Nature and Significance of Management | Class 12 | Business Studies | Chapter-1

Nature and Significance of Management MCQ

Below are some of the very important NCERT MCQ Questions of Nature and Significance of Management Class 12 Business Studies Chapter 1 with Answers. These Nature and Significance of Management MCQ have been prepared by expert teachers and subject experts based on the latest syllabus and pattern of term 1 and term 2. We have given these Nature and Significance of Management MCQ Class 12 Business Studies Questions with Answers to help students understand the concept.

MCQ Questions for Class 12 Business Studies Chapter 1 are very important for the latest CBSE term 1 and term 2 pattern. These MCQs are very important for students who want to score high in CBSE Board.

We have put together these NCERT Questions Nature and Significance of Management MCQ for Class 12 Business Studies Chapter 1 with Answers for the practice on a regular basis to score high in exams. Refer to these MCQs Questions with Answers here along with a detailed explanation.


Nature and significance of management mcq

MCQ 1-31

1. Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.

  1. Management
  2. Planning
  3. Organising
  4. Controlling

2. Management is a/an ___________process as it is an ongoing and never ending process.

  1. continuous
  2. non continuous
  3. frequent
  4. alter

3. ___________ is used extensively for all types of activities and mainly for taking charge of different activities in any enterprise.

  1. Planning
  2. Management
  3. Coordination
  4. Staffing

4. Which of the following feature of management states that management function cannot be performed in isolation?

  1. Management is a goal oriented process
  2. Management is all pervasive
  3. Management is a continuous process
  4. Management is a group activity

5. Management follows a series of continuous interrelated functions so it is called

  1. series
  2. process
  3. experiment
  4. none of these

6. Management is a process of designing and maintaining an environment in which __________ work together __________, efficiently and effectively and placing selected aims.

  1. groups, independently
  2. individuals, in groups
  3. individuals, independently
  4. none of the above

7. If a manager is able to achieve the target production of 7,000 units but at a higher cost, then what will be he considered as?

  1. Only efficient
  2. Only effective
  3. Both efficient and effective
  4. Neither efficient nor effective

8. If a manager is not able to achieve the target production of 6,000 units but is able to reduce the costs significantly, then what will he be considered as?

  1. Only efficient
  2. Only effective
  3. Both efficient and effective
  4. Neither efficient nor effective

9. Match the following.

CHARACTERISTICSEXPLANATIONS
(a) Goal-oriented process(i) Management is a complex activity involving management of people, work and operations.
(b) Group activity(ii) Some aims and objectives are the basic reason for existence of an organisation.
(c) Multi-dimensional(iii) Diverse individuals with different needs work together to fulfill the common organisational goal.
  1. (ii), (i), (iii)
  2. (ii), (iii) ,(i)
  3. (iii), (ii), (i)
  4. (iii), (i), (ii)

10. ‘Anyone can be called a manager irrespective of the educational qualification possessed’. Identify the characteristic of the profession that Management does not fulfill in the statement being discussed above

  1. Ethical Code of Conduct
  2. Professional Association
  3. Restricted Entry
  4. Service Motive

11. Which of the following nature of management involved skillful and personal application of existing knowledge to achieve desired result?

  1. Science
  2. Arts
  3. Profession
  4. None of these

12. Which of the following statements is true for management as a science?

  1. Existence of theoretical knowledge
  2. Based on practice and creativity
  3. Principles based on experimentation
  4. Professional Association

13. Management is ________

  1. a science
  2. an art
  3. both a science and an art
  4. none of the above

14. Art can be acquired through which of the following

  1. study
  2. observation
  3. experience
  4. all of the above

15. A good manager works through a combination of which of the following?

  1. practice
  2. creativity and imagination
  3. initiative and innovation
  4. all of the above

16. Nature of __________ is said to be a systematic body of knowledge which explains certain general truths

  1. management as a science
  2. management as an art
  3. management as a profession
  4. all of the above

17. Identify the nature of management when it is practiced as personal application of existing knowledge to achieve desired results.

  1. Management as a Science
  2. Management as an art
  3. Management as a profession
  4. All of the above

18. Match the following.

MANAGEMENTEXPLANATION
(a) Art(i) Management is based on systematic body of knowledge comprising well defined principles based on a variety of business situations.
(b) Profession(ii) Principles of management are based on repeated experimentation and observation in different types of organisation.
(c) Science(iii)Manager applies the acquired knowledge in a personalised and skilled manner.
  1. (ii), (i), (iii)
  2. (ii), (iii), (i)
  3. (iii), (ii), (i)
  4. (iii), (i), (ii)

19. _______ is the process by which manager brings how order out of chaos, removes conflict among people over allotted work or responsibility sharing and creates an environmental suitable for teamwork.

  1. planning
  2. organising
  3. staffing
  4. controlling

20. Name the function of management which helps in the formulation of future plans in the light of the problems that we identify and thus, helps in better planning in the future period?

  1. planning
  2. organising
  3. directing
  4. controlling

21. Which of the following functions of Management helps in assigning duties grouping task establishing authority and allocating resources required to carry out a specific plan?

  1. planning
  2. directing
  3. staffing
  4. organising

22. Festive season was about to come Mr Singh head of production department called for a meeting of all the subordinates and communicated the objectives now he is establishing authority responsibility relationship between superior and subordinate to avoid any delay.

________ function of management is stated in the above case.

  1. organising
  2. controlling
  3. directing
  4. planning

23. _______ comes under the top management.

  1. Chief Executive Officer
  2. operations manager
  3. foremen
  4. supervisor

24. At which level managers spend more time in planning and organising?

  1. top level
  2. middle level
  3. lower level
  4. all of these

25.  ____________ plays a very important role in the organisation as they act as a link between the top and lower level of management.

  1. Supervisory level
  2. Middle level
  3. Operational level
  4. First line managers

26. Hiring of employees is done by

  1. top level
  2. middle level
  3. lower level
  4. all of these

27. Match the following.

POSITIONSLEVEL
(a) Vice President (marketing)(i) Middle level management
(b) Production manager(ii) Lower level management
(c) Foremen(iii) Top level management
  1. (i), (iii), (ii)
  2. (ii), (iii), (i)
  3. (iii), (i), (ii)
  4. (ii), (i), (iii)

28. ‘Even where members of a department willingly co-operate and work manager has to co-ordinate the efforts of different people in a conscious manner’. Identify the characteristic of coordination discussed above.

  1. Coordination and shows unity and action
  2. Coordination is a deliberate function
  3. Coordinate is a continuous process
  4. Coordination is an all pervasive function

29. Coordination is needed at

  1. lower level of management
  2. middle level of management
  3. top level of management
  4. all of the above

30. Which level of manager is responsible for coordination?

  1. lower
  2. middle
  3. upper
  4. all levels

31. ‘XYZ Limited, found that there was decline in sales even in the festive season. After analysing it was found that purchase and sales departments were not synchronizing so that supply of goods could take place according to purchase orders.

___________ aspect of management is lacking above.

  1. Planning
  2. Organising
  3. Controlling
  4. Coordination

32. Making timetable in an educational institute is an example of _________.

  1. Organizing
  2. Coordination
  3. Controlling
  4. None of these

33. The process by which a manager synchronises the activity of different departments is

  1. planning
  2. organising
  3. controlling
  4. coordination

34. Coordination is needed when

  1. an individual is working independently
  2. a group is working
  3. both when an individual is working independently and a group is working
  4. neither when an individual is working independently nor when a group is working

35. Coordination is

  1. the last function of management
  2. the first function of management
  3. the essence of management
  4. a separate function of management

36. Coordination is

  1. a random effort and established by itself
  2. a deliberate effort and established by itself
  3. a random effort when manager also makes an effort to co-ordinate
  4. a deliberate effort when manager also makes an effort to co-ordinate 

37. Which of the following process is provide the requisite amount, quality, timing and sequence of efforts and insures that planned objectives are achieved with a minimum of conflicts?

  1. Planning
  2. Controlling
  3. Organising
  4. Coordination

38. Match the following.

FEATURESEXPLANATIONS
(a) Pervasive function(i) Begins at the planning stage and continue till controlling
(b) Continous process(ii) Unifies unrelated or diverse activities or interests
(c) Deliberate function(iii) Required at all level of management
(d) Integrative function(iv) Conscious efforts by manager

MCQ Answers

1. (1)

Management means a process that is carried out out to do primary functions or activities that the management does to get things done. These functions are planning, organising, staffing, directing and controlling.

2. (1)

The process of management is a series of continuous composite but separate functions. These functions are performed by all managers at all the time simultaneously.

3. (2)

The activities involved in managing and enterprise are common to all organisation weather economic, social or political.

4. (4)

Management means a group of people involved in managerial activities. Management functions cannot be performed in an isolation. Even if the results of management affect every individual and every department of the organisation, it always refers to a group effort and not the individual effort of a single person.

5. (2)

Management is the process of planning, organising, directing and controlling the efforts of organisational members and of using the organisation’s resources to achieve specific goals.

6. (2)

Management unites the efforts of different individuals and creates an environment to work in groups in the organisation towards achieving the goal.

7. (2)

Effectiveness in management comes with write task completing activities and achieving goals specifically it is based on the end result.

8. (1)

Efficiency means to do the task correctly and with minimum amount of cost. Efficiency increases when for the same benefit or outputs fewer resources are used and less cost is required.

9. (2)

(ii), (iii), (i)

10. (3) 

The entry to a profession is restricted through an examination or to acquiring an educational degree. Whereas there is no legal restriction on appointment of a manager anyone can become a manager is irrespective of the educational qualification.

11. (2)

A successful manager practices the art of management in the day to day job of managing an enterprise based on study. A manager applies his acquired knowledge in a personalized and skillful manager in the light of the realities of given situation.

12. (3)

Scientific principles are first developed through observation and then tested through repeated experimentation and their control condition.

13. (3)

Management is both signed as well as an art. Like science it has systematic well organised body of knowledge and like and it requires personal skill, creativity and practice to apply such knowledge in the best possible way.

14. (4)

In every are there is systematic and organise study material available to acquire a theoretical knowledge of the art. Every artist must have personal scale and creativity to apply that knowledge.

15. (4)

A good manager should practice his skills. He should be creative innovative imaginative and take initiative to perform the tasks of the organisation in order to achieve goals.

16. (1)

Science is a systematic body of knowledge its principles are based on the cause and effect relationship. Such systematic body of knowledge contains concepts, principles and theories which help to explain past events and to predict the outcome of specific actions.

17. (2)

Management is an art because it requires personal skill creativity and practice to apply systematic and well organised body of knowledge in the best possible way.

18. (4)

(iii), (i), (ii)

19. (2)

Proper organisational technique help in the accomplishment of work and promote both the efficiency of operation and effectiveness of results.

20. (4)

Controlling is the management function of monitoring organisational performance towards the attachment of organisational goals.

21. (4)

The function of organising in was the determination of activities that need to be done in order to reach the company goals, assigning these activities to the proper personnel, and delegating the necessary authority to carry out these activities and a coordinated and cohesive manner.

22. (1)

Organising is the management function of assigning duties grouping task, establishing authority and allocating resources required to carry out specific plan.

23. (1)

The top level management includes Board of Directors and the Chief Executive. This level determine the objectives of the business as a whole and lays down policies to achieve these objectives.

24. (1)

The top management is the ultimate source of authority and it manages goals and policies for an enterprise. It devotes more time on planning organising and coordinating functions.

25. (2)

Middle level management is the link between top and lower level managers. These are subordinate to top managers and superior to the first line managers.

26. (2)

Middle level management participate in employment and training of managers so they are responsible for hiring of employees.

27. (3)

(iii), (i), (ii)

28. (2)

A manager has to co-ordinate their efforts of different people in a conscious and deliberate way. Even where members of a department willingly co-operate and work, coordination gives a direction to that willing spirit.

29. (4)

Coordination is required at all levels of management you to the entered dependent nature of activities of various departments. It integrates the effort of different department and department levels.

30. (4)

Coordination is needed at all three management levels, top, middle and lower. Different activities performed at all levels are equally important. Thus, it is the responsibility of all the managers that they make effort to establish coordination.

31. (4)

Coordination involves synchronisation of the different actions or efforts of the various units of an organisation.

32. (2)

Planning is the elementary stage of achieving coordination. When various functions are properly planned and various policies are integrated then coordination will be easily achieved.

33. (4)

Coordination is the integration, unification and synchronisation of the efforts of the departments to provide unity of action for pursuing a common goals.

34. (2)

The need for coordination is felt when group effort is needed for the accomplishment of an objective. In short, it can be said that coordination is related to group effort and not individual effort.

35. (3)

Coordination is the essence of management, for achieving harmony among individual efforts towards the accomplishment of group goals.

36. (4)

Every manager tries to co-ordinate the activities of organisation to avoid confusion and chaos. Without coordination efforts of the individuals cannot be united an integrated that is why while performing various activities in the organisation managers deliberately perform coordination function.

37. (4)

The process of coordinating the activities of an organisation begins at the planning stage itself. Coordination is needed to avoid inconsistencies in priorities, objectives and policies which may adversely affect the realisation of overall objectives of the company.

38. (2)

(iii), (i), (iv), (ii)


Assertion-Reasoning Based MCQ

Code

  1. Both assertion and reason are true and reason is the correct explanation of assertion.
  2. Both assertion and reason are true but reason is not the correct explanation of assertion.  
  3. Assertion is true but reason is false.
  4. Assertion is false but reason is true. 

1. Assertion Management is a goal-oriented process

Reason An organisation has a set of basic goals which are the basic reasons for its existence.

2. Assertion Management is a dynamic function and has to adapt itself to the changing environment.

Reason The effect of management is noticeable in an organisation where targets are met according to plans.

3. Assertion Management is responsible for setting and achieving objectives for the organisation.

Reason The basic objective of any business is survival.

4. Assertion Management increases efficiency

Reason An organisation has a single objective to serve the purpose of different groups that consitute it.

5. Assertion Profession involves skilled and personal application of existing knowledge to achieve desired results.

Reason Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art.

6. Assertion Scientific principles have universal application and validity.

Reason Management principles are not exact like scientific principles so their application and use is not universal.

7. Assertion Management is a systematic body of knowledge

Reason Management has its own theory and principles that have developed over a period of time.

8. Assertion All professions are bound by a code of conduct which guides the behaviour of its members.

Reason There are several associations of practicing managers in India, that has laid down a code of conduct to follow.

9. Assertion Middle management is the link between top and lower level managers.

Reason Middle management are subordinate to top managers and superior to the first line managers.

10. Assertion Lower level managers spend more time in planning and organising.

Reason Top management consists of the seniormost executives of the organisation.

11. Assertion Planning is the first function of management.

Reason Planning implies setting goals in advance and developing a way of achieving them efficiently and effectively.

12. Assertion Staffing is finding the right people for the right job and is an important aspect of management.

Reason Staffing makes sure that right people with the right qualification are available at the right places and times to accomplish the goals of the organisation.

13. Assertion Coordination integrates group efforts.

Reason Coordination unifies unrelated or diverse interests into purposeful work activity.

14. Assertion Coordination is the essence of management.

Reason Coordination is the force that binds all the other functions of management.

15. Assertion Coordination begins at the planning stage and continues till controlling .

Reason Coordination is a one time process.

16. Assertion Coordination is an all-pervasive function.

Reason Coordination insures unity of action.

Assertion-Reasoning Based MCQ Answers

1. (1)

Different organisations have different goals. Management unites the efforts of different individuals in the organisation towards achieving these goals.

2. (2)

An organisation interacts with its external environment which consists of various social economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

3. (1)

Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, and to fulfill the economic objective of a business these are survival profit and growth.

4. (3)

The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling activities of the organisation.

An organisation has multiple objectives to serve the purpose of different groups that constitutes it. In the process of fulfilling all these management helps in the development of the organisation and true that it helps in the development of society.

5. (4)

Art involves skillful and personal application of existing knowledge to achieve desired results. Art presupposes the existence of certain theoretical knowledge.

6. (2)

Scientific principles are based on truth and they can be applied at every time and in every situation. Thus, its universal application is possible. In the field of management, managerial knowledge and principle of management are considered to be based on truth and they too, can be applied anywhere and in every situation.

7. (1)

Management has a systematized body of knowledge like all the other organised activities. Management has its own theory principles vocabulary of terms and concepts.

8. (1)

Every profession has a certain code of conduct to follow there are several associations of practicing managers in India, like the AIMA (All India Management Association) that has laid down the code of conduct to regulate the activities of their members.

9. (1)

Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first line managers.

10. (4)

Top level managers spend more time in planning and organising they are usually referred to as the chairman, the CEO, chief operating officer, president and vice-president formulate overall organisational goals and the strategies for their achievement.

11. (1)

Planning is the function of determining in advance what is to be done and who is to do it. Planning bridges the gap between where we are and where we want to go.

12. (1)

Staffing is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personal.

13. (1)

Coordination gives a common focus to group effort to ensure that performance is at it was planned and scheduled.

14. (1)

Coordination is the common thread that runs through all activities such as purchase, protection, sales and finance to ensure continuity in the working of the organisation. Coordination is implicit and inherent in all functions of an organisation.

15. (3)

Coordination is a continuous process. It is not a one time function but a continuous process it begins at the planning state and continues till controlling.

16. (2)

Coordination is required at all levels of management due to the interdependent nature of activities of various departments. It integrates the efforts of different departments and different levels.


Case-Study Based MCQ

1. Gaurav is the branch manager of XYZ Handicraft 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.

Gaurav decides quantities, varieties, colours and textures of all of the above items and then allocates resources for their purchase from different suppliers. He appointed a team of designers and craftspeople in the company who develop some prints for bed cover in bright colour on silk all.

Though all of the products looked very attractive and impressive, but they were relatively expensive on the front of affordability for an average customer. Gaurav suggested that they should keep the silk bed covers for special festive occasions and offer the cotton bed covers on regular basis to keep costs under control.

(i) ‘He appointed a team of designers and craftspeople in the company who developed some print for bed cover in bright colour on silk’.

Which function of management is highlighted in this context?

(a) controlling
(b) stuffing
(c) planning
(d) directing

(ii) In the above case ‘company’s objective is to promote the sales of Indian handloom and handicraft products’. The above line focus on which of the feet picture 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

(iii) With reference to the above case at which level of management, Gaurav is working?

(a) lower level
(b) top level
(c) middle level
(d) shop floor

(iv) Gaurav suggested that they should keep the silk bed covers for special festive occasion and offer the cotton bed covers on a regular basis to keep cost under control. Which function of management is highlighted in this context?

(a) controlling
(b) staffing
(c) organising
(d) planning

2. A very innovative firm has decided to increase its sales. The company is good but they have noticed that their growth has stagnated for the last couple of years. The top management calls for an emergency meeting.

For this, they have outlined a series of activities to be performed by each person. The people are told the activities that have to be performed. Thus, the work is divided among the individuals. The efforts taken by the firm turns out to be very profitable. The newspapers and management institutes also praised the company for its high standard of of management.

However, as time passes, the size of the organisation grows and the state thing of bring another concept of management with a lot of decisions. This concept of management is not voluntary but rather based on a lot of clear cut thinking in advance. The main idea is to reduce confusion among the employees regarding any of the activities they have been assigned.

(i) Identify the function of management highlighted in the above lines which the company follows.

(a) planning
(b) organising
(c) directing
(d) controlling

(ii) Identify and the above lines a concept of management discussed which the company tries to bring.

(a) Co-ordination
(b) Corporation
(c) Controlling
(d) Planning

(iii) Find out one importance of the concept highlighted in the above case growth in size.

(a) Specialisation
(b) Functional
(c) Differentiation
(d) none of the above

(iv) Find out one characteristic of the concept highlighted in the above case.

(a) Continuous process
(b) Deliberate effort
(c) Pervasive
(d) Responsibility of all managers

3. ABC Radio is a company which has improved its functioning by proper management. The company has been good in deciding and completing targets in the previous meeting. It was decided that in coming years company could show increase in the number of workers, number of products produced and also the sales turnover.

However, it recently got a negative reputation and the impact of resignation put forward by two of a departmental heads. These departmental heads were experts in their fields one was leading the marketing department and the other was a scientist of repute who headed the manufacturing department.

In the top level management meeting it was found that such departmental heads have specialist in their areas cannot be tackled by unity of command. They were egoistic as they were specialists. After the meeting things started to change for the organisation as all the department started to work with one single target of given by the company its lost fame. There was a combined effort which doubled the revenue of the organisation. A special regulation system of including every level manager was brought into action does the overall functioning of the organisation improved.

(i) Identify the feature of management highlighted above

(a) management is an intangible force
(b) management is multidimensional
(c) management is goal oriented process
(d) management is all pervasive

(ii) ‘ ….. company could show increase in the number of workers, number of products produced and also the sales turnover.’ Identify the type of objective being discussed.

(a) organisational
(b) personal
(c) social
(d) none of these

(iii) The concept of management missing in ABC radio company is

(a) corporation
(b) coordination
(c) control
(d) direction

(iv) ‘ ….. as all the departments started to work with one single target of giving back the company its lost fame.’ Identify the feature of coordination being discussed above.

(a) unity of action
(b) responsibility of all managers
(c) pervasive
(d) continous process

Case-Study Based MCQ Answers

1. (i)(b) (ii)(b) (iii)(c) (iv)(a)

2. (i)(a) (ii)(a) (iii)(a) (iv)(b)

3. (i)(c) (ii)(a) (iii)(b) (iv)(a)


Final Words

From the above article, you have practiced Nature and Significance of Management MCQ of class 12 Business Studies Chapter 1. We hope that the above-mentioned MCQs for term 1 of chapter 1 Nature and Significance of management MCQ World will surely help you in your exam. 

If you have any doubts or queries regarding Nature and Significance of Management MCQ (Multiple Choice Questions) with Answers, feel free to reach us and we will get back to you as early as possible.

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