Question 1
Which of the following is NOT a feature of management?[cite: 1132]
✅ Correct Answer: Rigid and unchangeable
Explanation: Management is dynamic and flexible according to environmental changes. It is not rigid in nature.[cite: 1137]
Question 2
"Planning reduces uncertainty by deciding in advance what to do and how to do." Which importance of planning is highlighted here?[cite: 1140]
✅ Correct Answer: Reduces the risk of uncertainty
Explanation: Planning helps managers anticipate future situations and prepare suitable responses, thereby reducing uncertainty.[cite: 1146]
Question 3
Which level of management is mainly responsible for implementing policies and coordinating activities of different departments?[cite: 1149]
✅ Correct Answer: Middle-level management
Explanation: Middle-level managers act as a link between top and lower management and ensure departmental coordination.[cite: 1154]
Question 4
Identify the correct sequence of staffing process.[cite: 1157]
✅ Correct Answer: Recruitment → Selection → Training → Placement
Explanation: Staffing begins with recruitment, followed by selection, training, and finally placement of employees.[cite: 1163]
Question 5
Which of the following is an example of informal communication?[cite: 1167]
✅ Correct Answer: Grapevine communication
Explanation: Informal communication occurs without prescribed channels and is commonly known as grapevine communication.[cite: 1172]
Question 6
A company fixes sales targets and compares actual sales with targets every month. Which function of management is being performed?[cite: 1175]
✅ Correct Answer: Controlling
Explanation: Controlling involves setting standards, measuring performance, and taking corrective actions if deviations occur.[cite: 1181]
Question 7
Raj Ltd. introduced bonuses and employee recognition awards to improve productivity. Which motivational technique is used here?[cite: 1184]
✅ Correct Answer: Financial and non-financial incentives
Explanation: Bonuses are financial incentives, while recognition awards are non-financial incentives used to motivate employees.[cite: 1189]
Question 8
A manager transfers authority to subordinates but remains accountable for final results. Which principle is highlighted?[cite: 1192]
✅ Correct Answer: Delegation
Explanation: Delegation means assigning authority and responsibility to subordinates while the manager remains accountable.[cite: 1197]
Question 9
"A manager should replace old methods with scientific techniques after proper study." Which principle of Taylor is referred to?[cite: 1200]
✅ Correct Answer: Science, not rule of thumb
Explanation: Taylor emphasized replacing traditional guesswork methods with scientifically tested techniques.[cite: 1205]
Question 10
A consumer purchased a defective mixer grinder. The seller refused replacement despite warranty. Under which right can the consumer seek redressal?[cite: 1208]
✅ Correct Answer: Right to seek redressal
Explanation: Consumers can demand compensation or replacement for defective products under the right to seek redressal.[cite: 1214]
Question 11
Assertion (A): Decentralisation reduces burden on top management.
Reason (R): Decision-making authority is shared with lower levels.[cite: 1217]
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Decentralisation distributes authority among lower levels, thereby reducing workload of top management.[cite: 1222]
Question 12
Assertion (A): Planning guarantees success in business.
Reason (R): External factors may affect actual outcomes.[cite: 1225]
✅ Correct Answer: A is false, but R is true.
Explanation: Planning improves chances of success but cannot guarantee it because external factors remain uncertain.[cite: 1231]
Question 13
Read the following case carefully:
Sunrise Pvt. Ltd. appointed a supervisor to monitor workers on the production floor. The supervisor ensured discipline, provided guidance, and maintained communication between workers and management. Which function is mainly performed by the supervisor?[cite: 1234]
✅ Correct Answer: Supervisory management
Explanation: Supervisors directly oversee workers, maintain discipline, and ensure smooth operations at operational level.[cite: 1242]
Question 14
Read the passage carefully:
A company manufacturing packaged food introduced biodegradable packaging, reduced plastic usage, and ensured fair wages to employees. Which objective of management is mainly highlighted?[cite: 1245]
✅ Correct Answer: Social objective
Explanation: Social objectives focus on welfare of society, environmental protection, and ethical business practices.[cite: 1252]
Question 15
Which statement best explains why coordination is called the "essence of management"?[cite: 1255]
✅ Correct Answer: It integrates group efforts towards common goals.
Explanation: Coordination harmonises activities of different departments and individuals to achieve organisational objectives efficiently.
Question 16
A business firm increased advertisement expenses heavily, but sales did not rise. Which management function should now focus on identifying deviations and corrective action?
✅ Correct Answer: Controlling
Explanation: Controlling compares actual performance with standards and identifies corrective measures when results differ.
Question 17
Which of the following is the most appropriate example of "method study" under Scientific Management?
✅ Correct Answer: Finding one best way to perform a job
Explanation: Method study analyses different methods of doing work to identify the most efficient technique. (Tricky Question: Students often confuse method study with time study.)
Question 18
A company has highly skilled employees but poor teamwork among departments. Which management concept is MOST affected?
✅ Correct Answer: Coordination
Explanation: Even skilled employees cannot achieve organisational goals efficiently without proper coordination among departments.
Question 19
A manager believes employees dislike work and require strict supervision. Which leadership assumption does this reflect?
✅ Correct Answer: Theory X
Explanation: Theory X assumes employees avoid responsibility and need close supervision and control. (Tricky Question: Students commonly confuse Theory X and Theory Y.)
Question 20
Which of the following situations reflects violation of the principle of "Unity of Command"?
✅ Correct Answer: A worker receives instructions from production manager and quality manager simultaneously.
Explanation: Unity of command means an employee should receive orders from only one superior to avoid confusion and conflict. (Tricky Question: Often confused with unity of direction.)
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