Business Management MCQs for UGC NET and SET Exams [2023]

Introduction to Business Management MCQs

Business Management is the coordination of all resources through the process of planning, organising, directing, staffing and controlling in order to attain stated objectives effectively and efficiently.  Effectively means doing the right task, completing activities and achieving goals and efficiently means to attain objectives with least amount of resources at a minimum cost. This process starts at the top and continues in more or less degree at every level of the organisation.

About Business Management MCQs

In this post you will get Business Management MCQs which are especially for UGC NET and SET exams of various states such as SLET NE, GSET, WBSET. JKSET, Rajasthan SET, MP SET, MH SET, KSET and Kerala SET.

We try to cover all the questions asked in above mentioned exams relating to Business Management MCQs. Visit our website regularly for latest contents.

business management mcqs

Business Management MCQs for UGC NET and SET Exams

1. Max Weber is associated with: [GSET]

(A) Theory of motivation.

(B) Principles of management.

(C) Theory of scientific management.

(D) Theory of bureaucracy.

Ans: (D) Theory of bureaucracy.

2. Planned introduction of an employee to its job and the organization is called: [GSET]

(A) Training.

(B) Development.

(C) Induction.

(D) Promotion.

Ans: (C) Induction.

3. PEST analysis [GSET]

(A) a checklist to ask for political, economic, strategic or technological developments can influence an industry and a company.

(B) a board framework to help managers understand the environment in which their business operates.

(C) a checklist for forecasting political, economic, strategic or technological factors.

(D) a framework for strategic analysis for internal and external environment.

Ans: (B) a board framework to help managers understand the environment in which their business operates.

4. Hawthorne experiment was conducted by: [GSET]

(A) Elten Mayo.

(B) Henry Fayol.

(C) F.W. Taylor.

(D) P.F. Drucker.

Ans: (A) Elten Mayo.

5. Equity Theory of work motivation has been developed by: [GSET]

(A) J. Stacey Adams.

(B) J. Arun Kaul.

(C) R. Thesis.

(D) Dr. L.N. Koli.

Ans: (A) J. Stacey Adams.

6. The training imparted to a new employee to induct him into new social setting of his work is called: [GSET]

(A) Orientation training.

(B) Job training.

(C) Corrective training.

(D) Promotional training.

Ans: (A) Orientation training.

7. The fatigue and motion study was conducted by: [GSET]

(A) Henry L. Gantt.

(B) F. W. Taylor.

(C) Frank B. and Lillian M. Gilbreth.

(D) Henry Fayol.

Ans: (C) Frank B. and Lillian M. Gilbreth.

8. Reinforcement theory of motivation is contributed by: [GSET]

(A) A. H. Maslow.

(B) Sigmund Freud.

(C) B. F. Skinner.

(D) David Nadler and Edward Lawler.

Ans: (C) B. F. Skinner.

9. Need for achievement, affiliation and power are associated with the theory of: [GSET]

(A) Learning.

(B) Perception.

(C) Motivation.

(D) Attitude.

Ans: (C) Motivation.

10. MCA stands for: [GSET]

(A) Ministry of Company Affairs.

(B) Ministry of Council Affairs.

(C) Ministry of Corporate Affairs.

(D) Member of Company Affairs.

Ans: (C) Ministry of Corporate Affairs.

11. Amongst the following theories of recruitment, which one is not related to it: [GSET]

(A) Objective factor theory.

(B) Critical contrast theory.

(C) Critical approval theory.

(D) Subjective factor theory.

Ans: (C) Critical approval theory.

12. Which combination is incorrect? [GSET]

(A) F.W. Taylor = Scientific management.

(B) Elton Mayo = Hawthome experiments.

(C) Douglas = Expectancy theory.

(D) Frederick Herzberg = Motivation Hygienic theory.

Ans: (C) Douglas = Expectancy theory.

13. The number of subordinates a superior can effectively handle is called: [GSET]

(A) Organising people.

(B) Co-ordination.

(C) Span of control.

(D) Directing.

Ans: (C) Span of control.

14. Out of the following one of it is not associated with Cloud Computing: [GSET]

(A) Infrastructure – as – Service (IaaS).

(B) Platform – as – Service (PaaS).

(C) Software – as – Service (SaaS)

(D) Computing – as – Service (Caas).

Ans: (D) Computing – as – Service (Caas).

15. Human relations approach of management is associated with: [GSET]

(A) Abraham Maslow.

(B) Peter F. Drucker.

(C) Elton Mayo.

(D) Herzberg.

Ans: (C) Elton Mayo.

16. “Management is the art of getting things done through people.” Who said this? [GSET]

(A) Mary Parker Follet.

(B) F.W. Taylor.

(C) Henry Fayol.

(D) Elton Mayo.

Ans: (A) Mary Parker Follet.

17. Method study, motion study, time study, fatigue study and rate setting are related with _______. [GSET]

(A) Charles Babbage.

(B) F.W. Taylor.

(C) James Watt.

(D) Robert Owen.

Ans: (B) F.W. Taylor.

18. _______ is the study that relates with no. of people one can super wise. [GSET]

(A) Line of control.

(B) Length of control.

(C) Span of control.

(D) Line and staff structure of organisation.

Ans: (C) Span of control.

19. When is a pull strategy appropriate? [GSET]

(A) when there is low brand loyalty.

(B) when consumers are able to perceive differences between brands.

(C) when brand choice is made in the store.

(D) when it is a low involvement purchase.

Ans: (B) when consumers are able to perceive differences between brands.

20. Who is known for the concept of ‘Bounded Rationality’ in Decision-making? [GSET]

(A) Herbert Simon.

(B) Peter Drucker.

(C) Henry Fayol.

(D) Alfred Chandler.

Ans: (A) Herbert Simon.

21. Which of the following criteria relates to consumers seeing the brand association as personality relevant to them? [GSET]

(A) Deliverability.

(B) Authenticity.

(C) Desirability.

(D) Differentiability.

Ans: (C) Desirability.

22. In Luther Gulick’s POSDCORB, “D” stands for: [GSET]

(A) Division of work.

(B) Democracy.

(C) Decision-making.

(D) Directing.

Ans: (D) Directing.

23. Taylor’s concept of functional organisation is against the principle of [GSET]

(A) Division of work.

(B) Unity of command.

(C) Span of control.

(D) Centralization.

Ans: (B) Unity of command.

24. Which of the following is not an element of planning? [GSET]

(A) Programme.

(B) Procedure.

(C) Policy.

(D) Information.

Ans: (D) Information.

25. The process of delegation is [GSET]

(A) Top to Bottom.

(B) Bottom to Top.

(C) Horizontal.

(D) Circular.

Ans: (A) Top to Bottom.

26. Which is the oldest form of organisation? [GSET]

(A) Functional Organisation.

(B) Life Organisation.

(C) Line and Staff Organisation.

(D) Committee Organisation.

Ans: (B) Life Organisation.

27. Deciding in advance, what is to be done in future, is known as: [GSET]

(A) Management.

(B) Co-ordination.

(C) Planning.

(D) Decentralisation.

Ans: (C) Planning.

28. The term ‘Strategy’ is related to: [GSET]

(A) Planning.

(B) Motivating.

(C) Decentralisation.

(D) Co-operation.

Ans: (A) Planning.

29. Which of the following is not the functional area of management? [GSET]

(A) Marketing.

(B) Production.

(C) Planning.

(D) Finance.

Ans: (C) Planning.

30. Principle of span of control refers to: [GSET]

(A) Degree of control.

(B) Centralization.

(C) Number of persons under one direct supervision.

(D) None of the above.

Ans: (C) Number of persons under one direct supervision.

31. Informal organisation is created by: [GSET]

(A) Management.

(B) Immediate boss.

(C) Natural and spontaneous creation.

(D) Trade Union.

Ans: (C) Natural and spontaneous creation.

32. Theory of ‘Y’ was propounded by: [GSET]

(A) Mc. Gregor.

(B) Peter Drucker.

(C) F.W. Taylor.

(D) George Elton Mayo.

Ans: (A) Mc. Gregor.

33. Which of the following is not the stakeholder in business? [GSET]

(A) Investor.

(B) Customer.

(C) Local Community.

(D) None of the above.

Ans: (D) None of the above.

34. Which one of the following is not a positive characteristic of a computer? [GSET]

(A) Speed.

(B) Versatility.

(C) Accuracy.

(D) Vulnerability of stored data.

Ans: (D) Vulnerability of stored data.

35. Assertion (A): Management is a continuous process. [GSET]

Reason (R): Managers first plan, then organise and finally perform the function of controlling.


(A) Both (A) and (R) are correct and (R) is correct explanation of (A).

(B) Both (A) and (R) are correct, but (R) is not a correct explanation of (A).

(C) (A) is correct, but (R) is incorrect.

(D) (A) is incorrect, but (R) is correct.

Ans: (A) Both (A) and (R) are correct and (R) is correct explanation of (A).

36. _______ has developed the technique of ‘Management by Exception’. [GSET]

(A) Peter F. Drucker.

(B) Henry Fayol.

(C) F.W. Taylor.

(D) L.F. Urwick.

Ans: (C) F.W. Taylor.

37. Which one of the following is called ‘Management by results’? [GSET]

(A) Management by Objectives.

(B) Management by Exception.

(C) Management by Walking around.

(D) Manage scientifically.

Ans: (A) Management by Objectives.

38. “Leaders are born not made”, refers to: [GSET]

(A) Great-man-approach of managing.

(B) Great-man-approach of leadership.

(C) Trait-approach of motivation.

(D) Autocratic-approach of leadership.

Ans: (B) Great-man-approach of leadership.

39. Ethics provide: [GSET]

(A) Consumer Autonomy.

(B) Corporate Social Responsibility.

(C) Justice.

(D) All of the above.

Ans: (D) All of the above.

40. The main advantage of functional organisation is: [GSET]

(A) Specialisation.

(B) Simplicity.

(C) Expert advice.

(D) Experience.

Ans: (B) Simplicity.

41. Delegation of Authority is linked with: [GSET]

(A) Managerial planning.

(B) Management co-ordination.

(C) Management control.

(D) Scientific management.

Ans: (C) Management control.

42. Techniques of management control are useful in: [GSET]

(A) Selection of plant location.

(B) Identifying appropriate technology.

(C) Profit planning.

(D) Conducting shareholders’ meetings.

Ans: (C) Profit planning.

43. Motivational process and not the motivators as such is associated with the: [GSET]

(A) Need-hierarchy theory.

(B) Two-factors theory.

(C) ERG-theory.

(D) Expectancy theory.

Ans: (D) Expectancy theory.

44. Processing involves: [GSET]

(A) Inputting data into a computer system.

(B) Transforming input into output.

(C) Displaying output in a useful manner.

(D) Providing relevant answers.

Ans: (B) Transforming input into output.

45. Match the following: [GSET]

(a) Philosophy of management.

(b) Scientific management.

(c) General and industrial management.

(d) The practice of management.

(1) Oliver Sheldon.

(2) Peter F. Drucker.

(3) F.W. Taylor.

(4) Henry Fayol.


(A) (a)-(1), (b)-(3), (c)-(4), (d)-(2).

(B) (a)-(1), (b)-(2), (c)-(3), (d)-(4).

(C) (a)-(4), (b)-(3), (c)-(2), (d)-(1).

(D) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

Ans: (A) (a)-(1), (b)-(3), (c)-(4), (d)-(2).

46. Arranging in an order from lowest to highest, what are Maslow’s five classes of needs? [GSET]

(A) Social Esteem – Physiological – Safety – Self-actualization.

(B) Physiological – safety – Social – self-actualization – Esteem.

(C) Physiological – safety – Social – esteem – Self-actualization.

(D) Self-actualization – Esteem – safety – social – physiological.

Ans: (C) Physiological – safety – Social – esteem – Self-actualization.

47. The number of subordinates a superior can effectively handle is called: [GSET]

(A) Organising people.

(B) Span of control.

(C) Direction.

(D) Coordination.

Ans: (B) Span of control.

48. The E-Commerce domain that involves business activity initiated by the consumer and targeted to business is known as: [GSET]

(A) Business to Consumer (B2C).

(B) Consumer to Business (C2B).

(C) Consumer to Consumer (C2C).

(D) Business to Business (B2B).

Ans: (B) Consumer to Business (C2B).

49. Management means forecasting planning, organising, directing, coordinating and controlling. Who said this? [GSET]

(A) Peter F. Drucker.

(B) Henri Fayol.

(C) Parkins.

(D) F.W. Taylor.

Ans: (B) Henri Fayol.

50. _______ refers to those needs satisfaction of which lead to self-confidence and prestige. [GSET]

(A) Self-actualization needs.

(B) Safety needs.

(C) Esteem needs.

(D) Physiological needs.

Ans: (C) Esteem needs.

51. Plan made in the light of competitors plan is known as: [GSET]

(A) Policy.

(B) Procedure.

(C) Strategy.

(D) Undercover plan.

Ans: (C) Strategy.

52. Grapevine is associated with: [GSET]

(A) Formal Communication.

(B) Informal Communication.

(C) Horizontal Communication.

(D) Vertical Communication.

Ans: (B) Informal Communication.

53. Which one is the most important principle of Business Ethics? [GSET]

(A) Principle of unity of direction.

(B) Principle of proportional judgement.

(C) Principle of scalar chain.

(D) Principle of Span of Control.

Ans: (B) Principle of proportional judgement.

54. The theory of MBO (Management of Objective) was derived by: [GSET]

(A) Harold Koontz.

(B) Peter F. Drucker.

(C) Henry Fayol.

(D) Philip Kotler.

Ans: (B) Peter F. Drucker.

55. Hawthorne experiment was undertaken between: [GSET]

(A) 1927 and 1932.

(B) 1928 and 1931.

(C) 1929 and 1932.

(D) 1930 and 1935.

Ans: (A) 1927 and 1932.

56. Theory ‘X’ and theory ‘Y’ of motivation was developed by: [GSET]

(A) McGregor.

(B) Elton Mayo.

(C) Henri Fayol.

(D) William G. Ouchi.

Ans: (A) McGregor.

57. The process where actual results are compared with desired results is known as: [GSET]

(A) Co-ordination.

(B) Organization.

(C) Controlling.

(D) Planning.

Ans: (C) Controlling.

58. The leadership style which is based on consultations within the group is known as: [GSET]

(A) Autocratic.

(B) Democratic.

(C) Free reign.

(D) None of the above.

59. The original source of an organization’s culture is most strongly associated with any one of the following: [GSET]

(A) Influences of overseas.

(B) General economic trends.

(C) The vision of the organization’s founder(s).

(D) Political factors in the external environment.

Ans: (C) The vision of the organization’s founder(s).

60. It is the organization structure which brings about horizontal coordination to project and hence the chances of success of the projects are higher. It is called as: [GSET]

(A) Functional structure.

(B) Matrix organization structure.

(C) Hybrid structure.

(D) Divisional structure.

Ans: (B) Matrix organization structure.

61. Which is not a characteristic of informal organization? [GSET]

(A) General nature is official.

(B) Authority and responsibility are major concepts.

(C) Primary focus on person not position.

(D) Guidelines for behaviour is rules.

Ans: (C) Primary focus on person not position.

62. Which is not characteristic of planning in an organisation? [GSET]

(A) Pervasive.

(B) Non-rational.

(C) Perpetual.

(D) Integrated process.

Ans: (B) Non-rational.

63. It is the strategy of large organisation, the purpose of which is to identify the business areas in which an organisation will carry out its operations and states how these businesses can be coordinated to make the organisation more competitive: [GSET]

(A) Operational strategy.

(B) Business level strategy.

(C) Corporate level strategy.

(D) None of the above.

Ans: (C) Corporate level strategy.

64. Match the items of List I with the items of List II and select the correct answer using the codes given below the lists: [GSET]

List I

(Techniques of Scientific Management)

List II


(a) Standardization and simplification.

(b) Scientific task selling.


(c) Functional foremanship.


(d) Differential place rate plan.

(1) It is essential to set the standards task which an average worker should be during a working day.

(2) Under this, there are two work rates, one is lower and another is higher.

(3) The management must carry out work study is standardise and simplify work in order to increase efficiency.

(4) Its purpose is to improve the quality of super-vision of workers by employing some specialists.


(A) (a)-(3), (b)-(1), (c)-(4), (d)-(2)

(B) (a)-(4), (b)-(1), (c)-(2), (d)-(3).

(B) (a)-(4), (b)-(3), (c)-(1), (d)-(2).

(C) (a)-(3), (b)-(4), (c)-(1), (d)-(2).

Ans: (A) (a)-(3), (b)-(1), (c)-(4), (d)-(2)

65. In an electrical goods manufacturing company, there are four main activities Marketing, Production, Finance and Personnel. The general manager is planning to structure the organisation. Which type of organisation structure should be adopted? [GSET]

(A) Formal organisation structure.

(B) Functional organisation structure.

(C) Informal organisation structure.

(D) Divisional organisation structure.

Ans: (B) Functional organisation structure.

66. Which of the following statements is correct? [GSET]

(A) Behavioural theories of Leadership are also known as transactional theories.

(B) Situational theories of Leadership are based on the belief that great leaders are made not born.

(C) Management theories of Leadership focused on the role of supervision, organisation and group performance.

(D) None of the above.

Ans: (C) Management theories of Leadership focused on the role of supervision, organisation and group performance.

67. MATRIX organisation is also known as: [GSET]

(A) Product Organisation.

(B) Process Organisation.

(C) Project Organisation.

(D) Functional Organisation.

Ans: (C) Project Organisation.

68. Providing employees with basic background information about the firm is: [GSET]

(A) Employee Orientation.

(B) Education.

(C) Colleges and Universities.

(D) Required by law.

Ans: (A) Employee Orientation.

69. The concept of Management by Objectives was developed by: [GSET]

(A) Drucker.

(B) McGregor.

(C) Simon.

(D) Elten Mayo.

Ans: (A) Drucker.

70. The managerial grid model of leadership was developed by: [GSET]

(A) Fiedler.

(B) Hersey and Blanchard.

(C) Tannenbaum and Schmidt.

(D) Blake and Mouton.

Ans: (D) Blake and Mouton.

71. Horizontal job rotation refers to: [GSET]

(A) Lateral transfer.

(B) Lateral promotion.

(C) Lateral motivation.

(D) All of the above.

Ans: (A) Lateral transfer.

72. The _______ factor would be relatively low if supply of labour is higher than demand. [GSET]

(A) Production.

(B) Labour Cost.

(C) Wage.

(D) Salary.

Ans: (C) Wage.

73. An interview in which a group of interviewers questions the applicant is: [GSET]

(A) Mass interview.

(B) Panel interview.

(C) Situational interview.

(D) Computerized interview.

Ans: (B) Panel interview.

74. In whose model, the equilibrium is unstable and indeterminate? [GSET]

(A) Edgeworth Model.

(B) Cournot Model.

(C) Sweezy Model.

(D) Pareto Model.

Ans: (A) Edgeworth Model.

75. The Seven-S model for successful strategy implementation was proposed by: [GSET]

(A) Boston consultancy group.

(B) Mc. Kinsey & Co.

(C) Arthur Andersen & Co.

(D) Du Pont Co.

Ans: (B) Mc. Kinsey & Co.

76. As a business practice, broadening involves: [GSET]

(A) Acquiring or merging with firms in the same or complementary industries to gain economies of scale and scope.

(B) Factoring the interests of customers, employees, shareholders and other stakeholders into the activities of the enterprise.

(C) Buying more goods and services from outside domestic or foreign vendors.

(D) Appointing teams to manage customer-value building process and break down walls between departments.

Ans: (B) Factoring the interests of customers, employees, shareholders and other stakeholders into the activities of the enterprise.

77. Sociometric analysis designed and developed by Jacob Levy Moreno is primarily associated with _______. [GSET]

(A) Motivation.

(B) Perception.

(C) Group Dynamics.

(D) Attitude.

Ans: (C) Group Dynamics.

78. Which of the following is not included in McKensey’s 7-S framework? [GSET]

(A) Strategy.

(B) Structure.

(C) Software.

(D) Skills.

Ans: (C) Software.

79. “The Interpretation of Dreams” is the book authored by: [GSET]

(A) B. F. Skinner.

(B) Sigmund Freud.

(C) Carl Jung.

(D) Erick Erickson.

Ans: (B) Sigmund Freud.

80. During which of the following stages in new product development decision-making do managers analyze if they can find a good thought consumers say they would try? [GSET]

(A) idea generation.

(B) idea screening.

(C) business analysis.

(D) concept development and testing.

Ans: (D) concept development and testing.

81. The _______ technique used for stimulating creativity identifies a problem and then considers the dimension, the medium and the power source. [GSET]

(A) Attribute listing.

(B) Mind mapping.

(C) Lateral thinking.

(D) Morphological analysis.

Ans: (D) Morphological analysis.

82. Who is known for pointing out relationship between strategy and structure? [GSET]

(A) Herbert Simon.

(B) Tom Peters.

(C) Alfred D. Chandler.

(D) William G. Ouchi.

Ans: (C) Alfred D. Chandler.

83. Which of the following is most closely related with the organic growth of an organization? [GSET]

(A) Developing new products from within.

(B) Acquiring a product or service brand.

(C) Entering new market places.

(D) Increasing productivity of employees.

Ans: (A) Developing new products from within.

84. The concept of classical conditioning was given by: [GSET]

(A) Sigmund Freud.

(B) Ivan Pavlov.

(C) B.F. Skinner.

(D) Jean Piaget.

Ans: (B) Ivan Pavlov.

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