Master Chapter 1 – Nature and Significance of Management with Our MCQ Mock Test!

Are you ready to test how well you understand the fundamentals of management?
This MCQs-based Mock Test on “Nature and Significance of Management” is crafted specially for Class 12 Business Studies students as per the latest CBSE syllabus (2025-26).

Through this test, you’ll explore key topics such as the meaning, characteristics, objectives, importance, and levels of management, along with coordination and management as an art, science, and profession — all in a fun and exam-ready format.

Why You Should Attempt This Mock Test:
Covers all NCERT & exam-relevant concepts
Includes competency, case-based & assertion–reason MCQs
Helps identify your weak areas for focused revision
Perfect for board exam and class test preparation
Provides instant learning through answer explanations

Challenge yourself, enhance your understanding, and get one step closer to scoring full marks in Class 12 BST!
Start now — your success in Chapter 1: Nature and Significance of Management begins here.

1. ‘Thinking before doing’, under which function of management is this performed?

 
 
 
 

2. ‘SORT — IT Ltd.’ is a leading software development company. The company is satisfying the diverse needs of its employees. Its employees are given competitive salaries and perks. They have been given chance for their personal growth and development. For harmony in the organization management has to reconcile personal goals with organizational objectives.

Identify the objective of management being met by ‘SORT–IT Ltd.’

 
 
 
 

3. Which of the following is not a characteristic of science?

 
 
 
 

4. Arnav has recently started a business to sell computers. He hired a shop in Nehru Place in New Delhi, where he assembles various components to make computers and supplies them as per order. He performs a series of composite but separate functions simultaneously and ensures that computers are delivered in time as per orders. These functions are performed by all managers at all times. The feature of management highlighted above is :

 
 
 
 

5. The function of management under which performance is compared with the standards laid down is:

 
 
 
 

6. “In order to be successful, an organisation must change its goals according to the needs of the environment.” Which characteristic of management is highlighted in the given statement?

 
 
 
 

7. ITC contributes  1 on sale of its each notebook towards primary education. Identify the objective of the management is trying to achive.

 
 
 
 

8. Identify the dimension of the characteristic of management— “it is multi-dimensional”, which specifies that the task of management is to make the strengths of human resources effective and their weaknesses irrelevant towards achieving the organisation’s objectives.

 
 
 
 

9. Mr. Darshit Chauhan is working as a finance manager in Rachna Sagar Pvt. Ltd. At what level of management is he working?

 
 
 
 

10. Whose specialty happens to be ‘personal skill’?

 
 
 
 

11. ‘It acts as the binding force between departments and ensures that all action are aimed at achieving the goals of the organization.’ The statement highlights the following characteristic of co-ordination :

 
 
 
 

12. A manager obtains the required capital at 12% interest while the prevailing rate of interest happens to be 10%. How would you describe such a manager?

 
 
 
 

13. ___________ is the process of designing and maintaining the environment in which individuals, working together in groups, efficiently accomplish selected aims.

 
 
 
 

14. Which of the following features of a profession is fully satisfied by Management ?

 
 
 
 

15. To oversee the efforts of the workforce is the function of:

 
 
 
 

16. Which of the following is not a function of management?

 
 
 
 

17. The objective of management which consistently creates economic value for various constituents of society is :

 
 
 
 

18. Which of the following is not a function of lower level managers?

 
 
 
 

19. Manish is serving as a foreman in a factory. At which level of management is he working?

 
 
 
 

20. Which of the following not a feature of management?

 
 
 
 

21. Which level of management is responsible for coordinating the activities of different departments according to overall objectives of the organization?

 
 
 
 

22. Ram Murty, a Professor of Management conducted a class on ‘Management principles’ and explained to his students the significance of Management Principles. In the next class, the Professor asked his students to play roles of different managers. He gave them various situations and asked them to think like managers and provide solutions to the problems given in these situations. Each student applied the principles of management to the given situation in his own personalized manner, depending upon his creativity.

The nature of management highlighted in the above case is :

 
 
 
 

23. Which is not a function of management of the following?

 
 
 
 

24. A petrol pump needs to be managed as much as a school or a hospital. Which feature of management is being highlighted here?

 
 
 
 

25. The function of management which bridges the gap between where we are and where we want to reach is:

 
 
 
 

26. Coordination is required ______.

 
 
 
 

27. Under what function of management does the ‘corrective action’ fall?

 
 
 
 

28. ‘Arrangement of various resources for achieving target, under which function of management is this performed

 
 
 
 

29. Mr. Darshit is working as a finance manager in Wales Limited. At what level of management is he working?

 
 
 
 

30. Management is all pervasive because it is required in:

 
 
 
 

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