Business Management MCQs

Question 1

Consider the following statements.
1. There is a clear hierarchy of offices.
2. The functions are clearly specified.
3. There is a career structure.
4. There is money as great motivator.
The aboveare the characteristics of

Accepted Answer

the Bureaucracy

Answer

the Administration

Answer

the Government

Answer

all of the above

Question 2

Assertion (A) Both Weber's Bureaucracy and Taylor's scientific management emphasise on rationality, predictability, impresonality, technical competence and authoritarianism. Reason (R) Though Weber's writings were less operational than Taylor's, yet 'ideal bureaucracy' describes many contemporary organisations.

Accepted Answer

Both (A) and (R) are right

Answer

(A) is right and (R) is wrong

Answer

(A) is wrong and (R) is right

Answer

Both (A) and (R) are wrong

Question 3

Which of the following are the principles of scientific management?
1. Different piece rate plan
2. Equal pay for all
3. Cooperation between managers and workers
4. Standardisation of tools and machines
5. Scientific selection of workman

Accepted Answer

1, 3, 4 and 5

Answer

1, 2 and 5

Answer

2, 3 and 5

Answer

1, 2 and 3

Question 4

Assertion (A) Management is a set of principles relating to its functions. Reason (R) Management is essential to run all types of organisations.

Accepted Answer

Both (A) and (R) are correct, but (R) is not the right explanation of (A)

Answer

Both (A) and (R) are correct and (R) is the right explanation of (A)

Answer

Statement I is correct and Statement II is incorrect

Answer

(A) is correct, but (R) is incorrect

Question 5

Which is the type of communication used by small groups? 1. Diffusion 2. Circular flow with feedback 3. Chain flow with feedback 4. Centralised flow with feedback Select the correct answer:

Accepted Answer

2, 3, 4

Answer

1, 3, 4

Answer

1, 2, 4

Answer

All of the above

Question 6

Match the following. List-I (Organisational Structure) List-II (Advantages) a. Functional structure 1. Clarity of project objectives b. Divisional structure 2. Smooth delegation of authority and responsibility c. Matrix structure 3. Simple and inexpensive d. Strategic Business Unit (SBU) 4. Ease of fixing accountability

Accepted Answer

a-3, b-4, c-1, d-2

Answer

a-1, b-2, c-3, d-4

Answer

a-3, b-1, c-2, d-4

Answer

a-4, b-1, c-2, d-3

Question 7

Which of the following statements are incorrect? 1. Management is not related to the owners. 2. Management is relevant only at lower levels. 3. Management is guided by the opinion of others.

Accepted Answer

Both Statements 1 and 2

Answer

Only Statement 1

Answer

Only Statement 2

Answer

Both Statements 1 and 3

Question 8

Match the following. List-I List-II a. Linking pin 1. Dual role of an individual b. Work specialisation 2. Bifurcation of work c. Formalisation 3. Rules and procedures d. Chain of command 4. Defines authority and responsibility

Accepted Answer

a-1, b-2, c-3, d-4

Answer

a-1, b-3, c-2, d-4

Answer

a-2, b-1, c-3, d-4

Answer

a-1, b-4, c-3, d-2

Question 9

Which of the following statements are true/false?
1. Directing provides adequate satisfaction.
2. Directing comprises of delegation, authority and departmentalisation.
3. Directing ensures proper feedback.
4. Directing entails maximum contribution.

Accepted Answer

1, 3, 4 are true and 2 is false

Answer

1, 2, 4 are true and 3 is false

Answer

2, 3, 4 are true and 1 is false

Answer

1 and 3 are correct, 2 and 4 are false

List-I (Organisational Structure)	List-II (Advantages)
a. Functional structure	1. Clarity of project objectives
b. Divisional structure	2. Smooth delegation of authority and responsibility
c. Matrix structure	3. Simple and inexpensive
d. Strategic Business Unit (SBU)	4. Ease of fixing accountability

List-I	List-II
a. Linking pin	1. Dual role of an individual
b. Work specialisation	2. Bifurcation of work
c. Formalisation	3. Rules and procedures
d. Chain of command	4. Defines authority and responsibility