Business Management MCQs

✅ The correct answer is option B.
Informal organization arises from mans quest for social satisfaction. An informal organization is the social structure of the organization, as opposed to the formal structure of an organization. It establishes how an organization functions from a practical standpoint.

✅ The correct answer is option D.
Departmentation on the basis of activities grouped according to the type of customer is departmentation by customers. Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups.

✅ The correct answer is option C.
The primary function of management is planning. Planning is a primary function of management, hence it gets primary over other management functions. It is a continuous and never ending activity.

✅ The correct answer is option B.
The control takes place before the actual activity is known as feed forward control. Feedforward control is a mechanism in a system for preventing problems before they occur by for monitoring performance inputs and reacting so as to maintain an identified level.

✅ The correct answer is option B.
The decision taken by high level of management is non-programmed decision. These decisions are taken in unstructured situations which reflect novel, ill-defined and complex problems. The problems are non-recurring or exceptional in nature. Since they have not occurred before, they require extensive brainstorming. Managers use skills and subjective judgment to solve the problems through scientific analysis and logical reasoning.

✅ The correct answer is option A.
Devices which shows the organizational relationships is organizational charts. The organization chart is a diagram showing graphically the relation of one official to another, or others, of a company. It is also used to show the relation of one department to another, or others, or of one function of an organization to another, or others.

✅ The correct answer is option B.
Delegation made by written orders and instruction is known as written delegation. Delegation is an administrative process of getting things done by others by giving them responsibility. All important decisions are taken at top level by Board of Directors.

✅ The correct answer is option D.
In managerial grid, the style which is maximum concern for both people and production is team management style. According to this method, the team leader instructs their team members to complete a task, and if they refuse, they will be punished.

✅ The correct answer is option A.
Large number of subordinates report to a manager is wide span of management. The Span of Management refers to the number of subordinates who can be managed efficiently by a superior. Simply, the manager having the group of subordinates who report him directly is called as the span of management.

✅ The correct answer is option C.
Leadership theory which explains that a leader is strongly affected by the situation in which he works is Situational theory. The situational leadership theory refers to those leaders who adopt different leadership styles according to the situation and the development level of their team members. It is an effective way of leadership because it adapts to the team’s needs and sets a beneficial balance for the whole organization.