Business Studies

Significance of management principles

Q: If an organisation takes decisions by considering objectives resources social impact and market change through principles what does this show?

Comprehensive significance of management principles This decision combines many significances together. Exam tip: connect objectives resources society and environment with comprehensive significance.

Q: If an organisation does not compromise quality and customer safety while reducing cost based on management principles which significances are shown together?

Optimum utilisation of resources and social responsibility Cost reduction shows resource use and customer safety shows social responsibility. Exam tip: treat cost saving with safety as combined significance.

Q: If production cost falls due to clear division of work and resource allocation, which significance is shown?

Cost control and efficiency A clear division of work assigns responsibility and reduces overlapping effort. Careful resource allocation ensures that materials, labour, time and equipment are directed to appropriate activities rather than wasted or duplicated. If these improvements reduce production cost, the organisation is controlling costs while using resources more efficiently. Therefore option C is correct. The result does not automatically mean that quality is ignored; efficiency can be achieved while maintaining required standards. Option A is the opposite of the likely result of clarity, and option D is unrelated because coordination normally requires communication. The scenario therefore demonstrates the significance of management principles in improving efficiency and controlling expenditure.

Q: Sales are falling in a company and the manager decides only to increase advertising. Principle based analysis shows poor customer service as the real cause. Which significance does this show?

Useful insight into reality Principles help identify the real cause of a problem. Exam tip: connect real cause analysis with useful insight.

Q: In a factory machine time is idle because work sequence is unclear. Which significance of management principles will apply most directly?

Optimum utilisation of resources Clear work sequence reduces wastage of machines and time. Exam tip: connect idle machine time with optimum utilisation.

Q: Statement one says management principles base decisions on facts and experience. Statement two says they make decisions dependent on blind guesswork. Choose the correct option.

First is correct second is incorrect The first is correct and the second is wrong because principles help scientific decisions. Exam tip: treat guesswork as an incorrect clue.

Q: A mobile company starts chat support when customers demand more online help. Which significance is related to this?

Meeting requirements of changing environment Digital customer demand is a sign of changing environment. Exam tip: connect online demand with changing environment.

Q: A medicine company wants to remove quality checks to reduce cost but management principles stress safe products. Which significance applies?

Social responsibility Safe products show responsibility toward customers and society. Exam tip: connect product safety with social responsibility.

Q: If managerial training analyses decisions of real companies which significance is this an example of?

Basis for training education and research Principles provide a base for training and management education. Exam tip: connect real case analysis with training and research.

Q: If lines of command reporting and responsibility become clear in an organisation which significance is closest?

Effective administration Clear reporting and responsibility make administration effective. Exam tip: connect reporting clarity with administration.

In this Class 12 Business Studies topic from the chapter Principles of Management, students learn why management principles are essential for guiding managerial decisions and actions. The topic explains how these principles help improve efficiency, make better use of resources, support informed decision-making, help organisations respond to changing business conditions, and promote responsible management. It also shows their value in management education, training, and research.

Hard · Level 3 · 25 questions

Practice questions

01If an organisation takes decisions by considering objectives resources social impact and market change through principles what does this show?

0 reads0 helpful★ – (0)

Answer and explanation

Correct answer: A. Comprehensive significance of management principles

This decision combines many significances together. Exam tip: connect objectives resources society and environment with comprehensive significance.

Significance of management principles

Practice questions

18Which option shows both insight into reality and scientific decision together?किस विकल्प में वास्तविकता की समझ और वैज्ञानिक निर्णय दोनों साथ दिखाई देते हैं?

24Which option is an incorrect explanation of the significance of management principles?कौन सा विकल्प प्रबंधन सिद्धांतों के महत्व की गलत व्याख्या है?

Was this question useful?

Student Reviews

Analytics choices

18Which option shows both insight into reality and scientific decision together?

24Which option is an incorrect explanation of the significance of management principles?