AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Business Studies

Principles of Management

Standard difficulty · 20 questions · 40 marks · Time: 38 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.
Fayol’s principle that an employee should get orders from only one boss is:
  1. scalar chain
  2. order
  3. unity of direction
  4. unity of command
2.
Workers and managers both honour the agreed rules and the terms of their contracts. Which principle of Fayol is followed or broken?
  1. discipline
  2. equity
  3. esprit de corps
  4. order
3.
The firm studies how often workers need rest breaks to avoid tiring them. Which technique of scientific management is this?
  1. standardisation
  2. method study
  3. functional foremanship
  4. fatigue study
4.
Which of these shows Taylor’s principle “science, not rule of thumb”?
  1. Habit and guesswork are replaced by careful study of each task.
  2. Management and workers share responsibility instead of each working alone.
  3. Workers’ suggestions are welcomed, and managers work alongside them.
  4. Managers and workers stop fighting and share the gains of higher output.
5.
Under functional foremanship, who keeps machines and tools ready for workers?
  1. speed boss
  2. time and cost clerk
  3. disciplinarian
  4. gang boss
6.
Under the differential piece wage system, the standard output is 8 units a day. Workers get ₹65 a unit at or above standard and ₹50 a unit below it. What does a worker who makes 8 units earn in a day?
  1. ₹410
  2. ₹400
  3. ₹520
  4. ₹570
7.
Time study shows that a worker needs 4 minutes to finish one unit. What should the standard output be in an 8-hour shift?
  1. 120 units
  2. 60 units
  3. 32 units
  4. 124 units
8.
Which is a feature of principles of management?
  1. they are fixed by law and cannot be adapted
  2. they are exact like laws of physics
  3. they are formed by practice and experiment
  4. they apply only to factories
Section B — Short answer8 × 2 = 16 marks
9.
What are principles of management?
10.
Name the principle of Fayol shown in each case. (a) The firm avoids frequent transfers so that workers settle into their jobs. (b) The manager says “we” instead of “I” and builds team spirit.
11.
Name the technique of scientific management. (a) The movements of a worker fitting a part are studied to remove wasteful ones. (b) Engineers study the whole process to find the best way to do the job.
12.
Which principle of scientific management does each show? (a) Workers’ suggestions are welcomed, and managers work alongside them. (b) Workers are selected scientifically and trained to their best efficiency.
13.
Under functional foremanship, who does each job, and under which in-charge does he work? (a) Keeps machines in working order (b) Makes sure work is completed at the right speed and on time
14.
Standard output is 15 units a day; the rate is ₹55 a unit for those who reach it and ₹50 for those who do not. Worker A makes 20 units and worker B makes 13. Find each one’s daily wage.
15.
Time study shows one unit takes 15 minutes. Fatigue study suggests 30 minutes of rest in a 7-hour shift. What is the standard output for the shift?
16.
Which principle of management applies in each case? Explain it. (a) One head and one plan are fixed for the new export drive. (b) The manager says “we” instead of “I” and builds team spirit.
Section C — Word problems4 × 4 = 16 marks
17.
Explain the significance of principles of management.
18.
Read about Tarang Motors Ltd. (a) Workers are treated fairly, with no favour shown to anyone. (b) Work is divided into small tasks given to workers trained for each. (c) The firm celebrates its team’s success together to build harmony. Identify the principle of management in each part and explain it briefly.
19.
Read about Brightway Toys Ltd. (a) The firm cuts the number of sizes of its shirts from twelve to five. (b) Eight specialists, such as a speed boss and an inspector, each give workers orders in their field. (c) The firm studies how often workers need rest breaks to avoid tiring them. Identify the technique of scientific management in each part and explain it briefly.
20.
Brightway Toys Ltd pays by Taylor’s differential piece wage system: standard 25 units a day, ₹60 a unit at or above standard and ₹40 below. Sana makes 29 units, Tanvi 25 and Dev 24. (a) Find each worker’s wage. (b) By how much would Dev gain by reaching the standard? (c) What is the aim of this system?
AmbifulWorksheets
Practice that never repeats
CBSE · Class 12 · Business Studies

Answer key

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

QAnswerWorking
1(d) unity of command—
2(a) discipline—
3(d) fatigue study—
4(a) Habit and guesswork are replaced by careful study of each task.—
5(d) gang boss—
6(c) ₹5208 × 65
7(a) 120 units8 × 60 ÷ 4
8(c) they are formed by practice and experiment—
9Broad and general guidelines for managerial decision making and behaviour.—
10(a) stability of personnel (b) esprit de corps—
11(a) motion study (b) method study—
12(a) cooperation, not individualism (b) development of each person to his greatest efficiency—
13(a) repair boss, under the production in-charge (b) speed boss, under the production in-charge—
14A ₹1,100; B ₹65020 × 55; 13 × 50
1526 units(7 × 60 − 30) ÷ 15
16(a) unity of direction: one head and one plan for activities with the same objective (b) esprit de corps: team spirit and harmony among employees—
17They give managers useful insights into reality, help optimum use of resources, support scientific decisions, help meet changing needs, fulfil social responsibility, and help in training and research.—
18(a) equity: kindness and justice in the treatment of employees (b) division of work: work is divided into small tasks for specialists (c) esprit de corps: team spirit and harmony among employees—
19(a) simplification: removing needless varieties (b) functional foremanship: separate specialist foremen for planning and production (c) fatigue study: fixing rest intervals—
20(a) Sana ₹1,740, Tanvi ₹1,500, Dev ₹960 (b) ₹540 (c) to reward efficient workers and push others to improve29 × 60; 25 × 60; 24 × 40; 25 × 60 − 960