Please refer to Chapter 7 Directing MCQ Class 12 Business Studies with answers below. These multiple-choice questions have been prepared based on the latest NCERT book for Class 12 Business Studies. Students should refer to MCQ Questions for Class 12 Business Studies with Answers to score more marks in Grade 12 Business Studies exams. Students should read the chapter Directing and then attempt the following objective questions.

MCQ Questions Class 12 Business Studies Chapter 7 Directing

The Directing MCQ Class 12 Business Studies provided below covers all important topics given in this chapter. These MCQs will help you to properly prepare for exams.

 Question Informal communication is also called:-
(a) Wheel communication
(b) Grapevine
(c) Verbal
(d) Visual

Question  ____________ is the process of exchanging information and understanding between two or more persons.
(a) Directing
(b) Leadership
(c) Communication
(d) Motivation

Question. Directing takes place at _______ levels of management.
(a) Top
(b) Middle
(c) Lower
(d) All

Question. Identify the style of leadership in which the superior uses file forces from within the groups in order to establish control.
(a) Autocratic leadership
(b) Democratic leadership
(c) Laissez-faire leadership
(d) Authoritarian leadership

Question. Om Limited adopts a systematic performance appraisal system which provides opportunity to employees to improve their skills and be promoted to the higher level jobs. Identify the type of incentive being adopted by the company.
(a) Employee recognition programme
(b) Organisational climate
(c) Career advancement opportunities
(d) Job security

Question. Which one of the following is an element of directing?
(a) Delegating authority
(b) Designing organisation structure
(c) Communication
(d) Designing control system

Question. Motivation is not
(a) a complex process.
(b) related to satisfaction.
(c) an easy process.
(d) a goal-directed behaviour.

Question. Identify the correct sequence of steps involved in the motivation process.
(a) Tension, drives, search behaviour, unsatisfied need, satisfied behaviour, reduction of tension
(b) Unsatisfied need, tension, drives, search behaviour, satisfied behaviour, reduction of tension
(c) Drives, search behaviour, unsatisfied need, tension, satisfied behaviour, reduction of tension
(d) Search behaviour, reduction of tension, unsatisfied need, tension, drives, satisfied behaviour

Question. Formal communication may take place between
(a) Superior and subordinate
(b) Subordinate and superior
(c) Two managers at the same level
(d) All of the above

Question. __________ is the process of stimulating people to engage in goal-directed behaviour.
(a) Communication
(b) Motivation
(c) Directing
(d) None of these

Question. The channel of communication which is transmitted through informal channels is called _____________.
(a) Horizontal communication
(b) Formal communication
(c) Grapevine
(d) Gang plank

Question. As the general manager of an e-commerce company, Gagan maintains good interpersonal relations with followers and also motivates them to contribute for y ‘ achieving organisational goals. Identify the concept being described in the above lines.
(a) Supervision
(b) Communication
(c) Determination
(d) Leadership

Question. On joining Foster Public School as a Physical Education teacher, Vikram realised that he did not have any freedom to introduce any changes in the sports activities being : carried out in the school. Identify the incentive which was being ignored by the school.
(a) Organisational climate
(b) Job security
(c) Career advancement opportunities
(d) Employee recognition program

Question. Need hierarchy theory of motivation has been given by
(a) Maslow.
(b) Fayol.
(c) Taylor.
(d) Koontz.

Question. Which one of the following is not a financial incentive?
(a) Bonus
(b) Provident Fund
(c) Co-partnership
(d) Challenging job

Question. It refers to all measures which are used to motivate people to improve performance,
(a) Leadership
(b) Motivation
(c) Incentives
(d) Communication

Question. It means the process of making subordinates to act in a desired manner to achieve certain organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

Question. ___________ aims at instructing, guiding, motivating people to achieve the desired results.
(a) Communication
(b) Directing
(c) Motivating
(d) Organising

Question. ___________ is the process of converting a message into symbols.
(a) Encoding
(b) Decoding
(c) Coding
(d) Both (b) and (c)

Question. Which of the following is not an element of directing?
(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

Question. It is very difficult to detect the source of such communication.
(a) Upward communication
(b) Vertical communication
(c) Lateral communication
(d) Informal communication

Question. Which of the following is an example of Non-financial incentives?
(a) Recognition
(b) Job Security
(c) Status
(d) All of the above

Question. Status comes under the following type of barriers
(a) Psychological barrier
(b) Semantic barrier
(c) Non Semantic barrier
(d) Organisational barrie

Question. Which one of the following is a non-financial incentive?
(a) Recognition
(b) Perquisite
(c) Retirement benefit
(d) Stock option

Question. Leadership is based on a superior’s
(a) authority.
(b) responsibility.
(c) accountability.
(d) persuasive communication.

Question. The process of converting the message into communication symbols is known as
(a) Decoding
(b) Encoding
(c) Feedback
(d) Media

Question. Which of the following is a function of a supervisor?
(a) Accounting
(b) Staffing
(c) Ensures performance of work
(d) Planning

Question. Under which style of leadership there is no delegation of authority?
(a) Democratic
(b) Autocratic
(c) Laissez Faire
(d) None of the above

Question: Ashutosh works as a manager in Kuber Ltd. Besides the salary, the company offers him benefits such as free housing, medical aid and education to the children, etc. Identify the type of incentive being offered to him.
(a) Perquisites
(b) Job Enrichment
(c) Co-partnership
(d) Pay and allowances

Question. Encoding is related to
(a) converting message into symbols.
(b) converting symbols into message.
(c) transmitting message.
(d) receiving symbols.

Question. Grapevine is a form of
(a) formal communication.
(b) channel of communication.
(c) informal communication.
(d) barrier to communication.

Question: It means the process of making subordinates to act in a desired manner to achieve certain organisational goals.
(a) Supervision
(b) Communication
(c) Leadership
(d) Motivation

Question: On the occasion of the Founders Day of the firm, Veena was felicitated with the certificate of best performer as a Business Development Manager. Identify the type of incentive being described in the above lines.
(a) Career advancement opportunities
(b) Employee recognition program
(c) Organisational climate
(d) Job security

Question: Which of the following is not a feature of leadership?
(a) It shows ability of an individual to influence others.
(b) It leads to achievement of organisational goals.
(c) Leadership is one-time process.
(d) It leads to desired change in the organisation.

Question: Which of the following is not an element of directing?
(a) Supervision
(b) Communication
(c) Leadership
(d) Inspection

Question. Which one of the following is a semantic barrier?
(a) Organisational policy
(b) Lack of attention
(c) Technical jargon
(d) Status

Question. Directing flows in ____________ direction.
(a) Upward
(b) Downward
(c) Diagonal
(d) Both (a) and (c)

Question. Which one of the following is a non-financial incentive?
(a) Recognition
(b) Perquisite
(c) Retirement benefit
(d) Stock option

Question. Which one of the following is an element of directing?
(a) Delegating authority
(b) Designing organisation structure
(c) Communication
(d) Designing control system

Question: Mohit recently got a raise in his salary due to annual increment. Which of his human needs is being satisfied through this?
(a) Security Needs
(b) Belonging Needs
(c) Self Actualisation Needs
(d) Basic Physiological Needs

Question: Effective motivation in the organisation does not contribute towards
(a) Developing performance levels of employees
(b) Helping to reduce employee turnover
(c) Resistance to changes in the organisation
(d) All of the above

Question Which of the following is not a characteristic of directing?
(a) Directing initiate action
(b) It is a continuous process
(c) Flows from top to bottom
(d) Ensuring order & discipline

Question Which of the following is not a feature of motivation?
(a) It is an integral feeling
(b) Reduces absenteeism
(c) Complex process
(d) Can be positive or negative

Question. Suman works as a Project Co-ordinator in an export house. Whenever the workload is high, she is able to convince her team by explaining to them the purpose, providing training and motivating them with additional rewards so as to be able to win their wholehearted co-operation. Identify the element of directing being described in the above lines.
(a) Supervision
(b) Motivation
(c) Leadership
(d) Communication

Question. Lateral communication takes place from
(a) First to second division of the same organisattion
(b) Superior to subordinate
(c) Subordinate to superior
(d) All of the above

Case Based MCQs :

Direction Read the following text and answer the question no. (i) to (vi) on the basis of the same.
EDC Ltd is a highly reputed company and many people want to join this company. The employees of this company are motivated and happy by the working of the company. The employees are rewarded in a way that it creates a feeling of ownership among them and at the same time, make them contribute towards the growth of the organisation.
Bishnoi, seeing the immense growth opportunities started reaching out to the employees of this company to understand how can he get an offer from the company. On enquiring, Aayush said that he was introduced by the present marketing manager, Mr Joe. Tushar said that he was directly recruited from IIM, Banglore from where he was about to complete his MBA.
Bishnoi also got to know an interesting fact about the company that the production target of the company is usually achieved with production ranging from 220-230 units per day.

Question. “The production target of the company is usually achieved with production ranging from 220-230 units per day.” Through which function, company establishes the aforementioned fact?
(a) Planning
(b) Staffing
(c) Directing
(d) Organising

Question. Through which way of recruitment, Aayush was recruited?
(a) Campus placement
(b) Advertisement
(c) Recommendation from present employees
(d) Placement agencies

Question. Which incentive is being highlighted in the lines, “The employees of this company are motivated and happy by the working of the company.
The employees are rewarded in a way that it creates a feeling of ownership among them and at the same time, makes them contribute towards the growth of the organisation”?
(a) Pay and allowances
(b) Stock option
(c) Profit sharing
(d) Bonus

Question. Through which way of recruitment, Tushar was recruited?
(a) Campus placement
(b) Advertisement
(c) Recommendation from present employees
(d) Placement agencies

Question. Which type of motivational incentive is provided by the company to the employees?
(a) Financial incentive
(b) Non-financial incentive
(c) Both (a) and (b)
(d) None of the above

Question. Which importance of motivation is highlighted in the case?
(a) It helps to improve the performance level of employees
(b) It helps to change negative attitude of employees
(c) It helps to reduce employee turnover
(d) None of the above

Direction Read the following text and answer the question no. (i) to (vi) on the basis of the same.
Babita Malhotra was promoted to the post of production manager recently. Mr. Lalit Arora, general manager, was quite confident that she would be able to handle the department well. She worked as a link between management and workers to remove the misunderstandings, conflicts and brought some reforms in the department. She gave flexible working hours to the employees and paid wages at a higher price rate to those who achieved their targets and low wages to those employees who could not achieve their targets.
To make the job environment better, she decided to redefine the workplace by designing jobs having greater variety of content. She established various committees and regularly took the suggestions of the employees to improve the overall functioning of the business. She believed in the transparency in operations and to address the concerns of the employees, she arranged a suggestion box. Her efforts did not go waste and within few months the company’s growth rate was almost double.

Question. Identify one importance of directing focused in the above case study.
(a) Directing helps to initiative action.
(b) Directing helps to bring stability and balance in the organisation.
(c) Directing integrates employees’ efforts in the organisation.
(d) Directing facilitates introduction of needed changes in the organisation.

Question. Identify the feature of motivation highlighted in the above case study.
(a) It is an internal feeling.
(b) It can be either positive or negative.
(c) It is a complex process.
(d) It is a voluntary process.

Question. On the basis of the case study, identify the kind of leadership style which Babita Malhotra followed.
(a) Bureaucratic
(b) Democratic
(c) Free-Rein
(d) Autocratic

Question. Which need of employees is satisfied in the given case?
(a) Self-actualisation
(b) Esteem
(c) Security
(d) None of these

Question. Which function of management is highlighted in the given case?
(a) Planning
(b) Organising
(c) Staffing
(d) Directing

Question. Which type of motivation is highlighted in above case?
(a) Status
(b) Employee recognition
(c) Job security
(d) Bonus

Direction Read the following text and answer the question no. (i) to (vi) on the basis of the same.
Mr. Sunil Diali is a safety officer in a reputed PSU sector ECL. He supervises the workers towards the predetermined goals of the organisation and directs how to eradicate unsafe practices of inundation, fire breakouts, existence of inflammable gases etc. On one such instances, there was huge fire breakout in the underground mines and the workers morale was down and demotivated because of several risk hazards.
Mr. Diali observed the whole situation and consulted with all his workers and constantly monitored, guided and inspired them to integrate their efforts and accept the situation as a challenge and take adequate safety measures for fire extinguish and subsidising its effects. Thereby, production turnover was outstanding and out performed other subsidiaries. Mr. Diali was recognised with bravery award from CIL.

Question. Mr. Diali worked towards predetermined goals of the organisation. Which important function of directing is addressed here?
(a) Means of motivation
(b) Initiates action
(c) Facilitate change
(d) Brings stability

Question. Mr. Diali consulted with all his workers, he listened to their opinions. Which form of leadership is identified here?
(a) Laissez-faire
(b) Autocratic
(c) Democratic
(d) Free-rein

Question. Bravery award is ……… form of non-financial incentive.
(a) status
(b) job security
(c) career advancement
(d) employee recognition

Question. Under Maslow’s hierarchy need theory, which need of Mr. Diali has been met through respect and recognition among other employees?
(a) Self–actualisation need
(b) Safety and security needs
(c) Esteem needs
(d) Physiological needs

Question. Which element of directing is highlighted above?
(a) Supervision
(b)Motivation
(c) Leadership
(d) Communication

Question. Which type of incentive is received by Mr. Diali for his bravery?
(a) Financial
(b) Non-financial
(c) Both (a) and (b)
(d) None of these

We hope you liked the above Directing MCQ Class 12 Business Studies. In case you have any questions please put them in the comments box below and our teachers will provide you a response.