{Latest} MCQs on Organising Class 12 Business Studies Chapter 5 - Centurion Knowledge (2022)

Answer: Departments.

20. Which of the following is not an example of a functional organisation structure?

(a) Production department

(b) Marketing department

(c) Metal products division

(d) Both a and b

Answer:Metal products division.

21. The functional organisation structure is best suited in the situation where:-

(a) The size of the organisation is large

(b) The activities of the organisation are diversified

(c) specialization is not required

(d) Both a and b

Answer: Both a and b.

22. Under divisional organisation structure, all the functions linked with a particular product are looked after by ______.

(a) Head of the division

(b) Head of the department

(c) Head of the organisation

(d) Head of the management

Answer: Head of the division.

23. Which of the following is not an example of a division organisation structure?

(a) Plastic product division

(b) Car production division

(c) Personnel department

(d) Both a and b

Answer: Personnel department.

24. Which of the following is not an advantage of divisional organisation structure?

(a) Development of divisional heads

(b) Identification of divisional results

(c) Faster decision making

(d) None of the above

Answer: None of the above.

25. Divisional organisation is favorable where:-

(a) There are various kinds of product lines

(b) The size of the concern is large

(c) Where the same manufacturing technology is required

(d) Both a and b

Answer: Both a and b.

MCQs on Organising Class 12 Chapter 5 Business studies

Topic 4: Formal and Informal organisation

1. ______ organisation clearly specifies the responsibility and authority and there exists systematic coordination among the different activities.

(a) Formal

(b) Informal

(c) Centralized

(d) Delegated

Answer: Formal.

2. ______ organisation structure is based on rules and procedures.

(a) Formal

(b) Informal

(c) Both a and b

(d) None of the above

Answer: Formal

3. Which of the following is a more stable organisation?

(a) Formal

(b) Informal

(c) Centralized

(d) None of the above

Answer: Formal.

4. The following organisation resists changes:-

(a) Formal

(b) Informal

(c) Functional

(d) Divisional

Answer: Informal.

5. ‘Group norms’ are formed in which of the following organisations?

(a) Formal

(b) Informal

(c) Decentralized

(d) Delegated

Answer: Informal.

6. The principle of scalar chain is followed in the following type of organisation:-

7. ______ structure of an organisation helps locate inefficient employees.

(a) Formal

(b) Informal

(c) Both a and b

(d) None of the above

Answer: Formal.

8. The following structure of an organisation is not deliberately created and emerges out of the mutual relationship?

(a) Formal

(b) Informal

(c) Functional

(d) Divisional

Answer: Informal.

9. Which of the following is cannot be regarded as a feature of the formal organisation structure?

(a) It is based on rules

(b) It is based on the division of work

(c) It is deliberately created

(d) It is personal

Answer: It is personal.

10. Select which among the following is not an advantage of the formal organisation?

(a) Avoiding overlapping of work

(b) Unity of command is possible

(c) Organisational goals are easily achieved

(d) Fulfils social needs

Answer: Fulfils social needs.

11. Which among the following is a demerit of the formal organisation?

(a) Delay in decision making

(b) Lack of Initiative

(c) Hard to understand human relationships

(d) All of the above

Answer: All of the above.

12. _____ organisation is referred to the natural grouping of people beyond their officially defined roles.

(a) Formal

(b) Informal

(c) Functional

(d) Line and staff

Answer: Informal.

13. The following is a characteristic of Informal organisation structure:-

(a) It is not created deliberately

(b) It is personal

(c) It lacks stability

(d) All of the above

Answer: All of the above.

14. Which of the following emerges first:-

(a) Formal organisation

(b) Informal organisation

(c) Formal and Informal organisation

(d) None of the above

Answer: Formal organisation.

15. Select the merit of an informal organisation among the following options:-

(a) Faster spread of information

(b) It doesn’t resist changes

(c) Stability in an organisation

(d) All of the above

Answer: Faster spread of knowledge.

16. Which of the following is the demerit of informal organisation structure?

(a) It creates rumors

(b) It resists change

(c) Norm groups create pressure

(d) All of the above

Answer: All of the above.

17. Which of the following is unnecessary for an organisation?

(a) Formal organisation structure

(b) Informal organisation structure

(c) Functional organisation structure

(d) None of the above

Answer: None of the above.

18. Which of the following organisational structure is deliberately established?

19. Which of the following does not happen in an informal organization structure?

(a) Forming of group norms

(b) Following the scalar chain

(c) Neglection of rules and procedure

(d) Independent channel of communication

Answer: Following of scalar chain.

20. ‘ It leads to faster spread of information as the prescribed line of communication is not followed’ The following highlights:-

(a) Characteristics of Informal organisation

(b) Advantages of Informal organisation

(c) Characteristics of formal organisation

(d) Advantages of formal organisation

Answer: Advantage of Informal organisation.

MCQs on Organising Business Studies with Answers Class 12

Topic 5:Delegation and Decentralization

1. ______ is the process of handing over and entrusting responsibility and authority from a superior to a subordinate.

(a) Delegation

(b) Centralization

(c) Decentralization

(d) Both a and b

Answer: Both a and b.

2. Delegation is ______ transfer of responsibility and authority between the people of the organisation.

(a) Downward

(b) Upward

(c) Leftward

(d) Rightward

Answer: Downward.

3. The key to the managerial post is ______.

(a) Authority

(b) Responsibility

(c) Accountability

(d) All of the above

Answer: Authority.

4. ______ increases the importance of a subordinate in the organisation.

(a) Authority

(b) Centralization

(c) Specialization

(d) Delegation

Answer: Delegation.

5. Which of the following statements stand true in the case of delegation of authority and decentralization?

(a) Delegation of authority is inevitable

(b) Decentralization is voluntary

(c) Both of them are voluntary

(d) Both a and b

Answer: Both a and b.

6. Which of the following is correct about the scope of delegation of authority and decentralization respectively?

(a) Limited and broad

(b) Broad and limited

(c) Both of them have a broad scope

(d) Both of them have a limited scope

Answer: Limited and broad.

7. Which of the following options have a wider scope?

(a) Management

(b) Centralization

(c) Delegation

(d) Decentralization

Answer: Management.

8. Decentralization in an organisation depends upon _____.

(a) Centralization

(b) Delegation

(c) Number of workers

(d) Number of members in top-level

Answer: Delegation.

9. Which of the following is called an extended form of delegation?

(a) Centralization

(b) Decentralization

(c) Specialization

(d) Divisional structure

Answer: Decentralization.

10. Which of the following is the result of delegation of authority?

(a) Decrease in administrative workload

(b) Increase in administrative workload

(c) Laziness in administrative workload

(d) Attentiveness in administrative workload

Answer: Decrease in administrative workload.

11. Which of the following decisions are possible with the help of delegation?

(a) Ineffective

(b) Quick

(c) Good

(d) Quick and good

Answer: Quick and good.

12. Which of the following increases the participation of employees in the management of an organisation?

(a) Delegation

(b) Decentralization

(c) Centralization

(d) All of the above

Answer: Decentralization.

13. The obligation of a subordinate to perform his task in the right manner is known as ______.

(a) Authority

(b) Responsibility

(c) Accountability

(d) None of the above

Answer: Responsibility.

14. Responsibility and accountability are elements of the delegation that flows ______.

(a) Downward

(b) Upward

(c) Rightward

(d) Leftward

Answer: Upward.

15. ______ referred to the answerability for the final outcome of the assigned work to the subordinate.

(a) Authority

(b) Responsibility

(c) Accountability

(d) None of the above

Answer: Accountability.

16. Which of the following elements of delegation cannot be entirely delegated?

(a) Accountability

(b) Responsibility

(c) Accountability

(d) None of the above

Answer: Accountability.

17. Select the correct sequence of elements of delegation:-

(a) Authority> Accountability> Responsibility

(b) Responsibility> Accountability> Authority

(c) Accountability> Authority> Responsibility

(d) Authority> Responsibility> Accountability

Answer: Authority> Responsibility> Accountability.

18. _______ is the basis of delegation of authority.

(a) Division of labor

(b) Specialization

(c) Responsibility

(d) Both a and b

Answer: Division of labor.

19. Which of the following is not the merit of delegation?

(a) Effective management

(b) Development of employees

(c) Better coordination

(d) None of the above

Answer: None of the above.

20. Which of the following is best for growth in large organizations?

(a) Complete centralization

(b) Complete decentralization

(c) Combination of centralization and decentralization

(d) None of the above

Answer: Combination of centralization and decentralization.

Related Articles of Class 12 Business Studies:

Class 12 Business Studies Nature and Significance of Management MCQs

Class 12 Business Studies Principles of Management MCQs

Class 12 Business Studies Business Environment MCQs

Class 12 Business Studies Planning MCQs

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