Organising Process and Key Concepts in Business Studies Chapter 5 MCQs
MCQs for Business Studies Class 12 Chapter 5 (Organising) are essential for students aiming to master business concepts quickly. These multiple-choice questions reinforce the core organising process, crucial for CBSE board and other competitive exams. Understanding such questions helps build strong conceptual clarity for real-world business situations.
| Step | Organising Process Sequence | Description |
|---|---|---|
| 1 | Identification and Division of Work | Breaking down tasks into manageable units. |
| 2 | Departmentalisation | Grouping similar activities together into departments. |
| 3 | Assignment of Duties | Allotting work to individuals as per their skills. |
| 4 | Establishing Reporting Relationships | Defining authority and accountability structure. |
MCQs for Business Studies Class 12 Chapter 5 (Organising)
Organising MCQs for Class 12 help you test and reinforce important theories, definitions, and structures. Practising these MCQs ensures you are ready for the objective section of Business Studies exams.
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When decision-making authority is retained at higher management, the organisation is said to be:
- (a) Decentralised
- (b) Centralised
- (c) Fragmented
- (d) None of the above
Centralisation means power and decisions remain with top-level management. -
Accountability is derived from:
- (a) Authority
- (b) Formal position
- (c) Responsibility
- (d) All of the above
Accountability arises when a person accepts responsibility for a task. -
Which of the following cannot be delegated?
- (a) Responsibility and accountability
- (b) Authority and responsibility
- (c) Accountability and responsibility
- (d) None of the above
Accountability cannot be delegated; the manager stays answerable. -
Authority granted to an employee should be:
- (a) More than the responsibility entrusted to him
- (b) Less than the responsibility entrusted to him
- (c) Equal to the responsibility entrusted to him
- (d) None of the above
Authority must match responsibility for efficiency and fairness. -
Which of the following is not a demerit of the informal organisation?
- (a) It leads to the spreading of rumours
- (b) It gives more importance to the structure and work
- (c) It may restrict the implementation of changes
- (d) It puts psychological pressure on members
Informal organisations focus on relationships, not structure. -
Which is not a merit of the informal organisation?
- (a) It leads to faster spread of information
- (b) It helps fulfil members’ social needs
- (c) It does not fulfil inadequacies in the formal organisation
- (d) None of the above
Informal groups often balance formal organisation limitations. -
Which is not a feature of the informal organisation?
- (a) It originates from within the formal organisation
- (b) Standards of behaviour evolve from group norms
- (c) Scalar chain of command is not followed
- (d) It is deliberately created by the management
Informal organisation develops spontaneously, not by management. -
Which is not a demerit of the formal organisation?
- (a) It may lead to procedural delays
- (b) It may lead to the spreading of rumours
- (c) It emphasises following rigidly laid down policies
- (d) It places more importance on work than relationships
Rumours are mainly a feature of informal organisations. -
Which is not a demerit of functional structure?
- (a) It emphasises functional over overall enterprise objectives
- (b) It leads to conflict among departments
- (c) It leads to occupational specialisation
- (d) There may be difficulty in coordination
Occupational specialisation is a merit, not a demerit. -
Identify the correct sequence of steps in the organising process.
- (a) Departmentalisation, Reporting, Assignment, Identification and division
- (b) Identification and division, Departmentalisation, Assignment, Reporting
- (c) Identification and division, Assignment, Departmentalisation, Reporting
- (d) Identification and division, Reporting, Departmentalisation, Assignment
This sequence matches the correct process order as per Business Studies. -
Which of the following is not a demerit of the divisional structure?
- (a) Expensive due to duplication of activities
- (b) All functions related to a product are integrated in a department
- (c) Conflict may arise among divisional heads
- (d) Managerial authority may lead to undesirable consequences
Integration is a merit, not a demerit. -
Which is not a feature of functional structure?
- (a) Promotes functional specialisation
- (b) Difficult managerial development
- (c) Easy to fix responsibility for performance
- (d) Expensive to maintain
Functional structure is economical, not expensive. -
Under which organisational structure is manpower grouped by products manufactured?
- (a) Divisional structure
- (b) Functional structure
- (c) Network structure
- (d) Matrix structure
Divisional structure groups staff by product, region, or market. -
As span of management increases, the number of levels of management:
- (a) Increases
- (b) Decreases
- (c) Remains unaffected
Wide span means less hierarchy; fewer levels. -
Name the process that integrates human efforts and resources to achieve objectives.
- (a) Management
- (b) Planning
- (c) Organising
- (d) Directing
Organising unites efforts and resources for unified goals.
Key Concepts Explained for Class 12 Business Studies Chapter 5
- Formal Organisation: Pre-defined structure, official hierarchy, clear job descriptions.
- Informal Organisation: Arises within formal structure, based on relationships and friendships.
- Functional Structure: Departments based on functions like marketing, finance, HR.
- Divisional Structure: Separate business units based on products or regions.
- Decentralisation: Decision-making distributed to lower levels.
- Delegation: Transfer of authority for specific tasks from manager to subordinate.
- Span of Management: Number of subordinates under one manager.
- Accountability: Subordinate’s obligation to complete assigned tasks, cannot be delegated.
Downloadable Resources for Organising MCQs Class 12
Related Topics and Internal Links
- Formal Organization and Project Management
- Decentralisation
- Centralisation and Decentralisation
- Types of Organisation Structure
- Delegation
- Responsibility Accounting
How These MCQs Help Students
MCQs for Business Studies Class 12 Chapter 5 are a valuable tool for school board exams and competitive entrance tests. They quickly assess understanding of formal/informal organisation, authority, delegation, and structural types. Practising these MCQs builds exam confidence and sharpens business decision-making skills.
At Vedantu, we provide clear and comprehensive MCQs and explanations to help students succeed. For further topic-wise clarity, explore more Business Studies resources on the Vedantu website.
In summary, MCQs for Business Studies Class 12 Chapter 5 (Organising) cover all essential concepts like structure, decentralisation, and delegation. Regular practice aids in mastering business concepts, enabling students to score higher and apply organising principles in everyday and competitive business scenarios.
FAQs on Business Studies Class 12 Chapter 5: MCQs With Answers and Explanations
1. What topics are covered in Class 12 Business Studies Chapter 5 MCQs?
Class 12 Business Studies Chapter 5 MCQs cover key organising concepts. These include the organising process itself, authority and delegation, different types of organisational structures (functional, divisional, etc.), and the features of formal and informal organisations. Understanding decentralisation is also crucial.
2. How can I download the MCQs for Business Studies Chapter 5 with answers?
Access Class 12 Business Studies Chapter 5 MCQs in PDF format via the provided download link. Alternatively, utilize Vedantu's online practice tests for immediate access to MCQs for CBSE Organising chapter and review.
3. Are these MCQs based on the latest CBSE pattern?
Yes, these MCQs for Business Studies Class 12 Chapter 5 are completely aligned with the latest (2024) CBSE and NCERT guidelines, ensuring accurate reflection of the current exam pattern and probabilities. They're designed to help you prepare effectively for your Business Studies board exams.
4. Which step comes first in the organising process?
The first step in the organising process is always the identification and division of work. This lays the foundation for all subsequent steps, including departmentalisation and assignment of duties.
5. Can I practise these MCQs on mobile?
Yes, these MCQs for CBSE Organising chapter and online tests are fully optimized for mobile devices. Practice Class 12 Business Studies Chapter 5 quiz questions conveniently anytime, anywhere.
6. Is Class 12 Business Studies tough?
The difficulty of Class 12 Business Studies varies among students. Chapter 5, Organising, can present challenges, particularly regarding understanding formal versus informal organisation, accountability, and functional versus divisional structure. Consistent practice with resources like these Organising MCQs Class 12 will greatly improve understanding and performance.
7. What is the organising process involves MCQ?
The organising process involves several key steps. These include: (1) Identification and division of work; (2) Departmentalisation; (3) Assignment of duties and responsibilities; (4) Establishing reporting relationships. Understanding this sequence is vital for answering MCQs accurately.
8. How to score 100 in business class 12?
Scoring 100 in Class 12 Business Studies requires comprehensive preparation. This includes thorough understanding of all chapters, consistent practice with CBSE Business Studies MCQ questions, and focused revision. Use resources like this Class 12 Business Studies Chapter 5 quiz and Vedantu's other study materials for effective preparation.
9. What is accountability derived from?
Accountability is derived from the delegation of authority and responsibility. While tasks are delegated, the ultimate accountability for their successful completion remains with the person who delegated them. This is a frequently tested concept in MCQs for Business Studies Class 12 Chapter 5 (Organising).
10. What are merits and demerits of informal organisation?
Informal organisations offer benefits like faster communication and increased camaraderie. However, they can also lead to rumors, and hinder formal processes. Understanding these aspects is key for many MCQs of Business Studies Class 12 Chapter 5.
11. What are common traps or tricky MCQs in Chapter 5 Organising?
Common pitfalls in Chapter 5 Organising MCQs include questions on the nuances of informal vs. formal organization, the precise order of steps in the organising process, and the subtle differences between delegation and decentralization.
