Question 1
Which of the following best defines "planning premises"?
✅ Correct Answer: Assumptions about future conditions on which plans are based
Explanation: Planning premises are forecasts and assumptions regarding future market conditions, policies, and economic factors .
Question 2
Which function of management is concerned with arranging resources in a structured manner?
✅ Correct Answer: Organising
Explanation: Organising involves arranging tasks, resources, and authority relationships systematically .
Question 3
Which principle of management states that "there should be one head and one plan for a group of similar activities"?
✅ Correct Answer: Unity of Direction
Explanation: Unity of direction ensures all similar activities move toward the same organisational objective .
Question 4
Which of the following is NOT a feature of delegation?
✅ Correct Answer: Complete transfer of responsibility from superior to subordinate
Explanation: Responsibility can be delegated partially, but ultimate accountability always remains with the superior .
Question 5
Which type of plan specifies the exact sequence of actions for performing routine activities?
✅ Correct Answer: Procedure
Explanation: Procedures provide step-by-step chronological guidance for handling recurring organisational tasks .
Question 6
A company analysed customer complaints and discovered delays in product delivery. Management then improved logistics and tracking systems. Which management function is MOST clearly reflected after identifying the problem?
✅ Correct Answer: Controlling
Explanation: Controlling involves identifying procedural deviations and taking proactive corrective actions to improve performance .
Question 7
A manager encourages employees to suggest ideas for reducing production cost and rewards useful suggestions. Which principle of Fayol is applied here?
✅ Correct Answer: Initiative
Explanation: The principle of initiative promotes frontline employee participation, engagement, and innovative thinking frameworks .
Question 8
A company recruits employees through newspaper advertisements and online job portals. Which source of recruitment is being used?
✅ Correct Answer: External source
Explanation: External recruitment fields applications from talents outside the organisation boundaries via channels like portals and advertisements .
Question 9
Which element of directing ensures that employees understand organisational goals and instructions properly?
✅ Correct Answer: Communication
Explanation: Communication acts as the core channel for sharing clean corporate information, workflows, and feedback loops across tiers .
Question 10
A consumer purchased a mobile phone that stopped working within two days, but the company refused replacement despite warranty coverage. Which consumer right is violated?
✅ Correct Answer: Right to seek redressal
Explanation: Consumers retain a statutory legal right to obtain fast compensation, repairs, or full item replacement for defective goods .
Question 11
Assertion (A): Decentralisation helps in developing initiative among managers at lower levels.
Reason (R): Lower-level managers get authority to make decisions independently.
✅ Correct Answer: Both A and R are true, and R is the correct explanation of A.
Explanation: Decentralisation actively empowers lower-level managers, improving operational confidence and localized structural decision-making capacities .
Question 12
Assertion (A): Formal communication is always faster than informal communication.
Reason (R): Informal communication spreads information quickly through social networks.
✅ Correct Answer: C is false, but R is true.
Explanation: Informal channels spread news significantly faster because they bypass official scalar documentation steps completely .
Question 13
Read the following case carefully:
A manufacturing firm carefully examined various methods of assembling products and selected the most efficient process to reduce wastage and improve speed. Which scientific management technique is being used?
✅ Correct Answer: Method study
Explanation: Method study aims to locate and design the singular best sequence of operations to optimize resource output and minimize costs .
Question 14
Read the passage carefully:
A company manufacturing packaged juices introduced recyclable bottles, reduced sugar content, and provided nutrition awareness campaigns in schools. Which business objective is MOST prominently reflected?
✅ Correct Answer: Social objective
Explanation: Managing ecological resource footprints and hosting health awareness programs fit cleanly under core social goals .
Question 15
Which of the following BEST represents "financial planning"?
✅ Correct Answer: Estimating capital requirements and sources of funds
Explanation: Financial planning pre-determines quantum limits of cash required and sequences optimal long/short-term funding resource avenues .
Question 16
A company noticed employees resisting new technology because they feared job loss. Which element of directing should management use MOST effectively?
✅ Correct Answer: Motivation and communication
Explanation: Open information streams and empathetic psychological incentives dissolve change-resistance behaviors effectively .
Question 17
A business firm achieved high sales through aggressive advertising, but customer complaints increased due to poor product quality. Which area requires immediate managerial attention?
✅ Correct Answer: Balancing promotion with product quality
Explanation: Advertising scale yields zero brand equity value if item baseline utility parameters crash; both forces must remain balanced .
Question 18
Which of the following BEST differentiates "authority" from "responsibility"?
✅ Correct Answer: Authority flows downward; responsibility arises from assigned duties.
Explanation: Authority provides matching deployment powers flowing from hierarchy heights, while responsibility acts as an obligatory operational debt .
Question 19
Which of the following is the BEST example of "internal source of recruitment"?
✅ Correct Answer: Promotion of existing employee
Explanation: Internal avenues draw from existing payroll assets through actions like parallel transfers or upward role promotions .
Question 20
A company forecasted future demand, prepared budgets, assigned duties, motivated employees, and compared actual performance with standards regularly. Which statement BEST describes management here?
✅ Correct Answer: Management is a coordinated series of interrelated functions
Explanation: Management operates as an adaptive loop where distinct components cycle continuously to ensure objective execution benchmarks .
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