CBSE Class 12 Business Studies Organising MCQs

Question: Under what function of management the relationship between different posts (positions) is explained?

(a) Planning

(b) Communication

(c) Organisation

(d) Supervision

Answer: C

Question: Where lies the need of organisation?

(a) In business organisation

(b) In non-business organisation

(c) In both (a) and (b)

(d) No where

Answer: C

Question: Which organisation structure is consciously or deliberately established?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None

Answer: A

Question: Which organisation structure is based on rules and procedures?

(a) Informal

(b) Formal

(c) Both (a) and (b)

(d) None

Answer: B

Question: Which structure of organisation is helpful in locating the inefficient employees?

(a) Formal

(b) Informal

(c) Both the above

(d) None of the above

Answer: A

Question: Which organisation structure does not have duplication of work?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None of these

Answer: A

Question: Which of the following is not the disadvantage of formal organisation?

(a) Lack of initiative

(b) Delay in work

(c) Lack of favouritism

(d) Mechanical relationship

Answer: C

Question: In which organisation structure do we find “group norms”?

(a) Formal

(b) Informal

(c) Both (a) and (b)

(d) None of these

Answer: B

Question: Which of the following is not an element of delegation?

(a) Accountability

(b) Authority

(c) Responsibility

(d) Informal organisation

Answer: D

Question: A network of social relationship that arises spontaneously due to interaction at work is called:

(a) Formal organisation

(b) Informal organisation

(c) Decentralisation

(d) Delegation

Answer: B

Question: Which of the following does not follow the scalar chain?

(a) Functional structure

(b) Divisional structure

(c) Formal organisation

(d) Informal organisation.

Answer: D

Question: A tall structure has a

(a) Narrow span of management

(b) Wide span of management

(c) No span of management

(d) Less levels of management

Answer: A

Question: Centralisation refers to

(a) Retention of decision-making authority

(b) Dispersal of decision-making authority

(c) Creating divisions as profit centre’s

(d) Opening new centres or branches

Answer: A

Question: For delegation to be effective it is essential that responsibility be accompanied with necessary

(a) Authority

(b) Manpower

(c) Incentives

(d) Promotions.

Answer: A

Question:  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 members in top management

Answer: C

Question: The form of organisation known for giving rise to rumours is called

(a) Centralised organisation

(b) Decentralised organisation

(c) Informal organisation

(d) Formal organization

Answer: B

Question:  Grouping of activities on the basis of product lines is a part of

(a) Delegated organization

(b) Divisional organisation

(c) Functional organisation

(d) Autonomous organization

Answer: B

Question:  “Organisation is the harmonious adjustment of specialised parts of the accomplishment of some common purpose or purposes.” What does this statement imply?

(a) It implies the features of organisation

(b) It implies the importance of organisation like specialisation, adaptation to change etc

(c) It refers to the process of organisation which includes assignment of duties

(d) None of the above

Answer: B

Question:  ........... is the obligation to perform the assigned task.

(a) Authority

(b) Responsibility

(c) Accountability

(d) Permissibility

Answer: B

Question:  Vardhman Ltd. is engaged in manufacturing travelling bags. The objective of the company is to manufacture 50 bags a day. To achieve this, the efforts of all departments are co-ordinated, interlinked, authority, responsibility and relationship is established among various job positions. There is clarity on who is to report to whom. Which step of organising is being discussed here?

(a) Division of work

(b) Departmentalisation

(c) Assignment of duties

(d) Reporting relationships

Answer: D

Question:  There is a board meeting going on for the Synco Informatics Ltd. Two of the top level managers, Mr. Vivek and Mr. Ankit are of a different view when it comes to the kind of working structure of the organisation. Mr. Vivek says that the organisation deals in variety of products, the growth prospects of the organisation are high and that it wants to expand to different territories. Which structure is he fighting for?

(a) Divisional structure

(b) Functional structure

(c) Matrix structure

(d) Line structure

Answer: A

Question:  Everest Ltd. is engaged in manufacturing of refrigerators. The target of the organisation is to manufacture 200 refrigerators a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure.
Identify the type of organisation structure described above.

(a) Formal

(b) Divisional

(c) Functional

(d) Informal

Answer: C

Question:  Grouping of activities on the basis of functions is a part of

(a) Decentralised organisation

(b) Divisional organisation

(c) Functional organisation   

(d) Centralised organization

Answer: C