Commerce Accountancy

Business and Project Management

1,444 Questions

Business and project management focus on organizational resources, strategic planning, and time management techniques used to achieve corporate objectives. It includes theories of administration and continuous improvement processes. Review these commerce and management questions to prepare for business administration sections in competitive exams.

Strategic managementTime managementOrganizational resourcesAdministration principles

Business and Project Management Questions

Multiple choice

A team is designing the backup and recovery strategy for a company. Management's priority is to minimize downtime. Which business requirement should they focus on?

  1. MTBF

  2. RMAN

  3. MTTR

  4. Evolutionary Process
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

MTTR (Mean Time To Recovery) measures how quickly the system can be restored after a failure. When management wants to minimize downtime, MTTR is the business requirement to optimize. MTBF (Mean Time Between Failures) measures reliability/frequency of failures, not recovery speed. RMAN is a tool, not a business requirement.

Multiple choice

How to reduce the risk of Death Spiral in Accounting?

  1. By increasing price

  2. By decreasing price

  3. By using of activity based costing

  4. By keeping the stock dead for sometime

  5. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Death spiral term is taken from cost accounting. It is bad situation of company when company's sale decreases rapidly.  The cost of each of these activities will be assigned only to the products that demanded the activities.

Multiple choice

Planning is a process.

  1. Goal oriented

  2. Flexible

  3. Time bound

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Planning is inherently goal-oriented (provides direction), flexible (adaptable to changing circumstances), and time-bound (specific timelines). All three characteristics are essential features of the planning process.

Multiple choice

Business plans designed to achieve the organizational objectives is called

  1. Human Resource Planning

  2. Human Resource Forecasting

  3. Strategic Plan

  4. Corporate Development Plan
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Strategic planning is a systematic process of envisioning a desired future, and translating this vision into broadly defined goals or objectives and a sequence of steps to achieve them.

Multiple choice

Which of the following systems includes the number of decisions in the operational management and the same at the middle management that are based on one or two aspects of a decision making situation?

  1. Probabilistic system

  2. Tactical information system

  3. Closed system

  4. Status enquiry system

  5. Abstract system
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Explanation: The number of decisions at operational management and middle management are such that they are based on one or two aspects of a decision making situation.

Multiple choice

_________ is the primary function of management.

  1. Planning

  2. Budgeting

  3. Controlling

  4. Organization
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Planning is the primary function of management which requires determination of the action and the decision making based on purpose, knowledge, and considered estimates.

Multiple choice

From the managerial point of view, policies are

  1. guide to thinking in decision-making

  2. all the activities of management

  3. a series of steps to be taken

  4. outlines of plan of work to be carried out in proper sequence
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A set of policies are principles, rules and guidelines formulated or adopted by an organization to reach its long-term goals and typically published in a booklet or other form that is widely accessible.

Multiple choice

Albert S. Humphery was the originator of

  1. SWOT Analysis

  2. Industry Analysis

  3. GE Model

  4. BCG Matrix
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Albert S. Humphrey was an American business and management consultant who devised the SWOT analysis technique.

Multiple choice

Directions: The passage given below is followed by four alternative summaries. Choose the option that best captures the essence of the passage. Key in the number of the option you choose as your answer.

Most often today, the difference between a company and its competitor is the ability to execute. If your competitors are executing better than you are, they are beating you here and now, and the financial markets won’t wait to see if your elaborate strategy plays out. So, leaders who can’t execute don’t get free runs anymore. Execution is the great unaddressed issue in the business world today. Its absence is the single biggest obstacle to success and the cause of most of the disappointments that are mistakenly attributed to other causes.

  1. A proper execution of a strategy even in parts can turn the financial markets in a business’s favour.

  2. Execution has the power to offer a competitive advantage, the fact, though, remains obscured by more recognisable causes.

  3. The changed business scenario has placed new demands before the leaders of today – execution of the entire strategy.

  4. The increased importance of execution is reflected in the fact that the lack of it is widely acknowledged for a business’s failure.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation
  1. Not true. There is no guarantee that proper execution shall make financial markets favour a business. This is not what the author says.
    1. True. “Execution is the great unaddressed issue in the business world today” makes the option clear.
    2. True, however, what makes execution a determinant of success or failure is better structured in option 2.
    3. Not true. There may still be other causes to a business’s failure.
Multiple choice

Which of the following is NOT a demerit of the Product Diversification?

  1. Risk involved

  2. Trap of full-line competition

  3. Huge investment

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Product diversification involves expanding the product range, which has several drawbacks. Risk involvement means entering unknown markets with uncertain outcomes. The trap of full-line competition occurs when competitors attack across all product lines, and huge investment is required for R&D, production, and marketing of new products. Since all options A, B, and C are actual demerits of product diversification, option D correctly identifies that none of these is 'NOT a demerit' - meaning all are demerits.

Multiple choice

Calculate danger level when Normal Usage or Average daily requirement - 7,500 units per day Maximum Usage - 8,500 units per day Minimum Usage - 7,000 units per day Re-order period - 25 to 30 days Time required to receive emergency supplies - 5 days

  1. 37,000 units

  2. 37,500 units

  3. 42,500 units

  4. 35,000 units
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It is 37,500 units. Danger level - Average daily requirement X Time required to get emergency                                                                                  Supply                                                   7,500 X 5  = 37,500 units Danger level of stock is that if the stock reaches below this level, urgent action for replenishment of stock must be taken to prevent stock-out-position.                                                                                

Multiple choice

An enterprise resource planning is used to

  1. design and generate reports

  2. manage internal and external resources

  3. spot and analyse business data

  4. create programs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Enterprise resource planning is used to manage internal and external resources.

Multiple choice

The General theory of Administration by Henry Fayol is applicable at which level?

  1. Top management level

  2. Middle management level

  3. Board managment level

  4. Policy management level
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Fayol's Administrative Theory was developed from his experience as a senior manager and is primarily focused on top-level management functions like planning, organizing, commanding, coordinating, and controlling. While applicable at all levels, it's most relevant to top management where strategic decisions are made.