CBSE Questions for Class 12 Commerce Business Studies Organising Quiz 13 - MCQExams.com

Centralization & Decentralization
Advantages of decentralization: ____________
  • It makes for quick decision and improves quality of the decisions by pushing decision-making closet to the situation.
  • It improves the moral of employees as it reduces the dependence on others.
  • It gives feel of involvement to the subordinate in management decision making.
  • All of above.
Authority, Accountability & Responsibility
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.
Sale of old assets by non-profit organization - 
  • is not an income
  • will not appear in the income and expenditure account.
  • sale proceeds will be deducted from the respective asset in the balance sheet
  • all of the above.
Which of the following is NOT true about power?
  • Power is a narrow term compared to authority
  • Power requires no formal position
  • Power works both ways - downward and upward
  • Formal authority is a type of power
Which of the following consist in the final accounts of a non-profit organization -
  • Trading and Profit & Loss A / c and Balance Sheet.
  • Income Statement and Statement of Financial Position.
  • Receipt & Payments A / c and Income & Expenditure A / c
  • Receipts & Payments A / c; Income & Ex-penditure A / c and balance Sheet.
Under which case will Intranet be an effective networking tool/s?
  • In a distributed decision making environment
  • Where heterogeneous applications are involved
  • In a centralised organisation
  • In a decentralised organisation
_______ denotes answerability for the accomplishment of the task assigned by the superior to his subordinates.
  • Responsibility
  • Accountability
  • Power
  • Authority
It is ________ that makes the managerial position real and vests in him the power to order his subordinated and secure necessary compliance.
  • Authority
  • Responsibility
  • Accountability
  • Informal authority
Line organization structure is based upon _______ system of management.
  • Democratic
  • Laissez - faire
  • An autocratic
  • Free rein
Arrange the process of delegation in proper form.
(1) Creation of accountability
(2) Allocation of duties
(3) Assignment of responsibility
(4) Delegation of authority
  • 3, 4, 2, 1
  • 2, 3, 4, 1
  • 2, 4, 1, 3
  • 2, 4, 3, 1
___________ refers to capacity to influence the behaviour of others and secure obedience.
  • Power
  • Responsibility
  • Accountability
  • None of above
A manager before proceeding with actual delegation of authority is not required to know the jobs or results expected of such delegation.
  • True
  • False
  • Partly true
  • None of above
"Principles of clarity of delegation" required that
  • Only problems involving unusual matters should be referred and decided by higher level executived.
  • "When authority is delegated, responsibility steps in and is coextensive 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 assignment.
  • All of above
Responsibility can be properly discharged by subordinated, if authority is properly delegated to him.
  • True
  • False
  • Partly true
  • None of above
Responsibility is exacted ______ while authority flows ______.
  • Downward, upward
  • Upward, upward
  • Upward, Downward
  • Downward, Downward
The advantage of functional system is that
  • It ensures division of labour
  • It ensures specialization based on individual proficiency and specialized knowledge
  • Authority and responsibility often overlap and good deal of friction results.
  • (a) and (b)
Intrepreneur faces competition from -
  • Entrepreneurs
  • Managers
  • Employees within the organization
  • All the above
_______ 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.
  • Departmentalization by process & equipment
  • Departmentalization by products or service
  • Departmentalization by finance
  • Departmentalization by functions
___________ is the ability to visualize the organization as a whole.
  • Conceptual skills
  • Technical skills
  • Interpersonal skills
  • Administrative skills
Which of the following is/are advantage of functional system?
  • Because of high degree of specialization, functional organization is difficult to establish.
  • Changes in personnel often lead to instability since performance also shifts with these changes.
  • It represents a very natural and logical way of grouping different activities of the enterprise.
  • All of above
Which of the following is/are not benefit(s) of line organization structure?
  • It is economical and effective.
  • It is likely to encourage nepotism
  • It promotes unity of command and conforms to the scalar principle of organization.
  • All of above
Line organization structure
  • Promotes unity of command
  • Conforms to the scalar principle of organization
  • Ensures excellent discipline
  • All of above
Line organization structure is _______ to work.
  • Expensive
  • Simple
  • Hard
  • Impossible
Which of the following is/are benefit(s) of line organization structure?
  • It suffers from lack of expert staff advice.
  • Line organization is rigid and inflexible.
  • It permits rapid decisions and effective co-ordination.
  • All of above
Under ________ system, the whole task of management and direction of subordinates is divided according to the type of work involved.
  • Line and staff organization
  • Functional organization
  • Project management organization
  • Matrix organization
___________ has basically centered on studying the behavioural pattern of members and groups in an organization.
  • Empirical Approach
  • Group behaviour approach
  • Interpersonal behaviour approach
  • Decision theory approach
Which one of the following clearly defines 'organisation' as a function?
  • Management of business
  • Accomplishment of goals through means
  • Centralised authority in the hands of an individual to achieve business goals
  • Process of assigning duties to individuals to achieve specific ends of actively
Decentralisation of authority means
  • Giving permission to the subordinate to do his work
  • Conveying what the subordinate is expected to do
  • Delegating responsibility
  • Departmentalisation activities
Gantt Chart is essentially a pictorial presentation of
  • A modified procedure for productivity improvement
  • An organisation chart in the form of bar diagram
  • A time-event network analysis
  • Position chart of the function to be carried out by the members of a work team
Objectives of business organization can be.
  • Short-term or long-term
  • Tangible or intangible
  • General or specific
  • Any of above
A file which contains rules governing the organisation under audit is known as
  • Current file
  • Permanent file
  • Routine file
  • Precedence file
The delegation of authority from higher to lower levels of an organisation is called
  • Diminution of authority
  • Division of labour
  • Departmentalisation
  • Decentralisation
Consider the following stages in Management by Exception
Setting criteria that the management will use to follow progress towards organisational objectives
Measurement of current performance in the organisation
Making comparison of actual and planned performance and identifying the exceptions
Decision-making prescribing the action to be taken
Correct sequence of these steps is
  • 2, 3, 4, 1
  • 2, 1, 3, 4
  • 1, 3, 2, 4
  • 1, 2, 3, 4
In a broader sense, the activities of a co-operative organisation are expected to ensure primarily  
  • Profitability to the members
  • Socialism in the economy
  • Equity to the members
  • Productivity to the society
Computerised communication system existing within an organisation is called
  • Internet
  • Extranet
  • Local Area Network
  • Intranet
Matrix Organisation refers to a form of
  • Organisation where authority and responsibility coexist
  • Organisation in which two or more basic type of departmentation are combined
  • Mathematical arrangement of events in columns and rows
  • Organisation and mathematical simulation is used.
Under which one of the following types of organisational structure does a person become accountable structure to two or more bosses at the same time?
  • Matrix structure
  • Centralised structure
  • Decentralised structure
  • Vertical structure
In an organisation, performance appraisal is not expected to
  • Integrate and coordinate the endeavour of individuals
  • Monitor the efforts of individuals
  • Provide a means of correcting or commending the efforts of individuals
  • Calculate the living wage of the worker
The approach that considers an organisation to be in a dynamic relationship with its environment, is called
  • Contingency approach
  • Scientific approach
  • Societal approach
  • Systems approach
Which one of the following is the first industrial organisation to have conducted social audit of its performance? 
  • Associated Cement Companies
  • Reliance Industries Limited
  • Bharat Heavy Electricals Ltd
  • Tata Iron & Steel Company
 A tall structure has a
  • Narrow span of management
  • Wide span of management
  • No span of management
  • Less levels of management
To which one of the following aspects does an established pattern of relationships among the components of an organization refer?
  • Organization strategy
  • Organization structure
  • Organization process
  • Organization policy
Decentralization of authority means ___________.
  • giving permission to the subordinate to do his work
  • conveying what the subordinate is expected to do
  • delegating responsibility
  • departmentalizing activities
An assignment of task for managers, who are accountable for their actions in controlling and budgeting of resources is classified as _________________.
  • coordinating company effort
  • action plan
  • action accountability
  • project accountability
Which one of the following is true of the position of an auditor regarding the system of internal check in the organization?
  • He should acquaint himself with the system of internal check
  • He should monitor and supervise the system of internal check
  • He himself should lay down the system of internal check
  • He has nothing to do with the system of internal check
In line and staff organisation the staff performs the function of ______________.
  • Management
  • Advising the management
  • Assigning responsibility
  • None of the above
The most important advantage of centralization of office services is ______________.
  • specialization
  • higher departmental loyalty
  • no delay in providing services
  • less burden of work
Which of the following is not a feature of an optimal capital structure?
  • Safety
  • Flexibility
  • Control
  • Solvency
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