BUSINESS STUDIES (054)

WORKSHEET - II
CLASS XII (2025-26)

Section A: Multiple Choice Questions (1 mark each)

1. Organisation structure establishes relationships between ….

a) organisation and environment. b) people, work and resources. c) organisation and

society. d) suppliers and customers.

2. EcoRide E-Bikes Pvt. Ltd., founded in 2016 in Pune, manufactures affordable electric
bicycles and scooters. Initially, the company targeted college students and eco-
conscious commuters in metro cities. With rising awareness of sustainability, EcoRide
grew rapidly, capturing 15% of the regional e-bike market by 2019. Which dimension
of Business Environment is highlighted in the above paragraph?

a) Economic Environment b) Social environment c) Legal environment d)

Technological Environment

3. Statement I: Span on management determines the structure of an organisation.

Statement II: Discretion of top management determines the structure of an
organisation. Choose the correct option from the following –

a) Statement I is true and Statement II is false. b) Statement II is true and Statement I

is false. c) Both the statements are true. d) Both the statements are false.

4. Which of the following is NOT the feature of “Science as a Management”?

a) Systematised body of knowledge b) Ethical code of conduct c) Principles based on

experimentation d) Not universally valid

5. Crakal Foods Ltd. is a company manufacturing packaged snacks. As the company

expanded, the management realized that it was becoming difficult to manage different
functions like production, marketing, and finance efficiently. To streamline
operations, the company decided to adopt a proper organisational structure. Suggest
the organisation structure to the company.

a) Functional Structure b) Divisional Structure c) Informal Structure d) Formal

Structure

6. This type of plan includes the entire gamut of activities as well as the organisation’s
policy and how it will contribute to the overall business plan. Identify the type of plan
depicted in the above statement.

a) Strategy b) Rules c) Programme d) Method

7. Which function of management is called the Generic Function of management?

a) Planning b) Organising c) staffing d) Directing
 8. “In order to be successful, an organisation must change itself and its goals according
to the needs of the environment.” Which characteristic of management is highlighted
in this statement?

a) Management is a group activity b) Management is a dynamic function c)

Management is an intangible force d) Management is all pervasive

9. Which of the following is NOT the aim of the Demonatisation?

a) To create cash-less economy b) To curb corruption c) To Counterfeit the use of

high denomination notes for illegal activities d) To increase the sale of debit and
credit cards

10. An unsatisfied need of an individual creates…….

a) Needs b) Tension c) Drive d) Satisfied needs

Section B: Short and Long Answer Questions

11. Cover pvt Ltd. is a textile company in Ludhiana. The company specializes in
producing cotton shirts and has over 300 employees. Recently, the management
noticed a decline in productivity, delay in deliveries, and an increase in defective
pieces. Customer complaints were rising, and morale among workers was low. To
overcome this situation, the production manager sets a target unit to be produced by
each worker, quality check of each batch, Workers were informed about the standards
and were encouraged to share suggestions for reducing wastage. (i) What function of
management is highlighted in the above paragraph. Identify. (ii) Identify and explain
the importance of the function of management as highlighted.

12. A) Explain three advantages of Functional Structure of organisation.

B) Explain three advantages of Divisional Structure of organisation.

13. A) Explain the following limitations of planning:- (i) Planning leads to rigidity (ii)
Planning may not work in a dynamic environment (iii) Planning reduces creativity

B) Explain the following types of plans:- (i) Objectives (ii) Strategy (iii) Policy

14. Launching its website in 1995 with the slogan “Earth’s biggest bookstore,” Amazon
promised customers one million book titles at low prices. It built a dominant position
in e-commerce by entering the market early, establishing a vast supply chain,
gathering customer data, and fostering customer loyalty through innovations like
Amazon Prime. What importance of the business environment is highlighted in the
above paragraph? Explain.
15. A) Explain how Management Principles are….. a) Universally applicable b) Formed
by practice and experimentation

B) Explain the following significance of management principles:- a) They Provide

managers with useful insights into reality b) They help in taking scientific decisions

16. Read the following statements:- (a) The effect of management is noticeable in an
organisation where targets are met according to plans, employees are happy and
satisfied, and there is orderliness instead of chaos. (b) Management unites the efforts
of different individuals in the organisation towards achieving these goals. Identify and
explain the characteristics of management highlighted in the above statements.

17. A) Explain the following elements of staffing:- a) Training b) Development

B) Explain any four benefits of training and development to the organisation.

18. A) Explain formal communication.

B) Explain Grapevine Network.

19. The finance department in Procol Ltd. set a standard of Rs. 100 Crores for buying 5
Machines for the purchase department. But due to likely increase in demand in future
the set standard of purchase budget is now increased to 200 crores to buy 10
machines. The finance manager with an effective control system helps him to review
and revise the standards in light of such changes. This also helps him, purchase and
production department to reduce the wastage of resources. Explain the importance of
controlling, highlighted in the above paragraph.

20. Read the following statements carefully:- (a) It refers to the downward transfer of
authority from a superior to a subordinate. (b) It refers to the delegation of authority
throughout all the levels of the organisation. Answer the following questions based on
above statements:-

(i) Identify concepts of organising are highlighted in both the statements.

(ii) Differentiate between the concepts of organising as identified above on the

following basis:- (1) Nature (2) Freedom of action (3) Purpose

21. A) “In small organisations, after the employees have undergone a period of training
the line managers have to undergo three more stages.” Explain the remaining three
stages in the staffing process.
 B) Explain the following methods of training:- (i) Apprenticeship training (ii)
Internship training (iii) Vestibule training

22. Explain the following terms related to Directing:- (i) Motive (ii) Motivation (iii)
Motivator.

Explain the motivation process.