300+ TOP Principles of Management MCQs and Answers Quiz

Principles of Management Multiple choice Questions

1. Henry Fayol, F.W.Taylor belongs to which of the following school of management?
A. Neoclassical School

B. Modern School

C. Classical School

D. Early Perspective

Answer: C. Classical School

2. …………………….. involves a series of steps to be taken to accomplish desired goals.
A. Values

B. Techniques

C. Programmes

D. Actions

Answer: A. Values

3. While practicing principles of management ………………………….. cannot be neglected as business have to fulfill social and ethical responsibility towards society.
A. Values

B. Techniques

C. Programmes

D. Actions

Answer: D. Actions

4. Derivation of Principles of Management is a matter of (i)………………… and their application is a matter of (ii)…………………….
A. (i) art (ii) science

B. (i) science (ii) art

C. (i) art (ii) discipline

D. (i) discipline (ii) science

Answer: A. (i) art (ii) science

5. “ Principles help managers to take decisions while performing functions of management”
A. True, Principles are guidelines to take actions.

B. False, Functions of management are not related with Principles of Management

C. Partly True, Principles denotes cause and effect relationship which may help functions

D. False, Functions of management are just actions.

Answer: A. True, Principles are guidelines to take actions.

6. Principles of division of work is applicable to a government office where there is a diary/dispatch clerk whose job is to receive and send mail, a data entry operator whose task is to input data on the computer. Division of work is also applicable to limited company where there are separate departments like productions, finance, research and development etc. Which quality of Principles of management is highlighted above?
A. General Guidelines

B. Universal applicability

C. Flexible

D. Contigent

Answer: B. Universal applicability

7. The degree of concentration of authority or its dispersal depend upon the situation and circumstances of each enterprise. Principles give enough discretion to manger to adjust according to situation. Which Quality of Principles of management is highlighted above?
A. General Guidelines

B. Universal applicability

C. Flexible

D. Contingent

Answer: B. Universal applicability

8. Principles of management do not provide readymade solution to any problem but in dealing with a situation of conflict between two departments, a manager may emphasize the primacy of the organisational goal. Which Quality of Principles of management is highlighted above?
A. General Guidelines

B. Universal applicability

C. Flexible D.

D. Contingent

Answer: A. General Guidelines

9. Employees deserve fair and just renumeration but what is just, and fair is determined by multiple factors. They include contribution of the employee, Paying capacity of the employer and prevailing wage rate for the occupation under consideration. Which quality of Principles of Management is highlighted above?
A. General Guidelines

B. Universal applicability

C. Flexible

D. Contingent

Answer: D. Contingent

10. Management Principles increase managerial efficiency as manager leave routine decision making to his subordinates and deal with expectional situations which require his expertise by following the Principles of delegation. Which Does the above case signify about management?
A. Meeting changing environment requirements

B. Providing mangers with useful insights into reality

C. Fulfilling social responsibility

D. Management training, education and research

Answer: B. Providing mangers with useful insights into reality

11. Which of following statement justifies understanding of Principles of Management helps in taking scientific decisions
A. Adherence to these principles and add to knowledge and understanding of managerial situations.

B. Principles emphasis logic rather than blind faith.

C. Principles of management are at the core of the management theory

D. Principles are guidelines that can be modified as per the changing environment

Answer: B. Principles emphasis logic rather than blind faith.

12. In the words of …………………..,”…………………. means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way”. Find the above blank with right option
A. Henry Fayol, Management

B. W. Taylor, Scientific Management

C. Haraold Koontz, Administrative Management

D. W.Taylor Management

Answer: B. W. Taylor, Scientific Management

13. Even a small production activity like loading pigs of iron into boxcars can be scientifically planned and managed. This can result in tremendous saving of human energy as well as wastage of time and materials. Which of the following Principles if management emphasize on above situation?
A. Harmony does not discord

B. Science not Rule of Thumb

C. Initiative

D. Development of each person to his or her greatest efficiency and prosperity

Answer: B. Science not Rule of Thumb

14. As per Cooperation, Not individualism principle of management, Competition should be replaced with………………..
A. Coordination

B. Cooperation

C. Management

D. Harmony

Answer: B. Cooperation

15. Which of the following statements justifies the Principle Cooperation not Individualism.
A. Management and workers should transform their thinking towards each other Coordination

B. There should be equal division of work between Management and workers

C. Industrial efficiency depends to a large extent on personnel competencies

D. There is only one best method to maximize efficiency

Answer: B. There should be equal division of work between Management and workers

16. Which of the following scientific management is violation of Unity of Command
A. Differential piece wage system

B. Fatigue study

C. Functional Foremanship

D. Simplification of work

Answer: C. Functional Foremanship

17. Which of the following technique of scientific management has the objective to determine the number of workers to be employed: frame suitable incentive schemes and determine labour cost.
A. Differential piece wage system

B. Time study

C. Functional foremanship

D. Simplification of work

Answer: B. Time study

18. According to Taylor there can be many hindrances in good performance which may lead to fatigue. Identify the most suitable cause of Fatigue among the following options.
A. Long working hours

B. Doing unsuitable work

C. Non cordial relation with boss

D. All the above

Answer: D. All the above

19. . …………………… among the following was the first to identify four functions of management.
A. Henry Fayol

B. W. Taylor

C. Max Weber

D. Harold Koontz

Answer: A. Henry Fayol

20. Fayol’s Principle of Division of work can be applied to following kind of work.
A. Technical

B. Managerial

C. Both

D. None of these

Answer: C. Both

21. “Authority is undermined, displine in jeopardy, order disturbed and stability threatened” Above statement is the violation of one of the principles of management.
A. Unity of direction

B. Discipline

C. Unity of command

D. Stability of Personnel

Answer: C. Unity of command

22. Which of the following is the most suitable example for principle of Centralization and Decentralization’
A. Manager should not fall in the temptation of misusing his/her powers for personal gains.

B. Panchayats in India have been given more powers to decide spend fund for welfare of people of their village.

C. Company has suggestion box system to encourage suggestions from

D. Personnel should be given reasonable time to show results

Answer: B. Panchayats in India have been given more powers to decide spend fund for welfare of people of their village.

23. The continuation of Fayol and Taylor are ………………………. to each other
A. Competitive

B. Cooperative

C. Complimentary

D. Coordinated

Answer: C. Complimentary

24. General theory of Administration is the expression of:
A. W.Taylor

B. Henry Fayol

C. Max Weber

D. Brech

Answer: B. Henry Fayol

25. How are principles of management are formed?
A. By rule of Thumb

B. By observation and experimentation

C. By experiences of customers

D. By experiments in Science laboratory

Answer: B. By observation and experimentation

26. Direction is a ________ function performed by all the managers at all levels of the organization.
A. Managerial

B. Organizational

C. Both (A) and (B)

D. None of the above

Answer: A. Managerial

27. Retailing category(ies) based on ownership arrangement would be
A. Super Markets

B. Consumer Durables Stores

C. Departmental Stores

D. All of the above

Answer: D. All of the above

28. Which type of strategies do professional managers help organizations in chalking out?
A. Multi-disciplinary

B. Corporate

C. Managerial

D. All of the above.

Answer: B. Corporate

29. Which of the following is not a principle by Henry Fayol?
A. Division of work

B. Harmony not discord

C. Discipline

D. Unity of Command

Answer: B. Harmony not discord

30. Management should find the one best way to perform a task. Which technique of management states that:
A. Time study

B. Motion study

C. Fatigue study

D. Method study

Answer: D. Method study
Planning

31. Identify the best definition of planning.
A. An integrated process in which plans are formulated, carried out and controlled

B. Devising ways of achieving the objectives of an organization.

C. Setting an organization’s objectives and the means of reaching them.

D. The core activity of planners and planning departments.

Answer: C. Setting an organization’s objectives and the means of reaching them.

32. The top management works on
A. Strategic Plan

B. Corporate Plan

C. Budgeting

D. Both A and B

Answer: A. Strategic Plan

33. What is the planning horizon?
A. The time ahead for which there is no information.

B. The time between making a plan and putting it into effect.

C. The maximum time for which managers can make plans.

D. The time period within which uncertainty is very low.

Answer: B. The time between making a plan and putting it into effect.

34. A strategic plan is also called ___________
A. Long term plan

B. Short term plan

C. Both A and B

D. None of above

Answer: A. Long term plan

35. The first step in the planning process is to
A. Set an objective

B. Evaluate alternatives

C. Determine strength and weaknesses

D. None of above

Answer: A. Set an objective

36. The decision making step, which consists of organization goals, predicting alternatives and communicating goals is called __________
A. Organization

B. Alternation

C. Planning

D. Valuing

Answer: C. Planning

37. MBO offers the basis for assessing the —
A. Operations

B. performance

C. equality

D. None these

Answer: B. performance

38. MBO was developed by —-
A. Peter.F.Drucker

B. Chester Bernard

C. Fayol

D. None

Answer: A. Peter.F.Drucker

39. The process of MBO starts with —–
A. setting up of obligation

B. Fetron plan

C. Review

D. All

Answer: A. setting up of obligation

40. Organisational decisions are made by ——
A. Directors

B. Managers

C. Managing directors

D. None of these

Answer: B. Managers

41. Policies are flexible where as procedure are ——–
A. specific

B. detailed

C. Rigid

D. All

Answer: C. Rigid

42. ———–is described as interpretative planning
A. Procedure

B. Strategy

C. Policies

D. None of the above.

Answer: B. Strategy

43. ————–indicates the exact manner in which the integrated serious of activities will
A. Procedures

B. Planning

C. Organizing

D. Staffing

Answer: A. Procedures

44. Planning is ————–process
A. Directing

B. Thinking

C. Forecasting

D. None of these

Answer: B. Thinking

45. MBO offers the basis for assessing the —————–
A. Techniques

B. Performance

C. Authority

D. Subject

Answer: B. Performance

46. Planning is………..
A. Pervasive

B. Futuristic

C. Continues

D. All of these

Answer: D. All of these

47. Planning involves…………….
A. Future course of action

B. Review of past performance

C. Analysis of policies

D. All of these

Answer: A. Future course of action

48. Planning provides………….
A. Information to outsiders

B. Basis for recruitment and selections

C. Purpose and direction of all persons

D. None of these

Answer: C. Purpose and direction of all persons

49. Operational planning is undertaken at……………..
A. Top level

B. lower level

C. middle level

D. All of these

Answer: B. lower level

50. Planning process began with
A. Setting objectives

B. Identity alternatives

C. Developing planning premise

D. Selecting alternatives

Answer: A. Setting objectives

51. It is a function of management which refers to the process of integrating the activities of different units of organization to achieve the organization goals. This is called
A. Actuating

B. Controlling

C. Co-ordination

D. Planning

Answer: C. Co-ordination

52. Planning is
A. Forward looking

B. Backward looking

C. Both forward and backward looking

D. None of the above

Answer: C. Both forward and backward looking

53. Management by objective is
A. goal oriented

B. work oriented

C. budget oriented

D. none of the above

Answer: A. goal oriented
54. Which among the following involves in planning process?
A. Selection of objective

B. Determine the way to achieve objective

C. Both A and B

D. None of the above

Answer: C. Both A and B
55. Which among the following is a single use plan?
A. Objectives

B. Policies

C. Rules

D. Budget

Answer: D. Budget

56. __________ is the decision making body of an organization?
A. Decentralization

B. Administration

C. Functional organization

D. Leadership

Answer: B. Administration
57. The difference between annual and long-range plans versus a strategic plan is that the annual and long-range plans deal with the company’s current business and how to keep them going, while the strategic plan deals with:
A. Functional activities

B. Global activities

C. Tactical decisions.

D. Adapting the firm to take advantage of opportunities in its constantly changing environment.

Answer: D. Adapting the firm to take advantage of opportunities in its constantly changing environment.
58. The three types of plans usually prepared by companies include annual plans, strategic
plans and ___________ plans.
A. Hourly

B. Long-range

C. Model

D. Psychological

Answer: B. Long-range
59. Planning encourages management to think systematically about what has happened,
what is happening and ______________
A. When it is happening

B. What might happen

C. Should something happen

D. Should something stop

Answer: B. What might happen
Evolution of Management Thoughts
60. What is the full form of MBO?
A. Management By Opportunity

B. Method By opportunity

C. Management By Objectives

D. Method By Objective

Answer: C. Management By Objectives
Organising
61. Which of the following activities is better decentralised in the typical organisation?
A. Operations management

B. Information systems design

C. Purchasing capital equipment

D. Controlling international cash flows

Answer: A. Operations management
62. Factors affecting organizational behavior is/are
A. People

B. Enviournment

C. Technology

D. All the above

Answer: D. All the above
63. Which organisational structure facilitates occupational specialisation,
A. Functional structure

B. Horizontal structure

C. Network structure

D. Divisional structure

Answer: A. Functional structure
64. As we go higher up in the management hierarchy the scope of authority
A. Increases

B. Decreases

C. Remains same

D. None of the above

Answer: A. Increases
65. Which of the following is not an example of ‘structure?
A. Supplies of materials

B. Rules and procedures

C. Formal hierarchy

D. Information systems

Answer: A. Supplies of materials

66. An organizational chart describes:
A. The relationship between the different departments and their personnel

B. The company goals

C. The function each person performs.

D. Both B and C

Answer: A. The relationship between the different departments and their personnel
67. Choose the correct sequence of steps to be followed in an organizing process.
A. Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of work

B. Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting relationships

C. Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of duties

D. Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships

Answer: D. Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships
68. For An employee Authority granted should be
A. Equal to the responsibility entrusted to him

B. Less than the responsibility entrusted to him

C. More than the responsibility entrusted to him

D. All of the above

Answer: A. Equal to the responsibility entrusted to him
69. Employee relationships are major element of occupation of
A. Marketing manager

B. Account manager

C. Finance manager

D. Human resource manager

Answer: D. Human resource manager
70. When the “voice of customers” is brought into the organization, which of the following
organizational structures work best?
A. Virtual teams

B. Cross functional teams

C. Matrix

D. Line and staff

Answer: B. Cross functional teams

71. The average loss of manpower due to leave, retirement, death, transfer, discharge, etc to
calculate the need for manpower is known as
A. Work load analysis

B. Forecasting

C. Job analysis

D. Workforce analysis

Answer: D. Workforce analysis
72. Which of the following is not ways to departmentalize
A. By function

B. By employee

C. By process

D. By product

Answer: B. By employee
73. Choose option that is not a feature of formal organisation?
A. It specifies the relationships among various job positions

B. The standards of behaviour of employees are evolved from group norms

C. It is deliberately designed by the top management

D. It places less emphasis on interpersonal relationships among the employees

Answer: B. The standards of behaviour of employees are evolved from group norms
74. A strategy of jog design that increases job depth by meeting employees needs for psychological growth
A. Job rotational

B. Job enlargement

C. Job engagement

D. Job enrichment

Answer: D. Job enrichment
75. A job is evaluated based on essential information is
A. Job description

B. Job enrichment

C. Job ranking

D. Job enlargement

Answer: A. Job description

76. Which of the following characteristics under Job specification
A. Psychological characteristics

B. Physical characteristics

C. Personal characteristics

D. All of the above

Answer: D. All of the above
77. Higher management levels retains decision-making authority in organisation is said to be
A. Decentralised

B. Centralised

C. Fragmented

D. All the above

Answer: B. Centralised
78. The record of outcomes produced on a specific job function or activity during a specific
time period is called
A. Work function

B. Evaluation

C. Performance

D. None of the above

Answer: C. Performance
79. Information on the human attributes in terms of education, skills, aptitudes, and experience
necessary to perform a job effectively is
A. Job evaluation

B. Job specification

C. Job description

D. Job analysis

Answer: B. Job specification
80. Career development is defined as
A. Providing information to students about opportunities of employment

B. Determining the potentialities of students for a suitable career

C. Conscious determination of career aspirations and potentialities of employees and matching them with the organisation’s needs

D. Providing counselling to students to choose their careers

Answer: C. Conscious determination of career aspirations and potentialities of employees and matching them with the organisation’s needs

81. Human Resource planning is compulsory for
A. Base for recruitment

B. Base for selection policy

C. Effective employee development programme

D. All the above

Answer: D. All the above
82. Appointing someone on a post that is at same wages/rank refers to
A. Internal recruiters

B. Employee referral

C. Lateral hiring

D. Sourcing

Answer: C. Lateral hiring
83. 360° appraisal means?
A. A process that provides an employee opportunity in decision making

B. A process that provides an officer opportunity of feedback about own performance

C. Both A and B

D. A process that provides an employee with feedback about his / her workplace performance

Answer: D. A process that provides an employee with feedback about his / her workplace performance
84. Identify the related step in organising process being mentioned in the below lines. Hari has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together.
A. Identification and division of work

B. Departmentalisation

C. Assignment of duties

D. Establishing reporting relationships

Answer: B. Departmentalisation
85. Find correct one which cannot be delegated?
A. Responsibility and accountability

B. Authority and responsibility

C. Accountability and responsibility

D. All of the above

Answer: A. Responsibility and accountability

86. Training & Development program in international Human Resource Management should give attention to
A. Understanding of the cultural environment of the host country

B. Improvement of technical expertise

C. Promotion of efficiency of personnel in the host country

D. All the above

Answer: D. All the above
87. Linkedin, Twittter, facebook are used for recruitment is
A. Media recruiting

B. Social recruiting

C. External recruiting

D. Internal recruiting

Answer: B. Social recruiting
88. Why grievances to be redressed?
A. Collective disputes conversion

B. Affects the management

C. Affects the individual

D. All the above

Answer: D. All the above
89. Termination of employee by an owner besides will of worker is /are
A. Screening

B. Dismissal

C. Firing

D. Both B and C

Answer: D. Both B and C
90. Manpower planning is
A. Estimating the turnover likely to happen in near future

B. Identifying the skills / filling up the requirements

C. Determining the jobs to be done / identifying the skills / estimating the exists likely / filling up the requirements

D. Determining the jobs to be done

Answer: C. Determining the jobs to be done / identifying the skills / estimating the exists likely / filling up the requirements
Directing
91. It is very difficult to detect the source of such communication.
A. Upward communication

B. Vertical communication

C. Lateral communication

D. Informal communication

Answer: D. Informal communication
92. It refers to the process of instructing, guiding, counseling, motivating and leading people in
the organization to achieve their objectives.
A. Planning

B. Organizing

C. Staffing

D. Directing

Answer: D. Directing
93. Which of the following is not an element of directing?
A. Supervision

B. Communication

C. Leadership

D. Inspection

Answer: D. Inspection
94. Identify the level at which the directing function takes place in an organization?
A. Top level management

B. Middle level management

C. Lower level management

D. All of the Above

Answer: D. All of the Above
95. It means the process of making subordinates to act in a desired manner to achieve certain
organizational goals.
A. Supervision

B. Communication

C. Leadership

D. Motivation

Answer: C. Leadership

96. Effective motivation in the organisation does not contribute towards
A. Developing performance levels of employees

B. Helping to reduce employee turnover

C. Resistance to changes in the organisation

D. All of the above

Answer: C. Resistance to changes in the organisation
97. Which of the following is not an example of financial incentive?
A. Perquisites

B. Job Enrichment

C. Profit Sharing

D. Co-partnership

Answer: B. Job Enrichment
98. It is the process of influencing the behavior of people by making them strive voluntarily
towards achievement of organisational goals.
A. Supervision

B. Communication

C. Leadership

D. Motivation

Answer: C. Leadership
99. Which of the following is not a feature of leadership?
A. It shows ability of an individual to influence others.

B. It leads to achievement of organisational goals.

C. Leadership is one-time process.

D. It leads to desired change in the organisation.

Answer: C. Leadership is one-time process.
100. Identify the correct sequence of steps involved in the communication process.
A. Sender, Message, Encoding, Media, Decoding, Receiver, Feedback

B. Sender, Decoding, Receiver, Feedback, Message, Encoding, Media

C. Sender, Message, Encoding, Media, Decoding, Receiver, Feedback

D. Sender, Media, Decoding, Receiver, Message, Encoding, Feedback

Answer: C. Sender, Message, Encoding, Media, Decoding, Receiver, Feedback

101. Formal communication may take place between
A. Superior and subordinate

B. Subordinate and superior

C. Two managers at the same level

D. All of the above

Answer: D. All of the above
102. Upward communications refer to flow of communication from
A. Subordinate to superior

B. One departmental manager to another

C. Superior to subordinate

D. All of the above

Answer: A. Subordinate to superior
103. Downward communications refer to flow of communication from
A. One departmental manager to another

B. Superior to subordinate

C. Subordinate to superior

D. All of the above

Answer: B. Superior to subordinate
104. Lateral communication takes place from
A. First to second division of the same organization

B. Superior to subordinate

C. Subordinate to superior

D. All of the above

Answer: A. First to second division of the same organization
105. Which of the following is not a type of communication barriers?
A. Semantic barriers

B. Psychological barriers

C. Rational barriers

D. Organizational barriers

Answer: C. Rational barriers

106. Which of the following ways help in improving the communication effectiveness?
A. Ensuring proper feedback

B. Being a good listener

C. Ensuring follow up patience

D. All of the above

Answer: D. All of the above
107. On the successful completion of two years in a company, Harsh received a letter confirming his job as permanent employee. Identify the need of Harsh being fulfilled as per Maslow’s Need Hierarchy Theory.
A. Esteem Needs

B. Security Needs

C. Self Actualisation Needs

D. Basic Physiological Needs

Answer: B. Security Needs
108. Identify the style of leadership in which the superior uses file forces from within the groups
in order to establish control.
A. Autocratic leadership

B. Democratic leadership

C. Laissez-faire leadership

D. Authoritarian leadership

Answer: B. Democratic leadership
109. Mohit recently got a raise in his salary due to annual increment. Which of his human needs
is being satisfied through this?
A. Security Needs

B. Belonging Needs

C. Self Actualisation Needs

D. Basic Physiological Needs

Answer: D. Basic Physiological Needs
110. Which of the following is not an assumption of Maslow’s theory?
A. People’s behavior is not based on their needs.

B. Satisfaction of such needs influences their behavior.

C. A satisfied need can no longer motivate a person; only next higher level need can motivate him.

D. A person moves to the next higher level of the hierarchy only when the lower need is satisfied.

Answer: A. People’s behavior is not based on their needs.

111. It refers to all measures which are used to motivate people to improve performance,
A. Leadership

B. Motivation

C. Incentives

D. Communication

Answer: C. Incentives
112. As the general manager of an e-commerce company, Gagan maintains good interpersonal relations with followers and also motivates them to contribute for achieving organisational goals. Identify the concept being described in the above lines.
A. Supervision

B. Communication

C. Determination

D. Leadership

Answer: D. Leadership
113. Which of the following is not a type of psychological barriers?
A. Premature evaluation

B. Lack of attention

C. Fear of challenge to authority

D. Distrust

Answer: C. Fear of challenge to authority
114. Which of the following is not a type of personal barrier?
A. Fear of challenge to authority.

B. Unwillingness to communicate

C. Loss by transmission and poor retention

D. Lack of proper incentive

Answer: C. Loss by transmission and poor retention
115. While other functions prepare a setting for action, name the function that initiates action in
the organization.
A. Planning

B. Organizing

C. Staffing

D. Directing

Answer: D. Directing
116. It is defined as the process of guiding the efforts of employees and other resources to accomplish the desired objectives.
A. Supervision

B. Communication

C. Leadership

D. Inspection

Answer: A. Supervision

117. These needs are most basic in the hierarchy of motivation theory and correspond to primary needs.
A. Self Actualisation Needs

B. Basic Physiological Needs

C. Security Needs

D. Belonging Needs

Answer: B. Basic Physiological Needs
118. Boom Limited gives due weightage to the perquisites and prestige of job so that the designation helps to satisfy the psychological, social and esteem needs of an individual. Identify the type of incentive being described in the above lines.
A. Employee empowerment

B. Job security

C. Status

D. Perquisites

Answer: C. Status
119. Yajur, as a Project Manager, is able to assess the true potential of his subordinates and constantly motivates them to realise their full potential. Identify the element of directing being described in the above lines.
A. Leadership

B. Communication

C. Supervision

D. Motivation

Answer: A. Leadership
120. As an employee of an automobile company, Suraj has always been very lazy and evasive. In order to change his behavior, his boss decided to give him an incentive. Identify the feature of motivation being described in the above lines.
A. Motivation is an internal feeling.

B. Motivation produces goal-directed behavior.

C. Motivation is a complex process.

D. None of the above

Answer: B. Motivation produces goal-directed behavior.
Controlling
121. State the stage at which the preventive control takes place.
A. Input

B. Output

C. Process

D. None of the above

Answer: A. Input
122. The formal control deals with——————-
A. Price and shared Values

B. Rules and Procedures

C. Trust

D. Competition

Answer: B. Rules and Procedures
123. The clan control deals with —————————
A. Authority

B. Profit Centres

C. Rules and Standards

D. Expectations

Answer: D. Expectations
124. Controlling in management is of ————————- type
A. Preventive

B. Corrective

C. Preventive and Corrective

D. All of the Above

Answer: C. Preventive and Corrective
125. How many steps are there in the controlling process?
A. 2

B. 3

C. 4

D. 5

Answer: C. 4

126. Screening Control is otherwise called as —————-
A. Feedforward Control

B. Concurrent Control

C. Feedback Control

D. Cascade Control

Answer: B. Concurrent Control
127. Give the time period for long term budget
A. 6 Months

B. 12 Months

C. 15 Months

D. More than a year

Answer: D. More than a year
128. Give an example for a long budget.
A. Cash Budget

B. Basic Budget

C. Current Budget

D. None of the above

Answer: B. Basic Budget
129. Balance Sheet is an example of ——————- budget
A. Fixed

B. Flexible

C. Long term

D. Master

Answer: D. Master
130. Assertion: Budgets are better expresses in quantities than monetary hours. Reason: Money cannot measure the resources used and the result obtained.
A. Assertion is True and Reason is False

B. Assertion is False and Reason is False

C. Assertion is False but Reason is Acceptable

D. Assertion is True and Reason is True

Answer: D. Assertion is True and Reason is True

131. Capital budget is a———————————- budget.
A. Long term budget

B. Material Budget

C. Short Term Budget

D. Cash Budget

Answer: A. Long term budget
132. Give an example for budgetary control Techniques.
A. PERT

B. GANTT

C. Zero based Budget

D. Audit

Answer: C. Zero based Budget
133. Relationship between revenues and expenses is given by
A. Audit

B. Breakeven point Analysis

C. Profit and loss budget

D. PERT

Answer: B. Breakeven point Analysis
134. State a tool to evaluate Project execution and completion time.
A. Time Budget

B. Functional Budget

C. Variable Budget

D. PERT

Answer: D. PERT
135. Economic Productivity= ——————–
A. Output/input

B. Value/Cost

C. Input/Output

D. Cost/Value

Answer: B. Value/Cost

136. Physical Productivity= ————————————
A. Output/input

B. Cost/Value

C. Amount of product/resources

D. Value of Product /resources

Answer: C. Amount of product/resources
137. Economic Productivity=———————————————
A. Output/input

B. Cost/Value

C. Amount of product/resources

D. Value of Product /resources

Answer: D. Value of Product /resources
138. An Example of Direct Control ——————————–
A. Authority

B. Responsibility

C. Credit policy

D. Documentation

Answer: C. Credit policy
139. ——————————— is a preventive control
A. Authorization

B. Credit Policy

C. Fiscal policy

D. All of the above

Answer: A. Authorization
140. Management Information System deals with —————————–
A. Document Preparation

B. Record Keeping

C. Business Planning

D. All of the Above

Answer: D. All of the Above
141. State the basic principle behind Pareto diagrams.
A. 80/20 rule

B. Scientific Method of tracking

C. Visualization of Process

D. None of the above

Answer: A. 80/20 rule

142. State the basic principle behind Control charts and Scatter Plot.
A. 80/20 rule

B. Scientific Method of tracking

C. Visualization of Process

D. None of the above

Answer: B. Scientific Method of tracking
143. Give an example of the chart that has boundary lines or limits.
A. Pareto Diagrams

B. Control Charts

C. Process Mapping

D. Cause and Effects diagrams

Answer: B. Control Charts
144. Fishbone diagrams are called as ————————————
A. Scatter Plots

B. Control Charts

C. Pareto Diagrams

D. Cause and Effects Diagrams

Answer: D. Cause and Effects Diagrams
145. The limitation in Operations Research is——————————–
A. Data Collection

B. Formulating Control and Objectives

C. Validating Model and output

D. Formulating human behavior

Answer: D. Formulating human behavior
146. Among the following businesses, which business offers full control over foreign markets?
A. Exporting

B. FDI

C. Licensing

D. Franchising

Answer: B. FDI
147. By having ——————————-, multinational companies prevent their competitors
to grow.
A. Government Power

B. Market Withdrawal

C. Lobbying

D. Patents

Answer: D. Patents

148. Statistical Analysis falls under ——————————————
A. Budgetary Control Technique

B. Non- Budgetary Control Technique

C. Maintenance Control Technique

D. Cost Control Technique

Answer: B. Non- Budgetary Control Technique
149. State the Category under which the Financial Statements fall.
A. Purchase Control

B. Maintenance Control

C. Quality Control

D. Cost Control

Answer: C. Quality Control
150. Prime Vending is a form of ————————– buying
A. Formal

B. Informal

C. Prime

D. Open Market

Answer: A. Formal

151. A primary benefit of MBO is:
A. Avoid competition

B. Resistance against new entrance

C. Improve employee motivation

D. Increase resources

Answer: C. Improve employee motivation
152. Functional departmentalization groups’ jobs by which of the following?
A. Tasks they perform

B. Territories they serve

C. Products or services they manufacture or produce

D. Type of customer they serve

Answer: A. Tasks they perform
153. Henri Fayol, a French industrialist, first analyzed what managers do and divided that work into functions The study of the management function that defines goals and establishes strategies to achieve them is called:
A. Planning

B. Organizing

C. Leading

D. Controlling

Answer: A. Planning
154. Which one of the following items best reflects the extent to which a
society places a high value on reducing risk and instability?
A. Uncertainty avoidance

B. Power distance

C. Masculinity/femininity

D. Long-term/short-term orientation

Answer: A. Uncertainty avoidance
155. When a manger made a decision and he is uncertain about the
outcomes His decision is likely to be:
A. Of Poor Quality

B. Unacceptable

C. Successful

D. Risky

Answer: D. Risky

156. Forecasting techniques fall into which of the following two categories?
A. Fixed asset and human capital

B. Predictive and confirmatory

C. Quantitative and qualitative

D. Empirical and conceptual

Answer: C. Quantitative and qualitative
157. A plan developed to carry out a course of action that is not likely to be
repeated in the future is called:
A. Single-use plan

B. Specific plan

C. Reaction plan

D. Directional plan

Answer: A. Single-use plan
158. The organization which has no interaction with its external
environment is called:
A. Open system

B. Closed system

C. Non-interactive system

D. Moderated system

Answer: B. Closed system
159. Which famous management thinker was related with the development
of “Theory X”?
A. Douglas McGregor

B. Abraham Maslow

C. Frederick Herzberg

D. Chester Barnard

Answer: A. Douglas McGregor
160. The management function that specifies goals to be achieved and
deciding in advance the appropriate actions to achieve those goals is:
A. Leading

B. Controlling

C. Organizing

D. Planning

Answer: D. Planning

161. Supervisor is another name for whom?
A. team leaders

B. middle managers

C. first-line managers

D. top managers

Answer: C. first-line managers
162. Which of the following is true concerning technical and managerial
skills?
A. Human skills and technical skills remain equally important as managers move to higher levels.

B. Technical-skill needs remain necessary and human skills decrease as managers move to higher levels.

C. Human skills remain necessary and technical-skill needs decrease as managers move to higher levels.

D. Both human-skill and technical-skill needs decrease as managers

Answer: C. Human skills remain necessary and technical-skill needs decrease as managers move to higher levels.
163. Which of the following views of managerial impact is useful in explaining the high turnover among college and professional sports coaches who can be considered the “managers” of their teams?
A. symbolic

B. omnipotent

C. generalist

D. autocratic

Answer: B. omnipotent
164. Managers operate within the constraints imposed
by__________________.
A. government at the federal and state level

B. the employees of the organization

C. the organization’s culture and environment

D. the organization’s board of directors

Answer: C. the organization’s culture and environment
165. Which of the following is not an example of a constituency that
makes up the specific environment?
A. customers

B. sociocultural factors

C. suppliers

D. competitors

Answer: B. sociocultural factors
166. Employees in organizations with strong cultures _______________.
A. are more committed to their organization

B. are more likely to leave the organization than stay

C. are more willing to perform illegal activities

D. are more likely to follow directives from peers

Answer: A. are more committed to their organization

167. When Japanese employees use words such as: KAIZEN and RINGI,
they are using organizational __________.
A. languages

B. rituals

C. symbols

D. artifacts

Answer: A. languages
168. According to the textbook, _______________ refers to the number of components in an organization’s environment and the extent of the knowledge that the organization has about those components.
A. degree of stability

B. openness

C. degree of complexity

D. change

Answer: C. degree of complexity
169. A manager resolving conflict among organizational members is
performing what function?
A. controlling

B. commanding

C. directing

D. leading

Answer: D. leading
170. According to Mintzberg’s management roles, the _____________ roles are those that involve people and other duties that are ceremonial and symbolic in nature.
A. informational

B. interpersonal

C. technical

D. decisional

Answer: B. interpersonal
171. Hawthorne studies were a series of early experiments that focused on:
A. Behavior in the workplace

B. Ethics in the workplace

C. Group norms

D. Interpersonal dynamics

Answer: A. Behavior in the workplace
172. Selecting an alternative in the decision-making process is
accomplished by option:
A. Choosing the alternative with the highest score

B. Choosing the One You Like Best

C. Selecting the alternative that has the lowest price

D. Selecting the alternative that is the most reliable

Answer: A. Choosing the alternative with the highest score

173. A plan developed to carry out a course of action that is not likely to
be repeated in the future is called:
A. Single-use plan

B. Specific plan

C. Reaction plan

D. Direction plan

Answer: B. Specific plan
174. Concern for employee motivation is most closely associated with
which of the following management approach?
A. Bureaucracy

B. Organizational behavior (NOT SURE)

C. Scientific management

D. Systems

Answer: B. Organizational behavior (NOT SURE)
175. Interest rates, inflation rates, and stock market indexes are all examples of which of the factor of an organization’s general environment?
A. Economic

B. Political

C. Social

D. Technological

Answer: A. Economic

176. Which factor has been the most rapidly changing component in an
organization’s general environment in the past quarter-century?
A. Global

B. Economic

C. Social

D. Technological

Answer: D. Technological
177. The process of monitoring performance, comparing it with goals and
correcting any significant deviations is known as:
A. Planning

B. Organizing

C. Leading

D. Controlling

Answer: D. Controlling
178. When Usman decides to deploy employees to another department that is lagging behind in production, he is acting in which of the following roles?
A. Spokesperson

B. Negotiator

C. Leader

D. Resource allocator

Answer: D. Resource allocator
179. The greater the risk involves in making a decision, the greater the:
A. Outcomes

B. Information available

C. Rewards

D. Uncertainty

Answer: C. Rewards
180. Each subordinate should report to one and only one superior is
called:
A. Authority

B. Unity of command

C. Unity of direction

D. Order

Answer: B. Unity of command

181. Which of the following is part of the principles of management
identified by Henri Fayol?
A. Scalar chain

B. Innovation

C. Efficiency

D. Motivation

Answer: A. Scalar chain
182. A learning organization has developed its________
A. Educational department to keep employees trained

B. Capacity to adapt and change

C. Barriers to entry of its markets

D. A sustainable competitive advantage that is easy to maintain

Answer: B. Capacity to adapt and change
183. Which of the following is not a suggestion for motivating employees?
A. Recognize individual differences

B. Makes goals very difficult to achieve

C. Match people to jobs

D. Individualize rewards

Answer: B. Makes goals very difficult to achieve
184. In Maslow’s need hierarchy, a healthy work environment is an
example of what type of need?
A. Physiological

B. Steem

C. Safety

D. Social

Answer: C. Safety
185. The plans which deal with fairly small set of activities are called:
A. Strategic plan

B. Tactical plan

C. Operational plan

D. Personal plan

Answer: C. Operational plan

186. Which of the following is known as the process of getting activities
completed efficiently and effectively with and through other people?
A. Leading

B. Management

C. Supervision

D. Controlling

Answer: B. Management
187. Which of the following describe(s) a global marketplace?
A. The entire world is a marketplace

B. National borders are irrelevant

C. The potential for organizations to grow expands dramatically

D. All of the given options

Answer: D. All of the given options
188. The assignment of new or additional responsibilities to a subordinate
is called:
A. Coordination

B. Specialization

C. Delegation

D. Span of control

Answer: C. Delegation
189. Which of the following management thinker created a role classification system based on how managers spend their time at work to describe a manager’s role?
A. Peter Brabeck-Letmathe

B. Abraham Maslow

C. Andrea Jung

D. Henry Mintzberg

Answer: D. Henry Mintzberg
190. Which expectancy theory linkage explains the degree to which a
student desires a good job?
A. Expectancy

B. Effort to performance

C. Input to outcome

D. Valence

Answer: A. Expectancy
191. Which ethical approach is guided by what will result in the greatest
good for the greatest number of people?
A. Moral-Rights approach

B. Individual approach

C. Utilitarian approach

D. Justice approach

Answer: D. Justice approach

192. Low level management has a complete authority to make decisions
in case of:
A. Centralization

B. Decentralization

C. Scalar Chain

D. Order

Answer: B. Decentralization
193. Which one of the following individuals is most closely associated with
scientific management?
A. Frederick Taylor

B. Mary Parker Follett

C. Harold Koontz

D. Max Weber

Answer: A. Frederick Taylor
194. There are many healthcare products manufacturers XYZ Company manufactures only personal hygiene products It markets such products deodorant, body powder, body creams, and exfoliates Because it only stocks body care and personal hygiene products, it is using ___ strategy :
A. Prospecting

B. Emergent

C. Focus

D. Cost leadership

Answer: C. Focus
195. When managers give goals to employees, they must always: :
A. Use employee-recognition as a reward

B. Provide feedback to the employees

C. Let the employees participate in setting the goals

D. All of the given options

Answer: D. All of the given options
196. The organization that has developed the capacity to continuously
learn, adapt, and change is called:
A. Virtual organization

B. Learning organization

C. Traditional organization

D. Bureaucratic organization

Answer: B. Learning organization
197. Your firm’s attorney has which of the following power when giving legal advice?
A. Legitimate

B. Status

C. Expert

D. Coercive

Answer: C. Expert

198. Which of the following is a function of how much decision-making
authority is pushed down to lower levels in the organization?
A. Departmentalization

B. Centralization

C. Span of control

D. Power

Answer: A. Departmentalization
199. Organizations that are highly flexible and adaptive are described as
which of the following?
A. Organic

B. Mechanistic

C. Rational

D. Intuitive

Answer: C. Rational
200. A human resource manager attending a local Society for Human
Resource Management meeting would be functioning in which of the following role?
A. Informational

B. Leader

C. Liaison

D. Disseminator

Answer: C. Liaison

201. Which type of environment is best suited for mechanistic
organizations?
A. Dynamic

B. Manufacturing

C. Service

D. Stable

Answer: A. Dynamic
202. The most outspoken advocate of the classical view of social
responsibility is economist and Nobel prize winner:
A. Carnegie Milton

B. Charles Darwin

C. Milton Freeman

D. Milton Friedman

Answer: C. Milton Freeman
203. In traditional goal setting, the goals are set at the top level of management and after that they:
A. Become the responsibility of first-line management

B. Are broken down into sub goals for each level of the organization

C. All the efforts to achieve the goals are directed by top management

D. Are delegated to the next lower level to be achieved

Answer: B. Are broken down into sub goals for each level of the organization
204. Which of the management tasks is the most important for a
supervisory manager?
A. Planning

B. Organizing

C. Controlling

D. Staffing

Answer: C. Controlling
205. A budget is an example of which of the following plan?
A. Strategic plan

B. Single use plan

C. Informal plan

D. Standing plan

Answer: B. Single use plan

206. Which of the following is the final step in the decision-making
process?
A. Identifying the problem

B. Evaluating the decision’s effectiveness

C. Identifying decision criteria

D. Selecting an alternative that can resolve the problem

Answer: B. Evaluating the decision’s effectiveness
207. The behavioral dimension of leadership involving the concern that
the leader has for the feelings, needs, personal interest, problems, and well-being of followers is referred to as which of the following?
A. Consideration

B. Initiating structure

C. Autocratic

D. Democratic

Answer: D. Democratic
208. What type of an organization actively creates, acquires, and transfers knowledge within itself and is able to modify its behavior to reflect new knowledge?
A. Enlightened organization

B. Conceptualized organization

C. Learning organization

D. Modern organization

Answer: C. Learning organization
209. Monitoring organizational progress towards goal attainment is called:
A. Planning

B. Organizing

C. Leading

D. Controlling

Answer: D. Controlling
210. Organizational culture is similar to an individual’s:
A. Skills

B. Personality

C. Motivation

D. Ability

Answer: B. Personality

211. Who presented the Concept of Quality?
A. Henri Fayol

B. ProfHenryMintzberg

C. Frank & Lillian Gilbreth

D. ProfEdward Deming

Answer: D. ProfEdward Deming
212. In order to communicate, motivate and delegate a manager must
have:
A. Political skills

B. Conceptual skills

C. Technical skills

D. Interpersonal skills

Answer: D. Interpersonal skills
213. Which of the following is called output of a system?
A. Services

B. Material

C. Human

D. Information resource

Answer: B. Material
214. Who is credited for the theory of motivation based on the hierarchy
of needs?
A. Abraham Maslow

B. Douglas McGregor

C. Henri Fayol

D. Mary Parker Follett

Answer: A. Abraham Maslow
215. Which of the following is NOT an example of a constituency that
makes up the specific environment?
A. Customers

B. Socio-cultural

C. Suppliers

D. Competitors

Answer: B. Socio-cultural
216. The SWOT approach assesses an organization’s:
A. Speed, Wants, Order, Timing

B. Studies, Workflows, Opportunities, Trials

C. Strengths, Weaknesses, Opportunities, Threats

D. Signs, Worries, Objectives, Techniques

Answer: C. Strengths, Weaknesses, Opportunities, Threats

217. An office supply firm that has three departments based upon retail,
wholesale, and governmental customers is using which of the following types of departmentalization?
A. Functional

B. Product

C. Customer

D. Geographic

Answer: A. Functional
218. To determine the ___________, a manager must determine what is
relevant or important in resolving the problem
A. Geocentric behavior needed

B. Number of allowable alternatives

C. Weighting of decision criteria

D. Decision criteria

Answer: D. Decision criteria
219. A manager who strives to ensure the activities of the organization’s employees are supported and blend well with those of individuals outside the firm could be said to hold which of the following interpersonal role within the company?
A. Liaison

B. Disseminator

C. Figure head

D. Entrepreneur

Answer: C. Figure head
220. What would be the best description of plans that focus on the broad future of the organization and incorporate both external environmental demands and internal resources into managers’ actions?
A. Operational plans

B. Tactical plans

C. Strategic plans

D. Holistic plans

Answer: C. Strategic plans
221. Which of the following scientist is most closely associated with the
Hawthornestudies?
A. Adams

B. Mayo

C. Lawler

D. Barnard

Answer: B. Mayo
222. When objectives are not written down or rarely verbalized, and the planning is general and lacks continuity, which of the following types of planning is used?
A. Environmental planning

B. Economic planning

C. Informal planning

D. Formal planning

Answer: C. Informal planning

223. Which of the following is the power that rests on the leader’s ability
to punish or control?
A. Reward power

B. Coercive power

C. Expert power

D. Referent power

Answer: C. Expert power
224. Inspiring people to be high performer is called:
A. Controlling

B. Leading

C. Planning

D. Organizing

Answer: B. Leading
225. Which of the following theory is currently the most widely accepted when describing employee motivation?
A. Reinforcement

B. Three-need

C. Expectancy

D. Equity

Answer: B. Three-need

226. Activities such as taking visitors to dinner and attending ribbon cutting ceremonies come under which of the following management role?
A. Leader

B. Liaison

C. Figurehead

D. Negotiator

Answer: B. Liaison
227. LG and Sony electronics agreed to cooperate on developing new technologies Representatives from each firm meet regularly to coordinate this new venture Which of the following roles these mangers are playing?
A. Liaison

B. Leader

C. Disseminator

D. Spokesperson

Answer: A. Liaison
228. A skill or capability that enables an organization to conceive of and implement its strategies is its:
A. Strength

B. Weakness

C. Opportunity

D. Threat

Answer: A. Strength
229. The task environment of organizations consists of constituencies that have a direct impact on managers’ decisions and actions The main constituencies are made up of customers, suppliers, competitors, and ________
A. Legislators

B. Pressure groups

C. Employees

D. Lawyers

Answer: A. Legislators
230. Set of processes involved in creating or determining the strategies of the organization is called:
A. Strategy formulation

B. Strategy implementation

C. Strategy evaluation

D. Strategy imitation

Answer: A. Strategy formulation

231. Which of the following is a general statement or understanding that guide or channelize thinking in decision making?
A. Policy

B. Procedure

C. Rule

D. Project

Answer: A. Policy
232. Which of the following is a process that involves managers from all parts of the organization in the formulation of strategic goals?
A. Strategic management

B. Strategic positioning

C. Strategic planning

D. Strategic organizing

Answer: A. Strategic management
233. Maslow’s need hierarchy, a healthy work environment is an example
of what type of need?
A. Physiological

B. Esteem

C. Safety

D. Social

Answer: C. Safety
234. That would be the best description of plans that focus on the broad future of the organization and incorporate both external environmental demands and internal resources into managers’ actions?
A. Operational plans

B. Tactical plans

C. Strategic plans

D. Holistic plans

Answer: C. Strategic plans
235. Which of the following is NOT a key element of the Total Quality
Management approach?
A. Focus on the customer

B. Employee involvement

C. Continuous improvement

D. Focus on the supplier

Answer: D. Focus on the supplier

236. When call center managers spend much of their time monitoring customer calls and giving employees feedback about how to improve their dialogue with customers in the future, these managers are using which of the following skills?
A. Technical

B. Conceptual

C. Situational

D. Ethical

Answer: A. Technical
237. The process of selecting decision criteria is accomplished by:
A. Massaging the data that will support a given decision

B. Flipping a coin to produce a – chance of being right

C. Determining what is relevant in making the decision

D. Examining the difference in the opportunities available

Answer: B. Flipping a coin to produce a – chance of being right
238. Alternatives that an organization chooses from its operations across several industries and several markets is called:
A. Business-level strategy

B. Corporate-level strategy

C. Functional-level strategy

D. Market-level strategy

Answer: D. Market-level strategy
239. In the MBO system:
A. Objectives are determined by management

B. Goals are only reviewed at the time of completion

C. Goals are used as controls

D. Progress is periodically reviewed

Answer: A. Objectives are determined by management
240. Strategic plans cover a broader view of the organization and include the formulation of goals, whereas operational plans define ways to:
A. Maximize the organization’s profits

B. Achieve the goals

C. Minimize the number of employees

D. Provide the most efficient methods of production

Answer: B. Achieve the goals
241. The first step in the decision-making process is which of the
following?
A. Developing decision criteria

B. Allocating weights to the criteria

C. Analyzing alternatives

D. Identifying a problem

Answer: D. Identifying a problem

242. A skill or capability that enables an organization to conceive of and
implement its strategies is its:
A. Strength

B. Weakness

C. Opportunity

D. Threat

Answer: A. Strength
243. The management function that specifies goals to be achieved and deciding in advance the appropriate actions to achieve those goals is:
A. Leading

B. Controlling

C. Organizing

D. Planning

Answer: D. Planning
244. The plans which deal with fairly small set of activities are called:
A. Strategic plan

B. Tactical plan

C. Operational plan

D. Personal plan

Answer: D. Personal plan
245. Which of the following can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?
A. Strategy formulation

B. Strategy evaluation

C. Strategy implementation

D. Strategic management

Answer: D. Strategic management
246. Which of the following is NOT one of the situational factors thought to influence the relationship between leader behavior and subordinate motivation to perform in the path-goal theory?
A. Preferences of the leader

B. Subordinate locus of control

C. Characteristics of the work group

D. Task structure

Answer: D. Task structure
247. Social obligation is the obligation of a business to meet its:
A. Social and technological responsibilities

B. Economic and social responsibilities

C. Technological and economic responsibilities

D. Economic and legal responsibilities

Answer: D. Economic and legal responsibilities

248. All of the following are the examples of the actions that can be taken in strategy implementation stage EXCEPT:
A. Changing organization’s pricing strategy

B. Developing new employee benefits

C. Transferring managers among divisions

D. Taking corrective action when needed

Answer: A. Changing organization’s pricing strategy
249. The method by which strategies are operational zed or executed
within the organization is called:
A. Strategy implementation

B. Strategy evaluation

C. Strategy formulation

D. Strategy imitation

Answer: A. Strategy implementation
250. The idea that employees should also share the profit of organization
was given by:
A. Frederick Taylor

B. Robert Owen

C. Charles Babbage

D. W Edwards Deming

Answer: C. Charles Babbage

251. In some countries, such as Venezuela, titles, rank, and status carry
a lot of weight These countries have a large:
A. Power distance

B. Uncertainty avoidance

C. Short- versus long-term orientation

D. Individualism versus collectivism

Answer: A. Power distance
252. Which of the following is associated with the classical view of social responsibility?
A. Economist Robert Reich

B. Concern for social welfare

C. Stockholder financial return

D. Voluntary activities

Answer: A. Economist Robert Reich
253. Forecasting techniques fall into which of the following two
categories?
A. Fixed asset and human capital

B. Predictive and confirmatory

C. Quantitative and qualitative

D. Empirical and conceptual

Answer: C. Quantitative and qualitative
254. If all criteria in the decision making are equal, weighting the criteria ______________.
A. improves decision making when large numbers of criteria are involved

B. is not needed

C. produces excellent decisions

D. improves the criteria

Answer: B. is not needed
255. Decision making is (simplistically) typically described as which of
the following?
A. deciding what is correct

B. putting preferences on paper

C. choosing among alternatives

D. processing information to completion

Answer: C. choosing among alternatives

256. In Step 6 of the decision-making process, each alternative is evaluated by appraising it against the _____________.
A. subjective goals of the decision maker

B. criteria

C. assessed values

D. implementation strategy

Answer: B. criteria
257. According to the textbook, because managers can’t possibly analyze all information on all alternatives, managers ______________, rather than ______________.
A. maximize; satisfice

B. maximize; minimize

C. satisfice; minimize

D. satisfice; maximize

Answer: D. satisfice; maximize
258. Who coined the term ‘scientific management’?
A. Elton mayo

B. b) Henry fayol

C. c) F.W taylor

D. d) Chris argyris

Answer: C. c) F.W taylor
259. F.W Taylor’s important writing includes :
A. Shop management

B. Principles of scientific management

C. Both A & B

D. None of the above

Answer: C. Both A & B
260. Which of the following elements of scientific management was given by Taylor ?
A. Time & Motion study

B. Functional Foremanship

C. Standardisation

D. All of these

Answer: D. All of these

261. Control function cannot be performed without
A. Planning

B. Organising

C. Staffing

D. All of these

Answer: D. All of these
262. “ No Smoking in the Factory “ is an example of
A. Policy

B. Rule

C. Staffing

D. All of these

Answer: B. Rule
263. A Guideline that channelize decision making is called :
A. Policy

B. Rule

C. Staffing

D. All of these

Answer: A. Policy
264. Who propounded the Theory X and Theory Y ?
A. Mc Gregor

B. Mayo

C. Taylor

D. Chris Argyris

Answer: A. Mc Gregor
265. Grapevine is called :
A. Informal communication

B. Formal communication

C. Official created

D. All of these

Answer: A. Informal communication
266. What is essential for the management to get things done in the organization?
A. Monetary incentives

B. Delegation

C. MBO Techniques

D. All of these

Answer: B. Delegation

267. Which of the following principles of management was not given by Fayol ?
A. Unity of Direction

B. Subordination of individual interest to common interest

C. Stability of Tenure

D. Standardisation

Answer: D. Standardisation
268. Which of the following includes in the classical theory ?
A. Bureaucratic

B. Scientific Management

C. Functional & Administrative

D. All of these

Answer: D. All of these
269. Bureaucratic models were given by :
A. Max Weber

B. Henry Fayol

C. Taylor

D. Elton Mayo

Answer: A. Max Weber
270. Who gave 14 Principles of Management ?
A. Elton Mayo

B. F.W . Taylor

C. Max Weber

D. Henry Fayol

Answer: D. Henry Fayol
271. Role of staff in “ line and staff “ organization is
A. Advisory

B. Managerial

C. Superior

D. All of these

Answer: A. Advisory
272. The keyword “ POSDC” was given by :
A. Koontz & O’Donnell

B. Fredrick Herzberg

C. Chesner Barnard

D. All of these

Answer: A. Koontz & O’Donnell

273. ………………….. ., weakness , opportunities, threats are the long form of SWOT analysis.
A. Strength

B. Managerial

C. Control

D. Forecasting

Answer: A. Strength
274. ……………….. are assumptions about future.
A. Premises

B. Unity of direction

C. Scalar Chain

D. All of these

Answer: A. Premises
275. What does Maslow propounded about the five needs?
A. Profession

B. Hierarchy

C. Basic needs

D. All of these

Answer: B. Hierarchy

276. Name one of the factors that govern the span of management.
A. Profession

B. Type of work

C. Employees

D. All of these

Answer: B. Type of work
277. Communication is the art of transmitting …………………….
A. Information

B. Ideas

C. Attitudes

D. All of these

Answer: D. All of these
278. The communication process begins with …………….. who transmits the message.
A. Information

B. Sender

C. Attitudes

D. All of these

Answer: B. Sender
279. What are the movements which play an important role in conveying meaning without
words?
A. Body

B. Gestures

C. Attitudes

D. All of these

Answer: B. Gestures
280. A …………………….. communication establishes and builds lasting relationships between
people.
A. One way

B. Two way

C. Both A & B

D. All of these

Answer: B. Two way

281. …………………….. is defined as a group of person working together for a common purpose.
A. Group

B. Organisation

C. Both A &B

D. All of these

Answer: B. Organisation
282. Who developed the functional organization?
A. Michael E. Porter

B. Charles Babbage

C. Taylor

D. All of these

Answer: C. Taylor
283. Gang Boss is related to :
A. Working rule

B. Speed of different machines

C. Availability of tools and machines

D. All of these

Answer: C. Availability of tools and machines
284. Communication flow from lower level to upper level within an oeganisation:
A. Vertical communication

B. Downward communication

C. Upward communication

D. All of these

Answer: C. Upward communication
285. Single use plan means:
A. Programme

B. Budgeting and target

C. Project

D. All of these

Answer: D. All of these

286. Standing plan ( Repeated plan) means
A. Objectives

B. Policies & Proceedures

C. Strategy and methods

D. All of these

Answer: D. All of these
287. A ………………………… is general statement guide thinking and decision making and action in
organization.
A. Objectives

B. Policies

C. Strategy

D. All of these

Answer: B. Policies
288. The “ Functional Foremanship” was given by:
A. Michael E. Porter

B. Charles Babbage

C. Taylor

D. All of these

Answer: C. Taylor
289. What does decoding mean?
A. Message interpretation

B. Listening

C. Both A & B

D. A ll of these

Answer: C. Both A & B
290. The most effective way of communication is :
A. Written

B. Oral

C. Both A & B

D. All of these

Answer: A. Written
291. Frederic W. Taylor’s middle name is …………………….
A. Winslow

B. Mayo

C. Taylor

D. Chris Argyris

Answer: A. Winslow

292. Which need includes the basic human needs of food, clothing and shelter?
A. Physiological needs

B. Self – Actualisation

C. Both A & B

D. All of these

Answer: A. Physiological needs
293. A …………….. means a specific action to be taken or not to be taken with respect to situation
A. Objectives

B. Rule

C. Strategy

D. All of these

Answer: B. Rule
294. The ………….. is organization in which line organization make decision and staff personnel provide
support and advice.
A. Line authority

B. Functional organization

C. Line and staff organization

D. All of these

Answer: C. Line and staff organization
295. It consists of the message from superior to subordinate
A. Vertical communication

B. Downward communication

C. Diagonal communication

D. All of these

Answer: B. Downward communication
296. Communication methods or media types
A. Oral or verbal

B. Written

C. Non – Verbal

D. All of these

Answer: D. All of these
297. Which of the following is the level of management ?
A. Top level

B. Middle level

C. Lower level

D. All of these

Answer: D. All of these

298. …………………. Means influencing others to act towards the attainment of a goal.
A. Leadership

B. Directing

C. Staffing

D. All of these

Answer: A. Leadership
299. Manager who are responsible for the overall direction and operation of an organization.
A. Top level

B. Middle level

C. Lower level

D. All of these

Answer: A. Top level
300. The ability to understand , motivates and get along with other people is called……………..
A. Technical

B. Human

C. Conceptual

D. All of these

Answer: B. Human

301. …………………. Is the mental ability to coordinate and integrate the organization interest.
A. Technical

B. Human

C. Conceptual

D. All of these

Answer: C. Conceptual
302. The classical theory time period is :
A. 1900 ‐1930

B. 1930 ‐1950

C. 1950 ‐1980

D. None of these

Answer: A. 1900 ‐1930
303. Coordination between different department and person within the organization is called
…………………
A. Internal

B. External

C. Vertical

D. All of these

Answer: A. Internal
304. Coordination between an organization and its external environment is called ………………..
A. Internal

B. External

C. Vertical

D. All of these

Answer: B. External
305. In addition to place , labour and money which other internal environment factor influences
management?
A. Organising

B. Management

C. Control

D. Machines

Answer: D. Machines

306. Operations research analysts do not
A. Predict future operations

B. Build more than one model

C. Collect relevant data

D. Recommend decision and accept

Answer: A. Predict future operations
307. Decision variables are
A. Controllable

B. Uncontrollable

C. Parameters

D. None of the above

Answer: A. Controllable
308. A model is
A. An essence of reality

B. An approximation

C. An idealization’

D. All of the above

Answer: D. All of the above
309. A physical model is an example of
A. An iconic model

B. An analogue model

C. A verbal model

D. A mathematical model

Answer: A. An iconic model
310. Every mathematical model
A. Must be deterministic

B. Requires computer aid for solution.

C. Represents data in numerical form

D. All of the above

Answer: C. Represents data in numerical form

311. Operations research approach is
A. Multi disciplinary

B. Scientific

C. Intuitive

D. All of the above

Answer: A. Multi disciplinary
312. An optimization model
A. Mathematically provides best decision

B. Provides decision with limited context

C. Helps in evaluating various alternatives constantly

D. All of the above

Answer: D. All of the above
313. OR provides solution only if the elements are
A. Quantified

B. Qualified

C. Feasible

D. Optimal

Answer: A. Quantified
314. The name management science is preferred by
A. Americans

B. English

C. French

D. Latin

Answer: A. Americans
315. Operations research is applied
A. Military

B. Business

C. Administration’

D. All of the above

Answer: D. All of the above
316. The application of OR techniques involves ………… approach
A. Individual

B. Team

C. Critical

D. None of the above

Answer: B. Team

317. OR techniques helps to find ………..solution
A. Feasible

B. Non feasible

C. Optimal

D. Non optimal

Answer: C. Optimal
318. Modern scientific management research originated during ……
A. World war II

B. World war I

C. 1990

D. 1993

Answer: A. World war II
319. ………. helps management to evaluate alternative course of action for selecting the best course of action
A. Operations research

B. Quantitative technique

C. Management research

D. None of the above

Answer: A. Operations research
320. ………. Theory is an important operations research technique to analyze the queuing behaviour.
A. Waiting line

B. Net work

C. Decision

D. Simulation

Answer: A. Waiting line
321. ……….. is an important Operations research technique to be used for determining
optimal allocation of limited resources to meet the given objectives.
A. Waiting line theory

B. Net work analysis

C. Decision analysis

D. Linear programming

Answer: D. Linear programming
322. ………… model involves all forms of diagrams
A. iconic

B. mathematical

C. analogue

D. schematic

Answer: A. iconic

323. An organization chart is an example of
A. Iconic

B. Mathematical

C. Analogue

D. None of the above

Answer: C. Analogue
324. …. Is known as symbolic model
A. Iconic

B. Mathematical

C. Analogue

D. None of the above

Answer: B. Mathematical
325. A map indicates roads, highways, towns and the interrelationship is an ……model
A. Iconic

B. mathematical

C. analogue

D. none of the above

Answer: C. analogue

326. ………..models in which the input and output variables follow a probability distribution.
A. Iconic

B. . mathematical

C. . analogue

D. Deterministic model

Answer: D. Deterministic model
327. ………. Example of probabilistic model
A. Game theory

B. Charts

C. Graphs

D. All the above

Answer: A. Game theory
328. ………..is a method of analyzing the current movement of the same variable in an effort to predict the future movement of the same variable.
A. Goal programming

B. Markov analysis

C. Replacement theory

D. Queuing theory

Answer: B. Markov analysis
329. Constraints in an LP model represent
A. Limitations

B. Requirements

C. Balancing limitation

D. all of the above

Answer: D. all of the above
330. Linear programming is a
A. Constraint optimization technique

B. Technique for economic allocation of limited resources.

C. Mathematical technique

D. all of the above

Answer: D. all of the above

331. A constraint in an LP model restricts
A. Value of objective function

B. Value of decision variable

C. Use of available resource

D. all of the above

Answer: D. all of the above
332. The best use of linear programming technique is to find an optimal use of
A. Money

B. Man power

C. Machine

D. all of the above

Answer: D. all of the above
333. Which of the following as an assumption of an LP model
A. Divisibility

B. Proportionality

C. Additively

D. all of the above

Answer: D. all of the above
334. Most of the constraints in the linear programming problem are expressed as ……….
A. Equality

B. Inequality

C. Uncertain

D. all of the above

Answer: B. Inequality
335. The graphical method of LP problem uses
A. Objective function equation

B. Constraint equation

C. Linear equations

D. All the above

Answer: D. All the above

336. A feasible solution to a linear programming problem
A. Must satisfy all problem constraints simultaneously

B. Need not satisfy all constraints

C. Must be a corner point of the feasible region

D. Must optimize the value of the objective function

Answer: A. Must satisfy all problem constraints simultaneously
337. While plotting constraints on a graph paper, terminal points on both axes are connected by a straight line because
A. The resources are limited in supply

B. The objective function is a linear function

C. The constraints are linear equations or in equalities

D. all of the above

Answer: C. The constraints are linear equations or in equalities
338. Constraints in LP problem are called active if they
A. Represent optimal solution

B. At optimality do not consume all the available resources

C. Both of (a) and (b)

D. None of the above

Answer: A. Represent optimal solution
339. The solution space of a LP problem is unbounded due to
A. An incorrect formulation of the LP model

B. Objective function is unbounded

C. Neither (a) nor (b)

D. Both (a) and (b)

Answer: C. Neither (a) nor (b)
340. While solving LP problem graphically, the area bounded by the constraints is called
A. Feasible region

B. Infeasible region

C. Unbounded solution

D. None of the above

Answer: A. Feasible region
341. Which of the following is not a category of linear programming problems?
A. Resource allocation problem

B. Cost benefit trade off problem

C. Distribution network problem

D. All of the above are categories of linear programming problems.

Answer: D. All of the above are categories of linear programming problems.

342. A linear programming model does not contain which of the following components?
A. Data

B. Decisions

C. Constraints

D. A spread sheet

Answer: D. A spread sheet
343. Which of the following may not be in a linear programming formulation?
A. <=. B. >.

C. =.

D. All the above

Answer: B. >.
344. While solving an LP problem infeasibility may be removed by
A. Adding another constraint

B. Adding another variable

C. Removing a constraint

D. Removing a variable

Answer: C. Removing a constraint
345. Straight lines shown in a linear programming graph indicates
A. Objective function

B. Constraints

C. Points

D. All the above

Answer: B. Constraints
346. All negative constraints must be written as
A. Equality

B. Non equality

C. Greater than or equal to

D. Less than or equal to

Answer: C. Greater than or equal to
347. In linear programming problem if all constraints are less than or equal to, then the
feasible region is
A. Above lines

B. Below the lines

C. Unbounded

D. None of the above

Answer: B. Below the lines

348. ……… is a series of related activities which result in some product or services.
A. Network

B. transportation model

C. assignment

D. none of these

Answer: A. Network
349. Any activity which does not consume either any resource or time is called ………..activity.
A. Predecessor

B. Successor

C. Dummy

D. End

Answer: C. Dummy
350. An activity which must be completed before one or more other activities start is known as ……….activity.
A. Predecessor

B. Successor

C. Dummy

D. End

Answer: A. Predecessor

351. Activities that cannot be started until one or more of the other activities are completed, but immediately succeed them are called ……activities
A. Predecessor

B. Successor

C. Dummy

D. End

Answer: B. Successor
352. An event which represents the beginning of more than one activity is known as
………..event.
A. Merge

B. Net

C. Burst

D. None of the above

Answer: C. Burst
353. If two constraints do not intersect in the positive quadrant of the graph, then
A. The problem is infeasible

B. The solution is unbounded

C. One of the constraints is redundant

D. None of the above

Answer: D. None of the above
354. Constraint in LP problem are called active if they
A. Represent optimal solution

B. At optimality do not consume all the available resources

C. Both of (a) and (b)

D. None of the above

Answer: A. Represent optimal solution
355. Alternative solutions exists of an LP model when
A. One of the constraints is redundant.

B. Objective function equation is parallel to one of the constraints

C. Two constraints are parallel.

D. all of the above

Answer: B. Objective function equation is parallel to one of the constraints

356. While solving an LP problem, infeasibility may be removed by
A. Adding another constraint

B. Adding another variable

C. Removing a constraint

D. Removing a variable

Answer: C. Removing a constraint
357. ………is that sequence of activities which determines the total project time.
A. Net work

B. Critical path

C. Critical activities

D. None of the above

Answer: B. Critical path
358. Activities lying on the critical path are called………….
A. Net work

B. Critical path

C. Critical activities

D. None of the above

Answer: C. Critical activities
359. It ………. at which an activity can start.
A. EST

B. EFT

C. LST

D. LFT

Answer: A. EST
360. ………… is the earliest starting time plus activity time.
A. EST

B. EFT

C. LST

D. LFT

Answer: B. EFT

361. ………. is the latest time by which an activity can be started without delaying the
completion of the project.
A. EST

B. EFT

C. LST

D. LFT

Answer: C. LST
362. ……….is the latest time by which an activity can be finished without delaying the
completion of the project.
A. EST

B. EFT

C. LST

D. LFT

Answer: D. LFT
363. ……………is the duration by which an activity can be delayed without delaying the project
A. Slack

B. Total float

C. Free float

D. Independent float

Answer: B. Total float
364. ……… is the time by which the completion of an activity can be delayed beyond its
earliest finish time without affecting the earliest start time of a succeeding activity
A. Slack

B. Total float

C. Free float

D. Independent float

Answer: C. Free float
365. ……….is activity oriented.
A. CPM

B. PERT

C. LP

D. None of the above

Answer: A. CPM
366. ………. is event oriented.
A. CPM

B. PERT

C. LP

D. None of the above

Answer: B. PERT

367. PERT emphasis on ………..
A. Time

B. Activity

C. a) and b)

D. None of the above

Answer: A. Time
368. Full form of PERT is
A. Performance evaluation review technique

B. Programme Evaluation Review technique

C. Programme Evaluation Research Technique

D. None of these.

Answer: A. Performance evaluation review technique
369. …….. is a scheme or design of something intended or device.
A. Programme

B. Project

C. Network

D. Float

Answer: C. Network
370. An activity which must be completed before one or more other activities start is known as …………activity.
A. Dummy

B. Predecessor

C. Successor

D. None of these

Answer: B. Predecessor
371. The event is commonly represented by …… in network diagram
A. Nodes

B. Arrow

C. Triangle

D. None of these

Answer: A. Nodes
372. …….is the disconnection of an activity before the completion of activities in a project
network diagram.
A. Dangling

B. Looping

C. Dummy

D. None of the above

Answer: C. Dummy

373. …………. is an activity oriented diagram.
A. CPM

B. PERT

C. Histogram

D. None of the above

Answer: A. CPM
374. ………… is the duration by which an activity can be delayed without delaying the
project.
A. Total float

B. Slack

C. Earliest event time

D. None of these

Answer: A. Total float
375. ………is the shortest possible time in which an activity can be delayed without
delaying the project.
A. Pessimistic time estimate

B. Optimistic time estimate

C. Most likely time estimate

D. None of these

Answer: B. Optimistic time estimate

376. Which of the following is not a part of decision tree problem specification?
A. a list of alternatives

B. A list of possible state of nature

C. EVPI

D. Pay off associated with alternative/ state of nature combination.

Answer: C. EVPI
377. If a decision theory problem has 3 decision alternatives and 4 states of nature, the
number of payoffs in that problem will be
A. 3

B. 4

C. 12

D. 64

Answer: C. 12
378. In a decision theory problem under complete uncertainty, which one of the following approaches will not be possible?
A. Expected monetary value

B. Maxmin

C. Minimax

D. Hurwicz

Answer: A. Expected monetary value
379. For decision making under uncertainty, identify the decision rule that is appropriate for the optimist.
A. Laplace

B. Maximax

C. Minimax regret

D. Maxmin

Answer: B. Maximax
380. What decision-making condition must exist for the decision tree to be a valuable tool?
A. Certainty

B. Uncertainty

C. Risk

D. It does not matter, the tool is appropriate in all environments

Answer: C. Risk

381. Which of the following is (are) types of decision-making environments?
A. Decision making under uncertainty

B. Decision making under certainty

C. Decision making under risk

D. None of the above

Answer: B. Decision making under certainty
382. A good decision always implies that
A. Will obtain the best final results

B. Have used appropriate quantitative analysis.

C. Have considered all alternatives

D. Have followed a logical process.

Answer: D. Have followed a logical process.
383. All of the following are steps in the decision-making process EXCEPT
A. Define the problem

B. List alternatives

C. Identify the possible outcomes

D. Compute the posterior probabilities.

Answer: D. Compute the posterior probabilities.
384. The equally likely decision criteria is also known as
A. Bayes

B. Laplace

C. Minimax

D. Hurwicz

Answer: B. Laplace
385. Opportunity loss refers to
A. The expected value of a bad decision

B. The expected loss from a bad decision

C. The difference between actual pay off and the optimal pay off

D. The regret from not having made a decision

Answer: C. The difference between actual pay off and the optimal pay off

386. The criteria of expected monetary value is used for making decisions under
A. Certainty

B. Uncertainty

C. Risk

D. all of the above

Answer: D. all of the above
387. The maximax criteria is……..
A. Optimistic

B. Neutral

C. Pessimistic

D. Can be any one of the above

Answer: C. Pessimistic
388. Which of the following might be viewed as an optimistic decision criterion?
A. Hurwicz criterion

B. Maximin

C. Maximax

D. Minimax

Answer: C. Maximax
389. The minimum EOL will always result in the same decision as
A. Minimax

B. Maximin

C. Maximum EMV

D. Maximax

Answer: C. Maximum EMV
390. Decision theory is concerned with
A. Methods of arriving at an optimal decision

B. Selecting optimal decision in sequential manner

C. Analysis of information that is available

D. All of the above

Answer: D. All of the above
391. Which of the following criterion is not used for decision making under uncertainty?
A. Maximin

B. Maximax

C. Minimax

D. Minimize expected loss

Answer: D. Minimize expected loss

392. The minimum expected opportunity loss is
A. Equal to EVPI

B. Minimum regret

C. Equal to EMV

D. Both (a) and (b)

Answer: D. Both (a) and (b)
393. The expected value of perfect information is equal to
A. EPPI – Minimum EMV

B. EPPI + Maximum EMV

C. Maximum EOL

D. None of the above

Answer: A. EPPI – Minimum EMV
394. The value of the coefficient of optimism is needed while using the criterion of
A. Equally likely

B. Maximin

C. Realism

D. Maximin

Answer: C. Realism
395. While using Hurwicz criterion, the coefficient of realism
A. Represents the degree of optimism

B. Represents the degree of pessimism

C. Is the probability of state of nature

D. None of the above

Answer: A. Represents the degree of optimism
396. The decision making criteria that should be used to achieve maximum long term pay off is
A. EOL

B. EMV

C. Hurwicz

D. Maximax

Answer: B. EMV
397. Game theory models are classified by the
A. Number of players

B. Sum of all payoff

C. Number of strategies

D. All of the above

Answer: D. All of the above

398. The objective of network analysis is to
A. Minimize total project duration

B. Minimize total project cost

C. Minimize production delays, interruption and conflicts

D. All of the above

Answer: A. Minimize total project duration
399. The initial solution of a transportation problem can be obtained by applying any
known method. But the only condition is
A. The solution be optimal

B. The rim conditions are satisfied

C. The solution not be degenerate

D. All of the above

Answer: B. The rim conditions are satisfied
400. When total supply is equal to total demand in a transportation problem , the problem is said to be
A. Balanced

B. Unbalanced

C. Degenerate

D. None of the above

Answer: A. Balanced

401. Which one of the following statements is not correct?
A. Management is a goal-oriented process.

B. Management is a continuous process.

C. Management is a dynamic process.

D. Management is a rigid process.

Answer: D. Management is a rigid process.
402. Which one of the following is not an importance of management?
A. Integrating various interest groups

B. Developing society

C. Disciplining employees

D. Inculcating creativity

Answer: C. Disciplining employees
403. Management is not
A. an applied science.

B. a pure science.

C. an art.

D. an art and science both.

Answer: B. a pure science.
404. In which category does management fall?
A. Well-established profession

B. Semi-profession

C. Emerging profession

D. Marginal profession

Answer: C. Emerging profession
405. Coordination is
A. a management function.

B. the essence of management.

C. an objective of management.

D. a social objective.

Answer: B. the essence of management.

406. The element that aims at integrating group efforts to achieve group objectives is called ___.
A. Cooperation

B. Coordination

C. Management

D. Directing

Answer: B. Coordination
407. Managing Director is the position of ___ level of management in a large company.
A. Top

B. Middle

C. Lower

D. Middle and Lower

Answer: A. Top
408. Management is multidimensional because it has ___ dimension(s).
A. One

B. Two

C. Three

D. Four

Answer: C. Three
409. Management is a ___ directed process as it aims at achieving specified goals.
A. Continuously

B. Future

C. Goal

D. Deliberately

Answer: C. Goal
410. ___ is a systematised body of knowledge that explains certain general truths or operation of general
laws.
A. Science

B. Art

C. Profession

D. Art and Profession both

Answer: A. Science

411. Identify the feature of co-ordination being highlighted in the given statement: “Coordination is not a one
time function, it begins at the planning stage and continue till controlling.”
A. Coordination ensures unity of action

B. Coordination is an all pervasive function

C. Coordination is a continuous process

D. Coordination is a deliberate function

Answer: C. Coordination is a continuous process
412. Co-ordination is considered to be the essence of management because
A. It is a common thread that runs through all the activities within the organisation

B. It is implicit and inherent in all functions of the organisation

C. It is a force that binds all the functions of management

D. All of the above

Answer: D. All of the above
413. This function of Management related to placing the right person at the right job is
A. Organising

B. Staffing

C. Planning

D. Controlling

Answer: B. Staffing
414. Organising as a function of management involves deciding
A. What activities and resources are required

B. Who will do a particular task

C. Where will it be done

D. All of the above

Answer: D. All of the above
415. The main task of this level of management is to determine the overall organisational objectives and
strategies for their realisation.
A. Operational management

B. Middle level management

C. First line managers

D. Top level management

Answer: D. Top level management
416. Which of the following statements is not true for lower level management?
A. Analyse the business environment and its implications for the survival of the business.

B. Ensure the quality of the output

C. They strive to reduce the wastage of resources

D. They ensure that the safety standards are maintained within the organisation.

Answer: A. Analyse the business environment and its implications for the survival of the business.

417. Which of the following is a function of top level management?
A. Ensuring quality of output

B. Assigning necessary duties and responsibilities to their departments

C. Taking responsibility for all the activities of the business and its impact on the society

D. Ensuring that the safety standards are maintained within the organisation.

Answer: D. Ensuring that the safety standards are maintained within the organisation.
418. Which of the following is not a designation related to middle level management?
A. Operations Head

B. Sales Manager

C. Chief Operating Officer

D. Divisional Manager

Answer: C. Chief Operating Officer
419. “Management principles can be applied to all types of activities.”
A. True

B. False

C. all

D. none

Answer: A. True
420. “Coordination is required at all levels of management in all management functions.”
A. True

B. False

C. all

D. none

Answer: A. True
421. “Management involves the decisions by a manager and it is not a group activity.”
A. True

B. False

C. all

D. none

Answer: B. False
422. Top management level is responsible for implementing plans and strategies of the organisation.
A. True

B. False

C. all

D. none

Answer: B. False

423. Management is essential for the organisations which are
A. Non-profit organisations

B. Service organisations

C. Social organisations

D. All of the above

Answer: D. All of the above
424. People in the organisations carry out diverse tasks with the aim to achieve.
A. Different objectives

B. Common objectives

C. Both of the above

D. None of the above

Answer: B. Common objectives
425. Successful management ensures that
A. Goals are achieved with least cost

B. Timely achievement of goals

C. Both of the above

D. None of the above

Answer: C. Both of the above

426. Efficiency is concerned with
A. Doing the right thing

B. Doing things right

C. Achieving end results

D. None of the above

Answer: B. Doing things right
427. Effectiveness relates to
A. Doing the right task

B. Completing activities

C. Achieving goals

D. All of the above

Answer: D. All of the above
428. Management is said to be poor if it is
A. Efficient but ineffective

B. Effective but inefficient

C. Both inefficient and ineffective

D. All of the above

Answer: C. Both inefficient and ineffective
429. Which of the following is not a function of management?
A. Management is all pervasive

B. Management is multi-dimensional

C. Identification of threats & warnings

D. Location of business

Answer: C. Identification of threats & warnings
430. Name two broad categories of business activities:-
A. Trade & commerce

B. Trade & Industry

C. Industry & commerce

D. None of these

Answer: C. Industry & commerce

431. Which one of the following is not an economic objective of the business:-
A. Social environment

B. Survival

C. Profit

D. Growth

Answer: A. Social environment
432. Earning of a profit is considered to be subsidiary objective of the business:-
A. True

B. False

C. all

D. none

Answer: B. False
433. Which of the following management functions are closely related?
A. planning and organizing

B. staffing and control

C. planning and control

D. planning and staffing

Answer: C. planning and control
434. The last function in the sequence, which culminates in the attainment of organization objectives, is:
A. organizing

B. coordinating

C. controlling

D. planning

Answer: C. controlling
435. In terms of the sequential relationship, the first function requiring managerial attention is:
A. planning

B. coordinates

C. directing

D. controlling

Answer: A. planning

436. Main functions of administrative management are:
A. planning, organizing ,staffing, directing and controlling

B. planning ,organizing, directing and controlling

C. planning ,organizing, staffing and directing

D. planning,organizing,controlling and representation

Answer: B. planning ,organizing, directing and controlling
437. Control function of management cannot be performed without:
A. planning

B. organizing

C. staffing

D. motivation

Answer: A. planning
438. Which level of management is responsible for establishing a vision for the organization, developing
broad plans and strategies, and directing subordinate managers?
A. first level managers

B. middle managers

C. executive managers

D. second level managers

Answer: C. executive managers
439. Which level of management is responsible for implementing programs that are intended to carry out the
broader objectives of an organization set by executives?
A. supervisory managers

B. middle managers

C. first level managers

D. chief financial managers

Answer: B. middle managers
440. Which of the following characterize a manager as being efficient?
A. They use a minimum amount of resources for the amount of outputs produced.

B. The devote a large amount of time to planning

C. They achieve their goals.

D. They interview, select, and train people who are most suitable to fill open jobs.

Answer: D. They interview, select, and train people who are most suitable to fill open jobs.
441. Which of the following characterize a manager as being effective?
A. They use a minimum amount of resources for the amount of outputs produced.

B. They devote a large amount of time to planning.

C. They achieve their goals.

D. They interview, select, and train people who are most suitable to fill open jobs.

Answer: C. They achieve their goals.

442. Which term best describes the process of obtaining, deploying, and utilizing a variety of essential
resources to contribute to an organization’s success?
A. planning

B. organizing

C. staffing

D. management

Answer: D. management
443. Find the odd one out
A. board of directors

B. chief executive

C. foremen

D. shareholders

Answer: C. foremen
444. Management is a —–Activity.
A. single

B. group

C. both group and single

D. None

Answer: B. group
Evolution of Management Thoughts
445. Under mechanism of scientific management, scientific task setting includes:
A. Time study

B. Motion study

C. Method study

D. All of the above

Answer: D. All of the above
446. Fedrick Winslow Taylor’s Mechanism of Scientific Management includes
A. Scientific task setting

B. Planning the task

C. Standardization of tools and equipments

D. All of the above

Answer: D. All of the above
447. Frederick Winslow Taylor is best known for the introduction of which approach to job design?
A. Behavioural approach

B. Ergonomics

C. Scientific management

D. Division of labour

Answer: C. Scientific management
448. Scientific management is comprised of which of the following two elements?
A. Technology assessment and environmental design

B. Method study and work measurement

C. Method study and job design

D. Work measurement and job design

Answer: B. Method study and work measurement
449. Who was the first to formalise the concept of the division of labour?
A. Edward Demming, 1950

B. Adam Smith, 1776

C. Fredrick Taylor, 1911

D. Jay Forester, 1963

Answer: B. Adam Smith, 1776

450. Henry Fayol was a
A. Social scientists

B. Mining engineer

C. Accountant

D. Production engineer

Answer: B. Mining engineer

451. Which of the following statement best described the principle of ‘Division of work’?
A. work should be divided into small tasks

B. labour should be divided

C. resource should be divided among jobs

D. it leads to specialisation

Answer: B. labour should be divided
452. Which of the following is Not a principle of management given by Taylor?
A. Science, not rule of Thumb

B. Functional foremanship

C. Maximum ,not restricted output

D. Harmony not discord

Answer: D. Harmony not discord
453. Management should find ‘ One best way ‘ to perform a task. Which technique of scientific management
is defined in this sentence?
A. Time study

B. Motion study

C. Fatigue study

D. Method study

Answer: D. Method study
454. Who is known as ‘the Father of Modern Theory of Management’?
A. Harold Koontz.

B. Henry Fayol

C. F.W. Taylor

D. Max Weber

Answer: B. Henry Fayol
455. The main aim of Taylor was to……………..
A. improve labour relations

B. improve productivity

C. To attempt a general theory of management

D. None of these

Answer: B. improve productivity

456. Method study is ………………
A. preliminary survey of production Process

B. study of the movement of a work

C. study of operational efficiency

D. All of the above

Answer: A. preliminary survey of production Process
457. Henry fayol is well known………..
A. As the father of modern management

B. for formulating general principles of management

C. for promoting trade unionism

D. None of these

Answer: A. As the father of modern management
458. Unity of command implies
A. A subordinate should receive orders from all the superiors

B. individuals must sacrifice in the larger interest

C. be accountable to one and only one superior

D. None of these

Answer: C. be accountable to one and only one superior
459. Purpose of time study is ………..
A. to remove wastage of time

B. to give timely assistance

C. to determine fair days work

D. watching time

Answer: C. to determine fair days work
460. The scientific technique of task setting is known as ………………….
A. work study

B. motion study

C. time study

D. method study

Answer: C. time study

461. Management by Objectives concept was developed by ——-.
A. Peter.F.Drucker

B. Fayol

C. Chester Bernard

D. None

Answer: A. Peter.F.Drucker
462. MBO offers the basis for assessing the —————–.
A. Techniques

B. Performance

C. Authority

D. Subject

Answer: B. Performance
463. The process of MBO starts with —–.
A. setting up of obligation

B. Fetron plan

C. Review

D. All

Answer: A. setting up of obligation
464. Principles of management are not
A. behavioural.

B. absolute.

C. universal.

D. flexible.

Answer: B. absolute.
465. Principles of management provide
A. readymade solutions to problems.

B. general guidelines.

C. methods and procedures.

D. rules and regulations.

Answer: B. general guidelines.
466. Management principles differ from pure science principles because management principles are
A. vague.

B. situation-bound.

C. rig

Answer: B. situation-bound.

467. 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: D. optimum utilisation of resources.
468. 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: A. Functional foremanship
469. 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: B. Method Study
470. Unity of command is related to
A. superiors and subordinates.

B. management and workers.

C. planned actions.

D. cooperation among employees.

Answer: A. superiors and subordinates.
471. Gang plank is related to
A. communication.

B. motivation.

C. supervision of workers.

D. incentives to workers.

Answer: A. communication.
472. Management principles are flexible whereas ______________ principles are rigid.
A. Pure Science

B. Employment

C. Scientific Management

D. Art

Answer: A. Pure Science

473. ___________ denotes concentration of authority at the top level.
A. Decentralisation

B. Centralisation

C. Coordination

D. Delegation

Answer: B. Centralisation
474. __________ 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: A. Functional foremanship
475. _________ 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: D. Discipline

476. _________ 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: C. Order
477. __________ means one plan, one boss.
A. Unity of direction

B. Unity of command

C. Centralisation

D. Gang Plank

Answer: A. Unity of direction
478. __________ involves harmony and team spirit among employees.
A. Discipline

B. Esprit de corps

C. Order

D. Standardisation

Answer: B. Esprit de corps
479. “Unity of command means one employee getting orders and instructions from one supervisor”.
A. True

B. False

C. all

D. none

Answer: A. True
480. Time study involves analysing movements involved in performing an activity.
A. True

B. False

C. all

D. none

Answer: B. False

481. Scalar chain involves direct communication between two employees at horizontal level.
A. True

B. False

C. all

D. none

Answer: B. False
482. Discipline principle of management leads to development of team spirit.
A. True

B. False

C. all

D. none

Answer: B. False
483. The principals of management are significant because of
A. increase in efficiency

B. Initiative

C. optimum utilisation of resources

D. Adaptation of changing technology

Answer: D. Adaptation of changing technology
484. Observe the following management principles and pick the odd one out. Justify your answer.
A. unity of command

B. unity of direction

C. maximum output

D. equity

Answer: C. maximum output
485. Which scholar’s definition on management is ” Management is the art of getting things done through and
with people in formally organised groups”?
A. Harold Koontz

B. J.N. Schulze

C. S. George

D. Henry Fayol

Answer: A. Harold Koontz

486. Which of the following is not a Management Principle ?
A. Order

B. Discipline

C. Equity

D. Cooperation

Answer: D. Cooperation
487. The term hierarchy implies………
A. departmentalisation

B. a definite ranking order

C. specialisation

D. None of these

Answer: B. a definite ranking order
488. Scientific analysis of work under scientific management requires……
A. time study

B. motion study

C. Both a & b

D. work study

Answer: C. Both a & b
489. Management by objective is
A. goal oriented

B. work oriented

C. none of the above

D. all

Answer: A. goal oriented
490. Which scholar introduced the functional type of organisation?
A. F.W. Taylor

B. Chester Bernard

C. Allen

D. Max Weber

Answer: A. F.W. Taylor
491. _________ is known as the founder of Human Relation School.
A. Henry Fayol

B. Elton Mayo

C. Peter Drucker

D. F.W. Taylor

Answer: B. Elton Mayo

492. ___________ Principle of Management is concerned with promoting team spirit.
A. Equity

B. Scaler

C. Unity of Command

D. Espirit de Crops

Answer: D. Espirit de Crops
Major Managerial Functions
493. Pervasiveness of planning indicates that planning
A. is a top management function.

B. extends throughout the organisation.

C. is a future-oriented activity.

D. is the first element of management process.

Answer: B. extends throughout the organisation.
494. Which one of the following is an importance of planning?
A. Reducing uncertainty

B. Identifying alternatives critically

C. Developing leadership

D. Selecting the most appropriate plan

Answer: A. Reducing uncertainty
495. Which one of the following is not a limitation of planning?
A. Dynamic environment

B. Costly process

C. Rigidity

D. Top management approach

Answer: D. Top management approach
496. Which one of the following is a step of planning?
A. Analysis of organisation structure

B. Analysis of environment

C. Analysis of employee behaviour

D. Analysis of employee morale

Answer: B. Analysis of environment
497. The basic role of strategy is to provide
A. setting procedures.

B. direction for action.

C. direction for motivation.

D. direction for control.

Answer: B. direction for action.

498. Which one of the following plans prescribes chronological steps for performing activities?
A. Procedure

B. Rule

C. Policy

D. Method

Answer: A. Procedure
499. Which one of the following is a single-use plan?
A. Strategy

B. Rule

C. Budget

D. Method

Answer: C. Budget
500. Organising process includes one of the following:
A. Grouping of activities

B. Prescribing disciplinary action

C. Determining objectives

D. Prescribing work schedule

Answer: A. Grouping of activities

501. 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: B. Performance appraisal
502. Organisation structure establishes relationships between
A. organisation and environment.

B. people, work and resources.

C. organisation and society.

D. suppliers and customers.

Answer: B. people, work and resources.
503. 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: D. Easier employee learning
504. Divisional structure leads to conflict in
A. resource allocation.

B. marketing management.

C. motivation.

D. planning process.

Answer: A. resource allocation.
505. In which respect does formal organisation differ from informal organisation?
A. Production process

B. Structuring

C. Financial procedure

D. Purchasing

Answer: B. Structuring

506. Which one of the following does not follow scalar chain?
A. Informal organisation

B. Functional structure

C. Formal organisation

D. Divisional structure

Answer: A. Informal organisation
507. Degree of decentralisation indicates
A. degree of authority delegation.

B. degree of responsibility.

C. degree of power delegation.

D. degree of accountability.

Answer: A. degree of authority delegation.
508. In staffing function, which one of the following groups of managers is involved?
A. Only top managers

B. Only human resource managers

C. Only middle managers

D. All managers

Answer: D. All managers
509. Which one of the following is not an importance of staffing?
A. Suitable division of work among employees

B. Developing skills in employees

C. Employee satisfaction

D. Efficient use of human resources

Answer: A. Suitable division of work among employees
510. In staffing function, which combination of activities in sequential order is correct?
A. Recruitment, selection, training, placement

B. Selection, training, recruitment, placement

C. Recruitment, selection, placement, training

D. Recruitment, training, selection, placement

Answer: C. Recruitment, selection, placement, training

511. Which one of the following sources is most relevant to recruiting managerial personnel?
A. Direct recruitment

B. Employment exchange

C. Advertisement

D. Casual callers

Answer: C. Advertisement
512. Which one of the following is an internal source of recruitment?
A. Transfer

B. Employee recommendations

C. Campus recruitment

D. Personal contacts

Answer: A. Transfer
513. Which type of learning is management development concerned with?
A. Specific job skill development

B. Multi-skill development

C. Manual skill development

D. Inventory development

Answer: B. Multi-skill development
514. For which group of persons is vestibule training relevant?
A. Operatives

B. Top management

C. Middle management

D. Supervisory management

Answer: A. Operatives
515. Which one of the following is an element of directing?
A. Delegating authority

B. Designing organisation structure

C. Communication

D. Designing control system

Answer: C. Communication
516. Motivation is not
A. a complex process.

B. related to satisfaction.

C. an easy process.

D. a goal-directed behaviour.

Answer: C. an easy process.

517. Need hierarchy theory of motivation has been given by
A. Maslow.

B. Fayol.

C. Taylor.

D. Koontz.

Answer: A. Maslow.
518. Which one of the following is not a financial incentive?
A. Bonus

B. Provident Fund

C. Co-partnership

D. Challenging job

Answer: D. Challenging job
519. Which one of the following is a non-financial incentive?
A. Recognition

B. Perquisite

C. Retirement benefit

D. Stock option

Answer: A. Recognition
520. Leadership is based on a superior’s
A. authority.

B. responsibility.

C. accountability.

D. persuasive communication.

Answer: D. persuasive communication.
521. Encoding is related to
A. converting message into symbols.

B. converting symbols into message.

C. transmitting message.

D. receiving symbols.

Answer: A. converting message into symbols.
522. Grapevine is a form of
A. formal communication.

B. channel of communication.

C. informal communication.

D. barrier to communication.

Answer: C. informal communication.

523. Which one of the following is a semantic barrier?
A. Organisational policy

B. Lack of attention

C. Technical jargon

D. Status

Answer: C. Technical jargon
524. Which one of the following is not a feature of controlling?
A. Continuous process

B. Action-oriented

C. Keeping employees busy

D. Pervasive function

Answer: C. Keeping employees busy
525. Which one of the following is not an importance of controlling?
A. Better coordination

B. Better use of resources

C. Better planning

D. Better grievance handling

Answer: D. Better grievance handling

526. Which one of the following is a step of controlling?
A. Assessing personnel required

B. Taking corrective action

C. Assessing environment

D. Taking disciplinary action

Answer: B. Taking corrective action
527. ___________ is the process of ensuring that actual results are in accordance with planned results.
A. Controlling

B. Coordinating

C. Planning

D. Directing

Answer: A. Controlling
528. _________ is the focus point for a manager while controlling, as controlling at every step is not possible.
A. Controlling

B. Coordinating

C. Critical point control

D. Both a and b

Answer: C. Critical point control
529. Controlling is ________.
A. Forward looking

B. Backward looking

C. Continous process

D. All of these

Answer: D. All of these
530. Decision-making is the case of __________.
A. Planning

B. Organising

C. Staffing

D. Directing

Answer: A. Planning

531. __________ is a statement of expected results in numerical terms.
A. Forecast

B. Budget

C. Plan

D. Estimate

Answer: B. Budget
532. __________ is a feature of planning also referred to as primacy of planning.
A. Pervasive

B. Primary function of management

C. Continuous

D. Integrating

Answer: B. Primary function of management
533. __________ is a comprehensive plan for achieving its objectives.
A. Strategy

B. Method

C. Rule

D. Policy

Answer: A. Strategy
534. __________ are relevant to recurring activities.
A. Single-use plans

B. Standing plans

C. Objectives

D. Programmes

Answer: B. Standing plans
535. ___________ involves giving authority and responsibility to subordinates.
A. Division of work

B. Decentralisation

C. Delegation

D. Centralisation

Answer: C. Delegation

536. __________ is the process of grouting similar activities together and creating departments.
A. Division of work

B. Departmentalisation

C. Delegation

D. Centralisation

Answer: B. Departmentalisation
537. _________ is the right to command.
A. Authority

B. Responsibility

C. Accountability

D. Both a and b

Answer: A. Authority
538. ____________ is a process of learning and growth.
A. Training

B. Development

C. Recruitment

D. Both a and b

Answer: B. Development
539. ___________ leads to optimum use of resources.
A. Recruitment

B. Staffing

C. Development

D. Training

Answer: B. Staffing
540. __________ is the “On the Job Training” method used to train electricians.
A. Web publishing

B. Job rotation

C. Coaching

D. Apprenticeship

Answer: D. Apprenticeship
541. Directing flows in ____________ direction.
A. Upward

B. Downward

C. Diagonal

D. Both a and b

Answer: B. Downward

542. ____________ is the process of exchanging information and understanding between two or more persons.
A. Directing

B. Leadership

C. Communication

D. Motivation

Answer: C. Communication
Recent Trends in Management
543. What is the full form of TQM?
A. Total quality measurement

B. Total quantity management

C. Typical quality management

D. Total quality management

Answer: D. Total quality management
544. Which among the following is not a technique of TQM?
A. Re-engineering

B. Quality measurement

C. Bench marking

D. Empowerment

Answer: B. Quality measurement
545. According to Kurt Lewin, which of the following is not a stage in the change process?
A. Unfreezing

B. Changing

C. Refreezing

D. Restraining

Answer: D. Restraining
546. A company that decides to decentralize its sales procedures is managing what change category?
A. Technology

B. People

C. Competitors

D. Structure

Answer: D. Structure
547. Which of the following statements is true
A. In small quantities, stress is good

B. Too much stress is harmful

C. All stress is bad

D. Only a & b are right

Answer: D. Only a & b are right

548. Outsourcing is
A. Exporting

B. Importing

C. A firm having someone else do part of what it previously did itself.

D. Building a factory in another country to produce for that country’s market.

Answer: C. A firm having someone else do part of what it previously did itself.
549. Offshoring is
A. Substituting foreign for domestic labor.

B. Subcontracting a part of production to another firm.

C. Exporting

D. Importing

Answer: A. Substituting foreign for domestic labor.
550. Here, parties involved in the electronic transactions are from within a given business firm, hence, the
name is ________.
A. Intra-C Commerce

B. Intra-D Commerce

C. Intra-B Commerce

D. Intra-A Commerce

Answer: C. Intra-B Commerce

551. Both Sellers and buyers are business firms, under ___type of e-commere transaction.
A. B2B Commerce

B. C2B Commerce

C. B2C Commerce

D. C2C Commerce

Answer: A. B2B Commerce
552. Which method is very popular for making online transactions?
A. Credit Card

B. All of these

C. Net banking

D. Debit Card

Answer: B. All of these
553. ____________ refers to contracting out some of its activities to a third party which were earlier
performed by the organisation.
A. BPO

B. E-Commerce

C. Outsourcing

D. E-Banking

Answer: C. Outsourcing
554. Under what method payment is made at the time of physical delivery of goods.
A. Cash on delivery

B. Debit card payment

C. Credit card payment

D. Prepaid amount

Answer: A. Cash on delivery
555. It is not an application of e-business.
A. Contract R&D

B. Online trading

C. Online procurement

D. Online bidding

Answer: A. Contract R&D

556. The payment mechanism typical to e-business
A. Credit and Debit Cards

B. Cash on Delivery (CoD)

C. Cheques

D. e-Cash

Answer: A. Credit and Debit Cards
557. e-commerce does not include
A. A business?s interactions with its customers

B. Interactions among the various departments within the business

C. A business?s interactions with its suppliers

D. Interactions among the geographically dispersed units of the business

Answer: B. Interactions among the various departments within the business
558. ___transactions have business firms at one end and its customers on the other end.
A. C2B Commerce

B. B2C Commerce

C. B2B Commerce

D. C2C Commerce

Answer: B. B2C Commerce
559. India is the preferred destination for BPO because of ____________.
A. Tax Free Zone for BPOs

B. Cheap People

C. Cheap Manpower

D. Poor conditions

Answer: C. Cheap Manpower
560. Out of e-commerce and e-business, which is a broader term?
A. None of these

B. both e-business and e-commerce are same thing

C. e-commerce

D. e-business

Answer: D. e-business

561. A Call Centre handles
A. Both customer facing and back-end business

B. Both voice based and non-voice based business

C. Only out-bound voice based business

D. Only in bound voice based business

Answer: A. Both customer facing and back-end business
562. Outsourcing
A. Includes off shoring

B. Restricts only to the contracting out of Information Technology Enabled Services (ITES)

C. Restricts only to the contracting out of non-core business processes

D. Includes contracting out of manufacturing and R&D as well as service processes both core and noncore but restricts only to domestic territory

Answer: A. Includes off shoring
563. ______________ is not a process tools for TQM systems.
A. Process flow analysis

B. Histograms

C. Plier

D. Control charts

Answer: C. Plier
564. The process mapping is a ______ diagram.
A. Data flow

B. Work flow

C. Circular

D. Audit

Answer: B. Work flow
565. Total Quality Management (TQM) focuses on
A. Employee

B. Customer

C. Both a and b

D. None of the above

Answer: C. Both a and b
566. Which of the following is responsible for quality objective?
A. Top level Management

B. Middle level Management

C. Frontline Management

D. All of the above

Answer: A. Top level Management

567. The following is (are) the machine down time.
A. Waste

B. No material

C. Breakdown

D. All of the above

Answer: D. All of the above
568. TQM & ISO both focuses on
A. Customer

B. Employee

C. Supplier

D. All of the above

Answer: A. Customer
569. While setting Quality objective, ________ to be considered.
A. Material Quality

B. Customer need

C. Market demand

D. All of the above

Answer: B. Customer need
570. _______ helps organization reduce employee turnover and absenteeism.
A. Job design

B. Training & development

C. Wage revision

D. All of the above

Answer: B. Training & development
571. While setting Quality objective, ________ to be considered.
A. Customer need

B. Organizational need

C. Supplier need

D. Worker need

Answer: A. Customer need
572. Customers are primarily concerned with ______________.
A. Communication, courtesy, and credibility of the sales person

B. Competence, courtesy, and security of the sales person

C. Competence, responsiveness, and reliability of the sales person

D. Communication, responsiveness, and cleverness of the sales person

Answer: A. Communication, courtesy, and credibility of the sales person

573. “Quality is defined by the customer” is
A. An unrealistic definition of quality

B. A user-based definition of quality

C. A manufacturing-based definition of quality

D. A product-based definition of quality

Answer: B. A user-based definition of quality
574. What is quality assurance?
A. Quality assurance deals with activities which prove that products and services meet the required quality standard

B. Quality assurance deals with activities which aim at customers satisfaction

C. Quality assurance deals with controlling the quality of products by inspection

D. All of the above

Answer: A. Quality assurance deals with activities which prove that products and services meet the required quality standard
575. Which quality management program is related to the maintenance of plants and equipments?
A. Environmental management systems

B. Fault tree analysis

C. Failure mode effect analysis

D. Total productive maintenance

Answer: D. Total productive maintenance

576. The aim of Just-In-Time manufacturing principle is to eliminate
A. time wastage

B. labour wastage

C. cost of excessive inventory

D. All of the above

Answer: D. All of the above
577. All of the following costs are likely to decrease as a result of better quality except ______________.
A. customer dissatisfaction costs

B. Inspection costs

C. Maintenance costs

D. Warranty and service costs

Answer: C. Maintenance costs
578. Which of the following ratio is to “estimate the value added by given knowledge assets regardless of
where they are located”?
A. Return-on-equity

B. Return on investment

C. Return-on-knowledge

D. None of the given options

Answer: C. Return-on-knowledge
579. Knowledge stored in the form of manuals and formalized policies of the company indicates which of the
following characteristics of the knowledge?
A. Expandable

B. Compressible

C. Diffusible

D. Shareable

Answer: A. Expandable
580. What is the average life expectancy of most of the firms?
A. Twenty years

B. Fifteen years

C. Thirty years

D. None of the given

Answer: A. Twenty years

581. People knowledge includes which of the following?
A. Insights

B. Intuitions

C. Relational information

D. All of the above

Answer: D. All of the above
582. Grouping ideas or details that are stored and recalled together as a unit is an example of which of the
following?
A. Inferencing

B. Compilation

C. Chunking

D. Expertise

Answer: C. Chunking
583. Which of the following knowledge can be articulated, codified, and stored in certain media?
A. Explicit knowledge

B. Tacit knowledge

C. Procedural knowledge

D. Declarative knowledge

Answer: A. Explicit knowledge
584. The normative intervention specifies a particular way to manage an organization is known as
__________.
A. Inter-group relations

B. Large group

C. Small group

D. Grid organization development

Answer: D. Grid organization development
585. Which of the following year James Watt invented the steam engine in industrial age?
A. 1762

B. 1763

C. 1764

D. 1765

Answer: B. 1763

586. Economy driven by information and communication technologies and knowledge workers prevails
during__________.
A. First economic wave

B. Second economic wave

C. Third economic wave

D. None of the given options

Answer: C. Third economic wave
587. Stress management is about learning
A. How to avoid the pressures of life

B. How to develop skills that would enhance our body’s adjustment when we are subjected to the pressures of life

C. Both ‘a’ & ‘b’ are true

D. None of the above

Answer: B. How to develop skills that would enhance our body’s adjustment when we are subjected to the pressures of life
588. Which of the following statements is true about stress management?
A. Stress management is learning about the connection between mind and body

B. Stress management helps us control our health in a positive sense

C. Stress management teaches us to avoid all kinds of stress

D. Only ‘a’ & ‘b’ are right

Answer: D. Only ‘a’ & ‘b’ are right

589. ___________ creates a feeling of fear and threat amongst individuals and employees.
A. Crisis

B. Stress

C. Disaster

D. None of these

Answer: A. Crisis

590. ____________ is an inevitable factor for achieving economic growth.
A. Stress

B. TQM

C. Change

D. None of these

Answer: C. Change

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