MCQs for Business Studies Class 12 with Answers Chapter 2 Principles of Management

Students of class 12 Business Studies should refer to MCQ Questions Class 12 Business Studies Principles 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 2 Principles of Management MCQ with Answers Class 12 Business Studies

MCQ Questions Class 12 Business Studies Principles 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. Which one is not the Henry Fayol’s principle of management:
(a) Division of work
(b) Differential wages
(c) Scalar chain
(d) Equity

Answer

B

Question. Authority is undermined discipline is in jeopardy order distributed and stability threafened. The above statement is a violation of one of the principles of management.
(a) Unity of direction
(b) Discipline
(c) Unity of command
(d) Stability of personel

Answer

C

Question. A purchase manager of a company has to purchase 500 tonnes of raw material. Apart from the other suppliers in the market, his son also supplies that raw material. The manager purchases the raw material from the firm of his son at a rate higher than the market rate, which principles of management has been violated by this situation?
(a) Unity of command
(b) Unity of direction
(c) Subordinating personal interest to general interest
(d) Equity

Answer

C

Question. The principles of management enhance the understanding of relationship between human and material resources for the achievement of organisational goals. Identify the feature of the principles of management being described in the given statement.
(a) Cause and effect relationships
(b) Optimum utilisation of resources and effective administration
(c) Formed by practice and experimentation
(d) Mainly behavioural

Answer

D

Question. Which of the following statement justifies understanding of principles of management to take scientific decisions:
(a) Adherence to these principles add to knowledge and understanding of managerial situations
(b) Principles emphasise logic rather than blind faith
(c) Principles of management are the core of the management theory
(d) Principles are guidelines that can be modified as per the changing environment

Answer

B

Question. Which technique of Taylor separates planning and executive functions?
(a) Functional foremanship
(b) Fatigue work
(c) Standardisation
(d) Simplification

Answer

D

Question. Which of the following technique of scientific management is a violation of unity of command.
(a) Differential piece wage system
(b) Fatigue study
(c) Functional foremanship
(d) Simplification of work

Answer

C

Question. Which of the following technique of scientific management has the objective to determine the number of workers to be employed, frame suitable incentive schemes and determine labour cost.
(a) Differential piece wage system
(b) Time study
(c) Functional foremanship
(d) Simplification of work

Answer

B

Question. This technique of scientific management helps in development of the concept of assembly line which is widely used in automobile companies these days as well. Identify the technique.
(a) Motion study
(b) Standardisation and simplification of work
(c) Method study
(d) Time study

Answer

C

Question. Which of the following is an objective of time study?
(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the above

Answer

D

Question. According to Taylor there can be many hindrances in a good performance which may lead to fatigue identify the most suitable cause of Fatique from the following options.
(a) Long working hours
(b) Doing unsuitable work
(c) Uncordial relation with the boss
(d) All the above

Answer

D

Question. Principles of management emphasize on logical and rational decision making rather than on the basis of bias and prejudice. The given statement highlights that the knowledge of principles of management leads to:
(a) Providing managers with useful insight into reality
(b) Scientific decisions
(c) Meeting changing environmental requirements
(d) All of the above

Answer

B

Question. Fayol principle of division of work can be applied to the following kind of work.
(a) Technical
(b) Managerial
(c) Both
(d) None of these

Answer

C

Question. Henry Fayol, F.W. Taylor belongs to which of the following school of management?
(a) Neoclassical school
(b) Modern school
(c) Classical school
(d) Early perspective

Answer

C

Question. Which of the following statements is true with reference to principles of management?
(a) The principles of management have evolved.
(b) The principles of management are yet to be evolved.
(c) The principles of management are in the continuous process of evolution.
(d) None of the above

Answer

C

Question. Vinay and Pooja started a dry-cleaning shop. Customers were not happy with the services. So, they decided to find one best method to perform the job. Identify the technique of management used here.
(a) Motion study
(b) Fatigue study
(c) Method study
(d) Work study

Answer

C

Question. Principles of management can be modified by the manager when the situation demands. This statement implies that the principles of management are:
(a) Rigid
(b) Contingent
(c) Flexible
(d) Universally applicable

Answer

C

Question.‘Rule of thumb’ refers to:
(a) Use of personal judgement in handling management issues
(b) Adopting a hit-and-trial approach to resolve management problems
(c) Both of the above
(d) None of the above

Answer

C

Question. Tisco Ltd. manufactures plastic folders. Aman works at operational level. Aman get orders from production manager as well as finance manager. He gets confused most of the times, which manager he should follow. State the principle of management that is violated in the above paragraph.
(a) Unity of order
(b) Unity of command
(c) Initiative
(d) Scaler chain

Answer

B

Question. Gang plank is related to:
(a) communication
(b) motivation
(c) supervision of workers
(d) incentives to workers

Answer

A

Question.Which of the following does not follow the scalar chain?
(a) Functional structure
(b) Divisional Structure
(c) Formal organisation
(d) Informal Organisation

Answer

D

Question. According to Taylor, “even a small production activity like loading figures of iron into boxes can be scientifically planned and managed. This can result in tremendous savings of human energy as well as wastage of time and materials.” Identify the related principle of scientific management.
(a) Harmony, not discord
(b) Science, not rule of thumb
(c) Development of each and every person to get his/ her greatest efficiency and prosperity
(d) None of the above

Answer

B

Question. By profession, FW Taylor was a:
(a) Mechanical engineer
(b) Mining engineer
(c) Psychologist
(d) Human resource officer

Answer

A

Question. How are principles of management are formed?
(a) By rule of thumb
(b) By observation and experimentation
(c) By experiences of customers
(d) By experiments in science laboratory

Answer

B

Question. Which of the following statements is/are true with reference to principles of management?
(a) The principles are guidelines to action.
(b) The principles denote a cause and effect relationship.
(c) Principles help the manager to take decisions while performing various management functions.
(d) All of the above

Answer

D

Question. According to Taylor, “each specialist is to be assigned work according to his/her qualities, the employees who possess technical mastery should be involved in planning work whereas those with energy and good health may be assigned execution work.” Name the related principle of scientific management.
(a) Functional foremanship
(b) Science, not rule of thumb
(c) Development of each and every person to his or her greatest efficiency and prosperity
(d) None of the above

Answer

C

Question. Name the principle of management suggested by Henri Fayol, which advocates that, “there should be good superiors at all levels, clear and fair agreement and judicious application of penalties.”
(a) Authority and responsibility
(b) Esprit De Corps
(c) Order
(d) None of the above

Answer

D

Question. In what situation has Fayol permitted the violation of the principle of scalar chain?
(a) When the employee is extraordinarilly capable
(b) At the time of sudden happening
(c) in all conditions and circumstances
(d) In no condition or situation

Answer

B

Question. According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

Answer

B

Question. “Principles help managers to take decisions while performing functions of management.” In your opinion above statement is:
(a) True,principles are guidelines to take actions
(b) False, functions of management are not related with principles of management
(c) Partly true, principles denotes cause and effect relationship which may help functions
(d) False, functions of management are just actions

Answer

A

Question. Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

Answer

A

Question. Sohan keeps machines, materials, tools, etc. ready for operations by concerned workers. Whose work is described by this sentence under functional foremanship?
(a) Repairs boss
(b) Speed boss
(c) Inspectors
(d) Gang boss

Answer

D

Question. Management principles increases managerial efficiency as the manager leaves routine meeting to his/ her subordinates and deal with exceptional situations which require his/her expertise by following the principle of delegation. What does the above case signify about management?
(a) Meeting changing environment requirements.
(b) Providing managers with useful insights into reality.
(c) Fulfilling social responsibility.
(d) Management training, education and research.

Answer

B

Question. The application of this principle of management leads to higher production and better work for the same effort. Identify the related principle of general management.
(a) Discipline
(b) Equity
(c) Division of work
(d) Order

Answer

C

Question. “A manager should replace ‘I’ with ‘We’ in all their conversations with the workers to fasten team spirit.” Identify the principle of management emphasised here.
(a) Esprit de Corps
(b) Scalar Principle
(c) Unity of Command
(d) Unity of Direction

Answer

A

Question. In an organisation Ram and Prema are working at the same posts but being a male employee Ram has more rights than Prema. State any one principle of management which is violated here?
(a) Principle of Equity
(b) Rule of Thumb
(c) Scalar Principle
(d) Unity of Command

Answer

A

Question. ‘Rohit keeps machines, materials, tools, etc. ready for operations for concerned workers’. Whose work is described by this sentence under functional foremanship?
(a) Speed boss
(b) Repair boss
(c) Route clerk
(d) Gang boss

Answer

D

Question. According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction

Answer

B

Question.What is the latest development in scientific management?
(a) Motion study
(b) Time study
(c) Fatigue study
(d) Lean manufacturing

Answer

D

Question.The technique of differential piece rate system was developed by Taylor in order to:
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above

Answer

D

Question. The contribution of Fayol and Taylor are ______to each other.
(a) competitive
(b) cooperative
(c) complimentary
(d) coordinated

Answer

C

Question. Asad is a middle level manager. He keeps all his subordinates under a lot of discipline. His employees however complain of wastage of time and efforts as they feel that nothing is being assigned in a proper way and a proper place, also no proper schedule is made for working. Which principle of management is violated here is:
(a) Discipline
(b) Unity of command
(c) Unity of direction
(d) Order

Answer

D

Question. Which of the following elements should be kept in mind while determining fair remuneration?
(a) Cost of living
(b) Demand of labourers
(c) Qualification
(d) All of these

Answer

D

Question. _______among the following was the first to identify four functions of management.
(a) Henry Fayol
(b) W. Taylor
(c) Max Weber
(d) Harold Koontz

Answer

A

Question. In an organisation Shyam and Smriti are working at the same posts but being a male employee Ram has more rights than Smriti. State any one principle of management which is violated here.
(a) Principle of equity
(b) Unity of command
(c) Scalar principle
(d) Rule of thumb

Answer

A

Question. EMPOWER Ltd. is a company which takes care of the fact that the confidence of the employees should always be at its peak. For this reason, they give to their employees for employment for a minimum fixed tenure of time. Which principle of management is followed here?
(a) Division of labor
(b) Equity
(c) Unity of command
(d) Stability of personnel

Answer

D

Question. _______involve a series of steps to be taken to accomplish desined goals. Principles are guidlines to make decisions or actions while practicing.
(a) values
(b) techniques
(c) programmes
(d) actions

Answer

B

Question. While practicing principles of management ______ cannot be neglected as the business have to fulfill social and ethical responsibility towards society.
(a) values
(b) techniques
(c) programmes
(d) actions

Answer

A

Question. The principles of pure science is considered to be _________ in nature.
(a) flexible
(b) rigid
(c) creative
(d) none of the above

Answer

C

Question. Where are the principles of management applicable?
(a) In the field of business
(b) In the non-business field
(c) In both (a) and (b)
(d) None of these

Answer

C

Question. Which company did Taylor join in America in 1878 as a labourer?
(a) Bethlehem Steel Works
(b) American Steel Company
(c) Midvale Steel Company
(d) None of these

Answer

C

Question. As per cooperation, not individualism principle of management, competition should be replaced with_____
(a) coordination
(b) cooperation
(c) management
(d) harmony

Answer

B

Question. Three subordinates. S1, S2 and S3 receive orders from M1’. In such a situation which principles of management is being observed?
(a) Equity
(b) Order
(c) Unity of command
(d) Unity of direction

Answer

C

Question. Principles of management are not _________
(a) absolute
(b) behavioral
(c) universal
(d) Flexible

Answer

A

Question. Ria a manager expects her subordinates to adopt to the new environment and working conditions without giving them time to settle down. Which principle is overlooked in this statement?
(a) Principle of harmony, not discord
(b) Principle of stability of tenure
(c) Principle of Unity of Command
(d) None of these

Answer

B

Question. Which technique of Taylor separates planning and executive functions?
(a) Functional foremanship
(b) Fatigue work
(c) Standardisation
(d) Simplification

Answer

A

Question. How many principles of management has been given by Henry Fayol?
(a) 5
(b) 14
(c) 16
(d) 20

Answer

B

Question. Derivation of principles of management is a matter of (i) ________ and their application is a matter of (ii)_________.
(a) (i) art (ii) science
(b) (i) science (ii) art
(c) (i) art (ii) discipline
(d) (i) discipline (ii) science

Answer

B

Question. In which year Taylor became an Engineer from a worker?
(a) 1878
(b) 1884
(c) 1901
(d) 1903

Answer

B

Question. In the words of ________,_________ means knowing exactly what you want men to do and seeing that they do it in the best and cheapest why.
(a) Henry Fayol Management
(b) W. Taylor, scientific management
(c) Harold Koontz, administrative management
(d) W. Taylor, Management

Answer

B

Question. Under fatigue study:
(a) Tiring work is given to employees
(b) Employee’s movements are increases
(c) Record is maintained for time consumed on employee’s work
(d) Rest is given to employees during work

Answer

D

Question. Which of the following statements best describes ‘Mental Revolution’?
(a) It implies change of attitude
(b) The management and workers should not play the game of one upmanship.
(c) Both management and workers require each other.
(d) Workers should be paid more wages.

Answer

A

Question. Which technique of Taylor differentiates between an efficient worker and an inefficient worker?
(a) Time Study
(b) Functional foremanship
(c) Fatigue study
(d) Differential Piece wage system

Answer

D

Question.  The sales manager assigned a target of selling 40 RO water Purifiers in a month to a group of 10 sales executives. They mutually decided to sell 4 purifiers each. However, after selling 1 purifier, Kshitij (one of the sales executives) met with an accident. The other executives did not pay any attention to the remaining target of Kshitij and concentrated on their individual sales target. At the end of the month, only 37 purifiers could be sold. Identify the principle of management violated in the given case?
(a) Esprit de corps
(b) Stability of personnel
(c) Remuneration of employees
(d) Equity

Answer

A

Question. ‘She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship.
(a) Instruction Card Clerk
(b) Repair Boss
(c) Gang Boss
(d) Route Clerk

Answer

C

Question. What is meant by Simplification as a technique of Scientific management?
(a) Making simple methods of doing a job
(b) Putting an end to the unnecessary types, qualities, sizes etc.
(c) Simplification of selling techniques 
(d) Simplifying the production techniques.

Answer

B

Question. If an organisation does not provide the right place for physical and human resources in an organisation, which principle is violated?
(a) Equity
(b) Order
(c) Initiative
(d) Discipline

Answer

B

Question. Which of the technique of scientific management violates the Principle of Unity of Command
(a) Differential piece wage system
(b) Fatigue study
(c) Functional foremanship
(d) Simplification of work 

Answer

C

Question. Which principle of management aims at securing the loyalty and devotion of the employees by giving them fair and just treatment?
(a) Unity of direction
(b) Equity
(c) Order
(d) Unity of command

Answer

B

Question. Scientific management brings
(a) Social change
(b) Economic change
(c) Mental change
(d) Industrial change

Answer

C

Question. Assertion (A) Employees should be paid fair wages, which should give them at least a reasonable standard of living.
Reason (R) Remuneration of employees should be just and equitable.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

B

Question.  Assertion (A) The application of the principle of Division of work leads to higher production and better work for the same effort.
Reason (R) It does not lead to specialisation.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

C

Question. Assertion (A) “There is a need to balance subordinate involvement through decentralisation with managers’ retention of final authority through authority and responsibility.”
Reason (R) Fayol’s Principle- centralisation and decentralisation
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

D

Question. Assertion (A) Gang plank is a shorter route.
Reason (R) It helps in a communication to reduce not delayed in an emergency.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

B

Question. Assertion (A) Principles of pure science are different from Management principles.
Reason (R) Principles of pure science are to be rigid in nature whereas management principles are flexible in nature.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

A

Question. Assertion (A) Manager requires authority commensurate with their responsibility.
Reason (R) There should be a balance between authority and responsibility.
(a) Both A and R are true. R is the correct explanation of A
(b) Both A and R are true, but R is not the correct explanation of A
(c) A is correct, but R is incorrect
(d) A is incorrect, but R is correct

Answer

A

Question. Assertion (A): Functional foremanship technique divide the work of factory manager into two sub departments
Reason (R): Functional foremanship develop specialisation In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer

A

Question. Assertion (A): The instruction card clerk only prepare the instruction card for the workers
Reason (R): The card prepares by the Instruction card clerk contain the information about the nature of work, procedure of doing work, material to be used and details about  machinery In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer

D

Question. Assertion (A): The method study identifies the most suitable way to do a particular activity.
Reason (R): To conduct method study process chart and operation research techniques are used. In the context of the above two statements which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer

A

Question. Assertion (A): Time study refers to determining the standard time required to complete a particular activity.
Reason (R): Time study is done to get the estimated figure of labour costs In the context of the above two statements, which one of the following is correct?
(a) A and R are true and R is the correct explanation of A
(b) A and R are true and R is not the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

Answer

A

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We hope the above multiple choice questions for Class 12 Business Studies for Chapter 2 Principles 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. Principles 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.

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