Class 12 Business Studies Chapter 2 MCQ and Important Questions of Principles of Management updated for academics session 2022-2023. Class 12 Business Studies Important Questions and Multiple choice questions provides extra practice for the exams. Class 12 Business Studies Chapter 2 Solutions

Class 12 Business Studies Chapter 2 MCQ


Principles of management are not . . . . . . in nature?

[A]. Dynamic
[B]. Behavioral
[C]. Absolute
[D]. Evolutionary

What is meant by mental revolution?

[A]. Change in attitude of workers and management towards each other.
[B]. Change in attitude of workers only.
[C]. Change in attitude of management towards workers.
[D]. Substituting WE instead of I.

Who is known as father of scientific management?

[A]. Taylor
[B]. Drucker
[C]. Koontz
[D]. Fioal

Which technique of taylor extension of principle of division of work and specialization?

[A]. Maximum, not restricted output
[B]. Functional foremanship
[C]. Differential piece rate system
[D]. Time and motion study.

Nature of Principles of Management

The nature of principles of management can be described in the following points:

    1. Universal applicability
    2. General Guidelines
    3. Formed by practice and experimentation
    4. Flexible
    5. Mainly Behavioural
    6. Cause and Effect relationship
    7. Contingent

Basic aim of functional foremanship is ……… ?

[A]. To separate top level management from middle level management.
[B]. To separate planning functions from execution.
[C]. To provide incentive to workers.
[D]. Both [a] and [b].

Gang plank is associated with . . . . . ?

[A]. Unity of command
[B]. Unity of direction
[C]. Scalar chain
[D]. Function foremanship

Which technique assesses the performance of workers to provide them necessary rest?

[A]. Method study
[B]. Time study
[C]. Motion study
[D]. Fatigue study

One best way of doing a task is another name for

[A]. Method study
[B]. Time study
[C]. Motion study
[D]. Fatigue study

Significance of the Principles of Management

The significance of principles of management can be derived from their utility which can be understood from the following points:

    • 1. Providing managers with useful insights into reality
    • 2. Optimum utilization of resources and effective administration
    • 3. Scientific decisions
    • 4. Meeting the changing environmental requirements
    • 5. Fulfilling social responsibility
    • 6. Management training

How are management principles formed?

[A]. By observation of human behavior
[B]. In laboratory
[C]. By experience of managers
[D]. By experience of workers

The principle of equity means

[A]. Same salary to workers at same level
[B]. Remuneration based on the capacity of employer to pay
[C]. Ability of workers
[D]. Both [a] and [b]

How many principles did Henry Fayol enlist?

[A]. 8
[B]. 12
[C]. 4
[D]. 14

Why are principles of management significant?

[A]. They are human in nature
[B]. They help the society
[C]. Helping nation building
[D]. Increase in efficiency

Principles of Management developed by Fayol

1. Division of work
2. Authority and Responsibility
3. Discipline
4. Unity of Command
5. Unity of Direction
6 Subordination of Individual Interest to General Interest
7. Remuneration of Employees
8. Centralisation and Decentralisation


Which technique of scientific management helps to provide incentive to management?

[A]. Method study
[B]. Differential piece rate system
[C]. Motion study
[D]. Fatigue study

Henri Fayol was a

[A]. Mining engineer
[B]. Production Engineer
[C]. Accountant
[D]. Social Scientist

Which of the following statement best describes the principle of “Division of Work”

[A]. It leads to specialization
[B]. Work should be divided into small tasks
[C]. Labour should be divided
[D]. Both [a] and [b]

Which of the following is not a specialist supervising a worker functional foremanship?

[A]. Gang boss
[B]. Inspector
[C]. Route Clerk
[D]. Operating officer

Meaning of Scientific Management

Conduct of business activities according to standardised tools, methods and trained personal so as to have increased output through effective and optimum utilisation of resources. Hence it stresses that there is always one best way of doing things.


Which principle of Fayol indicates that workers should be encouraged to develop and carry out plans for improvements?

[A]. Division of labour
[B]. Centralization
[C]. Initiative
[D]. Unity of direction

Unity of direction is concerned with

[A]. One head different plans
[B]. Planning by production Manager
[C]. One head one plan
[D]. Planning by employees

Which of the following is not concerned with Henry Fayol?

[A]. Fair remuneration
[B]. Time study
[C]. Espirit de corps
[D]. Equity

Espirit de corps means

[A]. Union is strength
[B]. Team work
[C]. Substituting I with We
[D]. All of the above.
Principles of Scientific Management

1. Science, not rule of Thumb
2. Harmony, not discord
3. Cooperation not individualism
4. Development of workers to their greatest efficiency and prosperity

Planning Incharges
    1. Route Clerk to specify the exact sequence and route of production.
    2. Instruction card clerk is responsible for drafting instructions for the workers.
    3. Time and cost clerk to prepare time and cost sheet for the job.
    4. Shop Disciplinarian to ensure discipline and enforcement of rules and regulations among the workers.

How important are MCQs for class 12 chapter 2 business studies?

MCQs were asked in the CBSE Board examination last year. This happened in the first term. The total weightage was 40 marks. Approximately, 5 – 6 marks were allotted for each chapter.

What topics are important for MCQs class 12th chapter 2 business studies?

The techniques of Taylor are the most important- though MCQs can be asked from principles of Fayol also.

What is the difference between MCQs and multiple response questions?

Under multiple response questions, more than one answer could be correct. So, they are difficult in comparison to MCQs.