{Latest} MCQs on Organising Class 12 Business Studies Chapter 5

MCQs on Organising Class 12 Business Studies Chapter 5 with Answers. These MCQs includes multiple-choice questions related to the Concepts and Importance of organising, Organising process and its structures and comparison between delegation and decentralization.

The following MCQs on Organising Chapter 5 Class 12 Business Studies will be helpful for the students who wish to score 90%+ marks in their board exams. Without wasting any further time, below are the MCQs on Organising Class 12 Business Studies with Answers.

MCQs on Organising Class 12 Business Studies with Answers


 Topic 1: Concept, Meaning, and Importance of organising 

1. _____ is the next function of management after planning.
(a) Staffing
(b) Directing
(c) Organising
(d) Controlling
Answer: Organising.

2. ______ is the process of combining different activities of an enterprise and establishing an authority relationship between those activities.
(a) Organising
(b) Staffing
(c) Directing
(d) Controlling
Answer: Organising.

3. Organising includes the process of determining _______.
(a) What activities are to be conducted
(b) How activities are to be grouped
(c) Delegation of authority and responsibility
(d) All of the above
Answer: All of the above.

4. Organising is a process of ______.
(a) Determining activities
(b) Grouping of activities
(c) Creation of formal relationships among employees
(d) All of the above
Answer: All of the above.

5. The organising function of management means ______.
(a) Translating plans into action
(b) Inspiring people 
(c) Communicating with people
(d) Setting up objectives
AnswerTranslating plans into action.

6. The following is not a feature of organising:-
(a) Division of work
(b) Coordination
(c) Common objectives
(d) Complete centralization
Answer: Complete centralization.

7. ______ is the basis of an organisation.
(a) Division of work
(b) Specialization
(c) Plurality of persons
(d) Decentralization
Answer: Division of work.

8. Under the division of work, the whole work of the organisation is divided into ______.
(a) Different departments
(b) Sub works of different departments
(c) Top and middle-level management
(d) Both a and b
Answer: Both a and b.

9. Which of the following does not include merit of organising function of management?
(a) Development of personnel
(b) Expansion and growth
(c) Clarity in working relationships
(d) Provides direction to the organisation
AnswerProvides direction to the organisation.

10. The merit of the organising function of management includes ______.
(a) Optimum utilization of resources
(b) Adaption to change
(c) Effective administration
(d) All of the above
Answer: All of the above.

11. Organisation is the same for the management as the following is for the human body:-
(a) Structure of bones
(b) Structure of mind
(c) Thinking of mind
(d) Respiration system
Answer: Structure of bones.

12. Clarity in working relationships leads to ______.
(a) Effective administration
(b) Adaption to change
(c) Development of personnel
(d) Both a and b
AnswerEffective administration.

13. The establishment of working relationships clarifies _______.
(a) Lines of communication
(b) Objective of the organisation
(c) Cost of the material
(d) Requirement of manpower
AnswerLines of communication.

14. Under the process of organising a manager tries to ______.
(a) Bring order out of chaos
(b) Remove conflicts over responsibility
(c) Create an environment suitable for teamwork
(d) All of the above
Answer: All of the above.

15. The establishment of working relationships in organising specifies ______.
(a) Who is to report and to whom
(b) Who is to report and why
(c) Who is to report and how 
(d) All of the above
Answer: Who is to report to whom.

MCQs on Organising Class 12 Chapter 5 Business studies


Topic 2: Organising process

1. Organising is that process of management that involves ______.
(a) One-step 
(b) Two steps
(c) Three steps
(d) Many steps
AnswerMany steps

2. Which of the following is not involved in the organising process?
(a) Departmentalization
(b) Division of work
(c) Assignment of duties
(d) Centralization
Answer: Centralization.

3. Which of the following is not involved in the organising process?
(a) Identification of work
(b) Establishing reporting relations
(c) Evaluation of alternative courses
(d) Both a and b 
Answer: Evaluation of alternative courses.
 
4. Select the correct order of the organising process:-
(a) Identification and division of work> Establishing reporting relationships> Departmentalization
(b) Assignment of duties> Identification and division of work> Departmentalization 
(c) Departmentalization> Identification and division of work> Assignment of duties
(d) Identification and division of work> DepartmentalizationEstablishing reporting relationships
AnswerIdentification and division of work> DepartmentalizationEstablishing reporting relationships.

5. Division of work into various activities leads to _____.
(a) Reduction in duplication of work
(b) Reduction of the burden on some employees
(c) Specialization
(d) All of the above
Answer: All of the above.

6. Grouping similar and manageable activities together is known as _____.
(a) Departmentalization
(b) Centralization
(c) Decentralization
(d) None of the above
Answer: None of the above.

7. Organising as a process is _____ in nature.
(a) Constant
(b) Dynamic
(c) Fixed
(d) Independent
Answer: Dynamic.

8. Under Organising, a chain is established from ______ between different posts.

(a) Top to bottom
(b) Right to left
(c) Left to right
(d) All of the above
Answer: All of the above.

9. Ramesh knows that to successfully realize the objectives of the organisation, first of all, different activities are to be identified that are going to take part in the organisation. But, he can’t set up a different department for each activity. So he decided to group activities that are similar in nature in the same department.
Which process of organising is highlighted above in the second phase?

(a) Identification and division of work
(b) Assignment of duties
(c) Establishing reporting relations
(d) Departmentalization
Answer: Departmentalization.

10. ‘While at the time of formation of the organisation, it was decided that right person should be given the right work’.
Which stage of the ‘organising process’ is referred to in the above statement?

(a) Identification and division of work
(b) Assignment of duties
(c) Establishing reporting relations
(d) Departmentalization
Answer: Assignment of duties.

MCQs on Organising Class 12 Chapter 5 Business studies

Topic 3: Organisational structure


1. Organisational structure is the outcome of the _____ process.
(a) Directing
(b) Controlling
(c) Staffing
(d) Organising
Answer: Organising.

2. ______ is a framework in which different managerial and non-managerial tasks are performed.

(a) Organisational structure
(b) Organisational design
(c) Organisational manual
(d) None of the above
AnswerOrganisational structure.

3. The organisational structure of a firm is presented or shown in ______.

(a) An organisation chart
(b) An organisation manual
(c) An organisation policy
(d) An organisational rule
Answer: An organisational chart.

4. Which of the following gives shape to the organisational structure to the large extent?

(a) Working conditions of employees
(b) Span of management
(c) Span of organization
(d) Number of members in top-level management
Answer: Span of management.

5. Span of management means ______.

(a) Number of years the business is operating
(b) Number of subordinates managed by a superior
(c) Time for which the management will be active
(d) Term for which the manager is appointed
AnswerNumber of subordinates managed by a superior.

6. Design of organizational structure is ______ in all the organisations.

(a) Similar
(b) Different
(c) Constant 
(d) None of the above
Answer: Different

7. There are ______ standardized forms of organisation structure.

(a) Two
(b) Three
(c) Four
(d) Many
Answer: Many.

8. Which of the following is the reason that each organisation has a different design of the organisational structure.

(a) Size of the organisations
(b) Nature of work in the organisations
(c) Region of different employees in the organisations
(d) Both a and b
Answer: Both a and b.

9. Which of the following is the type of organisational structure?

(a) Functional organisation
(b) Divisional organisation
(c) Line organisation
(d) All of the above
Answer: All of the above.

10. The division of the enterprise based on the major activities or functions performed by it is known as _____.

(a) Functional organisation structure
(b) Divisional organisation structure
(c) Line organisation structure
(d) Line and staff organisation structure
Answer: Functional organisation structure.

11. Division of the whole enterprise based on different product lines is a part of:-

(a) Functional organisation structure
(b) Divisional organisation structure
(c) Centralization organisation structure
(d) Decentralization organisation structure
AnswerDivisional organisation structure.

12. Under divisional organisation structure, departmentation is done on the bases of:-

(a) Function 
(b) Product 
(c) Cost
(d) Authority
Answer: Product.

13. The functional organisation structure is based on the principle of ______. 

(a) Specialization
(b) Discipline
(c) Scalar chain
(d) Unity of direction
Answer: Specialization.

14. Functional and divisional organisation structure fall under the category of ______.

(a) Formal organisation
(b) Informal organisation
(c) Both a and b
(d) None of the above
Answer: Formal organisation.

15. Select which among the following is not an advantage of functional organisation structure?
(a) Benefits of specialization

(b) Establishment of coordination
(c) Increase in managerial efficiency
(d) Development of divisional heads
AnswerDevelopment of divisional heads.

16. Select which among the following is not an advantage of functional organisation structure?

(a) Increase in managerial efficiency
(b) Easier training of employees
(c) Minimal duplication of work
(d) Different weightage for each function
AnswerDifferent weightage for each function.

17. Which of the following is a limitation of functional organisation structure?

(a) Less emphasis on organisational objectives
(b) Duplicity of functions
(c) Conflict between divisional heads
(d) Both a and b
Answer: Less emphasis on organissational objectives. 

18. Which of the following is not a disadvantage of functional organisation structure?

(a) Ignorance of organisational objectives
(b) Conflict among departmental heads
(c) Problems in interdepartmental coordination
(d) Selfish attitude of divisional heads
Answer: Selfish attitude of divisional heads.

19. In functional organisation structure, the units formed after grouping similar functions are called ______.
(a) Departments
(b) Product divisions
(c) Staff line 
(d) Both a and b
Answer: Departments.

20. Which of the following is not an example of a functional organisation structure?

(a) Production department
(b) Marketing department
(c) Metal products division
(d) Both a and b
AnswerMetal products division.

21. The functional organisation structure is best suited in the situation where:-
(a) The size of the organisation is large
(b) The activities of the organisation are diversified
(c) specialization is not required
(d) Both a and b
Answer: Both a and b.

22. Under divisional organisation structure, all the functions linked with a particular product are looked after by ______.
(a) Head of the division
(b) Head of the department
(c) Head of the organisation
(d) Head of the management
Answer: Head of the division.

23. Which of the following is not an example of a division organisation structure?
(a) Plastic product division
(b) Car production division
(c) Personnel department
(d) Both a and b
Answer: Personnel department.
24. Which of the following is not an advantage of divisional organisation structure?
(a) Development of divisional heads
(b) Identification of divisional results
(c) Faster decision making
(d) None of the above
Answer: None of the above.

25. Divisional organisation is favorable where:-
(a) There are various kinds of product lines
(b) The size of the concern is large
(c) Where the same manufacturing technology is required
(d) Both a and b
Answer: Both a and b.

MCQs on Organising Class 12 Chapter 5 Business studies

Topic 4: Formal and Informal organisation

1. ______ organisation clearly specifies the responsibility and authority and there exists systematic coordination among the different activities.
(a) Formal
(b) Informal
(c) Centralized
(d) Delegated
Answer: Formal.

2. ______ organisation structure is based on rules and procedures.
(a) Formal
(b) Informal
(c) Both a and b
(d) None of the above
Answer: Formal

3. Which of the following is a more stable organisation?
(a) Formal
(b) Informal
(c) Centralized
(d) None of the above
Answer: Formal.

4. The following organisation resists changes:-
(a) Formal 
(b) Informal
(c) Functional 
(d) Divisional
Answer: Informal.

5. ‘Group norms’ are formed in which of the following organisations?
(a) Formal
(b) Informal
(c) Decentralized
(d) Delegated
Answer: Informal.

6. The principle of scalar chain is followed in the following type of organisation:-
(a) Formal
(b) Informal
(c) Both a and b
(d) None of the above
Answer: Formal.

7. ______ structure of an organisation helps locate inefficient employees.
(a) Formal
(b) Informal
(c) Both a and b
(d) None of the above
Answer: Formal.

8. The following structure of an organisation is not deliberately created and emerges out of the mutual relationship?
(a) Formal
(b) Informal
(c) Functional
(d) Divisional
Answer: Informal.

9. Which of the following is cannot be regarded as a feature of the formal organisation structure?
(a) It is based on rules
(b) It is based on the division of work
(c) It is deliberately created
(d) It is personal
Answer: It is personal.

10. Select which among the following is not an advantage of the formal organisation?
(a) Avoiding overlapping of work
(b) Unity of command is possible
(c) Organisational goals are easily achieved
(d) Fulfils social needs
Answer: Fulfils social needs.

11. Which among the following is a demerit of the formal organisation? 
(a) Delay in decision making
(b) Lack of Initiative
(c) Hard to understand human relationships
(d) All of the above
Answer: All of the above.

12. _____ organisation is referred to the natural grouping of people beyond their officially defined roles.
(a) Formal
(b) Informal
(c) Functional
(d) Line and staff
Answer: Informal.

13. The following is a characteristic of Informal organisation structure:-
(a) It is not created deliberately
(b) It is personal
(c) It lacks stability
(d) All of the above
Answer: All of the above.

14. Which of the following emerges first:-
(a) Formal organisation
(b) Informal organisation
(c) Formal and Informal organisation
(d) None of the above
Answer: Formal organisation.

15. Select the merit of an informal organisation among the following options:-
(a) Faster spread of information
(b) It doesn’t resist changes
(c) Stability in an organisation
(d) All of the above
Answer: Faster spread of knowledge.

16. Which of the following is the demerit of informal organisation structure?
(a) It creates rumors
(b) It resists change
(c) Norm groups create pressure
(d) All of the above
Answer: All of the above.

17. Which of the following is unnecessary for an organisation?
(a) Formal organisation structure
(b) Informal organisation structure
(c) Functional organisation structure
(d) None of the above
Answer: None of the above.

18. Which of the following organisational structure is deliberately established?
(a) Formal 
(b) Informal
(c) Formal and Informal
(d) None of the above
Answer: Formal.

19. Which of the following does not happen in an informal organization structure?
(a) Forming of group norms
(b) Following the scalar chain
(c) Neglection of rules and procedure
(d) Independent channel of communication
Answer: Following of scalar chain.

20. ‘ It leads to faster spread of information as the prescribed line of communication is not followed’ The following highlights:-
(a) Characteristics of Informal organisation
(b) Advantages of Informal organisation
(c) Characteristics of formal organisation
(d) Advantages of formal organisation
Answer: Advantage of Informal organisation.

MCQs on Organising Business Studies with Answers Class 12

Topic 5:Delegation and Decentralization


1. ______ is the process of handing over and entrusting responsibility and authority from a superior to a subordinate.
(a) Delegation
(b) Centralization
(c) Decentralization
(d) Both a and b
Answer: Both a and b.

2. Delegation is ______ transfer of responsibility and authority between the people of the organisation.
(a) Downward
(b) Upward
(c) Leftward
(d) Rightward
Answer: Downward.

3. The key to the managerial post is ______.
(a) Authority
(b) Responsibility
(c) Accountability
(d) All of the above
Answer: Authority.

4. ______ increases the importance of a subordinate in the organisation.
(a) Authority
(b) Centralization
(c) Specialization
(d) Delegation
Answer: Delegation.

5. Which of the following statements stand true in the case of delegation of authority and decentralization?
(a) Delegation of authority is inevitable
(b) Decentralization is voluntary
(c) Both of them are voluntary
(d) Both a and b
Answer: Both a and b.

6. Which of the following is correct about the scope of delegation of authority and decentralization respectively?
(a) Limited and broad
(b) Broad and limited
(c) Both of them have a broad scope
(d) Both of them have a limited scope
Answer: Limited and broad.
7. Which of the following options have a wider scope?
(a) Management
(b) Centralization
(c) Delegation
(d) Decentralization
Answer: Management.

8. Decentralization in an organisation depends upon _____.
(a) Centralization
(b) Delegation
(c) Number of workers
(d) Number of members in top-level
Answer: Delegation.

9. Which of the following is called an extended form of delegation?
(a) Centralization
(b) Decentralization
(c) Specialization
(d) Divisional structure
Answer: Decentralization.

10. Which of the following is the result of delegation of authority?
(a) Decrease in administrative workload
(b) Increase in administrative workload
(c) Laziness in administrative workload
(d) Attentiveness in administrative workload
Answer: Decrease in administrative workload.

11. Which of the following decisions are possible with the help of delegation?
(a) Ineffective
(b) Quick
(c) Good
(d) Quick and good
Answer: Quick and good.

12. Which of the following increases the participation of employees in the management of an organisation?
(a) Delegation
(b) Decentralization
(c) Centralization
(d) All of the above
Answer: Decentralization.

13. The obligation of a subordinate to perform his task in the right manner is known as ______.
(a) Authority
(b) Responsibility
(c) Accountability
(d) None of the above
Answer: Responsibility.

14. Responsibility and accountability are elements of the delegation that flows ______.
(a) Downward
(b) Upward
(c) Rightward
(d) Leftward
Answer: Upward.

15. ______ referred to the answerability for the final outcome of the assigned work to the subordinate.
(a) Authority
(b) Responsibility
(c) Accountability
(d) None of the above 
Answer: Accountability.

16. Which of the following elements of delegation cannot be entirely delegated?
(a) Accountability
(b) Responsibility
(c) Accountability
(d) None of the above
Answer: Accountability.

17. Select the correct sequence of elements of delegation:-
(a) Authority> Accountability> Responsibility
(b) Responsibility> Accountability> Authority
(c) Accountability> Authority> Responsibility
(d) Authority> Responsibility> Accountability
Answer: Authority> Responsibility> Accountability.

18. _______ is the basis of delegation of authority.
(a) Division of labor
(b) Specialization
(c) Responsibility
(d) Both a and b
Answer: Division of labor.

19. Which of the following is not the merit of delegation?
(a) Effective management
(b) Development of employees
(c) Better coordination
(d) None of the above
Answer: None of the above.

20. Which of the following is best for growth in large organizations?
(a) Complete centralization
(b) Complete decentralization
(c) Combination of centralization and decentralization
(d) None of the above
Answer: Combination of centralization and decentralization.

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