Free Principles of Management MCQs with Answers

• A. comparison
• B. analysis
• C. benchmarking
• D. return analysis

Explanation: Benchmarking means comparing an organisation's performance or practices with those of leading or best-performing firms.

• A. Comparison
• B. Analysis
• C. Bench marking
• D. Return analysis

Explanation: Benchmarking is the systematic comparison of an organisation's performance or processes with leading firms to identify performance gaps…

• A. Sole-proprietorship
• B. General Partnership
• C. Limited Partnerhsip
• D. Corporation

Explanation: In a general partnership, every general partner shares profits and losses and has unlimited personal liability for the firm’s debts.

• A. Budget
• B. Target
• C. Rule
• D. Qouta

Explanation: A rule is a standing plan that prescribes a standard course of action for recurring situations.

• A. personal competencies
• B. interpersonal competencies
• C. business management
• D. Both A and C

Explanation: Supply chain management deals with coordinating purchasing, production, distribution and logistics, so it falls under broader business…

• A. linking performance and pay
• B. scientific management movement
• C. performance based system
• D. low-performance work system

Explanation: Scientific management uses systematic observation, work measurement and analysis to find more efficient work methods.

• A. Set an objective
• B. Evaluate alternatives
• C. Determine strength and weaknesses
• D. none of aboveHuman Resources

Explanation: After objectives are set, managers examine internal strengths and weaknesses to understand the organisation’s current position before…

• A. Horizontal integration
• B. Vertical integration
• C. Geographic expansion
• D. none of above

Explanation: Operating in additional countries expands the firm's geographical reach without necessarily changing its production stages or ownership…

• A. Vertical integration
• B. Diversity
• C. Geographic coverage
• D. all of aboveBusiness Formation

Explanation: Strategic objectives can specify the firm's intended scope through choices such as vertical integration, diversification, and geographical…

• A. Potential opportunities
• B. Potential Threats
• C. Potential Strengths
• D. Potential Weaknesses

Explanation: Market leadership is an internal capability or advantageous position, so it is classified as a strength in SWOT analysis.

• A. Geographic expansion
• B. Consolidation
• C. Diversification
• D. Horizontal integration

Explanation: Consolidation generally involves reducing or combining parts of a company to create a smaller, more streamlined organization.

• A. Conglomerate diversification
• B. Related diversification
• C. Both A and B
• D. none of above

Explanation: Moving from tyres into entertainment places the company in an unrelated industry, so it is conglomerate or unrelated diversification.

• A. Set an objective
• B. Evaluate alternatives
• C. Determine strength and weaknesses
• D. none of aboveMcqs Practice Tests

Explanation: Planning begins by deciding what the organization wants to achieve, because objectives provide the standard for evaluating alternatives…

• A. Corporate strategy
• B. Competitive strategy
• C. Functional strategy
• D. Both a and b

Explanation: A functional strategy guides a particular department, such as marketing, finance, or HR, in contributing to the organization's overall…

• A. external and internal audit
• B. Formulating a new direction
• C. Formulating strategies
• D. Implement the strategies

Explanation: After defining the current business, an organization examines its external environment and internal capabilities through an external and…

• A. Potential opportunities
• B. Potential Threats
• C. Potential Strengths
• D. Potential Weaknesses

Explanation: Access to new overseas markets is an external condition that may create growth, so it is classified as a potential opportunity.

• A. Consolidation
• B. Horizontal integration
• C. Cost leadership
• D. all of above

Explanation: “Save money, Live better” emphasizes offering lower prices through efficiency, which reflects a cost-leadership strategy.

• A. Consolidation
• B. Geographic expansion
• C. Differentiation
• D. Both a and b

Explanation: Corporate strategy deals with the overall scope and direction of a diversified organization, including consolidation and expansion into…

• A. Strategic planning
• B. Strategic fit
• C. Corporate strategy
• D. Competitive strategy

Explanation: Strategic fit means aligning departmental plans and capabilities with the company’s competitive aims and overall strategy.

• A. Strategic planning
• B. Corporate plan
• C. Strategy
• D. all of above

Explanation: Strategic planning involves matching an organization’s internal capabilities with demands and opportunities in its environment.