CBSE Class 12th Business Studies Question Paper - TS5 (5 Question Papers)

Business Studies - Class 12th (CBSE) - 5 Question Papers Included for Chapter 5: Organising

As a Class 12th student, your daily routine, as suggested by your Business Studies teachers, is to practice as many important questions, MCQs, case study questions, sample papers, and answers as possible for Business Studies Chapter 5: Organising.

However, the truth is that finding the best Class 12th Business Studies (Chapter 5: Organising) question papers is a difficult job.

The good news is that our expert CBSE Business Studies educators have prepared a series of test questions to strengthen your concepts of organising, delegation, decentralisation, and organisational structure for better CBSE board exam preparation and scoring success.

Before you proceed to the test, below are the quick details:

• Class: XII
• Subject: Business Studies
• Chapter Name: Organising

Below are the links to the tests:

• Test 1 | Answers for Test 1
• Test 2 (Coming Soon)
• Test 3 (Coming Soon)
• Test 4 (Coming Soon)
• Test 5 (Coming Soon)

Test 1

• Maximum Time: 1 hour
• MM: 30

General Instructions:

1. All questions are compulsory.
2. Q.1 to Q.10 are 1-mark questions.
3. Q.11 to Q.12 are 3-mark questions.
4. Q.13 to Q.14 are 4-mark questions.
5. Q.15 is a 6-mark question.

Objective Type Questions

Question 1. The ‘Occasion Planners’ is an event management company. They mostly organise marriages, as they believe that marriage is a relationship that unites two souls. The different functions of marriages are organised by people who are specialised in their respective jobs. They always appoint specialised people in their company, as it leads to a systematic allocation of jobs amongst the workforce, reduces the workload, and enhances productivity.

Identify the importance of organising highlighted in the above text.

1. Benefits of specialisation
2. Optimum utilisation of resources
3. Adaptation to change
4. None of these

Question 2. Match the options in Column I with their correct options given in Column II.

Column I	Column II
(1) Authority	(a) Answerability for the outcome of the assigned task.
(2) Responsibility	(b) Downward transfer of authority from a superior to a subordinate.
(3) Accountability	(c) Obligation to perform an assigned task.
(4) Delegation	(d) Right to command.

1. 1-(a), 2-(b), 3-(c), 4-(d)
2. 1-(b), 2-(c), 3-(d), 4-(a)
3. 1-(d), 2-(c), 3-(a), 4-(b)
4. 1-(d), 2-(a), 3-(b), 4-(c)

Question 3. Which of the following is an example of informal organisation?

1. A member of a sports club formed by a company.
2. The Production Manager is responsible for increasing production.
3. Both (A) and (B)
4. None of these

Question 4.

Identify the concept of organisation illustrated in the picture above.

1. Delegation
2. Centralisation and Decentralisation
3. Functional Structure
4. None of these

Question 5. In the following question, a statement of Assertion (A) is followed by a statement of Reason (R). Mark the correct choice:

• Assertion (A): Delegation helps them to realise their full potential.
• Reason (R): Delegation develops in the subordinate the ability to deal effectively with challenges.

1. Both Assertion (A) and Reason (R) are true, and Reason (R) is the correct explanation of Assertion (A).
2. Both Assertion (A) and Reason (R) are true, but Reason (R) is not the correct explanation of Assertion (A).
3. Assertion (A) is true, but Reason (R) is false.
4. Assertion (A) is false, but Reason (R) is true.

Question 6. For the following two statements, choose the correct option:

• Statement I: Delegation helps a manager extend his areas of operations.
• Statement II: Authority relationships help to maintain order in the organisation by giving managers the right to exact obedience and give directions to the workforce under them.

Choose the correct option from the options given below:

1. Statement I is correct, and Statement II is wrong.
2. Statement II is correct, and Statement I is wrong.
3. Both statements are correct.
4. Both statements are wrong.

Read the text below and answer Q.7–10 on the basis of the same.

BBS International School is looking forward to celebrating its annual sports day at the school in the coming month. It is an occasion when pupils, teachers, and parents come together for a day of competitive sports. The Principal and the sports teachers have started planning different races, dances, and events and have also started assigning duties and responsibilities to various staff members and students accordingly. Different departments and committees were formed to look into and organise different activities for the sports day, such as welcoming parents, handing out refreshments, overseeing races, blowing whistles, and awarding medals and prizes, etc.

All the decision-making authority is retained by the Principal. The responsibility for refreshments was given to Mr. Gopal, who was an art teacher at the school. Mr. Gopal calculated the number of students, staff, and parents and came to the conclusion that a minimum audience of 1,400 would gather on the sports day. Accordingly, he decided to order 1,500 snack boxes. He gave the order to the local bakery shop and made payment for 700 boxes in advance. On the sports day, only 500 snack boxes were delivered.

The distribution and counting of medals were assigned to Ms. Ruchi. However, Ms. Ruchi was ignoring her responsibilities. Therefore, the Principal decided to appoint Ms. Salma to work with Ms. Ruchi. Ruchi did not like working with Ms. Salma. Most of the time, the Principal noticed tension developing between the two. However, she did not want to get involved in their personal issues as long as the work was completed effectively and efficiently by them.

One day, the tension between them reached its peak, and Ms. Ruchi complained to the Principal, stating that her duties were being largely taken over by Ms. Salma. The Principal issued an order stating the clear allocation of jobs and related duties between the two. She further clarified the working relationship between them by specifying who would take responsibility for which event, as the school had planned many events for the sports day. This helped in reducing the workload, enhancing productivity, and removing ambiguity.

Question 7. Which of the following importance of organising is highlighted in the lines mentioned below?

“She further clarified the working relationship between them by specifying who would take responsibility for which event, as the school had planned many events for the sports day.”

1. Optimum utilisation of resources
2. Adaptation to change
3. Effective administration
4. Clarity in working relationships

Question 8. Which of the following concepts of organisation is described in the lines mentioned below?

“All the decision-making authority is retained by the Principal.”

1. Centralisation
2. Decentralisation
3. Informal organisation
4. None of these

Question 9. Which type of organisation is being followed by BBS International School?

1. Informal
2. Formal
3. Both (A) and (B)
4. None of these

Question 10. Which of the following elements of delegation is described in the lines mentioned below with respect to Mr. Gopal?

“He decided to order 1,500 snack boxes. He gave the order to the local bakery shop and made payment for 700 boxes in advance. On the sports day, only 500 snack boxes were delivered.”

1. Authority and Responsibility
2. Accountability and Responsibility
3. Authority and Accountability
4. None of these

Question 11. Home Wood is a company that makes home furniture. The company chose to diversify its operations to improve its growth potential and increase its market share. As the project was important, many alternatives were generated for the purpose and were thoroughly discussed amongst the members of the organisation. After evaluating the various alternatives, the Managing Director of the company decided that they should add office interiors and furnishings as a new line of business activity.

Identify and explain the framework that the diversified organisation should adopt to enable it to cope with the emerging complexity.

Question 12. Sakshi, an environmentalist, decided to start a campaign to create awareness among people about developing clean surroundings in their area. Her goal is to protect and preserve the environment. She promotes interaction with nature and the safe use of natural resources through research and lobbying.

She formed a team of fifteen members to list the different ways of cleaning the surroundings. One member suggested taking the help of local residents, while another suggested that they might involve school-going children in their venture. One more suggestion was to take the help of unemployed youth.

After evaluating the different alternatives, it was decided to take the help of local residents. To achieve the desired goal, various activities were identified, such as purchasing necessary items like dustbins, garbage bags, brooms, etc., collecting garbage, and disposing of garbage. After identifying the different activities, the work was allocated to different members.

Identify and explain the concept of management involved in the above situation.

Question 13. Soapie Ltd. is a handmade domestic soap company. The company makes all kinds of soaps using natural ingredients. The company has grown in size. It was a market leader, but with changes in the business environment and the entry of MNCs, its market share is declining.

To cope with the situation, the CEO starts delegating some of his authority to the General Manager, who also feels overburdened and, with the approval of the CEO, disperses some of his authority to various levels throughout the organisation.

Identify the concept of management discussed above.

Question 14. An organisation is working by clubbing similar and related jobs under different departments. The HR Department is not in direct touch with the Marketing Department, and this has created problems. The HR Head feels that only he knows about the HR Department, and the same is the case with the Marketing Department. However, the truth is that both of them have limited and specific skills.

1. Identify and explain the type of organisational structure this organisation has.
2. Also, give any three disadvantages of this type of organisational structure.

Question 15. ‘Pharma Plus’ is a company that is highly focused on delivering quality medicines to patients in need through excellence in innovation, development, manufacturing, and commercialisation. The company offers high-quality, cost-effective products with the highest level of customer service.

Recently, the company decided to make a major shift in its policy by handing over decision-making authority to the lowest level of employees. For this, the company undertook thorough planning. Within a few months, the positive results of this major policy decision were recognisable. The employees experienced development in their ability to take the first step and manage things on their own. Some major newspapers also covered this development. The company’s production increased.

The company’s top management could now focus on new areas of innovation as the employees became more reliable. One day, the company’s manufacturing branch in one of the areas of Delhi could not fulfil even half of its production target, and the Operations Manager was held answerable for the assigned target.

He was called into the office. When he was questioned, it was found that his right to command the workers was insufficient and should have been greater to produce results. The management decided to listen to him, and he was given more power.

When he went to the shop floor, he told the workers that the standard of behaviour of the workers should come from the official rules and procedures.

1. Identify the concept of management that has been mentioned in the above case.
2. Explain the two advantages of the concept that have been highlighted in the above case.
3. Identify and explain the two elements of delegation that have been highlighted in the above case.

Answers

1. Option (A) is correct.

Explanation: Organising leads to a systematic allocation of jobs amongst the workforce. This reduces the workload as well as enhances productivity because of the specific workers performing a specific job on a regular basis. Repetitive performance of a particular task allows a worker to gain experience in that area and leads to specialisation.

2. Option (C) is correct.

3. Option (A) is correct.

Explanation: Informal organisation emerges from within the formal organisation when people interact beyond their officially defined roles. When people have frequent contacts, they cannot be forced into a rigid formal structure. Rather, based on their interaction and friendship, they tend to form groups which show conformity in terms of interest. Examples of such groups formed with common interest may be those who take part in cricket matches on Sundays, meet in the cafeteria for coffee, are interested in dramatics, etc.

4. Option (B) is correct.

Explanation: Those organisations in which decision-making authority lies with the top management are termed as centralised organisations, whereas those in which such authority is shared with lower levels are decentralised organisations. An organisation is centralised when decision-making authority is retained by higher management levels, whereas it is decentralised when such authority is delegated.

5. Option (A) is correct.

Explanation: Delegation allows subordinates to take responsibility and make decisions, which helps them realise their full potential. The reason is correct because delegation builds their ability to handle challenges and perform tasks effectively, thereby explaining the assertion.

6. Option (C) is correct.

Explanation:

• Statement I: True – Delegation helps managers expand their area of operations by sharing work.
• Statement II: True – Authority relationships maintain order and discipline by defining who gives orders and who obeys.

7. Option (D) is correct.

Explanation: The establishment of working relationships clarifies lines of communication and specifies who is to report to whom. This removes ambiguity in the transfer of information and instructions. It helps in creating a hierarchical order, thereby enabling the fixation of responsibility and specification of the extent of authority to be exercised by an individual.

8. Option (C) is correct.

Explanation: Rohit says Anika is answerable for quality and timely submission. This reflects accountability—being answerable for performance.

9. Option (A) is correct.

Explanation: Statement 2 is not a part of formal communication, and Statement 5 is a feature of informal organisation; hence, both are incorrect. The correct statements are 1, 3 and 4.

10. Option (B) is correct.

Explanation: The company has one product line and aims at specialisation in production, finance, marketing and HR. The most suitable structure will be the Functional Structure.

11. A divisional structure should be adopted by the diversified organisation to enable it to cope with the emerging complexity. In a divisional structure, the organisation structure comprises separate business units or divisions. Each unit has a divisional manager responsible for performance and who has authority over the unit. It facilitates expansion and growth, as new divisions can be added without interrupting the existing operations by merely adding another divisional head and staff for the new product line.

12. The concept of management involved in the above situation is organising. Organising essentially implies a process which coordinates human efforts, assembles resources and integrates both into a unified whole to be utilised for achieving specified objectives.

Organising can be defined as a process that initiates the implementation of plans by clarifying jobs and working relationships and effectively deploying resources for the attainment of identified and desired results or goals. In organising, the work is divided into manageable activities so that duplication can be avoided and the burden of work can be shared among the employees.

13. The concept of management discussed above is decentralisation. Decentralisation explains the manner in which decision-making responsibilities are divided among hierarchical levels. Decentralisation refers to the delegation of authority throughout all the levels of the organisation.

Decision-making authority is shared with lower levels and is consequently placed nearest to the points of action. In other words, decision-making authority is pushed down the chain of command. When decisions taken by the lower levels are numerous as well as important, an organisation can be regarded as greatly decentralised.

Decentralisation awards greater autonomy to the lower levels of management as well as divisional or departmental heads. This allows them to function in a manner best suited to their departments and fosters a sense of competition amongst the departments.

14. (a) The type of organisation structure which is present is the functional structure. Grouping jobs of a similar nature under functions and organising these major functions as separate departments creates a functional structure.

All departments report to a coordinating head. For example, in a manufacturing concern, the division of work into key functions will include production, purchase, marketing, accounts and personnel. These departments may be further divided into sections.

(b) Disadvantages of the functional organisation structure:

(i) A functional structure places less emphasis on overall enterprise objectives than on the objectives pursued by a functional head. Such practices may lead to functional empires wherein the importance of a particular function may be overemphasised.

(ii) It may lead to problems in coordination, as information has to be exchanged across functionally differentiated departments.

(iii) A conflict of interest may arise when the interests of two or more departments are not compatible.

(iv) It may lead to inflexibility, as people with the same skills and knowledge base may develop a narrow perspective and thus have difficulty appreciating any other point of view. Functional heads do not get training for top management positions because they are unable to gather experience in diverse areas.

(Any three)

15. (i) The concept of management highlighted in the above case is ‘Decentralisation’.

(ii) The two advantages highlighted of this concept are:

(a) It helps in the development of initiative among subordinates:

Decentralisation helps to promote self-reliance and confidence amongst the subordinates. This is because when lower managerial levels are given the freedom to take their own decisions, they learn to depend on their own judgement. It also keeps them in a state wherein they are constantly challenged and have to develop solutions for the various problems they encounter.

(b) It helps in developing managerial talent for the future:

Formal training plays an important part in equipping subordinates with skills that help them rise in the organisation, but equally important is the experience gained by handling assignments independently. Decentralisation gives them a chance to prove their abilities and creates a reservoir of qualified manpower who can be considered to fill more challenging positions through promotions. It also helps to identify those who may not be successful in assuming greater responsibility.

(iii) The two elements of delegation highlighted in the above case are:

(a) Accountability:

Accountability implies being answerable for the final outcome. Once authority has been delegated and responsibility accepted, one cannot deny accountability. It cannot be delegated and flows upwards, i.e., a subordinate will be accountable to a superior for the satisfactory performance of work.

It indicates that the manager has to ensure the proper discharge of duties by his subordinates. It is generally enforced through regular feedback on the extent of work accomplished. The subordinate will be expected to explain the consequences of his actions or omissions.

(b) Authority:

Authority refers to the right of an individual to command his subordinates and to take action within the scope of his position. The concept of authority arises from the established scalar chain, which links the various job positions and levels of an organisation.

Authority also refers to the right to take decisions inherent in a managerial position, to tell people what to do and expect them to do it.

The End

👉

A List of Notes:

Chapter 1  |  Chapter 2  |  Chapter 3  |  Chapter 4  |  Chapter 5  |  Chapter 6  |  Chapter 7  |  Chapter 8  |  Chapter 9  |  Chapter 10  |  Chapter 11  |  Chapter 12