MCQ on Organising Class 12 Business Studies (2022)

MCQ on Organising Class 12 Business Studies includes Multiple choice questions on Introduction to Organisation and its Importance, Organizational Structure and Delegation & Decentralization. Answers to MCQ on Organising Class 12 Business Studies CBSE are available after clicking on the answer.

Topic 1 – Introduction to Organisation and its Importance

1. Organising involves organisation of which of the following resources
a) Men,
b) Material,
c) Money
d) All of the above

Answer

Answer: (d)All of the above

2. Setting up the organisational structure during the process of organising involves which of the following : –
a) What is the specified business which the company should pursue ;
b) Designing the roles in an organisation and
c) Setting up the authority and responsibility relationship of the skilled people
d) Both (b) and (c)

Answer

Answer: (d)Both (b) and (c)

3. Organising is a process where : –
a) Human efforts are coordinated ;
b) Resources are assembled properly ;
c) Both (a) and (b)
d) None of the above

Answer

Answer: (c)Both (a) and (b)

4. Which of the following is not a features of organizing process : –
a) Everything is set up so that people could be appointed for respective roles ;
b) Work of the organisation is divided in different departments
c) It creates a proper hierarchy
d) All of the above

Answer

Answer: (d)All of the above

5. Clear distinction between job roles of various people helps in : –
a) Increase the work load
b) Minimization of wastage
c) Reducing the productivity of the people
d) All of the above

Answer

Answer: (b)Minimization of wastage

6. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -Organising creates a working relationship that establishes a clear channel of communication and specifies who is accountable for what.
Reason(R) -Specialization develops as a result of repeated performance of a given task.

(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (b) Both A and R are correct and R is not the correct explanation of R

7. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -Organizing aids the business in adapting to new situations by updating the structure appropriately.
Reason(R) -Organizing causes the business to be unstable, making it harder to survive and expand in the event of a change.

(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (c) A is true but R is false

8. Palian Ltd. specialises in the production of steel goods. The company’s goal is to make 250 goods per day. To accomplish this, all departments’ efforts are coordinated and linked, and authority-responsibility relationships between various job roles are established. There is a clear understanding of who is responsible for reporting to whom.

Identify the function of management highlighted in the above case-

(a) Planning
(b) Controlling
(c) Coordination
(d) Organising

Answer

Answer: (d) Organising

MCQ on Organising Class 12 Business Studies – Topic 2 – Organizational Structure

Q1. The level of management in the organizational structure is determined by
a) Authority
b) Responsibility
c) Span of management
d) All of these

Answer

Answer: (c)Span of management

Q2. In which organizational structure all departments report to a coordinating head.
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (a)Functional structure

Q3. Which organizational structure’s formation is based on product lines and is supported by functions?
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (b)Divisional structure

Q4. “Grouping of jobs of similar nature under functional and organising these major functions as separate departments.” Which organizational structure is highlighted in this line?
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (a)Functional structure

Q5. What is the advantage of functional structure?
a) It leads to occupational specialisation
b) It makes training of employees easier
c) It helps in increasing managerial and operational efficiency
d) All of these

Answer

Answer: (d)All of these

Q6. Which of the following is not an advantage of functional structure?
a) It may lead to problems in coordination
b) It ensures that different functions get due attention
c) It leads to minimal duplication of effort
d) All of these

Answer

Answer: (a) It may lead to problems in coordination

MCQ on Organising Class 12 Business Studies

Q7. Which organizational structure is economical?
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (a)Functional structure

Q8. Which organisation structure comprises of separate business units or divisions?
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (b)Divisional structure

Q9. Which organizational structure is suitable when the size of the organisation is large, has a diversified activities and operations require a high degree of specialisation?
a) Functional structure
b) Divisional structure
c) Both a and b
d) None of these

Answer

Answer: (a)Functional structure

Q10. What is the disadvantage of functional structure?
a) Conflict of interests may arise between departments.
b) It may lead to inflexibility
c) It may lead to problems in coordination
d) All of these

Answer

Answer: (d)All of these

11. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -The framework within which management and operational duties are accomplished can be defined as the organisation structure.
Reason(R) -The term “functional structure” refers to the division of the entire business according to the principal items to be produced.

(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (c) A is true but R is false

12. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -Specialization is encouraged by the functional structure.
Reason(R) -In the case of a functional structure, each department must perform a specified function.

(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (a) Both A and R are correct and R is the correct explanation of R

Topic 3 – Delegation & Decentralization

Q1. In Delegation the authority flows from
a) Top to bottom
b) Bottom to top
c) Both a and b
d) None of these

Answer

Answer: (a)Top to bottom

Q2. After delegating the job or the task to the subordinates, the manager
a) Is not accountable for the result of the assigned task
b) Is accountable for the result of the assigned task
c) Subordinate is responsible to the top management
d) None of these

Answer

Answer: (b)Is accountable for the result of the assigned task

Q3. The elements of Delegation are
a) Authority
b) Responsibility
c) Accountability
d) All of these

Answer

Answer: (d)All of these

Q4. Responsibility flows from
a) superior to subordinate
b) subordinate to superior
c) Both a and b
d) None of these

Answer

Answer: (b)subordinate to superior

Q5. Delegation helps a manager in
a) Extend his area of operations
b) To use his time on high priority activities
c) Both a and b
d) None of these

Answer

Answer: (c)Both a and b

Q6. As we go higher up in the management hierarchy, the scope of authority
a) Decreases
b) No change
c) Increases
d) None of these

Answer

Answer: (c)Increases

Q7. “It arises from a superior– subordinate relationship because the subordinate is bound to perform the duty assigned to him by his superior.” Which element of delegation is highlighted in this statement?
a) Authority
b) Responsibility
c) Accountability
d) All of these

Answer

Answer: (b)Responsibility

Q8. Which of the following element of the delegation cannot be delegated at all?
a) Authority
b) Responsibility
c) Accountability
d) All of these

Answer

Answer: (c)Accountability

Q9. ‘Delegation helps in developing the talents of the employees. It also has psychological benefits.’ Which Importance of delegation is highlighted in this statement?
a) Effective management
b) Employee development
c) Motivation of employees
d) Better coordination

Answer

Answer: (c)Motivation of employees

MCQ on Organising Class 12 Business Studies

Q10. Which of the following is not an importance of delegation?
a) Facilitation of growth
b) Basis of management hierarchy
c) Better coordination
d) None of these

Answer

Answer: (d)None of these

11. Read the following statements of Assertion(A) and Reason(R) And choose the correct alternative:
Assertion(A) -When a superior assigns work to a subordinate, that subordinate is responsible to his superior for the success or failure of that job.
Reason(R) -A management can delegate authority, but he or she cannot delegate responsibility.

(a) Both A and R are correct and R is the correct explanation of R
(b) Both A and R are correct and R is not the correct explanation of R
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (b) Both A and R are correct and R is not the correct explanation of R

12. Read the following statements of Assertion(A) and Reason(R) and choose the correct alternative:
Assertion(A) -Better control systems, such as balancing score Cards and management information systems, are being developed.
Reason(R) -One of the issues of decentralisation is performance Accountability.

(a) Both A and R are correct and R is the correct explanation of A
(b) Both A and R are correct and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer

Answer: (a) Both A and R are correct and R is the correct explanation of A

13. Deez Ltd. is a corporation that has recently adopted a decentralised management style. The company has developed rapidly, and lower-level management decisions are implemented, saving time because those making decisions are close to taking action. However, Denez’s chairman of Deez Ltd. recently met with the chairman of another manufacturing firm, who is also a good friend of Denez’s, and asked him how he would measure employee performance if he went with a decentralised method. Denez’s secretary calls him a few hours later and requests the list of works to be completed the next day. He tells him about all of the crucial duties that need to be completed.

I. Which aspect of decentralisation has been emphasised in the following case?

(a) Quick decision making
(b) Develops initiative among subordinates
(c) Facilitates growth and expansion.
(d) Develops managerial talent for the future

Answer

Answer: (a) Quick decision making

II. What advice do you think Denez should give to help a decentralised organisation gain more control?

(a) make the departments answerable for the final outcomes
(b) balance score card system should be adopted
(c) observation through CCTV cameras to be adopted to keep track of the employees’ performance
(d) All of these

Answer

Answer: (d) All of these

III. Which organising concept is being discussed between Arnav and his secretary?

(a) Decentralisation
(b) Delegation
(c) Authority
(d) Responsibility

Answer

Answer: (b) Delegation

14. Saarthi Pvt Ltd. has a large number of locations around the United States. Decentralization is a new paradigm that the company has lately implemented. Lower-level managers have been given the flexibility to make their own decisions and trust their own judgements as a result of this. This has significantly aided the company in reaching new heights. Employees are in charge of their own projects, and the experience they obtain will help them advance in the company, eventually earning them positions in management. There is no substitute for delegation in the organisation. Even when the optional policy decision of decentralisation was not implemented in the past, the company performed admirably. The managers realised that by delegating properly, they could delegate ordinary tasks to subordinates and focus on priority areas. This is how the business grew. The superior-subordinate connection was established and reporting ties were clarified as a result of delegation. The firm focuses on product differentiation. We can see how managers will be able to fully improve their managerial skills in the future.

I. Which among the following is an advantage of decentralization discussed in the above case-

(a) Development of initiative between subordinates
(b) Facilitates growth and expansion.
(c) Develops managerial talent for the future
(d) Better control.

Answer

Answer: (a) Development of initiative between subordinates

II. In the example above, what are the benefits of delegation that are highlighted here?

(a) Facilitates growth
(b) Helps in effective management
(c) Provides basis for management hierarchy
(d) Both a and c

Answer

Answer: (b) Helps in effective management

III. What type of organisation structure does the company have?

(a) Divisional structure
(b) Functional structure
(c) Authoritative
(d) Informal

Answer

Answer: (a) Divisional structure

Business Studies Class 12 MCQs – Term 1

  • Nature and Significance of Management MCQs
  • Principles of Management MCQs
  • MCQ on Business Environment
  • MCQ on Planning
  • MCQ on Organising
  • Marketing Management MCQs

Frequently Asked Questions on MCQ on Organising Class 12 Business Studies

1. Are these MCQ’s on Organising Class 12 Business Studies are based on 2021-22 CBSE Syllabus ?

Yes . There are 34 MCQ’s on this Chapter in this blog.

2. Are you giving all the chapters of Business Studies Class 12 which are given in CBSE syllabus for 2021-22 ?

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