Pen) Business Management Questions Latest Business Management MCQ Objective Questions & POPE ABA Rall Start Complete Exam Preparation aoa a era Mock Tests Exot 5 Pann oe Clietes ooo Download App Question 1: View this Question Online > Assertion (A) : Vertical integration is considered as generic strategy because the firms operations are expanded beyond primary business Reasoning (R) : Vertical integration is the mixed empirical result to ascertain whether strategy help or hinders the performance. 1. (A) and (R) are correct, (R) is not the explanation of (A) 2. (A) and (R) are correct, (R) is correct explanation/of (A) 3. (A) is correct (R) is wrong 4. (R) is comect (Apis wrong A... Solution Below) Option 4 : (R) is correct (A) is wrongcoaching India’s Super Teachers for all govt. exams Under One Roof cd Sea ad Business Management Question 1 Detailed Solution The correct answer is (R) is correct (A) is wrong. © Key Points The assertion is false and the reasoning is true. Assertion: Vertical integration is considered as a generic strategy because the firms operations are expanded beyond primary business: a company can take to achieve competitive cost leadership, differentiation, and focus. s its own inputs or distributes its stributors, or by building its own + A generic strategy is a broad app 1 carey! advantage. There are three generic strategie + Vertical integration is a strategy whers#eompany produ is can be don by acquiring suppliers or production or distribution facilities. + Vertical integration is not a generic strategy because it is not a broad approach to achieving competitive advantage. It is a specific strategy that can be used to support a generic strategy. Reasoning: Vertical integration is the mixed empirical result to ascertain whether strategy help or hinders the performance. + There is no clear consensus on whether vertical integration helps or hinders firm performance. Some studies have found that vertical integration can lead to lower costs and higher profits, while others have found that it can lead to higher costs and lower profits. + The impact of vertical integration on firm performance depends on a number of factors, such 's competitive position, and the specific implementation of the as the industry, the compa strategy. Overall, the assertion is false because vertical integration is not a generic strategy. The reasoning is true because the empirical evidence on the impact of vertical integration on firm performance is mixedIndia’s #1 Learning Platform OREO acest Start Complete Exam Preparation eee oe a Bette Download App resieuccag a eee Question 2: View this Question Onling> The clearer the line of authority from the ultimate management position in an Enterprise to every subordinate position, the clearer will be the responsibility for decision making ane more effective the organizational communication, is expected by 1. Scalar Principle 2. Peter's Principle 3. Murphy's Principle 4. Unity of Command Principle Answer (Detailed Solution Below) Option 4 : Unity of Command Principle Business Management Question 2 Detailed Solution The correct answer is the Unity of Command principle. © Key Points + The concept referred here is known as thélpriftiple ‘of “Unity of Command.” + The principle states that each employee should have a single designated supervisor to whom they directly report. This cl .e of authority helps in clarifying responsibilities, avoiding confusion, and ensuring BR Srrenition within an organization. + In other words, when there is #€lSar and singular reporting line for employees, it becomes easier to assign tasks, make decisions, and maintain effective communication. This principle helps prevent conflicts arising from receiving conflicting instructions from multiple superiors and ensures that employees understand who they are accountable to. ia ella scen tier aah carats san veins tit Seca as maael miee tbe Cicca al os ante ei deenatheorist. + While this principle can enhance organizational efficiency and communication, it's worth noting that in modern and complex organizations, there might be situations where employees need to collaborate across different teams or report to multiple managers due to matrix structures or project-based work. + In such cases, striking the right balance between unity of command and flexibility is important for organizational effectiveness. India's #1 Learning Platform CaCO a Sct Start Complete Exam Preparation eae I (ier Ca Download App Question 3: View this Question Online > Competition Act is the successor of 1, FERA 2. MRTP Act 2 \ 4. Competition Council Act Answer (Detailed Solution Below) Option 2: MRTP Act Business Management Question 3 Detailed Solution The correct answer is MRTP Act. © Key Points + The Competition Act, 2002 is the successor of the Monopolies'@fd)Resitittive Trade Practices Act, 1969 (MRTP Act). The MRTP Act was enacted to prevefitimonopolies and restrictive trade a a MM acompetition in the Indian market. + The Competition Act, 2002 was enacted to, pple Whe MRTP Act and to create a more effective competition law regime in Indie. The Competition Act prohibits anti-competitive agreements, abuse of dominance, ahd mergers and acquisitions that have an appreciable adverse effect on comp: + The Competition Act, OM ite by the Competition Commission of India (CCI). The CClis an independent bodjatitac is responsible for investigating and adjudicating competition law cases. + The Competition Act, 2002 has been successful in promoting competition in the Indian market. The CCI has investigated and adjudicated a number of high-profile competition law cases. The CC! has also issued a number of guidelines and regulations to promote competition in various sectors of the Indian economy. + The Competition Act, 2002 is @ landmark piece of legislation that has helped to create a more competitive market in India. The Competition Act has benefited consumers by providing them with more choices and lower prices. The Competition Act has also benefited businesses by creating a more level playing field. Ee ree Re O RE eet Start Complete Exam Preparation I Daily Live eed {=} reir Poca Cresta cg Download App Question 4: View this Question Online > Path-goal theory of leadership was developed by 1. Paul Hersey 2. Blake and Mouton” = A. 4. Fielder Answer (Detailed Solution Below) Option 3: Robert HouseSine Sn The correct answer is Robert House. © Key Points The Path-Goal Theory of Leadership was developed by Robert House. He first introduced the theory in 1971, and then revised and updated it in 1996. The Path-Goal Theory of Leadership ia cOhtingeney theory of leadership, which means that it argues that the most effective leadership style depends on the situation. The theory identifies four leadership styles: + Directive leadership: Di icaders provide clear instructions and expectations to their followers. + Supportive leadership: Supportive leaders provide emotional support and encouragement to their followers. + Participative leadership: Participative leaders involve their followers in the decision-making process. + Achievement-oriented leadership: Achievement-oriented leaders set high standards for their followers and expect them to perform at their best. oa & eee See eet Scan CaS Cun eon eid ened maa (BF) Mecterctasses Fore Sar Corer Download App Question 5: View this Question Online > In which coordination model do departments or business units perform completely separate functions but contribute to the same overall goal? 1. Sequential Coordination 2. Reciprocal Coordination 3. Pooléd.coérdination — a 4 Direct CoordinationAnswer (Detailed Solution Below) Option 3 : Pooled Coordination Business Management Question 5 Detailed Solution The correct answer is Pooled Coordination © Key Points Pooled Coordination: + Pooled coordination is a coordination model where different departments or buisiness units perform separate functions but contribute to the same overall goal er objective. + In this model, each unit operates independently and maintains its own processes, resources, and decision-making authority. + However, their individual outputs or contributions are combined to achieve a common goal. » Important Points Sad Key Characteristics of Pooled Coordination: Each depagement or unitoperates autonomously, focusing on its specific tasks and responsibilities ali involvement in the processes of ather units. + Specialization: Department its specialize in specific functions or tasks, allowing them to develop expertise and efficiency in their respective areas. + Common Goal: Despite operating separately, all units contribute their outputs towards achieving a shared orgenizational goal. The combined efforts lead to the accomplishment of the overall objective + Resource Sharing: While the units maintain their independence, they may share resources, such as facilities, technologies, or support services, to enhance efficiency and reduce duplication. + Minimal Interaction: Interactions among units are limited to sharing information or outputs, and there is minimal need for ongoing communication or coordination in the day-to-day operations. + Examples: Pooled coordination is often seen in organizations where departments have distinct functions, such as accounting, marketing, and production. Each department works independently within its damain, but their combined efforts contribute to the organiz success. a eee Eo) Pela MM CUM elle Lela) Rec cect ei Pabed Cece CeeDownload App Question 6 View this Question Online > The social environment of the job affects people and is also affected by them and not by management alone, is the main proposition of 1. contingency theSty of organization x” theory of organization 3. classical theory of organization 4, Neo-clessical theory of organization Answer (Detailed Solution Below) Option 4: Neo-classical theory of organization Business Management Question 6 Detailed Solution The social environment of the job affects people and is also affected by them and not by management alone, is the main proposition of Neo-classical theory of organization. CP xey-Points « Explanation: 1. The NeoClassical Theory is the extended version of the classical theoty wherein the behavioral sciences gets included into the management. 2. According to this theory, the organization is the social system, and its performance does get affected by the human actions. ~~ S 3. The classical theory laid emphasis on the physiological and mechanical variables and considered these as the prime factors injdétermining the efficiency of the organization. 4, But, when the efficiency a zation was actually checked, it was found out that, despite the positive aspect of these variables the positive response in work behavior was not evoked. 5. Thus, the researchers tried to identify the reasons for human behavior at work. 6. This led to the formation of a NeaClassical theory which primarily focused on the human beings in the organization. 7 This approach is often referred to as “behavioral theory of organization” or ‘humanrelations’ approach in organizations. 8. The NeoClassical theory asserts that an individual is diversely motivated and wants to fulfill certain needs. 9. The communication is an important yardstick te measure the efficiency of the information being transmitted from and to different levels of the organizetion. 10. The teamwork is the prerequisite for the sound functioning of the organization, and this can be achieved only through a behavioral approach, ie. how individual interact and respond to each other. Cee Raoul CRTC Re a erotic Start Complete Exam Pre, roe oe Gietes Question Bank Download App Question 7 View this Question Online > People perform better in their jabs when they are given supportive feedback, and this comes under 1. Need for achievement 2. Need for powef 3 QB crizice 4. None of the above Answer (Detailed Solution Below) Option 3: Need for affiliation Business Management Question 7 Detailed Solution The correct answer is Need for © Key Points Need for Affiliation-ICE IE CesT tO Delong 50:4 -rOun CUVES PCa erences ONY, OFF Baer ae seera be VIET others. + It's the want for a bond characterized by miitual aid/and comprehension. + There is more need for affiliation in stressful situation. Therefore, People perform betier in their jobs when they are given supportive feedback, and this comes under need for ion. ©; Additional Information Need for Power- The desire to control the actions of other people in order to have your own way is a need for power. Need for Achievement- The need for achievement is the drive to perform above and beyond expected standards. India’s #1 Learning Platform Reet a eet Pela eC CM emda elated) Ciera eccncneca™ OMe ciaeres Download App Question 8 ‘View this Question Online > Which of the following statement is true? 1. Environment is the basis of all life and therefore do not necessarily deserves proper management. 2. The environment is not part of our cultural heritage which should be handed down to prosperity. r 3. If the environment isnot threatened on a continuous basis, numerous problems which would constitute adangen to!human existence could arise. za Fesources of the environment are not easily replaceable and should be managed on a j2inable basis, to prevent the extinction of certain components of the environment such as plants and animals,Answer (Detailed Solution Below) Option 4: Some resources of the environment are not easily replaceable and should be managed on a sustainable basis, to prevent the extinction of certain components of the environment such as plants and animals. Business Management Question 8 Detailed Solution Today, human society is standing at a crossroads and searching for better alternatives for sustainable future earth. That is why there is a necessity that every individual should have awareness and knowledge about the earth's environmental resources, human-environment relationship, and issues emerging out of the human-environment relationship, © Key Points + Earth is the only known planet in the solar system that supports life. Despite the vastness of the earth, life exists only in a very thin layer enveloping the earth called the biosphere. + Sun is the only source of energy that enables continuous interaction among various life forms. For a long period of time, there has been a symbiotic relationship between human beings anc nature but it is changing. + Due to excessive human interference and unsustainable practices, millions & people’ 5 Mies and livelihoods are at risk. Therefore, there has been a growing need tocreate awareness amongst all the stakeholders. Fre + The environment is defined as, “the sum total of living.and non-lv ving components; influences and events surrounding an organism. For humans, thetevare several kinds of environment such as home environment, business environment, politcal environment, and so on. + The individuals in nature interact with their environment, influences it, and in turn, are influenced by it. Thus the environment is the sum total of air, water, and land interrelationship among themselves and also w human beings, plants, animals, and other organisms. The most significant attribute of 4 the environment on the life of an organism is the interaction of environmental e! » \mportant Points + The environment is the basis of all life and therefore deserves proper management. The environment is part of our cultural heritage which should be handed down to prosperity. + If the environment is threatened on a continuous basis, numerous problems which would constitute a danger to human existence could arise. + Itis true that some resources of the environment are not easily replaceable and should be managed on a sustainable basis, to prevent the extinction of certain components of the environment such as plants and animals. + Many natural resources are irreplaceable and cannot be reproduced as well. These resources must be used judiciously so that our future generations can also survive and progress. Thus, it is concluded that some resources of the environment are not easily replaceable and should be managed on a sustainable basis, to prevent the extinction of certain components of the environment such as plants and animals, is the true statement. Se cea CRCeo Lm contr Sela mee) Ce Clima leliela|alee Lie upees Ds cielny Question Bank Exotic) Download App Question 3 View this Question Online > Specialists from different functional departments are drawn by an organization and assigned one or more projects being led by project’ managers. Such an organization is called a s 1. Team Organization 2. Leaming Organization 3. \ ae 4, Virtual Organization Answer (Detailed Solution Below) Option 3: Matrix Organization Business Management Question 9 Detailed Solution The correct answer is Matrix Organization. © Key Points ‘t + Matrix Organization © The matrix organization structure is a combination of functional and projectized organization structures. Such structure is generally created for a particular project. » Skilled personnel is selected from functional departments to assists the project manager, in the successful completion of the project. © Each team member has two bosses. The team. reports to both functional and project managers. + Knowledge, skill, or talent of an eniployee is shared between the functional department and project management team to teach a common goal. & Additional Informatio!+ Learning Organisation * A learning organization is an organization skilled at creating, acquiring, and transferring knowledge, and at modifying its behavior to reflect new knowledge and insights. + A learning organization is not cultivated effortlessly. + Virtual Organization 2 A virtual organization is a temporary or permanent collection of geographically dispersed individuals, groups, organizational units, or entire organizations that depend on electronic linking in order to complete the production process. © A virtual organization is referred to as a company with an electronic presence and one that does not have a physical existence. ea a Lela CRE Se cet Start Complete Exam Preparation lines ene) Tac ca aes Cres iea og wT Download App Question 10 ‘View thes Coestions Ootina > Which of the following is NOT one of the steps involved in decision making process? 1. Make decision or choose analtémative 2. change théldesifédloutcome 3 Pe identify opt 4, evaluate results Answer (Detailed Solution Below) Option 2: change the desired outcome Business Management Question 10 Detailed Solution The Correct Answer Is change the desired outcome oO Key PointsDecision-making is the process of choosing among various courses of action or alternatives. In other words, it is a kind of problem-solving in which we are presented with several alternatives, among which we must choose. The six-step. decision-making process is a rational decision-making process. It is based upon thinking about, comparing, and evaluating various alternatives. The steps are as follows: + define the situation - desired outcome + research and identify options + compare and contrast each alternative and its consequences + make a decision or choose an alternative + design and implement an action plan + evaluate results Hence, we conclude that changing the desired outcom: the decision-making process. NOT one of the steps involved in eae a) Re OR est Pela me CM cima) elec) Gee Oe Miao Dos cleo Cresieoccag eae ee Download App ‘Question 11 ‘View this Question Online > A motivation based on force or fear is called 1. Extrinsic motivation 2. Intrinsic motivation 3 %" fe motivation 4. Positive motivation Answer (Detailed Solution Below) Option 3 : Negative motivationSine Sn The correct answer is Negative motivation © Key Points Negative Motivation + Negative motivation is based on force and fear. ; + If the person is afraid of the consequences of not doing the work, iti§ cflled negative motivation. + For example, if an employee doesn't work he is afraid that s/hé may lose his job. B> Additional Informa Extrinsic motivation + This type of motivation is temporaryjand the ‘person is motivated to get rewards and avoid punishment. + Rewards may be peycholOuea physical or financial. Intrinsic motivation + When a person is intrinsically motivated he will do the work for his self-satisfaction without any fear, force, or external forces. + Curiosity, interest, and a sense of accomplishment are sources of intrinsic motivation. Positive motivation + This is a direct motivation in which rewards are given directly to the employee for the work done. + There is no fear and force, but the work is done to get the rewards. ra ee eed Re oa PS ela eMC mare thee) Pines Gites Download App ‘Question 12 View this Question Online >Which among the following is not “oe of organizational structure? 1. Chain and spa Zz x 00 Power * control 4. Differentiation and integration Answer (Detailed Solution Below) Option 2 : Capacity and lower needs Bu: less Management Question 12 Detailed Solution The incorrect option is Capacity and lower needs 6 Organisational Structure + A structure of an organisation is a set of predefined linkages between groups of related functions, as well as between physical factors and persons required to accomplish the duties. + The organisation chart is used to represent the structure of the company. It demonstrates power and responsibility among various roles inside the company by indicating who reports to whom, + The organisational structure establishes the communication and coordination “to businesses. » \mportant Points Noe Chain and span: + Scalar chain is a chain of all supervisors janagement to the person working in the lowest rank + Span of control (or span of mai *) is the number of subordinates who report directly to a manager or leader. + If the span of control is very limited, the number of organisational levels (scalar chain) wil increase, as the organisation grows in size, the organisational structure becomes tall Power and Control: + When we look around organisations, we can notice power expressions practically everywhere. In truth, there are numerous power-based strategies for influencing others. + Common power methods, symbols of managerial authority, and ethical power use.eg Ne at ne en en en ee nn nena new Songer) anni are some important factors of organisational structure Differentiation and integration: + Differentiation is the process through which a company divides itself into important components like departments or product offers. + Inter-departmental coalitions, are examples of how businesses integrate its components. Thus, Capacity and lower needs are not primary determinants of organisational structure. ieee eee PS Ela me) (CM clues) ACC Sec Birt Leer isi Dos ciaprerny Download App Question 13, Wiew this Question Online > Who introduced the formula for determining optimum span of control? 1, Bartol and Martin 2. Hick and Gullett 3. VLA Graicunas 4. Normon Horton Answer (Detailed Solution Below) Option 3: V. A. Graicunas Bu: less Management Question 13 Detailed Solution The correct answer is V.A. Graicunas. @ Vytautas Andrius Graicunas-+ V.A. Graicunas introduced the formula for determining optimum span of control. + Graicunas was a management consultant from France. + According to V.A. Graicunas, the number of relationships that the superior must manage also rises almost exponentially as the number of subordinates (such as 1, 2, 3, 4, 5, 6, etc) increases arithmetically (like 1, 6,18, 44,.100, 244)etc). + Asa result, a superior can only effectively manage a finite number of subordinates, and anything beyond that is — © Additional Informa’ Bartol and Martin- + The four functions of management i.e. planning, organizing, leading, and controlling are described by Bartol and Martin as the process of accomplishing organizational goals in management. Hick and Gullett- + They are the authors of a famous book “Organization Theory and Behaviout CR ABR Rela) JL RR ea Start Complete Exam Preparation rn 4 eee Canta Ca eeere coset Download App Question 14 View this Question Online > Which among the following is not a characteristic of transactional leaders? 1. Gives personal attention, treats each employee individually 2. Abdicates responsibilities, avoid making decisions. 3. Intervens only when standards are not met. 4. Contfacts exchange of rewards for efforts. ~! Answer (Detailed Solution Below)Option 1 : Gives personal attention, treats each employee individually. Busi ess Management Question 14 Detailed Solution The correct answer is Gives personal attention, treats each employee individually. A Mistake Points Transactional Leaders are of various kinds like Contingent Reward Leaders, Management by Exception (Active) Leaders, Management by Exception (Passive) Leaders and Laissez-faire Leaders Management by Exception (Passive) Leaders intervenes and takes charge only if subordinates fail to meet work standards. They get involved when there is an issue. According to this, it can be said that transactional leaders abdicates responsibilities, avoid making decisions. Hence, it can be included in one of the characteristics of Transactional leaders. o Transac! nal leaders: + Someone who values order and structure is referred to as a transactional leader. + They are likely to be in charge of military operations, major enterprisesior Worldwide projects that require rules and procedures to meet deadlines or transport personne! and materials in an orderly manner. ? + Transactional leaders do not fit well in environmentsithat/promote creativity and new ideas. + Transactional leadership emphasizes on results. + Transactional leaders hold positions of formal authorityland responsibility in an organization. * Transactional leader avoid making decisions'to address problems or address issues until there is no alternative course of action. » \mportant Points Following are the characteristics of transactional leaders: * Disclosure inefficiency + Giving supervision and direction + Practicalit + A structured environment is required + Award performance + External inductors etc Transactional leaders do not give personal attention and does not treat each employee individually. Among the above options, option (a) does not characterize transactional leadership. India’s #1 Learning Platform aca cotta Pela MM CMLL el) arta er Cris DB Download AppQuestion 15 View this Question Online > The major functions in business organizations are: 1. Overlapping 2. Independent of each other c(t 3. Mutually exclusive 4. Dependent on each “=O eo n 1: Overlapping Business Management Question 15 Detailed Solution The correct answer is Overlapping. oO Key Points + Management has been described as a social process involving responsibility for economical and effective planning & regulation of operation of an enterprise in the fulfillment of given purposes. + It is a dynamic process consisting of various elements and activities. + These activities are different from operative functions like marketing, finance, purchase, etc. + Rather these activities are common to every manager irrespective of his level or status. + According to Henry Fayol, To manage is to forecast and plan, to organize, to command, & to control. * Most widely accepted are functions of management given by KOONTZ and O'DONNELL ie. Planning, Organizing, Staffing, Directing, and Controlling + For theoretical purposes, it may be convenient to separate the function of management but practically these functions are overlapping in nature i.e. they are highly inseparable. Hence, Option 1 is correct. + Each function blends into the other & each affects the performance of others. G & Additional Informa: NA 4a! ‘OrganisationProduction Operation. Nest: Marketin g Finance ow