Class 12 Business Studies Chapter 5 Worksheet 2 (MCQs and Case Studies): Organising

Class 12 Business Studies Chapter 5 Worksheet (Organising)

Finding a comprehensive worksheet for Class 12 BST Chapter 5 (Organising) can be a major task. You have come to the right place to learn how organising helps establish clear relationships, allocate resources efficiently, and lay down the framework for effective management.

With this single worksheet, you can practice multiple-choice questions (MCQs), case studies, and conceptual short-answer problems.

The topics that a Class 12 BST student can cover include departmentalisation, functional versus divisional structures, delegation, and decentralisation.

Before you proceed further, below are the quick details:

• Class: 12
• Subject: Business Studies
• Chapter Number: 5
• Chapter Name: Organising
• Worksheet Number: 2
• Worksheet Type: MCQs and Case Studies

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Chapter Resources:

Learn the chapter: Class 12 Chapter 5 (Organising) Notes

Practice the chapter:
Worksheet 1: Case Studies
Worksheet 2: MCQs and Case Studies
Worksheet 3: (Coming Soon)

Table of Contents

Questions

Answers

The worksheet begins from here.

Questions

Q1. ___________ involves the grouping of the required tasks into manageable departments or work units and the establishment of authority and reporting relationships within the organisational hierarchy.

1. Decentralisation
2. Delegation
3. Organisational structure
4. Centralisation

Q2. Leisure Ltd. is a multi-product company in Mumbai. It deals in products like stationery, books, musical instruments, laptops, and mobile phones. The company has a functional structure with separate heads for production, marketing, and finance. To facilitate specialisation, the General Manager of the company decided to group books, musical instruments, stationery, etc. under ‘Eduproducts’ and laptops and mobile phones under ‘Electroproducts’. Identify the step in the organising function of management being described above.

1. Identification and division of work
2. Assignment of duties
3. Departmentalisation
4. Establishing reporting relationships

Q3. Organising provides a clear description of jobs and related duties. This helps to avoid confusion and duplication. The point of importance of organising described above is:

1. Adaptation to change
2. Effective administration
3. Development of personnel
4. Expansion and growth

Q4. The process of organising allows a business enterprise to accommodate changes in the business environment. It allows the organisation structure to be suitably modified to pave the way for a smooth transition. The point of importance of organising function of management highlighted in the above lines is:

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

Q5. 'The right of an individual to command his subordinates and to take action within the scope of his position' is called:

1. Decentralisation
2. Authority
3. Responsibility
4. Accountability

Q6.
Statement I: Organising is the process of defining and grouping the activities of the enterprise and establishing authority relationships among them.
Statement II: The process of organising involves a series of steps that need to be taken in order to achieve the desired goals.
In the light of the above statements, choose the correct alternative from the options given below:

1. Both Statement I and Statement II are true.
2. Both Statement I and Statement II are false.
3. Statement I is true and Statement II is false.
4. Statement I is false and Statement II is true.

Q7. 'ABC Ltd.', a large multinational company, had approximately 1000 employees in each of its departments. The company had five departments. In this organisation, leave applications of the employees had to be approved by the departmental heads. This approval was delayed due to a large number of leave applications in each department. This led to a lot of dissatisfaction amongst the employees. To resolve this problem, the Chief Executive Officer of the organisation called a meeting of all departmental heads. It was decided to assign the approval of leave applications up to 10 days to the managers at all levels. It was also decided that it would be assigned till the lowest level throughout the organisation. Since the decision-making authority was shared with lower levels and placed nearest to the point of action, they could approve or deny leave applications without requiring higher-level approval. After the policy change, employees at all levels noticed an improvement in the sanctioning of leave applications.
The concept of management which led to an improvement in the speed and flexibility of leave approval is:

1. Organising
2. Delegation
3. Decentralisation
4. Authority

Q8. ______________ gives shape to the organisation structure.

1. Extent of delegation
2. Span of Management
3. Number of employees
4. Planning

Q9. Diligent Developers, a website design company in Bangalore, is a startup initiative of Mr. Maniraj which aims at achieving a profit margin of 10% in its first year. Mr. Maniraj appointed Mr. Advait as the Digital Marketing Head, Mr. Kiyansh as the head of Backend department, and Mr. Nirved headed the Graphics Designing Department. Since each head was specialised in specific skills, it resulted in increased efficiency and better coordination. However, problems arose when Mr. Advait started considering group objectives superior to organisational objectives and stopped exchanging information with Mr. Kiyansh and Mr. Nirved. The company had to bear the brunt of lack of coordination and was unable to achieve its objectives.

1. Identify and state the organisational structure adopted by the company.
2. State two benefits and two limitations of the identified structure highlighted in the above case.

Q10. “Put simply, decentralisation refers to delegation of authority throughout all the levels of the organisation.” In the light of the above statement, give the meaning of and difference between delegation of authority and decentralisation.

Q11. “Delegation of authority, undoubtedly empowers an employee to act for his superior, but the superior would still be accountable for the outcome.” Explain the elements of delegation of authority discussed above.

Answers (Coming Soon)

The End

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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

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See More:

Click here to access more Business Studies Class 12 educational content (worksheets, case studies, MCQs, sample papers, and more).