CBSE Class 12 Business Studies Principles of Management MCQs

Refer to CBSE Class 12 Business Studies Principles of Management MCQs provided below available for download in Pdf. The MCQ Questions for Class 12 Business Studies with answers are aligned as per the latest syllabus and exam pattern suggested by CBSE, NCERT and KVS. Multiple Choice Questions for Chapter 2 Principles of Management are an important part of exams for Class 12 Business Studies and if practiced properly can help you to improve your understanding and get higher marks. Refer to more Chapter-wise MCQs for CBSE Class 12 Business Studies and also download more latest study material for all subjects

MCQ for Class 12 Business Studies Chapter 2 Principles of Management

Class 12 Business Studies students should refer to the following multiple-choice questions with answers for Chapter 2 Principles of Management in Class 12.

Chapter 2 Principles of Management MCQ Questions Class 12 Business Studies with Answers


Question:  Who is the considered as the father of Scientific Management?

a)  Henry Fayol

b)  Gilberth

c)  F W Taylor

d)  Harold Koontz                                            

Answer: C

 

Question:  Who is known as father of General Management?

a) Henry Fayol

b) Gilberth

c) F  W Taylor

d) Harold Koontz.                                                            

Answer: A

 

Question:  Harmony Not discord principle is concerned with                       

a)  Management should share the gain of the company with workers

b)  Investigation of Task

c)  Scientific inquiry

d)  Observation and Analysis.

Answer: A

  

Question:  Unity of  Direction is concerned with         

a)  One head one plan

b)  One head different plans

c)  Planning by employee

d)  Planning by production manager                            

Answer: A

 

Question:  Espirit De Corps mean               

a)  Gang plank

b)  Gang boss

c)  Order

d)  Union is strength.                                                 

Answer: D

 

Question:  Gang plank is concerned about ______________

a)  Contact not allowed

b)  Indirect contact

c)  Direct contact

d)  Contact before application.                                    

Answer: C
 

Question:  Which of the following is not considered with F W Taylor?

a)  Method Study

b)  Motion Study

c)  Time Study

d)  Scalar chain                                                         

Answer: D

 

Question:  Functional foremanship is concerned with   ______

a)  Marketing

b)  Division of work

c)  Insurance

d)  Gang plank                                                          

Answer: B

 

Question:  The main objective of functional foremanship is _____ 

a)  Not to provide free time to workers

b)  Separate planning functions from executive functions

c)  To separate top level management from CEO

d)  Not to divide the work.      

Answer: B

 

Question:  The main objective of the motion Study is ______ 

a)  To provide more work to the workers

b)  To separate planning functions with other functions

c)  To eliminate unproductive movement

d)  To study standard time.                             

Answer: C

 

Question: Science not rule of thumb principle is given by _______ 

a)  Hanry  Fayol

b)  L M Prasad

c)  F W Taylor

d)  L H Haney.                                              

Answer: C

 

Question:  What is the main motive of Fatigue Study?

a)  Calculation of standard time

b)  Calculation of standard output

c)  Calculation of frequent rest interval to be given to the employees

d)   Direct contact.

Answer:  C

 

Question: Which principle of management discuss about route clerk and gang boss? 

a)  Equity

b)  Order 

c)  Functional Foremanship

d)  Motion study.                                           

Answer: C

 

Question: Principle of Order is concerned with                 

a) Orderly arrangements of various  resources

b)  Giving order to employees

c)  Receiving order from top level

d)  None of the above.                                    

Answer: A

 

Question:  Which principle of management suggest the concept of replacing I with we.

a)  Order

b)  Equity

c)  Espirit De Corp

d)  None of these.                                          

Answer: C 

 

Question: Which is the principles of management given by Fayol

a) All the options

b) Unity of direction

c) Equity

d) Centralisation and decentralisation

Answer: All the options

 

Question: Which is the techniques of scientific work

a) All the options

b) Time study

c) Motion study

d) Fatigue study

Answer: All the options

 

Question: Which is determines the standard time taken to perform a well-defined job.

a) Time Study

b) Motion study

c) Fatigue study

d) Method study

Answer: Time Study

 

Question: The method of time study will depend Upon

a) Volume and frequency of the task

b) Volume

c) frequency of the task

d) None of the options

Answer: Volume and frequency of the task

 

Question: Which are the objectives achieved through time study

a) All the options

b) Determine the number of workers

c) Frame suitable incentive schemes.

d) Determines labour costs

Answer: All the options

 

Question: ___________study refers to the study of movements like lifting, putting objects, sitting and changing positions

a) Motion study

b) Time Study

c) Fatigue study

d) Method study

Answer: Motion study

 

Question: On close examination of body motions, e.g., it is possible to find out Which types motions

a) All the options

b) Motions which are productive

c) Motions which are incidental

d) Motions which are unproductive.

Answer: All the options

 

Question: _________________study seeks to determine the amount and frequency of rest intervals in completing a task

a) Fatigue Study Fatigue

b) Method study

c) Motion study

d) Time Study

Answer: Fatigue Study Fatigue

 

Question: Which is the objective of standardisation

a) All the options

b) To reduce product to fixed types, sizes, features etc.

c) To establish interchangeability of various parts.

d) To establish standards of excellence and quality in materials.

Answer: All the options

 

Question: Which nature is not present in Principles of management

a) Absolute

b) Behavioural

c) Flexible

d) Universal

Answer: Absolute

 

Question: What is the aim of Method study

a) To find one best method of doing the job

b) To find None method of doing the job

c) To find Time method of doing the job

d) All the options

Answer: To find one best method of doing the job

 

Question: Who was the first to identity functions of management

a) Henry Fayol

b) James Lundy

c) Harold Koontz

d) F.W.Taylor

Answer: Henry Fayol

  

Question: How are the principles developed

a) All the options

b) On the basis of observation

c) on the basis of experimentation

d) Personal experiences of the managers

Answer: All the options

 

Question: Harmony, Not Discord principle is concerned with______________

a) Management should share the gains of company with workers

b) Observation and Analysis

c) Scientific inquiry

d) Investigation of Task

Answer: Management should share the gains of company with workers

 

Question: Which is the objective of standardisation

a) All the options

b) To reduce product to fixed types, sizes, features etc.

c) To establish interchangeability of various parts.

d) To establish standards of excellence and quality in materials.

Answer: All the options

 

Question: Which is determines the standard time taken to perform a well-defined job.

a) Time Study

b) Motion study

c) Fatigue study

d) Method study

Answer: Time Study

 

Question: How many principles are given by Henry Fayol

a) 14

b) 20

c) 18

d) 16

Answer: 14

 

Question: Lifetime of Henry Fayol is ______________

a) 1841 to 1925

b) 1841 to 1930

c) 1845 to 1925

d) 1845 to 1930

Answer: 1841 to 1925

 

Question: Name and explain that principle of Fayol which suggest that communication from top to bottom should follow the official lines of command?

a) Principle of Scalar Chain

b) Remuneration of Employees

c) Centralization and Decentralization

d) Unity of Direction

Answer: Principle of Scalar Chain

 

Question: Identify the technique of scientific management When uniformity is introduced in materials. Machine, tools, method of works and working conditions after, due research.

a) Standardization of works

b) Method Study

c) Differential Piece Wage system

d) Fatigue study

Answer: Standardization of works

 

Question: Identify the technique of scientific management when specialists supervise each worker

a) Functional Foremanship

b) Method Study

c) Motion Study

d) Time study

Answer: Functional Foremanship

 

Question: Which of the following is not an objective of management

a) Earning profits

b) Growth of the organisation

c) Providing employment

d) Policy making

Answer: Earning profits

 

Question: Which is not a function of management of the following

a) Cooperating

b) Planning

c) Controlling

d) Staffing

Answer: Cooperating

 

Question: Hina & Harish are typist in a company having same educational qualification. Hina is getting Rs.3000 per month and Harish Rs. 4000 per month as salary far the same working hour. Which principle of management is violated in this case? Name and explain the principle?

a) Principle of fair remuneration.

b) Principle of Equity

c) Principle of Order

d) Principle of initiative

Answer: Principle of fair remuneration.

 

Question: Why is it said that principles of management are flexible

a) Because they can be modified

b) Because they can be Fixed

c) Because they can be modified and Because they can be Fixed

d) None of the options

Answer: Because they can be modified

 

Question: Who gave 14 general principles of Management

a) Henri Fayol

b) F.W.Taylor

c) Harold Koontz

d) Gilbreth

Answer: Henri Fayol

 

Question: Henri Fayol was a

a) Mechanical engineer

b) French Doctor

c) Russian Mechanical engineer

d) All the options

Answer: Mechanical engineer

 

Question: Henri Fayol Period was

a) 1841-1925

b) 1851-1925

c) 1861-1925

d) 1841-1926

Answer: 1841-1925

 

Question: Henri Fayol was a

a) French Mechanical engineer

b) French Doctor

c) Russian Mechanical engineer

d) All the options

Answer: French Mechanical engineer

 

Question: Taylors book Principles of Scientific Management was published

a) 1911

b) 1912

c) 1914

d) 1915

Answer: 1911 

 

Question: F.W. Taylor period was

a) 1856 to 1915

b) 1856 to 1925

c) 1756 to 1925

d) 1750 to 1925

Answer: 1856 to 1915

 

Question: Significance of the Principles of Management

a) All the options

b) Providing managers with useful insights into reality

c) Optimum utilization of resource and effective administration

d) Scientific decisions.

Answer: All the options

 

Question: Which principle of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment?

a) Principle of Equity.

b) Principle of Order.

c) Unity of Direction

d) None of the options

Answer: Principle of Equity.

 

Question: Which principle of management is violated if an employee is asked to receive orders from two superiors?

a) Principle of unity of Command

b) Principle of Order.

c) Principle of Equity.

d) All the options

Answer: Principle of unity of Command

 

Question: Workers should be encouraged to develop and carry out their plans for improvements. Identify the principle of management formulated by Fayol.

a) Principle of initiative.

b) Unity of Direction

c) Principle of Order.

d) Principle of Equity.

Answer: Principle of initiative.

 

Question: Taylors principles are specific as they are

a) Scientific in nature.

b) Doctor in nature.

c) Manager in nature.

d) All the options

Answer: Scientific in nature.

 

Question: Taylors principles are

a) Specific

b) General

c) Universal

d) None of the options

Answer: Specific

 

Question: Which principle of management envisages that each group of activities having the same objective must have one head and one plan? Explain the principle with suitable example.

a) Unity of Direction

b) Principle of Order.

c) Principle of Equity.

d) All the options

Answer: Unity of Direction

 

Question: Fayol says that discipline requires

a) All the options

b) Good supervisors at all levels

c) Agreements should be clear and fair

d) Penalties should be fairly imposed

Answer: All the options

 

Question: What is the purpose of time study

a) To estimate or determine a fair days work

b) To estimate the profit

c) To estimate the Loss

d) None of the options

Answer: To estimate or determine a fair days work

 

Question: What is the aim of Method study

a) To find one best method of doing the job

b) To find None method of doing the job

c) To find Time method of doing the job

d) All the options

Answer: To find one best method of doing the job

 

Question: What is the basis of formation of scientific management

a) Observation and Experimentation

b) Observation

c) Experimentation

d) None of the options

Answer: Observation and Experimentation

 

Question: Factory owners or managers relied on personal judgment in attending to the problems they confronted in the course of managing their work. Which principle of Taylor is it referring to

a) Rule of thumb

b) Harmony, not Discord.

c) Cooperation not individualism

d) Development of Each and Every Person

Answer: Rule of thumb

 

Question: F.W.Taylor is

a) American

b) Russian

c) European

d) None of the options

Answer: American

 

Question: What was the profession of F.W.Taylor

a) Mechanical engineer.

b) Doctor

c) Scientist

d) All the options

Answer: Mechanical engineer.

 

Question: Principle of Scientific Management formulated by Taylor for managing an organization scientifically.

a) All the options

b) Science, not Rule of Thumb

c) Harmony, not Discord.

d) Cooperation not individualism

Answer: All the options

 

Question: Which is the features of scientific management.

a) It is a systematic approach and It brings complete mental change.

b) It is a systematic approach

c) It brings complete mental change.

d) None of the options

Answer: It is a systematic approach and It brings complete mental change.

 

Question: Who was the first to identity functions of management

a) Henry Fayol

b) James Lundy

c) Harold Koontz

d) F.W.Taylor

Answer: Henry Fayol

 

Question: Which principles of management promotes team spirit

a) Esprict De Corps

b) Equity

c) Centralisation and decentralisation

d) None of the options

Answer: Esprict De Corps

 

Question: The principles of management arent rigid and can be modified when the situation demands. Which nature of principles is being discussed here

a) Flexibility

b) Fixed

c) Not Flexible

d) None of the options

Answer: Flexibility

 

Question: Principles of management are

a) Flexible

b) Not Flexible

c) Fixed

d) All the options

Answer: Flexible

 

Question: Why is it said that the principles of management are universal

a) Apply to all types of organisations

b) Apply to only Small organisations

c) Apply to only Big organisations

d) Apply to only Non Business organisations

Answer: Apply to all types of organisations

 

Question: How are the principles developed

a) All the options

b) On the basis of observation

c) on the basis of experimentation

d) Personal experiences of the managers

Answer: All the options

 

Question: The Main objective of motion study is _____________

a) To eliminate the unproductive motions

b) To eliminate the rest hours of workers

c) To find out labour cost

d) To provide more work to the workers

Answer: To eliminate the unproductive motions

 

Question: Basic aim of Functional Foremanship is ______

a) To separate planning functions from execution functions

b) To separate Top level management from Chief Executive Officer

c) Not to divide the work

d) All the options

Answer: To separate planning functions from execution functions

 

Question: Functional foremanship is based on the ______

a) Principle of division of work

b) Union is strength

c) Marketing

d) All the options

Answer: Principle of division of work

 

Question: Espirit De Corps means _________________

a) Unity

b) Order

c) Request

d) All the options

Answer: Unity

 

Question: Gang Plank means ____________________.

a) Direct Contact

b) Indirect Contact

c) Contact not allowed

d) All the options

Answer: Direct Contact

 

Question: Unity of direction is concerned with____________

a) One Head One Plan

b) Planning by Production manager

c) Planning by Employees

d) One Head Different Plans

Answer: One Head One Plan

 

Question: Which of the following is not concerned with the Henry Fayol

a) Time Study

b) Scalar Chain

c) Unity of Command

d) Espirit De Corps

Answer: Time Study

 

Question: How many principles are given by Henry Fayol

a) 14

b) 18

c) 20

d) 16

Answer: 14

 

Question: Harmony, Not Discord principle is concerned with______________

a) Management should share the gains of company with workers

b) Observation and Analysis

c) Scientific inquiry

d) Investigation of Task

Answer: Management should share the gains of company with workers

 

Question: Science, not rule of thumb, this principle was given by ____________

a) F.W.Taylor

b) James Lundy

c) Henry Fayol

d) Gilbreth

Answer: F.W.Taylor

 

Question: Who is considered as father of General Management

a) Henry Fayol

b) F.W.Taylor

c) Harold Koontz

d) All the options

Answer: Henry Fayol

 

Question: Who is considered as father of Scientific Management

a) F.W.Taylor

b) Harold Koontz

c) Gilbreth

d) Henry Fayol

Answer: F.W.Taylor

 

Question: Management should find One best way to perform a task. Which technique of scientific management is defined in this sentence?

a) Method Study

b) Time Study

c) Fatigue Study

d) Motion Study

Answer: Method Study

 

Question: Which of the following is not a Principle of management given by Taylor?

a) Functional foremanship

b) Cooperation, Not Individualism

c) Science, not rule of the Thumb

d) Harmony, not discord

Answer: Functional foremanship

 

Question: Which statement is related to principle of Division of Work

a) Work should be divided into small tasks

b) Labour should be divided

c) Resources should be divided among jobs

d) Departments should be divided into sub sections

Answer: Work should be divided into small tasks

 

Question: The principles of management are significant because of

a) All the options

b) Meeting changing environment requirements

c) Scientific decisions

d) Optimum utilisation of resources and effective administration

Answer: All the options

 

Question: How are principles of management formed

a) By experiences of managers

b) By experiences of customers

c) By propagation of social scientists

d) All the options

Answer: By experiences of managers

Question : Principles of management are NOT:
(a) Universal
(b) Flexible
(c) Absolute
(d) Behavioural
Answer : C

Question : How are principles of management formed?
(a) In a laboratory
(b) By experiences of managers
(c) By experiences of customers
(d) By propagation of social scientists
Answer : B

Question : The principles of management are significant because of:
(a) Increasing in efficiency
(b) Initiative
(c) Optimum utilisation of resources
(d) Adaptation to changing technology
Answer : B

Question : Henri Fayol was a:
(a) Social Scientist
(b) Mining Engineer
(c) Accountant
(d) Production Engineer
Answer : B

Question : Which of the following statement best describes the principle of ‘Division of Work’?
(a) Work should be dividend into small tasks
(b) Labour should be divided
(c) Resources should be divided among jobs
(d) It leads to specialisation
Answer : A

Question : ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship?
(a) Instruction Card Clerk
(b) Repair Boss
(c) Gang Boss
(d) Route Clerk
Answer : C

Question : Which of the following is NOT a Principle of Management given by Taylor?
(a) Science, not rule of the thumb
(b) Functional foremanship
(c) Maximum not restricted output
(d) Harmony not discord
Answer : B

Question : Management should find ‘One best way’ to perform a task. Which Technique of Scientific management is defined in the sentence?
(a) Time Study
(b) Motion Study
(c) Fatigue Study
(d) Method Study
Answer : D

Question : Which of the following statements best describe ‘Mental Revolution’?
(a) It implies change of attitude
(b) The management and workers should not play the game of one upmanship
(c) Both management and workers require each other
(d) Workers should be paid more wages
Answer : A

Question : Which of the following statements is FALSE about Taylor and Fayol?
(a) Fayol was a mining engineer whereas Taylor was a mechanical engineer
(b) Fayol’s principles are applicable is specialised situations whereas Taylor’s principles have universal application
(c) Fayol’s principles were formed through personal experience whereas Taylor’s principles were formed through experimentation
(d) Fayol’s principles are applicable at the top level of management whereas Taylor’s principles are applicable at the shop floor.
Answer : B

Question : ‘He is responsible for timely and accurate completion of job’. Whose work is described by this sentence under functional foremanship?
(a) Instruction Card Clerk
(b) Speed Boss
(c) Gang Boss
(d) Route Clerk
Answer : B

Question : “He is responsible for preparing the time and cost sheet.” Whose work is described by this sentence under functional foremanship?
(a) Instruction Card Clerk
(b) Speed Boss
(c) Gang Boss
(d) Route Clerk
Answer : C

Question : Standard time taken by the worker to make one cardboard box is 20 minutes. Ajit kumar,a worker has to put in 8 hours of work in a shift with one hour allowed for rest lunch.
His standard output should be .....
(a) 21 boxes
(b) 23 boxes
(c) 24 boxes
(d) 16 boxes
Answer : A

Question : The objectives of simplification is:
(a) To reduce a given line or product to fixed types, sizes and characteristics.
(b) To establish interchange ability of manufactured parts and products.
(c) To establish standards of excellence and quality in materials.
(d) To eliminate superfluous varieties, sizes and dimension.
Answer : D

Question : Which of the following is not correct in respect of simplification:
(a) Simplification helps in eliminating unnecessary diversity of products.
(b) Simplification helps in savings of cost of labour, machines and tools.
(c) Simplification helps in establishing interchange ability of manufactured parts and products.
(d) Simplification helps in fuller utilisation of equipment and increasing turnover.
Answer : C

Question : A salesman directly contacts the Vice president (Marketing) of the company with a complaint regarding availability of stock in the factory. Which of the following principles is being violated here?
(a) Unity of command
(b) Unity of direction
(c) Scalar chain
(d) Discipline
Answer : C

Question : Same gearbox can be used in different models of cars of a particular brand. Which of the following techniques of scientific management is highlighted in aforesaid situation?
(a) Standardiation
(b) Simplification
(c) Method study
(d) Functional foremanship
Answer : A

Question : There should be a proper balance between ........................ of decision making powers with top management and of decision making power among more than one person.
(a) Concentration, dispersal
(b) Concentration, centralisation
(c) Concentration, transfer
(d) Centralisation, dispersal
Answer : A

Question : “In dealing with a situation of conflict between two departments, a manager may emphasise the primacy of the overall goals of the organisation.” Which aspect of managerial principles has been highlighted in aforesaid situation?
(a) Universal
(b) Flexible
(c) General guidelines
(d) Behavioural
Answer : C

Question : “Employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors like contribution of the employee and paying capacity of the employer.” Which aspect of managerial principles has been highlighted in aforesaid situation?
(a) Universal
(b) Contingent
(c) General guidelines
(d) Behavioural
Answer : B

Question : “The managerial principles enable refinement of management practices as well by facilitating the development of new management techniques like Just in Time, Kanban and Kaizen.” Which significance of managerial principles has been highlighted in aforesaid situation?
(a) Optimum utilisation of resources
(b) Scientific decision making
(c) Adaptation to changing environment
(d) Management training, education and research
Answer : D

Question : “A sales person is asked to clinch a deal with a buyer and is allowed to give 10% discount by the marketing manager. But finance department tells him not to offer more than 5% discount.” Which managerial principles has been violated in aforesaid situation?
(a) Unity of command
(b) Unity of direction
(c) Scalar chain
(d) Discipline
Answer : A

Question : A good company should have an employee suggestion system whereby suggestions which result in substantial cost/time reduction should be rewarded. Which managerial principles has been highlighted in aforesaid situation?
(a) Remuneration
(b) Equity
(c) Initiative
(d) Discipline
Answer : C

Question : “A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting his case.” Which managerial principles has been highlighted in aforesaid situation?
(a) Authority and responsibility
(b) Unity of direction
(c) Initiative
(d) Discipline
Answer : A

Question : The principle of ........................ will minimise the need for using penalties.
(a) Espirit de corps
(b) Equity
(c) Initiative
(d) Discipline
Answer : A

MCQs for Chapter 2 Principles of Management Business Studies Class 12

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