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

Topics in this test

Difficulty: 3 easy · 9 medium · 18 hard

Sample questions with answers

The first 5 questions of this free test.

1. Q1. A company gives its employees fair salaries, good working conditions and opportunities for promotion so that they feel satisfied and work willingly. According to the objectives of management, these efforts fall under:

   • A. Personal objectives
   • B. Social objectives
   • C. Economic objectives
   • D. Organisational objectives
   Solution

   Satisfying the financial and personal needs of employees, such as good pay, recognition and growth, is a personal (individual) objective of management.

2. Q2. Identify the 'odd one out' among the following objectives of management:

   • A. Achieving steady growth of the enterprise
   • B. Generating employment opportunities for society
   • C. Ensuring the survival of the organisation
   • D. Earning adequate profit
   Solution

   Survival, profit and growth are organisational objectives, while generating employment opportunities for society is a social objective.

3. Q3. A newly appointed manager says: 'I will decide what is to be done, how it will be done, I will get it done through my team, and finally check whether it was actually done.' The LAST part of her statement refers to which function of management?

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

   Checking whether the work has actually been done as per standards is the controlling function of management.

4. Q4. Match the level of management in Column I with the correct responsibility in Column II: Column I: (P) Top level, (Q) Middle level, (R) Supervisory level Column II: (1) Interpreting top-level policies and coordinating departmental activities, (2) Framing overall objectives and strategies for the whole organisation, (3) Directly overseeing the actual work of operative employees

   • A. P-3, Q-1, R-2
   • B. P-1, Q-2, R-3
   • C. P-2, Q-1, R-3
   • D. P-2, Q-3, R-1
   Solution

   Top level sets objectives (2), middle level links plans to operations (1), and supervisory level directly guides workers (3).

5. Q5. Assertion (A): Coordination is needed at all levels of management and in all functions of an enterprise. Reason (R): Coordination is a separate function that a manager performs only after planning, organising, staffing, directing and controlling are over. Choose the correct option:

   • A. A is false but R is true
   • B. Both A and R are true and R is the correct explanation of A
   • C. A is true but R is false
   • D. Both A and R are true but R is not the correct explanation of A
   Solution

   Coordination is pervasive, so (A) is true, but it is not a separate function performed last — it runs through all functions, so (R) is false.

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