Chapter Exam

Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) — Online MCQ Test

Q: What is the full form of MBO?

Answer: B. Management by Objectives — MBO stands for Management by Objectives. It is a management technique in which goals are jointly set by managers and employees.

Q: MBE stands for:

Answer: A. Management by Exception — MBE means Management by Exception. In this approach, only significant deviations from standards are brought to the attention of higher authorities.

Q: Which of the following is NOT a feature of MBO?

Answer: D. Ignoring performance evaluation — MBO includes clear objectives, participation, and evaluation of results. Ignoring performance evaluation is not a feature of MBO.

Q: If a sales department has a target of ₹50 lakh and actual sales are ₹49.8 lakh, the MBE manager would most likely:

Answer: B. Ignore it if the deviation is insignificant — Under MBE, only significant deviations need managerial attention. A very small difference may be treated as normal variation.

COMMERCE · CLASS 12th · Tamil Nadu State Board

Practice Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) with a free chapter-wise online MCQ test for Tamil Nadu State Board CLASS 12th COMMERCE. This chapter covers: This chapter details modern managerial techniques including Management by Objectives and Management by Exception. Students study definitions process steps key features operational.... AI-generated questions from basic to board-exam level, with instant results and explanations.

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Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE) — Important Questions & Answers (FAQ)

Frequently asked questions from Tamil Nadu State Board CLASS 12th COMMERCE — Chapter 3: Management By Objectives (MBO) and Management By Exception (MBE), with answers and explanations. These are sample questions; the exam has its own separate question set.

What is the full form of MBO?

A. Management by Operations
B. Management by Objectives ✓
C. Monitoring by Objectives
D. Management by Organization

Answer: B. Management by Objectives
MBO stands for Management by Objectives. It is a management technique in which goals are jointly set by managers and employees.

MBE stands for:

A. Management by Exception ✓
B. Management by Examination
C. Management by Expansion
D. Management by Experience

Answer: A. Management by Exception
MBE means Management by Exception. In this approach, only significant deviations from standards are brought to the attention of higher authorities.

Which of the following is NOT a feature of MBO?

A. Clear objectives
B. Participation
C. Result-oriented approach
D. Ignoring performance evaluation ✓

Answer: D. Ignoring performance evaluation
MBO includes clear objectives, participation, and evaluation of results. Ignoring performance evaluation is not a feature of MBO.

If a sales department has a target of ₹50 lakh and actual sales are ₹49.8 lakh, the MBE manager would most likely:

A. Intervene immediately because all deviations are exceptions
B. Ignore it if the deviation is insignificant ✓
C. Cancel the target for the next period
D. Promote the department automatically

Answer: B. Ignore it if the deviation is insignificant
Under MBE, only significant deviations need managerial attention. A very small difference may be treated as normal variation.

Which of the following is NOT a basic step in the MBO process?

A. Defining organizational objectives
B. Setting subordinate objectives
C. Continuous review and feedback
D. Appointing an external auditor to approve all objectives ✓

Answer: D. Appointing an external auditor to approve all objectives
MBO involves organizational objectives, subordinate objectives, action plans, and review. Appointing an external auditor to approve all objectives is not part of the MBO process.

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