MCQs on Principles of Management Class 12 Business Studies Chapter 2

Class 12 Business Studies Chapter 2 : Principles of Management MCQs. These MCQs of Business Studies Class 12 are created under the latest syllabus issued by CBSE.

These MCQs on Principles of Management include multiple choice questions on Fayol's principles of management and Taylor's Principles of Management. Be the part of this endless learning!

MCQs on Principles of Management Class 12 Business Studies Chapter 2 SET A

1) Select the basis on which the principles of management were derived?
(b) On the basis of experimental studies
(a) On the basis of observation
(c) On the basis of both 
(d) None of these
Answer: On the bases of both.

2) Which of the following specialists is not a part of planning department?
(a) Time and cost clerk
(b) Route clerk
(c) Discipline officer
(d) Inspector
Answer: Inspector.

3) Eren and Mikasa are typists in a company having the same educational qualification. Eren is getting ₹30,000 per month and Mikasa ₹40,000 per month as salary for the same working hours. Which of the following principle of management is not satisfied in this case?
(a) Unity of command
(b) Discipline
(c) Scalar chain
(d) Equity
Answer: Equity.

4) The job of _____ is to see that whether all the workers are doing their respective job as per the speed laid down or not.
(a) Time and cost clerk
(b) Speed boss
(c) Gang boss
(d) Route clerk
Answer: Speed boss.

5) Describe the nature of principles of management?
(a) Flexible 
(b) Rigid
(c) Permanent
(d) None of these
Answer: Flexible.

6) Sohan, a manager, very often speaks with people at all levels, passing on instructions regarding his department and also of the other departments. Which principle of management is being overlooked?
(b) Order
(d) Unit of command
(c) Equity
(b) Order
Answer: Order.

7) Ankit, a manager, continuously make efforts to develop a team spirit among the subordinates. Which principle of management is being overlooked?
(a) Subordination of individual to general interest
(b) Remuneration to employees
(c) Espirit de corps
(d) Centralization and Decentralization
Answer: Espirit de corps.

8) The subordinates in a company receive orders from more than one operational head for the same task. Which principle of management is being overlooked?
(a) Unit y of command
(b) Order
(c) Equity
(d) Unity of direction
Answer: Unity of command.

9) Which of the following techniques of Taylor differentiate between efficient and less efficient workers?
(a) Standardization of work
(b) Functional foremanship
(c) Simplification
(d) Differential piece wage system
Answer: Differential piece wage system.

10) What type of centralization Fayol talks about?
(a) Little Centralization
(b) More Centralization
(c) Effective Centralization
(d) No Centralization
Answer: Effective Centralization.

11) Describe the situation in which Fayol has permitted the violation of the Principle of Scalar Chain?
(a) When the employee is extraordinarily capable
(b) At the time of sudden happening
(c) In all conditions and circumstances
(d) In no condition or situation
Answer: At the time of sudden happening.

12) Which of the following study is conducted by using a movie camera?
(a) Motion study
(b) Time study
(c) Fatigue study
(d) Method study
Answer: Motion study.

13) Which of the following are the departments that Taylor divide the work for a factory manager?
(a) Department of Planning and Production
(b) Department of Planning and Finance
(c) Department of Planning and Marketing
(d) Department of Planning and Research
Answer: Department of Planning and Production.

14) Under fatigue study:
(a) Tiring work is given to employees
(b) Employee's movements are increased
(c) Movie camera is used
(d) Rest is allowed to employees during their work
Answer: Rest is allowed to employees during their work.

15) In which year Taylor rose from the ranks of an ordinary laborer  to the position of Chief Engineer?
(a) 1878
(b) 1901
(c) 1884
(d) 1903
Answer: 1884

16) Principles of management are not:
(a) Universal
(c) Absolute
(b) Flexible
(d) Behavioral
Answer: Absolute.

17) How are principles of management formed?
(a) In a laboratory
(b) By experiences of managers
(c) By experiences of customers
(d) By propagation of social scientists
Answer: By experiences of managers.

18) The principles of management play an important role in an organization because it leads to
(a) Increase in efficiency
(b) Initiative
(c) Optimum utilization of resources
(d) Adaptation to changing technology
Answer: Increase in efficiency.

19) Henry Fayol was a
(a) Social Scientist
(b) Mining Engineer
(c) Accountant
(d) Production Engineer
Answer: Mining Engineer.

20) Which of the following statements best describes the principle of 'Division of
Work?
(a) Dividing work into small task.
(b) Labour should be divided.
(c) Resources should be divided among jobs.
(d) It leads to specialization.
Answer: It leads to specialization.

21) Which of the following specialists ensures that both the workers and the machines are fit enough for production ?
(a) Instruction Card Clerk
(b) Repair Boss
(c) Gang Boss
(d) Route Clerk
Answer: Gang Boss.

22) Select from the following which is not a Principle of Management given by Taylor? 
(a) Science, not rule of the thumb 
(b) Functional foremanship
(c) Maximum not restricted output
(d) Harmony, not discord
Answer: Functional foremanship.

23) 'Identification of the most suitable way to do a particular activity'. Which technique of
Scientific Management is defined in this sentence?
(a) Time Study
(b) Motion Study
(c) Fatigue Study
(d) Method Study
Answer: Method Study.

24) Which of the following techniques is conducted by using process chart and operation research techniques?
(a) Time study
(b) Motion study
(c) Fatigue study
(d) Method study
Answer: Method study.

25) Under this technique various standards are established for various business activities.
(a) Standardization of work
(b) Method study
(c) Simplification
(d) None of these
Answer: Standardization of work.

MCQs on Principles of Management Class 12 Business Studies Chapter 2  SET B

1) _______ are flexible and applied with creativity.
(a) Management principles 
(b) Scientific principals 
(c) Both a and b 
(d) None of these 
Answer: Management principles.

2) Which of the following is not a feature of principles of management?
(a) All pervasive
(b) Flexible
(c) Contingent
(d) Rigid
Answer: Rigid.

3) The management principles are developed only after deep and thorough research work.
Which of the following features of principles of management is referred in above statement?
(a) Formed by experiments
(b) Flexible
(c) General guidelines
(d) Both a and c
Answer: Formed by experiments.

4) What will be the consequence of violation of principle of division of work.
(a) Specialization
(b) Efficiency
(c) Inefficiency
(d) Both a and b
Answer: Inefficiency.

5) How can the principle of authority and responsibility be implemented?
(a) Excess responsibility and less authority
(b) Excess authority and less responsibility
(c) Equal authority and equal responsibility
(d) None of these 
Answer: Equal authority and equal responsibility.

6) Discipline is required at the following level
(a) Superior
(b) Middle
(c) Subordinate
(d) All of these
Answer: All of these.

7) Which of the following is not true for principle of Unity of command?
(a) Employee should receive orders from one boss
(b) Employee is accountable to one boss
(c) Employee should receive orders from more than one boss.
(d) Both a and b
Answer: Employee should receive orders from more than one boss.

8) Henry Fayol was born in ______.
(a) 1841
(b) 1845
(c) 1840
(d) 1839
Answer: 1841.

9) Which of the following specialists compares the quality of product produced with the standards prescribed for them?
(a) Repair boss
(b) Inspector
(c) Route clerk
(d) Gang boss
Answer: Inspector.

10) How many total principles were developed by Henry Fayol?
(a) 13
(b) 14
(c) 15
(d) 16
Answer: 14.

11) A company produces scooters and cars with each division carrying its own market and business environment. State the principle reflected in the above statement.
(a) Unity of command
(b) Unity of direction 
(c) Division of work
(d) Authority and responsibility
Answer: Unity of direction.

12) Levi, a manager, buys essential raw material from his uncle for the production of goods. State the principle of management which is violated here.
(a) Discipline
(b) Authority and responsibility
(c) Unity of direction
(d) Subordination of interest of individual to general interest
Answer: Subordination of interest of individual to general interest.
 
13) ______ permits direct communication between the employees working in different position without following the scalar chain.
(a) Gang plank 
(b) CEO
(c) General manager
(d) None of these
Answer: Gang plank.

14) What is the problem faced in scalar chain?
(a) Information gets delayed
(b) Information passed is incorrect
(c) Information passed is useless
(d) None of these
Answer: Information gets delayed.

15) Which of the following is incorrect about scalar chain?
(a) Information may delay
(b) It may become long process
(c) Communication gap
(d) Systematic flow of information
Answer: Communication gap.

16) 'A teacher passes urgent message directly to principal' state the concept used in this sentence.
(a) Gang-plank
(b) Scalar chain
(c) direct message
(d) Both a and b
Answer: Gang-plank.

17) Which of the following is not the consequence of violation of principle of equity?
(a) Dissatisfaction in employees
(b) Increase in turnover
(c) Unhealthy relations between employees and employers
(d) Motivation to employees
Answer: Motivation to employees.

18) How many principles were formulated by Taylor?
(a) 5
(b) 4
(c) 3
(d) 2
Answer: 4.

19) In ______ the standard time required to do a particular job is decided by the managers on the basis of his past experience.
(a) Rule of thumb
(b) Time study
(c) Motion study
(d) Method study
Answer: Rule of thumb.

20) The positive relation between the workers and the management is reference to which of the following scientific principles of management?
(a) Science, not rule of thumb 
(b) Harmony, not discord
(c) Cooperation, not individualism.
(d) None of these
Answer: Harmony, not discord.

21) Which of the following options is inappropriate with relation to functions of Functional foremanship?
(a) Appointment of specialized persons
(b) Separation of planning and execution function 
(c) Based on division of work
(d) Satisfy unity of command
Answer: Satisfy unity of command.

22) Standardization aims at setting up standards for ______.
(a) Size of product
(b) Weight of product
(c) Quality of product
(d) All of these
Answer: All of these.

23) The following statement does not stand true with the implementation of standardization.
(a) Reduce line of products
(b) Maintain quality standards
(c) Increase efficiency
(d) Decrease effectiveness
Answer: Decrease effectiveness.

24) The objective of _____ is to determine the number of required workers.
(a) Time study
(b) Method study
(c) Fatigue study
(d) Motion study
Answer: Time study.

25) Which of the following techniques of Scientific management of Taylor violates the principle of unity of command?
(a) Standardization of work
(b) Simplification
(c) Functional foremanship
(d) Differential piece wag system
Answer: Functional foremanship.

MCQs on Principles of Management Class 12 Business Studies Chapter 2 SET C

1) Select the specialist which is not a part of production department.
(a) Route clerk
(b) Gang boss
(c) Inspector
(d) Repair boss
Answer: Route clerk.

2) The production manager of XYZ Ltd. instructs a salesman to slowdown the selling of product, whereas the same salesman is instructed to fast the sales as much as possible by the sales manager. Which of the following principle of management is being dissatisfied in this case?
(a) Unity of command
(b) Unity of direction
(c) Equity
(d) Order
Answer: Unity of command.


3) How many experts are appointed to the planning and production department in functional foremanship?
(a) 4 and 4 respectively
(b) 4 and 5 respectively
(c) 5 and 4 respectively
(d) 6 and 6 respectively
Answer: 4 and 4 respectively.

4) When an employee gets order from more than one superior, his job efficiency ______.
(a) Increases
(b) Decreases
(c) Remain constant
(d) Becomes zero
Answer: Decreases.

5) In the principle of _____ superiors should emphasis mor on word 'we' than word 'I'.
(a) Initiative
(b) Direction
(c) Discipline
(d) Espirit De Corps
Answer: Espirit De Corps.

6) Which of the following principles are helpful in bringing about complete mental change?
(a) Principle of scientific management
(b) Fayol's principle of management
(c) Both a and b
(d) None of these
Answer: Principle of scientific management.

7) What is the thing that Fayol kept in mind while presenting the principles of management?
(a) Efficiency
(b) Effectiveness
(c) Flexibility
(d) Rigidity
Answer: Flexibility.

8) Which of the following is not a positive effect of unity of command?
(a) Increase in efficiency of subordinates
(b) Increase in efficiency of superiors
(c) Environment of coordination
(d) Flow of orderly information
Answer: Flow of orderly information.

9) When was the book 'Principles of Scientific Management' written by Taylor?
(a) 1911
(b) 1912
(c) 1914
(d) 1916
Answer: 1911.

10) The instruction card prepared by the Instruction card clerk 
for the workers is hand over to the _______.
(a) Gang boss
(b) Repair boss
(c) Inspector
(d) Route clerk
Answer: Gang boss.

11) What are the causes of fatigue in an organization
(a) Long working hours 
(b) Poor working conditions 
(c) Unsuitable work
(d) All of these
Answer: All of these.

12) The main objectives of time study is ______.
(a) To determine the number of required workers
(b) To decide about the suitable incentive plan 
(c) To get the estimated figure of labour cost 
(d) All of these
Answer: All of these.

13) Which of the following study is conducted with the help of a stopwatch?
(a) Method study
(b) Motion study
(c) Time study
(d) Fatigue study
Answer: Motion study.

14) Fatigue study leads to 
(a) Refreshing of workers
(b) Maintaining efficiency of workers
(c) Happy relation with the workers
(d) All of these
Answer: All of these.

15) Which of the following is the main reason why a mental revolution is required?
(a) Workers and employers demanding for high share of profits
(b) Unfair remuneration
(c) Division of work
(d) Both a and b
Answer: Workers and employers demanding for high share of profits.

16) According to ______ employee in the organization must be given an opportunity in making and executing of plan.
(a) Initiative
(b) Equity
(c) Equality
(d) Centralization and decentralization
Answer: Initiative.

17) In 1903, Taylor published a researched paper title _____.
(a) Principles of Scientific Management
(b) Shop Management
(c) Organization Management
(d) None of these
Answer: Shop Management.

18) The Functional foremanship is totally based on the principles of _____.
(a) Unity of direction 
(b) Discipline
(c) Order
(d) Specialization
Answer: Specialization.

19) What happens when the technique of Simplification is violated?
(a) Different kinds of machines have to be installed
(b) Increased labour costs
(c) Maintenance of more stock
(d) All of these
Answer: All of these

20) Which of the following features of scientific management is not true?
(a) Systematic approach
(b) Brings mental change
(c) Discards traditional management
(d) None of these
Answer: None of these.

21) Which of the following principles tells that the activities done by different people must be carried on with spirit of mutual cooperation?
(a) Science, Not Rule of Thumb
(b) Harmony, Not Discord
(c) Cooperation, Not Individualism
(d) None of these
Answer: Cooperation, Not individualism.

22) Which of the following principles of scientific management requires mental revolution on the part of both management and workers?
(a) Science, Not Rule of Thumb
(b) Harmony, Not Discord
(c) Cooperation, Not Individualism
(d) None of these
Answer: Harmony, Not Discord.

23) The instruction cards prepared by the Instruction card contains which of the following information?
(a) Nature of the work
(b) Procedure of doing work
(c) Material used for the work
(d) All of these
Answer: All of these.

24) The Time and Cost Clerk decides _____.
(a) Cost of product produced
(b) Starting time of work
(c) Finishing time of work
(d) All of these
Answer: All of these.

25) _______ is the change in the mindset of both workers and employers.
(a) Physical revolution
(b) Mental revolution
(c) Discipline
(d) Harmony
Answer: Mental revolution.

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