Test Paper – Chapter 1: Nature and
Significance of Management
📌 Time: 1 Hour | 📌 Marks: 30
Section A: Multiple Choice Questions (MCQs) (1 × 5 = 5
Marks)
1. Which of the following is NOT a characteristic of management?
a) Goal-oriented process
b) Multidimensional
c) Static function
d) Continuous process
2. Management aims to achieve __________ objectives.
a) Organizational
b) Social
c) Personal
d) All of the above
3. The process of getting things done through and with people is called:
a) Leadership
b) Supervision
c) Management
d) Motivation
4. Which level of management is responsible for setting organizational goals and policies?
a) Top-level
b) Middle-level
c) Lower-level
d) None of the above
5. Coordination is:
a) A function of management
b) An essence of management
c) Required at all levels
d) Both (b) and (c)
Section B: Short Answer Questions (3 × 3 = 9 Marks)
6. Define management and explain its key characteristics.
7. Explain how management is an art, a science, and a profession.
8. Differentiate between efficiency and effectiveness in management with examples.
Section C: Case Study Questions (4 × 2 = 8 Marks)
9. Case Study: Coordination in an Organization
ABC Pvt. Ltd. is a textile manufacturing company. The production department produces high-
quality clothes, but the sales department is unable to sell them due to poor pricing strategies. As
a result, the company is facing losses.
Questions:
a) Identify the management function that is lacking in the company.
b) How can this function improve the company's performance?
10. Case Study: Management as a Profession
Raj is a manager at XYZ Ltd. He follows a systematic approach while making decisions. He also
has an MBA degree and abides by the code of conduct set by the company.
Questions:
a) Which aspect of management is highlighted in the case?
b) Justify your answer with reasons.