Worksheet – Business Studies Dated: 19-02-2018

CHAPTER 7: ORGANIZATION AND MANAGEMENT

OBJECTIVE PART:
1 The best definition of a firm's organisational structure is that:
a) it shows exactly what job everyone does
b) it shows a plan of the offices and factory
c) it shows the levels of management and division of responsibilities
d) it refers to the way in which products are made and pass through the factory
2 As an organisation expands, it is usual for managers to delegate. Which of the following
is the best definition of delegation?
a) Giving authority to junior managers to do particular tasks
b) Passing down full responsibility to subordinates
c) Ordering workers to do certain jobs
d) Keeping full control in the hands of senior managers
3 The chain of command in an organisation is:
a) the links that exist between different departments
b) the method of communication used in the organisation
c) the line of authority which allows orders to be passed down the organisation
d) the lines of communication that exist between workers in one department
4 The span of control is:
a) the number of subordinates directly controlled by one manager
b) the number of departments in a business
c) the number of managers who report directly to each worker
d) the number of levels of hierarchy in the organisation structure
5 One of the benefits of wider spans of control is that:
a) delegation is encouraged as a large number of people are answerable to each manager
b) it will lead to a longer chain of command and better communication
c) staff will be able to spend more time with their manager having their work checked
d) there will be more managers in the organisation

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Worksheet – Business Studies Dated: 19-02-2018

6 If a business delayered its organisation structure (i.e. removed a layer of management)

then spans of control would:
a) fall and the chain of command would lengthen
b) increase and the chain of command would shorten
c) fall and the chain of command would shorten
d) increase and the chain of command would lengthen
7 An advantage of a short chain of command is that:
a) there are many different layers of management to share responsibilities
b) communication tends to be inaccurate as there are so many people involved in passing a
message on c) spans of control tend to be narrower than with a long chain of command.
d) communication between the top management and the other staff levels is quicker
8 Which of the following is not an advantage of an organisational chart?
a) The chart shows how everybody is linked in the organisation
b) Every member of staff can see their own position in the organisation
c) It shows the chain of command and how authority passes down the organisation
d) It indicates the detailed job description of each employee
9 With which type of leadership style do senior managers take all the decisions and
workers are given orders?
a) Autocratic leadership
b) Democratic leadership
c) Laissez-faire leadership
d) Centralised leadership
10 With which type of leadership style do leaders take lithe control, leaving employers to
control their own work?
a) Autocratic leadership
b) Democratic leadership
c) Laissez-faire leadership
d) Centralised leadership

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Worksheet – Business Studies Dated: 19-02-2018

11 With which type of leadership style are employees encouraged to become involved in
decision-making?
a) Autocratic leadership
b) Democratic leadership
c) Laissez-faire leadership
d) Centralised leadership
12 The most appropriate leadership style depends on all of the following except:
a) the level of skill and training of the workers
b) the type of work undertaken by the business
c) whether the business is facing a crisis situation or not
d) the sector of industry the business operates in
13 All of the following are claimed benefits to workers from joining a trade union except
a) advice and support for workers who feel poorly treated by employers
b) strength in numbers when talking to employers about pay and conditions
c) a guaranteed pay increase each year with longer holidays
d) improved communications between workers and managers.
14 Which one of the following is not an important reason for having good managers in the
business?
a) Motivating employees
b) Inspire employees to work hard
c) Keep costs under control
d) Friendly to workers
15 Which one of the following is an important quality of being a good manager?
a) Want to tell people what to do
b) Having good communication skills with subordinates
c) Want to be paid a high salary
d) Doing as little work as possible by getting others to work harder

3 BUSINESS STUDIES | Beaconhouse School System, Gujrat Campus