CBSE Class 12 Business Studies Nature and Significance of Management VBQs

Question. Management is essential for the organizations which are
(a) Non-profit organizations
(b) Service organizations
(c) Social organizations
(d) All of the above 

Answer : D

Question. In order to be successful an organization must change its goal according to the needs of the environment. Which characteristics of management is highlighted in the statement?
(a) Management is continuous process
(b) Management is goal oriented
(c)Management is dynamic process
(d) Management is all pervasive 

Answer : C

Question. Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results.
(a) Management as a science
(b) management is an art
(c)Management as a profession.
(d) none of these 

Answer : B

Question. Foreman will be considered under which level of management?
(a) Lower-level
(b) Middle - level
(c) Top-level
(d) None of these 

Answer : A

Question. Ram works as a production manager in Dev private Limited. He has been given the task of getting 5000 units of hand woven table mats manufactured at the cost of ₹100 per unit, within 50 days. In order to be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed ₹100 per unit
(b) The work is completed within 50 days even at higher cost per unit
(c) The cost of production is less than ₹100 per unit
(d) All of the above 

Answer : B

Question. Which one of the following sequences of process of management is correct:
(a) Planning, Directing ,Controlling, Organising, Staffing
(b) Directing, Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Directing, Controlling
(d) Organising, Planning, Staffing, Controlling, Directing 

Answer : C

Question. Operations manager will be considered under which level of management?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these 

Answer : B

Question. which level of management coordination is needed ?
(a) top level
(b) middle level
(c) low level
(d) all level 

Answer : D

Question. The management of Max Ltd. Provided employment opportunity to rural area people. Identify the organisation’s objective it is trying to achieve.
(a) organizational objectives
(b) social objectives
(c) personal objectives
(d) all of these

Answer : B

Question. How does a manager want to achieve his objectives?
(a) Efficiently
(b) Effectively
(c) Efficiently and effectively
(d) None of the above 

Answer : C

Question. Match the concept of management in Column I with their respective meaning in II;

a) i), ii), iii)
b) ii), i), iii)
c) iii), ii), i)
d) i), iii), ii) 

Answer : B

Question. Your grandfather has retire from an organization in which he responsible for determination policies. At which level of management was he working.
(a) Top level
(b) middle level
(c) low level
(d) Operational managers 

Answer : A

Question. _______ refers to the orderly synchronising of efforts of subordinates to provide proper amount, timing and quality of execution. 
(a) Planning
(b) Organising
(c) Coordination
(d) Cooperation

Answer : C

Question. Foremen and supervisors fall in the category of
(a) Top level management
(b) Operational Management
(c) Middle Level Management
(d) None of the above

Answer : B

Question9. ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Allowances

Answer : B

Question. Deeksha is working in ‘Telco Ltd.’ A company manufacturing toys. She found that the profits had started declining for the last six months. Profit has an implication for the survival of the firm. So She analysed the business environment to find out the reasons for this decline.
From the following alternatives, identify the level of management at which Deeksha is working.
(a) Lower level Management
(b) Middle level Management
(c) Top Level Management
(d) None of the above

Answer : C

Question. ‘The activities involved in managing an enterprise are common to all organisations whether economic, social or political’. Which characteristic of management is highlighted in the given statement.
(a) Management is a goal-oriented process
(b) Management is all pervasive
(c) Management is multidimensional
(d) Management is a group activity.

Answer : B

Question. ________ in Management means to complete the task correctly with minimum resources.
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) None of the above

Answer : B

Question. Which is not a function of management of the following:
(a) Planning
(b) Staffing
(c) Cooperating
(d) Controlling

Answer : C

Question. ................. is the force that binds all the other functions of management
(a) Planning
(b) Organising
(c) Span of Management
(d) Coordination

Answer : D

Question. Which of the following functions of Management is concerned with finding the right people for the right Job.
(a) Planning
(b) Organising
(c) Staffing
(d) Controlling

Answer : C

Question. Policy formulation is the function of
(a) Top level Managers
(b) Middle level Managers
(c) Operational Management
(d) None of the above

Answer : A

Question. One of the organisational objectives of management is ‘Growth of a business’.
Which one of the following is not associated with measurement of business growth.
(a) Sales volume
(b) Number of Employees
(c) Number of creditors
(d) Number of Products offered

Answer : C

Question. Which one of the following is not an organisational objective of management
(a) Survival
(b) Cooperation
(c) Growth
(d) Profit

Answer : B

Question. Which of the following is a feature of art?
(a) Existence of theoretical knowledge
(b) Systematised body of knowledge
(c) Service motive
(d) Ethical code of conduct

Answer : A

Question. Saurabh is managing director in a shoe manufacturing company. He has been doing well at this post. Under his guidance and leadership, the company has been actively achieving all the set targets as all the unrelated and diverse actions taken by different departments are given a common direction.
Identify the characteristic of management discussed in the given case.
(a) Management is a goal oriented process
(b) Management is a continuous process
(c) Management is a group activity
(d) Management is a dynamic function

Answer : C

Question. The following is not an objective of Management
(a) Earning profits
(b) Growth of the organisation
(c) Providing Employment
(d) Policy Making

Answer : C

Question. __________ is the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in the changing environment.
(a) Coordination
(b) Management
(c) Organising
(d) Planning

Answer : B

Question. ‘An organisation has multiple objectives to serve the purpose of the different groups that constitute it’, which importance of management is mentioned here?
(a) Management helps in achieving group goals.
(b) Management helps in development of society.
(c) Management creates a dynamic organisation.
(d) Management helps in achieving personal objectives.

Answer : B

Question. Vijay works in a bank. The bank is about to lose its position as the leading bank in the banking industry. Vijay was assigned to find out the reason behind poor performance of the bank. He analysed the situation and came out with the conclusion that there was lack of integration of efforts made by various departments like human resource, information technology and customer relationship.
Identify the Managerial concept discussed in the about case.
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency

Answer : B

Question. Management is ................. .
(a) An art
(b) A science
(c) Both art & science
(d) Neither

Answer : C

Question. Harsh is the managing director in a shoe manufacturing company. He has been doing well at this post. Under his guidance and leadership, the company has been actively achieving all the set targets as all the unrelated and diverse actions taken by different departments are given a common direction.
Identify the characteristic of Management discussed in the given case.
(a) Management is a goal oriented process
(b) Management is a continuous process
(c) Management is a group activity
(d) Management is a dynamic function

Answer : C

Question. ‘Management aims at reducing costs and increasing productivity’.
Which importance of Management is highlighted in the given statement. 
(a) Management helps in achieving group goals
(b) Management increases efficiency
(c) Management creates a dynamic organisation
(d) Management helps in achieving personal objectives

Answer : B

Question. ................. is the process of designing and maintaining an environment in which individuals, working together in groups, efficiently accomplish selected aims.
(a) Planning
(b) Management
(c) Organising
(d) Development

Answer : B

Question. Coordination acts as the binding force between departments and ensures that all action is aimed at achieving the goals of the organisation.
Which characteristic of management is mentioned in the given statement.
(a) Coordination integrates group efforts
(b) Coordination ensures unity of action
(c) Coordination is a continuous process
(d) Coordination is an all pervasive function

Answer : B

Question. ‘Management cannot be seen but its presence can be felt in the way the organisation functions.’
Which characteristic of management is mentioned in the given statement.
(a) Management is multidimensional
(b) Management is all pervasive
(c) Management is an intangible force
(d) Management is a dynamic function

Answer : C

Question. Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.
(a) Management
(b) Planning
(c) Organising
(d) Controlling

Answer : A

Question. Match the features of management in Column I with their respective definition in Column II.

(a) A-(i), B-(iii), C-(ii)
(b) A-(iii), B-(ii), C-(i)
(c) A-(ii), B-(iii), C-(i)
(d) A-(ii), B-(i), C-(ii)

Answer : A

Question. Identify the nature of management when a manager applies the existing theoretical Knowledge in his own unique manner. 
(a) Management as a Science
(b) Management as an Art
(c) Management as a profession
(d) Management as a Discipline

Answer : B

Question. Coordination is ................. .
(a) a function of management
(b) the essence of management
(c) an objective of management
(d) characteristic of management

Answer : B

Question. _______ arises out of the complexities of modern technology and the diversity of tasks to be performed.
(a) Division of work
(b) Cooperation
(c) Specialisation
(d) Functional Differentiation

Answer : B

Question. ‘Coordination unifies unrelated or diverse interests into purposeful work activity.’ Which characteristic of coordination is discussed in the given statement?
(a) Coordination is a continuous process.
(b) Coordination ensures unity of action.
(c) Coordination is an all pervasive function.
(d) Coordination integrates group efforts.

Answer : D

Question. Which one of the following is not a characteristic of management
(a) Management is a goal-oriented process
(b) Management is multidimensional
(c) Management is profit oriented
(d) Management is intangible

Answer : C

Question. ‘The aim of a manager is to reduce costs and increase productivity’.
Identify the importance of management mentioned in the given Statement.
(a) Management increases efficiency.
(b) Management creates a dynamic organisation.
(c) Management helps in achieving personal objectives.
(d) Management helps in achieving group goals. 

Answer : A

Question. _______ is a managerial function that is concerned with monitoring organisational performance towards the attainment of organisational goals. 
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Answer : D

Question. ________ is not an element of delegation.
(a) Authority
(b) Accountability
(c) Efficiency
(d) Responsibility

Answer : C

Question. ‘Management has to adapt itself to the changing environment’. Identify from the following alternatives, the characteristic of management discussed in the given statement.
(a) Management is a group activity
(b) Management is a dynamic function
(c) Management is goal oriented
(d) Management is multidimensional

Answer : B

Reasoning Based Questions :

Read the following statements-Assertion (A) and Reason (R), and select the correct alternative in each case:

Question. Assertion (A): Management is an exact science.
Reason (R): It is based on human behavior .It is neither precise nor as comprehensive as the pure science like physics or chemistry.
(a)Both Assertion(A) and Reason(R) are True and Reason( R) is the correct explanation of Assertion (A).
(b).Both Assertion A) and Reason( R) are True, but Reason( R)is not the correct explanation of Assertion(A).
(c) .Assertion (A) is True, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : D

Question. Assertion(A):Management principles are developed through observation and repeated experimentation.
Reason(R):Outcomes of management principles can be predicted accurately
(a)Both Assertion (A) and Reason(R) are True and Reason( R) is the correct explanation of Assertion(A).
(b) .Both Assertion (A) and Reason( R) are True, but Reason( R)is not the correct explanation of Assertion(A).
(c) .Assertion(A) is True, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : C

Question. Assertion (A), Coordination is not an exclusive function of the top management.
Reason (R), Coordination is the responsibility of all managers-top, middle and operational levels.
(a)Both Assertion(A) and Reason(R) are True and Reason( R) is the correct explanation of Assertion(A).
(b).Both Assertion(A) and Reason( R) are True, but Reason( R)is not the correct explanation of Assertion(A).
(c) .Assertion(A) is True, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : D

Question. Assertion (A), Coordination is an all pervasive function.
Reason(R). Coordination is required at all levels of management due to the interdependen nature of activities of
(a)Both Assertion(A) and Reason(R) are True and Reason( R) is the correct explanation of Assertion(A).
(b).Both Assertion(A) and Reason( R) are True, but Reason( R)is not the correct explanation of Assertion(A).
(c) .Assertion(A) is True, but Reason( R) is False.
(d) Assertion (A) is False, but Reason( R) is true. 

Answer : A

Read the following and answer questions on the basis of the same :

Angora Ltd is a operating its business on large scale. Co. realizes that human resources are the most important assets of its business, So HRM Department is set up to show a developmental path to the employees through proper training modules and job enrichment. Time to time incentives and awards are given to employees which was based on their performance, which keeps the employees highly motivated. Ravi , just a graduate inhumanities is appointed as the Plant superintendent in the company. Ravi knew that there are certain theories and principles of management based on deep observation and experimentation. So, he studied various theories and principles of management before joining the Company. Ravi is very energetic and he likes to deal with several situations.On August 20th, He informed his boss that the goal he had been assigned had been achieved and the quality was also very good. The best part is that there is one day left for the dead lin ,which is August 21.However,his boss was dissatisfied because the expenses incurred by his
team to complete the project exceeded the upper limit (norms).

Question. Identify the nature of management highlighted in this line-“Ravi knew that there are certain theories and principles of management based on deep observation and experimentation.”
(a) Management as Profession
(b) Management as Science
(c ) Management as an Art
(d) None of the above 

Answer : B

Question. Which aspect of management is followed by Ravi in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling

Answer : C

Question. Which aspect of management is violated by Ravi in above case?
(a) Planning
(b) Efficiency
(c) Effectiveness
(d) Controlling 

Answer : B

Question. Which objective of management is pursued by management of Angora Ltd.:
(a) Organizational objectives
(b) Social objectives
(c) Personal objectives
(d) None of these 

Answer : C

Question. Identify the feature of profession which is not applicable here - “Ravi, just a graduate in humanities is appointed as the Plant superintendent in the company.’
(a) Well defined body of knowledge
(b) Restricted Entry
(c) Ethical code of conduct
(d) Service Motive

Answer : B

Case Study Based MCQ Questions Nature and Significance of Management Class 12 Business Studies:

Sameer is a foreman in a factory. He directs all the members under him to follow the targets and advises them to put their efforts in the direction of the achievement of these targets. He leads, influences and motivates the workers to perform the tasks assigned to them. He encourages the employees to do their best. Sameer was assigned a target of 1,000 units in the month of July. For this he and his team had to operate on double shifts. Sameer was able to achieve the production target but at a higher production cost.
On the basis of the above paragraph answer the following questions.

Question. Name the function of management Sameer is performing in the above paragraph.
(a) Planning
(b) Organisaing
(c) Directing
(d) Controlling

Answer : C

Question. With reference to the above case, Sameer believes in motivation, teamwork , communication and achievement of objectives. Sameer in the given case is ....................... . 
(a) Effective
(b) Efficient
(c) Cooperative
(d) Goal oriented

Answer : A

Question. At which level of management, Sameer is working .
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) None of the above

Answer : C

Question. Which of the following functions is performed by Sameer as a foreman.
(a) Interpreting the policies formed by top management
(b) Assigning necessary duties and responsibilities to the workers.
(c) Directly overseeing the efforts of the workers
(d) Coordinating the activities of different departments.

Answer : C

Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s objective is to promote the sales of Indian handloom and handicraft products. It sells fabrics, furnishings, readymades and household items made out of traditional Indian fabrics. Sana decides quantities, variety, colour and texture of all the above items and then allocates resources for their purchase from different suppliers. She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colours on silk. Although the products looked very attractive and impressive, they were relatively expensive on the front of affordability for an average customer. Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control.
On the basis of the above paragraph answer the following questions.

Question. “She appoints a team of designers and crafts people in the company, who developed some prints for bed covers in bright colour on silk.”
Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Planning
(d) Directing

Answer : C

Question. In the above case “company’s objective is to promote the sales of Indian handloom and handicraft products.”
The above line focuses on which feature of management?
(a) Management is an intangible force
(b) Management is a goal oriented process
(c) Management is pervasive in nature
(d) Management is a continuous process

Answer : B

Question. With reference to the above case, at which level of management Sana is working?
(a) Lower level
(b) Top level
(c) Middle level
(d) Shop floor

Answer : C

Question. “Sana suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on a regular basis to keep costs under control”.
Which function of management is highlighted in this context?
(a) Controlling
(b) Staffing
(c) Organizing
(d) Planning

Answer : A

Anil is a Managing director in a toy manufacturing company. He decided to set up a new manufacturing unit of his company in a rural area of Bihar where job opportunities are very less. He believes in using environmental friendly methods of production and aims at giving employment opportunities to the disadvantaged section of the community. As a manager he aims at reducing costs and increasing productivity  through better planning, organizing, directing staffing and controlling the activities of the organization. Anil considers human resources as the greatest asset of any organization. Getting work done through others is a major task of a manager as per the views of Anil. As a manager Anil believes that his task is to make workers work towards achieving the organizations’ goals. On the basis of the above paragraph answer the following questions.
On the basis of the above paragraph, answer the following questions:

Question. Identify the level of management at which Anil is working.
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) Supervisory level management

Answer : A

Question. Identify the objective of management discussed in the given case
(a) Economic objective
(b) Organizational objective
(c) Social objective
(d) Personal objective

Answer : C

Question. “As a manager, he aims at reducing costs and increasing productivity”.
Name the importance of management highlighted in the given statement.
(a) Management helps in achieving group goals.
(b) Management creates a dynamic organization.
(c) Management increases efficiency.
(d) Management helps in achieving personal objectives.

Answer : C

Question. “Getting work done through others is a major task of a manager as per the views of Anil”.
Which dimension of management is reflected by Anil’s view?
(a) Management of people
(b) Management of work
(c) Management of operations
(d) Management of resources

Answer : A

An organization is a collection of diverse individuals with different needs. Every member of the group has a different purpose of joining the organization but as members of the organization they work towards fulfilling the common organizational goal. Bhagwati Enterprises is also such an organization. The firm deals in manufacturing of shoes. The company’s margins are under pressure and the profits and market share are declining. The production department blames marketing for not meeting sales targets and marketing blames production department for producing goods, which are not of good quality meeting customers’ expectations. The finance department blames both production and marketing for declining returns on investment and poor marketing. On investigation the CEO of the company Mr. Gopal Rao found that the  organization was lacking an important quality of management. This managerial quality aims at securing unity of action in the realization of the common purpose. It acts as the binding force between the departments and ensures that all action is aimed at achieving the goals of the organization.
On the basis of the above paragraph answer the following questions:

Question. According to you, which characteristic of management is lacking in Bhagwati Enterprises? 
(a) Management is multidimensional
(b) Management is a continuous process
(c) Management is an intangible force
(d) Management is a group activity

Answer : D

Question. “This managerial quality aims at securing unity of action in the realization of the common purpose”.
Which managerial quality is being talked about in the given statement?
(a) Cooperation
(b) Coordination
(c) Effectiveness
(d) Efficiency

Answer : B

Question. Identify the characteristic of managerial quality (identified in part (i)). Which is discussed in the given paragraph.
(a) It integrates group efforts
(b) It ensures unity of action
(c) It is an all pervasive function
(d) It is the responsibility of all the managers

Answer : C

Question. Which one of the following functions is not performed by Mr. Gopal Rao as the CEO of the company.
(a) Coordinating the activities of different departments.
(b) Ensuring welfare and survival of the organization.
(c) Assigning necessary duties and responsibilities to the workers.
(d) Formulating overall organizational goals and strategies for their achievement.

Answer : C

Shilpa is working as a marketing head in an insurance company. She has been holding this position for long. She is an experienced manager who believes that organisations are made up of people who have different personalities, backgrounds, experiences and objectives. According to her, people become part of the organization to satisfy their diverse needs.
Shilpa is of the view that all organisations have to function in an environment that is constantly changing. Hence, during the spread of Corona virus pandemic, she came up with new insurance products, which were designed as per the present needs and requirements of the customers. Soon the insurance products developed by Shilpa became a hit and the organization was able to achieve its goals. The goal of the  organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise. Before developing the new products, Shilpa determined in advance what is Nature and Significance of Management to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively.

On the basis of the above paragraph answer the following questions:

Question. During the spread of coronavirus pandemic, Shilpa came up with new insurance products to ensure ____________ of the company in the long run.
(a) Growth
(b) Survival
(c) Welfare
(d) Profit

Answer : B

Question. Which importance of management is mentioned in the given case.
(a) Management increases efficiency
(b) Management creates a dynamic organization
(c) Management helps in the development of society.
(d) Management helps in achieving group goals

Answer : B

Question. “Before developing the new product, Shilpa determined in advance what is to be done and who is to do it. She set goals in advance and developed a way of achieving them efficiently and effectively”.
Which managerial function is achieved by Shilpa here?
(a) Planning
(b) Organizing
(c) Directing
(d) Controlling

Answer : A

Question. “The goal of the organization which Shilpa wanted to achieve acted as a vital incentive for the continued successful operation of the enterprise”.
Which goal of the organization Shilpa wanted to achieve?
(a) Growth
(b) Survival
(c) Profit
(d) Efficiency

Answer : C

XOLO Power Ltd. set up a factory for manufacturing solar lanterns in a remote village as there was no reliable supply of electricity in rural areas. The revenue earned by the company was sufficient to cover the costs and the risks. As the demand of lanterns was increasing day by day, the company decided to increase production to generate higher sales. For this they decided to employ people from a nearby village as very few job opportunities were available in that area. The company also decided to open schools and creches for the children of its employees. The General Manager of the company, Nishant believes that an organization should provide good quality products and services, create employment opportunities and adapt new technology for the greater good of the people. According to him, in order to be successful, an  organization must change itself and its goals according to the needs of the environment. As per Nishant’s viewpoint, in order to ensure success a business needs to add to its prospects in the long run. He firmly believes that in order to remain in the industry, management must exploit fully the given resources. 
On the basis of the above paragraph, answer the following questions:

Question. Which set of managerial objectives are mentioned in the given case.
(a) Personal objectives and social objectives
(b) Social objectives and group objectives
(c) Organizational objectives and social objectives
(d) Organizational objectives and personal objectives

Answer : C

Question. “Nishant believes that an organization should provide good quality goods and services, create employment opportunities and adapt new technology for the greater good of the people”.
Identify the importance of management mentioned in the given statement.
(a) Management increases efficiency
(b) Management creates a dynamic organization 
(c) Management helps in the development of society
(d) Management helps in achieving group goals

Answer : C

Question. “An organization must change itself and its goals according to the needs of the environment”.
Identify, from the following alternatives, the characteristic of management discussed in the given statement.
(a) Management is multidimensional
(b) Management is a goal oriented process
(c) Management is a group activity
(d) Management is a dynamic function

Answer : D

Question. Which organizational objective is mentioned in the given case.
(a) Survival
(b) Growth
(c) Profit
(d) Operational efficiency

Answer : B