Which of the following statements about management is FALSE?

Management is only necessary for profit-making organizations.

The correct answer is option 2- Management is only necessary for profit-making organizations.

Management is only necessary for profit-making organizations is a false statement.

1. Management is required at all levels of the organization. THIS IS TRUE.  The time spent by managers in different functions is different but it is needed at all levels of the organisation. Managers at the top level spend more time in planning and organising than managers at lower levels of the organisation. 

2. Management is only necessary for profit-making organizations. THIS IS FALSE as management is necessary for all organizations not only for profit making organisations. Management is essential for all organisations big or small, profit or non-profit, services or manufacturing. Management is necessary so that individuals make their best contribution towards group objectives. 

3. Management involves decision-making. THIS IS TRUE.  Management translates this work in terms of goals to be achieved and assigns the means to achieve it. This is done in terms of problems to be solved, decisions to be made, plans to be established, budgets to be prepared, responsibilities to be assigned and authority to be delegated.

4. Management is both an art and a science. THIS IS TRUE. The management has features of both art and science. The practice of management is an art. However, managers can work better if their practice is based on the principles of management. These principles constitute the science of management. Management as an art and a science are therefore not mutually exclusive, but complement each other.