Introduction to Management – Financial and Strategic Management MCQ

Students should practice Introduction to Management – CS Executive Financial and Strategic Management MCQ Questions with Answers based on the latest syllabus.

Introduction to Management – Financial and Strategic Management MCQ

Question 1.
The word “management” derives its origin from a word__
(A) monos
(B) konos
(C) nomos
(D) lomos
Answer:
(C) nomos

Question 2.
Who stated that management means, “Getting things done through and with people”?
(A) James
(B) Koontz and O’Donnell
(C) Haimann
(D) Henry Fayol
Answer:
(B) Koontz and O’Donnell

Question 3.
According to whom “to manage is to forecast, and to plan, to organize to command, to coordinate and to command”?
(A) Haimann
(B) Koontz and O’Donnell
(C) Hick
(D) Henry Fayol
Answer:
(D) Henry Fayol

Question 4.
The word “management” derives its origin from the word nomos.
(A) Roman
(B) Italian
(C) Greek
(D) Egyptian
Answer:
(C) Greek

Question 5.
“Management is the function of getting things done through people and directing the efforts of individuals towards a common objective”. It is observed by –
(A) Haimann
(B) Koontz and O’Donnell
(C) Hick
(D) Henry Fayol
Answer:
(A) Haimann

Question 6.
Hick defines management as “the process of getting things done by the and through the ”.
(A) People, Manager
(B) People, employee
(C) People, people
(D) Manager, People
Answer:
(C) People, people

Question 7.
Koontz & O’Donnell state that man¬agement means, “Getting things done
(A) Through people
(B) With people
(C) Through or with people
(D) Through and with people
Answer:
(D) Through and with people

Question 8.
According to Henry Fayol, “to man¬age is, to organize to command, to coordinate and to command”
(A) To forecast
(B) To plan
(C) To budget and to control
(D) To forecast and plan
Answer:
(D) To forecast and plan

Question 9.
Haimann observes that “management is the function of
(A) Getting things done through people and directing the efforts of individuals towards a common objective.
(B) Forecast, and to plan, to organize to command.
(C) The process of getting things done by the people and through the people.
(D) Thinking and utilizing human, material & financial resources in such a manner that would result in the best combination.
Answer:
(A) Getting things done through people and directing the efforts of individuals towards a common objective.

Question 10.
Which of the following is important to management?
(1) It arranges the factors of production, assembles, and organizes the resources.
(2) It helps the country to keep a balanced approached to the social order.
(3) Itutilizesallthephysical&human resources productively.
(4) It helps, the employees to get a stronger trade union.
(5) It gets maximum results through minimum input by proper planning and by using minimum input.
Select the correct answer from the
options given below –
(A) (4), (2) & (1)
(B) (3), (2) & (5)
(C) (1) & (3)
(D) (3), (1) & (5)
Answer:
(D) (3), (1) & (5)

Question 11.
Importance of management:
(A) It enables the organization to survive in changing environment.
(B) It improves the standard of living and increases profit which is beneficial to business and society.
(C) Management fills up various positions with the right persons, having the right skills, training, and qualification.
(D) All of the above
Answer:
(D) All of the above

Question 12.
Which of the following statement is false?
(A) Management can then well be described as a science albeit a variable one if compared with the nature of exact physical sciences.
(B) We can have the same kind of experimentation in management as is possible in natural sciences.
(C) Management has now a theoretical base with a number of principles relating to coordination, organization, decision-making, and so on.
(D) Management is a vital function concerned with all aspects of the working of an enterprise.
Answer:
(B) We can have the same kind of experimentation in management as is possible in natural sciences.

Question 13.
Management is___science.
(A) Exact
(B) An inexact
(C) Pure
(D) Perfect
Answer:
(B) An inexact

Question 14.
Management is___science.
(A) Developed
(B) Developing
(C) Well settled
(D) Exact
Answer:
(B) Developing

Question 15.
Management is –
(A) Science
(B) Art
(C) Both Science and Art
(D) History
Answer:
(C) Both Science and Art

Question 16.
Management is an art. Which of the following statement does not support that management is art?
(A) Process of management involves the use of know-how and skills.
(B) Process of management is directed towards the accomplishment of concrete results.
(C) Management is personalized in the sense that every manager has his own approach to problems.
(D) It deals with complex human phe¬nomena about which knowledge is still limited
Answer:
(D) It deals with complex human phe¬nomena about which knowledge is still limited

Question 17.
Management qualifies all tests of a profession except
(A) Dominance of service motive
(B) Restricted entry
(C) Systematic body of knowledge
(D) Use of knowhow and skills
Answer:
(D) Use of knowhow and skills

Question 18.
Who is popularly known as the ‘founder of modern management theory?
(A) Frederick Taylor
(B) Luther Gulick,
(C) Newmann and Summer
(D) Henry Fayol
Answer:
(D) Henry Fayol

Question 19.
Henry Fayol, the industrialist and popularly known as the ‘founder of modern management theory,
(A) German
(B) French
(C) Greek
(D) American
Answer:
(B) French

Question 20.
Planning is deciding in advance –
(A) What is to be done
(B) How is to be done
(C) When it is to be done
(D) All of above
Answer:
(D) All of above

Question 21.
Which of the following is the preparatory step for actions and helps in bridging the gap between the present and the future?
(A) Controlling
(B) Directing
(C) Motivating
(D) Planning
Answer:
(D) Planning

Question 22.
Which of the following comprises determination and laying down of objectives, policies, procedures, rules, programs, budget, and strategies?
(A) Motivating process
(B) Planning process
(C) Controlling the process
(D) Directing process
Answer:
(B) Planning process

Question 23.
Which of the following is a fundamental function of management and all other functions of management are greatly influenced by it?
(A) Controlling
(B) Directing
(C) Motivating
(D) Planning
Answer:
(D) Planning

Question 24.
___is concerned with both the “orderly” assemblage of human and material resources as well as the process of development of a structure of formally identified and distinguished tasks, roles and relationships that may
be attributable to the various members so that they may effectively work as a group.
(A) Planning
(B) Directing
(C) Organizing
(D) Staffing
Answer:
(C) Organizing

Question 25.
Organizing as a function of management involves –
(A) Determination of activities of the enterprise keeping in view its objectives.
(B) Laying down of suitable selection and placement procedures
(C) Guiding, counseling, and instructing the subordinates about the proper way of doing the job
(D) Measurement of actual performance against the standard and recording deviations
Answer:
(A) Determination of activities of the enterprise keeping in view its objectives.

Question 26.
Division of work among people and coordination of their efforts to achieve specific objectives are the fundamental aspects of –
(A) Forecasting
(B) Organization
(C) Motivation
(D) None of the above
Answer:
(B) Organization

Question 27.
__provides the organization with an adequate number of competent and qualified personnel at all levels in the enterprise.
(A) Motivation process
(B) Directing process
(C) Forecasting process
(D) HR process/staffing
Answer:
(D) HR process/staffing

Question 28.
Which of the following function of management starts issuing orders and instructions to subordinates and ends with getting things done by the satisfaction of the various needs of subordinates?
(A) Motivation
(B) Directing
(C) Forecasting
(D) Staffing
Answer:
(B) Directing

Question 29.
Directing the subordinates involves___
(A) Delegation of authority and fixing of responsibility for carrying out the assigned duties.
(B) Guiding, counseling, and instructing the subordinates about the proper way of doing the job.
(C) Coordination of activities and authority relations throughout the organization.
(D) Classification of activities into convenient groups for the purpose of division.
Answer:
(B) Guiding, counseling, and instructing the subordinates about the proper way of doing the job.

Question 30.
Control___
(A) Is closely related to the planning job of the manager.
(B) Should not be viewed merely as a postmortem of past achievements and performance.
(C) Should suggest corrective measures so that negative deviations may not re-occur in the future.
(D) All of the above
Answer:
(D) All of the above

Question 31.
Maintaining discipline and reward¬ing effective performance is part of the function of management.
(A) Planning
(B) Directing
(C) Forecasting
(D) Staffing
Answer:
(B) Directing

Question 32.
Which of the following consists in knowing the extent to which actions are in conformity with plans adopted and instructions issued so that errors and deviations are promptly reported and analyzed, and suitable corrective actions were taken?
(A) Forecast
(B) Planning
(C) Controlling
(D) Decision
Answer:
(C) Controlling

Question 33.
Controlling involves:
(A) Harmonizing the work relations and efforts at all levels for a common purpose.
(B) Innovation because the manager not only adjusts his organization according to future conditions but also attempts to effect changes in these conditions.
(C) Measurement of actual performance against the standard and recording deviations.
(D) Issuing orders and instructions.
Answer:
(C) Measurement of actual performance against the standard and recording deviations.

Question 34.
Which of the following is not one of the five elements of management?
(A) Planning
(B) Co-ordination
(C) Centralization
(D) Command
Answer:
(C) Centralization

Question 35.
Control is closely related to the ___job of the manager.
(A) Planning
(B) Discipline
(C) Order
(D) Motivation
Answer:
(A) Planning

Question 36.
Who is popularly known as the father of ‘scientific management?
(A) Luther Gulick
(B) Newmann
(C) Henry Fayol
(D) Frederick Taylor
Answer:
(D) Frederick Taylor

Question 37.
The scientific management movement early in the___century was hailed as a “second industrial revolution”.
(A) Seventieth
(B) Eightieth
(C) Ninetieth
(D) Twentieth
Answer:
(D) Twentieth

Question 38.
Who is popularly known as the father of ‘modern management theory?
(A) Luther Gulick
(B) Newmann
(C) Henry Fayol
(D) Frederick Taylor
Answer:
(C) Henry Fayol

Question 39.
How many principles of management have been suggested by Henry Fayol?
(A) Ten
(B) Twelve
(C) Fourteen
(D) Fifteen
Answer:
(C) Fourteen

Question 40.
Out of principles of management suggested by Henry Fayol, ‘Discipline’ is necessary to ensure obedience and respect for –
(A) Juniors
(B) Society
(C) Superiors
(D) Older people in society
Answer:
(C) Superiors

Question 41.
“Unity of Command” means –
(A) An employee shall give orders to one junior only.
(B) An employee shall receive orders from one senior only.
(C) An employee shall receive orders from as many seniors as possible.
(D) An employee shall have one plan for every action.
Answer:
(B) An employee shall receive orders from one senior only.

Question 42.
“Unity of Direction’’ means –
(A) An employee shall receive orders from one senior only.
(B) A group of activities with com-mon objectives shall have one head but different plans
(C) A group of activities with com-mon objectives shall have one head and one plan
(D) More than one manager should supervise the employees.
Answer:
(C) A group of activities with com-mon objectives shall have one head and one plan

Question 43.
A group of activities with common objectives shall have one head and one plan. This principle is known as –
(A) Scalar chain
(B) Unity of discipline
(C) Unity of command
(D) Unity of direction
Answer:
(D) Unity of direction

Question 44.
An employee shall receive orders from one senior only. This principle is known as –
(A) Scalar chain
(B) Unity of discipline
(C) Unity of command
(D) Unity of direction
Answer:
(C) Unity of command

Question 45.
As per Henry Fayol principle of “Subordination” –
(A) Organizational interest should be subordinate to individual interest.
(B) Individual interest should be subordinate to the general interest.
(C) Individuals should not have any sort of interest at all.
(D) Organizational interest should be subordinate to the national interest.
Answer:
(B) Individual interest should be subordinate to the general interest.

Question 46.
Which of the following principle of Henry Fayol refers to superior-subor¬dinate relations?
(A) Esprit de corps
(B) Stability of tenure of personnel
(C) Division of work
(D) Scalar chain
Answer:
(D) Scalar chain

Question 47.
Fayol’s functions of management include:
(A) Planning, designating, completing, cooperating
(B) Punishing, commanding, organizing, coordinating, controlling
(C) Preparing, commanding, operating, consulting, controlling
(D) Planning, commanding, organizing, coordinating, controlling
Answer:
(D) Planning, commanding, organizing, coordinating, controlling

Question 48.
Which of the following principle of Henry Fayol emphasizes the need for teamwork?
(A) Esprit de corps
(B) Stability of tenure of personnel
(C) Division of work
(D) Scalar chain
Answer:
(A) Esprit decorps

Question 49.
Management is____system.
(A) Social
(B) Close
(C) An open
(D) None of above
Answer:
(C) An open

Question 50.
Scientific management is based on the assumption that –
(A) Observation would reveal the workers need to be multi-skilled.
(B) Workers can decide their own methods of performing tasks.
(C) The scientific observation of people at work would reveal the one best way to do the task.
(D) Workers would receive a set wage regardless of performance.
Answer:
(C) The scientific observation of people at work would reveal the one best way to do the task.

Question 51.
The administration is concerned with –
(A) Policy implementation
(B) Policymaking
(C) Both (A) and (B)
(D) Neither (A) nor (B)
Answer:
(B) Policymaking

Question 52.
Broadly speaking, the administration is concerned with –
(A) Planning
(B) Organizing
(C) Motivating and controlling
(D) Planning and organizing
Answer:
(D) Planning and organizing

Question 53.
The administration is done by –
(A) Top-level management
(B) Middle-level management
(C) Lower level management
(D) None of above
Answer:
(A) Top-level management

Question 54.
The Board of directors of any company is normally concerned with –
(A) Management
(B) Administration
(C) Health of managers
(D) None of above
Answer:
(B) Administration

Question 55.
The administration is a process of ____
(A) Laying down broad policies
(B) Objectives of the organization
(C) Either (A) or (B)
(D) Both (A) & (B)
Answer:
(D) Both (A) & (B)

Question 56.
It is also said that the administration is
(A) Lower level function
(B) Middle-level function
(C) Top-level function
(D) None of above
Answer:
(C) Top-level function

Question 57.
Management includes ___
(A) Administrative management
(B) Operative management
(C) Either (A) or (B)
(D) Both (A) & (B)
Answer:
(D) Both (A) & (B)

Question 58.
Administration can be viewed as:
(A) Less important than management
(B) Same thing as management
(C) Part of management
(D) Separate from management
Answer:
(C) Part of management

Question 59.
Decision-making skills are required at ____
(A) Top-level management
(B) Middle level of management
(C) All levels of management
(D) None of above
Answer:
(C) All levels of management

Question 60.
Managers require a combination of technical competence, social and human skills, and conceptual ability. Technical competence may be defined as:
(A) The ability to view the complexities of the operations of the organization as a whole, including environmental influences
(B) The ability to secure the effective use of human resources of the organization
(C) The ability to apply specific knowledge, methods, and skills to discrete tasks
(D) None of the above
Answer:
(C) The ability to apply specific knowledge, methods, and skills to discrete tasks

Question 61.
What type of approach is most frequently identified with Human Capital Management (HCM)?
(A) Controlling
(B) Interpersonal and technical
(C) Formalized, technical and manipulative
(D) Influencing and manipulative
Answer:
(C) Formalized, technical and manipulative

Question 62.
Which of the following is NOT a measure of a manager’s effectiveness?
(A) Absenteeism and sickness
(B) Level of staff turnover
(C) Accidents at work
(D) Speed of promotion through the organization
Answer:
(D) Speed of promotion through the organization

Question 63.
How you will describe the planning as a function of management?
1. An all-pervasive function
2. Fundamental function
Select the correct answer from the options given below:
(A) 2 only
(B) Neither 1 nor 2
(C) Both 1 and 2
(D) 1 only
Answer:
(C) Both 1 and 2

Question 64.
Planning is deciding in advance
(I) What is to be done?
(II) How is it to be done?
(III) When it is to be done?
(IV) Who has to do it?
Select the correct answer from the options given below –
(A) (I)
(B) (I), (II),
(C) (I), (II), (III)
(D) (I), (II), (III), (IV)
Answer:
(D) (I), (II), (III), (IV)

Question 65.
Identify the best definition of planning.
(A) An integrated process, in which plans are formulated, carried out, and controlled.
(B) Devising ways of achieving the objectives of an organization.
(C) The core activity of planners and planning departments.
(D) Setting an organization’s objectives and the means of reaching them.
Answer:
(D) Setting an organization’s objectives and the means of reaching them.

Question 66.
Planning –
(A) Involves identification and classification of activities of the enterprise
(B) Involves choosing the proper course of action from among alternatives
(C) Is based upon individual incentives rather than group incentives
(D) Give employees fresh insights into their own personalities and it can also help them understand why others sometimes respond as they do.
Answer:
(B) Involves choosing the proper course of action from among alternatives

Question 67.
Which qualities should a person possess to succeed in planning?
(I) Reflective thinking
(II) Pondering
(III) Imagination
(IV) Farsightedness
(V) Reflecting
Select the correct answer from the options given below –
(A) (I), (III) & (V)
(B) (IV), (III) & (II)
(C) (II), (III), (I) & (V)
(D) (IV), (I) & (III)
Answer:
(D) (IV), (I) & (III)

Question 68.
Limitations of planning:
(A) Planning is a continuous function of management
(B) Since the future cannot be predicted with absolute accuracy, premising is always subject to a margin of error and guesswork which are reflected in various plans based on them.
(C) Planning is an all-pervasive and a primary function of management.
(D) Planning is the selecting and relating of facts and the making and using of assumptions regarding the future in the visualization and formulation of proposed activities believed necessary to achieve desired results.
Answer:
(B) Since the future cannot be predicted with absolute accuracy, premising is always subject to a margin of error and guesswork which are reflected in various plans based on them.

Question 69.
A ___ statement defines the company’s business, its objectives, and its approach to reach those objectives.
(A) Planning
(B) Mission
(C) Forecasting
(D) Policy
Answer:
(B) Mission

Question 70.
The planning process comprises determination and laying down of –
(i) Objectives
(ii) Policies
(iii) Procedures
(iv) Rules
(v) Remuneration
Select the correct answer from the options given below –
(A) (i), (ii), (iii), (v)
(B) (i), (ii), (iii), (iv)
(C) (i), (ii), (iv), (v)
(D) (i), (iii), (iv), (v)
Answer:
(B) (i), (ii), (iii), (iv)

Question 71.
The second step involved in the planning process is the –
(A) Evaluation of alternatives
(B) Formulating derivative plans
(C) Establishment of planning premises
(D) Establishing objectives
Answer:
(C) Establishment of planning premises

Question 72.
Which of the following can be treated as an internal planning premise?
(A) Politico-technological conditions
(B) Socio-economic conditions
(C) Sales forecast
(D) Technological changes
Answer:
(C) Sales forecast

Question 73.
Which of the following can be treated as an external planning premise?
(A) Politico-technological conditions
(B) Marketing plans
(C) Sales forecast
(D) Strategic Plans
Answer:
(A) Politico-technological conditions

Question 74.
Identify the correct steps in planning.
I. Selecting a course of action
II. Determining alternative courses
III. Establishing objectives
IV. Formulating derivative plans
V. Evaluation of alternatives
VI. Establishment of planning premises
Select the correct answer from the options given below –
(A) III, VI, II, IV, I, V
(B) VI, III, II, V, I, IV
(C) III, IV, II, V, I, VI
(D) III, VI, II, V, I, IV
Answer:
(D) III, VI, II, V, I, IV

Question 75.
Identify correct steps in forecasting.
I. Analysis of deviations
II. Forecasting future course of business
III. Improving the existing forecasting procedure
IV. Identifying and developing the structure
Select the correct answer from the options given below –
(A) II, IV, I, III
(B) III, I, II, IV
(C) I, III, IV, II
(D) IV, II, I, III
Answer:
(D) IV, II, I, III