Management Course-shift Online Test

Henry Fayol proposed 14 principles of management.

In a partnership, capital is raised by partners. This means that the partners contribute their own funds to start and operate the business. In return, they share the profits, losses, and expenses of the business according to the agreed upon partnership agreement. This is different from other types of business entities like proprietorship, private limited, and public limited, where the capital may come from a single owner or shareholders.

Cipla is a chemical industry because it is involved in the manufacturing and distribution of pharmaceutical products. The company specializes in the production of generic drugs and has a wide range of products in various therapeutic areas. Chemical industries primarily deal with the production and processing of chemicals, including pharmaceuticals, which aligns with Cipla's core business.

Authority refers to the right to command or give orders and the power to act or enforce those orders. It is the legitimate power or control that someone has over others in a certain context or situation. Authority allows individuals or entities to make decisions, delegate tasks, and enforce rules or policies. It is an essential aspect of organizational or hierarchical structures, where individuals in positions of authority have the power to make decisions and influence the actions of others.

The top level is known as the strategical level because it is responsible for making important decisions that affect the entire organization. This level of management focuses on long-term planning, setting goals and objectives, and determining the overall direction of the company. They are responsible for formulating strategies and policies that will guide the organization towards success.

Henry Fayol is known for his major contributions to the management theory, specifically his principles of management. These principles are based on his thoughts and experiences in the field of management. Fayol's principles provide a framework for managers to effectively organize and manage their resources, including personnel, materials, and processes. His ideas have had a significant impact on the field of management and are still widely used and studied today.

The lower level referred to in the question is known as the operational level. This level involves the day-to-day activities and tasks that are necessary for the functioning of an organization. It focuses on the implementation of strategies and plans developed at higher levels. The operational level is responsible for managing resources, coordinating activities, and ensuring that goals and objectives are met efficiently and effectively.

Proprietorship can be defined as running a business by a single person. In this type of business structure, the owner has complete control and ownership over the business. They are solely responsible for all the decisions, profits, and losses of the business. This form of business is easy to set up and has minimal legal requirements.

The correct answer is "All of the above" because the question asks about the types of project organization, and all three options mentioned (function based, project based, and matrix based) are valid types of project organization. Function based organization involves grouping employees based on their specific functions or areas of expertise, project based organization involves creating a dedicated team for each project, and matrix based organization combines elements of both functional and project-based structures. Therefore, all three options are correct.

Division of work is proved to be a smart technique that allows everybody to do the job as per their skills or specialization. This principle suggests that tasks should be divided among individuals based on their abilities and expertise. By assigning specific tasks to individuals, it ensures that each person can focus on their area of expertise, leading to increased efficiency and productivity. This also allows individuals to develop their skills and become experts in their respective areas, ultimately benefiting the organization as a whole.

Traders make profit in the form of commission by buying and selling goods or assets. They act as intermediaries between buyers and sellers, earning a commission on each transaction they facilitate. Unlike service providers or manufacturers who may earn profit through direct sales or fees, traders specifically generate profit through the commission they receive from successful trades. Therefore, the correct answer is Traders.

The service sector is the fastest growing sector in India nowadays because it includes a wide range of industries such as information technology, telecommunications, banking, healthcare, tourism, and hospitality. The growth in this sector is driven by factors such as increasing urbanization, rising disposable income, and the shift towards a more service-oriented economy. Additionally, the service sector has a higher potential for job creation and contributes significantly to the country's GDP.

Coordinating plays a very important role as it ensures harmony among different departments. This involves bringing together various individuals and departments to work towards a common goal, ensuring that tasks are properly allocated, and resources are effectively utilized. Coordinating also involves facilitating communication and collaboration between different departments, promoting teamwork and synergy. By coordinating activities, conflicts and duplication of efforts can be minimized, leading to improved efficiency and productivity within the organization.

The correct answer is "All of the above" because the question asks for the commonly known types of organizational structures, and all three options mentioned (Line, Line and Staff, Functional) are indeed commonly known types of organizational structures.

Line organization is developed step by step to shape as the line and staff organization. This means that line organization is the initial form of organization, and as the organization grows and becomes more complex, it evolves into the line and staff organization. The line and staff organization combines the hierarchical structure of line organization with specialized staff departments to support and assist the line departments. Functional organization, on the other hand, is a different type of organizational structure that groups employees by their specific functions or areas of expertise. Therefore, the correct answer is line and staff organization.

Partners in profit only refers to individuals who are involved in a partnership solely for the purpose of sharing in the profits generated by the business. They do not have any liability for the debts or obligations of the partnership. This means that they are not responsible for any losses incurred by the business and their involvement is limited to the financial gains they receive.

Delegation is the process of transferring authority from a manager to a subordinate. It involves assigning tasks and responsibilities to individuals lower in the organizational hierarchy. Delegation allows managers to distribute workload, empower employees, and focus on more strategic tasks. It also helps in developing the skills and capabilities of subordinates by giving them opportunities to make decisions and take ownership of their work. Therefore, delegation is the correct answer for the downward transfer of authority from a manager to a subordinate.

Authority is the formal and legitimate right of a manager to make decisions, issue orders, and allocate resources to complete an organization's goals. It gives managers the power to direct and control the activities of subordinates and ensures that tasks are carried out effectively and efficiently. Authority is an essential element of management as it establishes the hierarchical structure within an organization and enables managers to exercise control and influence over their subordinates. It is through authority that managers are able to enforce rules, delegate tasks, and maintain order within the organization.

The term "balanced" means having a proper distribution or equilibrium. In the context of the given question, it suggests that the department has adequate resources, manpower, and necessary authority in a balanced manner. This ensures that all aspects of the department's functioning are well-supported and there is no excessive focus on one area at the expense of others.

A sleeping partner is a person who contributes capital to a firm but does not actively participate in its day-to-day operations. They share in the profits and losses of the firm, but their role is limited to providing financial support. Unlike an active partner who is involved in the management and decision-making of the business, a sleeping partner has a more passive role and may not have any legal liability beyond their investment.

The given correct answer is "Joint stock." This suggests that compared to the other options listed (partnership, sole proprietorship, and public sector), joint stock companies have less documentation. Joint stock companies are typically larger and more complex organizations, requiring less documentation compared to smaller businesses like partnerships or sole proprietorships. Public sector companies, on the other hand, may have extensive documentation due to their governmental nature.

Organizational stability refers to the ability of an organization to maintain a consistent and steady state of operations. It involves adjusting work assignments, manpower, and facilities to accommodate temporary changes that may occur while working. This ensures that the organization can continue functioning efficiently and effectively despite any disruptions or fluctuations in the environment. Stability allows for a sense of predictability and reliability within the organization, enabling it to adapt and respond to challenges while maintaining its core operations.

Effective delegation means giving the right work to the right person. It involves assigning tasks and responsibilities to individuals who have the necessary skills, knowledge, and expertise to successfully complete the work. Effective delegation ensures that each person is given tasks that align with their abilities, allowing them to work efficiently and effectively. By delegating tasks appropriately, managers can maximize productivity, improve employee satisfaction, and achieve organizational goals.

Private limited companies collect capital from the public by issuing shares with small face value. This means that individuals can invest in the company by purchasing shares, which helps to raise funds for the company's operations and growth. This method of capital collection allows private limited companies to access a larger pool of potential investors and raise more funds compared to relying solely on the company's owners or a small group of investors. Public limited companies also collect capital from the public, but private limited companies are specifically mentioned in the question.

Staffing is the correct answer because it refers to the process of determining the manpower requirements of an organization and recruiting, selecting, training, and placing the right individuals in the right positions. It involves identifying the skills and qualifications needed for each job role and ensuring that the organization has the appropriate number of employees to carry out the work effectively and efficiently. Staffing plays a crucial role in defining the steps and allocating resources to accomplish tasks in a timely and productive manner.