CHSE Commerce â Principles of Management
50 CHSE / Board Exam Style MCQs
Easy â Moderate â Hard
Score: 0 / 50
đ Instructions
Answer all 50 questions. Questions are arranged chronologically according to the six prescribed topics. Select an option to see whether it is correct and read the explanation immediately.
1. Meaning of Principles of Management
EASY
Question 1
What are Principles of Management?
Correct Answer: B. General guidelines for managerial decision-making
Management principles are broad guidelines that help managers make decisions and perform managerial activities effectively.
Management principles are broad guidelines that help managers make decisions and perform managerial activities effectively.
EASY
Question 2
Who is closely associated with the development of the 14 Principles of Management?
Correct Answer: B. Henri Fayol
Henri Fayol developed the well-known 14 Principles of Management.
Henri Fayol developed the well-known 14 Principles of Management.
EASY
Question 3
Management principles mainly provide:
Correct Answer: A. Guidelines to managers
Principles of management guide managers in planning, organising, staffing, directing and controlling organisational activities.
Principles of management guide managers in planning, organising, staffing, directing and controlling organisational activities.
MODERATE
Question 4
Why are management principles called general guidelines?
Correct Answer: B. They guide managers without providing rigid solutions
Management principles are flexible guidelines. Managers apply them according to the specific situation.
Management principles are flexible guidelines. Managers apply them according to the specific situation.
HARD
Question 5
Which statement best explains the nature of management principles?
Correct Answer: B. They are flexible guidelines applied according to situations
Management principles are not rigid laws. Their application depends upon the circumstances, organisation and managerial judgement.
Management principles are not rigid laws. Their application depends upon the circumstances, organisation and managerial judgement.
2. Features of Principles of Management
EASY
Question 6
Which of the following is a feature of management principles?
Correct Answer: A. Universal applicability
Management principles have broad applicability in different types of organisations.
Management principles have broad applicability in different types of organisations.
EASY
Question 7
Management principles are generally:
Correct Answer: B. Flexible
Management principles can be adapted according to the situation.
Management principles can be adapted according to the situation.
MODERATE
Question 8
Management principles are mainly based on:
Correct Answer: A. Experience, observation and experimentation
Management principles have developed from managerial experience, observation, experimentation and practical situations.
Management principles have developed from managerial experience, observation, experimentation and practical situations.
MODERATE
Question 9
Which feature means that management principles can be applied in different organisations?
Correct Answer: B. Universal applicability
Universal applicability means management principles can be used in different types of organisations.
Universal applicability means management principles can be used in different types of organisations.
HARD
Question 10
Why are management principles not considered absolute?
Correct Answer: B. Their application changes according to circumstances
Management situations differ. Therefore, managers must adapt principles according to the circumstances rather than apply them mechanically.
Management situations differ. Therefore, managers must adapt principles according to the circumstances rather than apply them mechanically.
3. Objectives of Principles of Management
EASY
Question 11
What is one major objective of management principles?
Correct Answer: A. To guide managers
Management principles provide useful guidance for managerial decisions and actions.
Management principles provide useful guidance for managerial decisions and actions.
EASY
Question 12
Management principles aim to improve:
Correct Answer: B. Managerial efficiency
Proper application of management principles helps managers perform their functions more effectively and efficiently.
Proper application of management principles helps managers perform their functions more effectively and efficiently.
MODERATE
Question 13
Which objective of management principles helps in proper utilisation of resources?
Correct Answer: A. Optimum utilisation of resources
Management principles guide managers in using human, financial and physical resources efficiently.
Management principles guide managers in using human, financial and physical resources efficiently.
MODERATE
Question 14
Management principles help managers in decision-making by:
Correct Answer: B. Providing a logical basis for decisions
Principles provide managers with a framework for analysing situations and taking appropriate decisions.
Principles provide managers with a framework for analysing situations and taking appropriate decisions.
HARD
Question 15
Which combination best represents the objectives of management principles?
Correct Answer: A
Management principles guide managers, improve efficiency, promote proper resource utilisation and help organisations achieve objectives.
Management principles guide managers, improve efficiency, promote proper resource utilisation and help organisations achieve objectives.
4. Importance of Management
EASY
Question 16
Management is important because it helps an organisation:
Correct Answer: A. Achieve its objectives
Management coordinates organisational activities and resources to achieve predetermined objectives.
Management coordinates organisational activities and resources to achieve predetermined objectives.
EASY
Question 17
Which of the following is an important function of management?
Correct Answer: B. Coordination of resources
Management coordinates human, financial and physical resources to achieve organisational goals.
Management coordinates human, financial and physical resources to achieve organisational goals.
MODERATE
Question 18
Which aspect of management helps an organisation adapt to environmental changes?
Correct Answer: A. Dynamic nature of management
Management must respond to changes in technology, customer preferences, competition and the external environment.
Management must respond to changes in technology, customer preferences, competition and the external environment.
MODERATE
Question 19
Effective management helps reduce:
Correct Answer: B. Wastage of resources
Good management promotes optimum utilisation of resources and reduces unnecessary wastage.
Good management promotes optimum utilisation of resources and reduces unnecessary wastage.
HARD
Question 20
Which statement best explains the importance of management?
Correct Answer: B
Management coordinates people and resources and directs organisational activities towards the achievement of objectives.
Management coordinates people and resources and directs organisational activities towards the achievement of objectives.
5. Henri Fayol’s 14 Principles of Management
EASY
Question 21
How many principles of management were given by Henri Fayol?
Correct Answer: C. 14
Henri Fayol developed 14 Principles of Management.
Henri Fayol developed 14 Principles of Management.
EASY
Question 22
Which principle promotes specialisation?
Correct Answer: A. Division of Work
Division of Work divides activities into specialised tasks and improves skill and efficiency.
Division of Work divides activities into specialised tasks and improves skill and efficiency.
EASY
Question 23
Which principle states that an employee should receive orders from only one superior?
Correct Answer: B. Unity of Command
Unity of Command means one employee should receive orders from one superior.
Unity of Command means one employee should receive orders from one superior.
EASY
Question 24
Which principle means “one head and one plan” for activities having the same objective?
Correct Answer: B. Unity of Direction
Unity of Direction means one head and one plan for a group of activities having the same objective.
Unity of Direction means one head and one plan for a group of activities having the same objective.
MODERATE
Question 25
Which principle states that authority and responsibility should go together?
Correct Answer: A. Authority and Responsibility
A person given responsibility should also have sufficient authority to perform the assigned duty.
A person given responsibility should also have sufficient authority to perform the assigned duty.
MODERATE
Question 26
Which Fayol principle deals with obedience and respect for organisational rules?
Correct Answer: B. Discipline
Discipline means obedience, respect for rules and agreements within the organisation.
Discipline means obedience, respect for rules and agreements within the organisation.
MODERATE
Question 27
Which principle requires fair and satisfactory payment to employees?
Correct Answer: B. Remuneration
The principle of Remuneration deals with fair compensation to employees.
The principle of Remuneration deals with fair compensation to employees.
MODERATE
Question 28
The formal line of authority from the highest level to the lowest level is called:
Correct Answer: B. Scalar Chain
Scalar Chain represents the formal hierarchy or line of authority in an organisation.
Scalar Chain represents the formal hierarchy or line of authority in an organisation.
MODERATE
Question 29
Which principle means “right person at the right place”?
Correct Answer: B. Order
The principle of Order requires a proper place for everything and everyone. It supports the idea of placing the right person in the right position.
The principle of Order requires a proper place for everything and everyone. It supports the idea of placing the right person in the right position.
MODERATE
Question 30
Which principle encourages employees to suggest ideas and take initiative?
Correct Answer: A. Initiative
Initiative encourages employees to think, suggest ideas and take appropriate action.
Initiative encourages employees to think, suggest ideas and take appropriate action.
MODERATE
Question 31
Which Fayol principle means treating employees fairly and justly?
Correct Answer: B. Equity
Equity requires fairness and justice in dealing with employees.
Equity requires fairness and justice in dealing with employees.
MODERATE
Question 32
Which principle promotes team spirit among employees?
Correct Answer: C. Esprit de Corps
Esprit de Corps means team spirit and promotes unity and harmony among employees.
Esprit de Corps means team spirit and promotes unity and harmony among employees.
HARD
Question 33
An employee receives orders from two managers. Which Fayol principle is violated?
Correct Answer: B. Unity of Command
Unity of Command requires one employee to receive orders from one superior. Two superiors can create confusion and conflict.
Unity of Command requires one employee to receive orders from one superior. Two superiors can create confusion and conflict.
HARD
Question 34
A company has one objective but different departments follow different plans. Which principle is violated?
Correct Answer: A. Unity of Direction
Activities with the same objective should have one head and one plan.
Activities with the same objective should have one head and one plan.
HARD
Question 35
Which principle is most directly concerned with maintaining stability by avoiding unnecessary employee turnover?
Correct Answer: B. Stability of Personnel
Fayol believed unnecessary employee turnover could reduce efficiency. Reasonable stability of personnel is therefore desirable.
Fayol believed unnecessary employee turnover could reduce efficiency. Reasonable stability of personnel is therefore desirable.
6. Taylor’s Scientific Management Techniques
EASY
Question 36
Who is known as the Father of Scientific Management?
Correct Answer: B. F.W. Taylor
Frederick Winslow Taylor is known as the Father of Scientific Management.
Frederick Winslow Taylor is known as the Father of Scientific Management.
EASY
Question 37
Which technique determines the standard time required to complete a job?
Correct Answer: A. Time Study
Time Study determines the standard time required for a qualified worker to complete a particular task.
Time Study determines the standard time required for a qualified worker to complete a particular task.
EASY
Question 38
Which technique studies unnecessary movements of workers?
Correct Answer: B. Motion Study
Motion Study identifies and eliminates unnecessary movements to improve efficiency.
Motion Study identifies and eliminates unnecessary movements to improve efficiency.
MODERATE
Question 39
Which technique aims to find the best method of performing a job?
Correct Answer: B. Method Study
Method Study compares alternative methods and identifies the best method of performing a particular job.
Method Study compares alternative methods and identifies the best method of performing a particular job.
MODERATE
Question 40
Which technique determines suitable rest intervals for workers?
Correct Answer: C. Fatigue Study
Fatigue Study determines appropriate rest intervals to reduce worker fatigue.
Fatigue Study determines appropriate rest intervals to reduce worker fatigue.
MODERATE
Question 41
Under the Differential Piece Wage System, efficient workers generally receive:
Correct Answer: B. A higher piece rate
Taylor’s Differential Piece Wage System rewards workers who achieve the standard output with a higher piece rate.
Taylor’s Differential Piece Wage System rewards workers who achieve the standard output with a higher piece rate.
MODERATE
Question 42
What is the main purpose of Functional Foremanship?
Correct Answer: A. Specialisation of supervision
Functional Foremanship divides supervisory work among specialised foremen to improve efficiency.
Functional Foremanship divides supervisory work among specialised foremen to improve efficiency.
MODERATE
Question 43
Which technique reduces unnecessary varieties in products, tools or processes?
Correct Answer: B. Standardisation and Simplification
Standardisation establishes standards, while simplification reduces unnecessary varieties and complexity.
Standardisation establishes standards, while simplification reduces unnecessary varieties and complexity.
HARD
Question 44
A factory observes workers to remove unnecessary physical movements. Which technique is being applied?
Correct Answer: B. Motion Study
Motion Study analyses worker movements and eliminates movements that do not contribute to productive work.
Motion Study analyses worker movements and eliminates movements that do not contribute to productive work.
HARD
Question 45
A manager establishes that a qualified worker should complete a job in 15 minutes. This is an application of:
Correct Answer: A. Time Study
Time Study establishes the standard time required to complete a particular task.
Time Study establishes the standard time required to complete a particular task.
HARD
Question 46
A company compares several methods of manufacturing and selects the most efficient one. Which technique is used?
Correct Answer: B. Method Study
Method Study identifies the best method of performing a particular task.
Method Study identifies the best method of performing a particular task.
HARD
Question 47
A company provides planned rest periods after studying the effect of continuous work on employees. Which technique is involved?
Correct Answer: C. Fatigue Study
Fatigue Study determines suitable rest intervals and helps reduce physical and mental fatigue.
Fatigue Study determines suitable rest intervals and helps reduce physical and mental fatigue.
HARD
Question 48
Which of the following correctly matches the technique with its purpose?
Correct Answer: B. Motion Study â eliminating unnecessary movements
Motion Study specifically focuses on analysing and eliminating unnecessary movements during work.
Motion Study specifically focuses on analysing and eliminating unnecessary movements during work.
HARD
Question 49
Which combination correctly represents Taylor’s major techniques?
Correct Answer: A
Time Study, Motion Study, Method Study and Fatigue Study are important techniques associated with Taylor’s Scientific Management.
Time Study, Motion Study, Method Study and Fatigue Study are important techniques associated with Taylor’s Scientific Management.
HARD
Question 50
Which statement correctly distinguishes Fayol’s approach from Taylor’s approach?
Correct Answer: A
Henri Fayol is associated with administrative management and the 14 Principles of Management. F.W. Taylor is associated with Scientific Management and techniques aimed at improving operational efficiency and productivity.
Henri Fayol is associated with administrative management and the 14 Principles of Management. F.W. Taylor is associated with Scientific Management and techniques aimed at improving operational efficiency and productivity.
