MCQ Questions for Class 12 Business Studies Chapter 5 Organising with Answers

Question 1.
Organising process includes one of the following:
(a) Grouping of activities
(b) Prescribing disciplinary action
(c) Determining objectives
(d) Prescribing work schedule

Answer

Answer: (a) Grouping of activities


Question 2.
One of the following is not an importance of organising:
(a) Role clarity
(b) Performance appraisal
(c) Adaptation to change
(d) Growth and expansion

Answer

Answer: (b) Performance appraisal


Question 3.
Organisation structure establishes relationships between
(a) organisation and environment.
(b) people, work and resources.
(c) organisation and society.
(d) suppliers and customers.

Answer

Answer: (b) people, work and resources.


Question 4.
One of the following is an advantage of functional structure:
(a) Responsibility for end results
(b) Flexibility
(c) Personalised attention
(d) Easier employee learning

Answer

Answer: (d) Easier employee learning


Question 5.
Divisional structure leads to conflict in
(a) resource allocation.
(b) marketing management.
(c) motivation.
(d) planning process.

Answer

Answer: (a) resource allocation.


Question 6.
In which respect does formal organisation differ from informal organisation?
(a) Production process
(b) Structuring
(c) Financial procedure
(d) Purchasing

Answer

Answer: (b) Structuring


Question 7.
Which one of the following does not follow scalar chain?
(a) Informal organisation
(b) Functional structure
(c) Formal organisation
(d) Divisional structure

Answer

Answer: (a) Informal organisation


Question 8.
Degree of decentralisation indicates
(a) degree of authority delegation.
(b) degree of responsibility.
(c) degree of power delegation.
(d) degree of accountability.

Answer

Answer: (a) degree of authority delegation.


Question 9.
___ involves giving authority and responsibility to subordinates.
(a) Division of work
(b) Decentralisation
(c) Delegation
(d) Centralisation

Answer

Answer: (c) Delegation


Question 10.
___ is the process of grouting similar activities together and creating departments.
(a) Division of work
(b) Departmentalisation
(c) Delegation
(d) Centralisation

Answer

Answer: (b) Departmentalisation


Question 11.
___ is the organisational structure in which activities are grouped on the basis of products.
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal

Answer

Answer: (a) Divisional structure


Question 12.
__ is the organisational structure in which no department is responsible for end results.
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal

Answer

Answer: (b) Functional structure


Question 13.
___ is the duty for job performance.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both(a) and(c)

Answer

Answer: (b) Responsibility


Question 14.
___ is the right to command.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (b) and (c)

Answer

Answer: (a) Authority


Question 15.
___ cannot be delegated.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (a) and (b)

Answer

Answer: (c) Accountability


Question 16.
When decision-making authority is retained organisation is said to be by higher management levels, an
(a) Decentralised
(b) Centralised
(c) Fragmented
(d) None of the above

Answer

Answer: (b) Centralised


Question 17.
Responsibility is derived from
(a) Authority
(b)Formal position
(c) Accountability
(d) All of the above

Answer

Answer: (a) Authority


Question 18.
Which of the following cannot be delegated?
(a) Responsibility and accountability
(b) Authority and responsibility
(c) Accountability and responsibility
(d) All of the above

Answer

Answer: (a) Responsibility and accountability


Question 19.
The accountability flows
(a) In all directions
(b) Downwards
(c) Upwards
(d) None of the above

Answer

Answer: (c) Upwards
Explanation:
a subordinate is accountable to his superior


Question 20.
Authority granted to an employee should be
(a) More than the responsibility entrusted to him
(b) Less than the responsibility entrusted to him
(c) Equal to the responsibility entrusted to him
(d) All of the above

Answer

Answer: (c) Equal to the responsibility entrusted to him


True or False

State with reasons whether the following statements are True or False.

1. Delegation is the step of organising process through which departments and sections in an organisation are created.

Answer

Answer: False; departmentalisation is the step.


2. Divisional structure is the aspect of organising that establishes relationships between people, work and resources.

Answer

Answer: False; organisation structure is the aspect of organising.


3. Formal organisational structure is consciously and deliberately designed structure of well-defined jobs.

Answer

Answer: True; formal organisational structure is consciously and deliberately designed structure of well-defined jobs, each bearing a definite authority, responsibility and accountability.


4. Responsibility cannot be delegated at all.

Answer

Answer: False; accountability cannot be delegated at all.


5. Responsibility is the duty for job performance.

Answer

Answer: True; it originates from delegated authority.


6. Accountability originates from delegated authority.

Answer

Answer: False; responsibility originates from delegated authority.



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