Students of class 12 Business Studies should refer to MCQ Questions Class 12 Business Studies Nature and Significance of Management with answers provided here which is an important chapter in Class 12 Business Studies NCERT textbook. These MCQ for Class 12 Business Studies with Answers have been prepared based on the latest CBSE and NCERT syllabus and examination guidelines for Class 12 Business Studies. The following MCQs can help you to practice and get better marks in the upcoming class 12 Business Studies examination

Chapter 1 Nature and Significance of Management MCQ with Answers Class 12 Business Studies

MCQ Questions Class 12 Business Studies Nature and Significance of Management provided below have been prepared by expert teachers of grade 12. These objective questions with solutions are expected to come in the upcoming Standard 12 examinations. Learn the below provided MCQ questions to get better marks in examinations.

Question. The primary function of management is:
(a) Planning
(b) Organizing
(c) Controlling
(d) Staffing

Question. Which of the following designation is not related to middle level management?
(a) Operations Head
(b) Sales Manager
(c) Chief Operating Officer
(d) Divisional Manager

Question. Tiyansh works in Cello Limited. He is responsible for ensuring that his department has the necessary personnel. At what level of management Tiyansh is working?
(a) Top level
(b) Middle level
(c) Supervisory level
(d) None of these.

Question. Management is considered important for an organisation because:
(a) It helps an organisation to adapt to the changes
(b) Seeks to integrate individual efforts
(c) It helps in development of the society
(d) All the above

Question. Which of the following is not a designation related to top level management?
(a) President
(b) Vice-President
(c) Chairman
(d) Production Manager

Question. Suresh works as a manager in QC Ltd. He follows a process which provides the perequisite amount, quality, timing and sequence of efforts and ensures that planned objectives are achieved with a minimum of conflict. Identify the function of management.
(a) Coordination
(b) Cooperation
(c) Management
(d) None of these

Question. A manager applies various theories of management in his/her unique personalized way. What aspect of nature of management does this statement indicate?
(a) Management as a science
(b) Management as an art
(c) Management for amateurs
(d) Management as an authority

Question. Rahul was running a media company. He observed that the performance of the employee was not up to the mark. So, he performed a function of management which reviews the operations in a business unit :
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. This function of management relating to laying down the foundation for carrying out the other functions of management successfully is:
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Question. Managers in India do the same work as managers in USA or Japan or Germany. Which characteristic of management is highlighted in this statement?
(a) Management is a group activity
(b) Both (a) and (c)
(c) Management is all pervasive
(d) Management is effective

Question. Name the function of management which is considered a base for all other functions.
(a) Controlling
(b) Directing
(c) Planning
(d) None of these

Question. “Any one can be called a manager irrespective of the educational qualification possessed.” Identify the characteristic of the profession that management does not fulfil in the statement being discussed above.
(a) Ethical code of conduct
(b) Professional association
(c) Restricted entry
(d) Service motive

Question. Which of the following designation is not related to lower level management?
(a) Plant Superintendent
(b) Supervisors
(c) Section officers
(d) Marketing Manager

Question. Which of the following is not true regarding the objective of management?
(a) Growth of an organisation
(b) Earning projects
(c) Policy making
(d) Providing employment

Question. ‘Even where members of a department willingly cooperate and work, a manager has to coordinate the efforts of different people in a conscious manner.’ Identify the characteristic of coordination discussed above.
(a) Coordination ensures unity of action
(b) Coordination is a deliberate function
(c) Coordination is a continuous process
(d) Coordination is an all-pervasive function

Question. Number of levels of management are:
(a) one
(b) two
(c) three
(d) four

Question. Organising as a function of management involves deciding:
(a) What activities and resources are required
(b) Who will do a particular task
(c) Where will it be done
(d) All of the above

Question. Management is essential for the organisations which are:
(a) Non-profit organisations
(b) Service organisations
(c) Social organisations
(d) All of the above

Question. This function of Management related to placing the right person at the right job is:
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling

Question. Successful management ensures that:
(a) Goals are achieved with least cost
(b) Timely achievement of goals
(c) Both of the above
(d) None of the above

Question. “Successful organisation do not achieve their goals by chance but by following a deliberate process.” Identify the process.
(a) Efficiency
(b) Cooperation
(c) Management
(d) Coordination

Question. Which of the following is a function of top level management?
(a) Ensuring quality of output
(b) Assigning necessary duties and responsibilities to their departments
(c) Taking responsibility for all the activities of the business and its impact on the society
(d) Ensuring that the safety standards are maintained within the organisation.

Question. National Alpha Ltd. has grown in size. It was a market leader but with changes in business environment and with the entry of MNCs, its market share is declining. To cope up with the situation, the CEO starts delegating some of his authority to the General Manager, who also felt himself overburdened and with the approval of CEO disperses some of his authority to various levels throughout the organization. Identify the concept of management discussed above:
(a) Delegation
(b) Decentralisation
(c) Both (a) and (b)
(d) None of these

Question. The function of management related to grouping of activities to be carried out into departments and creating management hierarchy is:
(a) Planning
(b) Organising
(c) Controlling
(d) Directing

Question. Ram is working as a marketing manager in a company. Has been given the task of selling 100000 units of a product at the cost of ` 100 per unit within 20 days. He is able to sell all the units within the stipulated time, but had to sell last 1000 units at 20% discount in order to complete the target. In such a situation, he will be considered to be
(a) An efficient manager
(b) An effective manager
(c) Both effective and efficient manager
(d) None of the above

Question. It is a force that binds all the functions of management.
(a) Cooperation
(b) Co-ordination
(c) Planning
(d) Management hierarchy

Question. Management is said to be poor if it is:
(a) Efficient but ineffective
(b) Effective but inefficient
(c) Both inefficient and ineffective
(d) All of the above

Question. Management contains a series of interrelated functions that include:
(a) Planning
(b) Organising
(c) Directing
(d) All of the above

Question. Shyam works as a production manager in M/s Universal Limited. He has been given the task of getting 1000 units of hand woven table mats manufactured at the cost of `150 per unit within 10 days. In order to be acknowledged as an effective manager, he must ensure that
(a) The cost of production does not exceed `150 per unit
(b) The work is completed within 10 days even at higher cost per unit
(c) The cost of production is less than `150 per unit
(d) All of the above

Question. Sun Enterprises Limited is planning to increase its sales by 30% in the next quarter. Identify the feature of management being highlighted in the given statement.
(a) Management is all pervasive
(b) Management is a goal oriented process
(c) Management is a continuous process
(d) All of the above

Question. Management is equally important to run a political organisation as it is to run an economic organisation. Which feature of management is being highlighted here?
(a) Management is goal oriented
(b) Management is multidimensional
(c) Management is all pervasive
(d) Management is a group activity

Question. ‘‘Is the thinking process, the organized foresight, the vision based on fact and experience that is required for intelligent action.” Identify the function of management.
(a) Planning
(b) Organizing
(c) Controlling
(d) Directing

Question. Which of the following statements highlights that management is a group activity?
(a) Organisation is a collection of diverse individuals with different needs.
(b) Achievement of common goal requires teamwork and co-ordination of efforts in a common direction.
(c) Each member of the organisation may have different individual goals but they must travel together towards common goals.
(d) All of the above

Question. Management translates the works to be carried out in terms of goals to be achieved and allot the means to achieve it. This statement relates to:
(a) Management of work
(b) Management of people
(c) Management of operations
(d) All of the above

Question. Which of the following statements does not pertain to middle level management?
(a) They are responsible for all the activities of theoperational managers. 
(b) They are responsible for the welfare and survival of the organisation.
(c) The interpreter the policies made by top levelmanagers 
(d) Co-operate with other departments for the smooth running of the organisation.

Question. Raman is a supervisor in a rubber factory. The CEO of the company adopted a plan which defines the formal parameters within which the manager may function. Identify the function of management.
(a) Organizing
(b) Controlling
(c) Planning
(d) Directing

Question. Which of the following statements is not true for lower level management?
(a) Analyse the business environment and its implications for the survival of the business.
(b) Ensure the quality of the output
(c) They strive to reduce the wastage of resources
(d) They ensure that the safety standards are maintained within the organisation.

Question. Which of the following is not an organisational objective of management?
(a) Earning enough revenue to cover costs
(b) Earning sufficient profits to cover risks of business
(c) Increase in the prospects of business in the long run
(d) Providing free education to their employees children

Question. Which of the following statements is not relevant to the concept of “Management as an inexact science”?
(a) The principles of management lack universal validity
(b) The principles of management lack universal applicability
(c) The principles of management have to be modified according to the given situation
(d) Management involves dealing with human behaviour and outcomes cannot be predicted with utmost accuracy

Question. Sunrise Private Limited decided to donate 2% of its sale to Siksha Foundation for improving the condition of children in India. This initiative by the company was appreciated by the public and their sales increased by 10%. Identify the objective of the management depicted in the given case.   
(a) Organizational objective
(b) Personal objective
(c) Social objective
(d) None of these

Question. Which of the following statements is not true about management?     
(a) Management is not visible, it can only be felt.
(b) The effects of management can be realised over a period of time through positivity or negativity created among stakeholders.
(c) The effects of management can be seen and felt.
(d) None of the above

Question. Responsibility is meant for the _________in centralisation where the top management has authority.       
(a) Superiors/Top management
(b) Lower management
(c) Employees
(d) All of these

Question. Sunrise private limited decided to increase their sales by 10%. They focus every year on increasing the sales so that they can maximize their profits. This company primarily focuses on increasing the profits. Identify the objective of management depicted in the given case.   
(a) Economic objective
(b) Personal objective
(c) Social objective
(d) None of these

Question. “Successful organisation do not achieve their goals by chance but by following a deliberate process.” Identify the process.   
(a) Efficiency
(b) Cooperation
(c) Management
(d) Coordination

Question. Romil works in Cello Limited. He is responsible for defining objectives of the company. At what level of management Romil is working.   
(a) Top level
(b) Middle level
(c) Supervisory level
(d) None of these

Question. Identify the level at which the directing function takes place in an organisation?   
(a) Top level management
(b) Middle level management
(c) Lower level management
(d) All of these

Question. Which one of the following sequence of process of management is correct:   
(a) Planning, Controlling, Organising, Staffing
(b) Staffing, Planning, Organising, Controlling
(c) Planning, Organising, Staffing, Controlling
(d) Organising, Planning, Staffing, Controlling

Question. Which aspect of management involves cost-benefit analysis and the relationship between inputs and outputs?   
(a) Effectiveness
(b) Efficiency
(c) Coordination
(d) Controlling

Question. Supervision, communication, motivation and leadership are the key elements of ________ function of management.     
(a) Directing
(b) Controlling
(c) Planning
(d) Organising

Question. Which essence of management affects planning, organising, staffing, directing and controlling?   
(a) Cooperation
(b) Coordination
(c) Corporation
(d) Delegation

Question. Only increase in labour cost beyond 2% should be brought to the notice of the management. Which principle of control is highlighted by this statement?   
(a) Principle of management by exception
(b) Need for action
(c) Principle of critical point control
(d) All of these

Question. Co-ordination is considered to be the essence of management because:     
(a) It is a common thread that runs through all the activities within the organisation
(b) It is implicit and inherent in all functions of the organisation
(c) It is a force that binds all the functions of management
(d) All of the above

Question. Keeping in view the changes in the consumer demands and preferences ‘Rama Bakery’ has reduced the sugar and fat content in its products. This approach of business shows that management is:   
(a) An intangible force
(b) A group activity
(c) A dynamic function
(d) A multidimensional activity

Question. Identify the process that provides the requisite amount, quality, timing and sequence of efforts, which ensures that planned objectives are achieved with a minimum of conflict.   
(a) Management
(b) Planning
(c) Co-ordination
(d) Controlling

Question. Shivam Ltd. is engaged in manufacturing plastic mobile covers. The objective of the company is to manufacture 100 mobile covers a day. To achieve this, the efforts of all departments are coordinated and interlinked, and authority-responsibility relationship is established among various job positions. There is clarity on who is to report to whom. Name the function of management discussed above.   
(a) Organizing
(b) Directing
(c) Controlling
(d) Planning

Question. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is not a one time function, it begins at the planning stage and continue till controlling.”   
(a) Coordination ensures unity of action
(b) Coordination is an all pervasive function
(c) Coordination is a continuous process
(d) Coordination is a deliberate function

Question. ____________is the change in attitude of management and workers towards each other.     
(a) Subordination
(b) Functional foremanship
(c) Mental revolution
(d) Time study

Question. Rahul was running a media company. He observed that the performance of the employee was not up to the mark. So, he performed a function of management which reviews the operations in a business unit. Identify the function of management.     
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. Match the concept of management in Column I with their respective meaning in column II:

Column I	Column II
Effectiveness	i) Doing the task correctly with minimum cost
Efficiency	ii) Finishing the task on time
Process	iii) The primary functions or activities that management performs to get the things done.

a) i), ii), iii)
b) ii), i), iii)
c) iii), ii), i)
d) i), iii), ii)

Question. It involves leading, influencing and motivating the employees to perform the assigned task
a) Staffing
b) Planning
c) Directing
d) Controlling

Question. Which function of management ensure work accomplishment as per plans
a) Controlling
b) Planning
c) Directing
d) Organizing

Question. “All the management practices are based on the same set of principles, what distinguishes a successful manager from a less successful one is the ability to put these principles into practice.” Identify the nature of management highlighted above.
a) Management as a science
b) Management as an art
c) Management as a profession
d) management is both science and art

Question. Identify the feature of coordination being highlighted in the given statement:” coordination is not a one-time function it begins at planning stage and continue till controlling“
a) Controlling ensures unity of action
b) Coordination is an all pervasive function
c) Coordination is a continuous process
d) Coordination is a deliberate function

Question. Which of the following is not included in level of management
a) Top level management
b) Supervisory level of management
c) Sub level management
d) Middle level management

Question. The process by which manager integrates and synchronizes the activities of different departments is called
a) Management
b) Controlling
c) Planning
d) Coordination

Question. Name the process of working with and through others to effectively achieve organisational objectives by efficiently using limited resources in a changing environment.
a) Management
b) Planning
c) Organising
d) Controlling

Question. Which of the following is not a function of management
a) Planning
b) Staffing
c) Cooperating
d) Controlling

Question. ”Coordination is not a separate function of management but it happens to be the final truth of all the functions. “In what context this observation this observation has been made?
a) Coordination is the essence of management
b) Coordination is not established automatically
c) Coordination is a continuously moving process
d) None of the above

Question. Assertion : Cooperation in absence of coordination leads to waste of efforts
Reason: Coordination without cooperation has no roots and cooperation without coordination bears no fruits.
a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c) Assertion (A)is true but Reason (R)is false
d) Assertion (A)is false but Reason(R)is true

Question. Assertion: Coordination is a one-time function of the top management
Reasons: Coordination begins at the planning stage and continues till controlling.
a) Both Assertion (A)and Reason(R) are true and R is the correct explanation of A
b) Both Assertion (A) and Reason (R) are true but R is not the correct explanation of A
c) Assertion (A)is true but Reason (R)is false
d) Assertion (A)is false but Reason(R)is true

Question. Assertion(A): Art is the skillful and personal application of existing knowledge to achieve desired results.
Reason(R): If an organisation has good management team which is efficient and effective, it automatically serves society by providing good quality products at reasonable prices.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question. Assertion(A): Management principles are developed through observation and repeated experimentation.
Reason(R): Outcomes of management principles can be predicted accurately.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True, but Reason (R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

Question. . Assertion(A): Management is termed as a ‘Process’.
Reason(R): Management involves a series of inter-related functions, such as Planning, Organising, Staffing, Directing and Controlling.
a) Both Assertion(A) and Reason(R) are True and Reason (R)is the correct explanation of Assertion(A).
b) Both Assertion(A) and Reason(R) are True , but Reason ( R)is not the correct explanation of Assertion(A).
c) Assertion(A) is True, but Reason(R) is False.
d) Assertion(A) is False, but Reason(R) is true.

We hope the above multiple choice questions for Class 12 Business Studies for Chapter 1 Nature and Significance of Management provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Nature and Significance of Management is an important chapter in Class 12 as it provides very strong understanding about this topic. Students should go through the answers provided for the MCQs after they have themselves solved the questions. All MCQs have been provided with four options for the students to solve. These questions are really useful for benefit of class 12 students. Please go through these and let us know if you have any feedback in the comments section.