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

What steps are in the management process...?

  1. Plotting, Controlling, Leading, Organizing, and Building

  2. Motivation, Monitoring, and Constructing

  3. planning, organizing, leading, andcontrolling

  4. Planning, Organizing, and Controlling
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The four fundamental functions of management are planning, organizing, leading, and controlling (often abbreviated as POLC). These functions represent a continuous cycle that managers must perform to achieve organizational goals. Other options include non-standard management terms like 'plotting', 'building', or 'constructing'.

Multiple choice

Which two stakeholders might have a conflict if a VAT is increased?

  1. Owners and Employees

  2. Owners and Government

  3. Owners and Local Community

  4. Employees and Customers
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An increase in Value Added Tax (VAT) is decided by the government, which can increase prices for customers and reduce sales and profits for business owners. This creates a direct conflict of interest between the owners (who want to maximize profit) and the government (which wants to raise tax revenue).

Multiple choice

When a firm removes layers of management - this is called

  1. Downsizing

  2. Delayering

  3. Divestment

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

Delayering is the process of removing hierarchical levels or layers of management within an organization. This is often done to improve communication, speed up decision-making, and reduce costs, resulting in a flatter organizational structure.

Multiple choice

Which nemonic is used to remember the stages of the structured decision making model?

  1. POGADISIE

  2. POGADCSIE

  3. POGADSCIE

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

POGADSCIE is a mnemonic representing the stages of the structured decision-making model: Define the Problem, Identify Objectives, Gather information, Identify Alternatives, Decide, Select, Communicate, Implement, and Evaluate. The other options are incorrect spellings or unrelated terms.

Multiple choice

Which of the following is not a 'Fayol' function of management?

  1. Planning

  2. Delegating

  3. Commanding

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

Henri Fayol's five functions of management are Planning, Organising, Commanding, Coordinating, and Controlling. Delegating is not one of Fayol's original five functions, making it the correct answer to this 'not' question.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Good ______ brings about order and consistency by drawing up formal plans.

  1. leadership

  2. management

  3. vision

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

According to classic management literature, management is responsible for bringing about order and consistency through formal planning, budgeting, and structuring. Leadership, by contrast, is focused on coping with change and establishing a long-term vision. Therefore, drawing up formal plans to maintain order is a core management function.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Leaders ________.

  1. establish direction by developing a vision of the future.

  2. align people by communicating their vision.

  3. inspire people to overcome hurdles.

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

Leadership involves a comprehensive set of actions aimed at guiding an organization. This includes establishing a clear direction and vision for the future, aligning people by communicating this vision, and inspiring them to overcome obstacles. Therefore, all of the listed actions are core functions of a leader.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Gathering a range of data and looking for patterns, relationship, and linkages is a key function of ________.

  1. leadership

  2. management

  3. negotiation

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

In the context of setting organizational direction, leaders must gather diverse data and identify patterns, relationships, and linkages to formulate a strategic vision. This forward-looking, pattern-seeking activity is a core component of leadership rather than routine management.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Leadership is a function of ________.

  1. stimulation

  2. manager

  3. management

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

Leadership is the function of stimulation because it influence the behaviour of people by making them strive voluntarily towards achievement of organisational goals. Leadership indicates the ability of an individual to maintain good interpersonal relations with followers and motivate them towards achievement of organisational goals. 

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Decision-making skills are required at __________.

  1. top level management

  2. middle level of management

  3. all level of management

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Managers at all levels (top, middle, and lower) must make decisions daily to resolve problems and guide their teams. While the scope and strategic impact of the decisions vary by level, the fundamental requirement for decision-making remains constant across the entire hierarchy. Thus, decision-making is a universal managerial requirement.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

A manager should know how to identify a problem and possess the ability to find a best solution for solving any specific problem. This can be termed as ___________.

  1. technical skill

  2. leadership skill

  3. problem solving skill

  4. none of the above
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Problem-solving skill is the specific cognitive ability to identify a problem, analyze its root causes, and determine the most effective solution. While technical skills relate to specialized knowledge and leadership skills relate to influencing others, the direct process of diagnosing and resolving issues is termed problem-solving.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Which of the following statements about Leaders versus Managers is false?

  1. Leadership is a value-laden, activity, management is not

  2. Leaders focus on risk taking; managers perform functions such as planning and controlling

  3. Leaders are thought to do things right, managers do theright things

  4. Leaders develop, managers maintain
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The statement in option C is reversed. According to Warren Bennis's famous distinction, 'managers do things right, while leaders do the right things.' Therefore, option C is false, making it the correct choice for this question.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Development process is taken for.

  1. Middle and lower level people

  2. Manager & executives

  3. Debtors & creditors

  4. Chairman & Directors
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

In human resource management, 'training' typically focuses on teaching lower-level employees specific skills for their current roles. In contrast, 'development' is a broader, future-oriented process designed to enhance the conceptual and leadership skills of managers and executives.

Multiple choice organisation of commerce and management leadership leadership theories directing commerce

Minor changes are usually introduced by the_____________.

  1. Executive in charge of the activities

  2. Top management

  3. Neither (A) nor (B)

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

Executive leadership is the ability of those who manage or direct employees in an organization to influence and guide these individuals. Those leading executive leadership processes typically oversee such business activities as fulfilling organizational goals, strategic planning development and overall decision making.