COMPETENCY – BASED TEST ITEMS

CLASS: 12th
SUBJECT: BUSINESS STUDIES
NAME OF CHAPTER: NATURE AND SIGNIFICANCE OF MANAGEMENT

Q. LEARNING QUESTION MARK

NO OUTCOME
/ASSESSMENT
OBJECTIVE
1 LO: able to understand Match the concept of management in column I with their 1
the concept of respective definition in column II:
management Column I Column II
A. Process (i) Doing the task correctly and with
AO: to assess the minimum cost.
understanding the B. Efficiency (ii) Finishing the giving task on time.
concept of management C. Effectiveness (iii) The primary functions or activities
that management performs to get
things done.
a. (i), (ii), (iii)
b. (iii), (i), (ii)
c. (iii), (ii), (i)
d. (i), (iii), (ii)
2 LO: able to understand Hero Ltd.’s target is to produce 10,000 shirts per month at a cost 1
the meaning of of ₹ 150 per shirt. The Production Manager was able to produce
‘Effectiveness and 10,000 shirts at a cost of ₹ 140 per shirt but not within the
Efficiency’ stipulated time. As a result, there was loss of revenue. In this
case the Production Manager is:
AO: to assess the a. effective but not efficient
understanding the b. efficient but not effective
meaning of c. Neither effective nor efficient
‘Effectiveness and d. All of these
Efficiency’
3 LO: able to understand ‘In an organization employees are happy and satisfied, there is no 1
the concept of chaos and the effect of management is noticeable.’ Which
management characteristic of management is highlighted by this statement?
a. Management is an intangible force
AO: to assess the b. Management is a dynamic function
understanding the c. It is a continuous process
concept of management d. All of the above
4 LO: able to understand Assertion (A): Management is a goal oriented process. 1
the concept of Reason (R): Different organisations have different goals.
management Management integrates the efforts of all members towards
achieving these goals.
AO: to assess the a. Both Assertion (A) and Reason (R) are true and Reason (R)
understanding the is the correct explanation of Assertion (A)
concept of management b. Both Assertion (A) and Reason (R) are true and Reason (R)
is not the correct explanation of Assertion (A)
c. Assertion (A) is True but Reason (R) is False
d. Assertion (A) is False but Reason (R) is True
5 LO: able to understand Das is the Managing Director of ‘Drap Ltd.’, manufacturing 1
the role of top, middle different varieties of cheese. He has an efficient team working
and lower levels of under him consisting of Mohit - the Production manager, Vikram
management – the Marketing Manager and Diwakar – the Finance Manager.
They understand and interpret the policies made by Das, ensure
AO: to assess the that their departments have adequate manpower, assign them the
understanding the role necessary duties and motivate them to achieve the desired
of top, middle and objectives. Identify the level of management they are working.
lower levels of a. Top Level Management
management b. Middle Level Management
c. Operational Management
d. All of these
6 LO: able to explain the In which two functions of management do managers at the top 1
function of level spend more time than managers at lower level of the
management organisations?
a. Planning and Organising
AO: to assess the b. Planning and Controlling
understanding the c. Planning and Directing
function of d. Planning and Staffing
management
7 LO: able to understand Assertion (A): There is restricted entry in the case of 1
the nature of management.
management as a Reason (R): Management consists of systematic knowledge of
science, art and concepts, theories and principles.
profession a. Both Assertion (A) and Reason (R) are true and Reason (R)
is the correct explanation of Assertion (A)
AO: to assess the b. Both Assertion (A) and Reason (R) are true and Reason (R)
understanding the is not the correct explanation of Assertion (A)
nature of management c. Assertion (A) is True but Reason (R) is False
as a science, art and d. Assertion (A) is False but Reason (R) is True
profession
8 LO: able to understand Management of Alpha Ltd. has installed a special recycling plant 1
the objectives of to recycle the waste instead of dumping the waste in ground. It is
management also providing employment opportunities to local residents.
Identify the objectives of management the company is fulfilling.
AO: to assess the a. Organizational objectives
understanding the b. Social objectives
objectives of c. Personal objectives
management d. None of these
9 LO: able to understand “Anyone can be called a manager irrespective of the educational 1
the nature of qualification possessed.” Identify the characteristic of the
management as a profession in that management does not fulfill in the statement
science, art and being discussed above.
profession a. Ethical code of conduct
b. Professional association
AO: to assess the c. Restricted entry
understanding the d. Service motive
nature of management
as a science, art and
profession
10 LO: able to understand Assertion (A): Coordination is not an exclusive function of the 1
the concept and top management.
characteristics of Reason (R): Coordination is the responsibility of all managers of
coordination top, middle and operational levels.
 AO: to assess the a. Both Assertion (A) and Reason (R) are true and Reason (R)
understanding the is the correct explanation of Assertion (A)
concept and b. Both Assertion (A) and Reason (R) are true and Reason (R)
characteristics of is not the correct explanation of Assertion (A)
coordination c. Assertion (A) is True but Reason (R) is False
d. Assertion (A) is False but Reason (R) is True
11 LO: able to understand “The main objective of any organization should be to utilise 3
the objectives of human and material resources to the maximum possible, i.e., to
management fulfill the economic objectives of a business.” Comment.

AO: to assess the

understanding the
objectives of
management
12 LO: able to understand Why is management considered to be a multi-dimensional/multi- 3
the features of faceted concept?
management

AO: to assess the

understanding the
features of management

13 LO: able to understand Do you think management has the characteristics of a full- 3
the nature of fledged profession?
management as a
science, art and
profession

AO: to assess the

understanding the
nature of management
as a science, art and
profession
14 LO: able to understand Whether the following statements are true/false: 3
the concept and a. Coordination is one time function.
characteristics of b. Coordination is the function of the top management.
coordination c. Planning cannot prevent problems.

AO: to assess the

understanding the
concept and
characteristics of
coordination
15 LO: able to understand Arvind and Amar are managers at the same level of management 4
the nature of in a company. Arvind says that management is an ‘art’ whereas
management as a Amar says that management is a ‘science’. As the director of the
science, art and company, explain the true nature of management to Arvind and
profession Amar.
AO: to assess the
understanding the
nature of management
as a science, art and
profession
16 LO: able to understand “Coordination is the essence of management.” Do you agree? 4
the concept and Give reasons.
characteristics of
coordination

AO: to assess the

understanding the
concept and
characteristics of
coordination
17 LO: able to understand Nishtha is a manager of a company selling laptops. She plans the 4
the functions of target sale of 2000 laptops per month. She allocates necessary
management resources to carry out the plan. She has six salesmen working
under her. She works with them guiding and motivating them to
AO: to assess the achieve the target sales. At the end of the month a comparison of
understanding the actual sales with the target sales she found that actual sales
functions of exceeded the target sales.
management Identify, by quoting the lines from the above paragraph, the
functions of management, Nishta is performing.
Explain these functions by quoting the lines.
18 LO: able to understand The Hockey team want to play whole heartedly. To win the game 6
the importance of is there only objective. But their captain does not tell them timely
coordination what each one of them is to do. There is no division of work.
The captain of another hockey team divides the work properly at
AO: to assess the the right time. The work is handed over to all the members of
understanding the team in accordance with each individual’s skill. But the majority
importance of of the team members want to see the captain losing the game.
coordination Defeat of such a team is almost definite.
“But their captain does not …………. is to do.” What is lacking
as per this line?
Explain the concept discussed above why it is so necessary?
19 LO: able to understand Sanjana is the branch manager of ABC Handicrafts Pvt. Ltd. The 6
the functions of company’s objective is to promote the sales of Indian handloom
management and handicraft products. It sells fabrics, furnishings, readymade
and household items are made out of a traditional Indian fabrics.
AO: to assess the Sanjana decides quantities, variety, color and texture of all the
understanding the above items and then allocates resources for their purchase from
functions of different suppliers. She appoints a team of designers and crafts
management people in the company, who developed some prints for bad
covers in bright colors on silk. Although they looked very
impressive, they were more expensive than they had planned to
sell. Average customer could not afford to buy it. Praising their
effort Sanjana suggested that they should keep the silk bed
covers for special occasions like Diwali and Christmas and offer
the cotton bed covers on a regular basis to keep cost under
control.
Identify and state the functions of management which Sanjana
performs by quoting the lines from the above para.
20 LO: able to understand Amar Akbar and Anthony are partners in a firm engaged in the 6
the nature of distribution of dairy products in Gujarat state. Amar is a holder
management as a of senior secondary school certificate from CBSE with business
science, art and studies as one of his elective subjects. Akbar had done his post-
profession graduation in history and Anthony in dairy farming. One day
there was a serious discussion between Akbar and Anthony
regarding the nature of management. Akbar argued that
 AO: to assess the management was a profession whereas Anthony argued against it
understanding the saying that the legal and medical professions are the only
nature of management professions because they fulfill all the conditions of profession.
as a science, art and Amar on the basis of his knowledge of business studies explained
profession the nature of management as a profession to Akbar and Anthony.
Explain how Amar would have satisfied both Akbar and
Anthony.

ANSWERS:
Q. NO ANSWER
1 b. (iii), (i), (ii)
2 b. efficient but not effective
3 a. Management is an intangible force
4 a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
5 b. Middle Level Management
6 a. Planning and Organising
7 d. Assertion (A) is False but Reason (R) is True
8 b. Social objectives
9 c. Restricted entry
10 a. Both Assertion (A) and Reason (R) are true and Reason (R) is the correct
explanation of Assertion (A)
11 Management is responsible for setting and achieving objectives for the organisation.
These are:
Survival, Profit and growth.
12 Explain:
Management of Work
Management of People
Management of Operations
13 No, Management is a profession but not a full-fledged profession like legal,
accounting or medical professions because it does not need the exact criteria of a
profession. (explain any three)
1. Well defined body of knowledge.
2. Restricted entry.
3. Professional association.
4. Ethical code of conduct.
5. Service motive.
14 a. False: Coordination is a continuous process. It begins at the planning stage and
continues till controlling.
b. False: Coordination is the responsibility of all managers from top level to
supervisory level of management.
 c. True: Planning can only predict them and prepare contingency plan to deal with
them if and when they occur.
15 Yes. Management is both an art and a science.
Management is an art because of the following reasons:
• Existence of theoretical knowledge.
• Personalized application.
• Based on continuous practice and creativity.
Management is a science, but not an exact science. The reasons are:
• Systematized body of knowledge.
• Principles based on observation and experimentation.
• Universal validity.
16 Explain briefly the importance of coordination.
17 Nishtha is performing the following functions of management:
• Planning - “She plans the target ….... per month.”
• Organising - “She allocates ….. the plan.”
• Directing - “She works with them …....... target sales.”
• Controlling - “At the end …........ exceeded the target sale.”
18 a. In the first situation cooperation is there, but coordination is missing.
b. Explain the importance of coordination.
19 The functions of management which Sanjana performs are:
Planning: “Sanjana decides …........above items.”
Organising: “allocates resources ….....different suppliers.”
Staffing: “She appoints ….....in the company.”
Directing: “Praising their ….... suggested.”
Controlling: “offer the cotton …..... under control.”
20 Management is a profession but not a full-fledged profession like legal, accounting
or medical professions because it does not need the exact criteria of a profession.
(explain briefly)
1. Well defined body of knowledge.
2. Restricted entry.
3. Professional association.
4. Ethical code of conduct.
5. Service motive.