Class 12 Business Studies Chapter 5 MCQ and Important Questions of Organising to prepare for exams in session 2022-2023. Class 12 Business Studies Multiple Choice Questions and Extra important questions are helpful to prepare for exams. Class 12 Business Studies Chapter 5 Solutions.
Class 12 Business Studies Chapter 5 MCQ
Q1
The first step in the process of organizing is
[A]. Establishing reporting relationships
[B]. Departmentalisations
[C]. Identification and division of work
[D]. Assignment of duties
Answer: Option C
Explanation:Identification and division of work.
Q2
For delegation to be effective it is essential that responsibility be accompanied with necessary
[A]. Manpower
[B]. Authority
[C]. Incentives
[D]. Promotions
Answer: Option B
Explanation:If authority is lacking, work cannot be got done.
Q3
Which of the following is a formal organization?
[A]. Organisation in which official relationship exists.
[B]. Jobs are created with clearly defined authority and responsibility.
[C]. Organization in which scalar chain is followed.
[D]. All of the above.
Answer: Option D
Explanation:A formal organization is meant to achieve official goals – hence all options [a], [b] and [c] are correct.
Q4
Grouping of activities on the basis of product lines is a part of
[A]. Delegated organization
[B]. Divisional Organisation
[C]. Autonomous organization
[D]. Functional organization
Answer: Option B
Explanation:When product based specialization is required, divisional structure is preferred.
Meaning of Organising
Organising can be defined as a process that initiates implementation of plans by clarifying work, working environment, working relationships and effectively deploying resources for attainment of identified and desired results. Therefore, it is a process, which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilized for achieving specified objectives.
Q5
Span of management refers to ………….
[A]. Number of members in top management
[B]. Length of term for which a manager is appointed
[C]. Number of managers in a organisation
[D]. Number of subordinates under a superior
Answer: Option D
Explanation:Span means width. Here it refers to number of subordinates which a superior can effectively manage.
Q6
…….. refers to systematic dispersal of authority to the lowest level.
[A]. Delegation
[B]. Responsibility
[C]. Decentralisation
[D]. Scalar chain
Answer: Option C
Explanation:Decentralisation is an extension of delegation to the lowest level.
Q7
Which of the following is not a feature of divisional structure?
[A]. Its formation is based on product lines
[B]. It is not suitable for large firms.
[C]. It is easy to fix the responsibility on one department
[D]. It facilitates managerial development.
Answer: Option B
Explanation:Divisional structure is very costly to operate – hence not suitable for large organisations.
Q8
Decentralisation is the result of policy decision made by
[A]. Top management
[B]. Middle management
[C]. Lower management
[D]. Workers
Answer: Option A
Explanation:The purpose of decetralisation is to reduce the burden of top management.
Importance of Organising
- 1. Benefits of specialization
- 2. Clarity in working relationship
- 3. Effective Administration
- 4. Optimum utilization of resources
- 5. Adoption to Change
- 6. Development of Personnel
- 7. Expansion and growth.
Q9
……. provides the basis of managerial hierarchy.
[A]. Decentralisation
[B]. Authority
[C]. Responsibility
[D]. Delegation
Answer: Option D
Explanation:Delegation creates superior subordinate relationship.
Q10
……… implies answerability for final outcome.
[A]. Delegation
[B]. Responisibility
[C]. Accountability
[D]. Formal organisation
Answer: Option C
Explanation:Accountability cannot be denied.
Q11
When operations require high degree of specialization, which type of organization is suitable.
[A]. Divisional structure
[B]. Functional structure
[C]. Both [a] and [b]
[D]. None of the above.
Answer: Option B
Explanation:Functional structure is suitable where organization is large and has diversified activities.
Q12
Which type of structure is costly?
[A]. Divisional structure- because there is duplication of resources
[B]. Divisional structure – because there are too many departments.
[C]. Functional structure
[D]. Both [a] and [b].
Answer: Option D
Explanation:Both [a] and [b].
Features of Formal Organisation
1. It is deliberately created by the top management.
2. It is based on rules and procedures which are in written form.
3. It is impersonal i.e. does not take into consideration emotional aspect.
4. It clearly defines the authority and responsibility of every individual.
5. It is created to achieve organizational objectives.
Q13
Decentralisation leads to ……….. autonomy.
[A]. More
[B]. Less
[C]. Equal
[D]. [a] and [c]
Answer: Option A
Explanation:The very purpose of decentralization is to grant higher authority to subordinates when an organization expands.
Q14
This type of organization facilitates expansion and growth.
[A]. Formal
[B]. Informal
[C]. Functional
[D]. Divisional
Answer: Option D
Explanation:Divisional structure is an independent unit.
Q15
The framework within which managerial operations are carried out is called
[A]. Organisational structure
[B]. Informal organization
[C]. Divisional structure
[D]. Functional structure
Answer: Option A
Explanation:Organisation or organizational structure provides the basis of formal relationship within which activities of organization are carried out.
Q16
Which of the following is not a feature of divisional structure?
[A]. Its formation is based on product lines
[B]. It is not suitable for large firms.
[C]. It is easy to fix the responsibility on one department
[D]. It facilitates managerial development.
Answer: Option B
Explanation:Divisional structure is very costly to operate – hence not suitable for large organisations.
Disadvantages of Formal Organisation
- 1. The Work is based on rules which causes unnecessary delays.
- 2. The employees have to do what they are told to do and they have no opportunity to show their creativity.
- 3. It is difficult to understand all human relationships in an enterprise as it places more emphasis on structure and work.
Q17
Which of the following is not a feature of informal organization?
[A]. Informal communication
[B]. Spontaneous
[C]. Stability
[D]. No clear-cut structure.
Answer: Option C
Explanation:Informal organizations arise spontaneously as a result of social interaction among members in the same organization. Since the member keep on changing, it is not stable – there is no governing body.
Q18
Which of the following is not a feature of authority?
[A]. It is right to command.
[B]. It flows upward from subordinate to superior.
[C]. It can be delegated.
[D]. It arises from formal position.
Answer: Option B
Explanation:Authority flows from top to bottom or from superiors to subordinates.
Q19
Which of the following does not follow the scalar chain?
[A]. Formal organization
[B]. Functional structure
[C]. Divisional structure
[D]. Informal structure
Answer: Option D
Explanation:Informal structure is unofficial relationship among staff members. It cannot have formal lines of authority.
Q20
Which of the following is not an element of delegation?
[A]. Order
[B]. Authority
[C]. Accountability
[D]. Responsibility
Answer: Option A
Explanation:Options [b], [c], [d] are the three elements of delegation. Order is one of the principles of Fayol.
Advantages of Informal Organisation
1. Prescribed lines of communication are not followed which leads to faster spread of information.
2. Enhances job satisfaction which gives them a sense of belongingness in the organization.
3. Because the subordinates can speak without hesitation before the officers, it helps the officers to understand the problems of their subordinates.
Into how many sub-topics can chapter 5 business studies class 12th be divided to prepare MCQs.
Broadly, there are three sub-topics. Types of organizational structures, delegation and decentralisation and formal and informal organization.
What is the utility of solving MCQs other than preparing for board examination?
For many of the competitive exams, MCQs are the preferred mode of conducting examination and selecting the candidates.
Why is the MCQs based question paper preferred over other means of examination?
Under this mode, the students ability can be just in short span of time.