Business Studies MCQs for Class 12 with Answers Chapter 5 Organising (2022)

Free PDF Download of CBSE Business Studies Multiple Choice Questions for Class 12 with Answers Chapter 5 Organising. Business StudiesMCQs for Class 12 Chapter Wise with Answers PDF Download was Prepared Based on Latest Exam Pattern. Students can solve NCERT Class 12 Business Studies Organising MCQs Pdf with Answers to know their preparation level.

Organising Class 12 Business Studies MCQs Pdf

1. Name the process which co-ordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives,
(a) Management
(b) Planning
(c) Organising
(d) Directing

Answer

Answer: c

2. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above

Answer

Answer: d

3. It is defined as the framework within which managerial and operating tasks are performed.
(a) Span of management
(b) Organisational structure
(c) Informal organisation
(d) None of the above

Answer

Answer: b

4. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above

Answer

Answer: c

5. As the span of management increases in an organisation, the number of levels of management in the organisation
(a) Increases
(b) Decreases
(c) Remains unaffected
(d) None of the above

Answer/Explanation

Answer: b
Explanation:
(b) because more subordinates can be effectively managed by a superior

6. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
(a) Functional structure
(b) Relational structure
(c) Divisional structure
(d) None of the above

Answer/Explanation

Answer: a
Explanation:
(a) as the people are being grouped on the basis of functions

7. Identify the type of organisational structure which facilitates occupational specialisation,
(a) Functional structure
(b) Horizontal structure
(c) Network structure
(d) Divisional structure

Answer/Explanation

Answer: a
Explanation:
(a) it emphasises on specific functions

8. Identify the type of organisational structure which makes training of employees easier, as the focus is only on a limited range of skills.
(a) Network structure
(b) Divisional structure
(c) Functional structure
(d) Matrix structure

Answer/Explanation

Answer: c
Explanation:
(c) as each employee is expected to gain proficiency with regard to one function only

9. This type of organisational structure is most suitable when the size of the organisation is large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Answer/Explanation

Answer: b
Explanation:
(b) it relates to single product companies

10. Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Answer/Explanation

Answer: a
Explanation:
(a) the divisions are created on the basis of products

11. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsiblity for performance.
(d) It is an economical structure to maintain.

Answer/Explanation

Answer: c
Explanation:
(c) it is difficult to fix responsibility for performance

12. Which of the following is not a merit of functional structure?
(a) It promotes control and co-ordination within a department.
(b) It makes training of employees easier, as the focus is only on a limited range of skills.
(c) It ensures that different products get due attention.
(d) It leads to occupational specialisation.

Answer

Answer: c

13. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

Answer

Answer: b

14. Indigo Limited has a staff of 300 people which is grouped into different departments. The organisational structure depicts that 100 people work in Production department, 150 in Finance department, 20 in Technology department and 30 in Human Resource department. Identify the type of organisational structure being followed by the company.
(a) Functional structure
(b) Divisional structure
(c) Informal structure
(d) None of the above

Answer/Explanation

Answer: a
Explanation:
(a) as people are grouped on the basis of functions

15. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.

Answer

Answer: b

16. Which of the following is not a demerit of divisional structure?
(a) It is an expensive structure to maintain, since there may be a duplication of activities across products.
(b) All functions related to a particular product are integrated in one department.
(c) Conflict may arise among different divisional heads due to different interests.
(d) Authority provided to the managers to supervise all activities related to a particular division may lead to undesirable consequences.

Answer

Answer: b

17. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of duties

Answer

Answer: b

18. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

Answer/Explanation

Answer: c
Explanation:
(c) it is a merit

19. Lakshay has been given the task of arranging for five-day conference for foreign delegates. In order to ensure smooth functioning of the event, he has made two people as co-ordinators to take care of activities related to registration and refreshment. Identify the function of management being carried out by Lakshay.
(a) Planning
(b) Staffing
(c) Organising
(d) Directing

Answer

Answer: c

20. Which of the following is not a feature of formal organisation?
(a) It specifies the relationships among various job positions.
(b) The standards of behaviour of employees are evolved from group norms.
(c) It is deliberately designed by the top management.
(d) It places less emphasis on interpersonal relationships among the employees.

Answer/Explanation

Answer: b
Explanation:
(b) it relates to informal organisation

21. Which of the following is not a merit of formal organisation?
(a) It is easier to fix responsibility for mistakes.
(b) Scalar chain of command is followed.
(c) It leads to effective achievement of organisational goals.
(d) It leads to faster spread of information and rapid feedback.

Answer/Explanation

Answer: d
Explanation:
(d) it relates to informal organisation

22. Which of the following is not a demerit of formal organisation?
(a) It may lead to procedural delays.
(b) It may lead to spreading of rumours.
(c) It emphasises on following rigidly laid down policies.
(d) It places more importance on work rather than the relationships.

Answer/Explanation

Answer: b
Explanation:
(b) it relates to informal organisation

23. Which of the following is not a feature of informal organisation?
(a) It originates from within the formal organisation.
(b) The standards of behaviour evolve from group norms.
(c) Scalar chain of command is not followed.
(d) It is deliberately created by the management.

Answer/Explanation

Answer: d
Explanation:
(d) it relates to formal organisation

24. Which of the following is not a merit of informal organisation?
(a) It leads to faster spread of information and speedy feedback.
(b) It helps to fulfill the social needs of the members.
(c) It .does not fulfill inadequacies in the formal organisation.
(d) All of the above

Answer/Explanation

Answer: c
Explanation:
(c) it does fulfill the inadequacies of formal organisation

25. Which of the following is not a demerit of informal organisation?
(a) It leads to spreading of rumours.
(b) It gives more importance to structure and work.
(c) It may restrict implementation of changes within the organisation.
(d) It puts psychological pressure on members to conform to group expectations, even if they are against the interest of organisation.

Answer/Explanation

Answer: b
Explanation:
(b) it relates to formal organisation

26. Which of the following is not an element of delegation?
(a) Responsibilty
(b) Authority
(c) Accountability
(d) Decentralisation

Answer

Answer: d

27. It arises from the established scalar chain which links the various job positions and levels of an organisation.
(b) Authority
(d) All of the above
(b) Top to bottom
(d) None of the above

Answer

Answer: b

28. The authority flows from as we go higher up in the management hierarchy.
(a) Bottom to top
(b) Decreases
(c) In all directions
(d) None of the above

Answer/Explanation

Answer: b
Explanation:
(b) a superior has authority over subordinate

29. The scope of authority _________ as we go higher up in the management hierarchy.
(a) Increases
(b) Decreases
(c) Remains same
(d) None of the above

Answer

Answer: a

30. It is the obligation of a subordinate to properly perform the assigned duty.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer

Answer: a

31. The responsibility flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer/Explanation

Answer: c
Explanation:
(c) a subordinate is responsible to his superior

32. Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above

Answer

Answer: c

33. It helps the managers to ensure that their subordinate discharges his duties properly.
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer/Explanation

Answer: c
Explanation:
(c) accountability is answerability

34. The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer/Explanation

Answer: c
Explanation:
(c) a subordinate is accountable to his superior

35. Which of the following can be delegated?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above

Answer

Answer: b

36. Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above

Answer

Answer: a

37. Authority arises from
(a) Responsibility
(b)Formal position
(c) Accountability
(d) All of the above

Answer

Answer: a

38. Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above

Answer

Answer: a

39. Accountability is derived from
(a) Authority
(b) Formal position
(c) Responsibility
(d) All of the above

Answer

Answer: c

40. When decision-making authority is retained organisation is said to be by higher management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above

Answer

Answer: b

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