Master Chapter 5 – Organising with Our MCQ-Based Mock Test!

Do you know how businesses structure their teams and define responsibilities for smooth functioning?
Test your understanding with this MCQ-Based Mock Test on “Organising”, specially designed for Class 12 Business Studies students as per the latest CBSE syllabus (2025–26).

This mock test helps you revise all crucial topics — from the meaning, importance, and process of organising to key concepts like authority, responsibility, delegation, and decentralisation. Strengthen your understanding of how effective organisation builds the backbone of every successful business.

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Includes conceptual, case-based & competency MCQs
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Enhances conceptual clarity and analytical thinking
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Attempt the Chapter 5: Organising MCQ Mock Test today and get one step closer to BST excellence.

1. Which of the following implies being responsible/ answerable for the final outcome?

Authority

Responsibility

Accountability

None of these

2. ___________ keeps the subordinates in a state where in they are constantly challenged and have to develop solutions for the various problems they encounter.

Delegation

Decentralisation

Controlling

Responsibility

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

High morale of subordinates

Develops initiative amongst subordinates

Limited in scope

Both (a) and (b)

4. Which of the following is an obligation of a subordinate to properly perform the assigned work duties?

Authority

Responsibility

Accountability

None of these

5. Identify the concept of management depicted in the picture given below:

Centralisation

Selection

Decentralisation

Recruitment

6. Organising is a process by which a manager:

Establishes order out of chaos

Removes conflict among people over work or responsibility sharing

Creates an environment suitable for team work

All of these

7. Which of the following is not the disadvantage of formal organisation?

Lack of initiative

Delay in work

Lack of favoritism

Mechanical relationship

8. Which of the following is a limitation of formal organisation?

No clear cut structure

Social interaction

Personal satisfaction

Rigidity

9. Fixing of responsibility is easy in:

Functional Structure

Divisional Structure

Both (a) and (b)

Neither (a) nor (b)

10. Which of the following is not a feature of informal organisation?

It has no written rules and procedures.

It clearly defines the authority and responsibility of every individual.

It is not deliberately created by the management.

It is personal means the feelings of individuals are kept in mind.

11. Which of the following is not an advantage of decentralisation of authority?

Quick decision-making

Facilitates growth

Relief to the management

Basis of management hierarchy

12. The form of organisation known for giving rise to rumors is called:

Centralised organisation

Decentralised organisation

Informal organisation

Formal organisation

13. Which of the following originates as a result of social interactions?

Formal Organisation

Informal Organisation

Delegation

Functional Organisation

14. Which of the following statements is true?

Accountability can be entirely delegated.

Accountability flows downward.

Accountability refers to answerability for final outcome of the assigned task.

Accountability means the right of an individual to command his subordinates.

15. Statement I: Organising leads to a systematic allocation of jobs amongst the workforce.

Statement II: This reduces the workload as well as productivity as specific workers perform a specific job on a regular basis.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

16. The process that initiates implementation of plans by clarifying jobs, working relationships and effectively deploying resources for attainment of identified and desired results is called:

Coordination

Management

Organising

Delegation

17. Which statement is not correct, with respect to ‘Organisation Structure’?

Ensures coordination among human and physical resources.

Ensures smooth flow of communication.

Specifies relationship between people, work and resources.

Establishes standards for controlling.

18. Which of the following is not an element of delegation?

Authority

Centralisation

Responsibility

Accountability

19. Statement I: Formal organisation emerges spontaneously due to interpersonal relationships amongst the employees.

Statement II: Unity of command is maintained in such an organisation.

Statement I is true and II is false

Statement II is true and I is false

Both the statements are true

Both the statements are false

20. ___________ aims at creating an organisational structure, clarifying jobs and working relationships and effectively deploying resources for the achievement of desired organisational goals.

Staffing

Organising

Planning

Controlling

21. Which structure of organisation is helpful in locating the inefficient employees?

Formal

Informal

Both of the above

None of the above

22. Which of the following is the right to command and to take decisions?

Authority

Responsibility

Accountability

None of these

23. Which of the following is a disadvantage of functional structure?

Difficulty in inter-departmental coordination

Helps in increasing managerial efficiency

Minimises cost

Coordination is established

24. Which of the following is not an advantage of functional organisational structure?

Coordination

Difficult to fix the responsibilities

Specialisation

Effective control

25. __________ is defined as the framework within which managerial and operating tasks are performed.

Span of management

Organisational structure

Informal organisation

Departmentalisation

26. For delegation to be effective, it is essential that responsibility be accompanied with necessary _______.

Authority

Manpower

Incentives

Promotions

27. The first step of organising process is:

Granting authority

Establishing reporting relationships

Identification of activities

Grouping of activities

28. Which of the following is an advantage of divisional structure?

Duplicity of functions

Quick decision-making

Selfish attitude

Conflicts

29. ‘It refers to concentration of authority at higher management levels’. Name it.

Centralisation

Decentralisation

Both (a) and (b)

Neither (a) nor (b)

30. In which organisation flow of communication takes place through scalar chain?

Formal organisation

Informal organisation

Both (a) and (b)

Neither (a) nor (b)

Question 1 of 30