Bihar Board Class 12 Commerce Business Studies · Ch 1: Nature and Significance of Management

Topics in this test

Difficulty: 3 easy · 8 medium · 19 hard

Sample questions with answers

The first 5 questions of this free test.

1. Q1. Management is NOT regarded as a full-fledged profession mainly because:

   • A. There is no compulsory qualification or statutory body that restricts entry into management
   • B. Managers do not aim to serve the interests of their organisation
   • C. Management cannot be acquired through formal education or training
   • D. Management has no systematic body of specialised knowledge
   Solution

   Unlike law or medicine, there is no legally compulsory qualification or statutory body that restricts entry into management, so anyone can become a manager.

2. Q2. The manager of a garment factory measures the actual output against the planned targets, finds a shortfall, and orders corrective action to remove the deviation. Which function of management is he performing?

   • A. Directing
   • B. Organising
   • C. Controlling
   • D. Planning
   Solution

   Comparing actual performance with planned standards and taking corrective action is the function of controlling.

3. Q3. Identify the odd one out from the following functions of management:

   • A. Organising
   • B. Controlling
   • C. Planning
   • D. Coordination
   Solution

   Planning, organising and controlling are recognised functions of management, but coordination is not a separate function — it is the essence that is part of every function.

4. Q4. Match the levels of management in List-I with their members in List-II: List-I: (A) Top level (B) Middle level (C) Lower level List-II: (i) Departmental heads (ii) Foremen and supervisors (iii) Chief Executive Officer Choose the correct matching:

   • A. A-iii, B-ii, C-i
   • B. A-iii, B-i, C-ii
   • C. A-ii, B-i, C-iii
   • D. A-i, B-iii, C-ii
   Solution

   The Chief Executive Officer is top level, departmental heads are middle level, and foremen and supervisors form the lower level.

5. Q5. Consider the following statements about the nature of management: (i) Management is an intangible force. (ii) Management is a goal-oriented process. (iii) Management is a one-time activity completed once goals are set. Which of the statements are correct?

   • A. (i) and (ii) only
   • B. (i) and (iii) only
   • C. (i), (ii) and (iii)
   • D. (ii) and (iii) only
   Solution

   Management is intangible (felt through results) and always goal-oriented, so (i) and (ii) are correct; but management is a continuous process, not a one-time activity, so (iii) is wrong.

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