Free Organising 02 Practice Test - 12th Grade - Commerce 

Question 1

Name the organisation in which employees are allowed to communicate freely and these are no rules and regulations.

A.

Formal

B.

Informal

C.

Functional

D.

None of these

SOLUTION

Solution : B

In an informal organisation, employees can communicate freely.

Question 2

Formal organisation is rigid in nature while informal organisation is flexible. State true or false.

A.

True

B.

False

SOLUTION

Solution : A

True. Formal organisation is rigid in nature while informal organisation is flexible.

Question 3

Identify the type of organisation if it is deliberately created by the top management.

A.

Informal organisation

B.

Formal organisation

C.

Centralised organisation

D.

None of these

SOLUTION

Solution : B

Formal organisation is the type of organisation that is deliberately created by the top management.

Question 4

Identify the type of organisation, if management is unplanned and arises spontaneously.

A.

Formal organisation

B.

Informal organisation

C.

Centralised organisation

D.

None of these

SOLUTION

Solution : B

Informal organisation is appropriate if management is unplanned and arises spontaneously.

Question 5

Name the concept that reduces the workload of a manager.

A.

Delegation of authority

B.

Delegation of responsibility

C.

Delegation of accountability

D.

None of these

SOLUTION

Solution : A

Delegation of authority is the concept that reduces the workload of a manager.

Question 6

The employees of Manav Ltd, have formed a dramatic group for their recreation. Identify the type of organisation.

A.

Formal

B.

Informal

C.

Functional

D.

None of these

SOLUTION

Solution : B

Since the dramatic group is made for recreation, the members of the group communicate freely and there won't be any strict hierarchical order or reporting relationships. The organisation arises spontaneously. This is an example of informal organisation.

Question 7

Which of the following is not an element of delegation?

A.

Accountability

B.

Responsibility

C.

Authority

D.

Informal organisation

SOLUTION

Solution : D

Informal organisation is not an element of delegation.

Question 8

A network of social relationships that arises spontaneously due to the interaction of work is called:

A.

Formal

B.

Informal

C.

Decentralisation

D.

Delegation

SOLUTION

Solution : B

A network of social relationships that arise spontaneously due to the interaction of work is called informal organisation.

Question 9

The form of organisation that known for giving rise to rumours is called:

A.

Centralised organisation

B.

Decentralised organisation

C.

Informal organisation

D.

Formal organisation

SOLUTION

Solution : C

The form of organisation that known for giving rise to rumours is called an Informal organisation

Question 10

For delegation to be effective, it is necessary that responsibility be accompanied with necessary___

A.

Authority

B.

Manpower

C.

Incentives 

D.

Promotion

SOLUTION

Solution : A

For delegation to be effective, it is necessary that responsibility is accompanied with the necessary authority.