Please refer to Chapter 1 Nature and Significance of Management 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 Nature and Significance of Management and then attempt the following objective questions.

MCQ Questions Class 12 Business Studies Chapter 1 Nature and Significance of Management

The Nature and Significance of Management 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. Which is not a function of Management of the following?
(a) Planning
(b) Controlling
(c) Cooperating.
(d) Staffing.

Question. Management is a
(a) science
(b) an art
(c) both science and art
(d) neither

Question. Irfan Khan and Naseeruddin Shah, both got training from National School of Drama, New Delhi but they perform differently. Which feature of art is associated with the above fact?
(a) Based on practice and creativity
(b) Universal validity
(c) Existence of theoretical knowledge
(d) Personalised application

Question. Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Question. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Question. Earning profit is essential to cover the costs, survival and growth. Which objective of the management has been referred here?
(a) Social objective
(b) Organizational objective
(c) Personnel objective
(d) Individual objective

Question. Nestle manufactures its products by using environment friendly methods of production. It is referred to ______ of the management.
(a) Individual objective
(b) Organisational objective
(c) Social objective
(d) Economic objective

Question. ‘Thinking before doing’, under which function of management is this performed?
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question. ‘Arrangement of various resources for achieving Target, under which function of management is this performed
(a) Controlling
(b) Directing
(c) Organising
d) Planning

Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. Coordination is
(a) Function of management
(b) The essence of management
(c) an objective of management
(d) none of the above

Question. Which of the following is not a function of management?
(a) Planning
(b) Staffing
(c) Cooperating
(d) Controlling

Question. The process of getting work done through others is known as
(a) effectiveness
(b) efficiency
(c) management
(d) planning

Question. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Question. Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
(c) Coordination is equally important at all levels of
(d) None of these

Question. Setting Objective is a function of:-
(a) Middle level management
(b) Operational level management
(c) Top level Management
(d) None of the above

Question. ‘It is generally seen that individuals in an organisation resist change as it often means moving from a familiar, secure environment into a newer and more challenging one’. Which point of importance of management has been discussed here?
(a) Management helps in achieving personal objectives
(b) Management helps in achieving group goals
(c) Management helps in the development of society
(d) Management creates dynamic organisation

Question. “The effect of management is noticeable in an organisation where targets are met according to plans, employees are happy and satisfied”. Which characteristic of management is highlighted in the above statement?
(a) Group activity
(b) Dynamic function
(c) Intangible force
(d) Continuous process

Question. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?
(a) Efficient
(b) Effective
(c) Efficient and Effective
(d) Inefficient

Question. What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Question. The following is not an objective of management
(a) earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Question. Coordination is
(a) Function of management
(b) The essence of management
(c) an objective of management
(d) none of the above

Question. At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Question. ‘Thinking before doing’, under which function of management is this performed?
(a) Controlling
(b) Directing
(c) Organising
(d) Planning

Question. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Question. Which of the following is true?
(a) Coordination is not equally important at all levels of management
(b) Coordination has no importance
c) Coordination is equally important at all levels of
(d) None of these

Question. What out of the following has been called the essence of management?
(a) Communication
(b) Coordination
(c) Supervision
(d) Leadership

Question. The following is not an objective of management
(a) Earning profits
(b) growth of the organisation
(c) providing employment
(d) policy making

Question. “It involves leading, influencing and motivating the employees to perform the assigned task”, highlighted one of the functions of management. Identify
(a) Staffing
(b) Planning
(c) Directing
(d) Controlling

Question. “Deciding in advance what is to be done, how it is to be done, when it is to be done”, highlights which
function of the management?
(a) Organising
(b) Planning
(c) Directing
(d) Controlling

Question. Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

Question. Management ensures:
(a) Providing employment opportunities
(b) Maintaining profit
(c) Ensuring maximum utilisation of resources
(d) Control on cost

Question. Match the functions of management with their respective examples: Function of management Examples
1. Planning A. Conform actual results with planned results
2. Organizing B. Bridge the gap where we are and where we want to go
3. Staffing C. Establishing authority responsibility relationship
4. Directing D. Right people for the right job
5. Controlling E. Putting resources into action Identify the correct option:
(a) 1-A, 2-E, 3-D, 4-B, 5-C
(b) 1-A, 2-E, 3-C, 4-B,5-D
(c) 1-B, 2C, 3-D 4-E,5-A
(d) 1-C, 2-D, 3-A, 4-E,5-B

Question. Which of the following is a cost benefit analysis?
(a) Effectiveness
(b) Efficiency
(c) Both
(d) None of the above

Question. Mr. Anil, who was an employee in Zebra Cosmetics Limited was able to produce the goods in time but at higher cost. Mr. Anil was
(a) effective only
(b) efficient only
(c) effective but inefficient
(d) neither effective nor efficient

Question. “Mr. Gosain, the owner of “Stylish Garments” got a wholesale order of 600 party gowns. He completed the production without paying extra bonus but could not deliver the gowns imely to the wholesaler and thus the order was cancelled.
(a) Mr. Gosain is effective but inefficient
(b) Mr. Gosain is efficient but not effective
(c) Mr. Gosain is neither effective nor efficient
(d) Mr. Gosain is both effective as well as efficient

Question. McDonald introduced Mc Aloo Tikki to survive in Indian market.’’ Which feature of management is described here?
(a) Group activity
(b) Dynamic function
(c) Multidimensional
(d) Continuous process

Question. “Management has to adapt itself according to the changing environment”. Which characteristic of management is highlighted in the above statement?
(a) Continuous process
(b) Group activity
(c) Dynamic function
(d) Goal oriented

Question. Whose speciality happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these

Question. At what level of management does the Chief Executive Officer operate?
(a) Top-level
(b) Middle-level
(c) Lower-level
(d) None of these

Question. “An organisation is a collection of diverse individuals having different needs who work in team with coordination in common direction.” Which feature of management has been highlighted here?
(a) Management is goal oriented
(b) Management is a group activity
(c) Management is a pervasive function
(d) Management is a continuous process

Question. The following is not an objective of management:
(a) Earning profits
(b) Growth of the organisation
(c) Providing employment
(d) Policy making

Question. Kotak Mahindra believes in harnessing the potentials of the individuals working in their company by doing so, the company wants to achieve ______.
(a) Social objective
(b) Personnel objective
(c) Organisational objective
(d) Economic objective

Question. Google and Microsoft make the provision of crèche, laundry, gym, and entertainment facilities for their employees, which objective of management is achieved by the management?
(a) Social objective
(b) Personnel objective
(c) Organisational objective
(d) Economic objective

Question. Educational qualification is the pre-requisite to enter a profession. Which of the following feature is revealed in the above statement?
(a) Restricted entry
(b) Ethical code of conduct
(c) Professional association
(d) Well defined body of knowledge

Question. Whose specialty happens to be ‘personal skill’?
(a) Profession
(b) Art
(c) Science
(d) None of these

Question. ‘Arrangement of various resources for achieving Target, under which function of management is this performed
(a) Controlling
(b) Directing
(c) Organising
d) Planning

Question. Under what function of management does the ‘corrective action’ fall?
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. Setting Objective is a function of :-
a. Middle level management
b. Operational level management
c. Top level Management
d. None of the above

Question. Which one of the following sequence of process of management is correct:
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

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