Most Important Principles of Management MCQs for Class 12 CBSE Exam
MCQs for Business Studies Class 12 Chapter 2 focuses on the key topic of Principles of Management. This topic is vital for CBSE board exams, commerce competitive exams, and for understanding foundational business practices. Practicing well-chosen multiple-choice questions helps students gain clarity, boost exam scores, and confidently tackle management concepts.
| Principle of Management | Founder | Main Focus | Example/Use Case |
|---|---|---|---|
| Fayol’s Principles | Henri Fayol | Functions and principles for effective management | Division of Work, Unity of Command |
| Taylor’s Principles | F.W. Taylor | Scientific management for increasing efficiency | Standardization, Scientific selection of workers |
MCQs For Business Studies Class 12 Chapter 2 Principles of Management
Practicing MCQs for Business Studies Class 12 Chapter 2 helps students master management principles following the latest CBSE exam pattern. These questions test concepts like division of work, authority, responsibility, and scientific management. At Vedantu, each MCQ is followed by a direct answer and a short explanation for better understanding.
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Which principle of management states that “employee turnover should be minimized to maintain efficiency”?
a) Division of work
b) Discipline
c) Stability of personnel
d) Remuneration
Answer: c) Stability of personnel
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The concept of ‘one boss, one order’ belongs to which Fayol’s principle?
a) Unity of command
b) Unity of direction
c) Discipline
d) Remuneration
Answer: a) Unity of command
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Which scientific management technique involves analyzing motions to increase efficiency?
a) Time study
b) Motion study
c) Method study
d) Fatigue study
Answer: b) Motion study
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Taylor’s principle of ‘Harmony, Not Discord’ focuses on:
a) Rewarding individuals
b) Team cooperation
c) Strict supervision
d) Competition
Answer: b) Team cooperation
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The principle that “each group of organizational activities with the same objective must have one head and one plan” is called:
a) Unity of command
b) Unity of direction
c) Equity
d) Centralisation
Answer: b) Unity of direction
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Differential piece wage system was introduced by:
a) Henry Fayol
b) F.W. Taylor
c) Peter Drucker
d) Elton Mayo
Answer: b) F.W. Taylor
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Which principle advocates that managerial authority and responsibility should go side by side?
a) Equity
b) Discipline
c) Authority and Responsibility
d) Remuneration
Answer: c) Authority and Responsibility
| Question | Correct Answer |
|---|---|
| Employee turnover should be minimized to maintain efficiency. | Stability of personnel |
| ‘One boss, one order’ principle | Unity of command |
| Which technique uses motion analysis? | Motion study |
| Taylor’s ‘Harmony, Not Discord’ focuses on? | Team cooperation |
| ‘One head and one plan’ principle | Unity of direction |
| Differential piece wage system was introduced by | F.W. Taylor |
| Authority and responsibility should go side by side. | Authority and Responsibility |
Key Principles of Management in Chapter 2
The chapter covers two major sets of principles: Fayol’s 14 Principles and Taylor’s Scientific Management Principles. Understanding these ensures you can answer MCQs confidently and apply principles to business scenarios.
Fayol’s 14 Principles (Selected)
- Division of Work
- Authority and Responsibility
- Discipline
- Unity of Command
- Unity of Direction
- Subordination of Individual Interest
- Remuneration
- Stability of Personnel
Taylor’s Scientific Management Principles
- Science, Not Rule of Thumb
- Harmony, Not Discord
- Cooperation, Not Individualism
- Development of Each Person to Their Greatest Efficiency
Learning these principles helps for MCQs and application questions. Real-life examples—like how companies reduce employee turnover or use standardization—often appear in board exams.
Application and Use Cases
MCQs for Business Studies Class 12 Chapter 2 are directly relevant to CBSE exams, school tests, and commerce Olympiads. They also help in understanding modern business management and are useful for entrepreneurship or managing small businesses.
If you want to revise deeper concepts, explore Henri Fayol's 14 Principles or test your knowledge with the Principles of Management Class 12 MCQ Online Test by Vedantu.
Rapid Revision Table: Fayol’s vs Taylor’s Principles
| Aspect | Fayol’s Principles | Taylor’s Principles |
|---|---|---|
| Focus | Administrative Structure | Shop-floor Efficiency |
| Approach | Top-down (management level) | Bottom-up (worker level) |
| Main Examples | Division of Work, Unity of Command | Standardization of Work, Scientific Selection |
| Types of Questions in MCQ | Concepts like authority, discipline, unity | Scientific management, efficiency, techniques |
More Resources and Internal Links
Practice additional MCQs and revision notes here:
- Levels and Functions of Management
- Formal Organization and Project Management Organization
- Nature of Business
- Functions of Financial Management
- Management as a Profession
- Tasks and Responsibilities of Professional Managers
At Vedantu, we simplify Commerce concepts like Principles of Management to help students succeed in school and life. MCQ practice, revision tables, and real-world examples make your preparation strong and effective.
In summary, MCQs for Business Studies Class 12 Chapter 2 build a strong foundation on management principles. Practicing these will help you answer conceptual and application questions confidently in board exams, competitive tests, and business scenarios.
FAQs on Business Studies Class 12 Chapter 2 MCQs – Principles of Management Practice
1. What are the key topics covered in MCQs for Class 12 Business Studies Chapter 2, Principles of Management?
MCQs for this chapter primarily test your understanding of two core areas as per the CBSE 2025-26 syllabus:
- Henri Fayol’s 14 Principles of Management: Questions focus on concepts like Unity of Command, Equity, Scalar Chain, and Division of Work.
- F.W. Taylor’s Scientific Management Principles and Techniques: Expect questions on principles like 'Science, not Rule of Thumb' and techniques such as Functional Foremanship, Motion Study, and Time Study.
2. How many marks are generally assigned to MCQs from this chapter in the CBSE board exam?
While the exact number varies each year, the 'Principles of Management' chapter holds significant weightage in the board exam. You can typically expect 3-5 MCQs, including standalone questions and those integrated into case studies. Mastering this chapter is crucial for scoring well in the objective-type section.
3. Are case-study or assertion-reasoning MCQs common from the Principles of Management chapter?
Yes, the CBSE board increasingly uses case-study and assertion-reasoning MCQs to test higher-order thinking skills. For this chapter, a short case might describe a business problem, and you'll need to identify the management principle that is being applied or violated. These questions assess your ability to apply theoretical knowledge to practical situations.
4. What is the best way to distinguish between Henri Fayol’s and F.W. Taylor’s principles in a multiple-choice question?
To distinguish between them, focus on their primary perspective. Fayol’s principles are about general administration and apply to top-level management (e.g., Unity of Direction). In contrast, Taylor’s principles are about scientific methods to improve shop-floor efficiency and productivity (e.g., Motion Study). Fayol's approach is universal, while Taylor's is specialised.
5. How does Taylor’s technique of 'Functional Foremanship' get tested in MCQs?
MCQs on Functional Foremanship typically present a scenario where a worker interacts with various specialist bosses. You might be asked to identify the role of a specific 'foreman' like the Speed Boss (ensuring timely completion of work) or the Inspector (checking quality). The question tests your knowledge of the eight distinct specialist roles under this technique.
6. How can a student identify tricky 'distractor' options in MCQs on principles like 'Equity' and 'Remuneration'?
To spot distractors, understand the precise meaning of each principle. For Equity, a distractor might suggest 'equal salary for all,' which is incorrect. Equity means fair, kind, and just treatment, not strict equality. For Remuneration of Employees, a distractor might focus only on monetary pay, whereas the principle includes fair compensation that provides a reasonable standard of living.
7. Why are principles like 'Unity of Command' and 'Unity of Direction' considered high-importance topics for MCQs?
These principles are frequently tested because they are fundamental to organisational structure and efficiency. Unity of Command prevents confusion by ensuring an employee receives orders from only one superior. Unity of Direction ensures all efforts are aligned towards a single organisational goal. MCQs often use scenarios to test if you can spot violations of these core rules, which directly impact business operations.
8. In a scenario-based MCQ, how do you decide which principle is being violated if multiple options seem correct?
To resolve this, carefully identify the core problem described in the scenario. If the issue is a subordinate getting conflicting orders from two different managers, the most direct violation is Unity of Command. If the problem is that two departments are pursuing different, uncoordinated objectives, the primary violation is Unity of Direction. Always choose the principle that most precisely addresses the specific problem statement.
9. Beyond memorisation, how does understanding the principle 'Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity' help in answering application-based MCQs?
Understanding this principle helps you analyse scenarios related to human resource management. In an application-based MCQ, look for situations involving employee training, scientific selection of personnel, and assigning work based on an individual's skills and capabilities. The principle is not just about hiring but about nurturing talent for both personal and organisational growth, a key element in modern business case studies.
