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Management Fundamentals MCQ(Business Management Quiz - 61)

1. Planning by a supervisor of a goods processing department to rearrange the location of several pieces of equipment so that the new order can begin on time, three months from now, would be an example of a/an
[A]Tactical plan
[B]Operational plan
[C]Tactical goal
[D]Operational goal

2. Which of the following statements is/are true about effectiveness and efficiency?
I. Effectiveness refers to the achievement of stated organizational objectives while efficiency denotes the judicious use of resources to achieve organizational objectives.
II. Effectiveness means “doing things right” while efficiency means “doing the right things”.
III. Effectiveness is the foundation of success whereas efficiency is a minimum condition for survival after success is achieved.
[A]Only (I) above
[B]Both (I) and (II) above
[C]Both (I) and (III) above
[D]Both (II) and (III) above

3. Which of the following is not an area of managerial decision-making to which the linear programming technique can be applied?
[A]Product mix decisions
[B]Pricing decisions
[C]Determining optimal scale of operations
[D]Allocation of scarce resources

4. Three aspects – delegator’s, delegant’s and organizational – affect delegation. Which of the following is/are factor(s) that affect delegation of authority from the organizational aspect?
I. Policy towards centralization or decentralization.
II. Availability of managerial personnel.
III. Type of control mechanisms.
[A]Only (I) above
[B]Only (II) above
[C]Only (III) above
[D]All (I), (II) and (III) above

5. Which of the following statements about objectives is/are true?
I. Objectives and planning programs are co-existential and co-relational.
II. Goals and plans are always linear.
III. A manager can effectively pursue only a few objectives.
IV. Objectives do not require deadlines for results to be accomplished.
[A]Only (I) above
[B]Only (II) above
[C]Both (I) and (III) above
[D]Both (II) and (IV) above

6. Which of the following statements is not true about planning?
[A]It focuses attention on objectives
[B]It provides a sense of direction
[C]It provides efficiency in operations
[D]It is an instinctive procedure and allows little scope for innovation and creativity

7. In strategic management, any organizational skills or resources that are exceptional or unique are the organization’s
[A]Potential external opportunities
[B]Potential internal strengths
[C]Core competencies
[D]Bargaining Power

8. Which of the following is not a limitation of strategic planning?
[A]It is very expensive
[B]It does not yield obvious and immediate results
[C]It can be a lengthy and time-consuming process
[D]It encourages firms to adopt risky decisions

9. Which of the following is a limitation of Weber’s bureaucracy?
[A]It destroys individual creativity and the flexibility to respond to complex changes in the environment
[B]It does not focus on management of an organization from a manager’s point of view
[C]It overlooks social needs of workers
[D]It overemphasizes economic and physical needs of workers

10. A large organization that has three levels of managers but each one has ten or more subordinates reporting directly to that manager is organized to have which of the following structures?

11. Which of Henry Fayol’s principles of management states that ‘work specialization leads to efficiency of operations’?
[A]Division of labor
[C]Esprit de corps

12. In which step of the extended model of the planning process, does an organization focus on its strengths and weaknesses, competition, and customers’ needs?
[A]Formulating supporting plans
[B]Comparing alternatives in the light of goals
[C]Considering planning premises
[D]Being aware of opportunity

13. Some researches focus their attention on the internal culture of an organization, while others examine the impact of external culture on managerial practices. The most significant ways that culture is transmitted to employees in an organization, consist of
[A]Language, stories, rituals, and rewards
[B]Rituals, tales of woe, symbols, and language
[C]Stories, rituals, myths, and language
[D]Symbols, rituals, language, and systems

14. Product divisions are created to concentrate on a single product or service or at least a relatively homogenous set of products or services. Which of the following is not an advantage of product division/departmentation?
[A]It facilitates the use of specialized capital, promotes coordination and allows optimum utilization of personal skills and specialized knowledge
[B]It facilitates growth and diversity of products and services offered by the organization
[C]The performance of each product line can be compared and analyzed
[D]Managerial costs are lower because of the decentralization of various activities such as personnel, production, sales and accounts

15. Sairah is associated with a committee that is given the responsibility to review and institute a process for employees to use when requesting upgrades in computer equipment. Which type of objectives would Sairah most likely develop?
[A]Intermediate-term objectives
[B]Long-term objectives
[C]Short-term objectives
[D]Organizational objectives


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