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Monday, February 26, 2018

Business Studies Objective Type Questions

1. It can be delegated to the subordinates. What is it?
Ans: Authority can be delegated.

2. In which structure of organisation there is scope for spread of rumours?
Ans: Informal

3. Which organizational structure is suitable for a multi-product manufacturing company?
Ans:  Divisional organization structure

4. Which organizational structure is suitable for a uni-product manufacturing company?
Ans: Functional organization structure

5. Name the organisation in which employees are allowed to communicate freely and frinedly and there are no rules and regulations.                                               
Ans: Informal organisation

6. Authority can be delegated, but what cannot be delegated?
Ans: Responsibility

7. A subordinate receives orders from whom?

Ans: Superior

8. Authority flows downward from whom to whom?
Ans: From Superior to Subordinates

9. Name the organisation which is based on rules and procedures.
Ans: Formal Organisation

10. What is the basis of functional organisation?
Ans: Specialisation

11. A superior is responsible to his subordinates.                          
Ans: This statement is false.

12. Can responsibility be delegated?                     
Ans: According to the principle of absolute responsibility, authority can be delegated but responsibility can’t be delegated by a manager.

13. Out of formal and informal organisation which is dependent upon which?
Ans: Informal organization depends on formal organization.

14. How is informal organisation created?            
Ans: Informal organisation is created spontaneously by the employees working together and interacting with each other. It is an unintentional creation.

15. Define span of control.
Ans: It refers to the number of subordinates coming under direct control and supervision of the superior.

16. “Delegation can take place without decentralisation”. Explain.                            
Ans: This statement is true because delegation is necessary in every organisation but decentralisation is not necessary.

17. Authority always flows downwards, while responsibility always flows upwards.             True

18. A company is manufacturing cosmetics, readymade garments, toilet items and biscuits. What kind of organization structure is suitable for this company?
Ans:  Divisional organization structure

19. Mention the essential elements of delegation of authority.
Ans: Authority, Responsibility and Accountability

20. Which level of managers are responsible for determining formal organisation?

Ans: Top level management

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