Students of class 12 Business Studies should refer to MCQ Questions Class 12 Business Studies Organising 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 5 Organising MCQ with Answers Class 12 Business Studies

MCQ Questions Class 12 Business Studies Organising 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. Harsh is running a company where he sells variety of goods such as textiles, garments, cosmetics etc. He follows an organization structure. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above

Question. An obligation of a subordinate to complete an assigned task given by his superior. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

Question. Organising helps in optimum utilisation of resources. Which type of resources does it refer?
(a) Centralisation
(b) Delegation
(c) Development of Personnel
(d) None of these

Question. Rohit was the first content manager in his company. He gains experience of all the related functions like HR, Marketing, Finance, etc. Identify the type of organization structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Divine Ltd. is a leading soap manufacturing company. They want to diversify into textiles. Identify the type of structure that should be followed by Divine Ltd.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. A man is running a fashion store. He sells variety of goods such as textiles, garments, cosmetics etc. He follows an organisation structure. Identify the organisational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above

Question. Aman runs a factory wherein he manufactures leather shoes. The business is doing well and he intends to expand by diversifying into leather bags as well as leather jackets. Which type of organization structure would you recommend for his expanded organization?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of these

Question. Supermart is an organisation in which only the managers are the leaders. Identify the type of organisation.
(a) Formal
(b) Informal
(c) Both (a) and (b)
(d) None of these

Question. Amol works as a manager who supervises all the situations and functionalities related to a particular department. Here the authority is more than the other type of organisation structure. Identify the type of structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. When decision making authority is retained by higher management levels, an organization is said to be:
(a) Decentralized
(b) Centralized
(c) Delegation of Authority
(d) None of these

Question. Mr. Kiaan who is a boss of Aiysha Ltd. delegated some of his work to his subordinate and instructed him, “You are incharge of this project. I am here if you need me”. Which element of delegation is highlighted in the above case?
(a) Accountability
(b) Coordination
(c) Authority
(d) Creativity

Question. Answerability of the subordinate about the final result of the assigned task. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

Question. Rohan runs a garments manufacturing company. He wants to diversify into cosmetics, and footwear. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Name the function of management which helps in the formulation of future plans, in the light of the problems that were identified and thus, helps in better planning in the future period.
(a) Planning
(b) Organising
(c) Directing
(d) Controlling

Question. Aman runs a clothing company. There is lot of chaos in the organization. He decided to do grouping of similar activities into departments, units, sections etc. using several criteria as a basis to facilitate specialization. Identify the step of organizing process referred here.
(a) Identification and division of work
(b) Departmentalization
(c) Assignment of duties
(d) Establishing reporting relationship

Question. Which of the following is not a part of organising process?
(a) Assigning of duties
(b) Departmentalisation
(c) Decentralisation
(d) Establishing authority-responsibility relationship

Question. It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas. Identify the concept:
(a) Decentralisation
(b) Delegation
(c) Authority
(d) None of these

Question. Amber was the first content manager in his company. He gains experience of all the related functions like HR, Marketing, Finance, etc. Identify the type of organisation.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and
(b) (d) None of these

Question. Chaman runs a company in Gurgaon. The company is known for its product specialisation and has a lot of reputation in the market. Identify the type of organization structure :
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Due to proper organizing and division of work, Lenux Ltd. goes for systematic assignment of jobs among the employees, which importance of organizing is highlighted here?
(a) Benefits of specialization
(b) Clarity in working relationship
(c) Adaptation to change
(d) Effective administration

Question. There is concentration of decision-making authority at higher or top levels of management. It refers to a situation where all decisions on all matters are taken by one or a few managers at relatively higher levels. Identify the concept of organizing.
(a) Delegation
(b) Centralization
(c) Authority
(d) Responsibility

Question. When decision making authority is being retained by higher management levels, an organization is said to be:
(a) Delegation
(b) Decenteralization
(c) Fragmented
(d) None of these

Question. Karan is running a laptop manufacturing company. He focuses on product specialisation. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of the above

Question. Gedart Ltd. is working by clubbing similar related jobs under different departments. The HR department is not in touch with the marketing department and this has created problems. The HR head feels that only he knows about the HR department and similar is the case with the marketing department. However, the truth is both of them have limited and specific skills. Which type of organisation structure does Gedart Ltd. have?
(a) Directing
(b) Divisional structure
(c) Informal structure
(d) Functional structure

Question. Waseem has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

Question. Rohit works in a hotel as a senior chef. He enhances the status of subordinates and motivated them to improve their performance. Identify the concept of organising.
(a) Delegation
(b) Decentralisation
(c) Formal communication
(d) Authority

Question. Amol works as a manager who supervises all the situations and functionalities related to a particular department. Here the authority is more than the other type of organization structure. Identify the type of structure.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Edu power is a leading EdTech company. It is deliberately created by top management. Identify the type of organization.
(a) Formal organisation
(b) Informal organisation
(c) Both (a) and (b)
(d) None of these

Question. Sushant runs a software company. Now he wants to open a retail company. The size of organisation is large and there is a need for higher degree of specialization. Identify the organizational structure here.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Which of the following is not true?
(a) Delegation is a tool used to get subordinates to perform tasks and duties identified during decentralisation.
(b) Decentralisation requires delegation tool to grant authority and power to the subordinates.
(c) Decentralisation means that control and decisionmaking lies only with the top management
(d) All of these

Question. Bablu works in a Xerox Ltd. This organization does not follow the scalar chain. Identify the type of organization.
(a) Formal organization
(b) Informal organization
(c) Both (a) and (b)
(d) None of these

Question. Vrinda Ltd., grows, so it needs to add more employees, create new departments, and introduce new levels of management. Identify the type of organizational structure: 
(a) Divisional
(b) Functional
(c) Both (a) and (b)
(d) None of these

Question. Sharda Ltd. is pursuing diversified activities which require a high degree of specialisation. Identify the type of structure that should be followed by Sharda Ltd.
(a) Functional structure
(b) Divisional structure
(c) Decentralised structure
(d) Informal structure

Question. It leads to effective management as by relieving the employees from doing routine work, it provides them with time to excel in new areas. Identify the concept.
(a) Decentralization
(b) Delegation
(c) Authority
(d) None of these

Question. For delegation to be effective, it is essential that responsibility be accompanied with necessary
(a) authority
(b) manpower
(c) incentives
(d) promotions

Question. Due to organizational structure, it becomes easy to expand operations, new divisions, departments, and products. Identify the importance of organisation function from the following given points.
(a) Effective administration
(b) Development of personal
(c) Expansion and growth
(d) None of these

Question. An organisational structure is not subject to change even if people are leaving or transferred. Identify the statement and choose the correct answer.
(a) Development of personnel
(b) Adaption to change
(c) Clarity in working relationships
(d) Benefits of specialization

Question. Which term denotes “The number of subordinates that can be effectively managed by a superior”?
(a) Span of control
(b) Informal organisation
(c) Responsibility
(d) None of these

Question. ___________ is the process of dividing work into manageable activities and then grouping the activities which are similar in nature.
(a) Coordination
(b) Departmentalisation
(c) Organisation Structure
(d) Delegation of authority

Question. Corex Ltd. is pursuing diversified activities which require a high degree of specialization. Identify the type of structure that should be followed by Corex Ltd.
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. “The entire work is divided in such a manner that each activity is properly managed.” Identify the statement and choose the correct answer.
(a) Assignment of duties 
(b) Establishing reporting relationships
(c) Departmentalization
(d) Identification and division of work

Question. _____________ is a right of a superior to command his subordinate and ensure obedience from him. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

Question. Uranus Limited is a company dealing in metal products. The work is mainly divided into functions including production, purchase, marketing, accounts and personnel. Identify the type of organisational structure followed by the organisation.
(a) Functional Structure
(b) Relational structure
(c) Divisional structure
(d) None of these

Question. Kunal opens a retail mart in a local market. As he knows it will be impossible for him to handle all work alone, he appoints Manak to perform tasks on his behalf thereby reducing his workload. This decision provided Kunal with more time to concentrate on important matters:
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of the above

Question. Damara Ltd. is engaged in manufacturing televisions. The target of the organisation is to manufacture 500 TV’s a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure. Identify the type of organisation structure discribed above.
(a) Functional structure
(b) Divisional structure
(c) Decentralisation
(d) Delegation

Question. __________ obligation of a sub-ordinate to complete an assigned task given by his superior. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

Question. Sunrise Ltd., grows, so it needs to add more employees, create new departments and introduce new levels of management. Identify the type of organizational structure :
(a) Divisional
(b) Functional
(c) Both (a) and (b)
(d) None of the above

Question. __________answerability of the subordinate about the final result of the assigned task. Identify the element of delegation.
(a) Authority
(b) Accountability
(c) Responsibility
(d) None of these

Question. Deepak runs a software company. Now he wants to open a retail company. The size of organization is large and there is a need for higher degree of specialization. Identify the organizational structure here :
(a) Divisional structure
(b) Functional structure
(c) Both (a) and (b)
(d) None of these

Question. Ram industry manufactures office furniture. To improve its growth potential and increase market share the company choose to diversify its operations to improve its growth potential and increase market share. Many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation, as the project was important. After evaluating the various alternatives Shyam, the managing director of the company decided that they should add ‘home interiors and furnishings’ as a new line of business activity. Choose the framework, which the diversified organisation should adopt, to enable it to cope with the emerging complexity?
(a) Functional
(b) Divisional
(c) Both (a) and (b)
(d) None of these

Question. Kiran opens a retail mart in a local market. As she knows it will be impossible for her to handle all work alone, she appoints Mahesh to perform tasks on her behalf thereby reducing her workload. This decision provided Kiran with more time to concentrate on important matters:
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of these

Question. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

Question. National Vritech 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 organisation. Identify the concept of management discussed above.
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of these

Question. Priya works in an organization where she enjoys friendly relationships with her colleagues, they go for parties together. She loves to work there. Name the type of organisation.
(a) Formal organization
(b) Informal organization
(c) Both (a) and (b)
(d) None of these

Question. Aman runs a factory wherein he manufactures coolers. The business is doing well, and he intends to expand by diversifying into air conditioners and laptops. Which type of organization structure would you recommend for his expanded organisation?
(a) Functional structure
(b) Divisional structure
(c) Both (a) and (b)
(d) None of these

Question. __________means concentration of decision-making authority at higher or top levels of management. It refers to a situation where all decisions on all matters are taken by one or a few managers at relatively higher levels. Identify the concept of organizing.
(a) Delegation
(b) Centralization
(c) Authority
(d) Responsibility

Question. Ravi opens a retail mart in a local market. As he knows it will be impossible for him to handle all work alone, he appoints Manak to perform tasks on his behalf thereby reducing his workload. This decision provided Ravi with more time to concentrate on important matters.
(a) Delegation
(b) Decentralization
(c) Both (a) and (b)
(d) None of these

Question. __________refers to systematic dispersal of authority to the lowest level, except that which can be exercised at central points. Identify the concept of organizing.
(a) Delegation
(b) Decentralization
(c) Authority
(d) Responsibility

Question. Himalaya Ltd. is engaged in manufacturing washing machines. The target of the organisation is to manufacture 500 washing machines a day. There is an occupational specialisation in the organisation which promotes efficiency of employees. There is no duplication of efforts in such type of organisation structure. Identify the type of organisation structure described above.
(a) Functional structure
(b) Divisional structure
(c) Decentralisation
(d) Delegation

Question. ENX Ltd. is a which organisation holds its meeting according to the mood of the members. It has no set pattern of behavior. Identify the types of organisation.
(a) Formal Organisation
(b) Informal Organisation
(c) Both (a) and (b)
(d) None of these

We hope the above multiple choice questions for Class 12 Business Studies for Chapter 5 Organising provided above with answers based on the latest syllabus and examination guidelines issued by CBSE, NCERT and KVS are really useful for you. Organising 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.