Management Skills MCQs

Management Skills MCQs

Our team has conducted extensive research to compile a set of Management Skills MCQs. We encourage you to test your Management Skills knowledge by answering these 90+ multiple-choice questions provided below.
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Which of the following characterise a 'differentiation'-based business model?

1.High sales volume

2.High profit margin

3.Well- regarded brand

4.High-quality manufacture

A.   1,2 and 4

B.   2, 3 and 4


1, 3 and 4


1, 2 and 3

E.   All of the above

2: There are some important measures which a company can use to determine the effects of training. Which of the following is not one of them?

A.   Production

B.   Changes in specific results, such as turnover

C.   Job applications

D.   Profit of the company

E.   Overall growth

3: Which of the following would help a company manufacture products to the standard required by the customer?

A.   Performance appraisal

B.   Stock control

C.   Quality control

D.   Strategic planning approach

4: Which of the following statements is not likely to characterize a planning approach to strategy development?

A.   Strategies are the outcome of rational, sequential, and methodical practices

B.   Definite and precise objectives are set

C.   Strategies are developed by negotiation and bargaining between interest groups

D.   Defined procedures for the implementation and achievement of strategic objectives are developed

E.   None of the above

5: Which of the following is an external source of recruitment?

A.   Promotion from within

B.   Transfer of employees

C.   Unsolicited applicants

D.   Staff returning from maternity leave

6: Which ratio shows an organization's effectiveness in minimizing production costs?

A.   Gross profit ratio

B.   Current ratio

C.   Efficiency ratio

D.   Selling ratio

7: Which one of the following is not the purpose of Performance Appraisal?

A.   It can serve as a basis for job change or promotion.

B.   It serves as a guide for formulating a suitable training and development program.

C.   It provides the rational foundation for the payment of piece work, wages, bonuses, etc.

D.   It makes the worker committed and loyal to the organization.

E.   It serves as feedback to the employee.

8: Which of the listed management functions involves creating an environment where everyone works together to achieve the common goals of the organization?

A.   Planning

B.   Controlling

C.   Leading

D.   Recruiting

E.   Organizing


Which of the following are not legitimate risk management options?








1 and 4


2 and 3


5 and 6

D.   2 and 5


1 and 6

10: Which two factors are combined to evaluate the size of risks facing an organization?

A.   Probability and Scale.

B.   Impact and Importance

C.   Probability and Impact

D.   Scale and Importance.

11: Which of the following is a current liability of a business?

A.   Cash

B.   Debtors

C.   Bank overdraft

D.   Work in progress

12: Which term refers to an internal framework for ensuring that an organization behaves responsibly?

A.   Performance monitoring

B.   Governance

C.   Strategy

D.   Watchdog

E.   Stakeholder

13: What does the term 'Unity of Control' stand for under Principles of Organizing?

A.   That there should be a limit to the number of persons that can be supervised effectively by one boss.

B.   That each subordinate should have only one superior whose orders he has to obey.

C.   That the line of authority from the chief executive at the top to the first line supervisor at the bottom must be clearly defined

D.   That the activities of the enterprise should be divided according to functions and assigned to persons according to their specialization.

14: In decentralization, subordinates ----------------- .

A.   enjoy significant powers

B.   are permitted limited powers

C.   Do not get any powers

D.   work unsupervised

E.   are no longer managed

15: A tool to plot the duration of activities in a project and its dependencies is named after:

A.   Robert George

B.   Toby Williams

C.   Henry Gantt

D.   Samuel Edwards

16: Which of the following is not included in calculating working capital?

A.   Stock of work in progress

B.   Plant

C.   Debtors

D.   Creditors

17: A manager is seeking to introduce new working conditions. Which of the following is the best way to gain employees' cooperation?

A.   Send an email to the entire staff informing them of the new conditions.

B.   Post the new instructions on a notice board.

C.   Organize a briefing for the entire staff.

D.   Discuss the proposals with staff representatives.

18: Self-regulation, one of the characteristics of an effective leader, is defined as the ability to -----.

A.   understand one's own reactions and the effect of one's behavior on other team members.

B.   control oneself and to reflect in complex situations.

C.   maintain an ongoing commitment to a goal in often turbulent and chaotic times.

D.   understand the complexities of other people's situations.

E.   maintain teamwork in situations where uncertainty can isolate and drive people apart.

19: Long-term budgets are useful for those industries where the gestation period is long. Which of the following is not relevant to the above statement?

A.   Machinery

B.   Electricity

C.   Textile

D.   Engineering

20: Which term refers to an activity or a series of activities that transform inputs into outputs?

A.   Process

B.   Policy

C.   Practice

D.   Paradigm

21: If a manager is attempting to establish motivational goals for his employees, which of the following should he do?

A.   Involve subordinates in the goal-setting process

B.   Set goals that are stated in very general terms

C.   Set conflicting goals so employees can accomplish one goal or another as they choose

D.   Set goals that are easy to achieve

22: 'Span of Control' relates to the ------------ .

A.   division of responsibility

B.   delegation of authority

C.   number of persons to be supervised

D.   the physical area managed by a person

23: Which of the following is generally an inappropriate reason for delegation?

A.   It relieves the manager of his/her heavy workload

B.   It frees the manager to address more complex, higher-level needs.

C.   Someone else is better qualified to do the task that needs to be done.

D.   It helps create a formal organizational structure.

24: Which of the following is not a key function of leadership?

A.   Enthusing and inspiring staff

B.   Setting strategic direction.

C.   Being accountable for performance.

D.   Closely monitoring the execution of tasks

25: Operations can be classified according to their volume and variety of production, as well as the degree of variation and visibility. Which of the following operations would be classified as high-volume, low-variety?

A.   A cashier's

B.   A carpenter's

C.   A family doctor's

D.   A front-office bank's

26: Which item appears in both the balance sheet and the profit and loss account?

A.   Suppliers

B.   Heating

C.   Sales

D.   Closing stock

27: Which of the following is not a function of a 'transactional' leader?

A.   Moving resources from areas of lesser productivity to areas of greater productivity

B.   Working within a culture and competently supervising and coordinating the day-to-day management.

C.   Maintaining the system through control of current procedures.

D.   Recognizing and clarifying roles and task requirements.

E.   Maintaining an organization's operation rather than changing it.

28: Which of the following is not a financial statement?

A.   Statement of Financial Loss

B.   Income Statement

C.   Balance Sheet

D.   Statement of Retained Earnings

E.   Statement of Cash Flow

29: Which term refers to a document that sets out an organization's 'rules' regarding

A.   Process

B.   Policy

C.   Procedure

D.   Practice

E.   Paradigm

30: Which of the following types of costs is not typically 'variable':

A.   Cost of raw materials

B.   Cost of marketing

C.   Cost of lighting

D.   Cost of transportation

31: Which one of the following best completes the sentence: "Division of work promotes ____________."

A.   Effective management

B.   Efficiency

C.   Experience

D.   Equality

32: If the financial year starts in January, the Fixed Budget will be prepared ------------ .

A.   a month or two earlier

B.   in January

C.   at the end of that year

D.   as and when the Financial Manager decides

33: Which of the following defines 'apprenticeship' training?

A.   A method of training meant to give the trainee sufficient knowledge and skill in those trades and crafts in which a long period of training is required for gaining complete proficiency.

B.   A method of training which is generally provided to the skilled and technical personnel

C.   A method involving the creation of a separate training centre within the plant itself for the purpose of providing training to new employees.

D.   A method of training designed to help new staff rapidly to acquire simple skills

34: Set-up costs that make it difficult for new companies to enter a particular market are known as--------------------- .

A.   hurdles to entry

B.   barriers to entry

C.   obstacles to entry

D.   impediments to entry

35: Which one of the following is not the function of Personnel Management?

A.   Procurement of the right kind and number of persons.

B.   Training and development of employees.

C.   Integration of the interests of the personnel with that of the enterprise.

D.   Management of customer requirements

36: Which of the following activities should not be outsourced?

A.   Core business

B.   Project management

C.   Human Resources

D.   Marketing

E.   Sales

A.   CAD

B.   CAM

C.   Decision Tree Analysis

D.   Artificial Intelligence

E.   CAP

38: In which of the following circumstances is the directive method of introducing planned change inappropriate?

A.   When the manager enjoys sufficient position power (e.g.: he/she has significant control over rewards and punishments).

B.   When the employees are achievement-motivated and willing to accept the change.

C.   If organization communication pattern is 'star-type', which favors the change agent as a leader over his subordinates

D.   When the driving forces far outweigh the restraining forces.

39: Selling stock not actually owned in the expectation that the price will fall is known as----------------------- .

A.   going long

B.   flotation

C.   short-selling

D.   divestment

40: The 'Principle of Order' applies to-------------- .

A.   one head and one plan

B.   right person in right job

C.   issuing instructions

D.   justice and kindness


In which order would the following strategic planning activities take place? 

1.Evaluating performance

2.Devising strategy

3.Documenting plans

4.Executing plans

A.   2, 4, 3, 1

B.   4, 3, 1, 2

C.   3, 2, 1, 4

D.   4, 1, 3, 2

E.   2, 3, 4, 1

42: What is the main advantage of employing staff on a temporary basis?

A.   Greater flexibility in responding to customer requirements

B.   Improved productivity

C.   Enhanced customer satisfaction

D.   Lower staff turnover

43: Jack Smith was reviewing the performance of his employees and was trying to decide which of them could profit the most from some additional managerial involvement. Listed below are the four employees he is considering. Everything else being equal, which of the following employees will benefit from the additional managerial involvement as a result of his/her performance being most appreciated?

A.   Johnson, who has successfully worked independently for several years.

B.   Marko, who has recently been assigned a highly-challenging, but relatively-unstructured task.

C.   Baker, who has been employed with the firm in a variety of related positions for nearly fifteen years.

D.   Louis, who recently received recognition for outstanding service.

44: Which one of the following is another term for the Scalar Principle?

A.   Span of Control

B.   Unity of Direction

C.   Unity of Command

D.   Chain of Command

E.   Personal ability

45: If a subordinate is having difficulty carrying out a delegated task, what should a manager do?

A.   Take over the task for the employee so he or she will not become demoralized.

B.   Be available as a role model and resource in identifying alternative solutions.

C.   Be available as a role model and resource in identifying alternative solutions.

D.   Give the employee a second delegated task so he or she has another opportunity to prove his worth.

46: What is a 'stakeholder map'?

A.   A means of plotting the location of customers

B.   A means of identifying all those affected by the organization.

C.   A means of targeting your intended market.

D.   A means of predicting sales growth.

47: Which of the following can be used as a term for Supervisor?

A.   Area manager

B.   Specialty manager

C.   Front-line manager

D.   Technical manager

48: In the 'situational' leadership style, the manager is concerned with ___________.

A.   task accomplishment

B.   human relations and teamwork

C.   giving free rein to his/her staff

D.   prompt, orderly performance

E.   growth for staff and himself/herself

49: A Mission Statement: ------------------- .

A.   provides information as to what the organization is trying to achieve.

B.   outlines a task to be undertaken by a team.

C.   summarizes the outcome of a project.

D.   sets out the high-level structure of the organization

50: A tool for evaluating organizational performance across the full range of a business is known as a 'balanced ________'.

A.   scorecard

B.   ledger

C.   matrix

D.   healthcheck