Question 1
Which of the following is the primary objective of management?
✅ Correct Answer: Achieving organisational goals efficiently and effectively
Explanation: Management aims to achieve organisational objectives while making optimum use of available resources.[cite: 1658]
Question 2
Which function of management establishes standards for measuring performance?
✅ Correct Answer: Planning
Explanation: Planning sets objectives and standards which later become the basis for controlling performance.[cite: 1666]
Question 3
Which principle of Fayol emphasizes "a place for everything and everyone"?
✅ Correct Answer: Order
Explanation: The principle of order ensures systematic arrangement of materials and people for efficient functioning.[cite: 1674]
Question 4
Which of the following is a feature of business environment?
✅ Correct Answer: Exists independently of business
Explanation: Business environment consists of external forces beyond the control of business firms.[cite: 1682]
Question 5
Which type of plan is prepared for repetitive activities?
✅ Correct Answer: Procedures
Explanation: Procedures provide step-by-step guidelines for handling routine and repetitive tasks.[cite: 1690]
Question 6
A company compared actual production costs with budgeted costs and found major deviations. Which step of controlling process is being performed?
✅ Correct Answer: Analysing deviations
Explanation: After measuring performance, managers analyse deviations between actual and standard performance.[cite: 1699]
Question 7
The HR manager selected employees after conducting written tests, interviews, and medical examinations. Which staffing activity is being performed?
✅ Correct Answer: Selection
Explanation: Selection involves choosing suitable candidates through various assessment techniques.[cite: 1707]
Question 8
A company allowed workers to communicate directly with another department during emergencies, bypassing official hierarchy. Which concept is reflected?
✅ Correct Answer: Gang plank
Explanation: Gang plank allows quick communication across departments in urgent situations.[cite: 1715]
Question 9
Which element of marketing mix is MOST directly related to packaging and branding decisions?
✅ Correct Answer: Product
Explanation: Packaging and branding are important decisions associated with the product element of marketing mix.[cite: 1723]
Question 10
A consumer was charged a price higher than the Maximum Retail Price (MRP) printed on the package. Which consumer right is violated?
✅ Correct Answer: Right to be informed
Explanation: Consumers have the right to accurate information regarding pricing and product details.[cite: 1732]
Question 11
Assertion (A): Coordination is required at all levels of management.
Reason (R): Different departments and individuals work toward common organisational goals.
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Coordination integrates activities of different departments and is essential at every management level.[cite: 1741]
Question 12
Assertion (A): Recruitment identifies and attracts potential employees.
Reason (R): Recruitment guarantees selection of the best candidate.
✅ Correct Answer: A is true, but R is false.
Explanation: Recruitment only attracts candidates; final selection depends on further evaluation processes.[cite: 1749]
Question 13
Read the following case carefully:
A manufacturing company noticed workers taking unnecessary movements while assembling products. Management redesigned the workplace layout to reduce fatigue and save time.
Which scientific management technique is being used?
✅ Correct Answer: Motion study
Explanation: Motion study eliminates unnecessary movements to improve efficiency and reduce worker fatigue.[cite: 1760]
Question 14
Read the passage carefully:
An FMCG company launched refill packs at lower prices to reduce plastic waste and make products affordable for rural consumers.
Which business objective is mainly reflected?
✅ Correct Answer: Social objective
Explanation: The company is focusing on environmental sustainability and consumer welfare, which are social objectives.[cite: 1770]
Question 15
Which of the following situations BEST reflects "formal organisation"?
✅ Correct Answer: Official reporting relationships defined by management
Explanation: Formal organisation refers to officially established authority and communication relationships.[cite: 1778]
Question 16
A company provided additional incentives to employees who exceeded sales targets. Which element of directing is being used?
✅ Correct Answer: Motivation
Explanation: Incentives encourage employees to perform better and are part of motivation.[cite: 1786]
Question 17
A firm increased production capacity expecting high future demand, but demand suddenly fell due to economic slowdown. Which limitation of planning is highlighted?
✅ Correct Answer: Planning cannot eliminate dynamic changes
Explanation: External factors like economic slowdown can affect plans despite careful forecasting.[cite: 1795]
Question 18
Which of the following BEST distinguishes "authority" from "responsibility"?
✅ Correct Answer: Authority can be delegated; responsibility cannot be avoided.
Explanation: Managers may delegate authority, but ultimate responsibility remains with them.[cite: 1803]
Question 19
A company focused only on profit maximisation and ignored employee welfare and environmental concerns. Which concept is MOST likely to suffer in the long run?
✅ Correct Answer: Business sustainability
Explanation: Ignoring social and ethical responsibilities can damage long-term reputation and survival of the business.[cite: 1812]
Question 20
Which statement correctly explains the relationship between planning and controlling?
✅ Correct Answer: Planning sets standards, while controlling measures actual performance against those standards.
Explanation: Planning and controlling are closely connected because controlling evaluates performance based on planned standards.[cite: 1820]
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