CBSE Questions for Class 12 Commerce Business Studies Organising Quiz 3 - MCQExams.com

Concept, Importance & Process of Organization.
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 the above
Directors take the decision regarding the management of a company collectively in their meetings known as _________.
  • business meetings
  • board meetings
  • transaction meetings
  • committee meetings
Concept, Importance & Process of Organization.
Which of the following can be treated as importance of organization?
  • It does not facilitate administration
  • A sound organization helps in providing 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
Types of Organization Structure
Which of the following might be classified as functions of the 'staff organization' as opposed to functions of the 'line organization'?
  • Personnel Computer
  • Support services
  • Public relations
  • All of the above
Types of Organization Structure
The advantage of functional system is that -
  • It promotes unity of command and conforms to the scalar principle of organization.
  • It ensures specialization based on individual proficiency and specialized knowledge
  • Under this organization "line" is supplemented by "staff".
  • Its independent status which cuts horizontally the normal organization structure.
Types of Organization Structure
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
Informal Organization
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
Types of Organization Structure
Under which of the following 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
Informal Organization
Most of the communication in informal organization is _____________
  • Written
  • Visual
  • Oral
  • Non verbal
Types of Organization Structure
The functional structure would be found in which type of business?
  • A business producing a single product or limited range of products
  • A business producing a diverse range of products
  • A business owning several subsidiary companies
  • Both (A) and (B)
Informal Organization
Informal organization is not always destructive through at times it can make the job of management more difficult.
  • True
  • False
  • Partly true
  • None of above
Informal Organization
Which of the following is/are feature(s) of informal organization?
  • It is established by formal managers.
  • Authority under informal organization largely flows upward to downward.
  • It is all-pervasive and exists in every enterprise.
  • All of above
Informal Organization
Which of the following refers to the relationship between people based not on procedures but on personal attitudes, prejudices, likes and dislikes?
  • Formal organization
  • Informal organization
  • Matrix organization
  • Project organization
Authority, Accountability & Responsibility
_________________ is the obligation of a subordinate to carry out duties assigned.
  • Authority
  • Responsibility
  • Delegation
  • Power
Authority, Accountability & Responsibility
Which of the following refers to capacity to influence the behaviour of others and secure obedience?
  • Power
  • Responsibility
  • Accountability
  • None of above
Authority, Accountability & Responsibility
Responsibility is exacted ________ while authority flows ___________.
  • Downward; upward
  • Upward; upward
  • Upward; downward
  • Downward; downward
Authority, Accountability & Responsibility
Authority may be described as the right of a manager to command -
  • Superiors
  • Subordinates
  • Other manager
  • All of above
Authority, Accountability & Responsibility
It is _____________ that makes the managerial position real and vests in him the power to order his subordinates and secure necessary compliance.
  • Authority
  • Responsibility
  • Accountability
  • Duties & onligations
Informal Organization
Which of the following statement is true for informal organization?
  • Informal organizations structures are based on authority & responsibility principles.
  • In informal organization authority is earned and not delegated.
  • Most of the communication in informal organization is written in form of circular, notice, order etc.
  • Authority under informal organization largely flows downward or diagonally.
Informal Organization
In informal organization authority is -
  • Delegated
  • Attached to official position
  • Earned from group
  • All-pervasive and exists
Authority, Accountability & Responsibility
Who described authority as - "the supreme coordinating power"?
  • Davis
  • Fayol
  • Mooney
  • Barnard
Authority, Accountability & Responsibility
Which of the following can be delegated?
  • Power
  • Responsibility
  • Accountability
  • Authority
Authority, Accountability & Responsibility
Responsibility can be delegated.
  • True
  • False
  • Partly true
  • None of above
Miscellaneous
Which of the following is not a feature of Organizing?
  • It is a sub-process of management
  • It deals with individual efforts
  • It is based on the principle of division of work
  • It establishes authority-responsibility relationships
Authority, Accountability & Responsibility
Principle of "clarity of delegation" required that -
  • Only problems involving unusual matters should be referred upward and decided by higher level executives.
  • 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 assignments.
  • If the manager is able to pass on obligation along with delegation of authority to the subordinates, the rule of single chain of command will be violated.
Centralization & Decentralization
Advantages of decentralization: _______________
  • Uniformity of policy and procedure can strictly be enforced since decisions and controls are largely taken at one place.
  • It provides actual work experience to a large number of middle and lower managers.
  • It is suitable to small organization.
  • All of above.
Authority, Accountability & Responsibility
Arrange the process of delegation in proper from.
(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)
Miscellaneous
Arrange the various steps of organizing in the correct sequence.
(i) Identifying (ii) Grouping (iii) Delegating (iv) Establishing relationship:
  • (i)-(ii)-(iii)-(iv)
  • (ii)-(i)-(iii)-(iv)
  • (iv)-(iii)-(i)-(ii)
  • None of the above
Centralization & Decentralization
Which of the following is advantage of centralization?
  • It makes for quick decision and improves quality of the decisions by pushing decision making closest to the situation.
  • Uniformity of policy and procedure can strictly be enforced.
  • Availability of capable executives substantially determines the nature and extent of dispersal of authority.
  • Management exercises minimal control.
Centralization & Decentralization
_____________ means partial dispersal of authority from central/top management to lower level.
  • Delegation of authority
  • Decentralization
  • Centralization
  • All of above
Authority, Accountability & Responsibility
As per scalar principal of delegation -
  • The delegatee should also be given a clear idea about the tasks assigned, what is expected of the recipient in his own job and how his obligation fits into the general plan.
  • Whenever authority is delegated, responsibility steps in and is co-extensive with authority.
  • It is expected that the recipient of authority shall make proper use of it and make all the decisions falling within the scope of his authority.
  • Subordinates must know who delegates authority to them and to whom matters beyond their own authority must be referred.
Authority, Accountability & Responsibility
Principle of "clarity of delegation" -
  • also implies defining in clear terms the horizontal and vertical relationships of the position of each subordinate to other positions in the organization.
  • should be taken to mean that authority relations between the subordinates and the seniors once established become immutable.
  • when manager is allowed to delegate even his obligation, there shall be no way of knowing who was accountable for what
  • means both authority and responsibility relate to the same assignment and it is logical that the two should be not be co-extensive and this parity is mathematical.
Centralization & Decentralization
Which of the following refers to the tendency to with hold a larger part of formal authority at higher echelons of management hierarchy?
  • Delegation of authority
  • Decentralization
  • Centralization
  • Exception principle
Miscellaneous
'Each individual should be given a particular job to do according to his ability and made responsible for that.' Which step in the organizing process does the sentence relate to -
  • Allotment of duties
  • Identification and grouping of activities
  • Developing relationships
  • Integration of activities
Miscellaneous
Which form of departmentalization would be most appropriate in companies that have distinctly different product lines?
  • Functional departmentalization
  • Product departmentalization
  • Customer departmentalization
  • Geographical departmentalization
Which of the following is known as statement of value and principles that define the purpose of the organisation?
  • Code of Ethics
  • Code of Practice
  • Code of behaviour
  • Code of management
Miscellaneous
The formal channel that defines the lines of authority and accountability in a hierarchical organizational structure is called - 
  • Line positions
  • Chain of command
  • Staff positions
  • Line and staff positions
Miscellaneous
The framework of interrelationships among individuals and departments that describe relationships of reporting and accountability is called - 
  • chain of command
  • functional arrangement
  • specialization
  • organizational structure
The minutes of the annual general meeting must be prepared and signed by, the chairperson within_______days of the meeting.
  • 7
  • 14
  • 21
  • 30
Scalar principle refers to the
  • Responsibility of a subordinate to a superior
  • Conflict of instructions from two or more superiors
  • Existence of a clear line of the authority in all parts of the organisation
  • Delegation of authority at all levels of organisation
Tendency of measuring correlation of two variables is classified as
  • tendency coefficient
  • variable coefficient
  • correlation coefficient
  • double coefficient
Out of the following forms, which form of organisation is the oldest one?
  • Line and staff organisation
  • Functional organisation
  • Committee organisation
  • Line organisation
An analysis of data over successive past periods, which pertain to some plant, activity and organization is called ______________.
  • economic series
  • financial series
  • time series
  • analytical series
What data organization method is used in hash tables?
  • Stack
  • Array
  • Linked list
  • Queue
The basic strategy of an organisation is ________.
  • grand or master strategy
  • functional strategy
  • stability strategy
  • none of the above
Which of the following is/are method of managing stress?
  • Job relocation
  • Career counselling
  • Recreational facility
  • All the above
Which of the following is a barrier to effective delegation?
  • Fear of loss of power
  • Personal attitudes
  • Lack of ability to direct well
  • All the above
A cross functional organizational structure in which individuals performing one function, such as accounting, are to the senior executive in finance and also to another senior executive in a geographical, product, or customer department is called -
  • Line organization
  • Matrix form
  • Informal organization
  • Bureaucratic organization
Where larger part of the authority is delegated down the levels of management so that decisions are made a near the source of action, such a tendency in the organization is described a -
  • Delegation of authority
  • Decentralization
  • Centralization
  • Principle of functional definition
'Each individual should be given a particular job to do according to his ability and made responsible for that.'
Which step in the organizing process does the sentence relate to - 
  • Allotment of duties
  • Identification and grouping of activities
  • Developing relationships
  • Integration of activities
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