Mock Quiz: Grade 11 Business Organization and Management
Total Marks: 70
Question Distribution:
• Modified True or False Questions (MTFQs): 20 questions (20 marks)
• Multiple-Choice Questions (MCQs): 20 questions (20 marks)
• Essay Questions (EQs): 2 questions (30 marks)
Modified True or False Questions (MTFQs)
1. Planning is the function of management that involves setting objectives,
determining the best way to achieve them, and organizing resources.
o Underlined word: Planning
o Answer: True
2. Functional structure is an organizational structure where employees are grouped
based on products.
o Underlined word: Functional structure
o Answer: False. Correct term: Divisional structure
3. The first step of the planning process is determining the organization’s mission and
goals.
o Answer: True
4. Decentralization is a compulsory policy decision to enhance autonomy at all
organizational levels.
o Underlined word: Compulsory
o Answer: False. Correct term: Optional
5. Responsibility flows downward from superiors to subordinates.
o Underlined word: Downward
o Answer: False. Correct term: Upward
6. In the planning process, formulating strategy involves analyzing the current
situation and developing necessary strategies.
o Answer: True
7. In a divisional structure, groups are organized by functions such as finance,
marketing, and human resources.
o Underlined word: Divisional structure
o Answer: False. Correct term: Functional structure
8. Authority flows downward from superior to subordinate in an organization.
o Answer: True
9. Formal organizations are created by the employees and consist of social
relationships and informal communication.
o Underlined word: Employees
o Answer: False. Correct term: Management
10. Delegation enhances managerial workload efficiency by transferring some
responsibilities to subordinates.
o Answer: True
11. In a centralized organization, authority is broadly distributed across different levels
of management.
o Underlined word: Centralized
o Answer: False. Correct term: Decentralized
12. The mission statement of an organization describes the future aspirations of the
company.
o Underlined word: Mission statement
o Answer: False. Correct term: Vision statement
13. A vision statement outlines specific business goals and values for achieving the
mission.
o Underlined word: Vision statement
o Answer: False. Correct term: Mission statement
14. Informal organizations emerge from social interactions among employees.
o Answer: True
15. The three main steps of the planning process are goal setting, strategy
formulation, and strategy implementation.
o Answer: True
16. A formal organization is flexible and has no set behavior patterns arising from
social relationships.
o Underlined word: Formal organization
o Answer: False. Correct term: Informal organization
17. Scenario planning involves generating one specific forecast of future conditions.
o Underlined word: One specific forecast
o Answer: False. Correct term: Multiple forecasts
18. Delegation requires transferring accountability along with authority to the
subordinate.
o Underlined word: Accountability
o Answer: False. Correct term: Responsibility
19. In a functional structure, occupational specialization is promoted due to grouping
based on similar functions.
o Answer: True
20. In decentralization, decisions are retained by top-level management.
o Underlined word: Decentralization
o Answer: False. Correct term: Centralization
Multiple-Choice Questions (MCQs)
21. What is the first step of the planning process?
o a) Implementing the strategy
o b) Evaluating resources
o c) Defining the mission and goals
o d) Determining company profits
o Answer: c) Defining the mission and goals
22. Which of the following is NOT a benefit of organizing?
o a) Resource optimization
o b) Duplication of work
o c) Specialization
o d) Adaptation to change
o Answer: b) Duplication of work
23. Which of the following best describes a divisional structure?
o a) Groups based on functions
o b) Groups based on location
o c) Groups based on product lines
o d) Groups based on customer type
o Answer: c) Groups based on product lines
24. What is the primary function of delegation?
o a) Increasing authority at higher levels
o b) Reducing workload by transferring tasks
o c) Establishing accountability
o d) Preventing employee autonomy
o Answer: b) Reducing workload by transferring tasks
25. In which structure are employees grouped according to the type of work they do?
o a) Matrix structure
o b) Divisional structure
o c) Functional structure
o d) Network structure
o Answer: c) Functional structure
26. The purpose of a vision statement is to:
o a) Describe specific business goals
o b) Define the organization’s purpose
o c) Outline long-term aspirations
o d) Explain company values
o Answer: c) Outline long-term aspirations
27. Which type of authority is associated with providing support rather than direct
orders?
o a) Staff authority
o b) Line authority
o c) Functional authority
o d) Central authority
o Answer: a) Staff authority
28. Decentralization refers to:
o a) Concentrating power at the top level
o b) Distributing authority across levels
o c) Developing central command
o d) Centralizing decision-making
o Answer: b) Distributing authority across levels
29. Which statement about informal organizations is true?
o a) They are rigid and structured
o b) They are designed by management
o c) They arise from social relationships
o d) They follow a formal chain of command
o Answer: c) They arise from social relationships
30. What is the main goal of a mission statement?
o a) Define customer service policies
o b) Establish financial goals
o c) Outline the organization’s purpose
o d) List future aspirations
o Answer: c) Outline the organization’s purpose
31. Which structure is best for a company producing multiple product lines?
o a) Divisional
o b) Functional
o c) Hierarchical
o d) Centralized
o Answer: a) Divisional
32. A functional structure is suitable when:
o a) There are limited product lines
o b) There is a need for geographic specialization
o c) The organization requires autonomy at each level
o d) Customer service is the main priority
o Answer: a) There are limited product lines
33. Which of the following statements is TRUE about delegation?
o a) Responsibility is fully transferred to the subordinate
o b) Accountability flows downward
o c) Authority flows downward while accountability remains with the superior
o d) Responsibility and authority flow in opposite directions
o Answer: c) Authority flows downward while accountability remains with the
superior
34. Scenario planning is also known as:
o a) Strategic formulation
o b) Contingency planning
o c) Central planning
o d) Corporate forecasting
o Answer: b) Contingency planning
35. What is the main feature of a formal organization?
o a) It is flexible and unstructured
o b) It has established roles and responsibilities
o c) It arises from personal relationships
o d) It lacks clear communication patterns
o Answer: b) It has established roles and responsibilities
36. Delegation promotes managerial effectiveness by:
o a) Limiting employee independence
o b) Increasing hierarchical control
o c) Allowing managers to focus on high-priority tasks
o d) Reducing employee responsibility
o Answer: c) Allowing managers to focus on high-priority tasks
37. In a decentralized organization, decision-making is:
o a) Limited to the top management
o b) Concentrated in the headquarters
38. Which structure typically reduces coordination issues in multi-product companies?
o a) Functional structure
o b) Divisional structure
o c) Matrix structure
o d) Project-based structure
o Answer: b) Divisional structure
39. Formal organizations primarily emphasize:
o a) Employee social relationships
o b) Flexible communication patterns
o c) Authority and responsibility
o d) Autonomy of employees
o Answer: c) Authority and responsibility
40. Which of the following describes a company’s long-term goals and ambitions?
o a) Mission statement
o b) Vision statement
o c) Strategic goals
o d) Core values
o Answer: b) Vision statement
Essay Questions (EQs)
41-55. Why is delegation essential for effective organizing?
Delegation is critical in organizing because it involves the downward transfer of
authority, allowing managers to focus on high-priority tasks. It enables effective
time management, ensures employees have a sense of responsibility, and
increases overall productivity. Delegation involves three elements: authority
(right to give commands), responsibility (obligation to perform tasks), and
accountability (being answerable for outcomes). Managers delegate authority
but retain accountability, enhance accountability and motivate employees to
develop their skills and take initiative. Effective delegation also helps build a
hierarchy, allowing for better coordination and teamwork within an organization.
55-70. Why is planning important?
Planning is fundamental as it provides a structured direction for the
organization. It sets goals and objectives, determines required resources, and
formulates strategies to achieve them, ensuring efficient resource use. Planning
fosters coordination across departments, aligns activities toward a common
goal, and reduces uncertainty by forecasting future needs. It is flexible, allowing
for adaptation if circumstances change. Planning also helps managers control
performance by setting benchmarks for evaluating organizational effectiveness,
facilitating strategic adjustments, and ensuring continued alignment with the
organization's mission and vision.
