Business Management MCQs

✅ The correct answer is option D.
Implicit policies are similar to norms that govern individuals within an institution, but they are not formally recorded. Even though implicit policies are not recorded, they still have an authority within the institution that stems from the fact that individuals within the institution follow them.

✅ The correct answer is option C.
Inter-depoartmental committee meeting is an example of horizontal communication. Horizontal communication is the transmission of information between people, divisions, departments or units within the same level of organizational hierarchy. You can distinguish it from vertical communication, which is the transmission of information between different levels of the organizational hierarchy.

✅ The correct answer is option C.
Control imposed after an action has occurred is feedback control. Feedback control is a process that the manager uses to help her carry out those functions. This process gives the manager the necessary information to better execute her control function, allowing the team to meet the standards set by the manager’s plans.

✅ The correct answer is option A.
MBE is a technique of management Control. Management by exception (MBE), when applied to business is a style of management that gives employees the responsibility to take decisions and to fulfill their work or projects by themselves. It consists of focus and analysis of statistically relevant anomalies in the data.

✅ The correct answer is option A.
Planning is basis of control. Planning sets the goals for the organization and controlling ensures their accomplishment. Planning decides the control process and controlling provides sound basis for planning.

✅ The correct answer is option B.
The leader acts as a liaison officer between the employees and the outside world is free-rein style. Free-rein leadership, also called Laissez-Faire, is a type of leadership style in which leaders are hands-off and allow group members to make the decisions. Mangers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.

✅ The correct answer is option C.
Followers decide whether a person is a leader or not is according to Followers theory. According to this leader-follower theory followers may from groups and the followers’ groups naturally have their own characteristics and needs. According to the characteristics and nature of followers’ groups needs are ascertained.

✅ The correct answer is option B.
Herzbergs Hygeine factors do not motivate employees. The absence of hygiene factors will cause employees to work less hard. Hygiene factors are not present in the actual job itself but surround the job.

✅ The correct answer is option B.
Reports, suggestions, appeals, grievances, etc is example of upward communication. Upward communication is the communication where information or messages flows from the down or bottom of the organizational structure form the top of the organizational structure.

✅ The correct answer is option A.
The transmission of thoughts from person to another is communication. Communications is fundamental to the existence and survival of humans as well as to an organization. It is a process of creating and sharing ideas, information, views, facts, feelings, etc. among the people to reach a common understanding. Communication is the key to the Directing function of management.