Business Management MCQs

✅ The correct answer is option A.
Direction is a managerial function performed by top level management. These top managers are responsible for setting the overall direction of a company and making sure that major organizational objectives are achieved. Their leadership role can extend over the entire organization or for specific divisions such as finance, marketing, human resources, or operations.

✅ The correct answer is option C.
The managerial grid consist of 81 possible leadership styles. Mouton, the Managerial Grid Model helps Managers to analyze their own leadership styles through a technique known as grid training. Also, Managers can identify how they with respect to their concern for production and people with Managerial Grid Model.

✅ The correct answer is option C.
Banks, insurance companies and distribution agencies are examples of departmentation by territory. Departmentalization by Territory is the division of organization according to geographic regions as it groups jobs on the basis of territory or geography.

✅ The correct answer is option D.
Programmed decision is also known as operative decisions. Operational decisions or Operating decisions are decisions made to manage day to day business. Any firm which is into any kind of business is faced with 100 decisions they have to take in a day. These will be as mundane as refilling the water cooler, to as stressful as fulfilling a customers order within minutes.

✅ The correct answer is option A.
The extent to which power and authority are retained at the top is called as centralization. Centralisation or centralization is the process by which the activities of an organization, particularly those regarding planning and decision-making, framing strategy and policies become concentrated within a particular geographical location group.

✅ The correct answer is option C.
Decision making is the selection based on some criteria from two or more possible alternatives is defined by George R. Terry.

✅ The correct answer is option B.
Strategic Plans are made to achieve the overall organizational goals. The purpose of strategic planning is to set your overall goals for your business and to develop a plan to achieve them. It involves stepping back from your day-to-day operations and asking where your business is headed and what its priorities should be.

✅ The correct answer is option B.
The oldest type of organization is line organization. Line organization structure is the oldest and simplest form of organization. In these organizations, a supervisor exercises direct supervision over a subordinate. Also, authority flows from the top-most person in the organization to the person in the lowest rung.

✅ The correct answer is option B.
The process of activity relating to the effective utilization of available resources for production is management. Management is a set of principles relating to the functions of planning, organizing, directing and controlling, and the application of these principles in harnessing physical, financial, human and informational resources efficiently and effectively to achieve organizational goals.

✅ The correct answer is option B.
The formal authority theory is also called traditional authority theory. Traditional authority (also known as traditional domination) is a form of leadership in which the authority of an organization or a ruling regime is largely tied to tradition or custom. The main reason for the given state of affairs is that it ‘has always been that way’.