Free Organisational Structure and Management MCQs with Answers
30 Organisational Structure and Management MCQs from Introduction to Business, each with the correct answer and a written explanation of why it is correct. Free and unlimited, with no account needed.
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
Last updated
30 questions · page 1 of 2
- A. Project completion dates
- B. Geographical territories
- C. Customer income levels
- D. Specialised business activities
Explanation: A functional structure groups people by activities such as marketing, finance, production and human resources.
Correct answer: Specialised business activities- A. Matrix structure
- B. Divisional structure
- C. Functional structure
- D. Line structure
Explanation: A matrix structure combines functional and project or product authority, so an employee may report to two managers.
Correct answer: Matrix structure- A. Process departmentalisation
- B. Product departmentalisation
- C. Functional departmentalisation
- D. Territorial departmentalisation
Explanation: Product departmentalisation places activities into units based on the products or product lines served.
Correct answer: Product departmentalisation- A. The number of management levels
- B. The range of products offered
- C. The length of the production cycle
- D. The number of subordinates supervised
Explanation: Span of control is the number of employees who report directly to a manager.
Correct answer: The number of subordinates supervised- A. Highly centralised
- B. Highly decentralised
- C. Highly informal
- D. Highly specialised
Explanation: Centralisation means decision-making authority is concentrated at higher organisational levels.
Correct answer: Highly centralised- A. Frequent informal decisions
- B. Dependence on written rules
- C. Unclear reporting relationships
- D. Extensive employee discretion
Explanation: Formalisation is the extent to which jobs and behaviour are guided by written rules, procedures and standards.
Correct answer: Dependence on written rules7. The principle that each employee should receive orders from only one direct superior is known as:
- A. Scalar chain
- B. Division of work
- C. Unity of command
- D. Span of control
Explanation: Unity of command requires an employee to have one direct reporting authority, which reduces conflicting instructions.
Correct answer: Unity of command- A. Coordination
- B. Standardisation
- C. Centralisation
- D. Delegation
Explanation: Delegation involves transferring authority and assigning responsibility to a subordinate for carrying out a task.
Correct answer: Delegation- A. It gives direct authority over core operations
- B. It provides specialist advice only
- C. It operates outside the chain of command
- D. It applies only to temporary projects
Explanation: Line authority is the direct authority managers exercise over activities that contribute to the organisation's main objectives.
Correct answer: It gives direct authority over core operations- A. Stable and highly predictable
- B. Strictly regulated and repetitive
- C. Dynamic and rapidly changing
- D. Based on fixed operating routines
Explanation: Organic structures use flexible roles, decentralised decisions and open communication, making them suitable for changing environments.
Correct answer: Dynamic and rapidly changing- A. Product
- B. Work process
- C. Customer type
- D. Geography
Explanation: Geographical departmentalisation groups activities according to territory or region.
Correct answer: Geography- A. A complete product or market area
- B. Only one specialised business activity
- C. Only the organisation's support services
- D. All decisions made by head office
Explanation: A division is usually organised around a product, service, customer group or region and contains several major functions.
Correct answer: A complete product or market area- A. Line authority
- B. Staff authority
- C. Functional authority
- D. Personal authority
Explanation: Staff authority gives specialists the right to provide advice, expertise and support.
Correct answer: Staff authority- A. Flat structure
- B. Project structure
- C. Tall structure
- D. Network structure
Explanation: A tall structure has several hierarchical levels and a narrow span of supervision at each level.
Correct answer: Tall structure- A. Network structure
- B. Divisional structure
- C. Geographical structure
- D. Functional structure
Explanation: A functional structure places similar specialists together, such as finance, marketing and production.
Correct answer: Functional structure- A. Span of control
- B. Chain of command
- C. Departmental grouping
- D. Management by objectives
Explanation: The chain of command shows the formal reporting path through the organisation.
Correct answer: Chain of command- A. Requiring all purchases to be approved by the chief executive
- B. Giving regional managers authority over local operations
- C. Adding more decisions to the head office agenda
- D. Removing decision rights from department managers
Explanation: Decentralisation distributes decision-making authority to lower levels or separate units.
Correct answer: Giving regional managers authority over local operations- A. Line structure
- B. Functional structure
- C. Network structure
- D. Machine bureaucracy
Explanation: A network structure relies on external organisations for important activities and coordinates them through a central organisation.
Correct answer: Network structure- A. Permanent functional structure
- B. Customer-based structure
- C. Geographical structure
- D. Project-based structure
Explanation: A project-based structure organises people around a specific, often temporary objective.
Correct answer: Project-based structure20. When an organisation groups its activities around the different types of buyers it serves, it uses:
- A. Customer departmentalisation
- B. Process departmentalisation
- C. Product departmentalisation
- D. Functional departmentalisation
Explanation: Customer departmentalisation creates units to meet the needs of distinct customer groups, such as corporate and retail buyers.
Correct answer: Customer departmentalisationOrganisational Structure and Management MCQs: common questions
Are these Organisational Structure and Management MCQs free?
Yes. All Organisational Structure and Management MCQs from Introduction to Business are free on TestUstad, with unlimited attempts and no account needed. Nothing on this page is a sample or a trial.
How many Organisational Structure and Management MCQs are on this page?
There are 30 Organisational Structure and Management MCQs in the Introduction to Business bank, shown 20 to a page with the correct answer and an explanation on each.
Does every Organisational Structure and Management MCQ have an explanation?
Yes. Each Organisational Structure and Management question shows the correct option and a written explanation of why it is correct, so a wrong answer teaches you something rather than just being marked wrong.
Can I take a timed Organisational Structure and Management test?
Yes. The practice button on this page starts a free Organisational Structure and Management test drawn from the Introduction to Business bank. It marks each answer instantly, gives you a score at the end, and can be retaken as many times as you like.