Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Nature and significance of Management

Question:

Read the following passage and answer the following questions.

XYZ Ltd has the business of manufacturing clothes for children under the age of 8. For the successful completion of the goal of manufacturing of 100,000 clothes in 45 days, all the activities of the company are divided accordingly. A group of 5 friends named (Biti, Niti, Piti, Siti, Miti) is working in that company but their work is not the same. Every individual is responsible for successful completion of a particular task. The authority-responsibility relationship binds them as superiors and subordinates.

* Biti performed the function of analyzing the business environment and its implications on the company.
* Niti's job is to intepret the policies framed by Piti.
* Siti has to make sure that the workers have safe and proper working conditions for the work.
* Miti is the chairman of the company.

At which level Biti is working in the company?

Options:

Top level

Middle level

Lower level

None of these

Correct Answer:

Top level

Explanation:

The correct answer is option 1- Top level.

Biti is working in the company at the top level because he is performing the function of analyzing the business environment and its implications on the company. This function is performed by the top level manager.

The various Function of top level are as follows-

  • To integrate diverse elements and coordinate the activities of different departments according to the overall objectives of the organisation.
  • Responsible for the welfare and survival of the organisation. They analyse the business environment and its implications for the survival of the firm.
  • Formulate overall organisational goals and strategies for their achievement.
  • Responsible for all the activities of the business and for its impact on society.