BUSINESS STUDIES PRACTICE SHEET

CLASS XII COMMERCE

Chapter – 1 Nature and Significance of Management

MULTIPLE CHOICE QUESTIONS

1. The process of getting things done through others is called

(a) Effectiveness

(b) Efficiency

(c) Management

(d) Co-ordination

2. Mr Dhiraj who is an employee in XYZ Pvt. Ltd. Was able to produce the goods in time but at a
higher cost. Mr Dhiraj is

(a) Neither effective nor efficient

(b) Effective but inefficient

(c) Effective only

(d) Efficient only

3. Which of the following is a cost benefit analysis

(a) Effectiveness

(b) Efficiency

(c) Both effectiveness and efficiency

(d) None of the above

4. Under which function of management policies and strategies are formulated

(a) Organising

(b) Planning

(c) Co-ordination

(d) Controlling

5. Organisational objectives are not concerned with

(a) Profit

(b) Survival

(c) Supply of goods and services

(d) Growth
6. An organisation is providing basic amenities like schools and creches to employees. Which
management objective is highlighted.

(a) Organisational objective

(b) Personal objective

(c) Social objective

(d) Group objective

7. Successful organisations do not achieve goals by chance but by following a deliberate process
known as

(a) Planning

(b) Co-ordination

(c) Controlling

(d) Management

8. Educational qualification is the pre- requisite to enter a profession. Which of the following feature
is revealed in the above statement.

(a) Well defined body of knowledge

(b) Restricted Entry

(c) Professional association

(d) Ethical code of conduct.

9. Profit is essential for covering cost and risk of business. Which management objective is discussed
here.

(a) Organisational objective.

(b) Social objective

(c) Personal objective

(d) Profit objective

10. Which of the following is not a function of management.

(a) Planning

(b) Co-ordination

(c) Staffing

(d) Controlling

11. Management is essential for the organisations which are

(a) Non-profit organisations

(b) Service organisations

(c) Social organisations

(d) All of the above

12. People in the organisations carry out diverse tasks with the aim to achieve

(a) Different objectives

(b) Common objectives

(c) Both of the above

(d) None of the above

13. Management is the process of : –

a) Managing the activities of the organization ;

b) Controlling affairs of the organization ;

c) Administering the departments of the organization ;

d) All of the above

14. Which of the following are some of the characteristics of Management : –

a) Management is a goal oriented process ;

b) Management is multi dimensional

c) Management is all pervasive

d) All of the above

15. Which of the following is not an objective of management.

(a) Earning profits.

(b) Growth of the organisation

(c) Providing employment

(d) Policy making

16. Efficiency is concerned with

(a) Doing the right thing

(b) Doing things right

(c) Achieving end results

(d) None of the above

17. Management is defined as

(a) An art

(b) A science

(c) Both art and science

(d) None of the above

18. Policy formulation is a task of

(a) Top-level managers

(b) Middle-level managers

(c) Operational management

(d) All of the above

19. The main objective of an organization is

a) Creating benefit for society

b) Motivating the employees

c) Fulfilling economic objective

d) None of these

20. Personal objective of management is concerned with

a) Increasing capital investment

b) Providing basic amenities

c) Fulfilling social and financial needs of the employees.

d) All of these

21. Rohan works as a production manager in Global Enterprises Limited. He has been given the task
of getting 1000 units of hand woven table mats manufactured at the cost of ₹150 per unit within 10
days. In order to be acknowledged as an effective manager, he must ensure that

(a) The cost of production does not exceed ₹150 per unit

(b) The work is completed within 10 days even at higher cost per unit

(c) The cost of production is less than ₹150 per unit

(d) All of the above

22. “Meena joins an NGO and works diligently to recognise its objective of providing employment to
primarily abled people.” Which organisational goal is being highlighted withinside the above case-

(a) Social objective

(b) Organisational objective

(c) Personal objective

(d) Private objective

23. Jay is working as a marketing manager in a company. Has been given the task of selling 100000
units of a product at the cost of ₹100 per unit within 20 days. He is able to sell all the units within the
stipulated time, but had to sell last 1000 units at 20% discount in order to complete the target. In
such a situation, he will be considered to be
(a) An efficient manager

(b) An effective manager

(c) Both effective and efficient manager

(d) None of the above

24. Tarang Enterprises Limited is planning to increase its sales by 30% in the next quarter. Identify
the feature of management being highlighted in the given statement.

(a) Management is all pervasive

(b) Management is a goal oriented process

(c) Management is a continuous process

(d) All of the above

25. Management is equally important to run a political organisation as it is to run an economic

organisation. Which feature of management is being reflected in the given statement?

(a) Management is goal oriented

(b) Management is multidimensional

(c) Management is all pervasive

(d) Management is a group activity

26. Management translates the works to be carried out in terms of goals to be achieved and assigns
the means to achieve it. This statement relates to

(a) Management of work

(b) Management of people

(c) Management of operations

(d) All of the above

27. Keeping in view the changes in the consumer demands and preferences ‘Tasitemaker Bakery’ has
reduced the sugar and fat content in its products. This approach of business shows that
management is

(a) An intangible force

(b) A group activity

(c) A dynamic function

(d) A multidimensional activity

28. Which of the following is not an organisational objective of management?

(a) Earning enough revenue to cover costs

(b) Earning sufficient profits to cover risks of business

(c) Increase in the prospects of business in the long run

(d) Providing free education to their employees children

29. Management is considered important because

(a) It helps an organisation to adapt to the changes

(b) Seeks to integrate individual efforts

(c) It helps in development of the society

(d) All of the above

30. Management is considered to be an art because

(a) The principles of management have universal validity

(b) The principles of management have universal application

(c) Different principles of management are brought into effect differently by different managers

(d) It is not important for the practising managers to be a member of a professional association.

31. The authority-responsibility relationships that exist within the organisation give rise to

(a) Different functions within the organisation

(b) Different levels in the organisation

(c) Management as a multidimensional activity

(d) Management as a group activity

32. Which of the following statements does not pertain to middle level management?

(a) They are responsible for all the activities of the operational managers.

(b) They are responsible for the welfare and survival of the organisation.

(c) The interpreter the policies made by top level managers

(d) Co-operate with other departments for the smooth running of the organisation.

33. This function of management relating to laying down the foundation for carrying out the other
functions of management successfully is

(a) Organising

(b) Staffing

(c) Planning

(d) Controlling

34. Which of the following point supports the fact that ‘Management is a Profession’

(a) Personalised application

(b) Principles are based on experimentation

(c) Service motive

(d) Based on practice and creativity

35. Ram is working as a superintendent in a factory. State the level of management at which he is
working.

(a) Top level

(b) Middle level

(c) Supervisory level

(d) Administrative level

36. Supervision, communication, motivation and leadership are the key elements of this • function
of management.

(a) Directing

(b) Controlling

(c) Planning

(d) Organising

37. This function of Management related to placing the right person at the right job is

(a) Organising

(b) Staffing

(c) Planning

(d) Controlling

38. “They are subordinates to top management and superior to first line managers.” Which level of
management is highlighted in this statement?

a) Top management

b) Middle management

c) Bottom management

d) None of these

39. Vipin is working as a marketing manager in ABC Ltd. State the level of management at which he
is working.

(a) Top level

(b) Middle level

(c) Supervisory level

(d) Operational level

40. Which of the following is not included in the top management.

(a) Accountant
(b) Managing Director

(c) Chief executive officer

(d) Board of directors

41. It is a force that binds all the functions Of management.

(a) Cooperation

(b) Co-ordination

(c) Planning

(d) Management hierarchy

42. Co-ordination is considered to be the essence of management because

(a) It is a common thread that runs through all the activities within the organisation

(b) It is implicit and inherent in all functions of the organisation

(c) It is a force that binds all the functions of management

(d) All of the above

43. Co-ordination is

(a) Function of management

(b) Essence of management

(c) objective of management

(d) None of the above

44. Identify the process that provides the requisite amount, quality, timing and sequence of efforts,
which ensures that planned objectives are achieved with a minimum of conflict.

(a) Management

(b) Planning

(c) Co-ordination

(d) Controlling

45. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is
not a one time function, it begins at the planning stage and continue till controlling.”

(a) Coordination ensures unity of action

(b) Coordination is an all pervasive function

(c) Coordination is a continuous process

(d) Coordination is a deliberate function

46. Which of the following is not a feature of Coordination?

a) Coordination is a function of management

b) Coordination is a pervasive function

c) Coordination integrates group efforts

d) Coordination is the responsibility of all the managers

47. The style of singing of Arijit Singh and Honey singh are not at all similar to each other, however
they have acquired same knowledge of ragas. Identify the feature of art discussed above.

(a) Personsalised application

(b) based on practice and creativity

(c) Existence of theoretical knowledge

(d) Universal validity.

48. The authority-responsibility relationships that exist within the organisation give rise to

(a) Different functions within the organisation

(b) Different levels in the organisation

(c) Management as a multidimensional activity

(d) Management as a group activity

49. Which process work as a binding force between different departments?

(a) Cooperation

(b) Co-ordination

(c) Planning

(d) Management hierarchy.

50. Which of the following is not a feature of Coordination?

a) Coordination is a function of management

b) Coordination is a pervasive function

c) Coordination integrates group efforts

d) Coordination is the responsibility of all the managers.

FILL IN THE BLANKS

1. ________ is a force that binds all the functions of management.

2. ________function of Management related to placing the right person at the right job.

3. The main task of _______level of management is to determine the overall organisational

objectives and strategies for their realisation.

4. Management translates the works to be carried out in terms of goals to be achieved and assigns
the means to achieve it. This statement relates to management of _________.
5. Hansraj limited target production was 30,000 units in a year. Production manger was able to
achieve the target but at a higher production cost. In this case manager is ________but not_____.

6. Marketing and Human resource manager are part of ______level of management.

7. Co-ordination can be considered_________ of management.

8.__________function of management bridges the gap between where we stand today and where
we want to reach.

9. ________ function of management establishes organisation structure and establishes authority

responsibility relationship.

10. In ________ function of management, standards are compared with actual, deviations are found
out and corrective actions are taken.

11. Management is a _________ function as it adapts itself to the changing environment.

12. Managing Director is the position of __________ level of management in a large company.

13. Management is multidimensional because it has _________ dimensions.

14. Management is a ________ directed process as it aims at achieving specified objective.

15. ________ is a systematised body of knowledge that explains certain general truths or operation
of general laws.

16. Lower level of management is also called _________ and _________.

17. Departmental managers are included in ________ level of management.

18. Doing the task correctly with minimum cost is known as _________.

19. Planning is a _________function of management.

20. Management consists of _________ separate functions of management.

VERY SHORT ANSWER TYPE QUESTIONS

1. Define management.

2. Name any four characteristics of management.

3. State any two features of management as an art.

4. Mention one primary function of management.

5. Mention any two features by which it can be proved that management is not a full fledged
profession.

6. Define efficiency.

7. Define Co-ordination.

8. State the three levels of management.

9. State the three aspects from which it can be said that management is multi dimensional.
10. State any two characteristics of co-ordination.

11. The management principles can be applied to all types of activities. Which characteristic of
management is highlighted by this statement.

12. List any two social objectives of management.

13. What do you mean by planning.

SHORT ANSWER TYPE QUESTIONS

1. Explain management of operation.

2. As a Manger, give argument in favour of universality of management.

3. What is meant by Management of people.

4. How management is all pervasive.

5. ‘Management is the process of getting things done’ State the meaning of the term ‘process’ used
in this statement.

6. Why co-ordination is not a separate function of management.

7. State any two functions of middle level of management.

THEORITICAL QUESTIONS

1. How management is an art.

2. Why management is not called a full fledged profession.

3. How management is multi dimensional. Explain.

4. Is management called a pure science. Give reasons in support of your answer.

5. Your father wants you to do MBA before joining family business. What does this show about
nature of management.

6. Domino’s pizza keeps introducing new variety of pizza’s in it’s menu. Which characteristic of
management is highlighted, explain in brief.

7. Management is considered to be a three tier machinery. Explain.

8. Explain the characteristics of co-ordination.

9. What is the importance of management in a business organisation. Explain.

10. What is the difference between effectiveness and efficiency.

CASE STUDY QUESTION

Read the following text and answer the following questions on the basis of the

same:

Sana is the branch manager of ABC Handicrafts Pvt. Ltd. The company’s

objective is to promote the sales of Indian handloom and handicraft products. It

sells fabrics, furnishings, ready-mades and household items are made out of

traditional Indian fabrics.

Sana decides quantities, variety, colour and texture of all the above items and then

allocates resources for their purchase form different suppliers. She appoints a team

of designers and crafts people in the company, who developed some prints for bed

covers in bright colour on silk. Although the products looked very attractive and

impressive, they were relatively expensive on the front of affordability for an

average customer.

Sana suggested that they should keep the silk bed covers for special festive

occasions and offer the cotton bed covers on a regular basis to keep costs under

control.

Q.1 “She appoints a team of designers and crafts people in the company, who

developed some prints for bed covers in bright colour on silk.”

Which function of management is highlighted in this context?

(A)Controlling

(B) Staffing

(C) Planning

(D)Directing

Q.2 In the above case “company’s objective is to promote the sales of Indian

handloom and handicraft products.”

The above line focus on which feature of management?

(A)Management is an intangible force

(B) Management is a goal oriented process

(C) Management is pervasive in nature

(D)Management is a continuous process

Q.3 With reference to the above case, at which level of management Sana is

working?

(A)Lower level

(B) Top level

(C) Middle level

(D)Shop floor

Q.4 “Sana suggested that they should keep the silk bed covers for special festive

occasions and offer the cotton bed covers on a regular basis to keep costs under

control.”

Which function of management is highlighted in this context?

(A)Controlling

(B) Staffing

(C) Organising

(D)Planning