_____________is the process of grouting similar activities together and creating departments.

Please refer to the MCQ Questions for Class 12 Business Studies Chapter 5 Organising with Answers. The following Organising Class 12 Business Studies MCQ Questions have been designed based on the latest syllabus and examination pattern for Class 12. Our experts have designed MCQ Questions for Class 12 Business Studies with Answers for all chapters in your NCERT Class 12 Business Studies book.

See below Organising Class 12 Business Studies MCQ Questions, solve the questions and compare your answers with the solutions provided below.

Question. __________ is the organisational structure in which no department is responsible for end results.   
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal 

Question. __________ cannot be delegated.   
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (a) and (b)

Question. Organising process includes one of the following:       
(a) Grouping of activities
(b) Prescribing disciplinary action
(c) Determining objectives
(d) Prescribing work schedule

Question. One of the following is not an importance of organising: 
(a) Role clarity
(b) Performance appraisal
(c) Adaptation to change
(d) Growth and expansion

Question. __________ is the duty for job performance.   
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (a) and (c)

Question. _________ is the right to command.
(a) Authority
(b) Responsibility
(c) Accountability
(d) Both (b) and (c)

Question. Organisation structure establishes relationships between   
(a) organisation and environment.
(b) people, work and resources.
(c) organisation and society.
(d) suppliers and customers.

Question. One of the following is an advantage of functional structure: 
(a) Responsibility for end results
(b) Flexibility
(c) Personalised attention
(d) Easier employee learning

Question. Divisional structure leads to conflict in   
(a) resource allocation. 
(b) marketing management.
(c) motivation.
(d) planning process.

Question. In which respect does formal organisation differ from informal organisation? 
(a) Production process
(b) Structuring
(c) Financial procedure
(d) Purchasing

Question. Which one of the following does not follow scalar chain?   
(a) Informal organisation
(b) Functional structure
(c) Formal organisation
(d) Divisional structure

Question. Degree of decentralisation indicates   
(a) degree of authority delegation.
(b) degree of responsibility.
(c) degree of power delegation.
(d) degree of accountability.

Question. ___________ involves giving authority and responsibility to subordinates.     
(a) Division of work
(b) Decentralisation
(c) Delegation
(d) Centralisation

Question. __________ is the process of grouting similar activities together and creating departments. 
(a) Division of work
(b) Departmentalisation
(c) Delegation
(d) Centralisation

Question. ___________ is the organisational structure in which activities are grouped on the basis of products. 
(a) Divisional structure
(b) Functional structure
(c) Formal
(d) Informal 

Question. Decentralisation should be applied with caution as _________.
(a) It can lead to organisational disintegration if departments start to operate on their own guidelines which may be contrary to the interest of the organisation.
(b) Decentralisation must always be balanced in areas of major policy decisions.
(c) It recognises the decision maker’s need for autonomy.
(d) It propagates the belief that people are competent, capable and resourceful.

Question. Which of the following is not structure of organisation?
(a) Functional
(b)Divisional
(c)Control
(d)None of the above

Question. Which of the following is not an element of delegation?
(a) Accountability
(b) Authority
(c) Responsibility
(d) Informal Organisation

Question. It refers to the number of subordinates that can be effectively managed by a superior,
(a) Organisational structure
(b) Informal organisation
(c) Span of management
(d) None of the above

Question. Fast decision can be taken by using the concept of
(a) Delegation
(b) Formal Organisation
(c) Decentralisation
(d) None of the above

Question. For delegation to be effective it is essential that responsibility be accompanied with necessary.
(a) Authority
(b) Manpower
(c) Incentives
(d) Promotions

Question. This type of organisational structure is most suitable when the size of the organisation is large, has diversified activities and operations require a high degree of specialisation,
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Question. Organising is a process by which the manager
(a) Establishes order out of chaos
(b) Removes conflict among people over work or responsibility sharing
(c) Creates an environment suitable for teamwork
(d) All of the above

Question. Under Accountability a person is answerable for the
(a) Growth of company
(b) Final outcome of the assigned task
(c) Delegation of authority
(d) None of these

Question. Under this type of organisational structure, manpower is grouped on the basis of different products manufactured.
(a) Divisional structure
(b) Functional structure
(c) Network structure
(d) Matrix structure

Question. Which of the following is not a merit of divisional structure?
(a) It promotes product specialisation.
(b) It ensures that different functions get due attention.
(c) It promotes flexibility and faster decision making.
(d) It facilitates expansion and growth as new divisions.

Question. Which of the following is not an importance of organising?
(a) Increase cost
(b) Clarity in working relationship
(c) Adoption to change
(d) None of the above

Question. Which of the following is not a feature of functional structure?
(a) It promotes functional specialisation.
(b) Managerial development is difficult.
(c) It is easy to fix responsibility for performance.
(d) It is an economical structure to maintain.

Question. Identify the correct sequence of steps to be followed in an organising process.
(a) Departmentalisation, Establishing reporting relationships, Assignment of duties, Identification and division of work
(b) Identification and division of work, Departmentalisation, Assignment of duties, Establishing reporting relationships
(c) Identification and division of work, Assignment of duties, Departmentalisation, Establishing reporting relationships
(d) Identification and division of work, Establishing reporting relationships, Departmentalisation, Assignment of duties.

Question. Which of the following is a routine activity
(a) Decentralisation
(b) Delegation
(c) Formal Organisation
(d) Informal Organisation

Question. Number of subordinates under a superior is called?
(a) Office environment
(b) Strict control
(c) Span of management
(d) None of the above

Question. What is the key to managerial posts?
(a) Responsibility
(b) Authority
(c) Accountability
(d) All of the above.

Question. Rishabh has joined as a Creative Head in an entertainment company. He always ensures that the work has been divided into small and manageable activities and also the activities of similar nature are grouped together. Identify the related step in organising process being mentioned in the above lines.
(a) Identification and division of work
(b) Departmentalisation
(c) Assignment of duties
(d) Establishing reporting relationships

Question. In Decentralisation, we have sharing of authority and responsibility at
(a) Two levels
(b) Multiple level
(c) Department wise
(d) None of the above

Question. Which of the following is not a demerit of functional structure?
(a) It places more emphasis on the objectives pursued by a functional head than on overall enterprise objectives.
(b) It may lead to conflict of interests among departments due to varied interests.
(c) It leads to occupational specialisation.
(d) It may lead to difficulty in co-ordination among functionally differentiated departments.

Question. Assertion (A): Delegation of authority is essential for effective operation of any business organisation.
Reason (R): Accountability cannot be delegated or transferred.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True but Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True

Question. Assertion (A): The scope of authority is limited to the extent of the work assigned.
Reason (R): Responsibility is an obligation of an employee to complete the work assigned.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A).
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A).
(c) Assertion (A) is True but Reason (R) is False.
(d) Assertion (A) is False but Reason (R) is True.

Question. Assertion (A): Delegation helps a manager to extend his area of operations as without it, his activities would be restricted to only what he himself can do.
Reason (R): A manager, no matter how capable he is, cannot manage to do every task on his own. The volume of work makes it impractical for him to handle it all by himself.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True.
(b) Both Assertion (A) and Reason (R) are False.
(c) Assertion (A) is True and Reason (R) is False.
(d) Assertion (A) is False and Reason (R) is True.

Question. Assertions (A) There are more chances of managerial development in functional structure.
Reason (R) Managers perform multifunctions in divisional structure.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Question. Assertion (A) Assignment of duties is important part of organising process.
Reason (R) Under organising all the individuals assigned some authority matching with responsibility.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Question. Assertion (A): A large sized organisation can be totally decentralised.
Reason (R): As an organisation grows in size and complexity, there is tendency to move towards decentralised decision-making. Complete centralisation would imply concentration of all decision making functions at the apex of the management hierarchy.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True.
(b) Both Assertion (A) and Reason (R) are False.
(c) Assertion (A) is True and Reason (R) is False.
(d) Assertion (A) is False and Reason (R) is True

Question. Assertion (A) In organising there are very few chances of duplication of work or overlapping of work because the jobs are assigned to different individuals by clearly defining the job in job description document.
Reason (R) Changes can be easily adapted with organising by opening separate department.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Question. Assertion (A) Due attention to different functions is the demerit of functional structure.
Reason (R) Each department is specialised in its own function so they fail to understand the priority of other department.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

Question. Assertion (A) Changes cannot take place easily in functional structure of organisation.
Reason (R) In functional structure, employees develop, narrow prospective as they get training in one area or one skill only.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct. 

Question. Assertion (A) Organising leads to specialisation.
Reason (R) In organising, clarity in working relations cannot be possible.
Codes:
(a) Both A and R are true. R is the correct explanation of A.
(b) Both A and R are true but R is not correct explanation of A.
(c) A is correct but R is incorrect.
(d) A is incorrect but R is correct.

True/False

Question. Responsibility is the duty for job performance.

Question. Delegation is the step of organising process through which departments and sections in an organisation are created.

Question. Accountability originates from delegated authority.

Question. Divisional structure is the aspect of organising that establishes relationships between people, work and resources.

Question. Responsibility cannot be delegated at all.

Question. Formal organisational structure is consciously and deliberately designed structure of well-defined jobs.