Test: Organising - 1

10 Questions MCQ Test Business Studies (BST) Class 12 | Test: Organising - 1

Attempt Test: Organising - 1 | 10 questions in 10 minutes | Mock test for Commerce preparation | Free important questions MCQ to study Business Studies (BST) Class 12 for Commerce Exam | Download free PDF with solutions

This a MCQ (Multiple Choice Question) based practice test of Chapter 5 - Organising of Business Studies of Class XII (12) for the quick revision/preparation of School Board examinations
Q. Which of the following is not an element of delegation?


Informal Organisation is not an element of delegation. Delegation means designating or transferring of authority to subordinates or another person. For example assigning work by a manager to a subordinate to execute certain activities. It is the most important concept of management leadership.


A network of social relationship that arises spontaneously due to interaction at work is called:


Informal organisation structure individual are assigned various job positions. Informal organisation structure is the network of social relationships that arises in spontaneously due to the interaction of work. Informal organisation structure is spontaneously in interaction of work in various job positions is called informal organisation structure.


Which of the following does not follow the scalar chain?


Scalar chain is one of the principle given by halenry fayol.This principle says that communication would be done in a chain way means in a formal and disciplined way. So,under informal organization there is not the maintainance of any formal rules.So,scalar chain is not followed under informal organization.


A tall structure has a


A tall structure of organisation is the one that has multiple levels of hierarchy. A tall structure of organisation has narrow span of management. That is, under such a structure a manager has charge of only a few subordinates.


Centralisation refers to


Centralisation refers to the retention of decision making authority. Centralisation implies a situation where the decision making power is retained by the top level management. Under such a system, other levels of management do not have a right to intervene in policy making. The power and the authority, in such a system, remains concentrated in a few hands.


For delegation to be effective it is essential that responsibility be accompanied with necessary


Span of management refers to


Span of control is the term now used more commonly in business management, particularly human resource management. Span of control refers to the number of subordinates a supervisor has.


The form of organisation known for giving rise to rumors is called


Rumours are a result of informal organisation. They can have adverse effect on the working environment. It may result in arguments or conflicts among the people of the organisation. For example, a rumour about the boss may pop up during a communication among a group of employees, which may affect the superior-subordinate relationship.


Grouping of activities on the basis of product lines is a part of


Sometimes an organisation has more than one product line. Under such a scenario the organisation groups the activities on the basis of the product line. Such a grouping of activities on the basis of product line is known as divisional organisation. Each division further has its own sub-departments such as production, finance, etc.


Grouping of activities on the basis of functions is a part of


Functional Organisation involves grouping of the functions of similar nature. Each group forms a separate department that report to one head. For example, departments may be divided on the basis of functions such as production, human resources, etc. that report to the managing director of the organisation.

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