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Chapter 6 of 10
Important Questions

Fundamentals of Management

NIOS · Class 12 · Business Studies

Most important questions from Fundamentals of Management for NIOS Class 12 Business Studies board exam 2026. MCQs, short answer, and long answer questions with marks.

44 questions33 flashcards5 concepts

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44 Questions·
multiple choice

Sample Questions

1multiple choice
1 marks

According to Fayol's principle of 'Scalar Chain', what does the 'Gang Plank' allow?

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Two employees at the same level to communicate directly in emergencies.

Step 1: Fayol's Scalar Chain is the formal line of authority from the highest to the lowest rank in an organisation. Step 2: Normally, all communication must follow this chain. Step 3: However, Fayol recognised that strictly following the chain in urgent situations can cause delays. Step 4: He suggested the 'Gang Plank' — a direct horizontal communication channel between employees at the same level when an emergency requires it. Step 5: This keeps the scalar chain intact for normal communication while allowing flexibility in emergencies.

2multiple choice
1 marks

Which of the following is NOT a characteristic of management?

Show answer

Management is tangible and easily visible.

Step 1: Go through each option and check if it is a valid characteristic of management. Step 2: 'Universal' — True. Management is needed in every type of organisation. Step 3: 'Continuous process' — True. Management is ongoing as long as the organisation exists. Step 4: 'Goal directed' — True. All management activities are aimed at achieving organisational goals. Step 5: 'Tangible and easily visible' — FALSE. Management is INTANGIBLE. You cannot see management directly; you can only feel its presence through rules, outputs, and work climate. Therefore, Option C is the one that is NOT a charact

3multiple choice
1 marks

The Differential Piece Rate Plan was introduced by Taylor to:

Show answer

Motivate workers by paying higher rates to efficient workers and lower rates to less efficient ones.

Step 1: The Differential Piece Rate Plan is one of Taylor's key techniques. Step 2: Under this plan, two different wage rates are set — a higher rate for workers who meet or exceed the standard output, and a lower rate for those who fall below it. Step 3: For example, if standard output is 100 units and two rates are ₹1 and ₹0.75: a worker producing 120 units earns ₹120 (at ₹1/unit), while a worker producing 80 units earns only ₹60 (at ₹0.75/unit). Step 4: This creates a financial incentive for workers to improve their efficiency. Step 5: It is not about equal wages or reducing workers — it is

4multiple choice
1 marks

Under Taylor's Functional Foremanship, which specialist foreman is responsible for maintaining the planned speed of production?

Show answer

Speed Boss

Step 1: Functional Foremanship is Taylor's technique where a worker is supervised by several specialist foremen, each expert in a specific area. Step 2: There are 8 foremen divided under Planning and Production departments. Step 3: Under the Production Department, the Speed Boss is responsible for maintaining the planned speed of production and investigating causes of delay. Step 4: The Gang Boss arranges workers and materials; the Repair Boss maintains machines; and the Inspector checks quality of output. Step 5: The Route Clerk belongs to the Planning Department and determines the route of r

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Frequently Asked Questions

What are the important topics in Fundamentals of Management for NIOS Class 12 Business Studies?
Key topics in Fundamentals of Management include Fundamentals of Management - Concept Overview, Fundamentals of Management - Comprehensive Overview, Fundamentals of Management — Complete Chapter Overview. These are the concepts NIOS Class 12 examiners draw on most — study them first, then practise related questions.
How to score full marks in Fundamentals of Management — NIOS Class 12 Business Studies?
Understand the core concepts first, then work through the 44 practice questions available for this chapter. Revise formulas and definitions regularly, and use flashcards for quick recall before the exam.
How many important questions are there in Fundamentals of Management?
There are 44 practice questions available for Fundamentals of Management. These cover multiple question types including MCQs, short answer, and long answer questions.

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