1

The Professionals Academy of Commerce, Gujranwala

Test: H3
1) a) b) c) d) Organizational structure is a framework intended to: Requiring workers to have particular skills or qualifications. Giving of orders by a superior to subordinate. Allocate the tasks to be done to suitable individuals or groups. Employees should be discouraged to use

Chapter : 3

2) The Function of Mintzburg Building Block is: a) There should be one head and one plan for each activity. b) Ensure organization follows its mission; manage the organization relationship with the environment. c) Work should be divided and allocated rationally, based upon specialization. d) People should not directly involve in the process of obtaining inputs and obtaining outputs. 3) The principles of organizational structure according to FAYOL is: a) Convey the goals set by strategic apex and control the work of operating core in pursuit of goals. b) Informal communication and self Govt. c) Facilitate the flow of work, information and other resources through business. d) People and resources should reliably be where they are supposed to be. 4) Which one of following is a feature of Job Description which used in communicating the organization structure: a) Includes responsibilities, authority and work involved. b) Detail about all positions in the organization. c) Standard principles and working practices. d) Need to analyze organizational details. 5) a) b) c) d) Which one of following is a advantage of Entrepreneurial structure: Exploits specialist functional skills. Flexible Reduce the number of level of management. Squabbles over allocation of central cost can occur.

6) a) b) c) d) 7) a) b) c) d) 8) a) b) c) d) 9) a) b) c) d)

Which one of following is a disadvantage of Entrepreneurial structure: Functional Heads may build empires and inter functional disputes may result. Poor Decisions which have to pass along a line of authority. Lack of career structure for lower level of employees. A smaller enterprise. Which one of following is a feature of Functional structure: Clean lines of reporting and authority exist. Informal procedures and paperwork characterize the type of structure. Functional structure has total control over running of business. Functional structure flexible to change. Which of following factors not affecting the amount of Decentralization in a business: If size of organization increases. Extent of local knowledge needed. Help develop the skills of junior managers. Geography of location. Which one of following is not a advantage of Centralization: Decisions are made at one point. Greater speed of decision making. Senior managers keep control. Senior managers can take a wider view.

10) Which one of following is a feature of Tall Business: a) Small groups enable team members to participate in decisions. b) More opportunity for Delegation. c) Relatively cheap. d) Speed of communication between strategic apex and operational core. 11) Which one of following is a feature of FLAT Business: a) Narrow control spans. b) More opportunity for Delegation c) Small groups enable team members to participate in decisions. d) A large numbers of steps on the promotional ladder.

12) Which one of following is a advantage of Bureaucracy: a) They suppress innovation, they can inhibit creativity. b) Uniformity creates conformity, inhibiting the personal development. c) Slow to change. d) They can be very efficient in a stable environment. 13) Which one of following is a disadvantages of Bureaucracy: a) Ideal for standardized, routine task. b) Rigid adherence to procedures may be necessary to fairness. c) Slow decision making because rigidity and length of authority networks. d) They can be efficient in stable environment. 14) Which one of following is feature of sole trader ship: a) Sole traders take drawings from business. b) The Proprietor is not wholly liable for the debts of business. c) There is a legal distinction between proprietor and business. d) A Sole trader business cannot be sold as a Going Concern by its owner. 15) Which one of following is a feature of Partnership: a) Partners cannot take Drawings from the business. b) A share in Partnership is a form of Property as such and selling it can be difficult. c) All Partners are actively involved in Business. d) THE Business is not legally distinct from its owners and not depends upon the form of partnership used. 16) Which one of following is not a advantage of partnership: a) Partners taking all decisions and getting things done. b) Partners can be left with the liability for debts run up by another partner without their knowledge. c) There is no publicity requirement. d) Partners of being their own boss. 17) Which one of following is not a feature of limited company: a) The company is legally distinct from its owners. b) Shareholders take dividend from business. c) Shares are form of Property that can be sold by owners. d) There is no legal distinction between shareholders and business.
3

18) Which one of following is not advantage of limited company: a) The separate legal Personality of the company. b) The limited liability of its members. c) Company should keep their records prescribed by Companies ACT 2006. d) A Change in ownership does not affect continued business. 19) Which one is advantage of Joint Venture: a) Security for loans including floating as well as fixed. b) They take drawings from the business. c) Reduce Competition. d) There are no publicity requirements. 20) Which one of following is disadvantage of Groups: a) Skills, Expertise and equipment matters can be shared. b) Funds can be moved around a group of companies as required. c) Risk of failure is spread. d) The failure of a group company can have detrimental effects on all other companies in the group.
________________________