Power. B) Reward Power. C) Expert Power. D) Identity Power. Show Answer Correct Answer: B) 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) Balance Theory. B) Propinquity Theory. C) Complementarity theory. D) Interaction Theory. Show Answer Correct Answer: B) Propinquity Theory. 11. Organizations that are highly flexible and adaptive are described as which of the following? A) Organic. B) Mechanistic. C) Rational. D) Intuitive. Show Answer Correct Answer: A) 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) Discipline. B) Equity. C) Division of work. D) Order. Show Answer Correct Answer: C) 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) Planning. B) Organizing. C) Review. D) Research. Show Answer Correct Answer: A) 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) Method. B) Motion. C) Time. D) Fatigue. Show Answer Correct Answer: C) Time. 17. Principle of Responsibility and authority insists on A) Responsibility> Authority. B) Authority> Responsibility. C) Authority= Responsibility. D) All of the above. Show Answer Correct Answer: C) Authority= Responsibility. 18. Frequent ..... increase selection and training cost. A) Labour turnover. B) Absenteeism. C) Wastage. D) Productivity. Show Answer Correct Answer: A) Labour turnover. 19. Small Business A) AN INDEPENDENT, FOR PROFIT FIRM WITH FEWER THAN 500 EMPLOYEES. B) A NON-PROFIT ORGANIZATION. C) A SMALL CHAIN BUSINESS OWNED BY ONE PERSON. D) None of the above. Show Answer Correct Answer: A) AN INDEPENDENT, FOR PROFIT FIRM WITH FEWER THAN 500 EMPLOYEES. 20. 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. 21. When managers need new information to make decisions, how should the information be collected? A) Through research. B) Through fabrication. C) Through obsolete resources. D) Managers should never introduce new information. Show Answer Correct Answer: A) Through research. 22. 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) CLASSICAL ORGANIZATIONAL. D) SYSTEMS THEORY. Show Answer Correct Answer: D) SYSTEMS THEORY. 23. 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. 24. 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) Initiative. B) Unity of Direction. C) Centralization. D) Subordination of Individual Interest to General Interest. Show Answer Correct Answer: D) Subordination of Individual Interest to General Interest. 25. 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. 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