Nature and Significance of Management: Assertions & Reason Type Questions | Business Studies (BST) Class 12 - Commerce PDF Download

Direction: In the following questions, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice as:

Question 1: 
Assertion (A): Coordination begins at the planning stage and continues till controlling.
Reason (R): Coordination is a one-time process.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (c)
Coordination is a continuous process. It is not a one-time function but a continuous process. It begins at the planning stage and continues till controlling.

Question 2: 
Assertion (A): Management is a goal-oriented process.
Reason (R): An organization has a set of basic goals which are the basic reasons for its existence.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Different organisations have different goals. Management unites the efforts of different individuals in the organisation towards achieving these goals.

Question 3: 
Assertion (A): Coordination is the essence of management.
Reason (R): Coordination is the force that binds all the other functions of management.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Coordination is the common thread that runs through all activities such as purchase, production, sales, and finance to ensure continuity in the working of the organisation. Coordination is implicit and inherent in all functions of an organisation.

Question 4: 
Assertion (A): Management is a dynamic function and has to adapt itself to the changing environment.
Reason (R): The effect of management is noticeable in an organisation where targets are met according to plans.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (b)
An organisation interacts with its external environment which consists of various social, economic and political factors. In order to be successful, an organisation must change itself and its goals according to the needs of the environment.

Question 5:
Assertion (A): Coordination integrates group efforts.
Reason (R): Coordination unifies unrelated or diverse interests into purposeful work activity.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Coordination gives a common focus to group effort to ensure that performance is as it was planned and scheduled.

Question 6:
Assertion (A): Management is responsible for setting and achieving objectives for the organisation.
Reason (R): The basic objective of any business is survival.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Management has to achieve a variety of objectives in all areas considering the interest of all stakeholders. The main objective of any organisation should be to utilise human and material resources to the maximum possible advantage, i.e., to fulfill the economic objectives of a business. These are survival, profit and growth.

Question 7:
Assertion (A): Staffing is finding the right people for the right job and is an important aspect of management.
Reason (R): Staffing makes sure that right people with the right qualifications are available at the right places and times to accomplish the goals of the organisation.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Staffing is also known as the human resource function and it involves activities such as recruitment, selection, placement and training of personnel.

Question 8: 
Assertion (A): Management increases efficiency.
Reason (R): An organisation has a single objective to serve the purpose of different groups that constitute it.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (c)
The aim of a manager is to reduce costs and increase productivity through better planning, organising, directing, staffing and controlling activities of the organisation.
An organisation has multiple objectives to serve the purpose of different groups that constitute it. In the process of fulfilling all these, management helps in the development of the organisation and through that it helps in the development of society.

Question 9:
Assertion (A): Planning is the first function management.
Reason (R): Planning implies setting goals in advance and developing a way of achieving them efficiently and effectively.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Planning is the function of determining in advance what is to be done and who is to do it. Planning bridges the gap between where we are and where we want to go.

Question 10: 
Assertion (A): Profession involves skillful and personal application of existing knowledge to achieve desired results.
Reason (R): Experts in their respective areas have derived certain basic principles which are applicable to a particular form of art.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (d)
Art involves skillful and personal application of existing knowledge to achieve desired results. Art presupposes the existence of certain theoretical knowledge.

Question 11:
Assertion (A): Lower level managers spend more time in planning and organizing.
Reason (R): Top Management consists of the seniormost executives of the organisation.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (d)
Top level managers spend more time in planning and organizing. They are usually referred to as the chairman, the chief executive officer, chief operating officer, president and vice-president. They formulate overall organisational goals and strategies for their achievement.

Question 12:
Assertion (A): Scientific principles have universal application and validity.
Reason (R): Management principles are not exact like scientific principles so their application and use is not universal.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (b)
Scientific principles are based on truth and they can be applied at every time and in every situation. Thus, its universal application is possible. In the field of management too, managerial knowledge and principles of management are considered to be based on truth and they, too, can be applied anywhere and in every situation.

Question 13:
Assertion (A): Middle Management is the link between top and lower level managers.
Reason (R): Middle management are subordinate to top managers and superior to the first line managers.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time, they are responsible for all the activities of first line managers.

Question 14: 
Assertion (A): All professions are bound by a code of conduct which guides the behaviour of its members.
Reason (R): There are several associations of practicing managers in India, that has laid down a code of conduct to follow.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Every profession has a certain code of conduct to follow. There are several associations of practicing managers in India, like the AIMA (All India Management Association) that has laid down a code of conduct to regulate the activities of their members.

Question 15:
Assertion (A): Management is a systematic body of knowledge.
Reason (R): Management has its own theory and principles that have developed over a period of time.
(a) Both (A) and (R) are true, and (R) is the correct explanation of (A).
(b) Both (A) and (R) are true, but (R) is not the correct explanation of (A).
(c) (A) is true, but (R) is false.
(d) (A) is false, but (R) is true.

Correct Answer is Option (a)
Management has a systematized body of knowledge. Like all other organised activities, management has its own theory, principles, vocabulary of terms and concepts.