Question 1
Which of the following is the correct meaning of "coordination" in management?
✅ Correct Answer: Synchronising individual and departmental efforts toward common goals [cite: 6]
Explanation: Coordination integrates activities of different individuals and departments to achieve organisational objectives efficiently[cite: 8].
Question 2
Which function of management helps in improving employee morale through proper guidance and motivation?
✅ Correct Answer: Directing [cite: 14]
Explanation: Directing includes supervision, leadership, communication, and motivation to guide employees effectively[cite: 16].
Question 3
Which principle of Fayol suggests that managers should minimize employee turnover?
✅ Correct Answer: Stability of tenure of personnel [cite: 22]
Explanation: Employees perform better when job security and stability are maintained within the organisation[cite: 24].
Question 4
Which of the following is an example of a "policy" in planning?
✅ Correct Answer: Rule that all customer complaints must be resolved within 48 hours [cite: 30]
Explanation: Policies provide broad guidelines for decision-making in recurring situations[cite: 32].
Question 5
Which market provides liquidity and marketability to existing securities?
✅ Correct Answer: Secondary market [cite: 38]
Explanation: Secondary market enables investors to buy and sell existing securities easily[cite: 40].
Question 6
A company introduced flexible working hours to reduce employee stress and improve productivity. Which objective of management is mainly addressed?
✅ Correct Answer: Personal objective [cite: 47]
Explanation: Personal objectives focus on employee satisfaction, welfare, and work-life balance[cite: 49].
Question 7
The production department blamed the purchase department for shortage of raw materials, while the purchase department blamed suppliers. Which management concept is MOST needed?
✅ Correct Answer: Coordination [cite: 56]
Explanation: Coordination ensures harmony among departments and reduces conflicts affecting organisational performance[cite: 58].
Question 8
A company used social media influencers to promote its new product launch. Which element of marketing mix is highlighted?
✅ Correct Answer: Promotion [cite: 64]
Explanation: Promotion includes advertising, sales promotion, and publicity to increase product awareness[cite: 66].
Question 9
A manager closely supervises employees, takes all decisions alone, and expects strict obedience. Which leadership style is being followed?
✅ Correct Answer: Autocratic [cite: 72]
Explanation: Autocratic leadership centralises authority and decision-making with the leader[cite: 74].
Question 10
A customer purchased a sealed food packet containing harmful insects. Which consumer right is violated MOST directly?
✅ Correct Answer: Right to safety [cite: 80]
Explanation: Consumers have the right to protection against hazardous and unsafe products[cite: 82].
Question 11
Assertion (A): Delegation helps in developing managerial skills among subordinates.
Reason (R): Subordinates get opportunities to take decisions and handle responsibilities.
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A. [cite: 89]
Explanation: Delegation builds confidence and decision-making ability among employees through practical exposure[cite: 91].
Question 12
Assertion (A): Planning is free from limitations.
Reason (R): Planning cannot prevent unexpected external changes.
✅ Correct Answer: A is false, but R is true. [cite: 98]
Explanation: Planning has limitations because future uncertainties and external factors can affect outcomes[cite: 100].
Question 13
Read the following case carefully:
A company analysed worker movements in the packaging department and removed unnecessary actions to reduce fatigue and improve efficiency. Which scientific management technique is being applied?
✅ Correct Answer: Motion study [cite: 108]
Explanation: Motion study identifies and eliminates unnecessary movements to improve productivity[cite: 110]. Students often confuse it with time study.
Question 14
Read the passage carefully:
A retail company established complaint-handling counters, offered transparent billing, and replaced defective products without delay. Which consumer right is MOST clearly supported by the company?
✅ Correct Answer: Right to seek redressal [cite: 118]
Explanation: The company provides remedies and compensation for defective products and consumer complaints[cite: 120].
Question 15
Which of the following BEST distinguishes "formal organisation" from "informal organisation"?
✅ Correct Answer: Formal organisation is based on official relationships, while informal organisation develops socially. [cite: 126]
Explanation: Formal organisation is deliberately created by management, whereas informal organisation develops naturally among employees[cite: 128].
Question 16
A company gave higher authority to branch managers for quicker customer service decisions. Which benefit of decentralisation is highlighted?
✅ Correct Answer: Faster managerial decisions [cite: 134]
Explanation: Decentralisation speeds up decisions by empowering managers at lower levels[cite: 136].
Question 17
A business firm reduced product prices heavily to increase sales volume, but profits declined sharply due to rising costs. Which concept should management analyse MOST carefully?
✅ Correct Answer: Balance between sales volume and profitability [cite: 143]
Explanation: Managers must balance pricing strategies with profitability and cost management for long-term success[cite: 145].
Question 18
Which of the following BEST differentiates "recruitment" from "selection"?
✅ Correct Answer: Recruitment is positive process; selection is negative process. [cite: 151]
Explanation: Recruitment invites applications from candidates, while selection eliminates unsuitable applicants[cite: 153].
Question 19
Which of the following is the BEST example of "economic planning premise"?
✅ Correct Answer: Forecast regarding inflation rate next year [cite: 160]
Explanation: Economic forecasts like inflation rates are assumptions used while preparing business plans[cite: 162].
Question 20
A company forecasted demand, organised resources, trained employees, motivated staff, and monitored performance continuously. Which characteristic of management is reflected MOST clearly?
✅ Correct Answer: Management is multidimensional and continuous [cite: 169]
Explanation: Management involves several interconnected functions performed continuously across all organisational activities[cite: 171].
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