B.COM CBCS EXAMINATION 2026
BUSINESS MANAGEMENT
COMPREHENSIVE MULTIPLE CHOICE QUESTIONS
1. Which of the following is not a function of management?
a) Planning
b) Staffing
c) Co-operation
d) Controlling
ANSWER: c) Co-operation
Rationale:
a) Planning - Incorrect. Planning is a primary function of management that involves setting objectives
and determining courses of action.
b) Staffing - Incorrect. Staffing is a recognized function of management dealing with human resource
acquisition and development.
c) Co-operation - Correct. While cooperation is important in organizations, it is not classified as a
separate function of management. It is an outcome or principle rather than a function.
d) Controlling - Incorrect. Controlling is a fundamental function of management involving monitoring
and correcting performance.
2. Management is:
a) An art
b) A science
c) Both art and science
d) Neither
ANSWER: c) Both art and science
,Rationale:
a) An art - Incorrect. While management has artistic aspects requiring creativity and personal skills, this
is only partially correct.
b) A science - Incorrect. Management has scientific aspects with systematic knowledge and principles,
but this is incomplete.
c) Both art and science - Correct. Management is both an art (requiring creativity, personal skills, and
practice) and a science (having organized knowledge, principles, and systematic approach).
d) Neither - Incorrect. Management is definitely both an art and a science.
3. Policy formulation is the function of:
a) Top level management
b) Middle level management
c) Operational management
d) All of the above
ANSWER: a) Top level management
Rationale:
a) Top level management - Correct. Policy formulation is a strategic function performed by top-level
managers (CEO, Board of Directors) who set overall organizational direction.
b) Middle level management - Incorrect. Middle managers implement policies rather than formulate
them.
c) Operational management - Incorrect. Operational managers execute day-to-day activities according to
established policies.
d) All of the above - Incorrect. Only top-level management has the authority and responsibility for policy
formulation.
4. Find the odd one out:
a) Board of directors
b) Chief executive
c) Foremen
d) Shareholders
ANSWER: d) Shareholders
Rationale:
a) Board of directors - Incorrect. Board of directors is part of management structure.
,b) Chief executive - Incorrect. Chief executive is part of management structure.
c) Foremen - Incorrect. Foremen are part of management structure (supervisory level).
d) Shareholders - Correct. Shareholders are owners of the company but not part of the management
hierarchy. They elect the board but don't manage operations.
5. How are principles of management formed?
a) In a laboratory
b) By experiences of management
c) By experiences of customers
d) By propagation of social scientists
ANSWER: b) By experiences of management
Rationale:
a) In a laboratory - Incorrect. Management principles cannot be developed in controlled laboratory
settings as they deal with human behavior in organizations.
b) By experiences of management - Correct. Management principles are developed through practical
experiences, observations, and experiments of managers and management thinkers.
c) By experiences of customers - Incorrect. While customer feedback is important, management
principles are not primarily formed from customer experiences.
d) By propagation of social scientists - Incorrect. Social scientists may study and refine principles, but
they originate from management practice.
6. Henry Fayol was a:
a) Social scientist
b) Mining engineer
c) Accountant
d) Production engineer
ANSWER: b) Mining engineer
Rationale:
a) Social scientist - Incorrect. Though his work influenced social sciences, this was not his profession.
b) Mining engineer - Correct. Henry Fayol was a French mining engineer who developed the
administrative theory of management.
c) Accountant - Incorrect. This was not Fayol's profession.
d) Production engineer - Incorrect. While he worked in industry, he was specifically a mining engineer.
, 7. Which of the following statements best describes the principle of 'Division of work'?
a) Work should be divided into small tasks
b) Labour should be divided
c) Resource should be divided among jobs
d) It leads to specialisation
ANSWER: d) It leads to specialisation
Rationale:
a) Work should be divided into small tasks - Incorrect. This describes the method but not the essence or
outcome.
b) Labour should be divided - Incorrect. This is too vague and doesn't capture the principle's purpose.
c) Resource should be divided among jobs - Incorrect. This is not what division of work principle states.
d) It leads to specialisation - Correct. The main purpose and outcome of division of work is specialization,
which increases efficiency and expertise.
8. Which of the following is NOT a principle of management given by Taylor?
a) Science, not rule of Thumb
b) Functional foremanship
c) Maximum, not restricted output
d) Harmony not discord
ANSWER: c) Maximum, not restricted output
Rationale:
a) Science, not rule of Thumb - Incorrect. This is one of Taylor's key principles of scientific management.
b) Functional foremanship - Incorrect. This is Taylor's principle advocating specialized supervision.
c) Maximum, not restricted output - Correct. This is NOT Taylor's principle. Taylor advocated for
maximum efficiency but this specific phrase is not one of his principles.
d) Harmony not discord - Incorrect. This is one of Taylor's principles emphasizing cooperation between
management and workers.
9. The principles of management are significant because of:
a) Increase in efficiency
b) Initiative
c) Optimum utilisation of resources
BUSINESS MANAGEMENT
COMPREHENSIVE MULTIPLE CHOICE QUESTIONS
1. Which of the following is not a function of management?
a) Planning
b) Staffing
c) Co-operation
d) Controlling
ANSWER: c) Co-operation
Rationale:
a) Planning - Incorrect. Planning is a primary function of management that involves setting objectives
and determining courses of action.
b) Staffing - Incorrect. Staffing is a recognized function of management dealing with human resource
acquisition and development.
c) Co-operation - Correct. While cooperation is important in organizations, it is not classified as a
separate function of management. It is an outcome or principle rather than a function.
d) Controlling - Incorrect. Controlling is a fundamental function of management involving monitoring
and correcting performance.
2. Management is:
a) An art
b) A science
c) Both art and science
d) Neither
ANSWER: c) Both art and science
,Rationale:
a) An art - Incorrect. While management has artistic aspects requiring creativity and personal skills, this
is only partially correct.
b) A science - Incorrect. Management has scientific aspects with systematic knowledge and principles,
but this is incomplete.
c) Both art and science - Correct. Management is both an art (requiring creativity, personal skills, and
practice) and a science (having organized knowledge, principles, and systematic approach).
d) Neither - Incorrect. Management is definitely both an art and a science.
3. Policy formulation is the function of:
a) Top level management
b) Middle level management
c) Operational management
d) All of the above
ANSWER: a) Top level management
Rationale:
a) Top level management - Correct. Policy formulation is a strategic function performed by top-level
managers (CEO, Board of Directors) who set overall organizational direction.
b) Middle level management - Incorrect. Middle managers implement policies rather than formulate
them.
c) Operational management - Incorrect. Operational managers execute day-to-day activities according to
established policies.
d) All of the above - Incorrect. Only top-level management has the authority and responsibility for policy
formulation.
4. Find the odd one out:
a) Board of directors
b) Chief executive
c) Foremen
d) Shareholders
ANSWER: d) Shareholders
Rationale:
a) Board of directors - Incorrect. Board of directors is part of management structure.
,b) Chief executive - Incorrect. Chief executive is part of management structure.
c) Foremen - Incorrect. Foremen are part of management structure (supervisory level).
d) Shareholders - Correct. Shareholders are owners of the company but not part of the management
hierarchy. They elect the board but don't manage operations.
5. How are principles of management formed?
a) In a laboratory
b) By experiences of management
c) By experiences of customers
d) By propagation of social scientists
ANSWER: b) By experiences of management
Rationale:
a) In a laboratory - Incorrect. Management principles cannot be developed in controlled laboratory
settings as they deal with human behavior in organizations.
b) By experiences of management - Correct. Management principles are developed through practical
experiences, observations, and experiments of managers and management thinkers.
c) By experiences of customers - Incorrect. While customer feedback is important, management
principles are not primarily formed from customer experiences.
d) By propagation of social scientists - Incorrect. Social scientists may study and refine principles, but
they originate from management practice.
6. Henry Fayol was a:
a) Social scientist
b) Mining engineer
c) Accountant
d) Production engineer
ANSWER: b) Mining engineer
Rationale:
a) Social scientist - Incorrect. Though his work influenced social sciences, this was not his profession.
b) Mining engineer - Correct. Henry Fayol was a French mining engineer who developed the
administrative theory of management.
c) Accountant - Incorrect. This was not Fayol's profession.
d) Production engineer - Incorrect. While he worked in industry, he was specifically a mining engineer.
, 7. Which of the following statements best describes the principle of 'Division of work'?
a) Work should be divided into small tasks
b) Labour should be divided
c) Resource should be divided among jobs
d) It leads to specialisation
ANSWER: d) It leads to specialisation
Rationale:
a) Work should be divided into small tasks - Incorrect. This describes the method but not the essence or
outcome.
b) Labour should be divided - Incorrect. This is too vague and doesn't capture the principle's purpose.
c) Resource should be divided among jobs - Incorrect. This is not what division of work principle states.
d) It leads to specialisation - Correct. The main purpose and outcome of division of work is specialization,
which increases efficiency and expertise.
8. Which of the following is NOT a principle of management given by Taylor?
a) Science, not rule of Thumb
b) Functional foremanship
c) Maximum, not restricted output
d) Harmony not discord
ANSWER: c) Maximum, not restricted output
Rationale:
a) Science, not rule of Thumb - Incorrect. This is one of Taylor's key principles of scientific management.
b) Functional foremanship - Incorrect. This is Taylor's principle advocating specialized supervision.
c) Maximum, not restricted output - Correct. This is NOT Taylor's principle. Taylor advocated for
maximum efficiency but this specific phrase is not one of his principles.
d) Harmony not discord - Incorrect. This is one of Taylor's principles emphasizing cooperation between
management and workers.
9. The principles of management are significant because of:
a) Increase in efficiency
b) Initiative
c) Optimum utilisation of resources
