Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Nature and significance of Management

Question:

Read the following passage and answer the question.

ABC Ltd set up a factory in a remote village U.P. to manufacture solar lights because there was no good source of electricity. It priced its solar light at ₹100 per piece. After setting up the factory, they noticed that demand was increasing day by day so they decided to increase production so that high sales could be generated. To increase sales, a Production manager named Ayush carries out the plans as framed by his superior. The company also decide to employ people from the nearby villages as there were very few job opportunities in those areas. It also opened schools for the children of its employees. At the last of the financial year, they found that their products did not reach the market on time and due to which sales reduced and its per product cost is ₹95.

At which level Ayush works in the company?

Options:

Top level

Middle level

Lower level

None of these

Correct Answer:

Middle level

Explanation:

The correct answer is option 2- Middle level.

Ayush played the role of a Production Manager in the company's operations means he is working at middle level. At middle level, people are usually known as division heads, for example production manager. Middle management is responsible for implementing and controlling plans and strategies developed by top management. At the same time they are responsible for all the activities of first line managers. Their main task is to carry out the plans formulated by the top managers.