

Best Multiple Choice Questions for Class 12 Business Studies Chapter 1 with Explanations
MCQs for Business Studies Class 12 Chapter 1 provide students with targeted practice on “Nature and Significance of Management.” This topic is crucial for board exams, management entrance tests, and real-world understanding of how organizations function. Practicing MCQs helps students revise, strengthen basic concepts, and build confidence for scoring high in exams.
Function of Management | Main Elements | Example Activity |
---|---|---|
Planning | Setting objectives and outlining strategies | Annual sales target setting |
Organising | Grouping activities and assigning roles | Forming marketing and finance departments |
Staffing | Recruiting and placing right people | Hiring sales executives |
Directing | Supervision, communication, motivation, leadership | Team meetings and giving instructions |
Controlling | Monitoring progress and corrective actions | Reviewing quarterly performance |
Coordination | Harmonizing activities across functions | Ensuring marketing and production work together |
MCQs for Business Studies Class 12 Chapter 1: Importance and Scope
MCQs for Business Studies Class 12 Chapter 1 focus on “Nature and Significance of Management,” a foundational area for all Commerce students. These questions appear frequently in board exams and competitive entrance tests. By practicing these MCQs, students clarify differences between management functions, improve recall, and find gaps in their preparation.
Key Terms and Concepts: Nature and Significance of Management MCQ
Term | Definition |
---|---|
Management | The process of planning, organizing, staffing, directing, and controlling to achieve organizational goals. |
Coordination | The integration and synchronization of activities to ensure unity of action. |
Levels of Management | Three major levels: top, middle, and lower-level management. |
Effectiveness | Achieving goals correctly (“doing the right things”). |
Efficiency | Achieving goals with minimum resources (“doing things right”). |
Functions of Management | Planning, organizing, staffing, directing, controlling. |
MCQ Questions for Class 12 Business Studies Chapter 1 with Answers
-
Identify the feature of coordination: “Coordination is not a one-time function, it begins at planning and continues till controlling.”
(a) Unity of action
(b) All-pervasive function
(c) Continuous process
(d) Deliberate function
Answer: (c) Continuous process -
The process ensuring planned objectives with minimum conflict is:
(a) Management
(b) Planning
(c) Coordination
(d) Controlling
Answer: (c) Coordination -
Coordination is the essence of management because:
(a) It’s the common thread in all activities.
(b) It is implicit in all functions.
(c) It binds all management functions.
(d) All of the above.
Answer: (d) All of the above -
Which function places the right person at the right job?
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling
Answer: (b) Staffing -
Supervision, communication, and motivation relate to which management function?
(a) Directing
(b) Controlling
(c) Planning
(d) Organising
Answer: (a) Directing -
Laying the foundation for management functions is:
(a) Organising
(b) Staffing
(c) Planning
(d) Controlling
Answer: (c) Planning -
Grouping activities into departments and building hierarchy is:
(a) Planning
(b) Organising
(c) Controlling
(d) Directing
Answer: (b) Organising -
Organising as a management function involves:
(a) What activities and resources are required.
(b) Who will do a particular task.
(c) Where will it be done.
(d) All of the above.
Answer: (d) All of the above -
The middle-level of management acts as a link between:
(a) Supervisory & top management
(b) Operational & top management
(c) Top-level & first-line managers
(d) None of the above
Answer: (c) Top-level & first-line managers -
The main task of top-level management is:
(a) Setting overall objectives and strategies
(b) Ensuring firm’s survival
(c) Supervising workers
(d) Enforcing safety standards
Answer: (a) Setting overall objectives and strategies
Each MCQ here comes from real exam patterns and covers essential management concepts. For more practice, access our complete objectives and importance of management section.
Download PDF and Take Chapter 1 MCQ Test Online
- Download Class 12 Business Studies Chapter 1 MCQ PDF (Free)
- Take Online Chapter 1 MCQ Test on Vedantu
Many students prefer downloadable PDFs for offline revision. Interactive online tests also help students assess speed and accuracy. For other MCQ sets and concept explanations, visit Vedantu Commerce.
Tips on Scoring High in Business Studies MCQs
- Practice chapter-wise MCQs regularly before exams.
- Review explanations to strengthen core concepts.
- Focus on differences between management functions like planning, organizing, and staffing.
- Attempt mock tests to improve speed and accuracy.
- Use Vedantu business studies resources for comprehensive revision.
Related Concepts and Further Reading
- Functions of Management – Deep dive into planning, organizing, and controlling.
- Levels and Functions of Management – Clarifies hierarchy and managerial responsibilities.
- Objectives and Importance of Management – Core concepts often asked in MCQs.
- Introduction and Characteristics of Management – Key chapter for foundational MCQs.
- Features of Business – Useful for questions on business and management features.
Summary
MCQs for Business Studies Class 12 Chapter 1 help students master the “Nature and Significance of Management.” Practicing these MCQs ensures strong exam performance and solidifies understanding of management’s core principles. Use Vedantu’s resources, both online and downloadable, for complete and effective exam preparation.
FAQs on Business Studies Class 12 Chapter 1 MCQs: Nature and Significance of Management
1. How can I prepare for Class 12 Business Studies MCQ-based questions?
Effective preparation for Class 12 Business Studies MCQ questions involves understanding key concepts. Focus on mastering Nature and Significance of Management, functions of management, and other chapter topics. Practice with chapter-wise MCQs, including online MCQ tests and downloadable MCQ PDFs. Regular revision and focusing on key terms and concepts will help boost your scores.
2. Where can I download Class 12 Business Studies Chapter 1 MCQs PDF?
Many websites and educational platforms offer downloadable PDFs containing MCQs for Class 12 Business Studies Chapter 1. Search online for 'Class 12 Business Studies Chapter 1 MCQ PDF download' or 'Business Studies MCQs with answers PDF Class 12' to find suitable resources. Look for reputable sources to ensure the accuracy and relevance of the materials to the CBSE syllabus.
3. Which topics are most important in Chapter 1: Nature and Significance of Management?
Chapter 1: Nature and Significance of Management covers essential concepts for your Class 12 Business Studies exam. Key topics include the nature of management, its functions (planning, organizing, staffing, directing, controlling), levels of management, and the importance of management in various organizational contexts. Ensure you understand the definitions and applications of these key concepts.
4. How are MCQ patterns set for the CBSE Board exam?
CBSE Board exams often include multiple-choice questions (MCQs) to assess understanding of Business Studies concepts. These MCQs test your knowledge of key definitions, principles, and applications. The questions are designed to evaluate comprehension, not just memorization. Practice with sample papers and past papers to get familiar with the question style.
5. Are answer explanations provided for every MCQ?
High-quality MCQ resources for Class 12 Business Studies typically provide answers and explanations for each question. These explanations clarify the reasoning behind the correct answer and help you understand the concepts better, especially if you made mistakes. This aids in your revision and helps improve conceptual clarity.
6. How can I get full marks in business studies class 12?
Achieving full marks in Class 12 Business Studies requires a comprehensive approach. This includes thorough understanding of concepts, regular practice with MCQs and other question types, effective time management during the exam, and consistent revision. Utilize resources like online tests, question banks, and sample papers for optimal preparation.
7. What are the important questions of business studies class 12?
Important questions for Class 12 Business Studies vary depending on the syllabus and exam pattern. However, focus on understanding core concepts from each chapter. Review past papers and sample questions to identify recurring themes and question types. Mastering MCQs and other objective questions is crucial. Prioritize topics like management functions, business organization, and marketing concepts.
8. Is class 12 business studies tough?
The difficulty of Class 12 Business Studies is subjective. However, consistent effort and structured study can make it manageable. Breaking down the syllabus into smaller, manageable parts and practicing regularly with MCQs and other question types can improve comprehension. Utilize various resources and focus on understanding the underlying concepts rather than rote learning.
9. How to score 90 in business studies class 12?
Scoring 90+ in Class 12 Business Studies involves a dedicated approach. Thorough understanding of the syllabus, consistent study, and regular practice are key. Master key concepts, practice MCQs extensively, and focus on detailed answers in descriptive sections. Time management and strategic exam preparation are also crucial for success.
10. What are common mistakes students make while solving Business Studies MCQs?
Common mistakes in Business Studies MCQs include rushing through questions without careful reading, failing to understand the question's core concept, overlooking crucial keywords, and making assumptions based on incomplete information. Practicing regularly, analyzing past errors, and enhancing conceptual clarity can significantly minimize these mistakes.

















