Check the below NCERT MCQ Questions for Class 12 Business Studies Chapter 2 Principles of Management with Answers Pdf free download. MCQ Questions for Class 12 Business Studies with Answers were prepared based on the latest exam pattern. We have provided Nature and Significance of Management Class 12 Business Studies MCQs Questions with Answers to help students understand the concept very well.

Principles of Management Class 12 MCQs Questions with Answers

Question 1.
Principles of management are not
(a) behavioural.
(b) absolute
(c) universal.
(d) flexible

Answer

Answer: (b) absolute


Question 2.
Principles of management provide
(a) readymade solutions to problems.
(b) general guidelines.
(c) methods and procedures.
(d) rules and regulations.

Answer

Answer: (b) general guidelines.


Question 3.
Management principles differ from pure science principles because management principles are
(a) vague.
(b) situation-bound.
(c) rigid.
(d) easy to learn.

Answer

Answer: (b) situation-bound.


Question 4.
Principles of management are significant because these result in
(a) taking initiative.
(b) adapting to new technology.
(c) employee satisfaction.
(d) optimum utilisation of resources.

Answer

Answer: (d) optimum utilisation of resources.


Question 5.
Which one of the following is not a principle of scientific management?
(a) Functional foremanship
(b) Development of personnel
(c) Harmony, not discord
(d) Maximum, not restricted output

Answer

Answer: (a) Functional foremanship


Question 6.
Management should find ‘one best way’ to perform a task. Which technique of scientific management is defined in this sentence?
(a) Time Study
(b) Method Study
(c) Fatigue Study
(d) Motion Study

Answer

Answer: (b) Method Study


Question 7.
Unity of command is related to
(a) superiors and subordinates.
(b) management and workers.
(c) planned actions.
(d) cooperation among employees

Answer

Answer: (a) superiors and subordinates.


Question 8.
Gang plank is related to
(a) communication.
(b) motivation
(c) supervision of workers.
(d) incentives to workers

Answer

Answer: (a) communication.


Question 9.
Management principles are flexible whereas ___ principles are rigid.
(a) Pure Science
(b) Employment
(c) Scientific Management
(d) Art

Answer

Answer: (a) Pure Science


Question 10.
___ denotes concentration of authority at the top level.
(a) Decentralisation
(b) Centralisation
(c) Coordination
(d) Delegation

Answer

Answer: (b) Centralisation


Question 11.
___ is the technique in which each worker is supervised by eight supervisors.
(a) Functional foremanship
(b) Unity of action
(c) Centralisation
(d) Simplification of work

Answer

Answer: (a) Functional foremanship


Question 12.
___ principle of management puts emphasis on judicious application of penalties by the management.
(a) Esprit de corps
(b) Order
(c) Division of work
(d) Discipline

Answer

Answer: (d) Discipline


Question 13.
___ principle of management states that there should be a place for everything and everything should be in its place.
(a) Equity
(b) Discipline
(c) Order
(d) Esprit de corps

Answer

Answer: (c) Order


Question 14.
____ means one plan, one boss.
(a) Unity of direction
(b) Unity of command
(c) Centralisation
(d) Gang plank

Answer

Answer: (a) Unity of direction


Question 15.
__ involves harmony and team spirit among employees.
(a) Discipline
(b) Esprit de corps
(c) Order
(d) Standardisation

Answer

Answer: (b) Esprit de corps


Question 16.
Which principle of general management advocates that, “Employee turnover should be minimised to maintain organisational efficiency.”?
(a) Stability of personnel
(b) Remuneration of employees
(c) Equity
(d) Esprit De Corps

Answer

Answer: (a) Stability of personnel
Explanation:
According to Fayol, due care should be taken while carrying out the recruitment and selection process and the new recruits should be placed at a particular position for a sufficient tenure.


Question 17.
According to Henri Fayol, if this principle of general management is violated, “authority is undermined, discipline is in jeopardy, order disturbed and stability threatened.” Identify the principle.
(a) Authority and responsibility
(b) Discipline
(c) Unity of command
(d) Equity

Answer

Answer: (b) Discipline
Explanation:
According to Fayol, there should be one and only one boss for every individual employee and dual subordination should be avoided.


Question 18.
According to this principle of general management, “an organisation should safeguard against abuse of managerial power, but at the same time a manager should have the necessary authority to carry out his responsibility.” Name the principle of management being described in the given statement.
(a) Discipline
(b) Authority and responsibility
(c) Unity of command
(d) Unity of direction

Answer

Answer: (b) Authority and responsibility
Explanation:
Through the principle of authority and responsibility, Taylor advocated that there should always be a balance between the authority granted and the responsibility entrusted to an employee


Question 19.
The technique of differential piece rate system was developed by Taylor in order to
(a) Discriminate between efficient and inefficient workers
(b) Reward the efficient worker
(c) Motivate the inefficient workers to perform better
(d) All of the above

Answer

Answer: (d) All of the above
Explanation:
Through the technique of differential piece rate wage system, Taylor advocated . that efficient workers should be paid at a higher rate as compared to inefficient workers.


Question 20.
Which of the following is an objective of time study?
(a) To determine the number of workers to be employed
(b) To formulate suitable incentive schemes
(c) To calculate the labour costs
(d) All of the above

Answer

Answer: (d) All of the above


True or False

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

1. “Unity of command means one employee getting orders and instructions from one supervisor”.

Answer

Answer: True; in unity of command, one employee gets orders/instructions from only one supervisor.


2. Time study involves analysing movements involved in performing an activity.

Answer

Answer: False; motion study involves analysing these movements.


3. Scalar chain involves direct communication between two employees at horizontal level.

Answer

Answer: False; Gang plank involves such direct communication.


4. Discipline principle of management leads to development of team spirit.

Answer

Answer: False; Esprit de corps leads to development of team spirit.


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