Topic 3: Organization Management

Sixth Semester Management MCQ’s Organizational Management
TOPIC 3: ORGANIZATION MANAGEMENT
Sr.
Statement Option (a) Option (b) Option (c) Option (d) Ans
No.
Aims are Assignment of
1 Which is the first step in organization forming? Formulating plans Identifying activities b
determined duties
Organization
2 Structure of organization is represented by Organization chart Organization draft None of the above b
brochure
The structure of organization depends on Number of
3 Scope of functions Span of control All of the above d
_______________________________. employees
The structure of organization is not dependent on
4 Resources available Communication Profit margin Span of control c
________________________.
5 Which is are the aims of forming organization? Teamwork Combined efforts Responsibility on all All are correct d
Line and staff Functional Project

6 Decision are very quick in Line organization c
organization organization organization
Which is not the correct advantage of Line
7 Easy to understand Confusion is less specialized It is simple c
Organization?
Which is not the correct disadvantage of Line Lack of Overlapping of
8 Nobody is overloaded Poor performance a
organization? specialization activities
9 At which place line organization is not possible? Government company Tiny films Military department Small workshop a
10 Which are the essential of organization? Organization chart Delegations Integration All d
Which is the important factor in deciding structure of

11 Functions Specialization Types of product All d
organization?
Vertical dimension of organization structure defines Both hierarchy and

12 Departmentation Hierarchy None of the above b
_____________________. departmentation
Scalar organization is also known as Functional Project

13 Staff organization Line organization d
__________________________. organization organization
14 Line organization is of __________________ type. Horizontal Vertical Both None b
Designed & Developed by – S. K. Rawat 3.1

15 Military type organization is seen in ____________________. Project Staff Line and staff Line d
Functional organization is also called as

16 Project organization Staff organization Line organization None of the above b
______________________.
______________________ is a process of dividing large

17 organization into small and flexible administrative Divisions formation defragmentation Departmentation none c
units.
To make people To give freedom to

18 Which is the aim of departmentation? To distribute work All of the above d
specialized each function
More productive than Standardization is Performance better
19 Which is the correct advantage of staff organization? All d
line process than line
Which is not the correct disadvantage of staff Difficult to handle Lack of Discipline in
20 Ego of specialty b
organization? experts specialization lacking
21 Which organization is temporary in nature? Project Staff Line and staff Line a
22 Which is not the type of departmentation? By function By product By process By material pattern d
Authority and
23 Which is the principle of organization? Delegation Span of control All d
responsibility
The total number of subordinates handle by one

24 Span of control responsibility Delegation None a
manager effectively is called as________________________.
_________________ check the result, _______________ shows Authority, Responsibility, Responsibility, Authority,
25 a
the result. responsibility authority responsibility authority
Decision-making Knowledge of Independent
26 Which is the pre-requisite the effective delegation? All of above d
freedom designation subordinate
Establishing
27 Which is the first step in effective delegation? Training Goals establishment None c
responsibility
Car division in Tata Motors is example of Departmentation by Departmentation by Departmentation by
28 None b
__________________. function product process
People become expert
Which statement is wrong? In product type Product become Attention is given to No duplicate of
29 in the work allotted to d
departmentation name brand name the product work
them

Sales department in Nokia is example of Departmentation by Departmentation by Departmentation by

30 none a
__________________________. function process product
Heat treatment shop in Kirloskar is the example of Departmentation by Departmentation by Departmentation by
31 none b
______________________. function process product
32 Meeting is a _______________ communication. Written Non-verbal Forma Both a and b c
Control of Centre Stress level on Work can be Work load is

33 Which is not the advantage of delegation? a
increases manager reduced finished in time reduced
34 Ability to adjust, change, bend is _________. Ability Balance Stability Flexibility d
35 Request is the ________________ communication. Downward Upward Both a and b None b
Following business is not coming under sole Insurance

36 Press shop Hardware unit Service centre a
proprietorship? corporation
37 How many patterns can be eligible for partnership? 1 to 10 2 to 5 2 All are correct d
38 Which is incorrect type of partner? Nominal Perfect Active Slipping b

Do not share Don not active in Also called as silent
39 About sleeping partner which statement is wrong? They do investment a
profit/loss daily work partner
40 Which is barrier in communication? Confused information Poor knowledge Language problem All d
Which is the factor responsible in the selection of type
41 Types of business Scope of business Capital required All d
of ownership?
Easy to from a Documentation is Business
42 Which is not the advantage of sole proprietorship? Freedom of work d
business less growth is faster
‘Achievement do to one, will be share by all others’.

43 Limited partnership General partnership Both None b
This happens in____
44 All partners have the same states in ___________________. Nominal partner ship General partnership Limited partnership None b
Limited resources are Decision may be

45 Which is not the limitation of proprietorship? Growth rate is small Corruption is more c
available wrong
Business can use their Do not actively
46 Which statement is correct about ’nominal partners’? Do not invest All are correct d
names involved

47 Which is the type of partnership? Privet Limited General Both b and c d
48 Which is included in the ‘partnership deed’? Name of partners Location of work Name of the firm All d
Public limited Privet limited

49 Which is not the type of the joint stock company? Public sector None a
company company
Maximum members in private limited company
50 50 20 30 10 a
are_____
51 Minimum members in private limited company are____ 20 5 10 2 d
Minimum number of directors in public limited

52 7 10 2 3 d
company are ____
Partnership
53 Agreement between partners is called as____ Partnership draft Partnership deed Partnership sheet c
document
54 Highest business secrecy is in___ Co-operative society Government sector Sole proprietorship Partnership c
55 Unlimited liability is there in____ Partnership Proprietorship Both a and b None c
Business life is There is limited No transfer of
56 Which statement is wrong about partnership? It is a joint business c
depend of partners liability partnership
Political
Heavy cost of Flexibility In Formation is
57 Which is not the limitation of joint stock company? interference is b
management business is less lengthy process
more
Maximum shareholders in public limited company
58 50 10 7 No limit d
are_____
59 Minimum shareholder in public limited company____ 50 7 2 10 b
Effective division of Business life is

60 Which is not the advantage of joint stock company? No autocracy Easy to form b
work longer
61 Maximum members in co-operative society are____ 500 100 50 No limit d
Providing service to
62 The basic aim of government sector is earning profit Earning profit None a
society
Balanced regional Employment
63 Which is the objective of public Sector? Public welfare All d
growth opportunity

Public limited Government

64 Which is not the type of public sector? Public company Public co-operation b
company department
Members are
Beneficial to common Straightens rural Business growth is
65 Which is not the advantage of co-operative society? involve in decision d
man economic faster
making
Political
Government support Professionalism is Decision-making is
66 Which is not the limitation of co-operative society interference is a
is less very poor slow
more
67 Government sector is also called as___ Service sector Public sector People sector Nation sector b
Public limited government

68 Highest control of government is there in____ Public co-operation Public company d
company department
69 Secrecy is least in____ Joint stock Partnership proprietorship Public sector d
Huge capital can be
70 Which is not the advantage of public sector? Secrecy is more Job security Liability is limited b
raised
More political Decision making is
71 Which is not limitation of public sector? Productivity is less Unlimited liability d
interference slow
72 Documentation is less in _____ Joint stock Partnership Sole proprietorship Public sector c
73 Maximum security of job is in _____ Co-operative Public sector Joint stock partnership b
In a Joint stock company, loans are repaid by the
74 Members Promoters company None of the above c
_______.
A private limited company can have minimum____ and
75 4,50 4,20 2,50 2,20 c
maximum _____.
In a Private limited company, generally ______are the friends and family
76 partners neighbours anyone c
members. members
A company in which not less ____ of the paid up share
77 capital is held by government is known as a 48% 49% 50% 51% d
government company.
In line organisation, the authority flows from subordinate to subordinate to superior to
78 superior to superior d
_____________________. subordinate superior subordinate
In line organisation, who is responsible for final The superior
79 The workers. The managers The foreman c
results? authority
80 ______ does not pay taxes on profit earned Partnership Private Limited Public Ltd. Company All of the above a

81 Line organisation is _________________. Rigid Flexible Strong Expensive b

Private Ltd.
82 What sort of company is Infosys? Public Limited partnership None of them a
company
In functional organisation activities are grouped by
83 Common Separate Grouped Special a
_____function
According to law, ______ is not viewed as a separate
84 Entrepreneur Partner Company Proprietorship d
legal entity
85 In functional organising, line authority; Does not exists Certainly exists Partially exists Somewhat exits b
______ is a voluntary organisation formed to serve the Public Limited
86 Cooperative society Company None of them a
members and the welfare of society Company
87 Line organisation lacks: Co-ordination Conflicts Specialisation Nothing c
Functional
88 Line and staff organisation is modification of: Staff organisation Special organisation Line organisation d
organisation
89 The staff specialist provides _____ to line managers Machines work advice orders c
Which of the following is not the advantage of a public Professional

90 Quick information Large capital Limited Liability a
limited company Management
The various departments in a company are: capacitors,

91 sensors, resistors, and fuses. It's an example of Process Product Function Project b
departmentation on the basis of:
92 Project organisation is a ______ organisation structure. Temporary Permanent Annual Quarterly a
Assistant to the president of a company refers to which

93 Line Functional Assistant Staff d
type of authority?
Members of a project organisation are from ______
94 Higher H.R. Functional C.E.O. c
departments
Within the Outside the
95 In a project organisation, the members can be from: None of the above a and b d
organisation organisation
A public limited company can have minimum____ and

96 2, unlimited 2,100 4,100 7, unlimited d
maximum _____ members.

Which of the following can be considered as a project Manufacturing of Installation of a

97 Car production None of the above c
organisation parts dairy
it takes less time to maximum use of decision are taken
98 The advantages of project organisation are none of above b
complete special knowledge independently
the process of ______of tasks of similar nature is known

99 arranging deciding aligning grouping d
as departmentation
100 in a department the _____is in charge of department manager H.R. C.E.Os. project manager a
Suggest a suitable form of ownership for a bicycle

101 public limited private limited partnership None of them d
repair business.
memorandum of association of a company does not

102 purpose liability authorised capital dividend d
contain:
Departmentation helps to improve the ____of an
103 effectiveness life quality skills a
organisation.
104 _____ is right to issues orders. Responsibility span stability authority d
Which of the following is not an element of
105 feedback noise span message c
communication process?
______ is the legitimate power to exercise influence,
106 make decision, and carry out actions and to direct C.E.Os. supervisor responsibility authority d
others.
______is essential to direct, direct, guide, instruct, and
107 manager authority responsibility chairman b
order the subordinate.
The authority that a ___possesses is known as line
108 subordinate manager superior chief executives c
authority.
The life and existence of a _________________ doesn’t
109 partnership entrepreneurship proprietorship company d
depend upon the life of members.
______ authority is the right given to an individual or a
Functional
110 department to control specified processes or activities Line Project Job a
organisation
in other departments.
Which of the following in not the responsibility of a controlling
111 quality quantity storage of goods c
production manager? accidents

112 The persons forming a joint stock company are_____ Partner Entrepreneurs Promoters Investors c
The process of concentration of ______ authority with

113 Top Functional Line Decision Making d
the top management is known as centralisation.
Greater Self
Greater Fluency of
114 Which is the advantage of Centralisation? Greater Quality Greater Control Satisfaction among b
work
the Staff
In centralisation the skills of the middle level
115 Increased Decreased Underestimated Underutilised d
management are:
With_____, the top management can focus on strategic
116 Work Processes Centralisation Decentralisation c
issues for finding new avenues and opportunities.
117 In partnership, the partners have unlimited liability: True False partly true partly false a
118 the speed of decision making is quick in ___ centralisation decentralisation span of control none of above a
____ is the number of subordinates that can be
119 centralisation decentralisation span of control none of above c
effectively supervised.
120 The organisation always prefers____ span of control. small economical wide narrow c
121 in a tall organisation structure, the span of control is: economical big wide narrow d
122 In a flat organisation structure the span of control is: small economical wide narrow c
Which of the following is the advantage of a narrow

123 closer supervision lower overhead economical more delegation a
span?
Lower skilled Lower operational Good
124 Which of the following is the advantage of a wide span? Monitoring is easy c
managed easily cost communication
125 Supervisors with high ability can have___. narrow span wide span big span small span b
126 Managers at lower level can have _______span of control. wide narrow low high a
When complexity of work is more than _____ is
127 narrow span wide span big span small span a
preferable.
Delegation is a right given by a _______to _______to make superior
128 manager, employee C.E.Os., h.r manager, supervisor d
decisions. ,subordinate
129 Organisation is a/an _______system. closed exposed open none of above c
In order to have flexibility activities must be supported
130 co-ordinate adaptive supportive financial b
by _____ activates.
extensive market outsourcing of materials
131 Which of the following is not an adaptive activity? modified plans c
research services development

Minimum ___ and maximum ____persons can be

132 4,20 2,20 4,10 2,10 b
partners in a business.
permanent address
which one of following is not included in the "contents name of partnership duration of
133 of partnership face value of share d
of partnership “deed firm partnership
business
134 _____concentrates on development of the organisation. availability stability productivity flexibility b
135 Stability is reluctance to_______. change productivity availability predictability a
136 Communication is the transfer of ________. words speech message saying c
137 Noise is the _____in communication. medium transmitter both a and b barrier d
The communication process is said to be completed
138 received read understood seen c
only when receiver has _____ the message.
Which one of the following is not a form of
139 Downward Upward Horizontal Diagonal d
communication?
Which is unimportant word in the definition of
140 Group of person Profit Common aim United together b
organization?
employees doing
group of 15 people on Meeting members in Labour working on
141 Following group is not an organization? discussion in work a
bus stop a company a site
area
142 Which are the aims of forming organization? Teamwork Combined efforts Responsibility on all All are correct d
Organization is an
It has aims and Organization has no Organization is a
143 Which statement is wrong? group of working c
objective boundaries system
people
Aims are
144 Which is the first step in organization forming Assignment of duties Identifying activities Formulating plans b
determined
Organization
145 Structure of organization is represented by Organization chart Organization draft None of the above a
brochure
146 Which are the essentials of organization Organizational chart Delegation Integration All d
Which is the important factor in deciding structure of
147 Type of product Specialization Functions All d
organization
Both hierarchy and
148 Vertical dimension of organization structure defines Departmentation Hierarchy None of the above b
departmentation
Project Functional
149 Scalar organization is also known as Line organization Staff organization a
organization organization
150 Line organization is of _____ type Horizontal Vertical Both None b
Military type organization is seen in _____________
151 Line Staff Line and staff Project a
organization.

Functional Line and staff Project

152 Decision are very quick in Line organization a
Which is not the correct advantage of Line
153 It is simple Confusion is less Specialized Easy to understand c
organization?
Which is not the correct disadvantage of Line Lack of Overlapping of Nobody is
154 Poor performance d
organization specification activities overloaded
Government
155 At which place line organization is not possible? Small workshops Tiny firms Military department d
company
Small process
156 Where line organization is applicable? Workshop Small firms industries with All d
automation
157 Functional organization is also called as _________________ Line organization Staff organization Project organization None of the above b
158 Functional organization is ____________ in structure. Horizontal Vertical Both (a) and (b) None a
Performance better Standardization in More productivity
159 Which are the correct advantages of staff organization? All d
than line process than line
Which is not the correct disadvantage of staff Lack of Difficult to handle
160 Discipline is lacking Ego of specialty b
organization? specialization expert
Both horizontal and
161 Line and staff organization is _______________ structure Horizontal vertical None c
vertical
162 Which organization Is temporary in nature? Line Staff Line and staff Project d
163 Project organization has _________________________ forms. Balanced matrix Project matrix Functional matrix All d
Heavy pleasures of Complication of Differences of
164 Which is the correct limitation of project organization? All d
work function opinions
_____ is a process of dividing large organization into
165 Departmentation Defragmentation Division formation None a
small and flexible administrative units
To make people To give freedom for
166 Which is the aim of departmentation? To distribute work All the above d
To avoid inter
To make the power To make people
167 Following is not the aim of departmentation. To distribute work mixing of many b
centralize specialize
function
168 Which is not the type of departmentation? By product By function By process By material pattern d
Car division in Tata motors is example of Departmental of by Departmentation by Departmentation by
169 None a
_______________________. product function process
Which statement is wrong? In product type attention is given to product many people become no duplication of
170 d
departmentation, _________________________________________ the product become brand expert in the work work
Designed & Developed by – S. K. Rawat

3.10
name allotted to then
Sales department in Nokia is example of Departmentation by Departmentation by Departmentation by

171 None c
___________________ product process function
Authority and
172 Which is the principle of organization? Span of control delegation All d
responsibility
Number of sub ordinates handled by one manager
173 Delegation Responsibility Span of control None c
effectively is called as ___________________
___________________ check the result and ___________________ Authority, Responsibility, Responsibility,
174 Authority, authority a
shows the result responsibility authority responsibility
Knowledge of Decision making Independent sub
175 Which is the pre-requisite of effective delegations? All the above d
designation freedom ordinates
Establishing
176 Which is the first step in effective delegations? Goals establishment Training None a
responsibility
Stress level manger Work can be Controls form
177 Which is not the advantage of delegation? Work load is reduce d
reduce finished in time centre increases
178 Ability to adjust, change, bend, is ___________________ Flexibility Balance Stability Ability a
179 Following is not the type of communication Oral Written Horizontal Clear d
180 Instruction is the ___________________ communication Upward downward In formal Horizontal b
181 Meeting is the ___________________ communication Formal Non verbal Written Both (b) and (c) a
182 Request is the ___________________ communication Upward Downward Both (a and (b) None a
183 Which is barrier in communication? Language problem Poor knowledge Confuse information All d
Which is the factor responsible in the selection of type
184 Capital require Scope of business Type of business All d
of ownership?
Owner is
185 Which statement is wrong? Has single owner Owner is supreme Has limited liability c
responsible for all
Business growth is easy to from Documentation is
186 Which is not the advantage of sole proprietorship? Freedom of work a
faster business less
Decision may be Limited resource is
187 Which is not the limitation of scope of proprietorship? Growth rate is small Corruption is more c
wrong available
Which business does not belong to sole Insurance
188 Crevice centre Press shop Hardware unit d
proprietorship? corporation

3.11
189 How many partners can be eligible for partnership? 2 2 to 5 2 to 10 All are correct d
190 Which is incorrect type of partner? Active Perfect Nominal Sleeping b

Also called as client Do not active in Do not share profit
191 About sleeping partner which statement is wrong? The do investment d
partner daily work or loss
Do not actively in Business can use
192 Which statement is correct above nominal partner? Do not invest All are correct d
hold their names
193 Which is the type of partnership? General Limited Private Both A and b d
Achievement do to one will be share by all others this
194 General partnership Limited partnership Both None a
happiness in ___________________
Nominal
195 All partners have the same status in ___________________ General partnership Limited partnership None a
partnership
196 Which is included in the partnership deed? Name of the form Location of work name of partners All d
Agreement between partners is called as Partnership
197 Partnership did Partnership draft Partnership sheet a
___________________ document
198 Highest business secure is in ___________________ Partnership Government sector Sole proprietorship Cooperative society c
199 Unlimited liability is there in ___________________ Proprietorship Partnership Both a and b None c
Business life is
There is limited No transfer of
200 Which statement is wrong about partnership? dependent on It is a join business a
liability partnership
partners
Public limited
201 Which is not type of joint stock company? Private ltd. Company Public sector None c
company
Maximum numbers in private limited company are
202 10 20 30 50 d
________.
203 Minimum members in private limited company are 2 5 10 20 a
Minimum members of directors in public limited
204 2 3 7 10 b
company are __________________.
Maximum shareholders in public limited company are
205 7 10 50 No limit d
_____________.
Minimum shareholders in public limited company are
206 2 7 50 100 b
____________.
Effective division of
207 Which is not the advantage of joint stock company? Business life is longer Easy to form No autocracy b
work

3.12
Political interface is Heavy cost of Flexibility is Formation is

208 Which is not the limitation of joint stock company? a
more management business is less lengthy process
209 Maximum members in co-operative society are _____. 50 100 500 No limit d
Works on democratic Membership is Ownership is in the It is private
210 Which statement above cooperative society is wrong? c
principle voluntary and sub government ownership
Members of
Beneficial to common Business growth is Strengthens rural
211 Which is not the advantage of co-operative society? involved in decision b
man faster economy
making
Political interface is Professionalism is Decision making is Government
212 Which is not the limitation of cooperative society? d
more very poor slow support is less
213 Government sector is also called as ___________________ Public sector Service sector People sector None a
The basic aim of the government sector is Providing crevice to
214 Earning profit earning same None c
___________________ society
Employment Balance regional
215 Which is the objective of public sector? Public welfare All d
opportunities growth
Government Public limited
216 Which is not the type of public sector? Public corporation Public company b
department company
Highest control of government is there in Government Public limited
217 Public corporation Public company a
___________________ department company
Huge capital can be
218 Which is not the advantage of public sector? Liability is limited Secrecy is more Job security b
raised
Decision making is More political Unlimited
219 Which is not the limitation of public sector? Productivity is less d
slow interface billability
220 Documentation is less in ___________________ Sole proprietorship Partnership Joint stock Public sector a
221 Maximum security of job is in ___________________ Partnership Public sector Joint stock Co-operative b
222 Secrecy is less in ___________________ Property ship Partnership Joint stock Public sector d
Well organized and
The main components of the organization are Clearly defined Suitable division of
223 coordination group All of the above d
___________________ objectives work and labour
of people
Right division of Effective
The main components of the organization are Predefined and clear
224 authority and communication All of the above d
___________________ policies procedures
responsibility system

3.13
Important tool of
Organization has following characteristics Small or large group Group of leaded
225 management is All of the above d
___________________ of people executive leader
organization
Organization
establishes a Organization
Organization has following characteristics Allocates duties and
226 relationship controls the efforts All of the above d
___________________ responsibilities
between authority of the group
and responsibility
Set of defined Well organization Proper division of
227 Elements of organization are ___________________ All of the above d
objectives group of people work and labour
Clear and well Proper division of
An effective system
228 Elements of organization are ___________________ defined policies and authority and All of the above d
of communication
procedures responsibility
Establishing
relationships for the
The process of Defining and
Organization can be defined as _________________________ purpose of enabling
identifying and delegating
229 _____________________________________________________________ people to work most All of the above d
grouping the work to responsibility and
_____________________________________________________________. effectively together
be performed authority
in accomplishing
objectives
Association and
Understanding and
relation of basic Responsibility and
230 The principles of organization are: formulating of All of the above d
components of the authority
objectives
organization
Division and Proper delegation of
231 The principles of organization are: Span of control All of the above d
grouping of work work
Nature of the Complexity of the
Size of the
232 Which factors decide the type or organization? product being problems being All of the above d
organization
manufactured faced
Commonly known forms of organization structures are Line , military or Line and staff Functional
233 All of the above d
___________________ scalar organization organization organization
_______________________ is one of the simplest types of Line and staff Functional
234 Line organization All of the above a

3.14
Line organization is also called as ________________________ Line and staff Functional

235 Military organization All of the above a
or scalar organization organization organization
Automated
236 The process of organization is used for ________________. Small businesses Military All of the above d
industries
Flexible structure Easy addition and
237 Which is the advantage of line organization? Simple and easy and easy to expand removed of All of the above d
or contract members
Easy communication Almost no Working speed in High degree of
238 Advantages of line organization are d
among employees confusion exist fast discipline
Neglects area of Highly skilled and
May overload
239 Disadvantages of line organization are specialization of qualified people are All of the above d
employees
employees employees
The line organization is developed step by step to Line and staff Functional
240 Line organization All of the above d
shape as the _____________________________. organization organization
The __________________________________ makes a
Line and staff Functional
241 combination of the line organization with staff Line organization All of the above b
departments that helps and advice line departments
Expert advice is
available from Perfect work No work
242 Advantages of line and staff organization All of the above d
specialist staff division overloading
executives
Improved product Duties are clear to System function
243 Advantages of line and staff organization All of the above d
quality each person smoothly
More people more
Increase in cost of confusion and
Unclear functions
244 Disadvantages of line and staff organization product because of breaking rules and All of the above d
create confusions
increase in staff regulation by line of
executions
The _________________________________ mainly focuses on the
Line and staff Functional
245 specialized area of the person and the person does the Line organization All of the above c
same job. This is also known as staff organization type
Because of
Better quality of
specialization , Expert advice can
246 Merits of function organization are products can be All of the above d
responsibilities are be received
produced
fixed

3.15
Coordination or
Assigning of new job
difficult as many Maintaining
247 Demerits or disadvantages of function organization is difficult because of All of the above d
people are working discipline is difficult
specialization
on the same level
Line and staff Functional Project
248 ______________________________________ are internally formed Line organization d
These organization
Features of project organization are _____________________ Organization are Less number of
249 are generally All of the above d
______________________________________________________________. internally formed employees
temporary
250 Which is the type of project organization? Function based Project based Matrix based All of the above d
This structure
The scope of work is
Teamwork is not reduces
251 Advantages of project organization limited so efficiency is All of the above d
emphasized communication and
more
decision making
Temporary nature of Loose bonding in Functions are
252 Disadvantages of project organization All of the above d
organization groups complicated
Managers are
Duties and authority Persons can be allowed to take
253 Advantages of departmentation are precisely known made accountable initiative and lean All of the above d
so efficiency is more for the results new managerial
skills
Departmentation can be done on the basis of following Customers or
254 Process Product All of the above d
factors: Markets
Every product
Evaluation of
division or It is possible to find
performance of
Advantages of departmentation by product are department can be out profitable and
255 every product line All of the above d
___________________ made accountable for non-profitable
can be done
profit or loss incurred product lines
individually
by it
Services are Man power
Disadvantages of departmentation by product are Management cost is
256 duplicated or requirements are All of the above d
___________________ increased
repeated more
___________________ is accountability. It is an obligation of
257 Authority Responsibility communication All of the above b
a subordinate to his/her boss to do given work
__________________ means right (to command) and power
258 Authority Responsibility communication All of the above a
to act.

3.16
________________________________ stands for granting of

authority to subordinates to accomplish or perform a Delegation of
259 Responsibility Effective delegation All of the above a
particular assignment while operating within pre- authority
decided limits and standards established.
Parity between
Responsibility in Principle of unity of
260 Principles of delegation of authority are: authority and All of the above d
terms of results command
responsibility
Trained and Capacity of
261 The span of control depends on the factors like experienced Type of work executive or All of the above d
subordinate manager
Wider span of control Inexperienced
Ego problems may
262 Limitations of span of control: may not be managed subordinates may All of the above d
arise
by executive create problems
_______________________________ means giving right works Delegation of
263 Responsibility Effective delegation All of the above c
to the right person authority
_______________________________ allows executive to give
Delegation of
264 opportunity to his subordinates to think, make work Responsibility Effective delegation All of the above c
authority
related decision, and get developed.
Absence of ________________ in units will lead to the
265 Balanced Stability Flexibility All of the above a
failure in achieving organizational goal.
_________________________ means adequate resources, men
266 power and necessary authority for smooth functioning Balanced Stability Flexibility All of the above a
of department
_______________________________ of organization means a
267 capacity to tolerate losses because of key person Balanced Stability Flexibility All of the above b
leaving organization
_________________________ ensure that in absence of these
268 key person organization do not make any losses and Balanced Stability Flexibility All of the above b
fun run smoothly towards its growth
To ensure _______________ a long term planning related to
269 the required manpower and training and development Balanced Stability Flexibility All of the above b
for employees is required
Organizational ________ is mainly about adjusting work
270 assignment, man power, and facilities that are required Balanced Stability Flexibility All of the above c
when temporary changes occur while working

3.17
________________________ allows bending and blending

271 Balanced Stability Flexibility All of the above b
without experiencing any grave setback or delay
_______________________ can culminate into strikes or
Good
272 fights among employees and cause serious Communication Miscommunication All of the above c
communication
consequences to the organization
A ________________________________ assists in taking
Good
273 decisions correctly and also implementing it effectively Communication Miscommunication All of the above b
communication
and effectively
_______________________ communication takes place from
274 Downward Upward Horizontal Unofficial a
top executive to the lowest grade of the employee
________________________ communication could be
275 Downward Upward Horizontal Unofficial a
information or instructions
Downward Upward Horizontal Unofficial
276 ________________________________ is from bottom to top. b
communication communication communication communication
________________________________ is generally from lowest Downward Upward Horizontal Unofficial
277 b
grade employee to the top executive communication communication communication communication
________________________________ could be in the form of Downward Upward Horizontal Unofficial
278 b
suggestions, complaints, feedback, orientation etc. communication communication communication communication
________________________________ takes place among Downward Upward Horizontal Unofficial
279 c
employees who have same level of authority communication communication communication communication
________________________________ could be rumours or
gossips. Sometimes rumours could be a truth but it Downward Upward Horizontal Unofficial
280 d
creates a wrong picture. Effective communication communication communication communication communication
system can help in improving official communication
Forms of the organization are dependent on
281 Type of business Type of product Both(a) and (b) None of above c
___________________________.
In _____________________, the owner of the organization is Joint Stock Cooperative
282 Single ownership Partnership a
proprietor i.e. a single person companies organization
In ___________________, firm there could be two or even
Joint Stock Cooperative
283 more than two partners are there who share all profits Single ownership Partnership b
companies organization
and expenses
A _______________ society is group shareholders. Joint Stock Cooperative
284 Single ownership Partnership c
(individuals) companies organization

3.18
________________________________ are private and mainly

Joint Stock Cooperative
285 created for providing to the different services to the Single ownership Partnership d
companies organization
individual as well as society
Government sector means the companies which are
State and centre Joint Stock Cooperative
286 public limited and having government undertaking and Partnership a
government companies organization
are formed by _______________________________________.
______________________ can be defined as running business
287 Proprietorship Partnership Privet limited Public limited a
by the single owner
In simple words the _________________ can be defined as
the association of two or more people doing business
288 Proprietorship Partnership Private limited Public limited b
together to share the profit and expenses coming out
of the business
In ___________________ capital is raised by partners. So
289 Proprietorship Partnership Privet limited Public limited b
profit, losses of and expenses are share
A ___________________ contributes capital, shares profit
290 Sleeping partner Active partner Secret partner Nominal partner a
and losses of firm
___________________ partner dose not contribute in day to
291 Sleeping partner Active partner Secret partner Nominal partner a
day activity or affairs of firm
The ___________________ text part in all day to day
292 Sleeping partner Active partner Secret partner Nominal partner b
activities or management
293 The ___________________ is also known as working partner Sleeping partner Active partner Secret partner Nominal partner b
___________________ could be manager , organizer, adviser

294 Sleeping partner Active partner Secret partner Nominal partner b
or controller
A partner who is not publically known as a partner but
295 takes active part in the affairs of a business is Sleeping partner Active partner Secret partner Nominal partner c
___________________
___________________ contributes in terms of their goodwill
296 Sleeping partner Active partner Secret partner Nominal partner d
and credit from the market
Legally ___________________ are not allowed but still may Partners in profit
297 Sleeping partner minor partner Partner at will b
they exit with the consent of others partners only
The ___________________, continue partnership till the
Partners in profit
298 mutual faith, truth or confidence exist among all Sleeping partner minor partner Partner at will c
only
partners

3.19
The __________________ share only profit and not the liable Partner s in profit
299 Sleeping partner minor partner Partner at will d
for anything. only
Decision making
Responsibility are
300 Which one of these is an advantage of partnership? becomes easy and Capital is share All of above c
share
meaningful
Because of large There could be
scope, business may confusion because
301 Which one is the disadvantage of partnership firms? Profits and share All of the above d
become complicated of involvement of
activity many peoples
From the following options, which is partnership type Manufacturing Software
302 Legal firms All of the above d
of ownership? industries development firms
Private limited joint Public limited joint
306 Types of joint stock companies are Both a and b None c
stock company stock company
In ______________________ shareholders are private people Joint Stock Public Ltd. Joint Stock Private
307 Both a and b None b
not general public Company Ltd. Company
In ______________________ shareholders are unlimited and Joint Stock Public Ltd. Joint Stock Private
308 Both a and b None a
general people Company Ltd. Company
In ______________________ minimum members involved are Joint Stock Public Ltd. Joint Stock Private
2 and maximum are 50 Company Ltd. Company
In _______________________ minimum member involved are Joint Stock Public Ltd. Joint Stock Private
7 and maximum is no limit. Company Ltd. Company
311 More than 20 persons involved in ___________ company. Joint stock Partnership Both a and b None a
Biotechnology Information System, Network
Government
312 department of Consumer Affairs, and Department of Public company Public corporations All of the above a
departments
Education etc., are which types of companies?
Balaji Telefilms, Bank of Maharashtra, Bata India Ltd,
Government
313 Bharat fertilizers Ltd etc., are which types of Public company Public corporations All of the above b
departments
companies?
Life Insurance Corporation of India (LIC) is which type Government
314 Public company Public corporations All of the above c
of company? departments
In __________________________, the capital is collected from Private Ltd
315 Public Ltd Company Both A and B None a
the private partners. Companies
In _______________________ the capital is collected from the Government Public ltd.
316 Public corporations All of the above b
public by issuing shares having small face value. departments company

3.20
Joint stock private limited companies are Not manage by Manage by

_____________________________________________. government government
Public undertaking company are Not manage by Manage by
_________________________________. government government
To make people To give freedom to
319 Which is the aim of departmentation? To distribute work All of the above d
With ___________________, the top management can focus
320 on strategic issues for finding new avenues and Authority Responsibility Centralization Decentralization c
opportunities.
Line and Staff Functional Project
321 Decisions taken are very quick in _______________. Line organization a
Public Limited Private Limited
322 Which is not the type of Joint stock company? Public Sector None of these a
Company Company
The chart below shows the ownerships according to
the main two business sector. Identify the sector on
the left side and right side as per the further
classification of ownership:
Private sector, Public Public sector, Private limited, Public limited,

323 a
sector Private sector Public limited Private limited
The structure of Rubber Department shows the

hierarchy level along with their executives. It has Line and Staff Functional
324 Line organization Project Organization d
which type of Organizational structure? organization Organization

3.21
Identify the type of organization?
Line and Staff Functional Project

325 Line organization c
326 Ability to adjust, bend and change is called _________. Flexibility Balance Stability Ability a
Public deposit is the source of finance for
327 Joint stock company Cooperative society Partnership Proprietorship a
____________________.
Members are
Beneficial to common Straightens rural Business growth is
328 Which is the disadvantage of co-operative society involve in decision d
man economic faster
making

3.22
______________ means managing adequate resources,

329 manpower and necessary authority for smooth Balanced Stability Flexibility All of these a
functioning of department or organization.
330 Which factors determine the basis of departmentation? Process Product Customers All of these d
ABC Consultants has hired you to develop training
materials for their consultants. Your first assignment
is to develop a training program that helps their
consultants to analyze and understand the
organizational structure of the company that they are
Centralization and
331 assisting. They believe that in order to adequately Departmentalization Work specialization Formalization a
decentralization
evaluate and understand the company, they need to
understand the basic organizational structure. Then
they will be able to recommend actions and changes
based on that structure. Now on what basis you would
group the jobs together?
From the given figure, label the number with the
appropriate components of communication process 1- Sender 1- Sender 1- Sender 1- Sender
2- Channel 2- Channel 2- Receiver 2- Noise
332 3- Receiver 3- Receiver 3- Channel 3- Feedback a
4- Noise 4- Feedback 4- Noise 4- Receiver
5- Feedback 5- Noise 5- Feedback 5- Channel
Which of the following business type, has to pay Cooperative Joint stock
333 Sole proprietorship Partnership d
double taxes to the government? Societies company
In ______________, profit, losses and expenses are shared
334 Proprietorship Partnership Private limited Public limited b
by partners.

3.23
Technical-skill
Human skills and Human skills remain
needs remain Both human-skill
technical skills necessary and
necessary and and technical-skill
Which of the following is true concerning technical and remain equally technical-skill needs
335 human skills needs decrease as c
human skills of a manager? important as decrease as
decrease as managers move to
manager’s move to manager’s move to
manager’s move to higher
higher levels higher levels
higher levels
From the figure of levels of management which are the
principles that flows upward and downward?
1- Authority and 1- Command 1- Responsibility

1- Authority
336 responsibility 2- Authority and 2- Authority a
2- Responsibility
2- Command responsibility
Business can use their Do not actively

337 Which statement is false about nominal partners? Do not invest All of these d
names involved
Luxor Writing Instruments Pvt Ltd, was established in
1963 at a small manual assembly shop in Sadar Bazaar
area in Delhi, with manufacturing of fountain pens. As
on today Luxor is a leading manufacturer and exporter
338 of writing instruments from India and also has Joint Stock Company Partnership Proprietorship None of the above a
exclusive rights of manufacturing and distributing 4
international brands in India, viz, Piolet, Papermate,
Parker and Waterman. Which is this type of
ownership?
________ ͟ communication is generally from lower level
339 Downward Upward Horizontal Diagonal b
management to the top executive.

3.24
Amul India is the common brand for product category

like liquid milk, milk powder, butter, ghee, cheese,
cocoa products, sweets, ice-creams, condensed milk
and various other sub-brands. Every day Amul collects
Joint Stock Co-operative
340 almost 5,00,000 litres of milk from 2.2 million farmers Proprietorship Partnership d
Companies Societies
with approximate 10,500 village level milk collection
centers and 14 district level plants based in the village
of Anand, the Khera District Milk Union.
Which type of ownership does Amul India belong to?
Trained and Capacity of
341 Which are factors on which span of control depends? experienced Type of work executive or All of these d
subordinate manager
Public sector
342 Business secrecy is less in _______________________. Proprietorship Partnership Joint stock company d
company
A newly marketing executive is appointed and has
been assigned certain function:
1. to visit the 10-15 doctors daily at specified area
2. promote the product to the doctors
343 3. keep a track of availability of medicine at the Product Process Area Function c
medical stores
4. report to the manager once in a week. Now his
activities of work will come under which type of
departmentation?
Decision making is More political
344 Which one of these is the advantage of public sector? Productivity is less Unlimited liability d
slow interference
Which one is not the disadvantage of staff Lack of
345 Difficult to handle Ego of specialist Lack of discipline b
organization? specialization
346 Which is not the correct type of partner? Nominal Perfect Active Sleeping b
347 The figure depicted below shows departmentation by – Process Product Function Area b

3.25
____________ communication could be in the form of

348 Downward Upward Horizontal Diagonal b
suggestions, complaints, feedback, orientation and etc.
349 Which is different type of project organization? Function based Project based Matrix based All of these d
Which partner contributes in terms of their goodwill
350 Sleeping partner Active partner Secret partner Nominal partner d
and credit from the market?
Manav is a new divisional manager, in reorganizing his Employee
Supervisors become
division; he must make some decisions regarding the performance Wider spans reduce The organization
351 more efficient at c
span of control. He thinks wider spans are more increases effectiveness. becomes taller.
providing support.
efficient in terms of cost but at some point: substantially.

3.26

Topic 3: Organization Management

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Sixth Semester Management MCQ’s Organizational Management

TOPIC 3: ORGANIZATION MANAGEMENT

Line and staff Functional Project

Which is the important factor in deciding structure of

Vertical dimension of organization structure defines Both hierarchy and

Scalar organization is also known as Functional Project

14 Line organization is of __________________ type. Horizontal Vertical Both None b

Designed & Developed by – S. K. Rawat 3.1

Functional organization is also called as

______________________ is a process of dividing large

To make people To give freedom to

The total number of subordinates handle by one

Designed & Developed by – S. K. Rawat 3.2

Sales department in Nokia is example of Departmentation by Departmentation by Departmentation by

32 Meeting is a _______________ communication. Written Non-verbal Forma Both a and b c

Control of Centre Stress level on Work can be Work load is

34 Ability to adjust, change, bend is _________. Ability Balance Stability Flexibility d

35 Request is the ________________ communication. Downward Upward Both a and b None b

Following business is not coming under sole Insurance

38 Which is incorrect type of partner? Nominal Perfect Active Slipping b

‘Achievement do to one, will be share by all others’.

Limited resources are Decision may be

Designed & Developed by – S. K. Rawat 3.3

47 Which is the type of partnership? Privet Limited General Both b and c d

Public limited Privet limited

51 Minimum members in private limited company are____ 20 5 10 2 d

Minimum number of directors in public limited

59 Minimum shareholder in public limited company____ 50 7 2 10 b

Effective division of Business life is

61 Maximum members in co-operative society are____ 500 100 50 No limit d

Designed & Developed by – S. K. Rawat 3.4

Public limited Government

Public limited government

Designed & Developed by – S. K. Rawat 3.5

81 Line organisation is _________________. Rigid Flexible Strong Expensive b

Which of the following is not the advantage of a public Professional

The various departments in a company are: capacitors,

92 Project organisation is a ______ organisation structure. Temporary Permanent Annual Quarterly a

Assistant to the president of a company refers to which

A public limited company can have minimum____ and

Designed & Developed by – S. K. Rawat 3.6

Which of the following can be considered as a project Manufacturing of Installation of a

the process of ______of tasks of similar nature is known

Suggest a suitable form of ownership for a bicycle

memorandum of association of a company does not

Designed & Developed by – S. K. Rawat 3.7

The process of concentration of ______ authority with

Which of the following is the advantage of a narrow

Designed & Developed by – S. K. Rawat 3.8

Minimum ___ and maximum ____persons can be

Designed & Developed by – S. K. Rawat 3.9

Functional Line and staff Project

Designed & Developed by – S. K. Rawat

name allotted to then

Sales department in Nokia is example of Departmentation by Departmentation by Departmentation by

180 Instruction is the ___________________ communication Upward downward In formal Horizontal b

Designed & Developed by – S. K. Rawat

190 Which is incorrect type of partner? Active Perfect Nominal Sleeping b

Designed & Developed by – S. K. Rawat

Political interface is Heavy cost of Flexibility is Formation is

Designed & Developed by – S. K. Rawat

Designed & Developed by – S. K. Rawat

Minimum _ and maximum __persons can be