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Business Management, Ethics and Communication

Description: This is a Mock Test for Business Management, Ethics and Communication.
Number of Questions: 50
Created by:
Tags: Business Management Ethics and Communication Planning Human Resource Management Controlling Direction and Coordination Business Ethics Essentials of Good English Business Correspondence E-Correspondence Administration
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Business Management Planning is

  1. looking ahead

  2. guiding people

  3. delegation of authority

  4. Looking backward


Correct Option: A
Explanation:

Planning involves mapping out exactly how to achieve a particular goal. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. It has relation with Implementation and controls. Plans do not always proceed as conceived. Planning is looking ahead is true because it contributes heavily to success and gives us some control over the future. Thus, it is said that planning is looking ahead as it involves predicting the future.

Staffing needs

  1. man power planning

  2. authority

  3. communication

  4. None of the above


Correct Option: A
Explanation:

Staffing is concerned with employing people for the various activities to be performed. The objective of staffing is to ensure that suitable people have been appointed for different positions.

Maslow’s need hierarchy covers

  1. psychological needs

  2. security needs

  3. self actualization needs

  4. All of the above


Correct Option: D
Explanation:

Maslow, a psychologist, developed a theory of motivation based on human needs arranged in a particular order from the lower to the higher and it covers all the above mentioned needs.

Unity of Command means

  1. Parity of Authority and Responsibility

  2. Flow of Command from Subordinate to Superior

  3. Flow of Command from Superior to Subordinate

  4. None of the above


Correct Option: C
Explanation:

Unity of command means that a subordinate should work under the supervision of one superior only from whom he gets instructions and to whom he is accountable. It avoids confusion in authority and instructions.

Scientific Management is the contribution of

  1. F.W Taylor

  2. Henri Fayol

  3. R.C. Davis

  4. Lyndall Urwick


Correct Option: A
Explanation:

Frederick Winslow Taylor, is popularly known as the ‘father of scientific management’.

The word “management” derives its origin from a Greek word

  1. Nomo

  2. Verh

  3. Xus

  4. Gest


Correct Option: A
Explanation:

The word “management” has its origin in the Greek word ‘nomo’ which means ‘management’.

Ranking, Rating scale, Check list are the methods of

  1. Transfer Management

  2. Performance Appraisal

  3. Promotional Methods

  4. Job Description


Correct Option: B
Explanation:

Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit rating. It implies employing of various rating techniques for comparing individual employees in a work group in terms of their personal strengths and weaknesses with respect to the requirements of their respective jobs.

Effective control requires

  1. flexibility

  2. rigidity

  3. high cost

  4. none of the above


Correct Option: A
Explanation:

Controls are not an end in themselves. In order to accomplish objectives if it becomes necessary to revise the plans, the control system must have the attribute to adapt itself to new developments. Control must be flexible in the sense that it should respond favourably to the conditions.

Zero Base Budgeting was first introduced in

  1. Japan

  2. USA

  3. India

  4. China


Correct Option: B
Explanation:

Zero base budgeting is a new approach to budgeting, which was first introduced by Peter Pyhrr in 1970 in the United States.

POSDCORB was coined using the initial letters of management function by

  1. Koontz O’Donnel

  2. Luther Gulick

  3. Peter F. Drucker

  4. Henry Mintzberg


Correct Option: B
Explanation:

Luther Gulick coined the word POSDCORB using the initial letters of management functions: planning (P), organising (O), staffing (S), directing (D), coordinating (CO), reporting (R), and budgeting (B).

The economic environment around us consists of which basic entities

  1. Households (the consumers),

  2. Firms (the producers)

  3. Government (the co-coordinator)

  4. All of the above


Correct Option: D
Explanation:

The economic environment around us consists of three basic entities – Households (the consumers), Firms (the producers) and Government (the co-coordinator).

Modern control system is ___________ rather than work or job oriented

  1. Worker-focused

  2. Job-focused

  3. Incentive-focused

  4. None of the above


Correct Option: A
Explanation:

Modern control system is worker-focused rather than work or job oriented.

A general enduring statement of the intent of business which reflects the belief and philosophy of management is known as

  1. Mission

  2. Vision

  3. Objectives

  4. None of the above


Correct Option: A
Explanation:

The mission is a general enduring statement of the intent of business. It reflects the belief and philosophy of the management.

Which one of the following is called the Siamese twins of management?

  1. Planning and Organizing

  2. Directing and Controlling

  3. Planning and Controlling

  4. Co-ordination and Co-operation


Correct Option: C
Explanation:

Planning and controlling are called the Siamese twins of management because they are closely linked to each other.

Management is an art because it involves use of

  1. Experience and intelligence

  2. Creativity and personalization

  3. Skills and knowhow

  4. None of the above


Correct Option: B
Explanation:

Management as an art is personalized in the sense that every manager has his own approach to problems and it is creative in the sense that it is the function of creating productive situations needed for further improvements.

The operative function of a Human Resource Manager means

  1. Those tasks or duties which are specifically entrusted to the personnel department under the general supervision of personnel manager

  2. Those that are the basic functions of planning, organising, directing and controlling in relation to his department

  3. Human resource manager gives advice on human resource matters as he has specialised education & training in managing human relations.

  4. All of the above


Correct Option: A
Explanation:

The operative functions are those tasks or duties which are specifically entrusted to the personnel department under the general supervision of personnel manager. These are concerned with employment, development, compensation, integration and maintenance of personnel of the organization.

Business Ethics is a:

  1. Non relative Norm

  2. Relative Norm

  3. Supportive Norm

  4. Negative Norm


Correct Option: B
Explanation:

Business Ethics are relative norm as they are relative to culture, time period, current events, and current notions of what is ethical.

Business Ethics has a __________ application

  1. Universal

  2. Natural

  3. Practical

  4. None of the above


Correct Option: A
Explanation:

Business Ethics has universal application because business exists all over the world.

Mathematical approach to management is closely related to

  1. Empirical approach of management

  2. Interpersonal behaviour approach of management

  3. Corporate approach of management

  4. Decision theory approach of management


Correct Option: D
Explanation:

Operation researchers and analysts are of the opinion that if planning, decision-making, organizing, etc. conform to logical processes, then the same can easily and suitably be presented in mathematical symbols. The leaning of this school is heavily on expressing and interpreting the basic relationship of the problems in terms of determined goals. In a way, it is thus closely related to decision theory approach.

Which of the following reasons is applicable for unethical business practices?

  1. Workplace Surveillance

  2. Profit making by the big companies

  3. Redressal of customer's grievances

  4. Administrative corruption


Correct Option: D
Explanation:

Ethical behaviour is defined as enterprises adhering to a non-corrupt work or business practice and Corruption is defined as private individuals or enterprises who misuse public resources for private power gains. They do so through abusing public officials whose behaviour deviates from the formal government rules of conduct.

The four types of social responsibility include:

  1. legal, discretionary, economics, and ethical

  2. ethical, moral, social, and economics

  3. philanthropic, justice, economic, and ethical

  4. legal, moral, ethical, and economics


Correct Option: A
Explanation:

Corporate social responsibility is an umbrella term under which the ethical rights and duties existing between companies and society are debated. It includes legal, discretionary, economics, and ethical social responsibility.

The fundamental assumption of ________ is that full advantage of employee potential can be utilized by motivating them to accept organizational objectives.

  1. Theory-X

  2. Theory-Y

  3. Equity Theory

  4. Monistic Theory


Correct Option: B
Explanation:

McGregor gave the assumptions, which he believed could lead to more effective management of people in the organization, under the rubric of Theory Y. The fundamental implication of Theory Y is that full advantage of the personal and professional potential of employees can be taken by motivating them to accept organisational objectives, more particularly when their physiological and safety needs are well satisfied.

The idea of business ethics caught the attention of academics, media and business firms by the end of the

  1. First World War

  2. Second World War

  3. Cold War

  4. None of the above


Correct Option: C
Explanation:

The idea of business ethics caught the attention of academics, media and business firms by the end of the Cold War.

Which of the following is a feature of Business Ethics ?

  1. Business Ethics has a universal application

  2. It is a relative norm and differs from business to business

  3. Business Ethics is based on well accepted moral and social values

  4. All the above


Correct Option: D
Explanation:

 Business Ethics is an art and science for maintaining harmonious relationship with the society, its various groups and institutions as well as reorganizing the moral responsibility for the rightness and wrongness of business conduct.It is universally accepted principle which ensures the good corporate governance. Every organisation has to adopt business ethics standards which are different from business to business according to their activities. 

The expression ‘to formally put an end to’ means

  1. Abolish

  2. Abandon

  3. Excerpt

  4. Surrender


Correct Option: A
Explanation:

The expression ‘to formally put an end to’ in business communication means 'to abolish'.

Ethics in production means

  1. It deals with the duties of a company to ensure that products and production processes do not cause harm.

  2. It deals with the moral principles behind the operation and regulation of marketing

  3. It covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee

  4. All of the above


Correct Option: A
Explanation:

Business ethics of production deals with the duties of a company to ensure that products and production processes do not cause harm.

‘Acts of God’ are the result of

  1. Natural Disasters

  2. Violence

  3. Technological crises

  4. Rumours


Correct Option: A
Explanation:

Natural crises or disasters are the ‘Acts of God’. They are environmental phenomena such as earthquakes, volcanic eruptions, tornadoes and hurricanes, floods, landslides, tsunamis, storms, and droughts that threaten life, property, and the environment.

Which of the following statements is correct about business ethics?

  1. Social responsibility and business ethics are considered different concepts

  2. Making higher profits should be the main objective of a business

  3. A business may sustain only if it cares for society

  4. Companies making ethical investments may not be able to compete


Correct Option: C
Explanation:

A business may sustain only if it cares for society because a business can prosper on the basis of good ethical standards and it helps to retain the business for longer years. Business uses the resources of society, exploits them for earnings, and in turn it should help the society to grow and develop.

‘It is difficult but not impossible to conduct strictly honest business’ is famous quote by:

  1. Mahatma Gandhi

  2. Adam Smith

  3. George Bernaud Shaw

  4. Peter Drucker


Correct Option: A
Explanation:

“It is difficult but not impossible to conduct strictly honest business”, the famous quote is given by Mahatma Gandhi.

It is a process of transformation where the old system can no longer be maintained

  1. Crisis

  2. Stress Management

  3. TQM

  4. MBO


Correct Option: A
Explanation:

Venette argues that "crisis is a process of transformation where the old system can no longer be maintained."

A job application letter is said to be similar to a

  1. Purchase Letter

  2. Sales Letter

  3. Public Notice

  4. None of the above


Correct Option: B
Explanation:

In job application letter, the person "sells” self to a potential employer that they would be an asset to the company. They point out their skills and how they would help the business, their interests that apply, and their future plans of study that would benefit the company. Therefore, a job application letter is said to be similar to sales letter.

Which of the following is a web browser?

  1. Google Chrome

  2. Internet Explorer

  3. Firefox

  4. All of the above


Correct Option: D
Explanation:

 A web browser is a software application for retrieving, presenting, and traversing information resources on the World Wide Web. All the mentioned applications perform these functions for the benefit of the user.

The prefix ‘poly’ in the word ‘polygon’ denotes

  1. Huge

  2. Small

  3. Many

  4. Single


Correct Option: C
Explanation:

The prefix ‘poly’ in the word ‘polygon’ denotes many.

The antonym of the word 'humble' is

  1. Smart

  2. Wise

  3. Proud

  4. Rich


Correct Option: C
Explanation:

The antonym of the word 'humble' in Business Communication is taken to be 'proud'.

These are demanded when buyer returns goods already paid for on grounds of, say, unacceptable quality

  1. Debit Notes

  2. Credit Notes

  3. Sales Letters

  4. Statement of Accounts


Correct Option: B
Explanation:

A note sent from a business to a customer, informing the customer that money has been added to the customer's account is known as Credit note. Credit notes are typically used when products are returned for a refund or in other circumstances where the business must return money to the customer.

When an organisation needs to share important information with the members of general public such as a change of name or representative, it drafts a

  1. Office Orders

  2. Office Notes

  3. Representations

  4. Public Notice


Correct Option: D
Explanation:

It becomes necessary at times to issue notice regarding legal changes. Sometimes, these notices are statutorily required and these are drafted for publication in newspapers/journals.

Telex machines allow exchange of

  1. Photos

  2. Text

  3. Email messages

  4. None of the above


Correct Option: B
Explanation:

Telex is an international system of telegraphy with printed messages transmitted and received by teleprinters using the public telecommunications network.

The part of speech (or word class) that is used to name or identify a person, place, thing, quality, or action is known as

  1. Noun

  2. Verb

  3. Adjective

  4. None of the above


Correct Option: A
Explanation:

The part of speech (or word class) that is used to name or identify a person, place, thing, quality, or action is known as Noun.

It separates or encloses subordinate clauses and phrases in sentences

  1. The Comma (,)

  2. The Hyphen (-)

  3. Full Stop (.)

  4. None of the above


Correct Option: A
Explanation:

The comma separates or encloses subordinate clauses and phrases in sentences.

This began as an American experiment in computer communication technology during the Cold War and has revolutionised the world

  1. Fax

  2. Emails

  3. Telegrams

  4. None of the above


Correct Option: B
Explanation:

Emails began as an American experiment in computer communication technology during the Cold War and have become a fast growing method of communication in the world. It is difficult to think of a business house or an organization without an e-mail contact address.

Communication by the CEO of the organisation to the Purchase Officer is an example of

  1. Upward communication

  2. Downward communication

  3. Horizontal Communication

  4. None of the above


Correct Option: B
Explanation:

Downward communication is the flow of information and messages from a higher level inside an organization to a lower one. Downward communication is frequently used to direct subordinates and transmit information relating to company objectives, policies and procedures. In the given example, the CEO of the company is addressing the Purchase Officer which makes it downward communication.  

The following is an example of which type of letter?

Dear Pradeep, I was delighted to learn that your work on cryogenic engine has been appreciated by the Indian Space Research Organisation. I am confident that it will be possible to manufacture these engines indigenously and our dependence on other countries will end soon.

I feel proud of your achievement and send you my best wishes for the future.

  1. Congratulatory Letter

  2. Sympathy Letter

  3. Thank you Letter

  4. Condolence Letter


Correct Option: A
Explanation:

A "congratulatory letter" is a message of felicitation to a friend, colleague or a business associate who may have earn a promotion, recognition, honour or an award. The achievement may be in the personal or professional arena.

Business ethics are needed to create a faith about the quality, quantity, price etc. of products. The customers have more trust and faith in the businessmen who follow ethical rules. They feel that such businessmen would not cheat them. Which one of the following is appropriate for it?

  1. Sefeguarding consumers’ right

  2. Improve customers’ confidence

  3. Survival of business

  4. Consumer movement


Correct Option: B
Explanation:

Business ethics are needed to improve the customers’ confidence about the quality, quantity, price, etc. of the products. The customers have more trust and confidence in the businessmen who follow ethical rules. They feel that such businessmen will not cheat them.

The proverb “an aged lover” means

  1. A fool and his money are soon parted

  2. There is no fool like an old fool

  3. One man’s meat is another man’s poison

  4. It never rains but pours


Correct Option: B
Explanation:

The proverb “an aged lover” in Business Communications means "There is no fool like an old fool".

A fair-weather friend is a friend

  1. Who comes to your rescue in difficulties

  2. Who deserts you in difficulties

  3. Who is always eager to help you

  4. Who is a friend of your friend


Correct Option: B
Explanation:

friend who supports others only when it is easy and convenient to do so is a fair weather friend.

Which one of the following methods is used frequently by an organization to decide its strategic goal?

  1. Group discussion

  2. Brain storming

  3. Interview

  4. None of the above


Correct Option: B
Explanation:

Strategic goals are business plans that identify and target internal goals, but provide only general guidance on how those plans can be attained. The purpose of a brainstorming session is to work as a group to define a problem, and find, through creative thinking, the best group decision for a plan of action to solve it. Therefore, by brain storming an organization is able to decide its strategic goal.

The idiom ‘To arrest someone’s notice’ means

  1. Cast a slur upon

  2. Catch somebody’s eye

  3. To catch a Tartar

  4. To come off with flying colours


Correct Option: B
Explanation:

The idiom ‘To arrest someone’s notice’ means to catch somebody’s eye.

A _____________ sentence contains only one finite verb and can make only one complete statement

  1. Simple

  2. Complex

  3. Compound

  4. None of the above


Correct Option: A
Explanation:

A sentence which has only one finite verb and one independent clause is called Simple sentence.

"To transform into a purer or idealized form" means

  1. Sublimate

  2. Vandal

  3. Ransack

  4. Revive


Correct Option: A
Explanation:

"To transform into a purer or idealized form" means to "sublimate".

_____ means to flow out, issue, or proceed, as from a source or origin; come forth; originate.

  1. Lapse

  2. Emanating

  3. Bipartite

  4. None of the above


Correct Option: B
Explanation:

In Business Communications, "emanating" means to flow out, issue, or proceed, as from a source or origin; come forth; originate.

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