Principles of Business Management MCQs
PBM MCQs
Multiple
Choice Questions and Answers
1. Management is essential in every:
(a)
Business.
(b)
Organised group effort.
(c)
Government.
(d)
Industry.
Ans:
(b) Organised group effort.
2. Management is need at:
(a) Top
level.
(b) Middle
level.
(c) Lower
level.
(d) All
levels.
Ans:
(d) All levels.
3. "Management
by objective (M.B.O.) is not only a technique of management but is philosophy
of management. " Who said it?
(a) F.W. Taylor
(b) Chestor Bernard
(c)Peter Drucker
(d) Henry Fayol
Ans: (c)
Peter Drucker
4. Management is:
(a) An art.
(b) A
Science.
(c) An art
as well as a Science.
(d) None of
these.
Ans:
(c) An art as well as a Science.
5. Communication
between the manager and the employees is known as __________
(a) Inter scalar
(b) Extra organizational
(c) Intra scalar
(d) Crose wise
Ans: (c)
Intra scalar
6. Management is:
(a) A pure
science.
(b) An exact
science.
(c) A social
science.
(d) Natural
science.
Ans:
(c) A social science.
7. Management is:
(a)
Tangible.
(b)
Intangible.
(c)
Fictitious.
(d) None of
these.
Ans:
(b) Intangible.
8. "Espirit
De Corps" principle was enunciated by
(a) Earnest Dale
(b) R.C. Davis
(c) Henry Fayol
(d) Peter Drucker
Ans: (c)
Henry Fayol
9. `Management is
an art of getting things done through and with formally organized group` . This
definition has been given by:
(a) Peter Drucker
(b) Henry Fayol
(c) Harold Koontz
(d) F.W. Taylor
Ans: (c)
Harold Koontz
10. `Grapevine`
is an organization means__________
(a) A prolonged
meeting
(b) Garden of a
company
(c) An angry
manager
(d) Informal gossip
Ans: (d)
Informal gossip
11. `Span of control` refers to __________
(a) A number of
units under a company
(b) Supply area
of a company
(c) Numbers of
subordinates under a manager
(d) Controlling
techniques
Ans: (c)
Numbers of subordinates under a manager
12. If two or more sugar mills combine
together, it is known as __________
(a) Horizontal
combination
(b) Vertical
combination
(c) Lateral
combination
(d) None of the
above
Ans: (a)
Horizontal combination
13. Marketing is a:
(a)
Managerial function of management.
(b)
Operative function of management.
(c) Process
of management.
(d) None of
these.
Ans:
(b) Operative function of management.
14. Planning is:
(a) Looking
ahead.
(b) Looking
back.
(c) Guiding
people.
(d)
Delegation of authority.
Ans:
(a) Looking ahead.
15. Authority flows vertically in:
(a)
Functional organisation.
(b) Line
organisation.
(c) Line and
staff organisation.
(d) None of
these.
Ans:
(b) Line organisation.
16. Recruitment, selection and training as the
essence of management:
(a)
Organising.
(b)
Directing.
(c)
Leadership.
(d)
Staffing.
Ans:
(d) Staffing.
17. Fayol classified industrial activities
into:
(a) Five
groups.
(b) Three
groups.
(c) Six
groups.
(d) Four
groups.
Ans: (c)
Six groups.
18. Fayol identified how many functions of
management:
(a) Four.
(b) Twelve.
(c) Three.
(d) Five.
Ans: (d) Five.
19. Fayol has given how many principles of
management:
(a) Ten.
(b) Twelve.
(c)
Fourteen.
(d) Fifteen.
Ans: (c)
Fourteen.
20. Fayol concentrated on:
(a) Top
level.
(b) Shop
level.
(c) Middle
level.
(d)
Productivity.
Ans: (a) Top level.
21. Fayol attempted to develop:
(a)
Scientific management.
(b)
Universal theory of management.
(c)
Productivity theory.
(d) None of
these.
Ans: (b) Universal theory of management.
22. Planning provides:
(a)
information to management.
(b) basis
for future policy formulation.
(c) purpose
and direction to all persons.
Ans: (c) purpose and direction to all persons.
23. When planning is reduced to black and
white it is known as:
(a) informal
planning.
(b) formal
planning.
(c)
prospective planning.
Ans: (b) formal planning.
24. Departmentation involves:
(a) Dividing
of activities.
(b) Grouping
of activities.
(c) Division
of work.
Ans: (a) Dividing of activities.
25. Departmentation helps in the:
(a)
improvement of efficiency.
(b) increase
of profits.
(c)
expansion of the enterprise.
Ans: (b) increase of profits.
26. Departmentation helps in:
(a)
concentration of authority with the manager.
(b) control
of activities.
(c)
decentralization of authority.
Ans: (3) decentralization of authority.
27. Who is referred to as Father of Scientific
Management?
(a) Henry Fayol.
(b) F.W.
Taylor.
(c) Louis D.
Brandeis.
(d) None of
these.
Ans: (b) F.W. Taylor.
28. The scientific technique of task setting
is known as:
(a) Work
study.
(b) Motion
study.
(c) Time
study.
(d) None of
these.
Ans: (a) Work study.
29. According to Taylor the two functions of
planning and doing should be:
(a)
Combined.
(b)
Separated.
(c)
Flexible.
(d) Rigid.
Ans: (b) Separated.
30. Taylor suggested how many functional
specialists:
(a) Six.
(b) Four.
(c) Eight.
(d) Seven.
Ans: (c) Eight.
Principles
of Business Management MCQs Asked in Past Exams (From 2008 to 2024)
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
67) Selection
starts where _______ ends.
Ans: recruitment.
68) Blank
application form is used to get _______ about the applicant.
Ans: information.
69) Proficiency
tests measure the _______ of candidates.
Ans: skill.
70) Personality
tests are used to know about _______ aspect of the candidates.
Ans:
non-intellectual.
71) Final step in
selection process is _______ of the employee.
Ans: placement
and orientation.
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