Principles of Business Management
Multiple Choice Questions and Answers
(Asked in 2012 to 2018 Semester exam)
1) Who first propounded the
principle of ‘esprit de crops’? 1
Ans: Henry Fayol
2) Write the full form of
MIS. 1
Ans: Management Information
System
3) ‘Zero-based budgeting’
technique was first used in ____. (Fill in the blank) 1
Ans: This technique was first
used in America in 1962. The former President of America, Jimmy Carter used
this technique when he was the Governor of Georgia for controlling state
expenditure.
4) ‘Functional foremanship’ was
introduced by ____. (Fill in the blank) 1
Ans: F.W. Taylor. It insists on hiring specialist for every job. (8
Specialists foremen)
5) State two limitations of
planning. 2
Ans: Planning does not work in
dynamic environment, Planning is a time consuming process.
6) ‘Centralization’ and
‘Decentralization’ are used in the same sense. (Write True or False) 1
Ans: False
7) State one distinction between
formal organization and information organization. 1
Ans: Formal organsiation is
official, so it has prescribed structure of roles and relationships. It is planned and deliberately created by
management. On the other hand, informal organisation is unofficial or natural
having no specific structure. It arises
spontaneously without official sanction by management.
8) POSDCORB was introduced by
____. (Fill in the blank) 1
Ans: P – Planning. O –
Organising, S – Staffing, D – Directing, C – Coordinating, O – Organising, R –
Reporting and B – Budgeting. This term is coined by L. Gullick and L. Urwick.
9) Father of scientific
management is 1
Ans: F. W. Taylor.
10) ‘Motion study’ is a part of ____. (Fill in
the blank) 1
Ans: Scientific management
11) ‘Esprit de corps’ is a basic
principle of scientific management. (Write True or False) 1
Ans: False
12) Who initiated the concept of
‘management of objectives’? 1
Ans: Peter Drucker
13) Who developed the concept of
‘functional organization’? 1
Ans: F.W. Taylor. It insists on
hiring specialist for every job. (8 Specialists foremen)
14) Mention two features of a
good plan. 2
Ans: Goal-oriented or focus on objectives, flexibility
15) Write down any two functions
of a manager. 2
Ans: Planning and Controlling
16) Who first propounded the
principle of Unity of Command? 1
Ans: Henry Fayol
17) Mention two limitations of
planning. 2
Ans: Planning does not work in
dynamic environment and Planning is a time consuming process.
18) Write the full form of ROI. 1
Ans: Return on Investment
19) Management is regarded as a
perfect science. False
20) Management by objectives is
a clever device for the exploitation of labourers. False
21) Responsibility can be
delegated but authority cannot be delegated. False
22) Coordination and cooperation
are used in the same sense. False
23) Planning is a mental
exercise. True
24) ‘Division of labour is an
essential element of an organisation. True
25) The theory of scientific
management was propounded by F. W. Taylor. True
26) Control is not applicable at
all levels of management. False
27) Functional foremanship was
introduced by F.W. Taylor.
28) ‘Father of human relation
movement’ was Elton Mayo
29) The motivation theory of
Abraham Maslow is known as Maslow’s Hierarchy of Needs.
30) ‘PODSCoRB’ was introduce by Luther Gulick .
31) Peter Drucker is known as father of MBO technique.
32) Return on investment (ROI)= (Net Income
/ Total Investment) X 100
33) The minimum duration of long
term planning is 5 years.
34) Time study is a part of work study.
35) Management is what manager
does. (f) Louis allen
36) Management means decision
making (d) Ross Moore
37) Management means gettig
things done throgh others people.(e)
American Management Association
38) Father of scientific
management (b) F.W Taylor
39) Planning is the thinking
process (a) Alford and Beatty
40) Esprit De Corps (c) Henry Fayol
41) Establishing standards (h)
Step of control process
42) The human side of
interprise (g) Douglas McGregor
43) The theory of scientific
management was propounded by Taylor. True
44) The book, General and
Industrial Management was written by P.F. Drucker. False,
Henry fayol
45) Management by objectives is
a continuous process. True
46) Rationalisation is an
element of scientific management. False
47) Correction of deviation is
the first step in the process of control.
False, Setting performance
standard
48) Zero-based budgeting
technique was first introduced in America in the year 1962.
49) Management audit is a traditional control technique of
control.
50) Planning is determination of future course of action.
51) Coordination is same with
cooperation. False
52) Write the full form of TQM. Total Quality Management
53) Henry Fayol is known as the ‘father of principles of
management’.
54) ‘Identifying the problem’ is
a basic principle of decision-making process. True
55) Give two examples of
financial incentives in motivating employees. Retirement Benefits
56) Give an example of negative
motivation. Demotion
57) Why is management called a
‘group activity’?
Ans: Management plans, organizes,
co-ordinates, directs and controls the group efforts so as to achieve
organisational goals efficiently and effectively.
58) “Trying to control
everything may end up in controlling nothing.” Management
by Exception
59) Authority can be delegated,
but responsibility cannot be
delegated.
60) Give one example of non-financial
incentive. Job Security, Job Rotation
61) Write the name of one major
proponent of Traditional or Classical theory of management. F.W. Taylor
62) Which concept of management
reduces the workload of a manager? Delegation
63) What is meant by
‘efficiency’ in management?
Ans: Efficiency signifies a level of performance that describes
using the least amount of input to achieve the highest amount of output.
64) Which function of management
establishes authority/responsibility relationship? Organising
65) Name the first step in the
process of ‘managerial control’. Setting performance standard
66) Give two examples of
positive motivation in motivating employees. Incentives and rewards
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