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Home Questions VCCZ3S5ZEE
Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Which of the following are the characteristics of Formal Organization?

(A) It is directed by rules.
(B) Communication takes place through the scalar chain
(C) Arises as a result of company rules and policies
(D) Leaders may or may not be managers. They are chosen by the group.

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer:

(A), (B) and (C) only

Explanation:

The correct answer is Option (2) → (A), (B) and (C) only

Characteristics of Formal Organization:

  • (A) It is directed by rules → True, formal organization functions strictly as per rules and regulations.

  • (B) Communication takes place through the scalar chain → Correct, communication follows the official hierarchy.

  • (C) Arises as a result of company rules and policies → True, formal organization is deliberately created by management.

  • (D) Leaders may or may not be managers. They are chosen by the group → False. This is a feature of informal organization, not formal.

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