CBSE Class 12 Business Studies Organising VBQs

Question. The accountability flows:
(a) Upwards
(b) Downwards
(c) In all directions
(d) None of the above

Answer : A

Question. It is defined as the framework within which managerial and operating tasks are performed.
(a) Span of management
(b) Organizational structure
(c) Informal organization
(d) None of the above

Answer : B

Question. ‘Himalaya Ltd.’, is engaged in manufacturing washing machines. The target of the organisation is to manufacture 500 washing machines 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.
(a) Functional structure
(b) Horizonal structure
(c) Divisional structure
(d) None of the above

Answer : A

Question. Which of the following is not a characteristic of organising ?
(a) Division of work
(b) Coordination
(c) Benefits of specialisation
(d) Plurality of persons

Answer : C

Question. Which of the following is not merit of divisional structure?
(a) It promotes product specialization
(b) It ensures that different functions get due attention
(c) It promotes flexibility and faster decision making
(d) It facilitates expansion and growth as new divisions.

Answer : B

Question. Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Answer : A

Question. Under what function of management the relationship between different posts is explained?
(a) Planning
(b) Communication
(c) Organising
(d) Supervision

Answer : C

Question. What is the key to managerial post?
(a) Responsibility
(b) Authority
(c) Accountability
(d) None of the above

Answer : B

Question. Organizing is process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among the people over work or responsibility sharing.
(c) Creates an environment suitable for teamwork
(d) All of the above

Answer : C

Question. For delegation of to be effective it is essential that responsibility be accompanied with necessary :
(a) Authority
(b) Manpower
(c) Incentives
(d) Promotions

Answer : A

Question. Which of the following is not a merit of functional structure.
(a) It promotes control and coordination within a department
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation

Answer : C

Question. Which of the following increases the importance of the subordinates?
(a) Centralization
(b) Decentralization
(c) Delegation
(d) Specialization

Answer : B

Question. Centralisation refers:
(a) Retention of decision making power
(b) Dispersal of decision making power
(c) Creating divisions of as profit centres
(d) Opening new centres or branches

Answer : A

Question. A span of management increase in an organization, the number of levels of management in the organization.
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above

Answer : A

Question. What is the base of delegation of authority?
(a) Centralization
(b) Decentralization
(c) Both (A) and (B)
(d) Divisional of labor

Answer : D

Question. Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal organisation 

Answer : D

Question. Which of the following cannot be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer : C

Question. Which of the following is not an importance of organising :
(a) Adaptation of change
(b) Effective administration
(c) Development of personnel
(d) Common objective

Answer : D

Question. Grouping the activities on the basis of product lines is called :
(a) Delegated organisation
(b) Divisional organisation
(c) Functional organisation
(d) Autonomous organisation

Answer : B

Question. It is an obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer : A

Question. What is decentralisation ?
(a) Short from delegation
(b) Extended form of delegation
(c) Middle form of delegation
(d) None of these

Answer : B

Question. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organizational structure followed by the organization.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above

Answer : A

Question. Which of the following is not a feature of functional structure?
(a) It promotes functional specialization
(b) Managerial development is difficult
(c) It is easy to fix responsibility for performance
(d) It is an economical structure to maintain

Answer : C

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. For delegation to be effective it is essential that responsibility be accompanied with necessary
(a) Manpower
(b) Authority
(c) Incentives
(d) Promotions.

Answer : B

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. 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. 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. 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 of the following is not the disadvantage of formal organisation?
(a) Lack of initiative
(b) Lack of favoritism
(c) Delay in work
(d) Mechanical relationship

Answer : B

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. Grouping of activities on the basis of functions is a part of
(a) Functional organisation
(b) Divisional organisation
(c) Decentralised organisation
(d) Centralised organization

Answer : A

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 does not follow the scalar chain?
(a) Functional structure
(b) Divisional structure
(c) Formal organisation
(d) Informal organisation.

Answer : D

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. 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. Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal organisation

Answer : D

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. A network of social relationship that arises spontaneously due to interaction at work is called:
(a) Formal organisation
(b) Decentralisation
(c) Informal organisation
(d) Delegation

Answer : C

Question. Centralisation refers to
(a) Retention of decision making authority
(b) Dispersal of decision making authority
(c) Creating divisions as profit centers
(d) Opening new centers or branches

Answer : A

Question. The form of organisation known for giving rise to rumors is called
(a) Centralised organisation
(b) Decentralised organisation
(c) Informal organisation
(d) Formal organization

Answer : B

Very Short Answer Questions :

Question. The directors of Narmada Ltd. An organization manufacturing computer have asked their marketing manager to achieve a target rate of 100 computers per day. The marketing manager has delegates the task to his deputy sales manager working under him. The deputy sales managers could not achieve he target. Is the marketing manager responsible for the failure of his deputy sales manager? Explain in brief , the relevant principle in support of your answer.?
Answer : Yes, marketing manager is responsible for non- achievement of he target sales to his.

Question. Name the activity which increase the importance of the role of subordinates?
Answer : Decentralization.

Question. It is a System of consciously coordinated activities of two or more person towards a common objectives. Mention this system of organization and explain its two features.
Answer : Formal organization

Question. The Director of Kamal Ltd, an organization manufacturing computer want to double the sales and given this responsibility to their sales manager. The Sales Manager has no authority either to increase , sales expense or appoint new salesman. Hence, he could not achieve this target. Is the sales manager responsible for not achieving the target? Explain in brief , the relevant principal in support of your answer.?
Answer : No, sales manager is not responsible for not achieving the target. The principle involved is purity of authority and responsibility.

Question. A Fashion design house has the following main job:-
(1) Manufacturing (2) Finance (3)Marketing (4) Personal (5) Research and Development Which organizational structure will you prefer for this type of a company and why?
Answer : Functional organizational structure will be suitable.

Question. Name and explain the two steps in the process of organizing which comes after identification and division of work and departmentation.
Answer : Assignment of duties and establishing reporting relation ships.

Question. Name the organization which has the benefit of Easy to fix responsibility?
Answer : Formal organization.

Question. Hindustan Ltd. is manufacturing computers, soaps and textile . Which type of organizational structure would suit the requirement of such organization? State any three advantages of this organization structure?
Answer : Divisional Structure would suits the requirement of Hindustan ltd.

Question. “If we delegate the authority, we multiply it by two if we decentralize it, we multiply it by many “ how?
Answer : Scope of delegation of authority is limited as it is confined to a manager and his immediate subordinate in work unit.
Scope of decentralization. It involves systematic delegation of authority at all levels and in all functions of the organization. It is an extension of delegation to the lowest levels in the organization.

Question. Name the function of management which co-ordinate the Physical, Financial, and Human resources and establishes productive relations among them for achievement of specific goals.
Answer : Organising

Question. which Function of management is concerned with building a stable frame work or structure of various parts of an enterprise?
Answer : Organizing.

Question. Name the type of organization which does not have predetermined objectives?
Answer : Informal organization.

Question. “The first Step in the process of organizing is identification and division of work” Why is he work divided into manageable activities?
Answer : The work is divided into manageable activities so that duplication of efforts and resources can be avoided and the burden of work can be shared among the employees.

Question. Aman Ltd. is manufacturing Toys and has Production Sales, Purchase and finance Department, which type of organization structure would you suggest to them? State any three advantage of this organization structure.?
Answer : I would suggest functional structure fro aman ltd.

Question. How can department or division be created?
Answer : It can be created on the basis of-
(a) territory and
(b) products

Question. The employee of ABC Ltd. Take part in volleyball matches on Sunday. Name the types of organization formed.
Answer : Informal organization.

Question. Rina runs a shoe manufacturing factory. She wants to expand her business. For expansion she contemplated to enter into the manufacturing of leather bags and western formal wear apart from the running business of shoes. By doing this her company will be able to provide many products to working women under one roof. Which organization structure will you suggest her and why?
Answer : In this situation, Divisional Structure will be suitable as it provides equal importance to all products. Also describe the advantages of divisional organization structure.

Question. It is a network of personal and social relations not established or required by the formal organization but arising spontaneously as people associate with one another. Name this organization and give its three advantages.
Answer : Informal organization

Question. For which kind of enterprises functional structure is more suitable?
Answer : When the size of the organization is large, has a diversified activities and operations require a high degree of specialization.

Question. How does an informal organization emerge?
Answer : Informal organization emerges from within the formal organization when people interact beyond their officially defined roles.

Question. while allocating work to various employees how the work must be assigned?
Answer : The work must be assigned to those who are best fitted to perform it well.

Question. It refer to the systematic delegation of authority from top management to the lower level managers. Mention the name of it.
Answer : Decentralization.

Case Based Question :

Mr. Sindhu is the general manager of Air Purifier Manufacturing Company in Delhi. The Directors want to expand the business operations and As per the resolution passed in meeting , it is decided that a new branch will be started in Mumbai also . it is also decided to appoint Mr.Sanchit , his subordinates to take charge of company’s new office in Mumbai Mr.Sindhu grants necessary authority to Mr. Sanchit so that he can fulfill his all responsibilities .However, within three months of feedback about Mr. Sanchit . Mr. Sindhu realizes that Mr. Sanchit is not doing the work as per instructions and expectations . He decided to take away the authority from Sanchit and redelegate the same to Mr. Ankur ,one of his another subordinate . Due to this change in managerial position at the Mumbai office ,the work suffer a lot and the company is not able to meet the desired goals.

Question. Can Mr.Sindhu take back the authority granted to Mr. Sanchit and redelegate to another ?
(a) No, Mr. Sindhu cannot take back the authority once delegated .
(b) yes, Mr. Sindhu can take back the authority and redelegate to another .
(c) Mr. Ankur cannot take the charge in place of Mr. Sanchit.
(d) none of these .

Answer : B

Question. Responsibility is derived from _____________ and Accountability is derived from ____________ .
(a) Accountability , Authority .
(b) Accountability , Responsibility .
(c) Authority , Responsibility .
(d) None of the above .

Answer : C

Question. Why is Mr. Sanchit supposed to give regular feedback about his work to Mr. Sindhu ?
(a) As he has granted authority .
(b) As he has given responsibility .
(c) both a and b
(d) none of the above.

Answer : C

Question. Can Mr. Sanchit be held responsible for not meeting the work allotted to him ?
(a) Yes , it is obligation of subordinates to perform the assigned duties to the best of his ability .
(b) No , Mr. Sanchit was not held responsible as he is only subordinate of Mr Sindhu .
(c) Mr. Sanchit may or may not be responsible .
(d) Mr. Sindhu will be held responsible .

Answer : A

Read the following text and answer question number on the basis of the same. 'Saarthi', the name has been associated with the manufacturing and sale of Fashion products since 1960, when Kapil Saarthi opened his first retail fashion clothing outlet in Ahmedabad. Sarthi Cosmetics was incorporated in India in 1940, and became a member of the S & M family of companies in 1959. Sarthi Perfumes began operations in Gujarat in an existing administrative S&M facility in 1985. An important difference between S&M and most other companies is that instead of operating as one large corporation it operates as 180 smaller companies each focused on a specific product and area, implying selective dispersal of authority, recognising the decision makers need four autonomy, as decision making authority is pushed down the chain of command. It enables the company to maintain short lines of communication with customers and employees, and accelerate the development of talent.

Question. The application of the philosophy discussed above can foster a sense of competition amongst the departments, which in turn will help the firm in the following manner:
(a) Facilitates growth
(b) Better control
(c) Relief to top management
(d) Quick decision making

Answer : A

Question. Quote the line from above which highlights the importance of the philosophy towards providing management education to employees. 
(a) “Maintain short lines of communication
(b) ‘Selective dispersal of authority
(c) ‘Accelerate the development of talent’
(d) ‘Recognises decision makers need for autonomy

Answer : C

Question. The philosophy being followed by S&M is not followed by most other companies. This tells us that the philosophy is :
(a) Optional
(b) Compulsory
(c) Limited to superior and his subordinate
(d) Merely done to lessen the burden of the manager 

Answer : A

Question. Identify the philosophy that is being followed by S&M through which it is dividing the decision making responsibilities among hierarchical levels.
(a) Delegation of authority
(b) Division of work
(c) Decentralization of authority
(d) Span of management

Answer : C

Question. As “The decision making authority is pushed down the chain of command” at S&M enterprises, it provides the benefit of quick decision making to the organisation because:
(a) It's a means of management education 
(b) Organisation is able to generate more returns
(c) There are innovative performance systems
(d) There is no requirement for approval from many levels

Answer : D

Question. ‘Why is there, need to apply the philosophy being followed by S&M, with caution?
(a) As it can cause a delay in communication
(b) As it can cause disintegration of the organisation
(c) As it can increase the workload of the top management
(d) As it can reduce the chances of growth of the firm.

Answer : B