Class 12 Business Studies Chapter 7 MCQ and Important Questions of Directing with answers and complete explanation for CBSE 2022-2023 exams. Class 12 Business Studies extra questions and multiple choice questions are better tools for preparing for exams. Class 12 Business Studies Chapter 7 Solutions.

Class 12 Business Studies Chapter 7 MCQ


Which of the following is not element of directing?

[A]. Communication
[B]. Delegation
[C]. Decentralisation
[D]. Both [b] and [c].

Which of the following accurately describes security needs?

[A]. Safety of property
[B]. Protection against danger
[C]. Protection from physical and emotional harm
[D]. All of these

Supervision means

[A]. Fulfilment of legal formalities
[B]. Overseeing what is being done by subordinates
[C]. Overlooking faults
[D]. Both [b] and [c].

Grapevine is

[A]. Formal communication
[B]. Diagonal communication
[C]. Informal communication
[D]. Barrier to communication

Features of Directing

    1. Directing initiates action
    2. Directing takes place at every level of Management (Pervasive)
    3. Directing is a continuous process of supervision, communication, leadership and motivation.
    4. Directing flows from top to bottom.

Maslow identified ………. levels in his need hierarchy theory of motivation.

[A]. 2
[B]. 4
[C]. 3
[D]. 5

The process of converting the message into communication symbol is known as

[A]. Start up
[B]. Decoding
[C]. Encoding
[D]. Feedback

The motivation theory which classifies needs in hierarchical order is developed by

[A]. Fayol
[B]. Koontz
[C]. Maslow
[D]. Drucker

Esteem needs are concerned with

[A]. Security
[B]. Prestige and self – respect
[C]. Friendship
[D]. Food, clothing

Importance of Directing

    • 1. Initiates Action
    • 2. Integrates Employee’s Efforts
    • 3. Means of motivation
    • 4. Facilitates change
    • 5. Stability and balance in the organisation.

Which of the following is not a financial incentive?

[A]. Bonus
[B]. Status
[C]. Co-partnership
[D]. Profit – sharing

Motivation means

[A]. Stimulating people to action
[B]. Encouraging employees to fulfill organizational goals
[C]. Penalising the workers
[D]. [a] and [b].

Formal communication consist of

[A]. Horizontal communication.
[B]. Vertical communication.
[C]. Diagonal communication.
[D]. All of the above.

Which one of the following is not a style of leadership?

[A]. Autocratic
[B]. Democratic
[C]. Laissez-faire
[D]. Bureaucratic

Elements of Directing

1. Supervision: Supervisor’s position is immediately above the worker.
2. Motivation: It involves arousing needs and desires in people so as to initiate and direct their behaviour in a purposive manner.
3. Leadership: Managers at all levels are expected to be the leaders of their subordinates.
4. Communication: It is the process of exchange of information between two or more persons to reach common understanding.


Self-actualization needs come after ……… needs have been fulfilled.

[A]. Safety, Physiological
[B]. Belongingness
[C]. Esteem
[D]. All of the above

Semantic barriers are related to

[A]. Personal barriers
[B]. Language related issues
[C]. Psychological barriers
[D]. Organisational barriers

Lengthy scalar chain is a type of which communication barrier?

[A]. Personal barriers
[B]. Language related issues
[C]. Organisational barriers
[D]. Psychological barriers

Motivation methods could be

[A]. Positive
[B]. Negative
[C]. Both [a] and [b]
[D]. Neutral
Features of Motivation
    • 1. Motivation is an Internal feeling
    • 2. Goal Directed Behaviour
    • 3. Motivation can be either positive or Negative
    • 4. Complex Process
    • 5. Continuous Process

Leadership consist of

[A]. Influencing the behavior of subordinates
[B]. Delegation and decentralization
[C]. Recruitment and selection
[D]. All of the above

……. function ensures quality and quantity of work.

[A]. Leadership
[B]. Communication
[C]. Supervision
[D]. Motivation

Which type of communication is free from all types of formalities.

[A]. Informal
[B]. Diagonal
[C]. Horizontal
[D]. Vertical

The advantages of motivation are

[A]. Reduces absenteeism
[B]. Reduces labor turnover
[C]. Improving morale
[D]. All of the above
Assumptions of Maslow’s Theory
    • (i) People’s behaviour is based on their needs.
    • (ii) People’s needs are in hierarchical order.
    • (iii) A satisfied need can no longer motivate a person.
    • (iv) A person moves to the next higher level of hierarchy only when the lower need is satisfied.

In some questions, there is an option ‘all of the above’. What is the significance of this statement.

It means the options usually the first 3 are correct. On most occasions, that could be the correct answer.

How are MCQs evaluated?

In board examination, MCQs are evaluated manually. However, in some competitive exam, they are evaluated by using computer software.

What are the important sub-topic for preparing MCQs in chapter 7 (directing class 12th business studies)?

Maslow’s theory having 5 types of human needs is the most important sub-topic followed by different types of barriers to communication.