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
Q1
Principles of management are not . . . . . . in nature?
[A]. Dynamic
[B]. Behavioral
[C]. Absolute
[D]. Evolutionary
Answer: Option C
Explanation:Principles of management are general guidelines to decision making. Hence, they cannot be absolute.
Q2
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.
Answer: Option A
Explanation:Attitude of both should change towards each other.
Q3
Who is known as father of scientific management?
[A]. Taylor
[B]. Drucker
[C]. Koontz
[D]. Fioal
Answer: Option A
Explanation:Taylor introduced many techniques to improve production at shop lower level.
Q4
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.
Answer: Option B
Explanation:Functional foremanship emphasis on 8 specialists to guide the worker.
Nature of Principles of Management
The nature of principles of management can be described in the following points:
- Universal applicability
- General Guidelines
- Formed by practice and experimentation
- Flexible
- Mainly Behavioural
- Cause and Effect relationship
- Contingent
Q5
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].
Answer: Option B
Explanation:There are four each foremen or specialists – planning and production department to guide the workers.
Q6
Gang plank is associated with . . . . . ?
[A]. Unity of command
[B]. Unity of direction
[C]. Scalar chain
[D]. Function foremanship
Answer: Option C
Explanation:Gang plank is the shortest road between two department heads in an emergency.
Q7
Which technique assesses the performance of workers to provide them necessary rest?
[A]. Method study
[B]. Time study
[C]. Motion study
[D]. Fatigue study
Answer: Option D
Explanation:Fatigue study tells to find out how much rest is required after how much interval.
Q8
One best way of doing a task is another name for
[A]. Method study
[B]. Time study
[C]. Motion study
[D]. Fatigue study
Answer: Option A
Explanation:All methods are studied an then the best one is selected.
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
Q9
How are management principles formed?
[A]. By observation of human behavior
[B]. In laboratory
[C]. By experience of managers
[D]. By experience of workers
Answer: Option A
Explanation:By observing the behavior of workers of all types in an organisation and through experimentation, managements scientist arrive at a conclusion.
Q10
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]
Answer: Option A
Explanation:By Equity means fairness and justice and treating everyone alike.
Q11
How many principles did Henry Fayol enlist?
[A]. 8
[B]. 12
[C]. 4
[D]. 14
Answer: Option D
Explanation:In his famous book Fayol enlisted 14 principles of general management.
Q12
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
Answer: Option D
Explanation:All the principle of management help in achieving optimum utilization of resources by increasing efficiency and productivity.
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
Q13
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
Answer: Option B
Explanation:This system helps to provide incentive to workers who are devoted to work.
Q14
Henri Fayol was a
[A]. Mining engineer
[B]. Production Engineer
[C]. Accountant
[D]. Social Scientist
Answer: Option A
Explanation:Self explanatory
Q15
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]
Answer: Option D
Explanation:Dividing the work into smaller parts leads to specialization.
Q16
Which of the following is not a specialist supervising a worker functional foremanship?
[A]. Gang boss
[B]. Inspector
[C]. Route Clerk
[D]. Operating officer
Answer: Option D
Explanation:Taylor did not use any such term for his 8 specialists.
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.
Q17
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
Answer: Option C
Explanation:Initiative means carrying out actions without being asked by the superiors.
Q18
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
Answer: Option C
Explanation:Unity of direction should not be confused with unity of command. It implies that a group of people having the same objective should be headed by one person only.
Q19
Which of the following is not concerned with Henry Fayol?
[A]. Fair remuneration
[B]. Time study
[C]. Espirit de corps
[D]. Equity
Answer: Option B
Explanation:Time study is concerned with Taylor.
Q20
Espirit de corps means
[A]. Union is strength
[B]. Team work
[C]. Substituting I with We
[D]. All of the above.
Answer: Option D
Explanation:Self-explanatory.
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
- Route Clerk to specify the exact sequence and route of production.
- Instruction card clerk is responsible for drafting instructions for the workers.
- Time and cost clerk to prepare time and cost sheet for the job.
- 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.