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CBSE · Class 12 · Business Studies

Nature and Significance of Management

Standard difficulty · 20 questions · 40 marks · Time: 37 minutes

Name: Date: Score: ____ / 40

Show your working for Sections B and C. Answers are on the last page — try every question first!

Section A — Choose the correct answer8 × 1 = 8 marks
1.
Getting work done on time is called:
  1. coordination
  2. planning
  3. efficiency
  4. effectiveness
2.
What is meant by “coordination”?
  1. synchronising the activities of different departments
  2. leading, motivating and guiding people
  3. checking that performance goes as planned
  4. assigning tasks, grouping them and allocating resources
3.
The manager decides who reports to whom in the new factory. Which function of management is this?
  1. controlling
  2. planning
  3. organising
  4. coordination
4.
Which of these is a job of top management?
  1. Being responsible for the survival and welfare of the company
  2. Overseeing the work of operative workers
  3. Maintaining quality of output and avoiding waste on the shop floor
  4. Interpreting the policies of top management for a department
5.
The manager’s every decision aims at raising market share. Which characteristic of management does this show?
  1. pervasive
  2. intangible
  3. goal-oriented
  4. multidimensional
6.
Which of these is a social objective of management?
  1. Surviving in a competitive market
  2. Growing the business in the long run
  3. Giving employees recognition and chances to grow
  4. Giving jobs to people from weaker sections
7.
Which feature shows management as a science?
  1. Managers apply knowledge with personal skill and creativity
  2. It has associations of managers
  3. Its principles are based on experiment and observation
  4. Practice makes a manager better at it
8.
Pragati Paper Mills Ltd produced 6,900 units at a total cost of ₹2,256,300. What was the cost per unit?
  1. ₹327
  2. ₹3,270
  3. ₹32,700
  4. ₹69
Section B — Short answer8 × 2 = 16 marks
9.
What is management?
10.
Explain each term: (a) staffing (b) directing
11.
Name the function of management in each case. (a) Actual output is compared with the target and the shortfall is corrected. (b) The manager checks why costs went above the budget.
12.
Which level of management does each job belong to? (a) Setting the overall goals and strategies of the company. (b) Assigning duties to supervisors and arranging staff for a department.
13.
Which characteristic of management does each show? (a) Management functions never stop while the firm runs. (b) The manager keeps planning, organising and controlling again and again.
14.
A factory had to make 2,600 units this month within a budget of ₹277,000. It made 3,200 units on time at a cost of ₹289,000. (a) Was it effective? (b) Was it efficient?
15.
Is each an organisational, social or personal objective of management? (a) Growing the business in the long run (b) Paying employees fair salaries
16.
Two units make the same product. Aman’s unit made 4,000 units for ₹2,240,000; Kabir’s unit made 2,400 units for ₹3,432,000. Find the cost per unit of each. Which unit is more efficient?
Section C — Word problems4 × 4 = 16 marks
17.
Explain the characteristics of management.
18.
Match each with its meaning: (a) directing (b) controlling (c) organising. Choose from: leading, motivating and guiding people; assigning tasks, grouping them and allocating resources; checking that performance goes as planned.
19.
Read about Shreeji Traders Ltd. (a) The firm hires and trains ten new salespersons. (b) The manager checks why costs went above the budget. (c) The sales manager decides the targets for next year and how to reach them. Identify the function of management in each part and explain it briefly.
20.
At Tarang Motors Ltd, three managers do these jobs: (a) assigning duties to supervisors and arranging staff for a department (b) passing on workers’ problems to higher management (c) setting the overall goals and strategies of the company. Identify the level of management of each, and give one more function of each level.
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Business Studies

Answer key

Nature and Significance of Management · AW-12BS-NSM-2026-V1 · For parents — fold back or tear off before handing the sheet to your child.

QAnswerWorking
1(d) effectiveness—
2(a) synchronising the activities of different departments—
3(c) organising—
4(a) Being responsible for the survival and welfare of the company—
5(c) goal-oriented—
6(d) Giving jobs to people from weaker sections—
7(c) Its principles are based on experiment and observation—
8(a) ₹3272,256,300 ÷ 6,900
9The process of getting things done with the aim of achieving goals effectively and efficiently.—
10(a) finding the right people for the right jobs (b) leading, motivating and guiding people—
11(a) controlling (b) controlling—
12(a) top management (b) middle management—
13(a) continuous (b) continuous—
14(a) yes; (b) no3,200 ≥ 2,600; 289,000 > 277,000
15(a) organisational (b) personal—
16₹560 and ₹1,430; Aman’s unit2,240,000 ÷ 4,000; 3,432,000 ÷ 2,400
17Goal-oriented, pervasive, multidimensional (work, people, operations), continuous, a group activity, a dynamic function, and intangible.—
18(a) leading, motivating and guiding people (b) checking that performance goes as planned (c) assigning tasks, grouping them and allocating resources—
19(a) staffing: filling positions with the right people (b) controlling: comparing performance with plans and correcting deviations (c) planning: deciding in advance what to do—
20(a) middle management: also motivates departmental staff and cooperates with other departments (b) supervisory management: also maintains discipline and guides and trains workers (c) top management: also formulates policies and is responsible to the outside world—