Business Management MCQs

✅ The correct answer is option B.
A leader forces his followers to work had and penalizes them is negative style. Leaders are usually open-minded and have a strong will to execute. Conventionally leaders have common traits but to be better leaders one should know when to zig when others zag. It is possible to be opinionated, adaptable, and pleasant while being a good leader.

✅ The correct answer is option C.
A decision which is taken to meet unexpected situation crisis decision. Crisis is a time of intense difficulty or danger – a time when a difficult or important decision must be made.

✅ The correct answer is option D.
Converting symbols, signs or pictures into meaning is known as decoding. Decoding is the process of converting code into plain text or any format that is useful for subsequent processes. Decoding is the reverse of encoding.

✅ The correct answer is option B.
Consumers are satisfied through innovation. Innovation in its modern meaning is “a new idea, creative thoughts, new imaginations in form of device or method”.

✅ The correct answer is option A.
Authority flows from upwards to downwards in formal organization. The formal organization is basically goal-oriented entity that exist to accurate the efforts of individuals and it refers to the structure of jobs and positions with clearly defined functions, responsibilities and authorities.

✅ The correct answer is option A.
Decision making helps in the smooth function of the business. Decision making is related to planning, organizing, directing and controlling functions of a manager. Decision making is important to achieve the organizational goals/objectives within given time and budget. Decision-making is a pervasive function of managers aimed at achieving organizational goals.

✅ The correct answer is option C.
Management is both art and science. It is considered as a science because it has an organized body of knowledge which contains certain universal truth. It is called an art because managing requires certain skills which are personal possessions of managers.

✅ The correct answer is option C.
The followers themselves take decisions for which they get authority under 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 B.
The right of a person to give instructions to his subordinates is known as authority. Authority, in simple words, is the right way of commanding subordinates, issuing orders and instructions, and exacting obedience from the team. It is also the right of the manager to make decisions. Also, to act or not to act depends on how he perceives the objectives of the organization.

✅ The correct answer is option A.
Scalar chain means hierarchy levels. The concept of hierarchy is a universal phenomenon of organization which means the scalar chain implying a ladder structured in a pyramidical fashion with successive several steps interlinked with each other, from top to bottom.