Business Management MCQs

✅ The correct answer is option D.
Example of Hygeine factors is salary. Hygiene factors (e.g. status, job security, salary, fringe benefits, work conditions, good pay, paid insurance, vacations) that do not give positive satisfaction or lead to higher motivation, though dissatisfaction results from their absence. The term “hygiene” is used in the sense that these are maintenance factors.

✅ The correct answer is option A.
The delegation of authority on the basis of custom, conventions or usage is known as oral delegation. Delegation made by written orders and instructions is known as written delegation. Unwritten or oral delegation is based in custom and conventions.

✅ The correct answer is option B.
Communication is a two-way process. Two-way communication is when one person is the sender and they transmit a message to another person, who is the receiver. When the receiver gets the message, they send back a response, acknowledging the message was received. The model looks like this: Two-way communication is essential in the business world.

✅ The correct answer is option D.
MBO is suggested by Peter F Drucker in 1954. Management by objectives (MBO), also known as management by results (MBR), was first popularized by Peter Drucker in his 1954 book The Practice of Management. Management by objectives is the process of defining specific objectives within an organization that management can convey to organization members, then deciding on how to achieve each objective in sequence.

✅ The correct answer is option B.
The leader who excels as a leader because of his superior knowledge is intellectual leader. Intellectual Leaders are serious, focused, and goal-oriented. They think long-term about their life and enjoy developing big, complex systems. They are theoretical, logical, intelligent, and functionalistic.

✅ The correct answer is option A.
Leadership theory explain the leadership styles available to leaders is 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 A.
Informal organization has no place in the organization chart. 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 B.
Growth and prosperity of any organization depends upon planning. It is the most challenging activity for the management because it leads to the growth and prosperity of the organization. Planning facilitates decision making: Planning is done keeping in mind the future. Planning involves setting targets and predicting future conditions thus helping in taking rational decisions

✅ The correct answer is option B.
According to Henri Fayol, “Authority is the right to give orders and the power to exact obedience.”

✅ The correct answer is option B.
Informal authority flows upwards to downwards or horizontally in informal organization. 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.