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SYBCOM Business Management – Complete Question Bank (Modules 1–3): 17 MCQs with answers

All 17 multiple-choice questions from this kit, free and with no sign-up.

Full kit · everything Flashcards · 22 Quick Revision · 26

Warm-up · 5 questions

Q1. A factory produces goods at very low cost with almost no wastage, but the goods do not sell because customers do not want them. Which statement best describes this situation?

Beginner
A The factory is effective but not efficient. B The factory is efficient but not effective. C The factory is neither efficient nor effective. D The factory is both efficient and effective.
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The factory is efficient but not effective.

Efficiency means minimum wastage, which the factory achieves. Effectiveness means achieving the right objectives, which it fails because nobody buys the goods.

Q2. Which of the following is NOT a function of management?

Beginner
A Staffing B Controlling C Planning D Manufacturing
Show answer & explanation

Manufacturing

The five functions are planning, organizing, staffing, directing and controlling. Manufacturing is an operational activity, not a management function.

Q3. Assertion (A): Management is called a continuous process. Reason (R): The management cycle restarts whenever plans are revised. Choose the correct option.

Beginner
A Both A and R are true, but R does not explain A. B A is false but R is true. C A is true but R is false. D Both A and R are true, and R correctly explains A.
Show answer & explanation

Both A and R are true, and R correctly explains A.

Management functions repeat in a cycle, and the cycle restarts when plans are revised — this repetition is exactly why management is continuous.

Q4. In which management function does a manager compare actual performance with standards and correct deviations?

Beginner
A Staffing B Planning C Directing D Controlling
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Controlling

Controlling is the function of comparing actual performance with standards and taking corrective action.

Q5. Management is a continuous, universal and goal-oriented process that coordinates human, financial, physical and informational resources to achieve objectives efficiently and effectively.

Beginner
A True B False
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True

Management is a continuous, universal and goal-oriented process that coordinates human, financial, physical and informational resources to achieve objectives efficiently and effectively.

Building up · 7 questions

Q6. A manager sets a target of 500 units per day and then checks every evening whether the target was met. Which pair of functions is being used?

Intermediate
A Staffing and directing B Organizing and staffing C Planning and controlling D Directing and organizing
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Planning and controlling

Setting the target is planning; checking performance against it is controlling. Plans provide the standards control measures against.

Q7. In MBO, which feature is most essential for the system to succeed?

Intermediate
A Objectives jointly set by managers and employees B Replacing all formal reporting channels C Ignoring routine deviations from standards D Targets imposed strictly from the top
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Objectives jointly set by managers and employees

MBO works through joint goal setting between managers and employees; it fails when targets are imposed from the top.

Q8. A production manager ignores minor daily fluctuations in output but immediately investigates a sudden 30% drop in production. Which principle is being applied?

Intermediate
A Unity of direction B Management by Exception C Span of control D Management by Objectives
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Management by Exception

MBE concentrates managerial attention on significant deviations while routine matters are handled at lower levels.

Q9. Which of the following is a component of a Management Information System?

Intermediate
A Procedures and networks B Esprit de corps C Span of control D Unity of command
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Procedures and networks

MIS components are people, hardware, software, data, procedures, networks, and control and security. The other options are management principles.

Q10. Statement I: Unity of command means one plan for one objective. Statement II: Unity of direction means one boss for one employee. Statement III: Fayol's principles are guidelines, not rigid laws. Which statements are correct?

Intermediate
A Only II and III are correct. B Only III is correct. C All three statements are correct. D Only I and II are correct.
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Only III is correct.

Statements I and II swap the definitions. Unity of command is about people (one boss), unity of direction is about activities (one plan). Only III is correct.

Q11. A company gives a supervisor the duty of completing a project but grants no power to assign work or approve expenses. Which principle of delegation is violated?

Intermediate
A Esprit de corps B Parity of authority and responsibility C Unity of command D Scalar chain
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Parity of authority and responsibility

Responsibility without matching authority makes delegation ineffective; authority must equal responsibility.

Q12. Which of the following is a barrier to effective delegation?

Intermediate
A Clear communication of duties B Fear of losing control by the manager C Adequate training of subordinates D Proper control and follow-up
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Fear of losing control by the manager

Fear of losing control, lack of confidence, poor communication and inadequate training are barriers. The other options are enablers of good delegation.

Topper level · 5 questions

Q13. A manager of a small team with simple, standardized work and highly skilled employees can effectively supervise more people than a manager of a complex, geographically spread team. Which concept does this illustrate?

Advanced
A Departmentalization by process B Factors affecting span of control C The scalar chain principle D Subordination of individual interest
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Factors affecting span of control

Span of control widens when work is simple, employees are skilled, delegation is effective and rules are standardized; it narrows when work is complex or dispersed.

Q14. A company groups its activities into units for North India, South India and East India. Which basis of departmentalization is being used?

Advanced
A Product B Process C Functional D Geographical
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Geographical

Grouping activities by region is geographical departmentalization. Functional is by type of work, product by goods, process by production stage.

Q15. A manager delegates a task to a subordinate. The subordinate performs it poorly. Who remains accountable for the result?

Advanced
A Nobody, since the task was formally delegated. B The manager, because accountability cannot be delegated. C The subordinate, since the task was assigned to them. D Both share accountability equally by default.
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The manager, because accountability cannot be delegated.

Authority can be delegated and responsibility assigned, but accountability always stays with the manager who delegated the work.

Q16. A firm faces a rapidly changing market and uses different management styles for its stable and unstable divisions. Which modern approach does this reflect?

Advanced
A Bureaucratic Management B Contingency Approach C Scientific Management D Quantitative Approach
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Contingency Approach

The Contingency Approach holds that there is no single best way to manage; the right method depends on the situation, environment and nature of work.

Q17. A manager is tasked with improving the efficiency of a production line while ensuring that the output meets customer demands. The manager decides to implement a new scheduling system that allows for flexibility in production based on real-time sales data. Which management function is primarily being utilized in this scenario, and what is the expected outcome?

Advanced
A Organizing; it involves arranging resources for the new scheduling system. B Controlling; it will ensure that production aligns with customer demand. C Directing; it focuses on guiding employees to adapt to the new system. D Planning; it outlines the steps for implementing the new system.
Show answer & explanation

Controlling; it will ensure that production aligns with customer demand.

The correct option is 'Controlling; it will ensure that production aligns with customer demand.' This is because the manager is monitoring and adjusting the production process based on real-time data, which is a key aspect of the controlling function, ensuring that the output meets the necessary standards and customer…

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