Principles of Management MCQ’s in Business Studies

Let’s take Business Studies MCQs on Principles of Management.

Question 1. Mr Mukesh used to manufacture shoes by employing labour who were easily available. When his son after completion is MBA joined the business. He analysed that if we use capital intensive method by using a machine it will reduce the cost and the quality of shoes will also improve.

Answer the following questions. Based on the above case studies.

Which technique of scientific management is used by his son.

(A) Work study

(B) Motion study

(C) Method study

(D) Fatigue study

Question 2. What is the objective of that technique?

(A) Finding the best way of doing thing

(B) Finding the minimum cost

(C) Finding the rest interval

(D) All of the above.

Question 3. Manager of ABC ltd. does not allocate work as per the capability of workers.Which principle is violated by them.

(A) Principle of Division of work

(B) Principle of discipline

(C) Principle of order

(D) Principle of equity

Question 4. The salesman of ABC ltd. could not achieve his sales target of 1000 units, on enquiry it was found that he was not allowed to take decision related to give discount or credit to any of his customer. State the principle of Management violated in this case.

(A) Principle of Division of work

(B) Principle of authority and responsibility

(C) Principle of order

(D) None of these

Question 5. Suraj was engaged in the business of carpet making. Since company was making handmade carpet as well as machine made carpet. There were lot of overlapping of activities, so the Production manager advised there should be two separate division for both of them. Where in each division should have its own incharge plans and execution.
Identify the principle of management insisted by production Manager.

(A) Equity

(B) Unity of direction

(C) order

(D) Unity of command

Question 6. 10. Mr. Malhotra, Finance manager of ABC ltd. Applied for leave to attend a family function in Amritsar. The director of the company requested him to cancel his leave as there is an important meeting schedule on that date. Mr. Malhotra immediately agreed and cancelled his trip as he thought attending meeting is more import for company’s benefit.
Which principle of Fayol is applied by Mr. Malhotra?

(A) Principle of Discipline.

(B) Principle of order

(C) Principle of equity

(D) Principle of subordination of individual interest to general interest.

Question 7. The principles of management are said to be flexible as _____________.

(A) Their application is dependent upon the prevailing situation at a particular point of time.

(B) They can be modified by the manager when the situation so demands.

(C) They are general guidelines to action, but do not provide ready made solutions to management problems.

(D) They aim at influencing behavior of human beings.

Question 8. “Management principles are not as rigid as principles of pure science.” Which of the following best describes the given statement?

(A) Management principles deal with human behavior and, thus, are to be applied creatively given the demands of the situation.

(B) Principles of management contribute towards the development of management both as a science and as an art.

(C) Principles of management are formed after research in work situations, which are technical in nature.

(D) None of the above

Question 9. The principles are guidelines to action but do not provide ready made, straitjacket solutions to all managerial problems. This is so because .

(A) The applications of principles has to be changed as per requirements.

(B) Principles are like different tools serving different purposes, the manager has to decide which tool to use under what circumstances.

(C) Real business situations are very complex and dynamic and are a result of many factors.

(D) All the above

Question 10. “The principles of management are not rigid prescriptions, which have to be followed absolutely.” Which of the following best describes the given statement?

(A) Management principles aim at influencing behavior of human beings.

(B) Management principles are flexible and can be modified by the manager when the situation so demands.

(C) Management principles enable a better understanding of the relationship between human and material resources in accomplishing organisational purposes.

(D) None of the above.

Question 11. The application of principles has to be changed as per requirements. For example, employees deserve fair and just remuneration. But what is just and fair is determined by multiple factors. They include contribution of the employee, paying capacity of the employer and also prevailing wage rate for the occupation under consideration.
Identify the nature of principles of management highlighted above.

(A) Contingent

(B) Mainly Behavioral

(C) Flexible

(D) General Guidelines

Question 12. A manager should have the right to punish a subordinate for wilfully not obeying a legitimate order but only after sufficient opportunity has been given to a subordinate for presenting her/his case. Identify the principle of management highlighted above.

(A) Stability of Personnel

(B) Equity

(C) Discipline

(D) Authority and Responsibility

Question 13. According to Fayol, discipline requires .

(A) Good superiors at all levels

(B) Judicious application of penalties

(C) clear and fair agreements

(D) All of these

Question 14. is an extension of the principle of division of work and specialization to the shop floor; and it violates the principle of Unity of command.

(A) Standardization and Simplification of work

(B) Unity of Direction

(C) Functional foremanship

(D) Cooperation, not individualism

Question 15. Which of the following technique of scientific management violate‘s the principle of Equity?

(A) Method Study

(B) Differential Piece Wage System

(C) Standardization and Simplification of work ‘

(D) Functional foremanship

Question 16. A worker directly contacts the CEO of the company with a complaint regarding working conditions in the factory. Which of the following principles is being violated here?

(A) Unity of Direction

(B) Scalar

(C) Discipline

(D) Unity of Command

Question 17. Same battery can be used in different mobile phones of a particular brand. This is an example of which of the following techniques of scientific management?

(A) Functional Foremanship

(B) Simplification of work

(C) Method Study

(D) Standardization of work

Question 18. “She/he keeps machines, materials, tools etc., ready for operations by concerned workers’. Whose work is described by this sentence under functional foremanship?

(A) Instruction Card Clerk

(B) Gang Boss

(C) Repair Boss

(D) Route Clerk

Question 19. Which one of the following statements best describes ‘Mental Revolution’ as described by F.W. Taylor?

(A) Workers should be paid more wages.

(B) Both management and workers require each other.

(C) The management and workers should not play the game of one upmanship.

(D) It implies change of attitude.

Question 20. In an organisation, each person should be scientifically selected. Then work assigned should suit his physical, mental and intellectual capabilities. To increase efficiency, they should be given the required training. Efficient employees would produce more and earn more. Which of the following principle of management is highlighted above?

(A) Remuneration of employees.

(B) Development of each and every person to his/her greatest efficiency and prosperity.

(C) Division of work.

(D) Science, not rule of thumb

Question 21. According to this principle of management, there should be obedience to organisational rules and contract of employment, clear and fair decisions and judicious application of penalties which are necessary for the working of the organisation. The principle of management referred to above is ____________.

(A) Discipline

(B) Unity of Command

(C) Subordination of Individual Interest to General Interest

(D) Authority and Responsibility

Question 22. Sanak and Gagan started their career in Wales Limited (a printing press) after going through a rigorous recruitment process. Since they had no prior work experience, the firm decided to give them one year to prove themselves. The principle of management followed by Wales Limited is __________.

(A) Discipline

(B) Equity

(C) Stability of Personnel

(D) Authority and Responsibility

Question 23. Match the principle of management in Column I with their respective explanation in Column II:

(B) (iii),(ii),(i),(iv)

(C) (ii), (i), (iii), (iv)

(D) (i), (ii), (iii), (iv)

Question 24. Match the technique of scientific management in Column I with their respective explanation in Column II:

(B) (iii), (iv), (i), (ii)

(C) (ii), (i), (iii), (iv)

(D) (iii), (ii),(i), (iv)

Question 25. Match the technique of scientific management in Column I with their respective explanation in Column II: 

(B) (ii), (iv), (i), (iii)

(C) (ii), (iii), (iv), (i)

(D) (i), (ii), (iii), (iv)

Question 26. Match the technique of scientific management in Column I with their respective explanation in Column II: 

(B) (ii), (iv), (i), (iii)

(C) (i), (ii), (iii), (iv)

(D) (iii), (iv), (i), (ii)