F

AOLVED QUESTION BANK

Very Short Answer/Ohieeiive Type Questions II ifiorkj 2" Mr. Darshit Chauhan is norking as a finance
manager in Rachna Sagar Pr t. Ltd. At what Ievel of
1" Which of the following is a feature of management?
management is he *orking?
(a) Goal-oriented process (q) Top level
(b) Multi-dimensional (b) Middle level
(c) Continuous process (c) Lorver level
(4 All of these @ None of these
Ans. (d) Ans. (6)
 Nature and Significance of Management 19

3. Ilrning, Organising, Staffing, Directing and ! 1" Management is a _ process.

C:ro{Iing is the sequence of functions in a process. (a) Very easy (D) Wasteful
nrfi$ the process. :: (c) Goal-oriented (d) None of these
m }lenagement (D) Production Ans. (c)
wr Finance (d) Marketing tr ?. Management is considered as an art because of:
(a) existence of theoretical knowledge.

^1 *lich lel'el of management ensures coordination (r) personalisedapplication.

i tle activities so that work progresses as per the (c) based on practice and creativity.
ilils? @ All of these
,r| Top level (6) Middle level ,\*s. (d)
rcr Lower level (4 AII of these i3. Management is all pervasive because it is required
in:
-: :nfr the force which binds all other lunctions of (a) small organisations only.
- .:, lgement. (b) big organisations only.
. Production (D) Stalfing (c) partnership firms only.
, \larketinq, (A Coordination (d) all types of businesses.

F
Ir , :;k of coordination results in:
a*s. ({
1.4. Apetrol pump needs to tle managed as much as a
school or a hospital. Which feature of management
- delaf in work.
- duplication of work. is being highlighted here?

- overlapping of activities. (a) Goal-oriented process

*' All of these (b) All pervasive
(c) Continuous process
,h. (il Dynamic function
f he characteristics of coordination are:
,tars. (b)
) | integrates group efforts.
{5. At which level of management the managers are
'i r ensures unity of action.
responsible for the welfare and survival of the
- r continuous process.
organisation?'
dr All of these
(a) Top level (D) Middle Level
Ars ; (c) Lower lerrel (d) All of these
t \lanish is serving as a foreman in a factory. At which
An:1" (a)
ler elof management is he working?
! f)" theprocess of designing and maintaining
i u\ Top level (D) Middle level
an environm€nt in which an individual working
rr') Lower level (d) None of these
together in groups efficiently accomplish desired
As" .-) goals.
9. \\ hich of the following is not an organisational -is
(a) Management (b) PartnershiP
obj ective? (c) Staffing (d) Planning
(a) Earning profits Ans. (a)
(D) Survival ofthe organisation .!
Sales Manager are a part of:
T" Purchase Manager and
(c) Growth of the organisation (u) top Ievel management.
(d) Providing employment opportunities (b) middle level management.
-{ns. d\ (c) lower level management.
10. Providing facilities of schools, creches and hospitals (A None of these
is the objective of management. A*s" (6)
(a) Organisational (6) Social !S. "Planning, Organising, Staffing, Directing and
(c) Personal (4 All of these Controlling" are the functions of a process.
rn:. (b) ---
[lrfnswer/Obiecrive Type euesrions [t Mork] 8. A manager should maintain balance between
l[ contributes { 1 on sale of its each notebook and _-
r"Fz:di primary education. Identifli the objective of 9. Since management deals with human beings and human
E -?nasement is trying to achive. behaviour, it can be termed as a

r ixial objective tr0. Organisational objectives of management are

and
' Fersonal objective --.
:, Economic objective 1I. Management is an intangible force. (True/False)
i \one of these 12. Middie level management is responsible for the u,elfare
and survival of an organisation. (True/False)
he trnction of management which bridges the gap
ltrsen n'here we are and where we want to reach is:, lf. Coordination and cooperation are required together rn
an organisation. (True/False)
r Organising (&) planning
: Controlling tr4. Volvo Ltd.'s target is to produce 10,000 shifts per.month
(A Staffing
at a cost of T 100 per shirt. The production Manager
re :uaction of management under which performance
achieved this target at a cost of { 90 per shirt. Do 1.ou
:"*-mpared with the standards laid down is: thrnk the 'Production Manager' is effective ? Give one
; OryanisinC @) Staffing reason in supporl of your answer.
Controlling (@ Planning 15. 'Management is multi-dimensional'. Enumerate anv t\\.o
hAofthe following is not firnction of maaagement?
a dimensions of management. ICBSE Sample paper 20t I ]
r, Planning (D) Organising 16. Managerial activities are performed in all types of
,, Sraffing ({ Grouping organisations in all departments and at all levels. Which
-tr.{ of the following not a feature of management? management character is highlighted here'?
', \{anagement is a goal-oriented process. [CBSE Sarnple Paper 20ll]
, \{an4gsrnent is all pervasive. 17. 'In an organisation employees are happy and satisfled.
, Uaaagementis single-dimensional. there is no chaos and the effect of management is
', \fanagement is a dynamic function. noticeable.' Which characteristic of managemenr is
"Cch of the following is not a function
highlighted by this statement ?
of lower level
nq.gers?
18. What is meant by 'Management of people,?
Preparing daily plans [Delhi 2G1{]
, Guiding the workers 19" What is meant by 'Management of Work'?
, Training the operatives [AlI lndia 20ia]
', Coordinating the activities of different deparfrnents 20. Mention one feature of art which is apphcable to
rarrdination is required
management. IHOTSI
I aI top level management. 21. Anyone can be called a manager irrespective of the
, at middle level management.
educationalqualificationpossessed. Why'? [HOTSI
i at operational level management 22. Identify the nature of management when it is said to be
r a systematised body of knowledge that explains cefiain
aI all levels of management.
general truths. [Dethi 2ti12]
 I

EM

@g;
D QUTSTION BANK
:hr/Obiective lype Questions [l Morkt 5. Fayol says that discipline requires:
EM (a) good supervisors at all levels.
t b a nirt that principles of management are
(b) agreements should be clear and fair.
Enc
EI: (c) penalties should be fairly imposed.
he thel'are to be followed absolutely.
AII of these (d)
ed
hnfiey can be modifled as perthe situation.
Ans. {d)
lrrrr they are formed by practice and
clEbcltation. .6. What was the profession of FW Taylor?
Er- (a) Mechanical engineer
he thev are universally applicable.
(6) Doctor
hE (c) Scientist
M] -
. : l. ,)f management aims at securing the (d) Psychologist
h$i' rrd derotion of employees by giving them fair Ans. (")
rrl I

d,ry rrertment? 7. Which of the following principles of management

It tirr.tion (b) Equity formulated by Taylor for managing an organisation
Im (d) Unity of command scientifically?
(a) Harmony, not discord
l ' ' LL,r*ing is a significance of principles
(b) Cooperation, not individualism
I (c) Science, not rule of thumb
hrrrile managers with useful insights into (d) AII of these
Er Ans. (d)

f Qftm utilisation of resources and effective 8. Which of the following is not concerned with llenri
rf,irt:1isa Fayol?
tir-Ec decisions (u) Scalar chain (D) Order
IdtlGsc (c) Inifiative (A Time study
Ans. @
- 9. Which of the following statements is related to
-:: ,re of time study?
:
division of work?
- . r ihc anrount ofrest interval
(a) Resources should be divided equally among
bCrcrtiete between efficient and inefficient departments.
Irfltr (D) Wbrk should be divided into smaller tasks.
bkrrire the fair days work (c) Subordinates should be divided among superiors.
-: i;,Jrrrlec€ssarl, motion of workers (d) Departments should be divided into sub sections.
Ans. (b)
 44 Za?ane astcd@ Business Studies_l2

10. Who is known as the father

of scientific management?
(u) FW Taytor (6) Harota Koontz 19. is the technique of scientific
managemenr
(c) Gilbreth (d) r{enrY FaYoI that is the extension of
principte ,i rirrr* of rvork
Ans. (a) and specialisation to the
shop floor.
Ans. Functional foremanship
ll. Which work study is used
to study the various 20. oMotion study, helps in
rifring, purting onlects and improving the efficiencv
sitting of
;ff[:Htike workers. (True/False)
(a) Time study (D) Motion study
Ans. True, as it elim
the unnecessarv and
(c) Fatigue study wastetu'
(/) Method study movements *
Ans. (6) ":l:;:
21. The principles of management are rigid. (True/F.alsel
12. Which principle of Ans. Faise, as these ar
management is violated
employee receives orders if an ed b,
(a)
from two or more superiors? the manager(,, il.1T:':;:,',1?,::#rnodin
Unify of direction ,Science,
(c) fAl nir.ipfir" 22. not rule is a technique or scientifi
Unity of command (d) Division of work c
managemen,
Ans. (c) 1r.::i}r,S'
Ans. Faise, as .Science,
not rule of thumb,is
13. Which of the following scientifi c rnanagement.
a principle of
is a principle of management
given by Taylor? 23. The principles of nranagement
(a) Division of work are contingent' (True.
(6) Remuneration of employees
False)
(c) Unity of command Ans. ?nre. as these are dependent
upon prevailing conditions.
2.1. .Unity of command,
@ Science, not rule of
thumb Iays down that aII the
divisions
Ans. (d) ofan organisation should
fruu. or. rni"ctive and
head over it. (True/False) one
14. Which of the foilowing
is a feature of principles Ans. I'alse. as ,Unity of command,states
management? of
that an employee
(a) Universal should receives or
(6) Behavioural
(c) Flexible
@) All of these
rt prevents
",,enhances
employee and
#'" r:[ffi :: Tii"T:,Tr"T *
Ans. (4 his performance.
25. What are principles
15. Which of the following of management?
statements describes .6Unity Ans. Principles of management
of directiono, the best? are broacl and general
(a) One head one plan guidelines for decision_making
and U"ioriou..
(b) One subordinate one superior 26. Why is it said
a gem ent prin
(c) Work shoutd ne aiviaeiinto universar roo,,"lll,iril"n
cipl es ha'e
(d) There should be a place iifferent tasks
;{ns. Managernent principtes
fr, and are appticabte ," fil.}|:::l
everything should be
at its right"uu"Vtfring
place. organisations. business
,s *.li u, nor_brri,,.ss. pubiic
Ans. (a) sector as well a: sector' manufacturing
16. is the formal Iines of authority as the service ,..,111t"tt
as well
and
runs from top to bottom 27. 'The principles of
;ITJJJ"ff:lxthat rever management do not provide
readymade, straitjacket
Ans. Scalar chain ,olrtion, to alt managerial
problems,. Which nature ofprinciples
17,
involves a complete chan is highlighted here ?
J.uru*"r.r,
in mental ou tlook and attitude ge {HOTSI
of workers and Ans. General guidelines to
management towards action
one another from competition
to cooperation. 28. Give any one re,
Ans. Mental revolution do not provid. .#; ;il.T'[:l:f :J;,ffiffi:Hi
problems.
18. -. aims at elimination of
superfluous fDelhi 20111
varieties, sizes al Ans" This is so because nrincinlo.
of the product' -
^r*^-^
Ans. simprification o, Yo#-u"tions guiderines,"".,,:;',';:'HiffJ:::T:llX1:;TJ:T
complex and dynamic.
I
t
t

I
! l
i

/rKAL I ILE tluE) I luN5

\i* 4. Method studY means:
,"O Short Answer/Obiective Type Questions [t Mork] (a) stucly of movement like lifting, putting'
L A manager should have the right to pttnish a subordinate workers etc.
forwilful1y not obeying his orders but only after suf8cient (1r) stuc1y to find out the best way of doing
a
his or
opporlunily has been given to him for presenting job.
her case. Name the management principle highlighted (c) study of time taken to perfotm a rvell
here.
@ study of' amount and frequency of rest
(a) DisciPline required in comPleting a task'
(b) AuthoritY and resPonsibilitY
5. 'A manager should replace "I" with '"We" in
(c) UnitY of command
conversations with rvorkers to foster team sprit"
@ Equity
principle of management is being highlighted
2. Who is known as "Father of General Management"?
given statement?
(a) TaYlor
FW (6) Henry L Sisk
(o) Esprit de corys (b) EquitY
(r) Henri FaYol (zf Goerge R TerY
(c) Initiatrve (r/) Order
3. The principal of "Initiative" indicates that: F
6. The number of principles developed by Henri
(a) workers shouldbe encourage to develop and cany (b)
out their Plans for imProvement'
(a) 10 1s

(b) remuneration payable to employees should be fair'

(c) 14 kt) 16

(c) managers should be fair and impattial while dealing 7. F'unctional foremanship violates Henry Fayol's
with their subordinates' of
(rf managers should remove the feeling oflob insecunty 8. helps to frame suitable incentive
from the mind of emPloYees' and determining labour costs'
 I
b

SOLVED QUESTION BANK

Very ShorlAnswer/Obiective Type Queslions I Morkl 7. The importance of business environment
(a\ Identifying first mover advantage
1. Which of the following does not come under the
(b) Improving in performances
dimensions of business enyironment?
(c) Coping with rapid changes
(u) Economic (D) Social (d) All of these
(c) Legal (d) Emotional
Ans" (d)
Ans. (d)
E. The positive effects of liberalisation and
2. Subsidy to cotton textile industry is an example on business and industry are:
of (a) All round competition
(a) Economicenvironment (D) World class technology
(b) Social environment (c) Both (a) and (b)
(c) Legal environment @ Neither (a) nor (6)
@ PoHtical enyironment .Ans" (c)
Ans. (d) 9. Which environment prohibits the adv
3. Booking of railway tickets through internet from alcoholic beverages?
home is an example of (a) Economic (D) Social
(a) Economicenvironment (c) Legal @
(D) Politicalenvironment Ans. (c)
(c) Technologicalenyironment 10. Demand for reservation in jobs for
(d) None of these to the _ component of general
Ans. (c) of business.
4. The economic reforms of 1991 or New Economic (a) Social environment
Policy aimed at:
(b) Legal environment
(a) Liberalisation (,) Privatisation (c) Political environment
(c) Globalisation (A A[ of these @ \one of these
Ans. (")
Ans. @
5. reduces the control of government and
11. _ is the process of analysing the
for the identification of factors which
encourages private participation.
on or have implication for the business-
(a) Liberalisation (b) Privatisation (a) Environment forecasting
(c) Globalisation (d) None of these (b) Environment assessment
Ans. (o) (c) Environment scai-rning
6. The impacf of changes in government policy on @ None of these
business and industry is/are: Ans. (c)
(a) Increasingcompetition 12. is concerned with the
(D) More demanding customers from an industry or sector, partially or
(c) Rapidly changing technological environment (a) Liberalisation (b)
(d) AU of these (c) Privatisation (d) Glob
Ans. (d) Ans. (c)
 Business Enr rrom-.: ii
enyironment includes reduction of bank ?.*" Business environment keeps on changing n.hether
rnterest rate on housing loans, inflation rates.
etc. in terms of technological improvement, shifts in
. - lr-Lottric
consumer preferences, etc. Which feature of business
n4. enyironment includes social forces like environment is highlighted here? [ffOTS]
in creasing number of working women.
;\ns. Dynamic nature
. ".ial
25. Why is it said that .Business enyironment is a Relative
environment implies using new and
rdvanced ways/techniques of production. Concept,? !*,bn*ign ?{}I tr j
-,.ihno1ogical ;\ns" Business Environment differs from country to country
and even region to region.
environment is complex which is easy to
rnderstand in parts separately but it is difficult 26. Give any one importance of trusiness environment.
to
ln derstand in totality. .4ns" It enables the firm to identif,, opportunities and getting
: -.:iness the flrst mover advantage.
' Inrerest rates significantly affects the demand o'The
' 27. understanding of Business Environment enables
r- goods and services, is an example
of political the firm to identify opportunities.,, What is meant
r iYsnmsnl. (True/False)
by .opportunities'here ?
: :1

1.,i.Mmttia 2$lll
'interest rates significantly affects the demand
. as
. Acs. Opportunities means positive intemal trends or changes
.-_oods and services, is an example of economic that will help a firm to improve its performance.
. :-omlent.
18. The understanding of business environment helps
rr Reserye Bank of India is considered as the key
-,.ulator of a country,s the managers to identify ,threats,. What is meant
economic development.
by.threats, here ?
, rue'False) l0r:lhi 20lI!
A*s. Threats means external environment, trends and changes
. .ls the Reserve Bank of India influences the interest
that will hinder a firm,s performance.
::. controls the flow of money in the economy and
: _...lres the working of banks. ?9. How does understanding business enyironment assist
: -:iness environment is the aggregate of external in planning and policy formulation?
:.es. (True/False) Ans" Understanding and analysis of business environment
ls rt is the total of help in deciding the future course of action.
a1i external forces such as
, J,;als, consumers, govemment and legal matters 30. State the dimensions of business environment.
.:lect the performance of an organisation either Ans. The dimensions of busiaess environment are:
'.
e1r, or negatively.
(a\ Economic environment
: -,Lness environment is dynamic. (True/False)
(b) Social environment
,,s business environment never remains static and (c) Technological environment
- . changing. (d) Political environment
: rt is meant by business enyironment? (e) Legalenvironment
.:: envtronment is the sum total of all individuals. 31. List any two components of economic environment.
:.lts and other forces that are outside the control
of Ans. (a) Volume of imports and exports of different items.
.:.s enterprise but that may affect its performance. (b) Rates of saving and investment.
E slet are general and specific forces of business 32. Give any two major elements of social environment.
rrrironment? Ans. (a) Birth and Death rates
, ...r'ces affect business entetprise
directly whereas
(b) Concern with quality of life
' - -rl.ces affect it indirectly. 33. Which element/dimension of business enyironment
If, ' . . -r\\ Environment includes both .specific and involves improvements and innovations which provide
new ways ofproducing goods and services and
" - .'.1 lorces,. List any four general forces. new
methods and techniques of operating a business?
[:\ti trndia 201I1
: lrrical, legal and technological conditions [Horsl
Ans. Technological environment

r ,.1[TXCE
QU ffiSTI*ru5
-.: S**rt Answ*r/&bleetive Type euestloa.es It ffiurki
An economy is truly global, where there is:
(") freedom in taking decisions regarding expansion
and contraction of business.
(.b) free flow ofgoods and services across the nations.
(.) disinvestment of public sector.
@ reduction in tax rate.
- Which of the following is not an example of legal
environment?
(.a) Baby food advefiisement must inform the potential
buyers that mother's milk is the best.
(b) Every advertisement of cigarettes should cany the
warning that "cigarettes are injurious to health',.
(c) The government of India has banned the
advertisement of alcoholic product.
(,)) Shift in demand from typewriter to computer.
. Terrorism in Jammu and Kashmir has badly affected
tourism industry in the state. Name the environment
highlighted in above statement.
(a') Social Environment
(b) Political Environment
(c) Legal Environment
(rl) Technological Environment
: Which of the following is not an example of social
environment?
(r) Equal pay to male and female workers for equal
work.
(b) Imporl of animal fat for manufacturing Vanaspati
ghee was banned by the govemment.
(.) Cell phone have taken over the market from landline
phone.
(4 A1l of these
, Globalisation means:
(a) removal of unnecessary government control and
restrictions from business and industries.
(.b) reducing the role of public sector.
(.) integration of various economies of the world.
(r/) reduction in tax rate by the government.
The govemment of lndia announced demonetisation
t 500 and t 1000 notes on
means freeing of Indian industry from all
unnecessary government controls and restri ctions.
As a parl of economic reforms, the Govemment of India
announced New Economic policv in
Globalisation has integrated Indian economv with
r.r,orld's economy. (True/False)
Business environment helps in coping with rapid changes.
(True/False)
BusinessEnvironment 81
11. An impact of govemment policy changes on business
and industry in India is rapid change in technnological
environment. (True/False)
X2. It refers to the sum total of all individuals, institutions
and other forces that are outside the control ofa business
enterprise but that may affect its performance. Name it.
lHrlTSI
tr3. Business Environment includes both .specific and general
forces'. List any four specific forces.
fDethi 20llj
14. Which feature ofbusiness environment is indicated when
it is stated that business environment is a phenomenon
that is relatively easier to understand in parls but difficult
t0 grasp in its totality?
lHoTSj
15. Business environment enables the firm to identify
opportunities and getting the first mover advantage.
Justifz it with an example.
IHOTSI
16. Mention any two elements of political environment.
17. What is included in 'Technological Environment, of
Business ?
lForeign 2014" I1l
18. Just after declaration oflok Sabha Elections 2009 results,
the Bombay stock exchange,s price index (Sensex) rose
by 2l 00 points in a day. Identify the environmental factor
which led to this rise. ICBSE Sample paper 2011]
I9. Which environment describes characteristics of the
society in which the organisation exists?
JHOTS1
20. Mention any change initiated by the Government of
India since 1991.
21" Give two changes introduced in lndustrial policy of July
r991.
22" Govemment of India is seriously thinking to allow oil
marketing public sector underlakings to fix their own
price for petrol and diesel. Which economic reform is
the reason of this change in government,s policy?
[CESE Sample paper 2Gil]
Or
it is the process by which govemment control over the
industry is being loosened. Give the term to which this
statement is trying to indicate.
tHOT,Sl
of 23. Mention some service industries where competition for
Indian firms has increased due to government policy
changes. IHOTSJ
24. When was demonetisation implemented in India?
Sltort Ansrnrer Yype eurest,ons [B/4 tricrks]
25. Give two instances of impact of changes in political
environment on companies.
26. 'Demand for reselation in jobs for minorities,refers to
an example of key component of general environment
of business. Name and explain the component.1HOTSI
.
 .

Planning 91

SOTVED OUESTION BANK

,/
,/ 9. Which function of management closely related to
Ve ryShorr Answer/Obiective Type Questions [ 1 Mo rk]
planning?
,/ t. Wlri.h of the following is the primary function of (a) Controlling (D) Staffing
management? (c) DirectinC @) Organising
(a) Staffing (D) Direction Ans. (a)
(c) Planning (d) Controlling 10. refers to future decisions defining the
rns. (c) organisational directions and scope in the long run.
2. A comprehensive plan for accomplishing an Ans. Strategy
organisations' objectives is known as: 11., refers to the general guidelines (for thinking)
(a) Policy (6) Objective which brings uniformity in decision-making for
achievement of organisational objectives.
(c) Method (d) Strategy
Ans. -Policies
\ns. (@
12. A is a statement of expected result
3. Which of the following is not a limitation of planning? expressed in numerical terms for a definite period
(a) Rigidity (D) Time consuming of time in the future.
(c) Huge costs (@ Basis of control Ans. budget
rns. (d) 13. A refers to plans developed for a one-
time project or event that has one specific objective.
4. provides the prescribed ways in which a
Ans. single-use plan
task has to be performed considering the objective.
14. Planning reduces overlapping and wasteful activities.
(a) Method (D) Budget
(True/False)
(c) Procedure (rt) Rule
Ans. True. as planning evaluates the alternatives uses of the
..(rr) available and prospective resources ofthe business and
:, The last step in the process of planning is: makes the most appropriate use of them.
(u) Setting objectives 15. Planning promotes innovative ideas. (True/False)
(D) Developingpremises Ans. 'l
i'ue, as planning requires high thinking and it is an
(c) Implementing the plan intellectual process. So, it makes the managers innor'ative
{d) Follorv up action and creative.
.(4 16. Planning guarantee success. (True/False)
',. A _ is developed for a one-time event, not Ans. Faisc. as the success of an enterprise is possible oniy
when plans are properly drawn up and implemented.
likely to be repeated in future.
(a) Standing plan (D) Single use plan 17. Planning is futuristic. (True/False)
(d Both (a) and (D) (fl Neither (a) nor (D) Ans. T::ue" as planning always means iooking ahead, it is never
for the past. A11 the managers try to make predictions
(b)
and assumptions for future.
- Which of the following are specific statements that 18. Procedures provide the prescribed ways or manner
int'orm what is to be done? in which a task has to be performed considering the
(a) Programme (6) Procedure objective. (True/False)
(") Rule (d) Method Ans. Faise, as Procedures are required steps established in
. (c) advance to handle future conditions. A procedure can
be defined as the exact lnanner in which an activity has
The first step in the process of planning is:
to be accomplished.
(a) Follow up action
(.b) Setting objectives 19. Define 'Planning'. fDelhi 20151

(c) Developingpremises Ans. Planning means setting objectives and targets and
formulating an action plan to achieve them. It is
@ None of these
concemed with both ends and means, 1.e., what is to
tb) be done and how it is to be done.
 .!F,,,, L,is F,rdl{utrt:: pt-r_rarii
that il hcing Iden@ fte type of phE
discurrrd in thr abllru pertgraph.
Ans. Shategy is the type of plan.
lilrihi. \li India l0t t r( ;j
-.r -.'. ., a 'f l]t: llt.a]1ll :aS

PRACTIC UESTIONS
-1 Shorl Answer/Obiective
' Type euesrions [I MurkJ 14. Planning ensures clarity rn thoughts
and actions, work
.'. ltich function of is carried on smoothly without interruptions.
gap berween Which
, r,..,e r,.e
are and Ti:::T: #,,?:::";Ji. impofiance of planning is mentioned
here? IHOTSI
I Planning
-' (6) controlling 15. It helps the manager to look into
future and make a
- Organising kt) Stafling choice amongst various altemative
courses of action.
- i, hich |ype of plan is a cornbination
of ob.jective.
Enumerate tl.re irnporlance of planning
indicated here.
:,-,licies, procedures, rules
etc.?
,rI Budget (6) programme 16' Foltowrng a pre-decided pian, rvhen cilc,r.r.,.,r.'X?l:
. r Strategy (r.f Method changed, may not tum out to
be in the organisations.
," l:rch of the
interest. Which limitation of planning
following is not an impofiance ofplanning? is indicated here.r
., I Reduces uncertainty
161 prornotes creativity
iHOTSI
r 17. Planning cannot foresee or assess
. Reduces creativity (d) provides dir.ection future tr.ends il the
envirorunent and thus there may
- 'r' 1:rch tlpe ofplan shows the expected
result in numerical
be obstaclcs to eilective
planning. Mention the limitation
. l1t:? of planning referred
here
,t Policy (6) programme 18. Which demerir ofpianning is higlilighted
r*orsr
- ) Budget (rf in rhjs .rrt.rr;;;
Obiectives - 'Middle management and otheidecision makers are
__ are those plans which determine the neither allowed to deviate fiom
plans
,-'quential steps to caffy out nor are they
some work/activity. pennitted to act on their own., lffOTSl
19. 'Planning eliminates changes/uncertainties,.
-. rlone and what not to be clotrc
Do you
in a specified situation. agree ? Give reason in support
of your answer.
l:icrease in sale by l0%, is an example of a policy.
I ruer'False) 2t). What is the,ext
of action?
step after r.,:T;;;ffiffi:::::J
'.rnning facilitates decision_making. (True/False)
i,rategy is a general 2i. Lnplementing the plan is that
step in plarming process
statement that guicle thinking
or where other manageriar functions
rennelise cnergies towards
a particulalr direction. (True/ ur* ln-. into the
picture. Explain with an example.
rtSe)

- .lnning lays down the 22. State first two steps in the process
base for other functions of of planning.
'.:inagement.
Which feaflrre of planning is highlighted
23. 'To se'e whether plans are being
implemented and
.:c ] actn.rties are.being performecl
ac"lo.aing to schedule,,
,, llroTsl ls a step of planning process.
Identify the step.
llan is fi.arned, it is implemented
and is lbllowed by
ntlter plan and so on. Mention
tj.re feature of-planning 24. what do you unclersrand by clerivative
.:iicated here. Jil1j;o*'0"'
lH0TSi 25. Policies are guides to manageriar action
- r'-aruring
is done for achieving the organizational and decisions in
goals., the implementation of strategy.
- -, 1.,ou agree ? Give one reason in support of Support *nf, un example.
vour 26. Give the meaning of ,Rule,
)t\.ef. as a rype of plan.
r,.r,,ing always
leads to success., Do you
:;sor1 ir1 suppofl of-your ;::;:rTj 27. Give the meaning of,,Strategy,
rro.ollTiil.'0",
answer. l,&tt tndia 2S12| ". "
fForeign i0i5l
\

"t

LVED QUESTION BANK

Very Short Answer/Obiective lype Questions [t Mork] 4. Which of the following is the right
to take decisions?
1 aims at creating an organisational (a) Authority
structure, clarifying jobs and working relationships (D) Responsibility
and effectively deploying resources for the achievement (c) Accountability
of desired organisational goals. (d) None of these
(a) Staffing Ans. (a)
(b) Organising Which of the following originate*
(c) Planning interactions?
(d) Controlling (a) Formal Organisation
Ans. (b)
(D) InformalOrganisation
,, (c) Delegation
Which of the following implies being responsible/
answerable for the final outcome?
@ Functional Organisation
Ans. (b)
(a) Authority tlt
6. refers to concentration of
(D) Responsibility ir
management levels'. Name
(c) Accountabilit-v (u) Centralisation
(d) None of these (D) Decentralisation
Ans. (.) (c)Both (a) and (D)
3. Which of the following is an obligation of a subordinate
(@ Neither (a) nor (D)
to properly perform the assigned work duties? Ans. (")
(a) Authority 7. Fixing of responsibitif"v" is
(D) Responsibility (,a) Functional Structure
(c) Accountability (D) DivisionalStructure
(d) None of these
(c) Both (a) and (D)
(tl) Neither (a) nor (D)
Ans. (b)
Ans. (1r)
 Organising 113

8. In which organisation flow of communication takes 17. Functional structure is suitable for those business
place through scalar chain? enterprises in which large variety of products are
(u) Formal organisafion manufactured using different productive resources.
(b) Informal organisation (True/False)
(c) Both (u) and (b) Ans. False, as functional structure is suitable for large
@ Neither (a) nor (b) organisations requiring high degree specialisation for
m.(a) an enterprise
9. The first step of organising process is: 18. Decentralisation develops managerial talent. (Tiue/
(a) Granting authority False)
(6) Establishing reporting retationships Ans. True, as through decentralisation, employees prove their
(c) Identification of activities abilities and create a reseryoir of qualified manpower
(d) Grouping of activities that can take up higher positions in near future.
n (c) 19. Define 'organising, as a function of management.
ll. Which of the following is not an advantage of [AlI India 20t4, tjl
functional organisational structure? Ans. Organising function of management aims at creating
(a) Coordination an organisational shucture, clari$ring jobs and work
(b) Difficult to fix the responsibilities relationships and effectively deploying resources for
(c) Specialisation the attainment of identified and desired results.
(d) Effective control
20. Give the meaning of iOrganisiog u, u process,.
[AIl India 20161
\\ hich of the following is a limitation of formal Ans. Organising as a process deals in initiating the
r:anisation? implementation of plans by clarifzing jobs and working
-. \o clear cut structure relationships and effectively deploying resources for the
', Social interaction attainment of objectives.
. Personalsatisfaction
21. List the last two steps of organising.
-' Rigidity
Ans. . Assignment of duties
r Establishment of reporting relationships
refers to that specific pattern of
'- rtionship 22. 'lt refers to be identification and division of work
created during organising process.
which has to be done as per the previously determined
-.,tilsational structure plans.'Identify the step in the process oforganising.
=- activities are grouped and departments Ans. Identification and division of work
."- .reated on the basis of specific functions to be
-l rrmed. 23. What is departmentalisation?
,

- rnal structure Ans. Departmentalisation is the process of grouping small

-=_.- specifies clearly the boundaries ofauthority
.- - :erponsibility of its members.
,. urrganisation
-'.tional structure leads to product specialisation.
. f llse)
.,: functional structure leads to occupational
, :.r.iion.
- risinS helps in personnel development. (True/
. ,-,rganising gives employees opporfunities to
. .:r talent and empowers them to use their skills
" :rperience.
- "'"'""s"f,
and manageable activities which are similar in nature
in a group. It facilitates specialisation
24. What is the importance of establishing reporting
relationship in organising?
Ans. Establishing reporLing relationship in organising creates
hierarchal structure and helps in coordination amongst
various departments.
25. State any one importance of organising function of
management. .
Ans. Organising helps in the growth and expansion of an
enterprise by enabling it to deviate from existing norms
and taking up new
anlt other importdnce)
 I

TICE QUESTIONS
rtAnswer/Obiective Type euestions Morkt (6) It clearly defines the authority and responsibilirv
[l
:h of the f6llowing is an advantage of divisional of every individual.
are? (r) It is not deliberately created by the managemenr.
Drylicity of functions @ It is personal means the feelings of individuals are

tQuick decision-making kept in mind.

attitude
,i. Which of the following is an imporlance ofthe Delegation
-ffish of Authority?
Ionflicts
(") High morale of subordinates
n of the following is not a feature of informal (b) Develops initiative amongst subordinates
ru:'nin-?
(r) Limited in scope
, .:o u,ritten rules and procedures. Both (a) and (h\
@\
130 76gcee. ca*d@ B:usiness Studies-I2

"i. Which of the following is not an element of delegation? Short Answer Type Queslions [3/a Moffi
(a) Authority
?2. How does organising help in coordination and
(b) Centraiisation
(.) Responsibility 23. What is meant by functional structure of an
(d) Accountabiliry State its any two disadvantages [Foreirr
5. Which of the following is a disadvantage of functional 24, Describe the imporlance of an informal organt-: -rl-

structure?
25. The employees of Manik Ltd., a software
(a:) Difflculty in inter-departmental coordination have formed a dramatic group for their recreatio:
(b) Helps in increasing managerial efficiency the type of organisation so formed and state i.
(c) Minimises cost
Papr
features. [CBSE Sample
kl Coordination is established
*. is the division of decision-making and Or
responsibilities among hierarchical level State any three features of 'Informal Organisa: -

1 means granting of authority to

subordinates to operate within the prescribed limits.
ll" Formal organisation is a structure created by management
defining authority and responsibilittes of every person.
(True/False)
1). Delegation of authority helps in employee development.
(True/False)
i$" A manager should eliminate informal organisation for
the best interest of the organisation. (True/False)
ltr. Organising leads to a systematic allocation of jobs
amongst the workforce. Which importance of organising
is stated here? []-{OTS]
12. It is formed by grouping together the entire work to be EvqluEti6n Bosed Questions
done into major functional departments. Name it.
IErors]
tr3. Identify the type of suitable organisation structure for
a large scale organisation having diversified activities
requiring high degree of specialisation in operations.
[;{ll lndia, }"orcign i{ll3}
i 4. Differentiate between' formal' and' infomal' organisation
on the basis of 'origin'. [Dei]ri 20i71
85. State any one advantage of 'Formal Organisation.'
[!]eihi 2t!I,{l
organisation'.
trS. Define 'formal Ulelhi 2015i
{7" One category of formal organisation structure include
Functional strucfure. Mention the other one.
1tt" On the basis of delegation, compare authority,
responsibility and accountability.
X 9. Differentiate befween' formal' and' informal' organisation
on the basis of 'flow of communication'. ;Alt lndia ?sI?l
t{}. Give the meaning of 'Accountability' as an element of
delegation. {Foneigm 2i}1,ii
21, Decentralisation diminishes the amount of direct
supervision exercised by a superior over the activities
of a subordinate. State the importance of decentralisation
refen:ed here. iHSTSi
IAll lndt,
*:{*. Distinguish between authority and respot.rsibili:' -:
basis of:
(a) Direction or flow
(b) Delegation
(c) Origin
2?" Explain how delegation of authority is a st-:-.
development of managers.
28. Briefly explain how delegation of authoriq'
organisation growth.
29. Royal Ltd. decided that whenever a person
pafiicular age, he will be promoted. Influencec :
plan of the company, several employees ol trc'-
companies also joined the firm. But within ti;
they realized that the firm has pre-determined :.
structure without free communication.
On the basis of this, answer the following
(l) Identify the type of plan.
(ir) Identifiz the type of organisation describe;
(iii) Point out any two limitations of this tt;!
organlsatron.
3[}. Anjali is manager in areputed advertising compani
of business is inueasing day-by-day. Accordifl
workload is also increasing in the same propornol
almost 10 to 15 varieties of work to handie due::
she cannot concentrate on the most impofiant mi,:=r
requires a person who can share her burden so th-
resffict activities which she herself could do.
(a) What should Anjali do to reduce her burc-
(b) After the above concept, ivill she be
for the performance of the assigned tasis
(c) Discuss the elements of given concept.
 - rintly:

ED QUESTION BANK
Short Answer/Obiective Type euestions 7. Underwhich method of on the job training, a trainee
[l Morkl
r*tich selection test aims at measuring the individuals is put under the guidance of a master worker.
Frtential to learn new skills? (a) Apprenticeshipprogramme
rrr lntelligence test (]) Aptitude test (6) Internshiptraining
Bx Personality test id) Interest test (c) Vestibule training
Itu ll' (d) Job rotation
TlLr process of staffing includes: Ans. (a)
rs Estimating manpower requirements
8. Which function of the management concentrates on
tSn }ledicalexamination
rrs\ Employmentinterview employing the right person at the right position?
hJl Sclection decision (u) Organising (6)Staffing
(c) Controtling (d1 Directing
ilUEL of the following is not an external Ans. (6)
source of
Eriunent., 9. Which of the following is a limitation of external
h -ddr-ertisement sources of recruitment?
,,lF Casaal callers (a) Lengthy process (D) euatified personnel
F homodon (c) Wider choice (d) Competitive spirit
Prcommendation of employees
[O Ans. (a)
10. consists ofmanpowerplanning, recruitment,
is a career-oriented process.
'- selection, training, compensation, promotion and
:t lng (D) Development
maintenance of managerial personnel.
. -Iir,ln (d) None of these
Ans. Staffing
rmrrnal sources of recruitment are: Ei. Staffing is a part of
Treasfer Ans. Human Resource Management
(6) promotion
Emfi la) and (D) (d) Neither (a) nor (b) 12. --.-is the process of choosing and appointing
the right candidates for various jobs in an organisation

, lhe last step in the process ofselection. through various tests and interviews.
n riecision Ans. Selection
rF 13. and are concerned with
-.; r r-rf ernployrnent the process of introducing a new employee to an
' :1 tests organisation.
Ans. Orientation, Induction
142 tttc&@ Bl';sitress Studies-12
"ardi"/t
rarely done 23. State how staffing ensures 'continuous
14. Reference and background checks are [.\ll I: :;r
growth of the enterPrise''
in selection process. (True/False) :
and gr.',
to verify Ans. Staffrng ensures continuous survival
Ans. False, as it is done in selection process
enterPnse through the successl0n planning
I f'.
information and gain additional information of the
aPPlicant. 24. How does staffing treat human resourcesl
organisation
15. Employees become lethargic when an Ans. Staffing treats human resources as assets'
of recruitment' (True/False)
uses internal sources
25. List any two specialised activities performcrd
Ans. True, as employeesbecome sure oftimeboundpromotion'
only' Human Resource Management'
16. Training is beneficial to an orgarrisation and Traing and developmeni c':
(Tfue/False) Ans. Recruitment

Ans. False, as training is beneficial to employees

also' as it 26. What is the role of human resource
achieving the organisational goals?
leads them to better career' Ans. The success of an organisation in achier--'l
of depends to a great extent on the competen';-
17. Staffing helps in ensuring higher performance
emPloYees. (Tf ue/False) and performance of its human resource
right person
Ans. True, as staffing helps in the putting the 27. Mention first two steps in the proces'
r'i
on the right job, thus, ensures higher performance of
function of management'
emploYees.
.\ns. (a) Estimating manpower requirement
18. Internal sources ofrecruitment leads to dissatisfaction
(1r) Recruitment
among existing staff. (TfuelFalse) oWorkforce AnalYsis"
creates 28. Define
Ans. False, as it is extemal source ofrecruitmentwhich ac
dissatisfaction among existing staff' Internal sources
of Ans. Workforce analysis reveals the number
recruitment motivates the staff' available.

19. Internal sources of recruitment are economical

as
29. What is workload analYsis?
compared to external sources of recruitment' -r:r
Ans. Workload analysis is an assessment of
(True/Ialse)
type ofhuman resource needed for pert
the expenses
-----
Ans. False, as in internal sources ofrecruitment' 30" Give the meaning of 'Placement' a!
r
on advertisement, conducting interviews and giving process of staffing.
induction training are not required, thus' it is more
economical. Ans. Placement refers to place the right pe:=-':
job.
20. What is meant bY staffing?
m
Ans. Staffing is the function of management concerned
with 31. What is the next step after selection
a satisfactory and of staffing.
obtaining, utilising and maintaining
satisfied workforce. Ans. Placement and Orientation
21. It is defined as the management function of hiring and
developing the required personnel to fill in various
positions in the organisation' Mention the term'
lHoTSl
Or
It is described as the managerial function of filling
and keeping filled the positions in the organisation
structure. Which function of management is referred
here? lnorsl
Ans. Staffrng
22. Mention one benefit of proper staffing
to the
organisation.
Ans. It helps in ensuring optimum utilisation of
human
Iesoulces.
L

#nclcE QuEsTloNS
\d"o Shorl Ansrver/obiecrive Type Questions [t Mork]
the process of selection
I " Which type of test comes under
test?
test
(a:) Intelligence (b) Personality test
(.) Aptitude test (r0 A11 of these
a benefi't of training to an
?" Which of the following is
organisation'?
(,1) SYstematic leanring
turnover
(b) Reduces absenteeism and employee
(r) Increases workload of employees
(d) Both (a) and (b)
of Human Resource refers to shifting an
3. The specialised activities and duties 6.
ot
Management are:
p itio, utryin g hi gher re
o---o, s P
s
"
facilities and
(a) Recruitment, I'e', search for qualified people' PaY.

is a measure of an individual's potential
of learaing new skills.
'Promotion' is a vertical shifting of employees. (True/
False)
Selection is a positive process.(True/False)
Employment Exchanges are a good source of recruitment.
(Trte/False)
'Staffing is an inherent part of human resource
management'. Do you agree?
What is meant by 'Estimating manpower requirements'
as a step in the process of 'Staffing'? il,;e!hi i{.|i?l
\Vhat does workload analysis assess'l
Why is it said that recruitment is a positive step in the
rrocess of staffing? l{li3.sil' S*t}rFic f}tper
It seeks to attract suitable applicants to apply for available
obs. Name the term.
step in the process of selection helps the manager
"\'hich
r eliminating unqualified or unfit job seekers based on
re information supplied in the application forms?
'' hat is a fonr,al, in-depth conversation conducted to
,'. aluate the applicant's suitability for job called?
,,me the methodof training in which the trainees leam
thc equipments they will be using.
i Answer Type Questions [3/4 Morks]
t,lat purpose does performance appraisal serve?
! -rternal sources of recruitment are better than internal
,: urces of recruitment.' Do you agree with this statement?
:-\ e two reasons in suppotl of your answer.
[All India, Foreign 2011]
! ::c is intense competition now-a-days among the
:panies to hold back its employees so that they do
-cave theirjob and join another company. For this,
:rnies like Dabuq Reliance, etc. are ready to give
-ierm increments and out-of-tum hikes of
r performers.
\ccording to HR chief of Dabur lndia, what
.:rconvenience is faced by the company if it loses
.i:r employee'l
',\ hat
ways company is devising to retain the
:;rployees who are tempted to leave?
iQur:stion $i*:* l\tlE"lti S*ri
- - the external source of recruitment which is used
r companies is the recommendations of present
. (or Employee Referals). Such applicants are
ees
,r be good employees because their background
-'lrently known. At Jupiter Networks, the referral
Stafflng 157
system accounted for 50% ofthe 290 employees recruited
in a parlicular year. Many companies especially in IT
companies offer bonus or gifts like mobile phones
or holiday packages to their employees for referral.
The companies are giving more focus on this type of
recruihlent.
Describe the benefits derived by a company due to
employee refemal. [Question from NCERT Bor]
23. It is for selection of employees to measure
a test used
individual's potential for leaming new skills. Mention
its name and explain two other tests also. IHOTSi
2,{. State whether the following statements are true or false:
(a) Personnel manager is both a line manager as well
as staff manager.
2f}1tr1 (6) Staffing and employing refers to the same activity.
(.) Personnelproblems exist only in large organisations.
i{l{}'r$i (cl) Recruitment and selection is one and the same thing.
(e) Training and development are synonymous.
25. Atul is working in an organisation. After every three
months his manager transfers him from one department
[Ii[t]T$I to another so that he may gain a broader understanding
of all the departments of the organisation. Name and
explain the method of training Atul is undergoing.
l{l{}TS} [AII lndia 20tr21
8"ong A.nswer Type QLcesfio,'ls [516 fulorks]
?6. Which source of recruitment is needed to bring new
blood in the organisation? Explain any three advantages
and any two limitations of this source. [HoTSl
2?. Explain the concept of training and any three methods
of 'On the Job Training'. lFtreign 2{}tr11
EvcEuCItio*r Essed Questions
28" Biru Nandan, Chairman of Lalit group of companies
founded 'Biru University' for undergraduate and
postgraduate courses in diverse disciplines. The
Information Technology deparlment of the 'Lalit Power
Ltd., had few vacancies related to Cyber Security.
15-20% The Human Resource Department of the Company
decided to recruit fresh engineering graduates from 'Biru
University' for the same. Identify the type of source of
recruitment. fDelhi 20191
29. XYZ Ltd. is setting up a new plant for manufacturing
jute bags. For its new plant, it needs highly trained and
motivated workforce. To recruit competant middle level
officials, HR manager of XYZ Ltd. went to different
colleges and universities and to recruit lower level
workforce, he puts a notice on the gate of company about
the requirements of the fim. Identifl, and explain the
sources of recruitment referred in the above paragraph.
lDoEi
170 'Tagdia aczd@ Btsiness Studies-l2

LVED QUESTION BANK

Very Shorl Answer/Obiective Type Queslions [I Mork]
8. _ refers to a Process
to lvork willingly for group objectir.es.
1. Choose the function of management responsible for (a) Leadership (6) Sup
motivating employees and giving instructing to them (c) Communication (d) Motir arion
to perform the tasks assigned to them. Ans. (a)
(a) Planning (b) Staffing 9. 'Encouraging staff to be a part of
(c) DirectinC (A Controlling making' is a I'eature of sqle
(a) Autocratic (D) Democr.t::
Ans. (c)
2. Status comes under:
(c) Laissez-faire
- (d) None of
Ans. (6)
(a) Semantic barriers of communication
| 0. 'Fautty translations may transfer
(D) Personal barriers of communication
is an example of:
(c) Organisational barriers of communication (a) PsychologicaVemotional
(@ Psychological barriers of communication (b) Semantic barriers of
Ans. (c) (c) Organisational barriers of
3. Which of the following is not an element of
(d) Personal barriers of
communication Process? Ans. (b)
(a) Decoding (r) Channel 11. is an activify of
(c) Receiver (A Media strive willingly for organisational
Ans. Leadership
Ans. (D)
12, the Process of
4. The highest level need in Maslow need hierarchy to their best ability to accomplish
theory is: Ans. Motivation
(a) Safety need 13. leader gives orders onh
(b) -is
Self-actuaHsation need the grouP and works out the
(c) Belongingness need acceptance of the grouP.
(d) None of these Ans. Democratic
Ans. (6) 14. leader gives comPlete
oPremature evaluation'is a subordinates and avoids use of
5. barrier to effective
Ans. Free-rein
communication.
15. is the Process of
(a\ Semantic -
(D)
-between two or more Persons t0
Psychological understanding.
(c) Personal --
Ans. Communication
@ Organisational 16. Directing integrates employees
Ans. (D) Ans. Tnte, as directing ensur€s that even
6. The first need in the Maslow's need hierarchy theory contribute towards the
of motivation is: 17. Motivation is a complex process.
(a) Esteem need ,dns. True, as any one fype of motivation
(b) Safely/securitY need effect on all the members.
(c) Basic PsYchological need 18. Directing is not an executive
(d) Affitiation/belongingness need

Ans. (c) Ans. Faise, as directing is initiated at the

to the bottom through organisationa-
7. a non-financial incentive.
19. Directing is a pervasive function of
(a) Bonus (6) Perquisites
-is Profit sharing
(c) (d) Status
Ans. Tri-te, as directing takes place "r'::-:"n@
Ans. (d) subordinate relationships exists.
 rw u4rrtul ltElE.

FACT|CE QUESTTONS
* Onswer/Obiective Type
f euesrions [t ltiork]
,h olthe fbllowing is not a feature
(.c) Pay and allowances
kn Employecs recognition programrnes
of motivation?
i: is a continuous process. -1. Which one of rhesc .

il ensures issuing instructions. (rz)Autocra,,.".o;';;lleorleadership?

(D) Democratic or pafiicipative
Ir is an internal fbeling.
G) Neither (a) nor (6)
li can be either positive or negative. (.d) Both (a) and (6)
,n of the following is an example 4" Which one of these is
an advantage of formal
;. ^,r
of financial
- communication?
i areer advancement
(a) Spreads rapidly
opporfunitV (h) Ease rn fixation of responsibility
r )r:ganisational climate (") Flexible
(d) Satisfies personal neecls
184 76gdee' aetd@ Btsiness Studies-12

5. Which of the following is a disadvantage of informal ,13. What is meant by 'Encodin_s' ,,

communication? communication?
(a) Unorganised and irregular il. What is meant by 'Decodin,- -,
(b) Socialsatisfaction communication?
(c) Fill the gaps
l-i" What is meant by 'Feedback .
GD Fast comrnunication
communication?
6. are concerned with problems and
obstructions in the process ofencoding or decoding of Short Answer Type Queslions
message into words or impressions.
25. What is meant by Need Hierarci_.
is a non-financial incen tive, involving
i6. Blue Birds Ltd. offers to its
designing job with greater variety of work content.
at a price which is less than the
8. is financial incentive over and above wages/
(a) Name and explain the n pe - ,
sa1ary to the employees.
the employees.
9. The software company promoted by Mr. Narayan Murthy
(b) Explain one more incentive oi::."
is HCL. (True/False)
27. Amit and Mikki are working in the same
1t!. 'Status'is one of the semantic barriers of communication
in different deparlments. One day at lunch trm;.
in an organisation. (True/False)
informedAmit that due to computerisation,
t l. A leader plays a key role in introducing required changes
are going to be retrenched soon from the
in the organisation. (True/False)
Name which tlpe of communication is this.
12. Informal system of communication is also referred as
two limitations of this type of communication
the'grapevine communication'. (True/False)
tr3. It is concemed with ?*. Name the type of formal communication
instructing, guiding and inspiring
people in the organisation to achieve its objectives. Name through following examples:
it. [H{}T's]
(a) Application for grant of leave
14. Every manager from top executive to superior performs (b) Sending notice to employees to attend a
the function of directing. Which characteristic of directing
(c) A production manager may contact
is refened here? tH(}TSl
manager to discuss about schedule r.:
15. In what two ways the term supervision can be understood?
delivery product design, quality, etc.

FroTSi 29. Give the name of the barrier mentioned

86" Name the process of stimulating and inspiring people following statements:
at work to accomplish desired objectives. (a) These are concemed with problems and

[CBSE Sampie Paper ?018i in the process ofencoding and decoding

t?. Motivation can be either positive or negative. Give two into words or impressions.
examples of negative motivation. IIIOTS] (b) A worried person cannot communica:.
18. State one negative aspect ofjob security as an incentive. and an angry receiver cannot

IH0TS! meaning of message.

19. What does communication that take place independently (c) Factors relating to organisation

at the formal line of authority known as'7 p{8TSl relationships, rules and regulations
?{i. It is a process by which people create bariers.
and share
information with one another in order to reach common Qd Personal factors of both sender and

understanding. Which element of ditecting is referred exert influence on effective

hete? tHOTSl
2t. Which element in communication process relates to the 30. There are some barriers in
process ofconverting encoded symbols ofthe sender? concerned with the state of minc
[HOrSi the receiver. State any three suc:.
 \,

r:tsure
order arru urov,r-
, .an the company
relate its planning with controt
- -iii line of business
to ensure thatlts plans are ,:r.ens.
. -,"llr implemented and targets attained.
Not in Syllabus

ED QUTSTION BANK
5ho6 4n*"r/Obiective Type euestions
[I Morkt (c) Both (a) and (b)
Xdendfy the function of
management which aims (d) Neither (a) and (b)
'lh*r acfiyities conform to the standards set so that Ans. (6)
Itganisational goals are achieyed
4. Which of the following is a limitation
-[ Planning (D) Controlling , (a) Judging accuracy ofstandards
of controlling?
d, Direction (d) None of these (6) Litfle control on external factors
h (c) Both (a) and (6)
is thefirst step in the process of controlling. (/) Neither (a) and (b)
,, \[easurement of actual
performance Ans. (6)
\ rning performance
standards 5. Which of the following statements
r.nalvsing deviations is correct?
(a) Planning and controlling are the essentially
, i:king corrective action and the same.
one

lr
Fct (b) Controlling is the part of the planning process.
of the following is an importance
(c) Controlling can be a substitute for plfnning.
H
pl Cmrty affair
of controlling?
(A n, control process is meaningless without
pre_
' determined goals set
' nrures order and descipline
Ans. (d)
194 trag.*rd*o E<rurds Business Studies 12

6. The last step in the controlling process is: 16. Which function of management ensul-E-{
(a) Analysingdeviations activities conform to planned actirjriei
(b) Comparing actual performance with standards Or
set
Name the function which rerieu.s tht
(c) Taking corrective action
a business unit.
(d) Measurement of actual performance
(.) Or
Ans.
7 Which of the following shows the relationship between Planning is an empty exercise n'ithout
planning and controlling? of management. Mention this functilx-
(a) Both are looking forward and back Ans. Controlling
(D) Both have litt-le control on external factors. 17. Is controlling 'the end'of
(c) Both are substitutes of each other. cycle? Give reason in support of 1.our
@ Both are management functions. [CBSE
Ans. (") Or
8. Which of the following is not a feature of controlling? Controlling should not be
(a) Controlling is a positive process. function of management. Whr ?

(b) Controlling is a dynamic process. ;\ rus" Controlling is a function that brilgs

(c) Controlling improves employee's motivation. cycle back to the planning functrc,:
@ Controlling is an all pervasive function. be misunderstood as the last functr.:
Ans. (c) IS. Why it is said that oocontrolling tr
9. means ensuring activities in an activity"? lDehradu r
organisation which are to be performed as per the Ans. Controlling is a continuous acti\::'"
plans" performance has to be compared
.4tls. Controlling performance on a continuous
shorlcoming can be overcolrle.
10. are the criteria against which actual
per{brmance would be measured. i9. How does controlling helP ir
organisational goals?
;\ms. Standards
and _ both are forward as well Ans" Controlling helps in identifliag
11.
cor:rective action to put organls': -
backward looking.
so that goals are achieved.
Ans. Planning, controlling
20. Controlling judges accurao' of
12. Controlling helps in better planning. (True/False)
'?-LLri:, Ans. Controlling review and revise the
Ans. as controlling enables the management to judge
of environmental changes to judg;
whether the standards set are accurate or not.
2X. Controlling make efficient use of
13. Contrrrlling is a continuous activity. (True/False)
Ans. Controlling reduces wastage ani
Ans. i'rirt, as the actual pertbrmance is compared with the
thus making efficient usage of
standard performance on a continuous basis and it brings
to light the deviations, if any. 22. Horv does controlling improve

14. Controlling always involves taking corrective action Ans.

in response to deviation. (True/False) b".,
be appraised, well in advance.
Ans. I;alr,:. its no corective action is required in controlling
give better performance.
if the deviations are within the acceptable limits.
15. What is meant by controlling? ?3. Ithelps to minimise dishonei:
part of employees by keeping a
Ans. Controlling is the function of inanagement rvhich ensures
activities. Mention the
that activities in an organisation are perf-omred according
indicated here.
to the plans.
Ans. Ensuring order and disciplile
PRACTICE QUESTIONS
Very Short Answer/Obiective Type Questions [I lJtorkl S. Controlling is unaffected b1'the .:,:-::
i. Which technique is used for measurement of actual
performance?
, fiffiil:I::tffiJ#Ti.:kE
(a) Personal observation 10. Employees know well in advance sta
to do and what are the standards ,::
(b) Market survey
basis of which they will be apprais;,' ',
(.) Critical point control ',t,-:
them to give better performance -:
@ CCTV's footage controlling is highlighted herei
7. Which concept in the process of controlling focus on
i. What should be the 'focus-porr.: ,. -,
key result areas? controlling, as controiling at e.l.:. :: -
(a) Corrective measure possible?
(b) Measurement of actual performance i i" What is meantby 'Standards'ia :..
(c) Critical point control
i3. There are several techdques tor
d) Management by exception performance as a step in prom
,1. Which concept states that if you try to control everything does these techniques include?
you may end up controlling nothing? 14. What is compared with what, in o
(a) Management by Exception
(b) Crrtical Point Control
Short Answer Type Questions Bl
(c) Budgetary Control ! 5" "Controlling is looking back" :',.: "-m
(A Nlofthese Or
,i. Which area is identified under Critical Point Control "Controlling is backward 1o,--..-- ;
while analysing deviations? 16. Explain the concept sf 'f 0r-::: ::t
(a) Key Failure Areas that controlling should not be
(b) Key Result Areas function of management?
(") Critical Area 17. "There is a close and reciprml
(fl None of these planning and controlling." r-{f-
5. The final step in the controlling process is _.
6. Controlling canbe defined as comparison of 18. Standards can be set in bot:
performance with the performance qualitative terms. Shou' tlrt-:-:
19" State three exampies each or
7. Controlling and planning are inseparable twins of
areas - Production, MarketLr;.
manasement. (True,4False)