Question 1
Which of the following best defines "management"?[cite: 11]
✅ Correct Answer: A process of getting things done through and with people
Explanation: Management involves coordinating human and physical resources efficiently to achieve organisational goals.[cite: 11]
Question 2
Which function of management helps in deciding "what is to be done in future"?[cite: 11]
✅ Correct Answer: Planning
Explanation: Planning involves setting objectives and deciding the course of action before activities begin.[cite: 11]
Question 3
Which principle of management states that "employees should receive orders from only one superior"?[cite: 11]
✅ Correct Answer: Unity of Command
Explanation: Unity of command avoids confusion and conflict by ensuring a single reporting authority.[cite: 11]
Question 4
Which of the following is NOT a characteristic of coordination?[cite: 11]
✅ Correct Answer: It arises spontaneously
Explanation: Coordination is a conscious and deliberate effort by management; it does not occur automatically.[cite: 11]
Question 5
Which financial market deals with long-term securities?[cite: 11]
✅ Correct Answer: Capital Market
Explanation: Capital market facilitates trading in long-term securities such as shares and debentures.[cite: 11]
Question 6
A company introduced online training sessions for employees to improve digital skills. Which function of management is reflected here?[cite: 11]
✅ Correct Answer: Staffing
Explanation: Training and development of employees is an important part of staffing.[cite: 11]
Question 7
The production manager of a company noticed repeated delays due to lack of coordination between purchase and production departments. Which management concept should be strengthened?[cite: 11]
✅ Correct Answer: Coordination
Explanation: Coordination ensures proper synchronization among departments to avoid delays and duplication.[cite: 11]
Question 8
A business firm gave freedom to branch managers to take local decisions regarding pricing and promotions. Which concept is being followed?[cite: 11]
✅ Correct Answer: Decentralisation
Explanation: Decentralisation means distributing decision-making authority to lower managerial levels.[cite: 11]
Question 9
"Employees should be rewarded fairly to encourage efficiency." Which principle of Fayol is highlighted?[cite: 11]
✅ Correct Answer: Remuneration
Explanation: Fair remuneration motivates employees and improves organisational performance.[cite: 11]
Question 10
A consumer found that the packaged food product purchased had no manufacturing date mentioned. Which consumer right is violated?[cite: 11]
✅ Correct Answer: Right to be informed
Explanation: Consumers have the right to receive complete information regarding product quality, quantity, and manufacturing details.[cite: 11]
Question 11
Assertion (A): Delegation helps managers focus on strategic issues.
Reason (R): Subordinates are entrusted with authority to perform assigned tasks.[cite: 11]
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Delegation transfers routine responsibilities to subordinates, allowing managers to focus on important matters.[cite: 11]
Question 12
Assertion (A): Controlling is meaningless without planning.
Reason (R): Planning provides standards against which actual performance is measured.[cite: 11]
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Controlling requires standards for comparison, and these standards are established during planning.[cite: 11]
Question 13
Read the following case carefully:
Zenith Ltd. conducted a detailed study to identify the best method of packing products. It also fixed standard time for each activity and trained workers accordingly.
Which scientific management technique is mainly used here?[cite: 11]
✅ Correct Answer: Method study
Explanation: Method study identifies the best possible way of performing a task scientifically. (Tricky Question: Students often confuse it with time study.)[cite: 11]
Question 14
Read the passage carefully:
An electronics company launched eco-friendly appliances and ensured proper disposal of electronic waste. It also contributed to educational programs in nearby villages.
Which objective of management is primarily reflected?[cite: 11]
✅ Correct Answer: Social objective
Explanation: Social objectives focus on welfare of society, environmental sustainability, and ethical responsibilities.[cite: 11]
Question 15
A manager increases employee salaries regularly but workers still feel dissatisfied because promotions are unfair. Which concept is most closely related to this situation?[cite: 11]
✅ Correct Answer: Equity
Explanation: Equity emphasizes fairness and justice in managerial treatment of employees, not just monetary rewards.[cite: 11]
Question 16
Which of the following situations best reflects "informal organisation"?[cite: 11]
✅ Correct Answer: Employees interacting socially beyond official structure
Explanation: Informal organisation develops naturally through social interactions among employees.[cite: 11]
Question 17
A company's sales department achieved its targets, but customer complaints increased sharply. Which management function failed MOST likely?[cite: 11]
✅ Correct Answer: Controlling
Explanation: Controlling should monitor quality standards and customer satisfaction along with sales performance.[cite: 11]
Question 18
Which of the following is the BEST example of "business environment"?[cite: 11]
✅ Correct Answer: Policies of competitors affecting market demand
Explanation: Business environment includes external factors like competitors, government policies, and market conditions.[cite: 11]
Question 19
A company gave higher wages to workers producing above standard output and lower wages to inefficient workers. Which principle/technique is used?[cite: 11]
✅ Correct Answer: Differential piece wage system
Explanation: Taylor's differential wage system rewards efficient workers with higher wages to encourage productivity. (Tricky Question: Often confused with incentive schemes.)[cite: 11]
Question 20
Which statement correctly differentiates "unity of command" and "unity of direction"?[cite: 11]
✅ Correct Answer: Unity of command means one boss for one employee, while unity of direction means one plan for one set of activities.
Explanation: Unity of command avoids dual authority, while unity of direction ensures all similar activities move toward a common objective. (High-probability conceptual trap question.)[cite: 11]
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