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110+ Fundamentals of Management Solved MCQs

These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Cost Accounting .

1.

The concept of ‘Management by Objectives’ was introduced by

A. Frederick Herzberg.
B. F.W. Taylor
C. Elton Mayo
D. Peter F. Drucker
Answer» D. Peter F. Drucker
2.

Scalar Chain denotes

A. a Production Process
B. an Appraisal Process
C. Span of Management.
D. authority from the highest to the lowest ranks.
Answer» D. authority from the highest to the lowest ranks.
3.

Which one of the following examples is not included in the intangible premises of planning.

A. Public Relations
B. Employee Morale
C. Labour Hours
D. Competitive Strength
Answer» C. Labour Hours
4.

Which one of the following elements is odd with Weber’s Six Major Principles?

A. Hierarchical Structure
B. Unity of Command
C. “In-focused” mission
D. Technical Qualifications.
Answer» B. Unity of Command
5.

Decisions which are repetitive and can be established well in advance to solve the day-today problems in an organization are known as

A. Programmed Decisions
B. Non-programmed Decisions
C. Personal Decisions
D. Heuristic Techniques
Answer» A. Programmed Decisions
6.

In the case of selecting candidates in an organization, the first step is

A. Preliminary Interview
B. Back ground Investigation
C. Blank Application
D. Medical Examination
Answer» C. Blank Application
7.

Reporting relationship is a step of

A. Planning
B. Organizing
C. Leading
D. Medical Examination
Answer» B. Organizing
8.

All the following principles are included in ‘Directing’ except

A. Harmony of Objectives
B. Unity of Command
C. Coordination
D. Follow up
Answer» C. Coordination
9.

Controlling involves 17

A. Determining the Objectives
B. Setting Standards of Performance
C. Identifying Activities for the Creation of Departments
D. Directing the People towards Accomplishment of Common Goals
Answer» B. Setting Standards of Performance
10.

‘No news is good news’ relate to

A. Historical Feedback Control
B. Predictive Feed Forward Control
C. Critical Point Control
D. Control by Exception
Answer» D. Control by Exception
11.

Authority is

A. Right to do something
B. Ability to do something
C. Derived from many sources
D. Not visible from organizational chart
Answer» A. Right to do something
12.

Vroom’s Theory of Motivation is known as

A. Need Hierarchy Theory
B. Equity Theory
C. Expectancy Theory
D. Theory X and Theory Y
Answer» C. Expectancy Theory
13.

Which one of the following needs is missing in the ‘Hierarchy of Needs’ Theory?

A. Psychological Needs
B. Physiological Needs
C. Safety Needs
D. Wealth Needs
Answer» D. Wealth Needs
14.

Which one of the following elements is associated with Herzberg’s Model?

A. Self – Actualization
B. Safety
C. Esteem
D. Hygiene
Answer» D. Hygiene
15.

Which one of the following methods is included in the ‘off-the-job-training’?

A. Coaching
B. Case Studies
C. Apprenticeship Training
D. Vestibule Training
Answer» B. Case Studies
16.

Under the Likert’s Four Management System, which one of the following adopts a paternalistic approach towards the subordinates?

A. System 1 – Exploitative Autocratic
B. System 2 – Benevolent Autocratic
C. System 3 – Consultative
D. System 4 – Democratic
Answer» B. System 2 – Benevolent Autocratic
17.

Which one of the following is not the merit of Oral communication?

A. Authenticity
B. Effective
C. Easy Communication
D. Instant Feedback
Answer» A. Authenticity
18.

‘Simulation’ is useful

A. to observe the behavior of a system
B. to find solution to the Waiting-line Problem
C. to optimize the objective function
D. to make decision under competition
Answer» A. to observe the behavior of a system
19.

Flow of communication among the same level of people is known as

A. Upward communication
B. Downward communication
C. Horizontal communication
D. Formal communication
Answer» C. Horizontal communication
20.

Which one of the following is not an objective of MIS?

A. To facilitate the Decision making process
B. To provide requisite information at each level of management
C. To support the Decision making Process
D. To recruit people for the system
Answer» D. To recruit people for the system
21.

Which one of the following is not included in Scientific Management technique?

A. Division of labour
B. Scientific selection
C. Training and placement of workers
D. Hierarchical Structure
Answer» D. Hierarchical Structure
22.

Under Fayol’s 14 Principles of Management, which one of the following factor is related with Esprit de Corps?

A. Division of work
B. Team Work
C. Personal ability
D. Personal interest
Answer» B. Team Work
23.

In the organization, reporting relationship is a function of

A. Planning
B. Organizing
C. Leading
D. Controlling
Answer» B. Organizing
24.

Which one of the following is not included in “The Managerial Activities”?

A. Commanding
B. Controlling
C. Accounting
D. Organizing
Answer» C. Accounting
25.

Heuristic techniques refer to

A. Trial and Error technique
B. Group Decision making technique
C. Brain Storming technique
D. Critical Problem Solving technique
Answer» A. Trial and Error technique
26.

Which one of the following is not correct in case of planning?

A. Planning is goal oriented
B. Planning is pervasive
C. Planning is discreet function
D. Planning is flexible
Answer» C. Planning is discreet function
27.

PERT stands for

A. Progressive Evaluation and Review Tool
B. Programme Evaluation and Review Technique
C. Programme Evaluation and Regression Technique
D. Progressive Evaluation and Regression Tool
Answer» B. Programme Evaluation and Review Technique
28.

‘Cybernetics’ relates to

A. Feed-back control
B. Feed-forward control
C. Steering control
D. Critical point control
Answer» A. Feed-back control
29.

Directing is a

A. Discreet process
B. Continuous process
C. One-way process
D. Circular process
Answer» B. Continuous process
30.

Which one of the following is an example of non-routine decisions?

A. Decision related to fill up the vacated position of an organization
B. Decision related to launch a new production plant
C. Decision related to restructure the organization for improvement
D. Decision related to take over a sick unit
Answer» B. Decision related to launch a new production plant
31.

In making a decision, ‘game theory’ is useful under conditions of

A. Certainty
B. Various probabilities
C. Competitive rivalry
D. Irregular demand
Answer» C. Competitive rivalry
32.

Referrent power is the

A. Power of ability to grant or withhold the rewards to others
B. Power of ability to punish others for not carrying out orders
C. Power of dominance over others through specialized knowledge
D. Power of attracting peoples towards a person himself or herself
Answer» D. Power of attracting peoples towards a person himself or herself
33.

Which one of the following techniques does not imply ‘On-the-job training’ method?

A. Apprenticeship training
B. T-Group training
C. Vestibule training
D. Self-improvement programmes
Answer» B. T-Group training
34.

Which leadership style permits quick decision making?

A. Democratic Style
B. Laissez Fair Leadership
C. Authoritarian Leadership
D. None of the above
Answer» C. Authoritarian Leadership
35.

Programmed decisions are concerned with

A. Basic decisions
B. Unique decisions
C. Repetitive and Routine decisions
D. Non-routine decisions
Answer» C. Repetitive and Routine decisions
36.

Channels of communication in an informal organization is known as

A. Grapevine
B. Gangplank
C. Upward communication
D. Downward communication
Answer» A. Grapevine
37.

When communication flows from top to bottom is known as

A. Upward communication
B. Downward communication
C. Horizontal communication
D. Formal communication
Answer» B. Downward communication
38.

An individual’s degree of like or dislike of oneself is known as

A. Self-belief
B. Self-concept
C. Self-efficacy
D. Self-esteem
Answer» C. Self-efficacy
39.

Close supervision, control of subordinates, centralization of authority, autocratic leadership styles are the features of

A. Need hierarchy theory
B. Two factor theory
C. Theory X
D. Theory Y
Answer» C. Theory X
40.

Existence, Relatedness and Growth (ERG) theory was propounded by

A. Alderfer
B. Likert
C. Vroom
D. Herzberg
Answer» A. Alderfer
41.

_________________ is called as the father of Scientific Management.

A. Henri Fayol
B. F.W. Taylor
C. Max Weber
D. Elton Mayo
Answer» B. F.W. Taylor
42.

Administrative function is the _______________ managerial function.

A. top-level
B. middle – level
C. lower – level
D. supervisory level
Answer» A. top-level
43.

______________ form the basis for the functioning of an organization.

A. Profits
B. Objectives
C. Policies
D. Strategies
Answer» C. Policies
44.

____________ is a means to an end.

A. Organising
B. Planning
C. Controlling
D. Coordinating
Answer» C. Controlling
45.

_____________ is the foundation of most successful actions of all enterprises.

A. Controlling
B. Planning
C. Organising
D. Directing
Answer» B. Planning
46.

____________ process is called a negative process.

A. Training
B. Placement
C. Selection
D. Induction
Answer» C. Selection
47.

Control by Exception is also known as ________________

A. Management by Exception
B. Management by Objectives
C. Decision making
D. Management Information System
Answer» A. Management by Exception
48.

_________ is concerned with the total manner in which a manager influences the actions of subordinates.

A. Planning
B. Organising
C. Directing
D. Staffing
Answer» C. Directing
49.

_______________ is the essence of management.

A. Directing
B. Coordinating
C. Controlling
D. Planning
Answer» B. Coordinating
50.

______________ refers to the process of passing information from one person to another and its understanding.

A. Planning
B. Communicating
C. Controlling
D. Motivating
Answer» B. Communicating

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