Question 1
Which of the following best explains "efficiency" in management?
✅ Correct Answer: Achieving goals with minimum resource wastage
Explanation: Efficiency means using resources optimally while reducing cost, time, and effort in achieving objectives.[cite: 10]
Question 2
Which function of management is concerned with selecting the right person for the right job?
✅ Correct Answer: Staffing
Explanation: Staffing involves recruitment, selection, training, and placement of employees.[cite: 10]
Question 3
Which principle of Fayol states that organisational interest should be given priority over individual interest?
✅ Correct Answer: Subordination of Individual Interest to General Interest
Explanation: According to Fayol, organisational goals must prevail over personal interests of employees.[cite: 10]
Question 4
Which of the following is NOT a characteristic of business environment?
✅ Correct Answer: Static and predictable
Explanation: Business environment changes continuously due to economic, technological, and social factors; it is dynamic, complex, and relative.[cite: 10]
Question 5
Which type of communication flows from subordinate to superior?
✅ Correct Answer: Upward communication
Explanation: Upward communication includes reports, feedback, and suggestions sent by subordinates to superiors.[cite: 10]
Question 6
A company introduced barcode tracking to monitor inventory movement and reduce stock shortages. Which management function is MOST directly improved?
✅ Correct Answer: Controlling
Explanation: Inventory tracking helps monitor actual stock levels against desired standards, which improves controlling operational efficiency.[cite: 10]
Question 7
The sales manager divided sales targets among team members according to their abilities and territories. Which principle of organising is reflected?
✅ Correct Answer: Division of work
Explanation: Division of work improves efficiency by assigning specialised tasks according to specific employee abilities.[cite: 10]
Question 8
A company promoted an experienced employee to a higher position instead of hiring from outside. Which merit of internal recruitment is highlighted?
✅ Correct Answer: Lower training cost
Explanation: Existing employees are already familiar with organisational procedures, significantly reducing overall training requirements.[cite: 10]
Question 9
Which element of marketing mix determines how products reach customers?
✅ Correct Answer: Place
Explanation: "Place" refers to distribution channels and methods used to make products readily available to end consumers.[cite: 10]
Question 10
A company advertised a fairness cream claiming guaranteed skin whitening within two days, which later proved false. Which consumer right is violated?
✅ Correct Answer: Right to be informed
Explanation: False or misleading advertisements violate consumers' fundamental right to accurate, objective product information.[cite: 10]
Question 11
Assertion (A): Planning provides direction to managerial actions.
Reason (R): Planning clearly states what is to be achieved and how it will be achieved.
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Planning defines objectives and methods explicitly, directly guiding all downstream managerial decisions and execution pathways.[cite: 10]
Question 12
Assertion (A): Informal organisation is created intentionally by management.
Reason (R): Informal organisation develops from social interactions among employees.
✅ Correct Answer: A is false, but R is true.
Explanation: Informal organisation arises naturally from socio-interpersonal employee relationships and is never officially mandated or created by corporate managers.[cite: 10]
Question 13
Read the following case carefully:\nA factory manager carefully studied the time taken by workers to complete a task and fixed a standard time for production activities. Which scientific management technique is being used?
✅ Correct Answer: Time study
Explanation: Time study is used to determine the exact standard time required to perform an assigned structural task efficiently. (Commonly confused with method study).[cite: 10]
Question 14
Read the passage carefully:\nAn automobile company introduced electric vehicles, reduced carbon emissions, and invested in road safety awareness campaigns. Which objective of management is MOST clearly highlighted?
✅ Correct Answer: Social objective
Explanation: Environmental protection, carbon tracking, and public awareness campaigns are major facets of social responsibility frameworks.[cite: 10]
Question 15
Which of the following situations BEST reflects "delegation"?
✅ Correct Answer: A manager assigning authority to a subordinate for completing a task
Explanation: Delegation explicitly involves the downward transfer of authority and task-oriented responsibility from a superior to a designated subordinate.[cite: 10]
Question 16
A manager motivates employees by appreciating good work publicly and involving them in important discussions. Which element of directing is mainly used?
✅ Correct Answer: Leadership
Explanation: Leadership functions as an influence model that actively drives employee morale, engagement confidence, and shared alignment.[cite: 10]
Question 17
A company achieved high profits by reducing product quality and ignoring customer complaints. Which business objective is likely to suffer in the long run?
✅ Correct Answer: Consumer satisfaction and goodwill
Explanation: Sacrificing item quality severely compromises end-user retention, directly destabilizing long-term market reputation and brand valuation.[cite: 10]
Question 18
Which of the following BEST distinguishes "centralisation" from "decentralisation"?
✅ Correct Answer: Centralisation concentrates authority at top level; decentralisation distributes authority across levels.
Explanation: Centralisation keeps executive power locked at the apex level, while decentralisation structures decision-making networks across multiple managerial tiers.[cite: 10]
Question 19
Which of the following is the BEST example of "secondary market"?
✅ Correct Answer: Trading existing shares on stock exchange
Explanation: While the primary market is for fresh issues, the secondary market facilitates secondary transactions of already-issued financial instruments among public investors.[cite: 10]
Question 20
A company forecasted future demand, arranged resources, recruited employees, motivated staff, and regularly checked performance standards. Which characteristic of management is BEST reflected here?
✅ Correct Answer: Management is a series of continuous interrelated functions
Explanation: Management operates as a continuous, unified cycle where planning, organising, staffing, directing, and controlling processes constantly interact.[cite: 10]
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