CBSE Questions for Class 12 Commerce Business Studies Organising Quiz 10 - MCQExams.com

Identify correct sequence/steps in organizing Function of management.:
(I) Delegation of authority and placing of responsibility.
(II) Identification and classification of activities of the enterprise consistent with its objectives.
(III) Making provision for effective coordination and establishment of definite lines of supervision.
(IV) Establishing superior subordinate relationship within the departments.
(V) Grouping various activities into workable units or departments. 
Select the correct answer from, the options given below-
  • II, V, I ,III & IV
  • II, V, IV, I & III
  • II, I, V, IV, & III
  • II, V, I, IV & III
Even the sound organizational structure does not enables managers to concentrate on important issues and hence their talent cannot be exploited to the maximum.
  • True
  • False
  • Partly true
  • None of above
In operational sense,organisation can be considered as- 
  • Consisting of divisions of work among people
  • Co-ordination of activities towards some common objectives
  • Both (A) and (B)
  • Neither (A) nor (B)
Which of the following can be treated as importance of organization?
  • It does not facilitate administration.
  • A sound organization helps in providing an appropriate platform where management can perform the functions of planning, direction, coordination, motivation and control.
  • Many companies are not able design their own organization structure due to legal compulsion.
  • All of above
Which of the following is one of the steps in organizing function of management?
  • Identification of opportunities and avoiding or mitigating losses.
  • Grouping various activities into workable units or departments.
  • Structured approach in managing uncertainty related to a threat.
  • Promote greater openness in decision-making and improves communication.
Organization is referred to as the social system encompassing all -
  • Friendly relations
  • Informal relations
  • Formal relations
  • Normal relations
 ___________, e.g., production, selling, finance, etc., is the most widely used basis for grouping activities into administrative units and found in almost every business enterprise at some level or the other.
  • Departmentation by process & equipment
  • Departmentation by products or service
  • Departmentation by product & equipment
  • Departmentation by functions
The total activities of an individual industrial organization may be separated into major functions like production, purchasing, marketing, and financing, and each such function is further sub-divided into various jobs. This is called as -
  • Developing relationships
  • Determination of objectives
  • Identification and grouping of activities
  • Risk management
Which of the following denotes answerability for the accomplishment of the task assigned by the superior to his subordinate?
  • Responsibility
  • Accountability
  • Power
  • Authority
In a matrix organization, the functional departments like manufacturing, marketing, accounting and personnel constitute the _______ while the project organization or product divisions form the______
  • Vertical chains of command, Horizontal chains of command
  • Horizontal chains of command, Vertical chains of command
  • Vertical chains of command, Vertical chains of command
  • Horizontal chains of command, Horizontal chains of command
Informal organization as the network of personal and social relationships which is not established or required by formal organization. This is as per -
  • Koontz and O'Donnell
  • Keith Davis
  • Henry Fayol
  • Barnard
Within an organization, the relationships between people in specialist or advisory positions, and line managers and their subordinates, where the specialist offers a common service throughout all departments of the organization, but has no direct authority over those who make use of the service are called -
  • Line relationships
  • Lateral relationships
  • Staff relationships
  • Functional relationships
Which of the following refers to the structure of jobs and positions with defined functions and relationship?
  • Informal organization
  • Formal organization
  • Social structure
  • Informal structure
Project organization involves appointment of the project manager usually drawn from the ranks and having responsibility for detailed planning, coordination, control and achievement of the result within the time schedule. 
  • Top management
  • Middle management
  • Lower level management
  • None of above
Statement X: Members in informal organization behave as per their emotions, feelings & influencing power of their members.
Statement Y: Informal organizations are generally made to satisfy the needs of people in formal group.
Select the correct answer from the options given below -
  • Both Statement X & Y are true
  • Both Statement X & Y are false
  • Statement X is true but Y is false
  • Statement X is false but Y is true
Responsibility is exacted _____ while authority flows _________
  • Downward; upward
  • Upward; upward
  • Upward; downward
  • Downward; downward
As per principle of unity of command of delegation-
  • subordinates must know who delegates authority to them and to whom matters beyond their own authority must be referred.
  • In case of delegation, except for the inevitable instances of splintered authority, the right of discretion over a particular activity will flow from a single superior to a subordinate.
  • Larger number of decisions and more important of them are made by those occupying higher positions in the organization.
  • delegation of authority is essential in as much as no organization is possible without delegation.
"Principles of exception" relating to delegation of authority requires that -
  • When authority is delegated, responsibility steps in and is co-extensive with authority.
  • Whether specific or general, written or unwritten, delegation of authority must be very clear in terms of its contents, functional relations, scope and assignments.
  • Problems involving unusual matters should be referred upward and decided by higher level executives.
  • Specific written delegations help both the manager and the recipient of authority.
Which of the following refers to capacity to influence the behavior of others and secure obedience?
  • Power
  • Responsibility
  • Accountability
  • None of above
___________  Means partial dispersal of authority from central/top management to lower level.
  • Delegation of authority
  • Decentralization
  • Centralization
  • All of above
The degree to which decision making is confirmed at a single point in an organization is described as ________________.
  • Unity of command
  • Chain of command
  • Span of Management
  • Centralization
One of the identified advantages of the matrix structure is "the ability to balance conflicting objectives" this means
  • The structure allows the pooling of various specialists
  • Project managers only need to use the specific staff needed.
  • Close attention to customers needs is considered along with close monitoring of profitability and technical capabilities.
  • Opportunities for professional development and technical skills exist.
A ____________ design is not limited to horizontal, vertical, or external boundary imposed by a conventional structure 
  • Learning organization's
  • Threatened organization's
  • Functional
  • Boundary less organization's
A ___________ organization uses outside suppliers to provide components which are then assembled into final products 
  • Network
  • Virtual
  • Modular
  • Learning
One of the basis types of departmentalization presented included:
  • Structural
  • Linear
  • Definitive
  • Functional
What type of organization assigns specialists from different functional departments to work on one or more projects led by a project manager?
  • classical
  • Contemporary
  • Matrix
  • Evolutionary
An online wine retailer that sells and ships hundreds of wines to customers all over the word with a payroll of six employees, most likely has what kind of organization structure?
  • Bureaucratic
  • Simple
  • Functional
  • Divisional
The strength of a _____________ structure is based on results of managers, but it has a weakness because duplication can occur easily within the organization 
  • Simple
  • Functional
  • Divisional
  • Matrix
A learning organization has developed its 
  • Educational department to keep employees trained
  • Capacity to adapt and change
  • Barriers to entry of its markets.
  • A sustainable competitive advantage that is easy to maintain
The matrix structure is really a combination of 
  • Product and geographical departmentalization
  • Line and line staff structure
  • Functional and process departmentalization
  • Product and functional departmentalization
________ is the process of using the resources and personnel of an organizing in an orderly way to achieve the objective and long term goals of the organization
  • Planning
  • Organizing
  • Leading
  • Controlling
When Amit decides Which of his employees are going to be responsible for operating which machines, he is performing which of the management functions? 
  • Controlling
  • Leading
  • Planning
  • Organizing
Job rotation, job enlargement and enrichment to its employees are some of the functional of _____________.
  • organisation
  • planning
  • control
  • motivation
Which of the following problem is most likely to occur in a matrix structure?
  • Flexibility
  • Employees receiving conflicting directives
  • Involvement of members in decision making to bring motivation
  • Loss of economies of scale
In the matrix type of organization structure 
  • Manufacturing constitute vertical of chain of command while project forms the horizontal chain of command
  • Manufacturing constitute horizontal chain of command while project forms vertical chain of command
  • Both a & b
  • None of the above
Who said " The informal organization is the network of personal and social reestablished bunion ship which is established by formal organization"
  • Barrand
  • Keith Davis
  • Fayol
  • None of the above
The type of organization structure where the scope of work is limited but the area of authority is unlimited is 
  • Line
  • Line & staff
  • Functional
  • Matrix
Upstream supply chain is __________.
  • exclusively inside an organization
  • the distribution of products or delivery of services to customers
  • both the a & b
  • involved with procurement of material from suppliers
A major advantage of the corporate form of organization is __________.
  • reduction of double taxation
  • limited owner liability
  • legal restrictions
  • ease of organization
ABC Company had to steam line all the computer structure of the company and had to develop a software for the working of the organization, The type of  organization structure that suits best is 
  • Line
  • Line & staff
  • Project management
  • Matrix
Members work  relationship, which is a common characteristic of all organization, can be achieved by 
  • Its people
  • Its Goals
  • Its deliberate structure
  • Its Purpose
As the enterprises grows its success depends on 
  • Adaptiveness
  • Innovativeness
  • Both a & b
  • Neither a or b
The movement of growth of an enterprise leads towards 
  • Flexibility
  • Creation of autonomy
  • Informality
  • All the above
Mooney described authority as 
  • Superior subordinate relation
  • Supreme coordinating power
  • Right to give orders
  • To develop obedience
The fundamental organization  structure is divided on the basis of 
  • Native of authority
  • Flow of authority
  • Size of enterprise
  • Both a & b
As per scalar principle of delegation 
  • Individual should have more clear reporting relationship
  • The line of authority should be more clear from top manager
  • Responsibility can not be delegated
  • Delegation to be consistent
If in an enterprise, the organization structure is superior subordinate based than it is 
  • Decentralized
  • Centralized
  • Obligation
  • None of the above
As per the principle of unity of command of delegation 
  • Individual reporting relation ship should be more clear to his superior
  • The line of authority should be more clear from top manager
  • Responsibility can not be delegated
  • Delegation to be consistent
Organization structure should not be static because 
  • Economic function is changing
  • Technology is not static
  • Political environment is changing
  • All of the above
The basic idea of organization structure is 
  • Limitations of span of management
  • To work with only one manager
  • Unlimited span of management
  • None of the above
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