Section A – Management Concepts & Theories
1. Management is the process of _______.
A. Planning and Controlling only
B. Getting things done through people
C. Commanding subordinates
D. Ensuring discipline
Answer: B
Explanation: Management involves achieving goals by coordinating people and resources effectively.
2. Who is regarded as the Father of Scientific Management?
A. Henry Fayol
B. Max Weber
C. F.W. Taylor
D. Elton Mayo
Answer: C
Explanation: F.W. Taylor introduced scientific principles to improve efficiency at work.
3. Which of the following focuses on division of labor and authority?
A. Human Relations Approach
B. Bureaucratic Approach
C. Administrative Management
D. Behavioral Approach
Answer: C
Explanation: Henri Fayol’s Administrative Management emphasizes management principles like division of work and authority.
4. Max Weber is associated with which management theory?
A. Bureaucratic Model
B. Systems Approach
C. Contingency Theory
D. Scientific Management
Answer: A
Explanation: Weber developed the bureaucratic model emphasizing hierarchy and rules.
5. “Management is a social process involving responsibility for effective planning and regulation of operations.” — Who said this?
A. Koontz & O’Donnell
B. George Terry
C. E.F.L. Brech
D. Henry Fayol
Answer: C
Explanation: E.F.L. Brech defined management as a social process of planning and control.
6. According to Fayol, which principle ensures one superior for one subordinate?
A. Unity of Direction
B. Unity of Command
C. Scalar Chain
D. Order
Answer: B
Explanation: Unity of Command avoids confusion by ensuring one reporting line.
7. The concept of ‘Esprit de Corps’ refers to:
A. Division of work
B. Team spirit
C. Discipline
D. Centralization
Answer: B
Explanation: Esprit de Corps means unity and team spirit among employees.
8. The Hawthorne Studies were conducted by:
A. F.W. Taylor
B. Elton Mayo
C. Chester Barnard
D. Henri Fayol
Answer: B
Explanation: Elton Mayo’s Hawthorne Experiments revealed the importance of human relations.
9. Which management approach says “There is no one best way”?
A. Systems Approach
B. Behavioral Approach
C. Contingency Approach
D. Quantitative Approach
Answer: C
Explanation: The Contingency Approach depends on the situation and environment.
10. Systems Approach views organization as:
A. Closed system
B. Open system interacting with environment
C. Social club
D. Static structure
Answer: B
Explanation: Systems Approach sees organizations as open systems with input-output feedback.
🔹 Section B – Management Roles & Skills
11. Mintzberg identified how many managerial roles?
A. 5
B. 7
C. 10
D. 12
Answer: C
Explanation: Mintzberg identified 10 roles grouped into interpersonal, informational, and decisional.
12. Which of the following is an interpersonal role?
A. Spokesperson
B. Liaison
C. Entrepreneur
D. Negotiator
Answer: B
Explanation: Liaison connects manager with external and internal contacts.
13. Human skills are most essential at:
A. Top level
B. Middle level
C. Lower level
D. All levels
Answer: D
Explanation: Managers at all levels need interpersonal skills.
14. Conceptual skills are more critical for:
A. Top-level managers
B. Supervisors
C. Technical staff
D. Foremen
Answer: A
Explanation: Top-level managers need conceptual skills for strategic decisions.
15. Technical skill refers to:
A. Ability to use tools or techniques
B. Managing people
C. Decision-making
D. Developing strategies
Answer: A
Explanation: Technical skill is job-specific expertise.
🔹 Section C – Management Functions
16. Planning is a _______ function.
A. Primary
B. Secondary
C. Supportive
D. Supervisory
Answer: A
Explanation: Planning precedes all other management functions.
17. The process of grouping activities into departments is called:
A. Delegation
B. Departmentation
C. Decentralization
D. Formalization
Answer: B
Explanation: Departmentation organizes related activities together.
18. Staffing involves:
A. Recruitment and Selection
B. Training
C. Appraisal
D. All of these
Answer: D
Explanation: Staffing covers all HR-related functions.
19. Coordinating ensures:
A. Control
B. Unity of action
C. Planning
D. Authority
Answer: B
Explanation: Coordination integrates various departmental efforts.
20. Controlling is closely linked to:
A. Planning
B. Staffing
C. Directing
D. Communication
Answer: A
Explanation: Control compares performance against plan.
🔹 Section D – Communication
21. Communication is successful when:
A. Message is long
B. Receiver understands message correctly
C. Feedback is delayed
D. Sender dominates
Answer: B
Explanation: Communication is effective only when understanding occurs.
22. Noise in communication refers to:
A. Feedback
B. Physical or psychological barriers
C. Communication gap
D. None
Answer: B
Explanation: Noise represents barriers to communication.
23. Informal communication network is also called:
A. Grapevine
B. Chain
C. Wheel
D. Star
Answer: A
Explanation: Informal communication spreads through grapevine.
24. Downward communication flows from:
A. Employees to Managers
B. Superior to Subordinate
C. Same level employees
D. Customers to company
Answer: B
Explanation: Downward communication conveys orders, policies, etc.
25. Diagonal communication occurs:
A. Between same department
B. Between different levels and departments
C. Only at top level
D. Among customers
Answer: B
Explanation: Diagonal cuts across functions and levels.
🔹 Section E – Decision Making
26. Decision-making is primarily a function of:
A. Planning
B. Organizing
C. Leading
D. Controlling
Answer: A
Explanation: Planning involves making decisions about goals and methods.
27. The first step in decision making is:
A. Evaluating alternatives
B. Identifying the problem
C. Implementing solution
D. Feedback
Answer: B
28. The Delphi Technique is used for:
A. Supervision
B. Forecasting through expert opinion
C. Recruitment
D. Quality control
Answer: B
29. Brainstorming technique encourages:
A. Critical judgment
B. Free flow of ideas
C. Centralization
D. Discipline
Answer: B
30. Decision Tree helps in:
A. Routine decisions
B. Probabilistic decisions under risk
C. Group formation
D. Motivation
Answer: B
31. Linear Programming is a tool for:
A. Organizing resources
B. Optimization of limited resources
C. Pricing
D. Communication
Answer: B
32. Marginal analysis compares:
A. Average cost with revenue
B. Total cost with profit
C. Marginal cost with marginal benefit
D. Cost with price
Answer: C
33. Cost-benefit analysis evaluates:
A. Qualitative outcomes
B. Social relationships
C. Economic feasibility
D. Customer satisfaction
Answer: C
34. Game Theory applies to:
A. Monopoly
B. Oligopoly
C. Perfect competition
D. All markets
Answer: B
35. Sensitivity analysis is used for:
A. Routine control
B. Testing impact of variable changes
C. Employee feedback
D. Leadership development
Answer: B
🔹 Section F – Organisation Structure & Design
36. The simplest form of organization is:
A. Line
B. Matrix
C. Functional
D. Project
Answer: A
37. Dual authority exists in:
A. Line organization
B. Matrix structure
C. Bureaucratic model
D. Line and staff
Answer: B
38. Delegation involves:
A. Authority only
B. Responsibility only
C. Both authority and responsibility
D. Accountability only
Answer: C
39. Centralization means:
A. Power at top
B. Power at bottom
C. No power
D. Equal power
Answer: A
40. Span of control means:
A. Levels in hierarchy
B. Number of subordinates reporting to a manager
C. Number of departments
D. Area of control
Answer: B
🔹 Section G – Managerial Economics
41. Managerial Economics bridges:
A. Management and Law
B. Economics and Decision Making
C. Sociology and Management
D. Finance and HR
Answer: B
42. The law of demand shows a _______ relationship between price and quantity.
A. Direct
B. Positive
C. Inverse
D. None
Answer: C
43. Which curve shows combinations of goods giving same satisfaction?
A. Demand curve
B. Indifference curve
C. Supply curve
D. Isoquant
Answer: B
44. Elasticity of demand measures:
A. Customer loyalty
B. Responsiveness to price changes
C. Market demand
D. None
Answer: B
45. Demand forecasting means:
A. Estimating past sales
B. Estimating future demand
C. Calculating elasticity
D. Deciding pricing
Answer: B
46. Which market has a single seller?
A. Monopoly
B. Oligopoly
C. Perfect competition
D. Monopolistic
Answer: A
47. FMCG market is an example of:
A. Monopoly
B. Monopolistic competition
C. Perfect competition
D. Duopoly
Answer: B
48. Telecom industry is an example of:
A. Oligopoly
B. Monopoly
C. Perfect competition
D. Duopoly
Answer: A
49. In perfect competition, a firm is a _______.
A. Price maker
B. Price taker
C. Price leader
D. Price regulator
Answer: B
50. Marginal Revenue equals Marginal Cost at:
A. Minimum profit
B. Maximum profit
C. Break-even
D. Loss
Answer: B
🔹 Section H – National Income and Inflation
51. GDP refers to:
A. Gross Domestic Product
B. Gross Development Product
C. General Demand Price
D. Gross Depreciated Product
Answer: A
52. GNP = GDP + _______
A. Depreciation
B. Net income from abroad
C. Taxes
D. None
Answer: B
53. Per capita income is calculated as:
A. GNP ÷ Population
B. NNP ÷ Exports
C. GDP ÷ Imports
D. NDP ÷ Taxes
Answer: A
54. Inflation means:
A. Increase in wages
B. Rise in general price level
C. Decrease in prices
D. Rise in GDP
Answer: B
55. CPI measures:
A. Wholesale prices
B. Consumer prices
C. Exports
D. Imports
Answer: B
56. Demand-pull inflation occurs due to:
A. Excess demand
B. Low demand
C. High supply
D. High productivity
Answer: A
57. Cost-push inflation is due to:
A. Increased cost of production
B. Decrease in money supply
C. Demand fall
D. Government control
Answer: A
58. Hyperinflation means:
A. Mild rise
B. Very rapid increase in prices
C. Fall in prices
D. Controlled inflation
Answer: B
59. Which index is most used in India for inflation?
A. GDP deflator
B. CPI
C. SPI
D. API
Answer: B
60. Inflation reduces:
A. Purchasing power
B. Money supply
C. GDP
D. Employment
Answer: A
🔹 Section I – Business Ethics, CSR & Corporate Governance
61. Business ethics refers to:
A. Law
B. Moral principles guiding business
C. Profit maximization
D. Industrial laws
Answer: B
62. The main objective of business ethics is:
A. Reduce taxes
B. Promote moral behavior
C. Maximize sales
D. Maintain monopoly
Answer: B
63. CSR means:
A. Corporate Social Responsibility
B. Corporate Shareholder Ratio
C. Common Service Regulation
D. Company Social Reform
Answer: A
64. According to Carroll, which is the first responsibility of business?
A. Legal
B. Ethical
C. Economic
D. Philanthropic
Answer: C
65. CSR includes:
A. Environmental responsibility
B. Community development
C. Ethical practices
D. All of these
Answer: D
66. Corporate governance ensures:
A. Profit only
B. Transparency and accountability
C. More sales
D. Tax reduction
Answer: B
67. Who regulates corporate governance in India?
A. SEBI
B. RBI
C. NITI Aayog
D. TRAI
Answer: A
68. Value-based organization is guided by:
A. Profit maximization
B. Shared ethical values
C. Productivity goals
D. Competition
Answer: B
69. The ethical dilemma arises when:
A. Law is violated
B. Right vs Right conflict occurs
C. Competition is high
D. Profit decreases
Answer: B
70. Triple Bottom Line of CSR includes:
A. Profit, People, Planet
B. Money, Market, Media
C. Power, Policy, Profit
D. Product, Price, Promotion
Answer: A
🔹 Section J – Decision Tools & Quantitative Methods
71. Break-even point is the level where:
A. Total cost = Total revenue
B. Cost > Revenue
C. Profit is maximum
D. Cost < Revenue
Answer: A
72. PERT stands for:
A. Program Evaluation and Review Technique
B. Project Evaluation and Resource Technique
C. Performance Evaluation and Reporting Tool
D. None
Answer: A
73. CPM focuses mainly on:
A. Cost optimization
B. Time optimization
C. Both time and cost
D. Human resource
Answer: C
74. Expected Monetary Value (EMV) is used in:
A. Decision under certainty
B. Decision under risk
C. Decision under uncertainty
D. Routine tasks
Answer: B
75. Simulation models are used in:
A. Risk analysis
B. Motivation
C. HR Planning
D. Legal compliance
Answer: A
76. Game theory helps in:
A. Coordination
B. Conflict resolution
C. Competitive strategy
D. Planning
Answer: C
77. Linear Programming aims at:
A. Maximizing objective under constraints
B. Minimizing risk
C. Motivating employees
D. Reducing span of control
Answer: A
78. Decision Tree represents:
A. Sequential decisions
B. HR policies
C. Organization chart
D. Flowchart
Answer: A
79. Heuristic decision making relies on:
A. Experience and judgment
B. Data analysis
C. Statistics
D. Group discussion
Answer: A
80. The primary limitation of heuristic approach is:
A. Slow
B. Biased or inaccurate
C. Expensive
D. Complex
Answer: B
🔹 Section K – Quick Concepts
81. Management as an art emphasizes:
A. Application of skills and creativity
B. Development of rules
C. Quantitative tools
D. Legal framework
Answer: A
82. Management as a science emphasizes:
A. Measurement and universal laws
B. Intuition
C. Human behavior
D. Politics
Answer: A
83. A manager at lower level mainly uses:
A. Conceptual skills
B. Technical skills
C. Political skills
D. Analytical skills
Answer: B
84. Planning provides:
A. Direction
B. Control
C. Structure
D. Communication
Answer: A
85. Leadership involves primarily:
A. Planning
B. Motivation and guidance
C. Staffing
D. Controlling
Answer: B
86. Which is NOT a function of management?
A. Coordinating
B. Motivating
C. Auditing
D. Controlling
Answer: C
87. Organizing involves:
A. Assigning tasks and resources
B. Measuring performance
C. Setting objectives
D. None
Answer: A
88. Controlling involves:
A. Monitoring results
B. Taking corrective action
C. Comparing actual with planned performance
D. All of the above
Answer: D
Explanation: Controlling includes measuring performance, comparing it with standards, and taking corrective measures.
89. The principle of “Scalar Chain” refers to:
A. Unity of command
B. Chain of authority from top to bottom
C. Employee remuneration
D. Communication barriers
Answer: B
Explanation: Scalar chain ensures a clear line of authority from higher to lower levels.
90. Which of the following is NOT a part of Fayol’s 14 principles?
A. Unity of Direction
B. Division of Work
C. Scientific Management
D. Equity
Answer: C
Explanation: Scientific Management was proposed by Taylor, not Fayol.
91. The “Unity of Direction” principle implies:
A. One plan for one group of activities
B. One boss for each employee
C. One department for each plan
D. Centralized control
Answer: A
Explanation: Unity of direction ensures coordinated efforts under one plan.
92. Motivation is primarily a part of which management function?
A. Planning
B. Organizing
C. Directing
D. Controlling
Answer: C
Explanation: Motivation, leadership, and communication are part of directing.
93. Coordination is called the _______ of management.
A. Essence
B. Element
C. Extension
D. Function
Answer: A
Explanation: Coordination integrates all managerial functions, hence called its essence.
94. Feedback is essential for:
A. One-way communication
B. Two-way communication
C. Formal communication only
D. None
Answer: B
Explanation: Feedback completes the two-way communication process.
95. Which of the following is an example of upward communication?
A. Orders from superior
B. Complaints from subordinates
C. Instructions from manager
D. Circulars
Answer: B
Explanation: Upward communication flows from lower to higher levels.
96. When the decision-maker knows all outcomes, it is:
A. Decision under risk
B. Decision under certainty
C. Decision under uncertainty
D. None
Answer: B
Explanation: Under certainty, results of each alternative are known.
97. The process of transferring authority to subordinates is called:
A. Delegation
B. Decentralization
C. Centralization
D. Devolution
Answer: A
Explanation: Delegation means giving authority and responsibility to subordinates.
98. Corporate governance mainly aims to protect:
A. Government interest
B. Shareholders and stakeholders’ interest
C. Customers only
D. Employees only
Answer: B
Explanation: Corporate governance ensures fairness, accountability, and transparency for stakeholders.
99. The highest level of CSR according to Carroll’s Pyramid is:
A. Economic
B. Legal
C. Ethical
D. Philanthropic
Answer: D
Explanation: Philanthropic responsibility is voluntary and represents the top of Carroll’s CSR pyramid.
100. Value-based organizations are focused on:
A. Ethical conduct and social responsibility
B. Profit maximization only
C. Technology adoption
D. Financial growth
Answer: A
Explanation: Value-based organizations operate on ethical values and moral leadership.
