Business and Technology MCQ Quiz - Objective Question with Answer for Business and Technology - Download Free PDF

Last updated on May 29, 2025

Latest Business and Technology MCQ Objective Questions

Business and Technology Question 1:

Which business structure is most flexible and informal, often used in startups?

  1. Matrix structure
  2.  Flat structure
  3. Divisional structure
  4. Functional structure

Answer (Detailed Solution Below)

Option 2 :  Flat structure

Business and Technology Question 1 Detailed Solution

The correct option is option 2

Additional Information:

  • Flat organisations have few levels and promote direct communication.
  • Flat structures are ideal for small, agile firms with less bureaucracy.

Business and Technology Question 2:

A tall structure with many levels of hierarchy is most likely to?

 

  1. Encourage faster decision-making
  2.  Involve fewer communication barriers
  3. Reduce overhead costs
  4. Slow down decision processes and communication

Answer (Detailed Solution Below)

Option 4 : Slow down decision processes and communication

Business and Technology Question 2 Detailed Solution

The correct option is option 4 

Additional information:

  • Tall structures often cause delay and inefficiencies in decision-making.
  • Multiple layers require approvals, causing delays.

Business and Technology Question 3:

Which of the following is an advantage of a flat organisational structure?

  1. Greater control by top management
  2. Longer communication channels
  3. Reduced layers of management
  4. Increased bureaucracy

Answer (Detailed Solution Below)

Option 3 : Reduced layers of management

Business and Technology Question 3 Detailed Solution

The correct option is option 3

Additional Information:

  • Flat structures simplify hierarchy, promoting faster communication.
  • Fewer levels = quicker decisions and better teamwork.

Business and Technology Question 4:

Which structure is most likely to suit a multinational company producing many products in different regions?

  1. Functional
  2. Divisional
  3. Matrix
  4.  Flat

Answer (Detailed Solution Below)

Option 2 : Divisional

Business and Technology Question 4 Detailed Solution

The correct option is option 2 
Additional Information:

  • Divisional structures are organised by product lines, markets, or regions.
  • Large firms benefit from separate control for each product or area.

Business and Technology Question 5:

In a functional organisational structure, departments are grouped by?

  1. Product lines
  2. Geographic areas
  3. Customer segments
  4. Job function (e.g. HR, Marketing)

Answer (Detailed Solution Below)

Option 4 : Job function (e.g. HR, Marketing)

Business and Technology Question 5 Detailed Solution

The correct option is option 4 

Additional Information:

  • Functional structures group employees by expertise or role.
  • Common in small to medium-sized businesses.

Top Business and Technology MCQ Objective Questions

Business and Technology Question 6:

Which of the following is a key characteristic of a partnership?

  1. Shares are sold to the public
  2. The business is run by a single person
  3. Owners have unlimited liability
  4. In a traditional partnership, partners share profits, control, and responsibility, including liability.

Answer (Detailed Solution Below)

Option 3 : Owners have unlimited liability

Business and Technology Question 6 Detailed Solution

The correct option is option 3 

Additional Information:

In a traditional partnership, partners share profits, control, and responsibility, including liability.

Business and Technology Question 7:

Which of the following statements is/are true?


(1) An informal organisation exists within every formal organisation

(2) Objectives of the informal organisation are broadly the same the formal organisation

(3) A strong, close-knit informal organisation is desirable within the formal organisation

  1. Statement (1) only

  2. Statements (1) and (3) only

  3. Statements (2) and (3) only

  4. Statement (3) only

Answer (Detailed Solution Below)

Option 1 :

Statement (1) only

Business and Technology Question 7 Detailed Solution

Correct Answer: A

Explanation:
 

Statement (2) is not true, because the informal organisation has its own agenda.

Statement (3) is not true, because a strong informal organisation with its own agenda can undermine the formal organisation: create damaging rumours, safety/quality shortcuts, distractions from task goals etc.

Business and Technology Question 8:

Which of the following is an advantage of a flat organisational structure?

  1. Greater control by top management
  2. Longer communication channels
  3. Reduced layers of management
  4. Increased bureaucracy

Answer (Detailed Solution Below)

Option 3 : Reduced layers of management

Business and Technology Question 8 Detailed Solution

The correct option is option 3

Additional Information:

  • Flat structures simplify hierarchy, promoting faster communication.
  • Fewer levels = quicker decisions and better teamwork.

Business and Technology Question 9:

Which of the following states the four cultural types identified by Handy?

  1. Person, role, task, power
  2. Power, uncertainty, task, bureaucratic
  3. Individualism, uncertainty, power, dynamism
  4. Power, role, task, resource

Answer (Detailed Solution Below)

Option 1 : Person, role, task, power

Business and Technology Question 9 Detailed Solution

Correct Answer: A

Explanation: 

Resource, individualism, uncertainty, dynamism and bureaucratic are not cultural types per Handy.

Business and Technology Question 10:

Machine learning is an example of which of the following?

  1. Artificial intelligence
  2. Automation
  3. Data analytics
  4. Blockchain

Answer (Detailed Solution Below)

Option 1 : Artificial intelligence

Business and Technology Question 10 Detailed Solution

Correct Answer: A

Explanation:

Machine learning uses networks, statistics and operational research to identify insights in data without being programmed what to conclude and is an example of artificial intelligence.

Business and Technology Question 11:

Which of the following statements are true?


(1) With a shared service centre services are likely to be less tailored

(2) The IT function is commonly provided using shared service approach

(3) A shared service centre is not part of the organisation

  1. Statement (1) and (3) only

  2. Statements (1) and (2) only

  3. Statements (2) and (3) only

Answer (Detailed Solution Below)

Option 2 :

Statements (1) and (2) only

Business and Technology Question 11 Detailed Solution

Correct Answer: B

Explanation:
 

The shared service centre is created within the organisation and is a part of it, although its relationship is similar to that of an external service provider.

Business and Technology Question 12:

An organisation would consider offshoring its manufacturing operation in order to lower costs and gain access to skilled production labour. 

Is this statement true or false? 

  1. True
  2. False

Answer (Detailed Solution Below)

Option 1 : True

Business and Technology Question 12 Detailed Solution

Correct answer: A.

Explanation:

This is a true statement. Offshoring is a viable alternative if an organisation is attempting to reduce costs and/or seeking skilled labour.

Business and Technology Question 13:

In order to discharge their duties ethically, finance directors must ensure that the information published by their organisations provides a complete and precise view of the
position of the business, without concealing negative aspects that may distort the reader’s perception of its position.
This duty describes which of the following ethical principles?
 

  1. Probity
  2.  Honesty
  3. Independence
  4. Objectivity 

Answer (Detailed Solution Below)

Option 4 : Objectivity 

Business and Technology Question 13 Detailed Solution

The correct option is option 4 

Additional Information:

A professional accountant acting in accordance with fundamental ethical principles is demonstrating objectivity when they give a complete and precise view, which by implication means that negative aspects should not be concealed or positive aspects accentuated. 

Business and Technology Question 14:

Penny has recently placed some of his earnings into a scheme which is designed to reduce the amount of tax he pays to the Government. The scheme is legal, but a Government minister has described it as ‘frustrating the intentions of Parliament’. The scheme is therefore an example of:

  1. Tax evasion 
  2. Tax mitigation
  3. Tax avoidance
  4. None of the above

Answer (Detailed Solution Below)

Option 3 : Tax avoidance

Business and Technology Question 14 Detailed Solution

The correct option is option 3 

Additional Information:

  •  Tax evasion is illegal. Tax avoidance is used to describe schemes that frustrate the intentions of Parliament, while tax mitigation describes schemes that do not frustrate the intentions of Parliament. 

Business and Technology Question 15:

BZ Ness Ltd is an organisation with a strongly traditional outlook. It is structured and managed according to classical principles: specialisation, the scalar chain of command, unity of command and direction.


Personnel tend to focus on their own distinct tasks, which are strictly defined and directed. Communication is vertical, rather than lateral. Discipline is much prized and enshrined in the rule book of the company.


From the scenario, what sort of culture does BZ Ness Ltd have, using Harrison’s classifications?

  1. Role culture

  2. Task culture

  3. Existential culture

  4. Power culture

Answer (Detailed Solution Below)

Option 1 :

Role culture

Business and Technology Question 15 Detailed Solution

Correct Answer: A

Explanation:
 

The role culture is a bureaucratic or mechanistic culture, as described in the scenario. Task culture is project-focused; existential culture is person-focused; and power culture is leader-focused.

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