business studies class XII Quiz-6

The function of organising allows the organisational structure to be suitably modified to pave way for

smooth transition. Which importance of Organising is referred to here?

• Devolopment of personnel

• Clarity in working relationship

• Expansion and growth

• Adaptation to change

______ is the formal lines of authority and communication that runs from top to bottom in an organisation.

• Scalar chain

• Method study

• Functional foremanship

• Motion study

Numen Pens Private Limited earned a net profit of `67 crores. Arun, the Finance Manager, wants to

decide how to appropriate these profits. Identify the decision that Arun will have to take.

• Dividend decision

• Financing decision

• Investment decision

• None of these

Which of the following is an importance of the Delegation of Authority?

• Limited in scope

• Effective management

• Develops initiative amongst subordinates

• Both Limited in scope

  and Effective management

Mr. Kukreja and his son were discussing about investing funds in the market. His son said that theywanted to earn high yield of return irrespective of the risk involved in it. Mr. Kukreja and his son were talking about the ‘market’ which is:

• Secondary market

• Primary market

• Money market

• Commodity market

Assertion (A): Delegation is an optional policy decision and is done at the discretion of top management.

Reason (R): No individual can perform all tasks on his own.

• Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion

  (A)

• Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of

  Assertion (A)

• Assertion (A) is true, but Reason (R) is false

• Assertion (A) is false, but Reason (R) is true

If a firm has a higher Debt Service Coverage Ratio, this implies:

• it has higher requirement of fixed capital.

• it has lower requirement of working capital.

• it can increase debt component in its capital structure.

• None of these

Arrange the following steps in the process of organising in the correct sequence:

(i) Assignment of duties

(ii) Departmentalisation

(iii)Identification and division of work

(iv)Establishing reporting relationship

Choose the correct option:

• (iii), (ii), (iv), (i)

• (ii), (iii), (i), (iv)

• (i), (ii), (iv), (iii)

• (iii), (ii), (i), (iv)

Which one of these sources of recruitment has the disadvantage of bringing a flood of response from unsuitable candidates?

• Labour contractors

• Employment exchange

• Advertisement

• Recommendation of employees

Which of the following is not a step of Organising process?

• Grouping of activities

• Granting authority

• Establishing reporting relationships

• Analysing deviation