BBA Unit-2 Top Management

1. 31. Policy is the creation or design of _______

A. Line Managers
B. Top Management
C. Operator
D. Government
Answer B

2. Procedure is developed or designed by _______

A. Line Managers
B. Top Management
C. Operator
D. Government
Answer A

3. Assertion (A):
Functional level constitutes the lowest hierarchical level of strategic management.
Reason (R):
Functional level is responsible for the specific business functions or operations (human resources,
purchasing, product development, customer service, and so on) that constitute a company or one
of its divisions.
Select the correct answer from the options given below.
(A) A is true and R is false
(B) Both A and R are false
(C) A is true but R is not correct explanation of A
(D) A and R both are true and R is correct explanation of A
Answer: D

4. Where you want your business to be in 10 years time. This can be termed as:
(A) Mission statement
(B) Vision statement
(C) Statement of purpose
(D) Memorandum of understanding
Answer B

5. Similar to Mission and Vision Statements, Corporate Values Statements provide three of the
following. Which is not true?
(A) A vision for the future.
(B) Strategies that zero in on key success approaches.
(C) Values that shape actions.
(D) Directions for promotional planning
Answer D
6. Which of the following is concerned with how each part of the business is organized to deliver
the corporate and business-unit level strategic direction and is concerned with strategic decisions
about choice of products, meeting needs of customers etc.?
(A) Operational strategy
(B) Corporate strategy
(C) Business unit strategy
(D) All of above
Answer A

7. Operational strategy focuses on issues of

(A) Resources
(B) Processes
(C) People
(D) All of above
Answer D

8. Marketing strategy is a -…………

(A) careful selection of viable and profitable investment proposals
(B) business’s overall game plan for reaching people and tinning them into customers of the
product or service that the business provides.
(C) mix of a firm’s capitalization
(D) process that set out how the organization plans to finance its overall operations to meet its
objectives now and in future
Answer B

9. Who guide the subordinates for future courses of action with requisite directions.
a) Seniors
b) Top management
c) Managers
d) Business policies
Ans: b

10. ___ is considered as the most important strategist responsible to play a major role in strategic
decision making.
a) CEO
b) Functional head
c) Chief manager
d) All of the above
Ans: a

11. Falling sales is an example for ___ indicator.

a. Deteriorating finances
b. Top management problems
c. Deteriorating performance
d. Bad Investment
Ans: C

12. Identify the Qualitative criteria to evaluate strategies –

a. Employee motivation
b. Managerial attitude towards risk
c. Return on equity
d. Ego reinforcing strategy
Ans: B

13. All managerial functions are settled by managers with the tool of
A) Planning
B) decision-making
C) Effective control
D) authority
Answer: B

14. Which of the following is not a part of management?

A) Planning
B) Staffing
C) Budgeting
D) Communication
Answer: D

15. Management is concerned with

A) Legislative functions
B) Administrative functions
C) Executive functions
D) All of the above
Answer C

16. The fundamental components of management does not include

A) Planning
B) organisation
C) Motivation
D) budgeting
Answer D

17. According to Fayol, Functions of management are

A) Planning and organisation
B) Direction and coordination
C) Control
D) All of the above
Answer D
18. Which level of management is responsible for establishing a vision for the organization,
developing broad plans and strategies, and directing subordinate managers?
A) first level managers
B) middle managers
C) executive managers
D) second level managers
Answer C

19. Which level of management is responsible for implementing programs that are intended to
carry out the broader objectives of an organization set by executives?
A) supervisory managers
B) middle managers
C) first level managers
D) chief financial managers
Answer B

20. Which management principle states that each individual should report to only one boss in
order to avoid conflict and/ or confusion?
A) division of command
B) chain of command
C) unity of direction
D) unity of command
Answer D

21. Which management principle states that orders and instructions should flow down from top
to bottom or from a higher level manager to a lower one?
A) division of work
B) chain of command
C) unity of direction
D) unity of command
ANswer B

22. The ability of a manager to interface and work effectively with individuals and groups is
descriptive of what type of managerial skill?
A) technical
B) administrative
C) interpersonal
D) organizational
Answer C

23. For a manager, which should take priority- the job task or the employees performing the job?
A) The job task always takes priority over employees.
B) Employees always take priority over the job task.
C) Neither, a manager should balance interest in the job task with the needs of the
employees performing the job.
D) Neither, administration of the business takes priority over the job task and the
employees.
Answer C

24. Which management function involves measuring results, comparing results to

expectations, and taking corrective action?
A) planning
B) organizing
C) leading
D) controlling

25. Which type of issues are first level managers routinely influenced by?
A) long range issues
B) short range issues
C) strategic issues
D) shareholder issues

26. Which of the following characterize a manager as being effective?

A) They use a minimum amount of resources for the amount of outputs produced.
B) They devote a large amount of time to planning.
C) They achieve their goals.
D) They interview, select, and train people who are most suitable to fill open jobs.
Answer C

27. Which management principle states that work should be divided so that each person will
perform a specialized portion?
A) division of work
B) chain of command
C) unity of direction
D) unity of command
Answer A

28. What two major end results are managers seeking on a daily basis?
A) a product or service
B) management and efficiency
C) energy and utilities
D) facilities and equipment
Answer A

29. .In management, the various roles that managers are called on to perform are defined in
which process?
A) management process
B) executive process
C) business process
D) supervisory proces
Answer A

30. Which one of the following statements is not correct?

a) Management is a goal-oriented process.
b) Management is a continuous process.
c) Management is a dynamic process.
d) Management is a rigid process.
Answer D

31. Which one of the following is not an importance of management?

a) Integrating various interest groups
b) Developing society
c) Disciplining employees
d) Inculcating creativity
Answer C

32. Management is not

a) an applied science.
b) a pure science.
c) an art.
d) an art and science both.
Answer B

33. In which category does management fall?

a) Well-established profession
b) Semi-profession
c) Emerging profession
d) Marginal profession
Answer C

34. Top management is concerned with formulation of

a) guidelines for supervisors.
b) long-term plans.
c) short-term plans.
d) None of these.
Answer B

35. Coordination is
a) a management function.
b) the essence of management.
c) an objective of management.
d) a social objective.
Answer B

36. Managing Director is the position of ___ level of management in a large company.
a) Top
b) Middle
c) Lower
d) Middle and Lower
Answer A

37. Management is multidimensional because it has ___ dimension(s).

a) One
b) Two
c) Three
d) Four
Answer C

38. Management is a ___ directed process as it aims at achieving specified goals.

a) Continuously
b) Future
c) Goal
d) Deliberately
Answer C

39. Co-ordination is considered to be the essence of management because

a) It is a common thread that runs through all the activities within the organisation
b) It is implicit and inherent in all functions of the organisation
c) It is a force that binds all the functions of management
d) All of the above
Answer D

40. This function of Management related to placing the right person at the right job is
a) Organising
b) Staffing
c) Planning
d) Controlling
ANswer B

41. This function of management relating to laying down the foundation for carrying out the
other functions of management successfully is
a) Organising
b) Staffing
c) Planning
d) Controlling
ANswer C
42. The main task of this level of management is to determine the overall organisational
objectives and strategies for their realisation.
a) Operational management
b) Middle level management
c) First line managers
d) Top level management
ANswer D

43. Which of the following is a function of top level management?

a) Ensuring quality of output
b) Assigning necessary duties and responsibilities to their departments
c) Taking responsibility for all the activities of the business and its impact on the society
d) Ensuring that the safety standards are maintained within the organisation.
Answer D

44. Top management level is responsible for implementing plans and strategies of the
organisation.
a) True
b) False
Answer B

45. Management is essential for the organisations which are

a) Non-profit organisations
b) Service organisations
c) Social organisations
d) All of the above
Answer D

46. Successful management ensures that

a) Goals are achieved with least cost
b) Timely achievement of goals
c) Both of the above
d) None of the above
ANswer C

47. Which of the following management functions are closely related?

a) planning and organizing
b) staffing and control
c) planning and control
d) planning and staffing
Answer C
48. Main functions of administrative management are:
a) planning, organizing ,staffing, directing and controlling
b) planning ,organizing, directing and controlling
c) planning ,organizing, staffing and directing
d) planning,organizing,controlling and representation
Answer B

49. Which level of management is responsible for establishing a vision for the organization,
developing broad plans and strategies, and directing subordinate managers?
a) first level managers
b) middle managers
c) executive managers
d) second level managers
ANswer C

50. To succeed with a low-cost provider strategy, company managers have to

A. Pursue backward or forward integration to detour suppliers or buyers with
considerable bargaining power and leverage
B. Move the performance of most all value chain activities to lowwage countries
C. Sell direct to users of their product or service and eliminate use of wholesale
and retail intermediaries
D. Do two things: (1) do a better job than rivals of pursuing cost
savings throughout the value chain and (2) be proactive in revamping the firm's overall value
chain to eliminate low value-added activities and
bypass "nonessential" cost-producing activities
Answer D

51. The top management works on

A. Strategic Plan
B. Corporate Plan
C. Budgeting
D. Both A and B
Answer A.

52. What is the planning horizon?

A. The time ahead for which there is no information.
B. The time between making a plan and putting it into effect.
C. The maximum time for which managers can make plans.
D. The time period within which uncertainty is very low.
Answer B.

53. A strategic plan is also called ___________

A. Long term plan

B. Short term plan

C. Both A and B
D. None of above
Answer A.

54. The first step in the planning process is to

A. Set an objective
B. Evaluate alternatives
C. Determine strength and weaknesses
D. None of above
Answer A.

55. The decision making step, which consists of organization goals, predicting alternatives and
communicating goals is called __________
A. Organization
B. Alternation
C. Planning
D. Valuing
Answer C.

56. MBO offers the basis for assessing the ---

A. Operations
B. performance
C. equality
D. None these
Answer B.

57. MBO was developed by ----

A. Peter.F.Drucker
B. Chester Bernard
C. Fayol
D. None
ANswer A.

58. The process of MBO starts with -----

A. setting up of obligation
B. Fetron plan
C. Review
D. All
Answer A

59. -----------is described as interpretative planning

A. Procedure

B. Strategy
C. Policies
D. None of the above.
Answer B

60. Which among the following involves in planning process?

A. Selection of objective
B. Determine the way to achieve objective
C. Both A and B
D. None of the above
Answer C

61. What is the full form of MBO?

A. Management By Opportunity
B. Method By opportunity
C. Management By Objectives
D. Method By Objective
Answer C

62. __________ is the decision making body of an organization?

A. Decentralization
B. Administration
C. Functional organization
D. Leadership
Answer B

63. Planning encourages management to think systematically about what has happened,what is
happening and ______________
A. When it is happening
B. What might happen
C. Should something happen
D. Should something stop
Answer B

64. A company that decides to decentralize its sales procedures is managing what change
category?
A. Technology
B. People
C. Competitors
D. Structure
Answer D

65. India is the preferred destination for BPO because of ____________.

A. Tax Free Zone for BPOs
B. Cheap People
C. Cheap Manpower
D. Poor conditions
Answer C

66. A Call Centre handles

A. Both customer facing and back-end business
B. Both voice based and non-voice based business
C. Only out-bound voice based business
D. Only in bound voice based business
Answer A

67. ______________ is not a process tools for TQM systems.

A. Process flow analysis
B. Histograms
C. Plier
D. Control charts
Answer C

68. Total Quality Management (TQM) focuses on

A. Employee
B. Customer
C. Both a and b
D. None of the above
Answer C

69. Which of the following is responsible for quality objective?

A. Top level Management
B. Middle level Management
C. Frontline Management
D. All of the above
Answer A

70. People knowledge includes which of the following?

A. Insights
B. Intuitions
C. Relational information
D. All of the above
Answer D

71. Which of the following knowledge can be articulated, codified, and stored in certain media?
A. Explicit knowledge

B. Tacit knowledge
C. Procedural knowledge
D. Declarative knowledge
Answer A

72. The social economy partnership philosophy emphasizes:

a) cooperation and assistance.
b) profit maximization.
c) competition.
d) restricting resources and support.
Answer A

73. The view that business exists at society's pleasure and businesses should meet public
expectations of social responsibility is the

a. iron law of responsibility argument

b. enlightened self-interest argument
c. capacity argument
d. anti-freeloader argument
Answer B

74. Which of the following is not an impact that underpins corporate social responsibility?

A. Social.
B. Political.
C. Economic.
D. Environmental
ANswer B

75. Which of the following is not likely to have a direct impact on environmental sustainability?

a) Laws prohibiting fracking.

b) The introduction of new carbon tax.
c) A repeat of the global financial crisis.
d) Restrictions on greenhouse gas emissions.
Answer C

76. Which of the following is not part of the definition of an asset?

a. Control of a resource.
b. Resulting from a past event.
c. Inflow of economic benefits.
d. During the accounting period.
Answer D

77. In Business policy a strategy management SAC stand for-

A. Strategic advantage of company
B. Structure analysis & comparison
C. Strategic analysis code
D. Strategic analysis and choice
Answer D

78. The word policy is derived from the french word _____ meaning Administration
a) Politia
b) Policie
c) Polity
d) Policom
Answer B

79. In BPSM _____ is guide to the action

a. Strategy
b. Procedure
c. Law
d. Policy
Answer D

80. The word Policy is originated via Latin from greek work ____ meaning citizenship
A. Politeia
B. Policie
C. Politica
D. Policia
Answe A

81. The fundamental purpose for the existence of any organization is described by its ____.
a) Business Mission
b) SM
c) Business Policy
d) Corporate Strategy
Answer A

82. _______ act as guide is decision making process

a. Policy
b. Procedure
c. Strategy
d. Governance
Answer A

83. _____ is the mode of through and the principle underlying the activities of an organization or
an institution
A. Policy
B. Business
C. Strategy
D. Management
Answer A

84. ____ refers to the exchange of commodities and services for increasing utilities
A. Policy
B. Strategy
C. Business
D. Management
Answer C

85. In Business Policy & Strategy management SWOC stands for ____
A. Strength ,Weakness, Options, Challenges
B. Strategy, Weakness, Opportunity, Challenges
C. Strength ,Weakness, Opportunity, Challenges
D. Strength ,Weakness, Opportunity, Challenges
Answer D

86. ______ may be written oral or implied

A. Policy
B. Procedure
C. Document
D. Letter
Answer B

87. ___ are always writing

A. Policy
B. Procedure
C. Decision
D. None of Above
Answer B

88. Policy is more _____ than procedure

A. Rigid
B. Flexible
C. Clear
D. Easy
Answer B

89. Policy is creation or design of _____

A. Live managers
B. Top Management
C. Operation
D. Government
Answer B

90. procedure is developed by designed by

a) Live managers
b) Top Management
c) Operation
d) Government
Answer A

91. ___ is a series of steps to be followed

A. Policy
B. Strategy
C. Procedure
D. Coordination
Answer C

92. A performance rating system is

A. Rating for last year objectives
B. The extent to which the work objective met
C. Yearly achievement during specified period
D. A grade or score relating to overall performance
Answer D

93. ____ is the type of business policy according to the nature of origin
A. Originated policy
B. Imposed policy
C. Appealed policy
D. All of above
Answer B

94. ____ is the type of business policy according to the structure of organization
A. Internal policy
B. External policy
C. Recruit and selection policy
D. All of above
Answer D

95. Basic Policy major policy and minor policy are the types of business policies according to
A. Origin
B. Importance
C. Structure
D. Scope
Answer B
96. According to scope Business Policy can be classified into _____
A. General specified & directive policy
B. Internal & external policy
C. Oral written implied policy
D. All of above
Answer D

97. Which is the part of planning and development

A. Organizational Planning
B. Manpower planning
C. Training
D. All of above
Answer D

98. which of the following is an economic activity

A. Production
B. Social service
C. Professional
D. Trading in goods
Answer B

99. which of the following is the characteristic of business policy

A. Production
B. Exchange or sale
C. Risk element
D. All of above
Answer D

100. Policy formation comes under which rate

A. Top Level Manager
B. Middle Level manager
C. Operational management
D. All of above
Answer A